Transcript Highlights:

• Those high costs aren't a fact of nature that we must simply accept.
• This project is one of the most cost-effective, cost per metric ton of greenhouse gas reduction, in all
• And that's a huge cost that is directly imposed by government on new housing.
• It's much more cost-efficient to serve than housing in outlying areas.
• The other is the cost of construction, and then the third is the demand.

Summary: The Select Committee on Downtown Recovery held an informational hearing on the future of public transit and its role in downtown recovery. Chair Haney framed the discussion around how downtowns have changed since the pandemic and how transit, walkability, housing, and street design can support more 24/7 activity. The hearing included three panels: transit agency representatives, street design and curb management experts, and housing/transit development advocates. Transit agency witnesses from BART, LA Metro, and Sacramento Regional Transit described post-pandemic ridership shifts, with more weekend, evening, and event-based travel and less reliance on traditional weekday commute patterns. BART highlighted downtown San Francisco’s dependence on transit, its event service, safety investments, and transit-oriented development pipeline, while asking the state to protect transit funding and honor SB 125 and greenhouse gas reduction fund commitments. LA Metro emphasized special event service, especially around the World Cup and Union Station activations, as a way to make transit a destination and improve customer experience. Sacramento Regional Transit reported bus ridership recovery above pre-pandemic levels, light rail lagging behind, new vehicles and stations, stronger security measures, and concerns about future funding cuts affecting student fares, capital projects, and service levels. The second panel focused on making downtown streets more walkable and transit-friendly. Jeff Speck argued that walkability depends on places being useful, safe, comfortable, and interesting, and urged cities to restripe streets, reduce lane widths, add bike protection, improve crossings, and redesign one-way streets. Mark Vuksevich of Streets for All said downtowns are statewide economic assets and called for frequent transit, bus priority, modern curb management, parking pricing tied to availability, and parking benefits districts that reinvest revenue locally. He also said the state should provide model enabling legislation and more flexibility for local experimentation. The final panel focused on housing near transit. California YIMBY’s Aaron Eckhouse supported AB 2074, which would encourage large-scale housing in transit-rich downtowns, and argued for more financing tools, condo reform, and building code changes to reduce costs. Transbay Joint Powers Authority Executive Director Adam Van Water described the Transbay Transit Center and surrounding district as a case study in transit-oriented downtown growth, with millions of square feet of development, thousands of residents, and a major portal project still awaiting funding and pre-construction work. Members discussed office-to-housing conversions, the need to repurpose underused office stock, and the importance of state funding and policy support for transit, housing, and downtown revitalization.

Transcript Highlights:

• Even with strong consumer demand, our industry continues to face mounting operational costs such as insurance
• That is our third largest expense: labor costs, food costs, and credit card fees.
• The result would be extensive operational challenges, compliance costs, and administrative uncertainty
• Every swipe has a cost to it. Every swipe has a cost to it.
• and unexpected housing costs.

Committee: Joint Joint Committee on Financial Services

Summary: The Joint Committee on Financial Services heard testimony on several bills focused on financial security, banking regulation, and payment-card fees. Treasurer Deborah Goldberg supported the Massachusetts baby bonds proposal (H. 48) and also endorsed bills on matched savings (H. 1158/S. 737) and retirement planning/Secure Choice (H. 1143/S. 722), arguing these measures would help address wealth inequality, build assets, and improve retirement readiness. Supporters of baby bonds included policy experts and health advocates from Children’s Health Watch and Boston Medical Center, who said early-life asset building could improve long-term economic and health outcomes for children in low-income families. AARP also urged passage of the retirement planning bill, citing the large share of private-sector workers without access to an employer retirement plan. Representative Donato testified for H. 1143, describing it as a voluntary retirement-savings opportunity for workers at small employers. The committee also heard testimony on H. 3933, concerning the Massachusetts Credit Union Share Insurance Corporation, from former Bank Commissioner Mike Hanson, who defended the state’s full deposit insurance system for credit unions and savings institutions as a longstanding consumer-protection model. The Massachusetts Bankers Association raised concerns about the bill’s technical provisions and broader credit union/bank competitive issues, while the Cooperative Credit Union Association supported related legislation allowing modest compensation for credit union directors (S. 821/H. 1338) and flexibility for state financial institutions to grow through partnerships (S. 723). Bankers opposed those credit union bills, arguing they would upset a level playing field and blur long-standing distinctions between banks and credit unions. A major portion of the hearing focused on H. 1259/S. 688, which would prohibit card interchange fees on the tax and gratuity portions of restaurant transactions. Restaurant owners and the Massachusetts Restaurant Association testified in favor, saying the fees are a significant and growing expense, especially as most customers now pay by card; they argued the bills would save restaurants money without affecting state revenue. Credit union, banking, and payments-industry representatives opposed the bills, saying interchange helps fund fraud protection and payment infrastructure, that the proposal would create compliance burdens and likely litigation, and that it would mainly affect Massachusetts-chartered institutions while national banks could be preempted. Committee members noted that a commission on payment-card fees is being established and said the issue would be studied further. The hearing also included support for a separate bill on virtual credit cards for dental providers, with dentists saying automatic virtual-card payments impose hidden processing fees and fraud risks.

Transcript Highlights:

• We do not yet have a quorum, so we will operate as a subcommittee to begin our bill presentations.
• And then we wonder why the cost of housing is so darn expensive.
• So the cost of that is not huge.
• when those operating revenues are just not enough.
• if and when those operating that operating revenues are just not enough I think this was you know one

Summary: The committee heard several housing-related bills. AB 2002 would clarify and extend the REAP 1.0 regional housing planning grant program, with the author and regional planning groups arguing it provides needed technical assistance for housing elements and RHNA compliance; the California Building Industry Association opposed unless amended over concerns about local constraints. The committee discussed accepted amendments on regulations, suballocation to subregions, and spending deadlines, and then passed the bill on a do pass as amended motion to Senate Appropriations. AB 1684 would prohibit HOAs from restricting homeowners’ ability to install or replace cooling systems, with supporters citing heat safety and opponents focusing on building integrity, electrical capacity, permits, and common-area placement; the committee adopted amendments on licensed electrical contractors, disclosure, and permit requirements, and passed the bill to Senate Judiciary. AB 1710 would extend SB 330-style vesting protections to state and regional agencies so housing projects are not subject to later regulatory changes, with supporters emphasizing predictability and opponents warning it could conflict with later state, regional, and federal requirements, especially for water and environmental rules; the bill was passed as amended to Senate Local Government. The committee also heard AB 2263, which would authorize the Santa Clara Valley Transportation Authority to provide employee housing on its land with a preference for VTA workers while keeping units open to the public and compliant with fair housing law. VTA said the bill would help employees facing long commutes and high housing costs, and the committee discussed financing through transit-oriented development partnerships and existing land holdings; the bill was passed as amended to Senate Appropriations. AB 2270 would require the state tax credit committee to account for rural realities when scoring farmworker housing projects for low-income housing tax credits; supporters said current amenity-based scoring disadvantages rural farmworker developments, and the bill was passed as amended to Senate Appropriations. Later, AB 2118 would refine AB 2011 by limiting local objective standards that can block mixed-use and affordable housing projects, with supporters saying cities still use loopholes to delay projects; the committee discussed possible state mandate reimbursement issues and passed the bill to Local Government. Finally, AB 2050 would require HOA reserve funding based on reserve studies, add notice and safeguards for reserve transfers, and phase in funding over six years; supporters argued it would prevent large special assessments and protect homeowners, while opponents said enforcement remains weak and the bill could still burden owners. The committee did not take a final recorded vote on AB 2050 in the portion provided, but members discussed the need for stronger enforcement and the balance between reserve funding and affordability.

Transcript Highlights:

• And the million dollars is just litigation cost?
• No, it was a combination of the operator and the county.
• terminal gate lanes and yard operations.
• terminal gate lanes and yard operations.
• Please support 5995 to keep our ports operating safely and efficiently with human operation and oversight

Summary: The committee heard four bills. On kit homes (ESSB 5552), staff explained the bill would direct the State Building Code Council to adopt rules for residential kit homes of 800 square feet or less by March 31, 2027. Prime sponsor Sen. Jeff Wilson said the bill would add housing options and asked that kit homes be treated as a distinct category from modular or factory-built structures; members asked whether current rules exist and whether the bill would cover 3D-printed homes. The public hearing was postponed, and later one supporter testified that the bill would help create clearer statewide standards without changing local zoning or safety requirements. On SB 5467, staff said the bill raises the thresholds for water-sewer districts to sell surplus property without notice or by private sale, increasing the personal property threshold to $5,400 and the real property threshold to $7,500. Sen. Keith Goehner said the change simply updates outdated limits to reflect inflation and improve efficiency. A representative of the Washington Association of Sewer and Water Districts supported the bill, noting the thresholds had not been updated since 2011 for real property and 1993 for surplus property. The committee closed the public hearing without action. The committee also heard SB 5820, which would repeal Clark County’s authority to apply a freight rail-dependent use overlay to certain lands under prior law. Sen. Adrian Cortes argued the existing exemption has harmed agricultural and forest lands, led to environmental violations, and cost taxpayers money, while local supporters said the overlay has not produced promised economic benefits and should be removed. Opponents, including a railroad operator, the Association of Washington Business, and others, said the rail line supports economic development, rail-served industrial demand, and existing contractual and public investments, and warned repeal could strand investments and limit future freight and climate-friendly transportation options. The hearing was closed with no vote. Finally, the committee heard SB 5995, which would remove the 2031 sunset from the existing prohibition on using public port funds to buy fully automated marine cargo container handling equipment, while continuing to allow zero- and near-zero-emission equipment purchases. The sponsor and labor witnesses said the bill protects family-wage jobs, keeps taxpayer money from subsidizing automation, and preserves human oversight for safety and efficiency. Port and shipping industry opponents argued the bill is premature, could reduce port competitiveness, and should remain subject to the current sunset so the policy can be revisited later. The public hearing was closed with no action taken.

Transcript Highlights:

• However, our commercial disposal operators, that is, operators who are accepting wastewater that's been
• on the common operating picture.
• So we know going in what the cost is going to be, and they know it going in what the cost, if we EMAC
• The 50-50 cost share, though, is their baseline cost share, is probably...
• The 50-50 cost share, though, is their baseline cost share, is problematic for states like Louisiana

Summary: The committee met on May 26, 2026, and first approved the minutes from the May 22, 2025 meeting. The main topic was the Northwest Louisiana earthquake cluster, with testimony from Louisiana Department of Conservation and Energy staff, LSU and Tulane geoscientists, and later LSU law professor Keith Hall. Witnesses said the cause of the swarm has not been definitively identified, but induced seismicity from wastewater injection or hydraulic fracturing remains a concern. They described 50 earthquakes reported by the USGS in Red River, Bienville, DeSoto, and Natchitoches Parishes, including a magnitude 4.9 event on March 5, 2026, and explained that Louisiana’s sparse seismic network limits detection and depth/location estimates. C&E said it inspected Class II injection wells within 12 miles of the events, found no violations, now requires more frequent injection reporting, and is working with researchers and LSU on a possible state monitoring network and future policy changes. Committee members asked about injection depths, fault locations, whether the activity could be natural, and whether Louisiana should adopt stronger monitoring or a traffic-light regulatory system like other states. The witnesses said more data is needed before firm conclusions can be drawn, but that denser monitoring can detect smaller quakes and help identify patterns. Professor Hall summarized responses in other states, including more frequent reporting, increased monitoring, injection reductions, moratoria, and traffic-light systems in Oklahoma, Kansas, Texas, Ohio, and Illinois. Members also discussed whether operators should share more seismic and geologic data, and several said the state should avoid jumping to conclusions while still improving oversight. The committee then heard from William Berger, a Texas geoscientist, who described using AI and operator data to model wastewater injection and seismic risk, and said broader data sharing would improve forecasting and siting decisions. He and another witness emphasized that many earthquakes arise from clusters of wells rather than a single well, and that proprietary concerns limit voluntary disclosure. The committee also received a brief update from GOSEP and the Louisiana National Guard on the Barksdale Air Force Base drone incursions. GOSEP said it logged the incident in WebEOC and shared releasable information, while State Police and the FBI said they were limited in what they could disclose. Officers said a task force has been formed, some personnel have received federal drone-mitigation training, and House Bill 940 is intended to mirror the task force MOU. Finally, Major General Thomas Friloux and Brigadier General Jason Maffus updated the committee on the merger of GOSEP into the Louisiana Military Department. They said the merger has reduced GOSEP from seven divisions to three, brought back employees to in-person work, modernized the state’s common operating picture, and produced about $10.5 million in first-year cost avoidance through staffing and contract changes. They also noted the planned transfer of the Louisiana Center for Safe Schools to the Louisiana Commission on Law Enforcement, ongoing hurricane preparedness, and continued coordination with parish emergency managers. No votes were taken on the substantive topics, and the meeting ended with the committee moving through its agenda items and receiving informational testimony.

Transcript Highlights:

• So the Board of Health authorized a set fee schedule to cover the cost of operating the nursing home
• A set fee schedule to cover the cost of operating the nursing home licensure and inspection program.
• of medications, Because some of the factors are, again, the cost of medications, the cost of insurance
• That's cost to the program.
• That's cost to the program.

Committee: House Health and Human Services

Transcript Highlights:

• to support state operations costs for the Every Woman Counts program.
• to support state operations costs for the Every Woman Counts program.
• County contract for updated indirect costs, employee benefits and rates, personnel costs, and lease costs
• system costs.
• system costs.

Summary: The committee first heard May Revision child care and human services items. The Department of Child Support Services described two technical adjustments, which the analyst supported. The Department of Social Services then walked through child care proposals, including a reduction in federal and Proposition 64 funding absorbed through a shift from General Child Care to the Alternative Payment program, a 2.01% child care COLA, disaster-related infrastructure grants, a new administrative support cost structure for Alternative Payment agencies, the removal of prospective pay funding after a federal rule change, a reappropriation for existing infrastructure grants, and estimates of unspent child care funds. The Legislative Analyst’s Office recommended asking for more justification for shifting reductions to CAP, supported the COLA reduction but wanted consistency across programs, recommended removing prospective pay funding, opposed the administrative cost shift, and suggested further review of disaster grant alignment. Members pressed the administration on why more slots would be cut for the same savings, why the COLA was reduced, and whether the administrative percentage would grow over time. The administration said the changes were intended to avoid disrupting currently enrolled families, reflect point-in-time relinquishments and unspent funds, and stabilize contractor operations. Public commenters, including providers, advocates, and county representatives, urged full COLA funding, rejection of child care slot reductions, preservation of prospective pay, and continued investment in child care infrastructure and access. The subcommittee then recessed before moving to health items. In Part B, the Department of State Hospitals presented its May Revision proposals, including a central utility plant replacement project at Metropolitan State Hospital, funding for a continuum electronic health record system, reduced county bed billing authority to reflect phase-in of additional LPS beds, limited contract exemption authority for online clinical subscription services, reversion of prior-year unspent operating funds, and a workforce development proposal to use Behavioral Health Services Act funds instead of General Fund for training programs. The department said the EHR would modernize records and improve continuity of care, and that the contract exemption would prevent delays in essential clinical information services. No votes were taken in the excerpt provided.

Transcript Highlights:

• One, salaries and benefits are the largest share of operational costs.
• costs on a daily basis.
• Operational costs on a daily basis.
• In other words, I realize that most schools have some operational costs that are fixed.
• Is there a minimum that schools... because you know we have operational costs, we have administrative

Transcript Highlights:

• What is the cost to, the cost of labor to deliver those things.
• cost.
• Overwhelmingly, my biggest concern is cost and cost containment.
• Overwhelmingly, my biggest concern is cost and cost containment.
• and without that cost.

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Transcript Highlights:

• The bill outlines the information the review must contain, including capital and operating cost comparisons
• The bill outlines information that the review must contain including capital and operating cost comparisons
• The study is not simply like, let's look at the capital operating cost comparisons versus, you know,
• Transit operations as a whole are a local issue.
• cost shifts for these and similar policies.

Summary: The committee met to hear and vote on a series of appropriations and transportation-related bills, beginning with SB 1550, which would fund a Queen Creek police pilot program focused on runaway youth prevention, at-risk youth protection, and anti-trafficking work. Supporters said the town and local facilities already contribute personnel and administrative support, while some members urged Queen Creek to add local matching funds. The bill received a due pass recommendation on a 7-2 vote. The committee then considered SB 1156 and SB 1157, both $20 million border-related reimbursement bills sponsored by Senator Rogers. SB 1156 would reimburse cities, towns, and counties for short-term detention hold costs for unauthorized non-citizens, and SB 1157 would reimburse local governments for supplemental fencing or bollard walls in high-crossing border areas. Both bills drew strong opposition from public commenters who described them as funding detention and border enforcement at the expense of other needs, while supporters framed them as backfilling local costs already incurred. SB 1156 passed 5-3, and SB 1157 passed 5-3. The committee also approved SB 1245, which would fund pavement replacement on Rodeo Road in Williams, and SB 1707, which would provide $5 million for AI-related border security at DPS. SB 1245 passed 6-3, with some members objecting that the state highway user revenue fund is underfunded and local contributions should be required. SB 1707 passed 6-4 after testimony split between supporters who favored using AI and surveillance tools for border security and opponents who said the bill was too vague, too expensive, or inappropriate given other state priorities. Later, the committee advanced SB 1273, funding pavement rehabilitation on Ogle Frontage Road between Bowie and San Simon, and SB 1811, which would clarify that school districts and charter schools may allow wireless device use in the case of an emergency rather than during an emergency. SB 1273 passed 6-4 amid debate over state versus local funding responsibility, and SB 1811 passed 8-1 after testimony that the change would give schools more flexibility and avoid practical problems during emergencies. The committee also heard SB 1088, a cybersecurity appropriation for DHS, and SB 1332, which would require ADOT to study light rail expansion in Maricopa County versus autonomous or semi-autonomous transit options. SB 1088 passed 6-4 despite concerns that the appropriation was vendor-driven and not requested by the department. SB 1332 drew extensive testimony from small business owners along Indian School Road who said light rail construction had harmed access and sales, while Phoenix/Valley Metro opposed the bill and questioned ADOT’s role; the discussion continued as the transcript ended.

Transcript Highlights:

• So that's why it would have a cost.
• It does not have an MA cost.
• Funding the operating reductions.
• </c> some of these costs is the facility fee. some of these costs is the facility fee.
• This provision would cost fees.

Committee: Senate Health and Human Services

Transcript Highlights:

• So currently, the way that funding source is structured, it pays for the costs associated with operating
• We operate 15 garages.
• Those are all costs.
• We need numbers and costs because even though we don't know those costs right now, or everyone is saying
• that we don't have those costs right now, we know for a fact that those costs are going to be shifted

Summary: The subcommittee heard an informational update on the state’s generative AI implementation and related oversight. Administration officials said several proof-of-concept projects have moved into minimum viable product phases, including work at CDTFA and Caltrans, and that CDPH has a May Revision request for up to $8 million to scale up its healthcare facilities inspections project. The Legislative Analyst’s Office urged the administration to publish a report on lessons learned from each POC and recommended limiting the new generative AI approval process to a pilot through the first two rounds of projects, with continued monthly meetings and stronger legislative oversight. Members pressed for more transparency and questioned why the CDPH request was not included in January; the administration said the cost estimate was not available then and that only one project is seeking additional resources beyond existing departmental budgets. The committee then reviewed a proposed $400 million loan from the Labor and Workforce Development Fund to the General Fund. Finance and the Labor Agency said the fund has grown because civil penalty revenues have risen sharply, and the loan would be repaid in 2029-30 with provisional language allowing earlier repayment if needed. The LAO agreed the fund could support the loan but warned that recent PAGA reforms may reduce future revenues. Public commenters, including labor and community groups, argued the money should instead support labor-law enforcement and outreach programs such as CWOP, and urged rejection of the loan. Members also heard a Department of Industrial Relations request for $19.1 million for phase two of Public Works Information Technology System Enhancements, which officials said will support labor-law enforcement and apprenticeship registration. The department said the project was delayed because a prior procurement did not result in a contract award and that completion is now expected in October 2026. The committee then took up an EDD Next reappropriation technical adjustment to extend UI fund spending authority through June 30, 2026; the LAO said the request was fine but again raised concerns about oversight of the larger modernization effort, which EDD said now totals more than $660 million and is expected to continue through 2029. Finally, the committee discussed DGS’s request for new parking facilities near the May Lee Building and a trailer bill shifting statewide telework policy language from DGS to CalHR while also expanding NDI eligibility for certain CEA employees. The LAO said the telework trailer bill should likely go through the policy committee process instead of budget, and union and employee witnesses strongly opposed it, arguing it would undermine bargaining rights and could be used to narrow telework. In a separate item on the governor’s return-to-office order, administration officials said departments are being directed to move to a four-day in-office expectation starting July 1, 2025, but they had no statewide cost estimate yet because departments are still assessing vacancies, exemptions, and space needs. Members criticized the lack of analysis and said the state should have clearer numbers before moving forward.

Transcript Highlights:

• , like rising utility costs.
• on staying out of operations.
• What was once a collection of locally owned, locally operated, mom-and-pop hotel operations in cities
• They are no longer locally owned and operated hotels.
• They are now almost exclusively hotel operators.

Committee: House Labor and Employment

Transcript Highlights:

• This bill will provide crucial support for nurses considering a career in the operating room.
• This bill will provide crucial support for nurses considering a career in the operating room.
• This provides an exemption for nursing homes operated by state agencies from the requirements.
• So in your close, could you talk about maybe the cost of that, or will there be a cost concerning this
• So, to me, it's not a cost driver. It doesn't increase costs.

Committee: Senate Appropriations Committee on Health and Human Services

Summary: The Health and Human Services Appropriations Committee met to review and advance the Senate’s fiscal year 2025-26 budget proposal for the committee’s portfolio. The presentation highlighted a $1.8 billion increase over the current base budget, including full funding for Medicaid and KidCare, investments in IT modernization, Medicaid provider rate increases, mental health and substance use services, opioid treatment, foster care and guardian assistance, elder care, veterans’ services, cancer research, school nurse staffing, and other public health initiatives. The committee adopted a motion allowing technical adjustments and then approved the budget proposal to be reported to the full Senate Appropriations Committee. The committee then heard and voted on several bills. SB 152 on surgical smoke protection required hospitals and ambulatory surgical centers to adopt smoke evacuation policies; nurses testified in support, citing workplace and patient safety risks, and the bill was reported favorably. CS/SB 958 on early detection of type 1 diabetes required the Department of Health to provide educational materials to schools and, by amendment, early learning coalitions; it was also reported favorably. CS/CS/SB 170 on nursing home oversight added consumer satisfaction surveys, reporting requirements, quality incentive changes, and financial reporting penalties, with an amendment exempting state-operated homes and directing a study of best practices; it passed after questions about dementia, language access, and retaliation protections. CS/SB 738 modernized child care regulation by streamlining DCF processes and reducing obsolete requirements, and was reported favorably without opposition. The committee also approved CS/SB 1356 creating the Florida Institute for Pediatric Rare Diseases at FSU and a Sunshine Genetics pilot to expand rare-disease screening and research, with support from members emphasizing early detection and data collection. SB 1370 separated ambulatory surgical centers into their own statute, with testimony that the change would better reflect the industry and help avoid burdensome regulation; it passed favorably. Finally, CS/CS/SB 1626 made a range of child welfare changes, including codifying DCF coordination with military installations, adjusting shelter certification, refining criminal-background exemptions, extending licensing compliance time, addressing room-and-board rate methodology, and clarifying missing-child procedures; after adopting three amendments and hearing both support and concerns, the bill was reported favorably. The committee also recorded a member’s affirmative vote on SB 958 before adjournment.

Transcript Highlights:

• </c> operate within. operate within.
• </c> is operating and even what it is doing. is operating and even what it is doing.
• </c> internal operations of the Met Council. internal operations of the Met Council.
• They operate in my district.
• </c> How does it operate with the arm? How does it operate with the arm?

Committee: Senate Transportation

Transcript Highlights:

• Instead, we operate under an incremental budgeting model.
• Last year, Western reduced its operating budget by 10%, or almost $23 million.
• Fully funded compensation is essential for our operations.
• Enrollment grew, yet we cut costs.
• curve and lowered our per-student costs.

Summary: The committee heard public testimony on House Bill 2070, which would create state funding parity for Western Washington University by tying appropriations to a per-student funding ratio. The prime sponsor and Western officials said Western has long been the lowest-funded public four-year institution on a per-student basis, leading to budget cuts, reduced student services, and delayed graduation. Students, faculty, and university leaders testified in support, while some members questioned whether the bill should instead address a broader higher-education funding formula for all institutions. Central Washington University also supported the bill but suggested a broader approach. No vote was taken on HB 2070. The committee then heard House Bill 2671, which would expand eligibility for state financial aid to certain nonprofit out-of-state branch campuses operating in Washington if they meet specified accreditation, duration, and authorization requirements. Rep. Timmons said the bill is intended to help students in an accelerated nursing program at Northeastern University in Seattle access aid and support workforce needs. Northeastern’s dean testified in support, saying the bill would align financial aid law with prior changes to degree-granting statutes and would not increase state spending. The hearing on HB 2671 was then closed. House Bill 2617, dealing with the higher-education “fund split,” drew extensive testimony. The bill would gradually shift more of employee compensation increases and central services costs to state funding, and would require a study of essential student services. The sponsor and many university, faculty, staff, and student witnesses argued that the current funding practice shifts costs to tuition, contributes to layoffs, program cuts, larger classes, and reduced student support, and creates instability across public higher education. Community and technical college representatives also said underfunding COLAs harms operations and students. The committee then moved to executive session on Senate Bill 6258, which would authorize the Washington Medical Commission to create a non-disciplinary pathway for voluntary license relinquishment; the committee approved it 14-0 with a due-pass recommendation, with three members excused.

Transcript Highlights:

• It's a $250,000 transfer from professional fees to operating expenses.
• The actual cost is right there in paragraph 3.
• So $3,000 is what it's going to cost us to get the building back. $46,000 is what it's going to cost
• The actual cost is right there in paragraph 3.
• I don't know if you had replacement cost or ACV or what you had.

Committee: All ALC-PEER

Summary: The committee considered a series of appropriation, fund transfer, and reserve requests across multiple agencies. Section B temporary appropriations included funding for state technology upgrades, personnel management staffing and IT skills assessment, court reporters and interpreters, crime victim claims, juvenile sex offender assessments, radiation lab testing, and higher education workforce grants and credentialing pathways. Additional items covered an ARPA grant for the University of Arkansas Fort Smith LPN program, an IIJA grant for the Oil and Gas Commission’s critical minerals work, a restricted reserve transfer for State Police vehicle purchases, a transfer to the Arkansas Heroes Program, and cash fund requests for the Real Estate Commission’s AV system and HVAC work. Most of these items were approved by voice vote. One budget classification transfer request from the Commissioner of State Lands drew extended questioning and was ultimately not approved. Members questioned the $250,000 transfer to operating expenses tied to the purchase of a West Little Rock office building, the ongoing lease costs at the prior location, and whether the agency had adequately planned for building-related expenses. After discussion, the motion failed, and members told the agency to tighten spending and return if needed. The committee then took up 15 pay plan appropriation requests totaling $25.7 million and approved them after discussion with DFA, DHS, Corrections, and the State Board of Election Commissioners. Members focused heavily on DHS staffing shortages at human development centers, where officials said vacancies and turnover were driven by overtime and burnout rather than pay alone; one member asked DHS to submit a written plan to address the issue. Corrections reported the pay plan had improved hiring and retention. The committee also approved overtime appropriations for Emergency Management and Military. Reports on reserve funds, the Budget Stabilization Trust Fund, tobacco settlement, State Central Services, Education Adequacy, Medicaid Trust, IIJA, and revenue transfer activity were received. The Medicaid Trust Fund report prompted significant concern about February’s $90 million draw; DHS said the month was unusually high because of cash-flow timing and that the fund should end the year with a balance between $150 million and $200 million, while lawmakers noted a second $100 million set-aside is planned for FY27. The final discussion centered on DHS’s state hospital damage claim and reconstruction funding, where members expressed disappointment that insurance reimbursement would likely return only about $1.8 million now and possibly about $97,000 more later, far less than the roughly $5 million initially expected. DHS explained the policy was based on actual cash value and depreciation for old buildings, and said the work would proceed on Unit 3 for secured restoration because it was the most cost-effective option.

Transcript Highlights:

• These all carry huge personal costs, of course, impact the community, but also real financial costs.
• Sheltering that same person costs $60,000 annually, not counting law enforcement and health care costs
• There are significant downstream costs.
• to address rising costs.
• It's only limited to their operations.

Summary: The committee heard budget and workload presentations from the Office of the State Public Defender, legal aid organizations, and the Judicial Branch. OSPD requested permanent funding for positions that had been temporarily funded to implement the Racial Justice Act, explaining that the work has become ongoing and now includes additional Supreme Court briefing, habeas proceedings, investigations, expert analysis, and data requests. The State Public Defender also presented the AB 625 public defense workload report, which found statewide staffing shortages, caseloads above recommended standards, and major gaps in investigators and support staff. Senators asked about racial bias claims, the volume of data requests, and the impact of Prop. 36, and OSPD said it would provide additional written information. The legal aid panel asked for a $50 million increase to the Equal Access Fund, $20 million to restart homelessness prevention services, and $10 million for health care access work, while also supporting Access to Justice Commission requests for loan repayment assistance, immigrant family preparedness services, and innovation grants. Witnesses described legal aid as homelessness prevention and cited examples involving eviction defense, domestic violence survivors, and immigration detention cases. Los Angeles Superior Court Presiding Judge Sergio Tapia discussed eviction data, low tenant representation, and court pilots in Compton and at Stanley Mosk that combine mediation, rental assistance, and legal help. Senators asked for service maps, outreach materials, and more detail on funding needs and federal funding losses. For the Judicial Branch overview, the Judicial Council and trial court representatives supported the Governor’s proposed budget, including $70 million for trial court operations, $21.7 million for employee health and retirement costs, and funding for appellate counsel, case processing, and courthouse construction. They said rising costs, staffing retention, and interpreter shortages continue to strain the courts, and described efforts to reallocate interpreter funds and recruit hard-to-find languages such as Mixteco. Senators pressed the branch and the Department of Finance on courthouse facilities, noting that the long-term need is far larger than the current budget proposal; Finance said the branch’s facility needs were estimated at about $22.5 billion over 10 years to start 68 projects and $29.4 billion to complete the remaining projects. The committee requested follow-up information on facilities, judgeships, and interpreter needs.

Transcript Highlights:

• the operational overhead costs for security guard employers, and thus the costs to Washington clients
• The increased compensation costs, combined with the other costs for employers in the bill related to
• Significant labor cost increase.
• to their operations.
• Of the additional cost to their operations.

Summary: The Labor and Workplace Standards Committee held public hearings on three bills. HB 2524 would create a State Security Guards Industry Standards Board within L&I to set minimum standards for security guard pay, leave, benefits, and training, funded in part by a $25 transfer from security licensing fees. The bill’s sponsor and labor supporters said it would professionalize the industry, improve safety, and address high turnover and inadequate training. Security workers described unsafe conditions, retaliation, and being expected to handle crises without enough support. Opponents from business and security companies argued the bill duplicates existing licensing and training rules, would raise costs, and gives too much authority to an unelected board; L&I said it had administrative concerns about timing and fee handling. The hearing on HB 2524 was then closed. HB 2513 would change plumbing license suspension rules by keeping the current three-infractions-in-three-years standard for residential work, while creating a five-infractions-in-five-years standard for non-residential plumbing violations. The sponsor and supporters from mechanical contractors and labor said repeat violators undermine safety and fair competition, and that the bill gives L&I a stronger enforcement tool against bad actors in commercial work. Several plumbing contractor groups opposed the bill as written, focusing on a new subsection they said was vague and could create an undefined corrective process or overly broad discretion for L&I; they asked that the subsection be removed or the bill be delayed for more stakeholder work. L&I requested an effective date of January 1, 2027 to allow time for rulemaking. HB 2611 would reduce the standard workweek from 40 hours to 32 hours starting January 1, 2028, and would also change paid sick leave accrual from one hour per 40 hours worked to one hour per 32 hours worked. The sponsor and labor supporters said a shorter workweek would improve work-life balance, reduce burnout and turnover, and could increase productivity, citing examples from San Juan County and other places. Business, hospitality, grocery, construction, agriculture, and janitorial representatives opposed the bill, saying it would raise labor costs, reduce hours and flexibility, complicate scheduling, and hurt industries with thin margins or seasonal demands. The committee heard no votes or final action on HB 2611 before closing the hearing and ending business for the day.

Transcript Highlights:

• and maintenance and critical dredging costs. $4 million over the next three fiscal years for those operation
• and maintenance and critical dredging costs.
• cost.
• We are paying that cost right now.
• We are paying that cost right now.

Summary: The Assembly Budget Subcommittee heard the administration’s spending plan for Proposition 4’s climate smart agriculture and biodiversity chapters, along with related trailer bill language. CDFA outlined proposed funding for existing programs such as SWEEP, Healthy Soils, Urban Agriculture, and invasive species work, plus new or phased-in programs including year-round and mobile farmers’ markets, tribal food sovereignty, and regional farm equipment sharing. The Department of Conservation described funding for the California Farmland Conservancy Program and Working Lands and Riparian Corridors Program, while the Department of Finance and LAO discussed pending allocations and generally found the overall approach reasonable, though LAO suggested the Legislature may want more statutory guidance and reporting, especially for new programs. Members focused on implementation details, equity, and accountability. Questions covered how programs would serve vulnerable and disadvantaged communities, whether new solicitations would be reopened for previously oversubscribed grants, how outcomes are tracked, and how to structure guidance for new programs such as farm equipment sharing. The chair emphasized that the Legislature wants clearer direction on program design and noted that AB 2313 should guide implementation of the regional farm equipment sharing allocation. The committee also discussed the administration’s request to directly appropriate bond funds to departments and to exempt bond program guidelines from the Administrative Procedures Act; LAO supported the APA exemption with possible legislative guardrails for public notice and comment. The committee then heard on the farm-to-school proposal, with CDFA requesting $24.9 million General Fund for incubator grants, technical assistance, and network support. CDFA said the program has reached nearly half of California schoolchildren and has shown strong demand and positive evaluation results. LAO supported the core program but recommended rejecting the $3 million technical assistance component as too broad and suggested the Legislature consider using Proposition 98 for some of the funding. Members debated that point, with some expressing concern about using General Fund dollars for a new discretionary request during a tight budget year. The biodiversity and nature-based solutions chapter included funding for the Wildlife Conservation Board, state conservancies, and tribal nature-based solutions. WCB described major recent investments and proposed projects tied to 30 by 30, habitat restoration, tribal partnerships, and public access. Members raised concerns about long-term stewardship, the size of the WCB allocation, and whether the Legislature should receive more detail on how funds will be distributed. The committee also heard requests for Bolsa Chica wetlands maintenance and Rincon Island decommissioning funding from the State Lands Commission, with members questioning long-term liability, remediation costs, and the role of private oil operators. No votes were taken, and the hearing ended with public comment from stakeholders largely supporting the APA exemption, farm-to-school funding, biodiversity investments, and related conservation programs.