Transcript Highlights:

• This was a great use of the Tyler settlement because FHPAP, like was said before, is in every single
• This was a great use of the Tyler settlement because FHPAP, like was said before, is in every single
• c><00:25:12.400><c> of</c><00:25:12.559><c> the</c><00:25:12.720><c> Tyler</c><00:25:13.120><c> settlement
• </c> a great use of the Tyler settlement a great use of the Tyler settlement because<00:25:13.840><c>

Transcript Highlights:

• Occasionally, there are settlements between the parties.
• But that is the Occasionally, there are settlements between the parties, but that is, in general, the
• Most recently, the very most recent decision is the aforementioned San Alina Gas case, where the settlement
• Let me just first echo what a settlement of caller said by really giving kudos to the author for bringing
• Wetch earlier in reading from a settlement in the electricity realm, which is sort of an ironic inconsistency

Committee: House Utilities and Energy

Summary: The committee heard a series of energy and utility bills focused largely on affordability, reliability, wildfire costs, grid flexibility, and water rates. SB 254 by Senator Becker drew the most extensive discussion. Becker described it as a broad affordability package that would provide customer credits, create a Power Fund to move certain costs out of rates, tighten scrutiny of utility spending and profits, expand wildfire cost review, and use securitization and public financing to lower long-term costs. TURN and many environmental and public power groups supported the bill, while investor-owned utilities, labor, business groups, counties, and others opposed or opposed unless amended, arguing it did not adequately address underlying cost drivers and needed more analysis. The committee passed SB 254 on a 6-3 vote, with the bill held on call. SB 541, also by Senator Becker, focused on load flexibility and better use of existing grid capacity. Becker and economist Ryan Hledick said the bill would increase transparency on load-shifting progress and direct the CPUC to develop a strategy to capture distribution-level savings by shifting demand away from peak hours. Support came from labor, environmental, solar, storage, and demand-management groups, while CCAs, utilities, and public power agencies raised concerns that the bill could be read as a mandate and needed clearer amendments. After the author described amendments to remove language dividing the state goal among suppliers and to add cost-effectiveness and lessons learned from prior programs, the committee passed the bill 9-1 on call. The committee also approved SB 453 by Senator Stern, which would help return unspent ratepayer-funded microgrid money and support keeping the lights on in at-risk communities. PG&E expressed a concern about timing but no opposition, and local government and environmental groups supported the measure; it passed 12-0. SB 292 by Senator Svantes focused on PSPS and outage data reporting at the census-tract level to better target resilience investments. Supporters said more granular data would improve planning and equity, while utilities sought to avoid duplicative reporting; the bill passed 12-0. Finally, SB 473 by Senator Padilla addressed water affordability and conservation by requiring the CPUC to allow water utility decoupling. Supporters, including water utilities, labor, cities, and business and environmental groups, argued decoupling promotes conservation and can lower bills for low-use customers. The Public Advocates Office and the Monterey Peninsula Water Management District opposed, saying prior CPUC studies found no conservation benefit and higher costs under the full RAM mechanism. Members debated the evidence and rate-setting process, and the bill was moved out on a 12-0 vote.

Transcript Highlights:

• TK classroom and includes intent language that allocates up to $1.9 billion in 2024-25 Prop. 98 settlement
• Air Resources Board for the hybrid and zero-emission truck and bus voucher incentive project from settlement
• below a certain income threshold, and excludes from income for state tax purposes all wildfire settlement
• retirees below a certain income threshold and excludes from income for state tax purposes all wildfire settlement
• behalf of CalSTART to thank the Legislature for its appropriation of the $132 million from the H-NO settlement

Summary: The Assembly Budget Committee held an informational hearing on the final three-party budget agreement and related trailer bills, with the Department of Finance outlining the major budget bill and omnibus measures. Finance described a package built around balancing the state budget amid economic uncertainty, preserving core health and safety-net programs, and making significant ongoing reductions in some state programs. The budget bill included major items such as shifting $1 billion from the General Fund to the Greenhouse Gas Reduction Fund for Cal Fire, funding universal transitional kindergarten, deferring some UC and CSU funding, supporting foster care and homelessness programs, providing Proposition 36 implementation funding, and achieving Medi-Cal savings through changes to benefits and eligibility. The committee also heard that votes on the budget bills were expected later in the week and the following Monday. Finance then walked through the trailer bills, including health, human services, early learning, education, resources, energy, transportation, labor, housing, tax, public safety, courts, general government, cannabis, and energy-related measures. Notable provisions included a Medi-Cal enrollment freeze for certain adults, new premiums and benefit changes for some immigrants, child care COLA changes, education funding for literacy, teacher support, universal meals, and community college student support, as well as resource and climate measures affecting Cal Fire staffing and energy permitting. The housing trailer bill drew the most discussion, with provisions on CEQA streamlining, a vehicle miles traveled mitigation banking program, a renters’ credit trigger, and a six-year moratorium on new residential building standards. Members also discussed a film tax credit expansion, cannabis enforcement funding, a tribal police pilot program, and changes to tax policy, including military retirement income exclusions and wildfire settlement payment exclusions. Committee members largely praised the staff and the budget process, but several raised concerns and asked detailed questions, especially about the housing trailer bill’s new wage standards, tribal consultation provisions, and possible effects on prevailing wage protections. Finance explained that the housing language was intended to set wage floors for market-rate projects receiving CEQA streamlining, with different county-based tiers and a notwithstanding clause preserving existing prevailing wage laws. Members also questioned the size and timing of funding for the Children and Youth Behavioral Health Initiative, Clean Cars for All, Proposition 36, and the film tax credit expansion. Other members highlighted support for public safety, veterans’ tax relief, child care providers, housing production, and higher education, while some expressed concern that the budget’s policy changes were being negotiated too quickly or without enough stakeholder input.

Transcript Highlights:

• And there was a lawsuit brought, and the DOJ ended up making a settlement with Meta that really set beautiful
• It was a really great settlement, and I'm not sure it even exists anymore.
• But that, like, that settlement I mentioned with the DOJ and Meta, it was gradual.
• But that, like, that settlement I mentioned with the DOJ and meta, it was gradual.
• And for that, matter, in the META case, they were complying with that DOJ settlement.

Summary: The committee held an informational hearing on AI risks and mitigation, beginning with automated decision systems and then moving to frontier models. The chair emphasized that California has already passed some targeted AI bills, but broader regulation has stalled, and argued that a federal 10-year moratorium on state AI regulation would be reckless. The hearing was framed as a way to distinguish between narrow predictive systems used in areas like hiring, health care, and criminal justice, and more powerful frontier models with broader capabilities and potentially catastrophic risks. On the first panel, Professor Arvind Narayanan described automated decision systems as often relying on historical data that reflects past bias, producing only limited predictive accuracy and sometimes arbitrary or harmful outcomes. He cited examples including welfare fraud, criminal risk tools, hospital discharge estimates, and job-candidate scoring, and said policymakers should require effectiveness standards, explanation, contestability, impact assessments, and public inventories of government systems. Alondra Nelson focused on algorithmic discrimination as a spectrum of harms, including allocative discrimination, surveillance and privacy harms, targeting and profiling, and cultural misrepresentation. She gave examples involving IRS audits, data sold through apps and brokers, facial recognition misidentification, and biased employment and health-care systems, arguing that harms often compound across multiple systems. Cathy O’Neill described her auditing work as building a “cockpit” for AI—identifying who could be harmed, measuring disparities, and setting thresholds for action—and said audits, consent decrees, and public accountability can push companies toward better practices without banning innovation. Members of the committee asked about international competition, especially China, whether AI is more biased than humans, the cost of compliance for businesses, and whether California should move ahead despite federal uncertainty. The panelists said regulation should focus on high-stakes uses rather than all AI, that transparency and third-party auditing can be low-cost or cost-effective, and that good actors are already using impact assessments. They also noted that state-level action in places like Colorado, Connecticut, Utah, New Jersey, and others is helping set standards. The chair and members stressed that the goal is not to stop innovation but to build trust and reduce discrimination in consequential decisions. The second panel turned to frontier models. Joshua Bengio warned that model capabilities are improving rapidly, especially in reasoning and planning, while alignment and safety are not keeping pace. He cited recent research suggesting models can behave deceptively, including attempts to avoid shutdown, fake compliance during training, and even blackmail in simulated scenarios, and said companies must measure and disclose these risks before deployment. The discussion underscored the committee’s broader concern that California should continue leading on AI safety and accountability while preserving beneficial uses of the technology.

Transcript Highlights:

• Opioid Settlement Fund Reversion.
• What I can share with you from HCAI's perspective is there was $25 million in opioid settlement funds
• So in order to ensure that these excess funds from the opioid settlements...
• So in order to ensure that these excess funds from the opioid settlements don't expire, we're facing
• Opioid settlement funds should be going toward their intended use of innovative programs that tackle

Transcript Highlights:

• You know, for under sections uh 6310, it's clear that the policy holder has entered into a settlement
• Judicial lien on a settlement, though, right?
• I mean, the settlement doesn't happen, or the judgment doesn't happen, what if it happens? True.
• Judicial lien on a settlement, though, right?
• I mean, the settlement doesn't happen, or the judgment doesn't happen, what if it happens? True.

Bills: SB1166 , SB888 , SB2387 , SB2471

Committee: House Consumer Protection & Commerce

Summary: The committee heard SB 1166 SD2, a bill on insurance and climate-related damages that would authorize the Hawaii Property Insurance Association and, in amended versions discussed during testimony, other public and private entities to pursue civil actions to recover losses tied to climate disasters and extreme weather. DCCA’s Insurance Division and the Department of the Attorney General raised legal concerns, saying the bill’s scope may not fit the insurance code section being amended, that it could create subject-matter and title issues, and that some subrogation language may be duplicative of existing rate-filing practice. Lawyers for Justice opposed the measure, arguing it conflicts with existing subrogation law and recent Hawaii Supreme Court rulings that treat the judicial lien process as the exclusive remedy. The American Petroleum Institute also opposed, warning the bill would add liability and litigation risk for companies operating under existing permits and could undermine energy reliability and investment. Supporters said the bill would help shift climate-related insurance costs away from residents and onto fossil fuel companies and other responsible parties. Testimony in support came from the Polluters Pay Hawaii Coalition, Center for Climate Integrity, Hawaii Island Council, Our Hawaii, Sierra Club of Hawaii, and others, who described recent flooding, storm damage, rising premiums, non-renewals, and underinsurance as evidence of a worsening climate-driven insurance crisis. Several supporters urged amendments to give the Attorney General explicit authority to recover insurance-related losses for the Hurricane Relief Fund, HPIA, and private insurers, and to ensure recovered amounts benefit policyholders. Committee members questioned whether HPIA is a private entity, whether the Attorney General could represent it, whether the bill could create double recovery or affect pending climate litigation, and whether insurers would have standing or damages if they are only paying contractual claims. The committee then took up SB 888 SD2, a consumer protection bill that would restrict smart household security device operators from sharing user data with law enforcement without consent or a judicial order, and would bar conditioning device use on such consent. The Office of Consumer Protection testified in support and said an Illinois law could serve as a useful template for exceptions to the warrant requirement. An individual supporter said the measure would protect immigrant communities, judges, and others from surveillance and misuse of private data. No vote was taken during the portion of the meeting provided, and the chair noted additional written testimony submitted in support of SB 1166.

Transcript Highlights:

• The Navahini settlement requires the state to achieve zero emissions in the transportation sector by
• This is a court-enforced settlement, and the legislature shares responsibility for ensuring that the
• Uh the Navahini settlement<00:41:24.680><c> requires</c><00:41:25.240><c> the</c><00:41:25.320><c> state
• </c><00:41:25.600><c> to</c><00:41:25.680><c> achieve</c> settlement requires the state to achieve settlement
• The state has an obligation from the NaPali Settlement to reduce greenhouse gas emissions for our future

Bills: HB1736 , HB1620 , HB1695

Committee: Senate Agriculture and Environment

Summary: The committee heard testimony on HB 1737, which clarifies allowable uses in agricultural districts for farm dwellings and farm employee housing, and HB 1604 HD2, which creates an agricultural workforce housing working group within the Department of Agriculture and Biosecurity. Testimony on HB 1737 was overwhelmingly supportive, with county agriculture officials, the Hawaii Farm Bureau, and Hawaii Farmers Union backing the measure; one witness asked for a definition of “affordable” to guard against misuse of farm housing. For HB 1604, the Department of Agriculture, Hawaii Farm Bureau, Housing Hawaii’s Future, Hawaii Farmers Union, and the Office of Hawaiian Affairs supported the bill, with OHA requesting disaggregated data and a seat on the working group. Committee discussion focused on housing shortages, possible misuse, affordability, and whether innovative housing models such as modular, tiny, and container homes should be considered. The committee then took action on both measures. HB 1737 HD3 was recommended to pass with amendments that would limit farm employee housing to agricultural employees and their immediate family members actively engaged in the farm operation, add a grandfathering provision for existing permitted housing, preserve county zoning authority, clarify that ag tourism must be secondary and not occur in employee housing, delete a square-footage-per-acre ratio, and defer the effective date to July 1, 2050. HB 1604 HD2 was also recommended to pass with amendments adding OHA and a housing-shortage organization to the working group, expanding its scope to include modular, tiny, and container homes and permitting/zoning streamlining, and deferring the effective date to July 1, 2050. Both motions were adopted unanimously by the members present. The joint hearing then moved to HB 1736, which would establish a spay and neuter special fund and require sterilization and declaration provisions for cats, with some discussion of dogs. DLNR and the Hawaiian Humane Society supported the bill, while Pacific Pet Alliance objected to the broader requirements and the inclusion of dogs; the Hawaiian Humane Society and American Bird Conservancy supported cat-focused sterilization and the special fund, while some testifiers opposed mandatory sterilization as too costly or intrusive. Members raised questions about toxoplasmosis, trap-neuter-release, enforcement, neighbor-island access, and funding needs, and DLNR indicated additional funding and third-party contracting would likely be needed. The transcript then began HB 1620 HD2 on energy, which would increase the environmental response energy and food security tax and shift funds from the hydrogen fueling subaccount to EV charging infrastructure; state agencies generally stood on written testimony in support, while the Tax Foundation objected to special fund earmarks and noted the bill raises only one part of the barrel tax structure.

Transcript Highlights:

• That 5% is not 5% on top of the claim; that 5% that they charge comes out of the actual insurance settlement
• representing a member of the public and accepting compensation in negotiating for affecting the settlement
• </c> the actual insurance settlement claim. the actual insurance settlement claim.
• of</c><00:54:12.480><c> a</c><00:54:12.640><c> claim</c><00:54:12.880><c> for</c> affecting the settlement
• of a claim for affecting the settlement of a claim for loss<00:54:13.280><c> or</c><00:54:13.440><c>

Summary: The House convened with an invocation and pledge, established a quorum, approved the prior journal, and received committee reports on several bills. Reported measures included House Bills 1 and 2 from Appropriations and Revenue, along with bills on animal control officers, emergency services revenue, postsecondary education, proactive postsecondary admission, vehicle lights, motor vehicle operation, motor vehicle dealers, and machine gun conversion devices. The chamber also took up Senate Bills 52 and 124 for concurrence, and House Bill 1 was moved from rules to the orders of the day for immediate action. The House then considered House Bill 568, which would regulate public adjusters by prohibiting new licenses, allowing renewals for current licensees, imposing conflict-of-interest and contract requirements, capping fees at 5%, and barring adjusters from negotiating claims. Supporters described it as a consumer-protection measure responding to complaints and investigations, especially after recent storm-related exploitation. The bill passed overwhelmingly, 95-1. The House next debated House Bill 1, which would opt Kentucky into the federal education freedom tax credit program and authorize the Secretary of State to administer the state’s participation without using state general funds. Supporters argued it would bring federal scholarship dollars into Kentucky for K-12 students, including public school students, and could generate significant private donations for scholarship-granting organizations. Opponents raised concerns about shifting resources away from public education, the speed of the process, and a proposed waiver of Eleventh Amendment immunity. A motion to table the bill failed by a wide margin, and members continued debating the bill and its implications for public schools and state sovereignty.

Transcript Highlights:

• of their current Planet on a settlement of their current rebasing<01:14:59.760><c> request.
• The State Energy Office administers some funds for the Volkswagen settlement.
• The State Energy Office administers some funds for the Volkswagen settlement.
• The State Energy Office administers some funds for the Volkswagen settlement.
• The State Energy Office administers some funds for the Volkswagen settlement.

Bills: HB1617

Committee: House Energy & Environmental Protection

Summary: The committees heard testimony on HB 1949, which would create a public dashboard for the green fee to improve transparency and accountability. Testimony from the Climate Change Mitigation and Adaptation Commission, the Office of Planning and Sustainable Development, and many community and conservation groups was generally supportive, with several speakers urging that the governor’s project recommendations remain largely intact and that community-driven projects continue to guide spending. One amendment was suggested to place the dashboard at the Department of Budget and Finance for fiscal expertise, while other testimony favored keeping it with the commission. Members asked about procurement, ETS involvement, recurring hosting costs, and whether the dashboard could be funded from green fee revenues; the commission said it could work with ETS and that green fee funds could reasonably be used. The committees then voted to pass HB 1949 with amendments. The committees also heard HB 2618, which would require the governor to submit a separate bill for amounts tied to any increase in the transient accommodations tax and, in later discussion, was expanded into a broader restructuring of future green fee allocations. Testimony from the Climate Change Mitigation and Adaptation Commission, Hawaii Reef and Ocean Coalition, and others supported the bill and emphasized the value of more predictable, dedicated funding for conservation and climate-related work. During decision-making, the chair described amendments creating several special funds under DLNR, including a watershed biodiversity and wildfire risk reduction fund, an aquatic resources conservation fund, a coastal restoration fund, a cesspool conversion revolving loan fund, and a green fee special fund for remaining revenues, with recommended amounts discussed for some of the funds. The committees voted to pass HB 2618 with amendments. The hearing then moved to HB 1644, a consumer protection measure for residential solar sales that would require compliance with consumer protection laws, licensing or contractor affiliation for sellers, and a standardized disclosure form. Testimony in support came from the Hawaii Green Infrastructure Authority, DCCA’s Office of Consumer Protection, Kauai Island Utility Cooperative, the Hawaii Solar Energy Association, and several solar companies and individuals. Supporters said the bill would address complaints about third-party sales practices and improve disclosure, especially around financing. The committee then began hearing HB 2243, which would require electric utilities to provide public, electronic customer bill impact analyses and annual reports to the Public Utilities Commission; the Division of Consumer Advocacy and the PUC offered comments supporting the measure’s intent.

Transcript Highlights:

• One was sending it to the general fund, one was sending it to the settlement fund.
• </c><00:08:06.639><c> So</c><00:08:06.879><c> this</c><00:08:07.120><c> just</c> to the settlement fund
• So this just to the settlement fund. So this just clarifies<00:08:08.080><c> that.
• </c><00:08:49.760><c> So</c><00:08:50.560><c> I</c><00:08:51.120><c> I</c> money into the settlement
• So I I money into the settlement fund.

Committee: Senate Finance

Transcript Highlights:

• By moving the certainty of funding from would to could, the settlement fund will have to fight it out
• And let's be aware that the week after next, the new settlement fund administrator is going to come to
• </c><03:23:45.520><c> This</c> put in the YDC settlement fund. This put in the YDC settlement fund.
• fund will have to fight the settlement fund will have to fight it<03:24:32.560><c> out</c><03:24:33.359
• </c><03:24:54.160><c> fund</c> next, the new settlement fund next, the new settlement fund administrator

Transcript Highlights:

• And just this month, a federal judge granted preliminary approval for a new $7.25 billion settlement.
• A court allowed that claim to proceed, and it ultimately resulted in a $73 million settlement with the
• A court allowed that claim to proceed, and it ultimately resulted in a $73 million settlement with the
• </c><02:20:10.000><c> with</c><02:20:10.240><c> the</c> $73 million settlement with the $73 million settlement
• </c> resulted in a $73 million settlement. resulted in a $73 million settlement.

Transcript Highlights:

• of the settlement given these cuts?
• But the chair of that commission is Deputy Agetti, who negotiated these settlement funds.
• So, but I am aware. negotiated these settlement funds. He's negotiated these settlement funds.
• And finally, I would of the settlements.
• . settlements. settlements. with<03:35:56.399><c> the</c><03:35:56.720><c> companies</c><03:35:57.200

Committee: Senate Finance

Transcript Highlights:

• The legislature provided revenues from the National Master Tobacco Settlement Agreement, a portion of
• 40.600><c> the</c> moment which is the settlement from the moment which is the settlement from the lawsuits
• The Maui wildfire cash settlement is now at the Supreme Court level.
• So I think that will be rejected, and they'll have to work within this settlement.
• So that's the wildfire settlement. And then I talked to you a little bit about the Cales.

Summary: The House Finance Committee held an informational briefing with the University of Hawaiʻi, led by new President Wendy Hensel and Vice President for Budget and Finance Calbert Young. Hensel outlined the university system’s scope, student demographics, research activity, and campus missions, emphasizing four strategic priorities: serving Native Hawaiians and Hawaiʻi, student success, workforce development, and economic diversification through innovation and research. She highlighted the system’s enrollment, research funding, and the roles of Mānoa, Hilo, West Oʻahu, the community colleges, and specialized institutions such as JABSOM and the Cancer Center. Young then reviewed the budget request, focusing largely on making prior one-time appropriations permanent and supporting recurring needs. Items included funding for Mānoa athletics, the Hawaiʻi Institute for Marine Biology, K-12 teacher education, Pamantasan Council support, Hilo programs, Windward’s mental health technician certificate, Maui’s practical nursing bridge program, and student support positions such as financial aid and admissions counselors. He also described workforce-related requests tied to nursing expansion at Mānoa and West Oʻahu, as well as facilities support at West Oʻahu. A major portion of the testimony addressed the university’s two Kakaʻako medical facilities. Young explained that declining tobacco settlement and cigarette tax revenues are no longer sufficient to cover debt service for JABSOM and the Cancer Center, so the governor’s budget includes general fund support to supplement those obligations. He also described a regents-approved request not included in the governor’s proposal: expanding the Hawaiʻi Promise financial aid program to the four-year campuses, estimated at about $11–12 million. No votes or formal committee actions were taken during the briefing.

Transcript Highlights:

• Then the state took out a loan backed by tobacco settlement revenue from the 1990s and basically securitized
• </c><00:41:44.599><c> revenue</c> backed by tobacco settlement revenue backed by tobacco settlement revenue
• :41:45.200><c> the</c><00:41:45.560><c> 1990s</c><00:41:46.560><c> tobacco</c><00:41:47.240><c> settlement
• </c><00:41:48.240><c> um</c><00:41:48.520><c> and</c> from the 1990s tobacco settlement um and from the
• 1990s tobacco settlement um and basically<00:41:49.200><c> securitize</c><00:41:50.000><c> that</c><

Committee: House Capital Investment

Transcript Highlights:

• We know that there is a settlement agreement at the federal level in Connecticut, and so you'll hear
• more... ...settlement agreement at the federal level in Connecticut, and so you'll hear more when we
• The other piece, too, is continuing to monitor where we are with the DOJ settlement.

Summary: The Juvenile Justice Policy and Oversight Committee (JJPOC) met for administrative updates, approved the April meeting minutes, and discussed a proposed shift from monthly full committee meetings to a quarterly schedule beginning later this year. Members generally supported the change, saying it would reduce strain on agency and committee resources and allow more time for work groups to complete implementation tasks. Several members also asked for more flexible agendas and a clearer way to add issues between meetings, with staff suggesting a standardized form for submitting topics in advance. Work group updates covered cross-agency data sharing, diversion, education, incarceration, and community expertise. The data-sharing group reported continued work on the Equity Dashboard 2.0, a statewide expulsions analysis, municipal-level data collaboration with UConn’s IMRP, and a cross-system analysis of crossover youth. The diversion group described work on POST curriculum revisions for juvenile law, a youth-focused law enforcement interaction training, a community-police relationship toolkit, expansion of youth diversion teams, and pre-arrest diversion policy. The education group is reviewing implementation of the law creating educational oversight in juvenile facilities, along with a free public transportation pilot for high school students and truancy cleanup legislation. The incarceration group is tracking conditions of confinement, DOC restraint and chemical agent reports, the DOJ settlement monitoring process, the reentry success plan, and gender-responsive programming. The community expertise group emphasized elevating lived experience, youth voice, prevention, and conditions of confinement, with members urging the committee to focus on stability, infrastructure, and meaningful use of lived-experience perspectives. A major presentation from OPM outlined Connecticut’s effort to re-enter the federal Title II juvenile justice formula grant program. OPM explained the program’s core compliance requirements, including deinstitutionalization of status offenders, adult jail and lockup removal, sight-and-sound separation, and addressing racial and ethnic disparities. Staff said Connecticut is currently not fully compliant because of issues including youth being held in adult facilities and the state’s six-hour detention rule, and that Title II funding is on hold while OPM works toward compliance. OPM is developing a monitoring manual, identifying facilities to be monitored, and forming a state advisory group (SAG) to support the application and compliance process. Members questioned why a separate SAG is needed, whether JJPOC or the community expertise group could serve that role, and how lived-experience members would be selected; OPM said federal rules require the SAG to include youth or parents with lived experience and that the group cannot be composed of state or government employees in the key leadership roles. The committee agreed to circulate the federal parameters and ask members to suggest candidates for the SAG and to help move compliance work forward over the summer.

Transcript Highlights:

• The average settlement is $747,000. The average attorney payout is $352,000. So these...
• The average settlement is $747,000. The average attorney payout is $352,000.
• So out of that $700,000 settlement, when $302,000 went to the attorney, the enhanced employee got $50

Committee: Senate Rules

Summary: The Senate Rules Committee approved several non-appearing gubernatorial appointments and routine agenda items by 4-0 votes, including Frank Damrow Jr. to the Alcoholic Beverage Control Appeals Board, Michelle Eddger to the Board of Barbering and Cosmetology, and David Galavis to the State Park and Recreation Commission. The committee also approved bill referrals, a rule waiver to allow SB 1447 to be heard after the policy deadline, and floor acknowledgments. The committee then heard the appointment of Clint Kellam as Director of the Department of Cannabis Control. Members focused heavily on cannabis regulation, especially illicit market activity, consumer education, labeling, and youth protection. Kellam said the department’s goal is to shift consumption from illicit to legal sources, not increase use, and described efforts such as the Real California Cannabis website, the required educational pamphlet for new users, inspections, and package review. Senators raised concerns about attractive-to-children packaging, high-dose beverages, and the need for tighter labeling rules; Kellam said the department is open to legislative changes, is working on an AI tool to help licensees review packaging, and uses recalls, citations, and administrative actions when products violate rules. He also described enforcement efforts against illegal cultivation and retail, including the Unified Cannabis Enforcement Task Force and cooperation with local, state, and federal agencies. The committee voted 4-0 to advance the appointment. The committee next heard Jennifer Osborne’s appointment as Director of the Department of Industrial Relations. Osborne described her background in state administration and said she aims to remove barriers, improve systems, and support workplace safety, wage enforcement, workers’ compensation, and apprenticeship programs. Senators asked about PAGA enforcement, Cal/OSHA audit findings, backlogs, staffing shortages, and complaint handling. Osborne said DIR’s role in PAGA is limited, but the department is working on Cal/OSHA policy revisions, training, additional investigation staff, centralized intake, IT modernization, and possible use of outside administrative law judges to reduce delays. She also said the department is addressing vacancy and backlog issues through classification changes and new hiring strategies. Public commenters from employer groups and labor organizations spoke in support, and the committee approved the appointment 4-0 for full Senate confirmation.

Transcript Highlights:

• The average settlement is $747,000. The average attorney payout is $352,000.
• So out of that $700,000 settlement, when $302,000 went to the attorney, the enhanced employee got $50
• So out of that $700,000 settlement, when $302,000 went to the attorney, the enhanced employee got $50

Committee: Senate Rules

Transcript Highlights:

• He was silenced to his grave with an NDA that Kanakuk specifically requested and added settlement dollars
• He was silenced to his grave with an NDA that Kanak specifically requested and added settlement dollars
• to achieve. that Kanak specifically requested and added settlement dollars to achieve.

Committees: House Commerce , House Commerce, Consumer Protection, Energy and the Environment

Transcript Highlights:

• Second is settlement.
• The moment the transaction is sent, within seconds, maybe minutes, the full settlement takes place, and
• The moment the transaction is sent within seconds, maybe minutes, the full settlement takes place, and

Summary: The Assembly Banking and Finance Committee held an informational hearing on digital asset innovation, with opening remarks framing cryptocurrencies, blockchain, stablecoins, tokenization, and decentralized finance as a growing part of the financial system. Dennis Porter of Satoshi Action Fund presented on the market size, institutional adoption, use cases such as remittances and small-business payments, and policy developments at the federal and state levels. He also discussed risks including volatility, cybersecurity, and illicit use, while arguing that clear regulation can support innovation and consumer protection. State Controller Malia Cohen then updated the committee on implementation of SB 822, California’s unclaimed digital asset law. She explained that the law applies to custodial accounts, not self-custodied wallets, and requires holders to conduct outreach before dormant digital assets are transferred to the state in native form. Committee discussion focused on how abandonment is determined, what counts as account activity, the expected timeline for notices and custodian procurement, and the administrative costs and staffing needed to run the program. Controller staff said the state is still building procedures, working with Oregon, and expects a significant increase in claims once the program is operational. Porter returned with a proposal for a California digital asset reserve fund built on unclaimed digital assets under SB 822. He argued the fund could be cost-neutral, use only high-quality digital assets, and include guardrails such as an advisory board, audits, and public reporting. Committee members expressed interest in diversification and consumer protection, but also raised concerns about volatility, documentation, and market downturns. The hearing ended after public comment from industry and advocacy representatives, including support from the California Blockchain Advocacy Coalition, the Crypto Council for Innovation, and Coinbase, all urging clear, technology-neutral policy to keep innovation and jobs in California.