Transcript Highlights:

• So we would we think we're close to releasing our 18 to mitigation credit.
• How do what can I say to them of something we could be doing to mitigate the excessive increases they've
• I think mitigation is is a good thing to do.
• If we could, I would love to explore a condom mitigation credit program that would give some real direction
• It can pay a 10 grand this month instead of 15 and then we have a natural disaster comes back.

Transcript Highlights:

• sales and use tax rebates; provide for rebates for lodging services and meals for persons performing disaster
• : contractors, private, and direct solicitations for residential property owners during declared disasters
• : contractors, private, and direct solicitations for residential property owners during declared disasters
• Representative Perolt: unmanned aircraft systems; duties of law enforcement officers; interception mitigation
• Representative O'Perolt: unmanned aircraft systems; duties of law enforcement officers; interception mitigation

Summary: The House convened with a quorum, received and accepted multiple resignation notices from members representing Districts 37, 39, 60, 69, 97, and 100, and then recognized the election and qualification of the members-elect who filled those vacancies: Doyle Boudreau, Reese Broussard, Chasity Verrett-Martinez, and Edwin Murray. Each member-elect was sworn in, and the House also appointed committees to notify the Senate and the governor that it was ready to conduct business for the 2026 regular session. The chamber then handled a large number of procedural actions related to prefiled legislation. By motion and without objection, the House suspended rules to refer prefile bills to committee and introduced a broad slate of House bills and resolutions. Topics included the state budget and appropriations, retirement system changes, carbon capture and sequestration, criminal justice and bail, public safety, education, health care, local government matters, transportation, and several memorial or commemorative resolutions. Several resolutions and bills were noted as lying over, and some prefiled bills were withdrawn from the files. The House also received a Senate message that SCR 1 had been adopted, and the resolution was taken up without objection. The chamber then recessed for a joint session with the Senate to hear the governor’s address and a presentation honoring Technical Sergeant Adam W. Brister with the Distinguished Flying Cross. In his remarks, Governor Jeff Landry highlighted his administration’s priorities, including education, tax reform, workforce development, health and nutrition, insurance reform, transportation infrastructure, fiscal discipline, and criminal justice reform, while urging support for his agenda and several related bills and constitutional amendments.

Transcript Highlights:

• The second priority was to understand and mitigate retail gasoline price spikes.
• We decided we wanted to have them put storage on the side in case there's disaster.
• We have a history of earthquakes and natural disasters.
• We have a history of earthquakes and natural disasters.
• It could mitigate gas price shortages and gas price spikes.

Summary: The Assembly Committee on Utilities and Energy held its annual oversight hearing on the transportation fuels sector, focused on California’s fuel transition, the announced refinery closures by Phillips 66 and Valero, and the potential effects on supply, prices, and the broader fuel system. Committee leadership said the state needs a system-wide transition plan rather than a piecemeal approach, and state witnesses from CARB, the CEC, and DPMO described the fuel market as a complex, interconnected ecosystem involving crude production, refining, storage, imports, and delivery. They emphasized that declining gasoline demand from EV adoption is occurring alongside shrinking in-state refining capacity, which could increase volatility and price spikes if not managed carefully. CARB Chair Liane Randolph reviewed the state’s climate and air-quality programs, including AB 32, SB 32, the 2022 scoping plan, the low-carbon fuel standard, and vehicle emissions rules. She said these policies have reduced emissions substantially but that California still faces major ozone and PM2.5 problems, especially in disadvantaged communities. Randolph also said federal actions challenging California waivers could complicate the state’s clean-air efforts, and she noted that while liquid fuels will still be needed in some sectors, the state must continue reducing fossil fuel dependence while protecting public health. CEC Vice Chair Siva Gunda and DPMO Director Ty Milder presented data on gasoline demand, refinery throughput, crude imports, and price differentials. Gunda said the Legislature’s special-session laws gave the agencies transparency and planning tools, and that the CEC is developing a fuels transition plan while evaluating whether any regulatory tools should be used. Milder previewed DPMO findings that Californians have paid a long-running “mystery gasoline surcharge” averaging 41 cents per gallon since 2015, with higher margins concentrated in branded gasoline and among vertically integrated firms. He said the data show a concentrated market with some refiners doing well and others struggling, and that DPMO will continue investigating price behavior, competition, and supply risks. Members pressed the witnesses on whether state regulations contributed to refinery exits or higher prices, and on whether the agencies had adequately analyzed consumer costs. Witnesses said they had not yet implemented the new permissive tools from SB X1-2 and AB X2-1 because they were still assessing risks and benefits, and they stressed that refinery closures and capital decisions are driven by broader market conditions as well as regulation. No vote was taken; the hearing was informational, with the committee seeking updates and urging the agencies to develop a practical transition strategy that balances affordability, reliability, climate goals, and worker/community protections.

Transcript Highlights:

• None of us want to be able to see that mitigated. We like our discounts.
• None of us want to be able to see that mitigated. We like our discounts.
• And so, None of us want to be able to see that mitigated.
• And this is, I think, an appropriate response to the natural disaster not to create negative outcomes
• Extreme heat results in more deaths in the United States than all other disasters combined.

Summary: The committee heard testimony on several bills. AB 416 would allow emergency room physicians to initiate 5150 mental health holds, with supporters saying it would reduce emergency room bottlenecks and speed care for patients in crisis. County and behavioral health representatives opposed the bill, and some members raised broader concerns about the 5150 system and juvenile placements. The bill was ultimately approved on a do-pass as amended vote. AB 446, the Surveillance Pricing Act, drew extensive testimony. The author and supporters argued it would prohibit businesses from using personal data to charge different prices for the same product or service, describing the practice as discriminatory and exploitative. Business and industry groups opposed the bill, warning that its language was too broad, could affect discounts and loyalty programs, and would create litigation risk through a private right of action. After discussion about enforcement and possible amendments, the bill passed on a do-pass motion. AB 632 would give local governments a faster way to collect penalties for serious code violations, including unsafe housing, fire hazards, and illegal cannabis activity, by allowing certain fines to become money judgments and clarifying lien authority. It had support from county and city groups and no opposition was voiced in the hearing; the bill passed as amended. ACA 7, a constitutional amendment intended to clarify and limit misuse of Section 31A, also moved forward after brief support testimony. The committee then took up AB 649, which would extend protections for businesses that proactively obtain certified access specialist inspections and fix accessibility violations; the author, a small business owner, and others testified in support, while disability rights groups moved to neutral after amendments. Members discussed the balance between access enforcement and reducing predatory litigation, and the bill was still under consideration as the transcript ended.

Transcript Highlights:

• and Santa Rosa counties, it directs the FHFC to establish and oversee the vacancy relief and risk mitigation
• vacancy relief trust fund to hold a vacant dwelling for a veteran for up to 45 days, and to the risk mitigation
• vacancy relief trust fund to hold a vacant dwelling for a veteran for up to 45 days, and to the risk mitigation
• Senate Bill 1604 creates the vacancy relief and risk mitigation trust fund within the Florida Housing
• First dollars out should go toward Floridians, whether they're stuck by an act of God or war or disaster

Bills: S0006 , S0026 , S0206 , S0532 , S0576 , S1012 , S1110 , S1178 , S1192 , S1758 , S1760 , S7046 , S7048

Committee: Senate Appropriations

Keywords: child welfare, negligence, settlement, injury compensation, Department of Children and Families, motorcycle accident, compensation, Department of Transportation, legal claim, autism, autism spectrum disorder, ASD, special education, exceptional student education, ESE, teacher preparation, educator certification, micro-credential, loan forgiveness, student loan repayment

Transcript Highlights:

• Buckley: Give me an example of a mitigation project.
• Representative Garcia: are not mitigating?
• I know there's a lot of districts that would love to have mitigation programs.
• So is that their only form of mitigation, is collecting on...
• Representative Garcia: export fees or funding for mitigation?

Committee: House Natural Resources

Transcript Highlights:

• And if you look at the Coastal Commission, my experience is having a disaster-prone district that a sewer
• And I think they are misrepresented because they step up after disasters and approve things.
• That is within, and after disasters and approve things. That is within their ethic.
• Members, SB 1036 would provide clarity under the Mitigation Fee Act by requiring that all jurisdictions

Transcript Highlights:

• Bernard and had worked on disaster declaration efforts after a spillway opening contaminated oyster leases
• dealing with my now new colleague, Representative Sawyer, when we're working on trying to get a disaster
• heavily engaged in this issue, fighting for our oyster men in Washington, with NOAA, pushing for that disaster
• Edwards said the state has taken steps to mitigate its water issues but needs additional authority to

Summary: The committee met with a quorum and took up a series of coastal, seafood, wildlife, and environmental measures. House Bill 851 by Rep. Ilg, which adds intentional mass balloon releases to the gross intentional littering statute, drew support from agriculture, wildlife, and environmental groups because of impacts on livestock, wildlife, power lines, and waterways; members clarified it targets organized intentional releases, not accidental releases by children, and it was reported favorably. House Bill 652 by Rep. Broe adding a non-voting Department of Agriculture appointee to the Oyster Task Force was also reported favorably, as were House Bills 349 and 588 by Rep. Domain to expand the imported seafood safety fund’s uses and add oyster, crab, and finfish representation to the Seafood Safety Task Force. House Bill 721 by Rep. Kerner setting a 5:30 a.m. shrimp trawling start time in certain bays, House Bill 857 clarifying labeling rules for commingled imported and domestic seafood, House Bill 669 expanding state property use for Grand Isle oyster research, and House Bill 889 creating bulk tagging for oysters were each supported by industry and agency witnesses and reported favorably. House Bill 688 by Rep. Ogeron adding Atlantic tarpon to the definition of saltwater game fish was backed by the Louisiana Wildlife Federation and fishing guides and was also reported favorably. The committee spent significant time on House Bill 653 by Rep. Beham, which would require one of two United Commercial Fishermen appointees to the Oyster Task Force to be a St. Bernard Parish resident. Rep. Beham argued the parish deserves a guaranteed voice because of oyster industry impacts from freshwater intrusion and the BP spill, while opponents including the Oyster Task Force chairman said the parish-specific requirement would make vacancies harder to fill and should be worked out through the task force or by amending another bill. After debate, an amendment was adopted, but the bill itself ultimately received a favorable report. Testimony throughout the meeting emphasized the economic and cultural importance of Louisiana seafood, the need to combat imported seafood fraud, and the role of oyster cultivation and shrimping in coastal communities. House Resolution 20 by Rep. McCormick, urging the Department of Conservation and Energy to study industrial water use from Caddo Lake, prompted a broader discussion about data centers and water withdrawals. Department witness Monique Edwards explained current state limits on regulating surface water withdrawals and said more authority may be needed for comprehensive water management; committee members asked for a future departmental presentation on data center water use. The resolution was reported favorably. At the end of the meeting, Rep. Sawyer moved to adjourn, and the committee adjourned without objection.

Transcript Highlights:

• This bill includes key efforts to mitigate and respond to climate change.
• our colleague from Santa Clarita, includes compensation. for specified costs and losses related to disaster
• prioritize IHSS workload to avoid future penalties, and creates better preparedness to administer disaster
• CalFresh so that we can provide critical food benefits during emergencies and natural disasters.

Transcript Highlights:

• This is mainly money that's going to the Office of Emergency Services for disaster response and recovery
• $2.4 billion is money that is mainly for environmental and protection programs as well as natural disasters
• billion in COVID-19 stimulus funding awarded to major state programs. coordinating COVID-19 direct disaster
• And from our organization's perspective, the Budget Center, our main goal should be to prevent or mitigate

Transcript Highlights:

• Permanent daylight saving time would be a disaster, just as it always has been.
• Anti-trust litigation, Senate Bill 2417 mitigates costly discovery requests by establishing that investigatory

Bills: SB1888 , SB3003 , SB2417 , SB2459 , SB3055 , HB1393 , HB2884 , SB2943

Committee: Senate State Affairs

Transcript Highlights:

• something that has never been done before for a pretty large geographic area after a significant disaster
• they agree with it, whether it is um... ...taking into account public trust resources and adequate mitigation
• Um, but one thing that sort of mitigates that is that when there's an environmental impact statement,
• There are some disasters coming down the pike, and we definitely need Haima on that.
• So just keep that in mind with the disasters that happened in North Carolina in the last year or two.

Transcript Highlights:

• discuss reserves at a high level and illustrative level, including how reserves can help the state mitigate
• discuss reserves at a high level and illustrative level, including how reserves can help the state mitigate
• By emergency, do you mean for like natural disasters?
• spend the next two years trying to sue whoever we can find that we can try to pin the cause of the disaster
• spend the next two years trying to sue whoever we can find that we can try to pin the cause of the disaster

Summary: The Senate Budget and Fiscal Review Committee held an informational hearing on California’s Budget Stabilization Account, or Rainy Day Fund, with opening remarks focused on the state’s long history of revenue volatility and the role reserves play in smoothing downturns. The Legislative Analyst’s Office explained that California’s personal income tax base is highly volatile because high-income earners’ income is tied to capital gains and other fluctuating sources, and that Proposition 2’s current reserve rules set aside 1.5% of General Fund revenues plus a share of excess capital gains, but cap constitutional deposits at 10% of General Fund taxes. The LAO said its analysis evaluates reserve policy over decades and found the current system would cover about 30% of funding shortfalls in a 90th-percentile downturn scenario over 50 years, which is an improvement over no reserve but still inadequate. The LAO recommended raising the reserve cap substantially, ultimately to 50% by 2055, with an immediate increase to 20% and gradual increases thereafter. It also suggested either replacing Proposition 2’s deposit formulas with broader rules that capture volatility across all tax revenues or, alternatively, depositing all excess capital gains rather than only a share. The Department of Finance said the Governor’s prior proposal similarly sought to raise the cap from 10% to 20% and exclude reserve deposits and withdrawals from the state appropriations limit, arguing those two constraints limited the state’s ability to save during recent revenue surges. Other panelists and members discussed whether reserves should be paired with broader structural changes, including unemployment insurance reform, safety-net funding, infrastructure reserves, and the projected surplus temporary holding account. The California Budget and Policy Center supported reserve reform but emphasized balancing savings with current needs and noted other tools such as revenue increases, borrowing from special funds, and the new surplus-holding account. Members debated the causes and effects of Proposition 13, the appropriations limit, business departures, and whether reserve policy should be more directly tied to protecting Californians’ access to health care, food assistance, child care, and other core services. No votes or formal actions were taken, as the hearing was informational only.

Transcript Highlights:

• I believe the amendment mitigates any sort of impact that I know some are— that you’re referring to.
• I don't—Miami-Dade County government is an absolute disaster. I'll say it on the Florida Channel.
• It's an absolute disaster.
• I don't, Miami-Dade County government is an absolute disaster. I'll say it on the Florida Channel.
• It's an absolute disaster.

Summary: The Committee on Appropriations took up SJR 2-F, a proposed constitutional amendment to reduce property taxes by lowering assessment caps on non-homestead property, expanding homestead exemptions over time, and allowing local governments to increase exemptions further. The sponsor argued the measure would provide broad property tax relief while requiring revenues to be directed to core services such as public safety, education, infrastructure, and natural resource projects, with a trust fund intended to help local governments transition. Senators raised concerns about the lack of a fiscal score, the effect on counties, cities, school districts, and special districts, and whether the proposal would shift costs to fees or other taxes. Several amendments were debated. Senator Polsky’s amendment to explicitly authorize user fees and non-ad valorem assessments to offset lost property tax revenue failed. Senator Avila’s amendment broadening permissible uses of ad valorem revenue to include county constitutional officers and other expenditures approved by local governing bodies was adopted after debate over whether the bill would otherwise underfund essential functions. Senator Smith’s sunset amendment, which would have made the constitutional changes expire after five years, failed. Senator Smith’s amendment to allow tourism development tax revenue to support public safety and education also failed. Senator Graal’s amendment removing the constitutional trust fund language was adopted, with supporters arguing the Constitution should not promise an unfunded account. Additional late-file amendments were considered. Senator Berman’s proposal to change the ballot title to more neutrally describe the measure as affecting property taxes and local community service reductions failed. Senator Trumbull’s amendment removing school board ad valorem taxes from the proposal was adopted, preserving school taxes. Senator Smith’s amendment narrowing the non-homestead assessment cap reduction to small businesses only failed. The committee then returned to the bill as amended and continued questioning the sponsor about eligibility, fiscal impacts, and whether the proposal could lead to local governments offsetting lost revenue through special assessments or other charges.

Transcript Highlights:

• Projects like the International Gulf Parkway Flood Mitigation Project in St.
• We created this fund in 2022 for natural disasters, and the scope of that has crept a little bit, and
• We created this fund in 2022 for natural disasters, and the scope of that has crept a little bit, and
• Members, I would submit to you that the definitions of a man-made disaster and a technological disaster
• Members, I will submit to you that the definitions of a man-made disaster and a technological disaster

Transcript Highlights:

• My goal, as stated when the bill was filed, was to ensure that we are properly mitigating the harm to
• repeal of provisions. authorizing certain taxing units in the following year, the year in which a disaster
• repeal of provisions authorizing certain taxing units in the year following the year in which a disaster
• This is a great amendment that includes additional expenses related to disasters. I move. Ms.
• counties in Texas, making homebound deliveries to veterans, seniors, and others, and for emergency disaster

Bills: HB200 , HB541 , HB1803 , HB30 , HB175 , HB249 , HB721 , HB851 , HB897 , HB 1128 , HB1904 , HB1916 , HB5560 , HB3071 , HB5627 , HB5435 , HB3913 , HB2921 , HB2695 , HB2688 , HB3045 , HB3483 , HB3673 , HB4213 , HB4226 , HB783 , HB4373 , HB4735 , HB5155 , HB5057 , HB4984 , HB4944 , HB4813 , HB5339 , HB5196 , HB5033 , HB4853 , HB3486 , HB4211 , HB74 , HB4670 , HB4730 , HB4743 , HB4603 , HB4463 , HB3892 , HB4139 , HB4752 , HB4520 , HB4517 , HB4486 , HB4437 , HB4426 , HB4396 , HB4263 , HB3487 , HB3418 , HB2284 , HB2266 , HB2229 , HB4912 , HB2189 , HB4506 , HB5269 , HB5224 , HB5195 , HB3317 , HB4166 , HB3947 , HB3358 , HB3370 , HB4438 , HB3745 , HB3602 , HB3697 , HB2001 , HB1968 , HB3371 , HB3909 , HCR7 , SB1744 , SB1364 , SB1316 , HB2026 , HB3302 , HB3368 , HB1639 , HB5652 , HB4655 , HB5654 , HB5658 , HB5656 , HB4894 , HB4996 , HB5088 , HB5650 , HB4464 , HB3751 , HB5665 , HB5661 , HB 1237 , HB2802 , HB5437 , HB2703 , HB5666 , HB5667 , HCR113 , HCR86 , SB2196 , SB463 , SB856 , SB1245 , SB1169 , SB509 , SB985 , SB305 , SB552 , HB1535 , HB 123 , HB1804 , HB426 , HB1773 , HB1871 , HB2035 , HB2492 , HB1411 , HB4753 , HB4666 , HB4529 , HB1499 , HB1610 , HB2028 , HB1506 , HB886 , HB3546 , HB796 , HB223 , HB3556 , HB2448 , HB4638 , HB 111 , HB180 , HB 1027 , HB 1178 , HB610 , HB 1277 , HB1615 , HB1620 , HB5342 , HB4885 , HB4751 , HB4530 , HB4488 , HB2149 , HB2071 , HB2282 , HB2248 , HB2243 , HB2522 , HB2310 , HB2513 , HB2300 , HB1902 , HB1813 , HB3719 , HB4284 , HB3743 , HB3778 , HB5153 , HB5147 , HB4877 , HB4850 , HB3261 , HB3005 , HB3033 , HB2849 , HB2967 , HB3531 , HB1768 , HB333 , HB2914 , HB2613 , HB3717 , HB3704 , HB2697 , HB3801 , HB3099 , HB3488 , HB3477 , HB3466 , HB3396 , HB3469 , HB2594 , HB2776 , HB2564 , HB2298 , HB5331 , HB5646 , HB5247 , HB5323 , HB4384 , HB3896 , HB4014 , HB3627 , HB3594 , HB2524 , HB510 , HB561 , HB5111 , HB5446 , HB 1181 , HB3963 , HB2785 , HB1661 , HB2460 , HB200 , HB541 , HB1803 , HB30 , HB175 , HB249 , HB721 , HB851 , HB897 , HB 1128 , HB1904 , HB1916 , HB5560 , HB3071 , HB5627 , HB5435 , HB3913 , HB2921 , HB2695 , HB2688 , HB3045 , HB3483 , HB3673 , HB4213 , HB4226 , HB783 , HB4373 , HB4735 , HB5155 , HB5057 , HB4984 , HB4944 , HB4813 , HB5339 , HB5196 , HB5033 , HB4853 , HB3486 , HB4211 , HB74 , HB4670 , HB4730 , HB4743 , HB4603 , HB4463 , HB3892 , HB4139 , HB4752 , HB4520 , HB4517 , HB4486 , HB4437 , HB4426 , HB4396 , HB4263 , HB3487 , HB3418 , HB2284 , HB2266 , HB2229 , HB4912 , HB2189 , HB4506 , HB5269 , HB5224 , HB5195 , HB3317 , HB4166 , HB3947 , HB3358 , HB3370 , HB4438 , HB3745 , HB3602 , HB3697 , HB2001 , HB1968 , HB3371 , HB3909 , HCR98 , HCR92 , HCR126 , HCR7

Keywords: juvenile offenders, parole eligibility, youth justice, criminal justice reform, inmate rehabilitation, direct patient care, healthcare, physicians, medical services, insurance regulation, dentist, dental hygienist, interstate practice, licensure, compact privilege, public health, military members, disaster relief, tax rates, local government

Transcript Highlights:

• The biggest piece of that is with military affairs, the response to emergencies and FEMA disaster match
• , the response to emergencies and affairs, the response to emergencies and FEMA<00:12:52.880><c> disaster
• I think that was FEMA disaster match.
• If those admin costs come down uh then we can mitigate that increase some. Any thoughts?
• </c><01:02:26.960><c> Any</c> can mitigate that increase some. Any can mitigate that increase some.

Summary: The committee first established a quorum, approved the July minutes, and recognized Jennifer Hayes of the Department of State Budget Director for her retirement and long service. Secretary Hicks then presented a review of fiscal year 2025 closeout for the general fund and road fund, explaining that the general fund ended with a $313 million surplus and the road fund with a $61 million surplus. He attributed the general fund result to strong corporate income and LLC tax receipts, investment income, and lower-than-budgeted spending, while noting that individual income tax and sales tax underperformed estimates. He also described how the general fund surplus was allocated, with $62 million used for necessary government expenses and $251 million deposited into the budget reserve trust fund, which remained at historically strong levels. For the road fund, he said the surplus would be deposited into the Department of Highways construction account, and he highlighted record motor vehicle usage tax receipts despite lower motor fuels tax revenue due to a rate decline. Members asked questions about the pass-through entity tax, delayed filing deadlines, THC beverage sales, and income tax collection from undocumented workers. Hicks said the pass-through entity tax remains difficult to model because of timing issues and the first year’s unusual filing pattern, and that staff are still working with the Department of Revenue and other states to improve forecasting. He said the delayed filing deadline likely would not require a major restatement and that any related receipts would still be counted in fiscal 2026. On THC beverages, he said the issue would be considered in the next forecasting cycle. On the undocumented-worker question, he said withholding may capture some of the revenue but referred broader collection efforts to the Department of Revenue. The committee then shifted to an overview of the federal reconciliation act’s potential impact on the next biennial budget, with Hicks and Commissioner Lisa Dennis focusing on Medicaid and SNAP. Hicks said the Congressional Budget Office estimated roughly $900 billion in federal savings over 10 years, driven in part by work or community engagement requirements for the Medicaid expansion population and limits on state-directed payments. He emphasized that CMS still must issue regulations to define how the state-directed payment reductions will be calculated, making the exact fiscal impact uncertain. He referred members to a prior Medicaid Oversight Advisory Board presentation for more detail, and the discussion remained informational with no votes or formal actions taken on the federal changes.

Transcript Highlights:

• If they do use a contested case process, you know, that would mitigate some of our concerns regarding
• If they do use a contested case process, you know, that would mitigate some of our concerns regarding
• If they do use a contested case process, you know, that would mitigate some of our concerns regarding
• And as COVID and other disasters point out, we need farmland.
• And as COVID and other disasters point out, we need farmland.

Summary: The committees heard several housing-related bills and resolutions. HB 1298 HD3 would create a government employee housing revolving fund and a government employee 99-year leasehold rent-to-own program; testimony was generally supportive from HHFDC, labor groups, and the Maui Chamber, with the Tax Foundation and Budget and Finance raising concerns about the revolving fund. The committees recommended passage with non-substantive amendments for clarity and consistency, and the motion was adopted. HB 741 H2, which would exempt certain affordable housing projects financed by a certified nonprofit CDFI from prevailing wage requirements, drew support from housing advocates and opposition from several construction unions; the chairs said they were concerned about the labor objections and deferred the measure, with the labor committee agreeing to defer it as well. The housing committee then took up HB 417 HD1, which creates a housing efficiency and innovation subaccount in the rental housing revolving fund and allows HHFDC to transfer funds between the subaccount and the main fund without legislative approval. Testimony was largely supportive. The chair described a series of amendments, including changing the funding-efficiency standard, adding perpetual affordability language, allowing any land tenure type, broadening eligible financing tools, adding priority criteria for mixed-income projects and government-employee projects, and inserting blank appropriations tied to a requested $75 million per year and a $75 million subaccount appropriation for the HCDA 99-year leasehold project. The committee recommended passage with amendments, and the recommendation was adopted. HB 422 HD1, which would repeal school impact fees and move remaining balances to the school facilities special fund, drew broad support from housing and taxpayer groups and opposition from the Department of Education and some individuals. The School Facilities Authority and DOE argued the current system had not produced enough usable land or school sites and suggested narrowing the exemption to government housing projects’ construction costs instead of repealing the fee entirely. Members pressed DOE and SFA on how much land had actually been obtained and whether the fee had been effective; the discussion highlighted concerns about unused balances, school overcrowding, and the role of the Land Use Commission and county zoning in securing school sites. The committee did not take final action on the bill in the portion shown. The committee also heard STR 60/SR 45, urging HHFDC to develop a plan to meet housing demand, and STR 77/SR 60, addressing continued eligibility for housing credits for certain projects after repeal of Act 31; both sets of resolutions had HHFDC support, with DHHL supporting STR 77/SR 60 and Johnny May Perry opposing both.

Transcript Highlights:

• This is a direct violation of the Mitigation Fee Act and Proposition 26.
• prior to a disaster occurring to help facilitate the expeditious and orderly... ...prior to a disaster
• recovery efforts, akin to the former redevelopment agencies, but specific for disaster recovery. ...
• recovery efforts, akin to the former redevelopment agencies, but specific for disaster recovery.
• AB 2385 proposes valuable changes in law to support communities with recovery from future disasters,

Summary: The committee hearing covered a long agenda of local government and housing-related bills, with the chair repeatedly noting the committee was operating without a quorum for much of the meeting. Several measures were heard with no opposition, including AB 2639 on Merced County flood control coordination, AB 1788 on allowing best-value contracting for general law cities and the San Gabriel Valley Council of Governments, AB 2058 on reducing duplicative permitting and inspection costs for factory-built housing, AB 2576 on clarifying historic resource protections in a housing law, AB 2568 on increasing the compensation cap for water district board members, AB 2224 on updating county recorder fees and requiring electronic recording, AB 2469 on water-supply review and cost responsibility for data centers, and AB 2397 on requiring local governments to justify denials of certain housing-finance decisions. Most of these bills were presented as targeted fixes to improve efficiency, reduce delays, or modernize outdated statutes, and the authors generally requested aye votes and noted committee amendments where applicable. The most extended debate centered on AB 1751, which would streamline approval of qualifying townhome projects while setting a $28 hourly minimum wage floor for construction workers on covered private projects. Supporters argued the bill would expand homeownership opportunities, raise wages for largely non-union residential workers, and preserve existing prevailing wage law while adding enforcement tools and developer liability. Opponents, including several building trades and labor organizations, argued it would undercut prevailing wage standards, create a race to the bottom, and potentially affect wage-setting more broadly. Committee members asked detailed questions about land-use barriers, the relationship to prevailing wage, and whether the bill would affect unionized work; the author and supporters responded that it applies narrowly to private for-sale townhome projects and does not alter prevailing wage requirements. AB 2469 also drew a substantive split. Supporters said data centers should be required to provide water-supply assessments before approval, pay for infrastructure they trigger, and account for impacts on overdrafted groundwater basins and local ratepayers. Opponents from the Chamber of Commerce, Data Center Coalition, counties, and tech groups argued existing law already covers water planning, that the bill imposes unique and burdensome requirements on one industry, and that some reporting provisions could raise security concerns. The author responded that the bill is about front-end planning and local accountability, not daily reporting, and emphasized the hyperlocal strain data centers can place on small water systems. No final votes were taken during the hearing because the committee lacked a quorum, though members repeatedly indicated support or intent to vote aye once a quorum was present.

Transcript Highlights:

• including several adjustments in response to federal House Resolution, or H.R. 1, including funds to mitigate
• Including funds to mitigate the state's CalFresh payment error rate, funds to support local food banks
• wildfire settlements qualifying for relief must be related to federally declared or state-declared disasters
• And I think the work that we've done helped us mitigate some of that concern to the best of our ability
• On behalf of Aurora, high-risk areas to mitigate ignition.

Summary: The Assembly Budget Committee held an informational hearing on the September budget package, which included SB 105 and a series of trailer bills covering health, human services, education, resources, child care, transportation, labor, public safety, housing, revenue, background checks, collective bargaining, and a special election. The Department of Finance described the package as largely technical and clarifying, but also responsive to state and federal changes, especially H.R. 1. Key items included roughly $3.3 billion in Proposition 4 climate and environmental spending, $540 million in discretionary greenhouse gas reduction funds, and major responses to H.R. 1 such as CalFresh error-rate mitigation, food bank support, and Medicaid-related changes. Other notable provisions included vaccine policy flexibility, an Abortion Access Fund, a gender-affirming care program, community college basic-needs and aid changes, CEQA and coastal permit exemptions tied to the 2028 Olympics, invasive mussel prevention funding, a civic media program, labor and pension-related provisions, and special election administration changes. Members raised questions and concerns about several parts of the package. There was support for climate, water, transit, offshore wind, food security, and health investments, but also significant criticism of the lack of cleanup language for SB 131 and its advanced manufacturing exemptions, with multiple members saying promised fixes had not materialized and expressing concerns about tribal consultation, labor standards, and environmental protections. Members also questioned the scale and timing of some Proposition 4 allocations, including fairground upgrades, regional conveyance, and a UC Davis alternative protein research center. The Department of Finance said some programs would roll out over time and that certain funding levels reflected current implementation capacity. The hearing also featured discussion of Bay Area transit financing, with Finance saying SB 105 directs the department and CalSTA to examine loan or other financing options rather than immediately providing loans. Members and public commenters also discussed the state’s response to H.R. 1, with advocates supporting food bank, health care, and immunization provisions while warning of ongoing harm to immigrants, foster youth, and other vulnerable groups. Public testimony broadly supported the health, food, water, offshore wind, and golden mussel provisions, while many speakers echoed legislative concerns about SB 131 and urged cleanup action in the next session. No votes were taken because the hearing was informational only, though the chair noted votes on the bills were expected later that night or the next morning.