Transcript Highlights:

• , called a federal single audit.
• We're willing to accept the audit without the federal single audit, so it's no longer going to be under
• We required the first-ever audit, which is a system organizational controls audit of SHARE.
• And so we're thinking about bifurcating an audit report review team with audit services because, again
• As I mentioned, we've had clean audits.

Transcript Highlights:

• We have things like the child credit. We do have my favorite, the Earned Income Tax Credit.
• This bill was this tax credit, cost-of-living tax credit, was modeled after the middle-class tax credit
• SB 1120 will extend the California Competes Tax Credit program through 2035 and allow credits to be refundable
• Because such companies have no tax liability against which to use Cal Competes credits, the credits are
• These credits are not refundable.

Summary: The committee heard Senate Bill 1277, which would create a California Cost of Living Tax Credit modeled on the 2022 middle-class tax refund to provide refundable relief to low- and middle-income Californians facing high housing, fuel, energy, and general living costs. Senator Grove and supporters, including the California Policy Center and some local government representatives, argued the bill would put direct relief into the hands of working families. Opposition came from the California Tax Reform Association and the California Teachers Association, which said California already has progressive tax credits and that the proposal would be costly to the General Fund and reduce money for schools and other services. After extended debate, the bill was not advanced; a roll call vote on a motion to pass it to Appropriations failed 1-4, and the bill was held/fails on the floor with a request for reconsideration noted. The committee then heard SB 1287, which would create a capped tax credit to encourage private investment in short-line railroad infrastructure. The author and rail industry witnesses said the measure would improve safety, reliability, emissions, and freight movement, especially for rural communities and agriculture, and that it was a public-private partnership rather than a handout. Opposition from CTA and the California Tax Reform Association argued a direct grant program would be preferable to a tax credit. The bill was accepted with committee amendments and placed on call without a final vote in the transcript. Members also considered SB 1407, which would fully exempt military retirement pay and surviving spouse benefits from state income tax, increasing the prior partial exemption. The author, State Treasurer Fiona Ma, and veterans’ groups said the change would help retain veterans in California, support local economies, and align California with most other states. CTA and CTRA opposed on General Fund grounds. The committee approved the bill on a due-pass-as-amended motion to the Committee on Military and Veterans Affairs, with the roll call showing support and the bill placed on call. Later, the committee heard SB 1349, directing the Legislative Analyst’s Office to review major tax expenditures and evaluate their goals, beneficiaries, and effects on revenues and Proposition 98 funding. CTA, CTRA, and several local government and labor supporters backed the bill as a way to improve accountability for roughly $94 billion in annual tax expenditures. The bill was accepted with committee amendments and placed on call. The committee also heard SB 1078, authorizing Santa Cruz County to ask voters for a temporary half-cent sales tax to help fund health care and safety-net services amid federal cuts; it was placed on call. SB 1120, extending the California Competes Tax Credit through 2035 and making it refundable for certain strategic industries, received strong support from business and manufacturing groups and was passed on a due-pass-as-amended motion to Appropriations. Finally, SB 1275, which would replace the state sales tax on vehicle purchases with a vehicle license fee structure intended to increase federal deductibility for Californians, was passed 4-0 as amended to the Committee on Transportation.

Transcript Highlights:

• They're actually probably paying for the credits for it, right?
• paying for the credits for it, right?
• They have to have their continuing education credits. Thank you.
• </c> have their continue education credits. have their continue education credits.
• You their continuing education credits.

Committee: Senate Executive Departments and Administration

Keywords: 1191, senate, all

Transcript Highlights:

• So they may be taking 6 credit hours or 9 credit hours, but they're not full-time.
• As I mentioned before, we are looking at that data, especially when we look at CTE audit compliance.
• A question that I had was concerning clock hours versus college credit.
• So, do you give college credit? >> Okay.
• There is a conversion for the number of clock hours to credit hours.

Keywords: 999, senate, all

Transcript Highlights:

• </c><00:25:20.559><c> and</c> management and supervision audit and management and supervision audit and
• So a credit union, some credit unions in some states, I understand, can own assets that are not credit
• The federally insured credit unions can't own there.
• The other thing is auditability, transparency.
• </c><01:42:37.440><c> cards</c> between us same thing with credit cards between us same thing with credit

Keywords: 1189, house, all

Summary: The meeting began with roll call and introductions of commission members and guests, followed by approval of the agenda and a motion to approve the February 10 minutes with a correction clarifying that one quoted statement was misattributed. The commission then moved into presentations. The main presentation came from the Conference of State Bank Supervisors on implementation of the federal GENIUS Act for stablecoins. The speaker reviewed the OCC’s recent 367-page proposed rule, noting it raises many open questions and design choices for states, and discussed expected upcoming rulemaking from the FDIC, Federal Reserve, and Treasury. The presentation focused on six areas: permissible issuer activities, reserve assets and redemption, risk management and supervision, treatment of state-qualified issuers, capital/operational backstops, and foreign issuers. It also flagged unresolved issues around Bank Secrecy Act/AML requirements and the meaning of “digital asset service provider” activities. A substantial portion of the discussion addressed yield restrictions, with the presenter explaining the OCC’s broad definition of yield and its rebuttable presumption against issuer-affiliated or related third-party yield arrangements. The speaker said this likely forecloses many existing white-label structures but leaves some room for third-party payments depending on distance from the issuer, and noted ongoing Senate debate over similar provisions. The presentation also covered reserve valuation, liquidity and diversification requirements, redemption timing, and supervisory expectations such as third-party oversight, IT security, exam cycles, and reporting. No additional votes or formal actions were taken beyond approving the amended minutes.

Transcript Highlights:

• It includes changing the calculation of funded credit full-time equivalent students incorporated into
• We take the credit and not the credit when things happen, good or bad.
• As I understand it, it looks like the intent now is to audit the progress that has been made.
• did some funds for the state auditor to come in and do an audit of the previous work that was done.
• their audit authority as needed.

Committee: House Budget

Keywords: 988, house, all

Transcript Highlights:

• </c><00:14:56.440><c> books</c> valuation or closed uh um audited books valuation or closed uh um audited
• </c><01:11:06.440><c> set</c> were struggling to do the audit set were struggling to do the audit set
• 1% of those audit set-aside funds.
• audit uh audit set be a line that says audit uh audit set aside<01:24:45.280><c> when</c><01:24:45.400
• a requirement for audits.

Keywords: 928, house, all

Summary: The committee took up House Bill 2 retirement provisions, focusing on Group Two/Tier B changes in pages 25-39. Jan Goodwin of the New Hampshire Retirement System and deputy chief counsel Mark Kavanaugh explained that the 2025 bill is largely similar to prior versions, but it restores certain pre-2011 benefit rules for Tier B members, including changes to average final compensation and earnable compensation, and it also addresses the annuity multiplier for years of service. Members discussed the tier structure, with Tier A referring to vested members, Tier B to those hired before 11/1/12 who were not vested, and Tier C to later hires. Several members expressed concern that the bill’s purpose was to restore Tier B benefits, not to change Tier A rules or create broader changes affecting newer hires. The retirement system flagged two likely drafting problems. First, it said a provision appears to omit a special-duty/earnable-compensation limitation in the Group Two section, which they believed was a scrivener’s error caused by moving language out of the Group One definition without adding it back for Group Two. Second, they noted the bill’s multiplier language overlaps with changes already enacted in HB 1647, which increased the multiplier for service beyond 15 years for Group Two and carried an estimated $26 million cost. The committee discussed that HB 1647 was originally broader in the House, but the Senate narrowed it to Tier B only. The actuary’s comparison of the 2023 and 2025 HB 2 versions showed the bills are close, but the 2025 version differs in funding and timing. Staff said the 2025 bill appropriates $2.5 million more per year for 10 years, and that, together with updated actuarial assumptions and a larger share of the affected tier having already retired or otherwise left service, results in a larger reduction in unfunded liability than the 2023 bill: about $98.2 million versus $68.5 million. Employer contribution impacts were described as small overall, though the 2025 bill was said to be somewhat more favorable than the 2023 version. Members also questioned why House Bill 1 only funds $5 million in the first year, and staff said that was tied to the governor’s revenue estimate and that the full funding does not begin immediately. No votes were taken in the portion provided; the committee mainly received testimony, asked clarifying questions, and noted that some issues would be addressed in the fiscal note worksheet.

Transcript Highlights:

• Chair, Senator, so LIHTC is the low-income housing tax credit.
• When the initial sunset audit began for our agency about a year and a half ago, I was serving in the
• If a federal program lost, it would be either the federal low-income housing tax credit program.
• And they award tax credits to affordable housing developers.
• You know, I think, and I will say to your credit, I think you are a lovely person.

Committee: Senate Director Nominations

Keywords: 1182, all

Transcript Highlights:

• or savings accounts. and credit unions to offer custodial and credit unions to offer custodial accounts
• </c><01:49:59.199><c> unions,</c> chartered banks and credit unions, chartered banks and credit unions
• Banks or credit credit unions mandated.
• Banks or credit credit unions may<01:50:21.199><c> choose</c><01:50:21.520><c> to</c><01:50:21.679><c
• Just also want to give some credit where credit is due to Representative Bonner and to Representative

Keywords: 1183, house

Transcript Highlights:

• And these were 5 things that came out of a 2019 audit regular state audit because they are state agency
• Not a not a bad audit. Not like findings. You have to correct.
• had to do take into account with for a new forecast and our new funding or a A so the Florida tax credit
• But the big one is what we traditionally called the Florida Tax Credit program.
• So that going forward from 26 27, the credit induced contributions or or use for a couple purposes.

Transcript Highlights:

• The third part of the bill relates to the audit requirement.
• The Waukeva requires common interest communities with annual assessments of $50,000 or more to be audited
• Associations with assessments less than $50,000 are still subject to the audit requirement, but that
• House Bill 2354 increases the threshold that triggers the audit requirement.
• I'm Lissette Cadena on behalf of Washington's credit unions.

Bills: HB2095 , HB2500 , HB2412 , HB2595 , HB2354 , HB2597

Committee: House Civil Rights & Judiciary

Keywords: public safety, vulnerable users, pedestrians, protected classes, transportation, charitable organization, charity, nonprobate transfer, beneficiary designation, life insurance, retirement account, payable on death, POD account, transfer on death, TOD, financial institution, insurance company, transfer agent, estate planning, donor intent

Transcript Highlights:

• And all this done before the audit? It was... And all this done before the audit?
• I happen to have been on the audit committee when the audit was done. And I think that...
• I happen to have been on the audit committee when the audit was done, and I think the key fact is there
• By the time the audit was released, it was 1 million.
• Things like you should get credit for precipitation that has not yet occurred, or you get credit for

Committee: Senate Rules

Keywords: 987, senate, all

Transcript Highlights:

• We get financial statements filed, whether they be audited or attestations.
• be audited or attest attestations<00:30:43.120><c> um</c><00:30:44.080><c> that's</c><00:30:44.279><
• in the audit I guess another another another concern<00:31:14.919><c> is</c><00:31:15.919><c> you</c
• We also have the Hawaiʻi Credit Union League with comments offering late testimony.
• </c><00:37:13.160><c> Union</c> much we also have the Hawai Credit Union much we also have the Hawai

Committee: Senate Commerce and Consumer Protection

Keywords: 912, senate, all

Summary: The committee heard several insurance and condominium-related bills. SB 1137 would require insurers to notify policyholders of approved rate changes within 30 days and at least 30 days before the effective date. The Insurance Division supported the bill, while testimony focused on condominium master policies and whether the notice period would be enough for associations to respond to rate increases. The division said the bill would mainly affect admitted carriers, not surplus lines insurers that write many condominium master policies, and warned against limiting the nonadmitted market. SB 293, requiring sellers to disclose when USPS cannot deliver mail or packages to a residential property, was also heard with HAAI Realtors commenting. SB 752 would extend notice periods for cancellation or nonrenewal of property-casualty policies; the Attorney General’s Office raised concerns about contractual impairment and retroactive application. The committee also heard SB 575, which would allow authorized insurers to offer building and hurricane damage coverage for condominium buildings at a lower rate than prior surplus lines coverage. The Insurance Division stood on written testimony, and a condominium owner urged amendments to require a membership vote before such coverage changes, citing concerns about condominium self-governance. SP 1046 would require managing agents to notify unit owners and the Real Estate Commission when a condominium association fails budget and reserve reporting requirements. The Real Estate Commission said the bill was administratively workable as drafted but noted ambiguity over who counts as the “managing agent”; several testifiers opposed the measure, arguing it could disrupt the principal-agent relationship and impose legal judgment on nonlawyers, while others supported it. SP 150, dealing with captive insurance companies seeking exemption from examinations, drew the most detailed discussion. The Captive Insurance Council supported the bill as a way to reduce duplicative oversight and improve Hawaii’s competitiveness, while the Insurance Division opposed it as drafted, citing concerns about broad commissioner discretion, possible missed issues between exams, staffing shortages, and the need to preserve oversight. A committee member asked about a possible middle ground, including a shorter exemption period or limiting the bill to self-attestation companies; the division said it would need more information and that annual filings and approval requirements would still provide oversight. The committee also heard SP 212, which would require at least two Real Estate Commission members to be licensed engineers or architects; testimony included support and a concern about conflicts of interest among people who serve in multiple roles in the condominium and real estate sectors. No votes or final actions were taken in the portion provided, and the chair moved from one measure to the next after testimony and questions.

Transcript Highlights:

• The last time the PUC did an audit was in 2021.
• So you're not doing a financial audit, but you are doing an audit. Yes.
• We're doing an audit on the work, whether it was done or not.
• And then there's no audit on whether they actually spend that money.
• Most Californians are actually in significant credit card debt.

Committee: Senate Energy, Utilities and Communications

Keywords: 987, senate, all

Transcript Highlights:

• They all have audits, right?
• An audit is only a fair audit if the information is there, and so because of the FBI investigation and
• On the CAC's website, along with their audit, because here's the deal.
• That audit goes to the federal level.
• All of those audits are available to the public.

Bills: HB2510 , HB3589 , HB4611 , HB4655 , HB4665 , HB4666 , HB4670 , HB4700 , HB4730 , HB4798 , HB4838 , HB5136 , HB5243 , HB5302 , HB5539

Committee: House Human Services

Keywords: assisted living, healthcare, licensing, criminal offense, personal assistance, group home, regulation, health and safety, inspections, resident care, criminal background checks, adoption, parental rights, registry, vital statistics, disclosure, counseling, foster care, independent living, financial literacy

Transcript Highlights:

• Similar credit options are available in other areas of CTE education.
• Three credits of science are required, including one credit to satisfy all the Earth and Space Standards
• for Grades 9-12, one credit to satisfy all the Life Science Standards for Grades 9-12, and one credit
• So a student could exchange one of their credits for this health credit in science.
• And one of the credits.

Committee: House Education Policy

Transcript Highlights:

• I have shared with the committee an NNC CPA audit.
• This audit has been done. OHA funded this audit.
• This audit has been done. OHA funded this audit.
• </c><00:56:13.680><c> will</c> accurate inventory in the um audit will accurate inventory in the um audit
• </c><02:44:04.800><c> the</c><02:44:04.920><c> chair's</c> income tax credit the chair's income tax credit

Committee: House Water & Land

Keywords: 910, house, all

Summary: The committee heard testimony on HB 1233, relating to storm management systems, which would add safety and maintenance requirements for detention and retention ponds. Supporters, including Alison Schafers of the Ki Injury Prevention Coalition and Kristen Herstead of the Hawaii Lifeguard Association, said the measure is needed because poorly maintained ponds can become hidden drowning hazards, especially for children, and argued that fencing, signage, and life-saving equipment would have minimal cost. Schafers described the death of her daughter in a detention pond and said the bill reflects recommendations in the Hawaii Water Safety Plan. Members asked about whether the issue should be handled at the county level; testifiers responded that a statewide standard is needed, though counties would likely handle permitting. No vote was taken on the bill during the excerpted discussion. The committee then heard HB 867, relating to recreational facilities, which would require accessible playgrounds. The Department of Land and Natural Resources said it submitted comments and that state parks do not generally have recreational facilities affected by the bill, while most such facilities are under county jurisdiction. The Hawaii State Council on Developmental Disabilities, the Disability Communication Access Board, and the Disability Rights Center all supported the bill’s intent but recommended changes, including replacing the term “special needs” with “accessible,” focusing the requirement on new and renovated playgrounds, and specifying wheelchair-accessible swings. Testifiers emphasized that accessible play spaces promote inclusion for children with disabilities and benefit all children. No final action or vote was reported. The committee also took up HB 1358, relating to a public land trust working group. DLNR supported the measure and said it had provided written comments, while the Office of Hawaiian Affairs strongly supported the bill and described longstanding problems with incomplete land inventories, self-reported revenue data, and disputed public land trust payments. OHA said an audit it funded suggests the state owes more than current payments reflect, and other supporters said the bill is needed for transparency, accountability, and a complete inventory of public trust lands, including submerged lands. Committee questions focused on how the public land trust information system is maintained, who updates it, and how revenue reporting works; DLNR said the system is older, has limited dedicated IT staffing, and relies on agency self-reporting rather than independent verification. No vote or final committee action was announced in the excerpt.

Transcript Highlights:

• And credit to y'all, you're bringing it to us now. Yes.
• Um, but it should not, to go audit them.
• </c><01:34:07.600><c> which</c> our required a IT security audit which our required a IT security audit
• Credit to y'all, to all of y'all, to all of us working together.
• Credit to y'all, to all of y'all, to all of us working together.

Committee: Joint Appropriations

Keywords: Appropriations - Room 216, 15 January, 2026; 2:00 PM, 925, all

Transcript Highlights:

• First, credit reporting.
• I’ve never seen negative credit reporting being required.
• I've never seen negative credit reporting being required.
• They will ding our credit. And they will ask us for a lump sum.
• We heard the credit impact component.

Summary: The Assembly Banking and Finance Committee held an outcomes review of AB 238, the wildfire mortgage forbearance law, focused on how the law has worked for survivors of the Eaton and Palisades fires. Chair Valencia and Assemblymember Harabedian said the hearing was intended to hear directly from survivors, assess whether the law is being implemented as intended, and identify fixes. Several survivors described losing homes, facing long rebuild timelines, and struggling with insurers, housing costs, and mortgage servicers. Many said they encountered confusion, inconsistent information, requests for financial documentation, lump-sum repayment demands, credit reporting problems, or loan modifications that they viewed as undermining the law’s purpose. Some urged clearer consumer education, a consumer bill of rights, and an extension of forbearance relief; one witness specifically advocated for AB 1847 to extend forbearance to 36 months. DFPI Chief Deputy Commissioner Suzanne Martindale said the department had received about 300 wildfire-related consumer complaints, mostly about mortgage forbearance, and that more than 91% had been resolved in the consumer’s favor. She said the department works with both state-licensed and federally regulated institutions, but its authority is limited when national banks are involved, so it often uses outreach and direct contact with lenders and federal partners to resolve complaints. She also described recurring complaint themes such as difficulty obtaining forbearance, customer-service breakdowns, withholding of insurance funds, and non-interest-bearing impound accounts. Committee members pressed DFPI on which institutions were noncompliant, what enforcement tools were available, and how much data the state could collect and make public. Representatives of the California Bankers Association and California Mortgage Bankers Association said lenders had provided early disaster relief and were working to comply with AB 238, but emphasized that mortgage servicing is constrained by federal law, investor requirements, and secondary-market guidelines. They argued that forbearance is temporary relief, not forgiveness, and warned that extending it without a clear repayment path can create future payment shock or larger debt burdens. They also said many servicers use disaster protocols tied to federal declarations and that clearer communication is needed. In response to committee concerns, the mortgage bankers said they would continue working with the Legislature and federal agencies, but could not promise changes beyond investor and agency rules. No votes or formal committee actions were taken during the hearing.

Transcript Highlights:

• By credit card. Currently, what's the process for applicants?
• I had an audit. We've had hearings. And of the total fines Cal/OSHA issues, only 23% are paid.
• I've asked this question as it relates to OSHA and the audit...
• There was a recent audit of Cal/OSHA that we discussed.
• There was another recent audit of the Labor Commissioner's Office.

Keywords: 988, house, all