Transcript Highlights:

• It's, we know, modern.
• And all aim to focus investment on modern networks that benefit everyone.
• A more modernized network. Thank you. Thank you. I appreciate it.
• TURN fully supports modernizing networks.
• California must invest in modern high-speed communications technology.

Summary: The committee held an informational hearing on Carrier of Last Resort (COLR) to examine its history, current operation, and possible future changes in California. Chair Tasha Berner said the hearing was prompted in part by AT&T’s 2023 request for relief from COLR obligations and by broader concerns about public safety, affordability, universal service, and access to modern broadband and telecommunications. The first panel featured a telecommunications expert who traced COLR back to universal service principles and explained how states have handled COLR differently, including full deregulation, limited rural obligations, or transition pathways tied to competition and customer protections. Members asked about affordability, federal and state processes for service withdrawal, and whether COLR remains necessary given modern competition. CPUC staff then described California’s COLR framework, explaining that universal service rests on access, reliability/quality, and affordability, and that COLR requires carriers to provide basic service, including voice-grade calling, 911 access, relay services, and Lifeline. Staff said AT&T’s application sought relief in nearly all of its territory, but no replacement COLR came forward during the proceeding, and public participation hearings drew thousands of comments and strong concern from rural and vulnerable customers. The CPUC outlined its ongoing rulemaking to reconsider whether the 1996 COLR rules and 2012 basic-service definition still fit current conditions, with workshops and public hearings scheduled and a proposed decision expected later in the year or into 2026. Members pressed staff on geographic outreach, wireless coverage, whether broadband can be part of basic service, public safety during wildfires, and what reporting and complaint processes currently exist. In the final panel, industry and public-interest witnesses sharply disagreed. A U.S. Telecom representative argued COLR is outdated, costly, and copper-focused, and said reform should allow technology-neutral alternatives such as wireless, fiber, and satellite while preserving reliable voice and emergency access. The CPUC Public Advocates Office countered that COLR remains a necessary public safeguard, especially for rural and low-income customers, and argued that any transition should maintain or improve service, with public benefits such as broadband investment and continued protections for 911, disability access, and affordability. Committee members focused on the difference between an obligation to serve everyone and a mere option to serve, and on whether the Legislature should provide clearer guidance as the CPUC’s rulemaking moves forward.

Transcript Highlights:

• Um as an um do the modernization.
• <00:13:02.320> But<00:13:02.839> um modernize these systems.
• But um modernize these systems.
• But um not<00:13:03.880> modernizing<00:13:04.560> them<00:13:04.960> and not modernizing
• And so, it it modernizing these systems.

Keywords: 918, senate, all

Summary: The discussion focused on the need to modernize Minnesota’s human services software systems, especially MAXIS and related county-administered eligibility tools used for programs like SNAP and Medical Assistance. The senator described seeing a Ramsey County demonstration of the MAXIS system, saying the process was tedious, repetitive, and based on outdated green-screen technology that is difficult for workers to learn and use. The outdated systems were said to create long wait times for residents seeking basic needs assistance and to make it harder for counties to keep up with application volume. The senator said the old, siloed systems also create program integrity problems because they do not communicate well with one another, making it harder to detect fraud and more likely that errors will go unnoticed. Counties reportedly need to hire more staff just to process basic applications, and those added costs can ultimately affect county budgets and property taxpayers. The senator also said modernization is important to maintain federal funding and avoid penalties tied to error rates and compliance requirements in programs such as SNAP and Medicaid. Senate File 4719 was presented as a short-term bill to create a Human Services System Steering Committee made up of county representatives, state agencies, DHS, DCYF, and MNIT to develop recommendations and prioritize improvements collaboratively. The senator said the committee could begin meeting within a couple of months after enactment, with the goal of getting work started quickly this biennium. A longer-term proposal, Senate File 5020, would establish an IT funding account and require MNIT to develop a modernization plan for larger system investments. No vote or formal committee action was taken in the exchange.

Transcript Highlights:

• > IT Those include modernizing our IT Those include modernizing our IT systems, systems, systems
• ongoing basis and have it focused on technology modernization.
• ongoing basis and have it focused on technology modernization.
• ongoing basis and have it focused on technology modernization.
• ongoing basis and have it focused on technology modernization.

Keywords: 1183, house

Summary: House Republican leaders unveiled their “North Star Comeback” budget plan, describing it as a focused effort to make Minnesota more affordable, reduce government waste, and strengthen the economy. They said the package would include a $3.8 billion tax cut proposal with one-time property tax relief, elimination of taxes on tips and overtime, childcare relief, lower car tab fees, and funding for schools through scholarship-granting organizations. They also framed the plan as a response to rising costs for groceries, housing, energy, insurance, and childcare. A major emphasis of the rollout was government accountability, especially a strong Office of Inspector General bill and IT modernization to reduce fraud. Leaders said the OIG proposal had moved out of committee and was now in Ways and Means, with a working group continuing to reconcile House and Senate differences. On IT modernization, Chair Paul Torkelson said the plan would likely use a two-pronged approach, with about $15 million for near-term needs and a longer-term fund for ongoing technology upgrades; he said many such investments could qualify for federal matching dollars. The leaders also highlighted Medicaid conformity, saying Minnesota should align with federal changes to avoid losing funding, and they discussed a property tax rebate proposal as a one-time $1 billion return to taxpayers to offset higher property taxes. In response to questions, they said many of the budget items were still moving through the process and some had not met finance deadlines, while others were already in bills. They repeatedly criticized House Democrats for blocking or delaying Republican proposals and said they wanted bipartisan cooperation to pass the plan this year.

Transcript Highlights:

• investments also modernized These investments also modernized login.mn,<00:30:14.360> the<00:
• > to rapidly modernized infrastructure to rapidly modernized infrastructure to enhance<00:31:07.920
• , the Technology Modernization Lastly, the Technology Modernization Fund,<00:32:29.240> a<00:32
• Technology modernization supports modernizations of high-impact systems such as agency licensing platforms
• jumping-off point to our modernization jumping-off point to our modernization and<00:37:05.560><

Bills: HF1338

Keywords: Inspector General, Office of the Inspector General, state oversight, government accountability, fraud, waste, abuse, audit, investigation, subpoena, whistleblower, public integrity, transparency, state agencies, executive branch, public funds, taxpayer funds, law enforcement oversight, public safety programs, advisory council

Transcript Highlights:

• Papano will help lead an organization tasked with rebuilding and modernizing our long-neglected nuclear
• So anything we can do as you look at that modernization process. Please let us know. Mr.
• But all that's for naught if we don't have the modern warheads available.
• We're all legs of our nuclear triad are needing modernization at the same time.
• Modernization requirement has a direct impact on the NNSA.

Keywords: defense industrial base, small business, workforce development, acquisition processes, national security, cybersecurity, critical minerals

Summary: The meeting of the committee revolved around critical discussions on enhancing the defense industrial base, focusing on small business engagement and the importance of streamlined processes in defense contracting. There was a significant emphasis on the need for more investment in the defense manufacturing sector, particularly in the face of competition from countries like China. Some members expressed frustration over the treatment of small businesses, citing barriers that prevent these innovative companies from effectively participating in defense contracts. The need for a workforce capable of meeting the common challenges posed by evolving technologies and geopolitical threats was also highlighted throughout the meeting.

Transcript Highlights:

• And over on the right, we have a typical current modern smartphone.
• And today I will be walking you guys through our Access Modernization Project.
• And so we're very excited about the opportunity to modernize those sets of screens.
• But all of the indications have said that modernization was needed.
• As we've been modernizing, we are in both AWS and Microsoft Azure.

Summary: The subcommittee heard updates on several major technology modernization efforts, beginning with the Department of Financial Services’ Florida PALM project, which is replacing the state’s decades-old FLAIR accounting system. DFS described PALM as a statewide effort affecting all three branches of government, with cash management already live and the remaining financial management, payroll, and data warehouse components still in development. Officials said the project began in 2014, was restructured after a 2022 legislative pause, and is now being recommended for a go-live delay from January 2026 to July 2026. Members asked about governance, staffing, contract structure, cost growth, and maintenance costs; DFS said the contract is deliverable-based, the current amendment would add a net $2.2 million, and post-go-live maintenance is expected to be about $13 million annually under the current contract through July 2027. The Agency for Health Care Administration then updated the committee on the FX Medicaid enterprise modernization program. AHCA explained that federal CMS directed states to move from monolithic Medicaid systems to a modular approach, leading Florida to procure separate vendors for integration services, data warehouse, unified operations, provider services, and claims processing, with pharmacy benefits still to be procured. Officials said the project has spent about $334 million to date, with most costs federally matched, and requested $189.95 million for the upcoming year. They also highlighted a 2024 special assessment that produced 81 recommendations, most tied to staffing shortages, and said the Legislature added 47 FTEs, with 17 currently filled or being filled. Members asked about governance changes, production status, data access, and future technology maintenance; AHCA said some components are operational, the data warehouse is nearing certification, and the agency is working to keep the system adaptable and nonproprietary. The Department of Children and Families presented its Access modernization project, which is replacing a mainframe-based eligibility system used for SNAP, TANF, Medicaid assistance, and related programs. DCF said the six-year, $205 million project is in its third year and has already delivered a new customer portal with mobile access, multi-factor authentication, and fraud protections, while also building a worker portal, document management, community partner tools, and workload management functions. The agency said it is requesting $36.625 million for the next fiscal year, the same as last year, and emphasized that the project has remained on schedule and on budget by breaking work into smaller modules and using strong vendor and staff support. Members praised the project’s progress and asked about cybersecurity testing and the long delay before modernization began; DCF said security requirements were built in from the outset and that the remaining work will focus on moving staff off the legacy mainframe and modernizing notices and back-end processes.

Transcript Highlights:

• We spent a little time today together talking about modernizing our IT and the various ideas there.
• Um, and then system modernization.
• today together talking about modernizing today together talking about modernizing our<00:01:42.880
• c> a<00:05:16.320> fair<00:05:16.520> amount modernization.
• Um there's a fair amount modernization.

Keywords: 918, senate, all

Summary: Senate leaders said they were in the final weeks of session, moving long days of floor and finance work focused on priorities they described as affecting Minnesotans’ cost of living, safety, and security. They said next week would bring major packages to the floor, including public safety, health and human services, Metro Surge, and a gun violence package, while negotiations continued with House leaders and the administration. They also highlighted a human services bill from Sen. John Hoffman as the final item completed that day. A major topic was the Senate’s response to H.R. 1, which leaders said would require about $1 billion in state budget adjustments to avoid federal penalties and Medicaid losses. They said the proposal would address federal compliance issues, support hospitals such as HCMC and other distressed providers through uncompensated care funding, and include food support for SNAP-related needs, food shelves, food grants, and prepared food. They also emphasized system modernization, especially IT upgrades, as both an implementation and anti-fraud measure. Leaders said several items appeared to have bipartisan support, including HCMC relief, the Office of the Inspector General, bonding, and IT modernization. They said they were arranging a meeting with House and Senate leaders and the governor to work through bonding differences, but noted that IT modernization and HCMC were unlikely to be financed through general obligation bonds this year. They also said the Senate would take up a bill on prediction markets after Sen. Klein’s recent platform suspension, describing the issue as a violation of platform rules and saying the chamber may need updated rules or statutes. In response to a question about an elections bill provision, they said the measure reaffirmed that a president should serve only two terms and that the language had moved through the normal committee process.

Transcript Highlights:

• for the Texas Energy Fund to ensure long-term reliability and resilience of the state's electrical grid
• And then just a broader conversation, because this is an infrastructure session, I think, from a grid
• technology in prison-based crime, from contraband cell phones to cryptocurrency transactions, we need modern

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• And all aim to focus investment on modern networks that benefit everyone.
• That is being driven by this modern market that we're in.
• And that for the future, modernizing capacity... modernizing a framework for telecommunications in California
• More modernized networks. Thank you. Appreciate it. I gotta keep that clock, so I apologize.
• A California must invest in modern high high-speed communications technology.

Keywords: 988, house, all

Transcript Highlights:

• The provisions condense and modernize.
• Members, um, do you have questions on the modernization of our policy?
• Members, um, do you have questions on the modernization of our policy?
• Members, um, do you have questions on the modernization of our policy?
• Members, um, do you have questions on the modernization of our policy?

Keywords: 918, senate, all

Summary: The Senate Committee on Rules and Administration met virtually on January 6, 2026, and took up four administrative policy items. Darren Hoff, Senate Human Resources Director, presented updates to the Legislative Coordinating Commission benefit book, including insurance changes tied to SEGIP, mental health and substance use office visit cost sharing, dental plan updates, dependent eligibility clarifications, a new voluntary legal services benefit, a 17% increase in Medicare premiums, and multiple leave-policy revisions to conform with the new paid leave law and other employment rules. Senator Pappas moved adoption of the benefit book with the LCC’s November 10, 2025 changes and staff technical corrections, and the motion passed. Secretary Tom Bern described a proposed Senate Policy 1.56 allowing written rules of conduct for visitors in Senate spaces, aimed at setting clear expectations for behavior such as not blocking hallways or using shouting and profanity, while being developed with consultation to address First Amendment concerns. Senator Marty moved adoption, and the committee approved the policy. Council Lexi Stangle then presented a change to Senate Policy 2.47 on severe weather emergencies that would allow employees who work remotely on severe weather days to accrue compensatory time with supervisor approval; Senator Johnson moved adoption, and the motion passed. The committee also considered a modernization of the Senate information systems policy. Secretary Bern and staff explained that the policy had not been substantially updated in about 20 years and was being condensed and updated to reflect current technology and practices. The revisions reduced the policy from 29 pages to 10, removed obsolete references, added a purpose statement, clarified email inspection and hardware/software procedures, updated website rules and accessibility guidance, and removed the secondary member page option. Senator Coleman moved adoption of the Senate information systems update, and it was approved. After the Rules Committee adjourned, the Subcommittee on Committees met and approved two appointments: one public member to the Legislative Citizen Commission on Minnesota Resources through December 31, 2030, and Senator Gustafson to the Financial Crimes Advisory Board Task Force. Members asked about the task force’s scope and the public appointee’s background; staff explained the task force advises on identity theft and financial crimes, and identified the public appointee as Sha Lang of Preston, Minnesota. Senator Pappas moved adoption of the appointment list, and the subcommittee approved it before adjourning.

Transcript Highlights:

• IT systems in the short term, trying to find ways that we can adapt and modernize our systems in the
• <00:37:47.440> IT<00:37:48.080> systems asking about modernizing IT systems asking
• be available for systems modernization. be available for systems modernization.
• in need of modernization or replacement. in need of modernization or replacement.
• recommendations on whether to modernize recommendations on whether to modernize something<00:40:

Keywords: 1187, senate, all

Transcript Highlights:

• Embracing the modern economy.
• yesterday uh embracing the modern yesterday uh embracing the modern economy.<00:54:19.599> Um
• And this bill respects the modern challenges, the modern opportunities of Minnesota agriculture.
• ,<01:00:46.799> the respects the modern challenges, the respects the modern challenges, the
• modern<01:00:47.200> opportunities<01:00:47.680> of<01:00:47.839> Minnesota modern

Keywords: 1187, senate, all

Transcript Highlights:

• The modern term is readiness center.
• The child support modernization.
• , modernized digital systems.
• ... ...and no longer meet modern reliability expectations.
• This one is for population and public health modernization.

Keywords: 928, house, all

Transcript Highlights:

• security we would like to have, energy independence, energy-efficient buildings help stabilize the energy grid
• occupied long after an event has knocked out the heating and cooling or taken it offline, such as a grid
• occupied long after an event has knocked out the heating and cooling or taken it offline, such as a grid

Keywords: 928, house, all

Summary: The committee first took up House Bill 216, which Representative Carol Maguire described as a fix to a workers’ compensation/retirement “glitch.” The bill would remove the current limit that only one year of workers’ compensation time can be credited as retirement service time. Maguire argued the limit is arbitrary and affects only a very small number of grievously injured workers, while committee members asked about the fiscal impact, available data, and whether the change could affect workers’ compensation rates or incentives. Mark Kavar of the New Hampshire Retirement System said Labor could not provide data on how many people exceed a year on weekly indemnity benefits, so the fiscal note used a conservative estimate that could be scaled down; he also explained that workers’ comp is not earnable compensation, which is why service credit stops after a year, and noted that many long-term cases move into disability retirement or lump-sum settlements. The committee closed the hearing, entered executive session, and voted ought to pass on HB 216 by a 13-0 roll call, sending it to consent and noting it would also go to Finance. The committee then acted on House Bill 85, adopting Amendment 0037 and then voting ought to pass as amended by another 13-0 roll call. The bill was described as allowing second-year respiratory therapy students to work under supervision using the skills they have already learned, with support from the Hospital Association and no opposition noted. Finally, the committee took up House Bill 267, the animal chiropractors bill. Members said the bill had been approved previously but was vetoed because of a defect; the problem has now been corrected, and the bill is intended to reduce delays caused by requiring veterinary referrals before chiropractors can treat animals. The committee voted ought to pass 13-0 and placed the bill on consent.

Transcript Highlights:

• I'm here to testify on an act to modernize funding for community media programming. I apologize.
• I ask that you take this step now to modernize the way these local services...
• We've modernized here at LCTV. Seth, I have to ask you to hurry up. Sorry, thank you.
• And we've modernized here at LCTB. Seth, I have to have to ask. We've modernized here at LCTB.
• Please modernize funding for media programming.

Keywords: 995, all

Summary: The committee held its second hearing on a large docket of technology, internet, cybersecurity, broadband, and media bills. Early testimony focused on community media funding legislation, with lawmakers and local access advocates arguing that as cable subscriptions decline and streaming grows, revenue tied to cable franchises no longer supports community television and PEG programming. Supporters said community media remains a key source of local news, government meeting coverage, and civic transparency as newspapers disappear or consolidate. A related bill on cable contract oversight also drew support, with testimony that the Department of Telecommunications and Cable is backlogged and should more actively review municipal-provider agreements and report its workload to the committee. Another major topic was a proposal to create a Massachusetts Innovation Fund for state IT modernization. The Alliance for Digital Innovation backed the bill, saying agencies need flexible upfront capital to replace outdated systems and improve cybersecurity, and pointing to the federal Technology Modernization Fund as a model. The witness noted that funding for the state program still needs to be identified. The committee also heard strong support for a bill requiring free broadband in public housing, with Rep. Emmela Goodwin and MAPC describing internet access as essential for jobs, school, telehealth, and civic participation. They said the digital divide in Massachusetts is driven largely by affordability rather than infrastructure, though questions were raised about costs, wiring, and whether all housing sites already have broadband access available at the curb. A substantial portion of the hearing centered on bills to limit addictive social media feeds for minors. Supporters, including lawmakers, parents, teens, and advocacy groups, argued that algorithmic feeds contribute to addiction, anxiety, body image problems, and other harms, and said the bills would restrict surveillance-based curation and overnight notifications while leaving search and followed accounts available. Opponents, including FIRE, CCIA, and the Taxpayers Protection Alliance, argued the bills would require invasive age verification, threaten privacy and cybersecurity, burden adults’ anonymity, and likely face First Amendment challenges. They also warned the measures could disadvantage smaller businesses and may be unconstitutional based on recent court rulings in other states. The committee also heard support for blockchain-related bills creating a commission, a pilot program, and consumer education efforts, with testimony that Massachusetts has the talent but needs a coordinated state strategy. No votes or final actions were taken during the hearing.

Transcript Highlights:

• AS WE KNOW FROM THE PRESENTATION OF THIS FX PROGRAM FROM LAST SESSION A HCA IS UNDERGOING AN IT MODERNIZATION
• I AM NOT NEW TO LEADING AN AGENCY UNDERGOING A MAJOR MODERNIZATION OVERHAUL OF ITS LEGACY SYSTEMS.
• ALL MEDICAID STATES ARE REQUIRED BY THE CENTERS FOR MEDICARE AND MEDICAID SERVICES TO MODERNIZE THEIR
• THIS IS IMPORTANT SINCE THIS MODERNIZATION EFFORT IS THE BRAINCHILD OF THE FEDERAL GOVERNMENT SO THEY
• IN EVALUATING THE MINIMUM VIABLE PRODUCT OF THIS MODULE WE ARE ALSO EXPLORING THE OPTION TO MODERNIZE

Transcript Highlights:

• Given the ages of the legacy programs, it is essential that these modernization efforts be prioritized
• And modernizing the triad, which we're in the middle of right now, is an expensive proposition.
• I refer to nuclear modernization as the pig in the budgetary python.
• Russia has modernized a majority of its nuclear arsenal.
• Commitment to modern modernization will ensure that U.S. strategic weapons continue to deter aggression

Keywords: military strategy, nuclear triad, deterrence, STRATCOM, SPACECOM, SLICOM, B-21, hypersonic defense, spectrum auction

Summary: The meeting focused on the strategic posture of U.S. military capabilities with an emphasis on deterrence amid growing global threats. General Cotton from STRATCOM and General Whiting from SPACECOM provided insights into the modernization efforts of the nuclear triad. Key discussions involved the importance of maintaining control over specific frequency spectrums critical for military operations and the implications of potential auctioning of these bands. Members expressed concerns regarding the evolving landscape with adversaries like China and Russia, emphasizing that swift action is needed to adapt and preserve U.S. national security. Various proposals and existing programs, including the B-21 bomber and the nuclear-armed sea-launched cruise missile (SLICOM), were debated, alongside the necessity of increasing military investment in hypersonic defense systems.

Transcript Highlights:

• And most of our peer institutions have modernized in the last decade.
• And most of our peer institutions have modernized in the last decade.
• And most of our peer institutions have modernized in the last decade.
• :47.600> by<00:31:47.840> integrating modernize our facilities by integrating modernize
• modern dental school?

Bills: HF4266

Keywords: higher education, state grants, financial aid, college affordability, Office of Higher Education, Minnesota State Grant, need analysis, expected family contribution, student aid, grant formula, living and miscellaneous expense allowance, dependent student, independent student, parental contribution, student contribution, surplus appropriation, biennium, summer 2026, 1183, house

Transcript Highlights:

• Two, to request restored funding for the Demand Side Grid Support Program and maintain CEC program oversight

Keywords: 987, senate, all

Summary: The subcommittee heard an overview of the May Revision from the Department of Finance and comments from the Legislative Analyst’s Office on the state’s overall budget condition and natural resources proposals. Finance said the May Revision keeps the budget balanced in 2026-27 and 2027-28, reduces the structural deficit, and includes major natural resources items such as Proposition 4 climate bond spending, including up to $125 million for the Golden Gate Fields acquisition, $23.2 million for wildlife refuge and wetland projects, $25 million for Healthy Rivers and Landscapes, $25 million for Bay-Delta environmental flows, $1 million for coexisting-with-wildlife work, and $2.5 million for cancer-risk research. The LAO said revenues remain strong but argued the budget still relies too heavily on reserves, recommended more savings and fewer new discretionary expenditures, and urged the Legislature to prioritize only urgent health and safety needs while planning for uncertainty in greenhouse gas reduction fund revenues. Members focused heavily on the Golden Gate Fields purchase, Healthy Rivers and Landscapes, the wildlife coexistence initiative, and cap-and-invest funding for transit. On Golden Gate Fields, agency officials said the property is a time-limited, once-in-a-generation opportunity, that the state’s contribution would help secure the acquisition, and that the land would ultimately transfer to East Bay Regional Park District, which would assume operations and maintenance. Officials said the site would be remediated by the current owner, the state would use deed restrictions to prevent commercial development, and the remaining purchase price would be covered by nonstate partners. On Healthy Rivers and Landscapes, Finance and the Natural Resources Agency said the $25 million would support scientific monitoring and early implementation of the Bay-Delta plan update, while the LAO questioned the timing and said the request was premature until the Water Board formally adopts the plan. The committee also discussed the coexisting-with-wildlife proposal and wolf-livestock conflict. Finance said the May Revision’s $1 million proposal would backfill existing funds to support limited-term staffing, deterrence tools, and conflict response, while members and the California Cattlemen’s Association said the need is larger and includes direct loss compensation, indirect loss compensation, and nonlethal deterrence. The Cattlemen’s Association said private insurance is limited and often inadequate for these losses. Members also raised concerns about the greenhouse gas reduction fund and transit, warning that lower auction revenues and possible CARB rule changes could leave major transit and other tier-three priorities underfunded. The LAO recommended planning for multiple revenue scenarios and reconsidering the current cap-and-invest spending framework. No votes or formal actions were taken in the hearing.

Transcript Highlights:

• our transportation programs, but also if you look at how this state has decarbonized the electricity grid

Keywords: 987, senate, all

Summary: The Senate Environmental Quality Committee and Senate Budget and Fiscal Review Subcommittee No. 2 held a joint hearing on CARB’s proposed amendments to the cap-and-invest regulations. Opening remarks from senators emphasized the 2025 reauthorization of the program through AB 1207 and SB 840, and focused on whether CARB’s April revisions faithfully implement legislative intent while balancing climate ambition, affordability, leakage prevention, and the Greenhouse Gas Reduction Fund (GGRF). Several senators raised concerns that the proposal could reduce GGRF revenues, weaken funding for transit, affordable housing, wildfire prevention, drinking water, and other community programs, and shift too much support toward industry. Others stressed the need to protect businesses and consumers from higher costs and to avoid leakage and refinery closures. Senator Cortese’s statement, read into the record, warned that the proposal could jeopardize transportation funding commitments. CARB Chair Lauren Sanchez said the amendments respond to legislative direction and public comment, and described four main changes: increased electric bill credits, a larger manufacturing decarbonization incentive (MDI), additional compliance support for industry, and removal of post-2030 allowance allocations from the current rulemaking. She said the proposal keeps the cap aligned with 2030 and 2045 targets, maintains affordability protections, and is intended to reduce emissions while minimizing leakage and supporting in-state jobs. CARB staff also said the MDI would have guardrails, require applications and reporting, and be tied to emissions-reducing facility upgrades. The Department of Finance explained that GGRF revenue estimates are highly uncertain and are updated periodically based on auction data. The Legislative Analyst’s Office said the amendments are significant and could materially affect environmental ambition, industry support, utility credits, and GGRF revenues. LAO highlighted that the MDI could add allowances above the cap, potentially reducing certainty that 2030 targets will be met, and noted that the proposal appears to shift more allowances to industry and fewer to GGRF than current regulations. LAO also said the proposed GGRF estimate of about $8 billion through the decade could be insufficient to fully fund lower-priority tiers of programs. In questioning, senators pressed CARB on whether the proposal would raise consumer costs, whether free allowances or MDI funds would actually lower prices at the pump, how leakage is measured, and whether the Legislature’s budget assumptions would need to be revised before final action. No votes were taken during the hearing; the discussion was informational and focused on questioning CARB and fiscal staff ahead of the board’s planned May 28 consideration of the amendments.