Transcript Highlights:

• before to get your family member back, you now have to pay for the facility and veterinary fees that
• Okay, the fee for licensing a dog is so that we can have a record of those that have had their shots
• licensing a dog is so that okay the fee licensing a dog is so that we<03:12:39.760><c> can</c><03:12
• This is strictly seizure for failure to pay the registration fee. Thank you very much.
• But I do think, as we've heard from others, that that fee and that seizure is kind of what's going to

Summary: The committee heard testimony on HB 153, which would require two or more law enforcement officers in each county to receive animal cruelty training through the police standards system. Representative Barbara Coma, the sponsor, said the bill was prompted by problems in animal cruelty cases, especially in rural areas without animal control officers, and she described it as a limited training measure. She said an amendment was forthcoming that would add an eight-hour approved course and a two-hour refresher every three years, and she emphasized that the trained officers would serve as resources rather than being required to take action themselves. Members asked about cost, due process, overlap with animal control officers, how trained officers would be identified and notified, and whether veterinarians could fill the role. Coma responded that the bill would not be a heavy financial lift, would not interfere with animal control officers, would apply to livestock as well as companion animals, and would still require law enforcement involvement because veterinarians cannot lawfully remove animals from property. She also said the training could improve due process by helping officers better understand when animal removal is appropriate and how cases should proceed. Sheriff William Wright, speaking for the New Hampshire Sheriffs Association, testified in opposition. He said training itself was acceptable, but the bill went beyond training by creating an obligation for sheriffs and state police to respond to and potentially investigate animal cruelty cases, which he argued would be ambiguous, unfunded, and burdensome for staffing and resources. He said some sheriff’s offices do not have investigative deputies and that the bill could create liability and uncertainty about who would lead investigations. In response to questions, he said the association would likely have no objection if the bill were limited to training, but it opposed the assistance/investigation mandate as written.

Transcript Highlights:

• </c> there's a worker impact fee required. there's a worker impact fee required.
• </c><00:16:04.160><c> There's</c><00:16:04.360><c> some</c> uh requirements and fees.
• There's some uh requirements and fees.
• </c><00:19:53.080><c> So,</c> licensing fee and things like that.
• So, licensing fee and things like that.

Committee: Senate Transportation

Transcript Highlights:

• requirements required by either Ecology or Fish and Wildlife exceeds the cost of a typical mitigation fee
• Senate Bill 6318 caps shellfish licensing, biotoxin, and export fees at designated levels.
• and the fee maximums established in this bill at approximately $4.7 million over the four-year outlook
• Is there a discussion on this shellfish fee bill? We held a work session, had a lot of input.
• that will damage their ability to conduct business in the state. ...growers not have fees that will

Summary: The Senate Agriculture and Natural Resources Committee held an executive session on a series of bills and a joint memorial. Staff summarized measures on agricultural marketing (SB 5816, adding juice grapes), Board of Natural Resources membership and tribal representation (SB 5838), irrigation district hiring exemptions (SB 5930), ungulate population management and predator mitigation (SB 5960), a green fertilizer incentive program (SB 5971), mitigation grants for landowners (SB 6075), tribal participation in the Conservation Futures Program (SB 6097), agricultural impact statements and related protections for farmland (SB 6104), timber sale process modernization (SB 6216), increased wildlife penalty assessments for covered species trade (SB 6233), shellfish licensing and biotoxin fee caps (SB 6318), and a federal wildfire response memorial (SJM 8015). Several bills had proposed substitutes or amendments, including competing changes to SB 5838 and SB 5960, but some items were ultimately set aside with no action. The committee adopted a substitute for SB 5971 and advanced it to Ways and Means. It also adopted a substitute for SB 6097 and sent it to Rules. SB 5816, SB 6216, SB 6233, SB 6318, and SJM 8015 all received due pass recommendations, with SB 5971 and SB 6318 referred onward to Ways and Means. SB 5838 was debated at length over tribal representation on the Board of Natural Resources; amendments to require forest-management expertise or alternate east/west representation were rejected, and the proposed substitute was approved and passed. SB 6233 drew comments about possible unintended consequences, but the bill passed. The committee took no action on SB 5930, SB 5960, SB 6075, and SB 6104. The chair later confirmed that every bill on the executive session agenda had either been moved forward or dropped from the agenda. The meeting ended with the chair thanking staff and members for getting through the last committee meeting before the policy cutoff, and the committee adjourned subject to signature of the boards.

Transcript Highlights:

• budget is projected to save $7.5 million annually moving Medicaid pharmacy benefit from managed care to fee
• bill assistance and couples that with home efficiency to lower bills long-term and reduce carbon emissions
• agencies, ports, and jurisdictions who are all committed to seeing the state's mandated climate emission
• To seeing the state's mandated climate emission reductions made possible.

Bills: HB2289

Committee: House Appropriations

Keywords: appropriations, budget, fiscal matters, state spending, general fund, supplemental budget, biennial budget, substitute bill, public defense, civil legal aid, courts, judicial branch, homelessness, supportive housing, affordable housing, behavioral health, juvenile rehabilitation, youth services, child welfare, foster care

Transcript Highlights:

• budget is projected to save $7.5 million annually moving Medicaid pharmacy benefit from managed care to fee
• bill assistance and couples that with home efficiency to lower bills long-term and reduce carbon emissions
• agencies, ports, and jurisdictions who are all committed to seeing the state's mandated climate emission
• And we do not believe to seeing the state's mandated climate emission reductions made possible.

Summary: The House Appropriations Committee continued its public hearing on House Bill 2289, the fiscal biennial supplemental operating budget appropriations bill. The chair and vice chair explained the hearing process, limited testimony to one minute per person, and then heard extensive public comment from a wide range of advocates, local officials, service providers, and residents. No committee vote was taken during the hearing. Much of the testimony focused on opposition to proposed budget shifts involving Climate Commitment Act revenue, especially the proposed diversion of $569 million to other uses, including the Working Families Tax Credit. Environmental, public health, and local government witnesses argued those funds should remain dedicated to climate pollution reduction, wildfire resilience, clean transportation, natural climate solutions, and affordability programs. Several speakers also urged full funding for wildfire response and forest health, including the HB 1168 commitment, and opposed transfers from the Public Works Assistance Account. Other major topics included Medicaid and long-term care rates, with nursing home and assisted living providers warning that freezing or delaying rate rebasing would worsen staffing shortages and threaten access to care. Public health and health care advocates opposed cuts to foundational public health services, Apple Health expansion, and pharmacy benefit changes, while oral health advocates asked to preserve Medicaid dental funding and support Dentist Link. Testimony also supported or opposed funding for K-12 programs such as special education, the Ninth Grade Success Initiative, and homeless student stability; early learning and child care subsidies; disability services; public defense; housing and homelessness prevention; food assistance; higher education; and immigrant legal services. The committee concluded the hearing and adjourned after public testimony ended.

Transcript Highlights:

• And we have something called a load development fee.
• Developers pay, in our community, impact fees. So they contribute to housing projects.
• And the scheme that's out there currently is a fixed fee that they pay into the pot.
• And so we may look at that fee in the future, but I think you're making a great point.
• Well, I mean, I think, well, I'm not sure exactly what goes into their fees are.

Summary: The joint informational hearing of the Assembly Committees on Utilities and Energy and Privacy and Consumer Protection focused on the energy impacts of AI and the rapid growth of data centers in California. Chairs and members emphasized that the state wants to support innovation and data center development, but only under terms that protect ratepayers, preserve reliability, and avoid stranded grid costs. Testimony from Lawrence Livermore National Laboratory, the California Energy Commission, the CPUC, CAISO, PG&E, Silicon Valley Power, and the Data Center Coalition described the scale of projected load growth, the uncertainty in forecasting, and the need for coordinated planning across agencies. Dr. Nate Gleason of Lawrence Livermore said data centers are a major and fast-growing share of electricity demand, with planning challenges driven by short construction timelines for data centers versus long lead times for transmission and generation. He urged stochastic planning, co-optimization of generation, storage, and transmission, and greater use of flexible load and demand response. CEC Director Alicia Gutierrez described the CEC’s bottom-up forecasting approach, based on utility energization requests and load profiles, and said California has over 23,000 megawatts of data center capacity requests in the CAISO footprint. CPUC Deputy Executive Director Luan Tesfai outlined recent actions on energization timelines, flexible service connections, PG&E’s Rule 30 tariff, and the commission’s resource planning and transmission permitting work. CAISO’s Neil Miller stressed that large loads affect transmission planning, interconnection, and reliability standards, and said the agency is preparing additional stakeholder work on technical issues. Utility and industry witnesses said California is already seeing substantial data center interest and is building out infrastructure accordingly. PG&E’s Mike Medeiros said the utility has more than 10 gigawatts of data center interest in its territory, has shifted to cluster studies, and is using flexible interconnection tools such as FlexConnect to speed service while protecting reliability. Silicon Valley Power’s Nico Prokos said data centers account for about 55% of its power use and that the city is investing heavily in transmission and local system upgrades to support projected load growth. He also warned that AI loads may be more variable than traditional cloud loads and that backup generation and air quality constraints complicate curtailment strategies. The Data Center Coalition’s Karabonder argued that data centers are also driving efficiency gains and support critical digital services, while urging better forecasting methods, more transparency, and regular backcasting. Members asked about statutory authority, data availability, flexible load, and whether current forecasts are sufficient for long-lead infrastructure planning. Witnesses said California already has authority to pursue flexible service and rate design, and that the CEC and CPUC have access to utility data, though out-year demand remains highly uncertain. CPUC representatives noted an advanced rate design rulemaking and said the commission is opening additional work on ratepayer impacts. No votes were taken during the informational hearing, and the discussion ended with continued questions about how California should structure planning, pricing, and reliability rules as AI-related load grows.

Transcript Highlights:

• Amendment 3 inserts language to provide for effectiveness of application of fees to the title.
• Amendment 7 inserts present law and adds that the application fee provided for in paragraph 1 of this
• So the electronic print-on-demand system—it was always the intent that before that fee increase jumps
• And at that point in time, the fee increases. So that just provides some clarity there.
• And at that point in time, the fee increases. So that just provides some clarity there.

Bills: HR1 , HB96 , HB345 , HB360 , HB401 , HB592 , HB703 , HB723 , HB729 , HB776 , HB838 , HB844 , HB882 , HB885 , HB888 , HB966

Committee: House Transportation, Highways & Public Works

Summary: The committee first heard House Resolution 1, which approves the Coastal Protection and Restoration Authority’s annual State Integrated Coastal Protection Plan for fiscal years 2026-2027. CPRA officials described the plan as about $1.54 billion, with roughly 93% directed to project implementation and construction, funded through state mineral revenue, GOMESA, BP spill dollars, surplus funds, and newly available coastal sediment funds. They outlined projects across the coast, including marsh creation, barrier island restoration, levees, pump stations, freshwater diversions, and nonstructural flood protection, and said the plan had been unanimously approved by the CPRA board after public hearings. Members asked about specific coastal and basin issues, including the Sabine River, the Chafalaya Basin, Bayou Sorrel, and tidal flooding in interior parishes. HR 1 was reported favorably without objection. The committee then considered House Bill 838, as substituted, dealing with vehicle inspection stickers and related OMV modernization. The substitute would repeal inspection requirements for assembled vehicles, keep periodic inspections for commercial and student transportation vehicles, address federal inspection requirements, allow out-of-state inspections in some cases, and create a Louisiana Vehicle Identification Program using QR codes. Members focused on privacy and enforcement questions, and OMV and state IT officials explained that the QR code would contain only the VIN and that the system would support police ticketing applications. The bill also ties implementation to the OMV modernization effort and takes effect January 1, 2027. HB 838 was reported by substitute. The committee next advanced House Bill 888 on temporary dealer plates, adopting a set of amendments that added security features, clarified timing for the new electronic issuance system, and adjusted rules for temporary tags and dealer plates. Testimony from the auto dealers’ association said the bill was intended to reduce fraud, resolve confusion over five-day versus 60-day tags, and extend certain temporary loaner tag periods from five to ten days. HB 888 was reported with amendments. The committee also heard House Bill 885 on electronic titles and lien recordation, which would allow electronic signatures, electronic lien notifications, and electronic titling/recordation for participating commercial entities, with civil immunity for good-faith actions and a severability clause. Members raised questions about fraud prevention and consumer participation, and supporters said the bill would modernize the process and align Louisiana with current industry practice. HB 885 was reported by substitute. Finally, the committee advanced House Bill 723, which allows certain two- and three-wheeled motorcycles and mopeds to proceed through a red light under specified circumstances when sensors fail to detect them. The sponsor said the measure is a safety fix for riders stuck at malfunctioning signals, and the bill was amended to clarify the vehicle types covered. The committee also considered House Bill 882 on outdoor advertising, which would increase billboard spacing on state highways from 150 feet to 1,000 feet and allow certain signs damaged by an act of God after January 1, 2010, to be rebuilt. Supporters said the bill would reduce billboard density and improve aesthetics, while opponents argued it would harm smaller operators and impose a one-size-fits-all rule. After testimony, HB 882 was amended and reported.

Transcript Highlights:

• And staking that, you know, through a custodian, and the emissions can get converted into Bitcoin.
• I mean, I... and staking that, you know, through a custodian and the emissions can get converted into
• And you mentioned that the fee for us is very, very low. Say that number again, please. Certainly.
• And what would you think the average fee would be if we had an external vendor? Great question.
• fee.

Bills: HB2056 , HB2202 , HB2207 , HB2224 , HB2303 , HB2344 , HB2532 , HB2759 , HB2798

Committees: House Appropriations , House House Appropriations Committee of Reference

Keywords: brackish water, groundwater, desalination, water resources, feasibility study, environmental impact, dementia care, telementoring, healthcare education, rural communities, grant funding, braille, disability access, education funding, state corrections, inclusion, produce incentive, agriculture, economic support, funding

Transcript Highlights:

• For a little bit of background, under current law fees collected by the Secretary of State under the
• The Secretary of State's office has indicated that currently fee amounts over $50 are being deposited
• It also modifies the fee that ELUFs must pay. Again, Kate Henry, staff to this committee.
• The proposed second substitute modifies the half-cent per kilowatt-hour fee, stating that the fee is
• They both eliminate the annual fee that an ELUF must pay and the account for the fee revenues.

Summary: The committee first received staff briefings on amendments for a series of bills, including measures on child care workforce standards, homelessness programs, community preservation authorities, domestic violence survivor relief, public defense funding, student behavioral health supports, water system ownership changes, nonprofit health carrier surplus assessments, 340B drug pricing reporting, Secretary of State filing fees, step housing, campaign security reimbursements, digital equity programs, a Boys and Men’s Commission, a waste-to-energy facility’s Climate Commitment Act obligations, 6PPD tire substitutes, and an early education scholarship. Staff described the policy changes and, where available, the expected fiscal effects of each proposed substitute or line amendment. The committee then went into caucus before returning for executive session. In executive session, the committee voted out House Bill 1073, then adopted a Couture line amendment to House Bill 1128 exempting private K-12 schools with licensed child care programs from the child care employer definition before reporting the bill out as Second Substitute House Bill 1128. House Bill 1316, 1408, 1591, 1592, 1634, 1906, 1960, 2073, 2145, 2248, 2266, 2301, 2333, and 2365 were also reported from committee, with several amendments adopted along the way. Notable actions included adopting an emergency clause for House Bill 1408, rejecting proposed amendments to House Bill 1591 that would have narrowed relief for survivors and removed retroactivity, adopting a narrower amendment to House Bill 1592’s public defense funding formula, and adopting a substitute to House Bill 2145 that limited 340B reporting to hospitals. The committee also debated and rejected several amendments to the step housing bill, House Bill 2266, including proposals for larger school/daycare buffers, more local oversight, and broader local government authority; the bill still advanced on a 16-13 vote. House Bill 2073, which requires nonprofit health carriers to contribute surplus funds to Cascade Care Savings, advanced over concerns about using one-time money for an ongoing program. House Bill 2248 advanced after an amendment redirected annual license fee deposits to the state treasury rather than the Secretary of State’s revolving fund. House Bill 2333 was narrowed to allow use of campaign funds for personal security reimbursements, and House Bill 2365 advanced with some amendments adopted and others rejected as the committee began discussing additional digital equity oversight provisions.

Transcript Highlights:

• state tightening its belt by spending $2 billion additional and starting in taxing and increasing fees
• The residents of my district, with every other fee and tax increase that has hit them to pay for the
• Wildfires and forests release tremendous amounts of CO2 emissions.
• be met in the form of payment in lieu of taxes or, as in the case of the underlying bill, an impact fee
• But I think what the biggest threat is, especially with the discussion around the impact fees and the

Committee: House Appropriations

Transcript Highlights:

• expected to be about $5 billion, with the main sources of that revenue being the $71 vehicle registration fee
• and $32 CHP fee.
• You could look at the revenue side of the ledger; raising new revenues will mean raising fees, which
• Yeah, so in terms of REAL ID, I do want to just touch on the topic that driver's license fees themselves
• source program to basically limit and restrict and propose regulations to reduce greenhouse gas emissions

Summary: The committee held an informational hearing on transportation agency budget proposals and did not take any votes. The first major discussion focused on the Motor Vehicle Account shortfall and a proposed one-time $166 million transfer from the Air Pollution Control Fund and Greenhouse Gas Reduction Fund to offset California Air Resources Board mobile source costs. Department of Finance and the LAO described the account’s long-running structural deficit, driven largely by employee compensation growth and REAL ID-related workload, while members criticized the use of Proposition 4, GGRF, and other one-time or redirected funds as backfills and urged a longer-term solution that addresses both revenues and expenditures. The committee then heard Caltrans’ request for $25 million in General Fund support to create a Clean California Community Cleanup and Employment Pathway Grant Program. Caltrans said the program would build on the prior Clean California effort by funding local litter and graffiti cleanup, community engagement, and workforce pathways for vulnerable populations. The LAO recommended rejecting the proposal, arguing that local litter abatement is not a core state responsibility and that one-time funding is unlikely to solve persistent local cleanup needs. Several members echoed those concerns, while public commenters split between support for the cleanup/employment model and calls to instead restore funding to the Active Transportation Program and transit operations. The Tahoe Regional Planning Agency requested that California administratively recognize Tahoe’s federally designated population figure for state formula-based transportation funding, which would raise the population count used in formulas from 40,000 to 145,000. The agency said the change would not request new money but would better align state formulas with federal law and support a shared regional funding framework; members appeared generally supportive, though they noted the need to phase in the change to reduce impacts on other regions. The final presentation was on High-Speed Rail. The LAO reviewed the authority’s project update report, noting that it did not fully meet statutory requirements and that key details are still pending in a supplemental report expected later in the summer. The LAO said the Merced-to-Bakersfield segment still shows an estimated roughly $7 billion funding gap, with no specific plan to close it, and highlighted risks from federal review, inflation, and uncertain GGRF revenues. High-Speed Rail Authority staff said they are conducting a bottom-up review of scope, schedule, ridership, and costs, expect to provide updated information by late summer, and are exploring public-private partnerships and other financing strategies. Members stressed that no further funding commitments should be made until the updated analysis is available.

Transcript Highlights:

• I collected park fees, and I trained seasonal staff and volunteers.
• ><00:05:20.199><c> I</c><00:05:20.440><c> collected</c><00:05:21.120><c> Park</c><00:05:21.639><c> fees
• </c> viewing programs I collected Park fees viewing programs I collected Park fees and<00:05:22.880><
• Transport is a major component of both cost and emissions associated with production of construction
• aggregates, although emissions are relatively low for extracting the materials.

Committee: Senate Environment, Climate, and Legacy

Transcript Highlights:

• They offer meaningful, durable emission reduction opportunities.
• To put that kind of CO2 emissions into context, 2.2 million tons is roughly equivalent to the amount
• To put that kind of CO2 emissions into context, 2.2 million tons is roughly equivalent to the amount
• So it's mainly just to have less CO2 emission. Yeah. Okay.
• It wasn't really forcing it to use hydrogen to go to zero-emission trucking. It forces it.

Committee: House Energy Resources

Transcript Highlights:

• The bills require the director of ADEQ to maintain vehicle emission testing fees in Area A so that the
• fees collected are at the emission fee level on June 30, 2025.
• and fees collected.
• ABOR sets those fees or approves the tuition and fees, but they don't directly collect it from the universities
• Just a real quick question about the ABOR fees: what is the total fee that ABOR collects?" "Mr.

Summary: The joint House and Senate Appropriations committees met to hear the FY 2027 budget package, beginning with the General Appropriations Act (HB 4154/SB 1847). Staff outlined the overall budget, including one-time fund transfers, lump-sum reductions, funding for state employee health insurance, school facilities, corrections, flood and wildfire relief, education and child care, and other ongoing and supplemental items. Members briefly discussed the absence of a requested $1.5 million for the oversight office, but the chair said no amendments would be taken in committee and that only limited technical changes were likely later in the process. Public testimony on the feed bill was largely supportive but focused on specific funding concerns. Testimony highlighted school safety funding, Alzheimer’s services, small business tax expensing provisions, disability oversight for group homes, county use of opioid settlement dollars, adult education/community college funding, victim notification funding, and ESA oversight. Several speakers praised the budget for funding DDD and other services, while others opposed or sought changes to items such as the COMIT group home monitoring program, Maricopa Community Colleges’ lack of operating aid, and a possible cut to the victim notification program. The chair repeatedly emphasized that changes to the negotiated budget would be difficult and should be routed through leadership. The committee then moved quickly through the remaining budget reconciliation bills. Staff summarized bills covering amusement and wagering, capital outlay, commerce, criminal justice, environment, health care, higher education, human services, and K-12 education. Notable provisions included continued wagering assessments, highway and building renewal funding, defense innovation and economic development changes, corrections and wrongful conviction provisions, groundwater and water banking measures, health insurance oversight and opioid settlement provisions, higher education funding and ABOR operating caps, SNAP and housing trust fund changes, and a 2% inflation increase for K-12 formula components. The K-12 bill also included a biometric school safety pilot and a child sexual abuse prevention pilot. No votes were taken in the portion provided, and the chair indicated the committee would continue through the remaining bills.

Transcript Highlights:

• And we have something called a load development fee.
• Developers pay, in our community, impact fees, so they contribute to housing projects.
• And the scheme that's out there currently is a fixed fee that they pay into the pot.
• And so we may look at that fee in the future, but I think you're making a great point.
• Well, I mean, I think, well, I'm not sure exactly what goes into their, what their fees are.

Transcript Highlights:

• We also add regulations to the price of gas, mandates, fees.
• Let me be very clear: AB 1421 does not impose a new tax or fee.
• Or fee.
• I present AB 739, which aims to provide transparency to homeowners on fees charged by managing agents
• Data from our California Department of Tax and Fee Administration point to a potential loss of nearly

Transcript Highlights:

• Emissions.
• To the extent that it's caused by man-generated carbon emissions, we have absolutely no effect on that
• by reducing our carbon emissions in the state of California.
• They are paid by somebody’s fees or some penalties. They’re real money.
• approved, our total budget would be about $198 million. $104 million of that is funded with licensing fees

Summary: The subcommittee heard a series of budget presentations from the Department of Food and Agriculture (CDFA), the Department of Cannabis Control (DCC), and related agencies. CDFA discussed its overall budget, ongoing support for the Farm to School program and climate-smart agriculture, and a proposed climate bond expenditure plan. Members focused heavily on whether the Farm to School proposal should become ongoing, how schools and suppliers are selected, whether the program is reaching disadvantaged and food-insecure communities, and whether the trailer bill language creates new duties. The LAO recommended rejecting the ongoing Farm to School proposal as presented, suggesting the Legislature consider Prop. 98 funding instead, while CDFA argued the program supports children, farmers, and local economies and helps build long-term supply-chain infrastructure. Several members also questioned the bond plan’s timing, program metrics, and workforce impacts, while LAO said the bond plan was generally reasonable and should be guided by legislative input. The committee also discussed CDFA’s proposal to eliminate vacant positions; the department said the positions were largely long-vacant or unfunded and could be reclassified if needed, while LAO recommended retaining the special-fund positions and weighing the General Fund positions on their merits. CDFA’s IT support request for additional ongoing funding and four positions was presented as necessary to address staffing shortages, legacy systems, and cybersecurity risks, and LAO had no concerns. The committee then took public comment and voted to approve items 9 through 13, including CDFA dog importation and carcass disposal items, a Gambling Control Commission IT item and tribal grant fund item, and an ABC office relocation item. DCC presented a request to strengthen enforcement against the illicit cannabis market by opening a North State office in Redding and adding sworn and non-sworn staff. The department said most cannabis consumed in California still comes from the illicit market, that it receives about 1,500 complaints annually but can close only about 400 cases, and that it has a backlog of roughly 4,000 cases. DCC argued that a northern office would reduce travel time, improve coordination with local agencies, and help target cross-county and cross-border criminal networks. Finance supported the request as a targeted investment, and LAO had no comment. Members asked about public safety, office security, and whether a North State presence would increase complaints or referrals; DCC said safety is considered in every office opening and that a local presence would likely improve case development. The director also described the broader regulatory strategy as balancing consumer safety, illicit-market enforcement, consumer awareness, and reducing friction for legal operators. The discussion continued into broader concerns about the size of the illicit market and the long-term goals for the cannabis program.

Transcript Highlights:

• This is Apple Health expansion caseload shifting from managed care to fee for service.
• This is Apple Health Expansion caseload shifting from managed care to fee for service.
• there are savings related to changes in the depreciation formula for grants used to purchase zero-emission
• There's a one-time appropriation of the building account funds into the operating fees account that's
• appropriations in the operating budget, and then there's a one-time fund swap between the operating fees

Summary: The conference committee on Engrossed Substitute Senate Bill 5998 met to review the operating budget conference report. House and Senate budget coordinators walked through comparison documents showing the Senate-passed budget, House-passed budget, and the conference proposal, including statewide totals, agency detail, revenue assumptions, transfers, and the four-year outlook. They said the conference budget uses the February 2026 ERFC forecast, includes an $880 million transfer from the budget stabilization account to the general fund, and reflects a four-year net near-general-fund impact of about $800 million, with an ending fund balance of $231 million in 2025-27 and $563 million in 2027-29. They also noted that future collective bargaining agreements are not included in the outlook beyond those already settled. The briefing highlighted major policy items across the budget, including Working Families Tax Credit expansion, a proposed city and county fiscal health account, changes to Working Connections child care attendance payments, behavioral health facility and staffing adjustments, long-term care funding for certain non-citizen residents affected by federal changes, Apple Health and other health-related responses to H.R. 1, K-12 changes such as free school meals contingent on related legislation, Running Start and transportation depreciation adjustments, higher education administrative reductions, corrections staffing and bed changes, wildfire response funding, and state employee compensation agreements. Members also discussed the budget’s reliance on revenue measures and transfers, including legislation referenced as 2487, 6228, 6231, and 6346. After the presentation, Senator Robinson moved adoption of the conference report and passage of the bill as recommended by the committee. In discussion, supporters said the budget protected core services and responded to federal H.R. 1 impacts, while opponents criticized the size of the budget, the use of reserves, future outlook assumptions, and reductions in some K-12 and other programs. The committee then voted 4-2 to recommend the conference report and ESSB 5998 to the legislature, with Representatives Gregerson and Ormsby and Senators Robinson and Stanford in favor, and Representative Couture and Senator Gildon opposed.

Transcript Highlights:

• These help farmers and ranchers reduce greenhouse gas emissions.
• We are the ones who have to pay the fees to do that.
• We are the ones who have to pay the fees to do that.
• growing vegetables on half of her property over concerns about the cost of new groundwater pumping fees
• It will also reduce GHG emissions, and it's also a win for economic development.

Summary: The joint informational hearing focused on the state of agricultural production in California, with opening remarks from the Senate and Assembly Agriculture Committee chairs and Assemblymember Aguiar-Curry emphasizing agriculture’s economic importance and the need for stronger state investment. They highlighted concerns about water scarcity, labor shortages, rising costs, extreme weather, tariffs, pesticide and regulatory pressures, and the lack of agricultural funding in recent climate-related allocations. Aguiar-Curry also urged immediate action on the glassy-winged sharpshooter outbreak, which CDFA said would cost about $18.5 million annually to detect, monitor, and eradicate. The first panel featured CDFA and the Department of Water Resources. CDFA described California agriculture as a $61.2 billion industry producing more than 400 commodities, but also noted farm bankruptcies, rising input and compliance costs, climate stress, trade issues, and crop removals in vineyards and almonds. DWR focused on hydrologic variability, snowpack decline, groundwater overdraft, subsidence, and SGMA implementation, and discussed tools such as forecast-informed reservoir operations, groundwater recharge, basin characterization, and the 2028 water plan update. Members asked about immediate legislative priorities, flood response after 2023, Prop. 4 and greenhouse gas reduction funding, and regulatory alignment; officials pointed to pest control, science-based water management, affordability, infrastructure, and better coordination across agencies. The second panel examined water, climate, and resource sustainability. PPIC presented estimates that SGMA, climate change, and environmental regulations could reduce irrigation water in the San Joaquin Valley by about 20% by 2040, potentially requiring 500,000 to 900,000 acres of fallowing and affecting billions in agricultural GDP and tens of thousands of jobs. UC Merced discussed practical adaptation tools including FIRO, managed aquifer recharge, on-farm recharge, land repurposing, agrivoltaics, and crop flexibility. The Agricultural Energy Consumers Association argued that energy costs are unsustainable, that electricity and natural gas rates are rising sharply, and that state programs supporting climate-smart agriculture, biomass, and food processing need more funding and coordination. Members and witnesses discussed how limited Prop. 4 and GGRF dollars might be used for recharge, conveyance, subsidence mitigation, and regulatory improvements. The final panel addressed workforce innovation and the future of food production. Industry representatives said food and fiber processors cannot pass along rising costs from energy, labor, workers’ compensation, packaging rules, and compliance mandates, and warned that SGMA-driven land fallowing, pest pressure, and abandoned orchards threaten small farms and processing jobs. The Almond Alliance called for periodic review of regulations, stronger invasive species response, and targeted support for orchard removal, ag burn alternatives, and water efficiency. The California Farmworker Foundation described its work providing health, education, and civil assistance services to farmworkers in multiple counties, including health navigation, field-based clinics, and food support, and stressed the needs of an aging labor force and food insecurity in rural communities. No votes were taken; the hearing was informational, with members and witnesses discussing possible future legislation and funding priorities.

Transcript Highlights:

• One note I'll have there is, you know, not everybody reports emissions; the data is incomplete.
• And in terms of the costs, you know, what are the fees?
• other folks' money. ...our money is in with a lot of other folks' money, and we have extremely low fees
• decision, deferring inconceivably large expenses as we use the environment as a sewer for our carbon emissions
• Other pensions found that better returns more than compensate for the higher fees.

Bills: SB5439 , SB6109 , SB6304

Committee: Senate Ways & Means

Keywords: investment, thermal coal, divestment, state investment board, fossil fuels, environmental impact, renewable energy, detention facilities, state funds, privatization, criminal justice reform, Washington State Investment Board, responsible investment, sustainability, corporate governance