Transcript Highlights:

• The treatment plans, but you're saying that verifying they're using local match...
• The local match was always there. The million is coming from the locals.
• The treatment of plans, but you're saying that verifying they're using local max. plan. Right.
• The treatment of plans, but you're saying that verifying they're using local match.
• I mean, the local match was always there. The million is coming from the locals.

Summary: The Water Sector Commission met with a quorum and opened with a reminder that no funding had yet been appropriated for future project awards, so any discussion of upcoming grants was speculative until the legislature acts. The committee then approved the December 10 minutes and moved through a series of deadline extensions for Phase Two state-funded projects, including Delcambre, Faraday, Meyer Branch, and Waterworks District No. 1 of Pointe Coupee Parish. Members also approved a scope change for St. Tammany Parish Project 845 to relocate an unmarked fiber optic line discovered during construction. The committee spent substantial time on Tallulah’s water rehabilitation project, where Mayor Yubon Lewis explained that the city is trying to isolate and fund the purchase of four permanent media filters, plus related electrical work, from the original approved project scope. Members questioned whether the request was a true scope change or a way to use existing funds while the city continues to rely on temporary filtration and state-led triage. After discussion, the committee approved the request and asked to be kept informed as the state continues seeking additional support for the system. The committee also approved additional funding requests for Kaplan, Ponchatoula, St. Martin Parish, and West Allen Water Works. Ponchatoula’s request included multiple change orders tied to sewer and force main work, including emergency levee repair, equipment changes, and rerouting around unmarked fiber. St. Martin Parish’s increase was tied to land acquisition and added costs for a new well site in a multi-phase consolidation project. West Allen’s increase stemmed from a failed well drilling effort and was supported by cost reductions from the contractor and engineers, which members treated as in-kind match. In contrast, Tensaw Water Association’s very large request to consolidate Newellton drew significant concern over cost growth, scope, and timing; after extensive questioning, the committee deferred that item to the next meeting for further review. The meeting ended with an update that about 42.11% of ARPA funds remain, 16 projects are now considered high risk, and staff will continue ground-truthing project status and pushing ARPA dollars out first before adjournment.

Transcript Highlights:

• They haven't implemented the plan, but that is their intent to implement this plan in order to become
• And so now we're going to go to the local calendar, local bill calendar.
• And to me, it's our local elected officials who are the ones who are there to protect us and plan for
• And to me, it's our local elected officials who are the ones who are there to protect us and plan for
• You take into account the effect on the effect on the people, you take into account the effect on the

Transcript Highlights:

• There should be accountability.
• It simplifies the payment plans by and large.
• So rather than having something like seven or more plans, they come down to two plans.
• It's up to local priorities and reassures us that local health department workers weren't just essential
• It's up to local priorities and reassures us that local health department workers weren't just essential

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held its fifth hearing of the year to examine the newly enacted federal H.R. 1 and its effects on California. Members and the chair described the law as a major threat to state health, food, education, and climate programs, and emphasized that California would not be able to fully backfill the federal cuts. Several members also highlighted the bill’s tax provisions, including temporary deductions for tips, overtime, seniors, and auto loan interest, while warning that the largest benefits flow to higher-income taxpayers and that major cuts to Medi-Cal, CalFresh, and clean-energy incentives are delayed or phased in over time. The Legislative Analyst’s Office and the Department of Finance presented detailed overviews of the bill’s likely impacts and implementation timelines. They identified the main affected areas as health care coverage and financing, food assistance, higher education, personal income taxes, and clean-energy/electric-vehicle credits. They explained that H.R. 1 limits provider taxes used to finance Medi-Cal, adds work and redetermination requirements, restricts CalFresh eligibility and increases state costs, changes student loan and Pell Grant rules, extends and modifies federal tax provisions, and phases out many clean-energy credits. Finance also noted major rescissions of Inflation Reduction Act funds, new border and immigration enforcement spending, and the possibility of PAYGO sequestration if Congress does not act to offset the deficit increase. During member questions, the committee focused on likely enrollment losses, administrative burdens, and fiscal exposure for the state and counties. Witnesses said many details still depend on federal guidance, but they estimated significant impacts on Medi-Cal, CalFresh, and graduate/professional student borrowing, and noted that California’s high CalFresh error rate could increase state costs. UC testified that the elimination of Graduate PLUS loans would affect thousands of professional students, especially in health, law, and other high-cost programs. Members asked for follow-up data on county, health, and tax impacts, and staff agreed to provide additional tables and estimates as implementation guidance becomes clearer. Public commenters from counties, early childhood advocates, health coalitions, disability rights groups, immigrant-rights organizations, and other stakeholders urged the Legislature to mitigate the law’s effects. They warned of higher county costs, reduced access to health care and food assistance, increased administrative burdens, and harm to children, immigrants, people with disabilities, and low-income families. Several urged new state revenue solutions and stronger protections for Medi-Cal, CalFresh, child care, and home- and community-based services. No votes were taken; the hearing was informational and ended with a commitment to continue monitoring federal guidance and to work on state responses in the budget process.

Transcript Highlights:

• For example, local comprehensive plan updates by cities and counties are non-project actions.
• Planned actions are not an exemption, but a local option to do SEPA in advance.
• Local government adopts a planned action.
• You might refer to this as a safe haven from appeals for local action required from various planning
• Also, there are local governments that have implemented pre-approved middle housing plans.

Committee: House Local Government

Summary: The committee heard presentations on the State Environmental Policy Act (SEPA) and recent permitting reforms affecting local governments. Department of Ecology staff explained SEPA’s purpose, the review process, exemptions, planned actions, and recent housing-related changes, including transit-oriented development exemptions and SEPA appeals protections for certain local ordinances. Members asked about repeated SEPA reviews, cultural and historic resource review, and how SEPA interacts with NEPA. Seattle’s Department of Construction and Inspections said recent SEPA exemptions have reduced the number of reviews for residential projects and supported more housing permitting, and the city is considering raising exemption thresholds further. The State Building Code Council provided an update on code adoption timelines and implementation of legislative housing measures. Council staff said the 2024 code cycle is delayed administratively, with final adoption moved to May 15, 2026 and implementation targeted for May 1, 2027 unless legislative or administrative changes allow the current November 1, 2026 implementation date to remain. They also reported progress on code updates for single-stair buildings, multiplex housing, dwelling unit size, and temporary emergency shelter standards, with draft language underway. The committee then reviewed recent permitting legislation and implementation. Commerce staff summarized bills from 2023 and 2025 that set permit processing deadlines, limited pre-application requirements, restricted design review to clear and objective standards, changed historic designation rules, and expanded middle housing, ADU, lot split, passive house, self-certification, transit-oriented development, and parking-related requirements. Commerce also described its studies, guidance, grants, and reporting work under SB 5290, noting that 2024 data showed mixed performance and that local governments need better checklists, digital tools, staff training, and clear application standards. Issaquah and Kitsap County described local efforts to streamline permitting through code updates, pre-application meetings, software improvements, and a 2x6 review process, while also warning that staffing shortages, complex site conditions, coordination with state agencies, and reporting burdens continue to slow permits. No votes were taken.

Transcript Highlights:

• Community colleges will still be required to comply with CEQA, consult with their local planning department
• But can they override the local? If local says we don't want it?
• But it can override the local? Can they override the local with this?
• project plans, all activities included in the plan, and the planned expenses associated with those activities
• Each college ensures project plans are aligned with regional priorities and informed by local labor market

Summary: The committee first adopted its 2025-26 rules on a 7-0 roll call, then approved three consent items—AB 88, AB 240, and AB 313—on a due-pass motion to Appropriations. The hearing then moved to AB 648, which would give community college districts the same zoning authority as the UC and CSU systems to build student and staff housing on property they own or lease. The author and supporters argued the bill would help address severe housing insecurity and homelessness among community college students, while opponents and some members raised concerns about local control, zoning exemptions, and the impact on nearby communities. AB 648 passed the committee on a 5-2 vote and was sent to the Local Government Committee. The committee next heard AB 466, which would require California Community Colleges and CSU campuses to provide organ and tissue donor registry information during student orientation, and request UC campuses to do the same. Supporters shared personal stories about transplants and donation, saying college orientation is a good opportunity to increase registrations. Some members worried about information overload during orientation and suggested campuses have flexibility in how they present the material, but the bill advanced on a unanimous 7-0 vote to Appropriations. AB 326 followed, proposing campus-by-campus external audits of the CSU every three years and public release of the audits. The author, faculty supporters, and a student argued that systemwide audits do not provide enough transparency about how money is spent at individual campuses, citing examples of financial mismanagement and fee increases. CSU opposed the bill, saying it already conducts annual consolidated external audits and that campus-level audits would add cost without added benefit. After extensive discussion about transparency, audit scope, and implementation, the bill passed 6-1 to Appropriations. The committee then took up AB 335, which would create a California Black-Serving Institution Grant Program to support Black student success and broader underserved student services; supporters emphasized persistent equity gaps and low completion rates, while an opponent argued the bill needed to be carefully amended to comply with Proposition 209 and equal protection requirements. The transcript ends during that item’s discussion, before a final vote is shown.

Transcript Highlights:

• bad actors accountable.
• The first item is $957,000 for critical staffing to enhance union accountability.
• and rate accountable to that process.
• they are being transparent and accountable.
• they are being transparent and accountable.

Committee: Senate Appropriations Committee on Agriculture, Environment, and General Government

Summary: The committee first took up confirmation of five water management district appointees: Ted Everett and Jerome Pate to the Northwest Florida Water Management District, Michael Romano to the Big Cypress Basin Board of the South Florida Water Management District, and Paul Bissfam, John Hall, and Virginia Johns to the Southwest Florida Water Management District. Senator McClain moved confirmation, the roll was called, and the committee recommended all appointees favorably. Members then received the Governor’s Florida First budget presentations for environmental agencies. The environmental package totaled about $5.8 billion and emphasized Everglades restoration, water quality, resilience, land conservation, state parks, hazardous waste cleanup, wildlife management, wildfire response, and citrus support. DEP highlighted more than $1.4 billion for water resources, including $810 million for Everglades restoration, $202 million for Resilient Florida, $150 million for Florida Forever, $70 million for state parks, and $221 million for contamination cleanup. FWC, Agriculture, and Citrus funding priorities were also outlined. Members asked about Florida Forever funding, state park wastewater and septic needs, a reduction at the Florida Wildlife Research Institute, and beach renourishment funding for storm damage. The committee also heard the General Government portion of the budget, which totaled about $2.9 billion and covered DBPR, Lottery, Financial Services, Management Services, Revenue, PERC, and the Gaming Control Commission. DBPR requested funds for license processing, an animal abuse hotline, fleet replacement, and IT retention. FGCC sought new enforcement squads and an IT licensing/enforcement system. The Lottery proposed marketing, retail engagement, IT, and retention funding. DMS emphasized building modernization, fleet telematics, 911 and radio upgrades, cybersecurity, a local government cybersecurity grant program, and data interoperability. PERC described a sharp increase in labor cases and elections after SB 256 and requested staffing, election administration, and hearing officer pay increases. DFS highlighted My Safe Florida Home, fire marshal and first responder support, financial investigations, and gold and silver legal tender implementation. Revenue requested operational and IT funding and support for fiscally constrained counties. Questions focused on DBPR’s condo and HOA initiatives, cybersecurity grant reductions, and the My Safe Florida Home program’s abandoned grants and matching requirements. No additional votes were taken, and the committee adjourned.

Transcript Highlights:

• It gives local governments more time and flexibility to update their truck routes, exempts local governments
• SB 42 will enact local control for local governments by placing a measure on the November 2026 ballot
• These significant accountability concessions, These significant accountability concessions were made
• The currently written proposed accountability framework does not include the enforceable accountability
• In my Transportation Committee, we took some recent amendments that require even enhanced local accountability

Summary: The Assembly convened after a quorum call, prayer, and Pledge of Allegiance, then moved through a long floor session focused largely on concurrence votes on Senate amendments and a few budget-related motions. Early procedural actions included a failed motion to send AB 1207 to the inactive file, approval of motions to take up Senate amendments without reference to file, and recesses for dinner and committee meetings. The chamber also heard several guest introductions and brief ceremonial remarks, including birthday acknowledgments and recognition of interns and visitors. Members then considered and passed a series of measures on topics including armory property transfers (SB 855), data center electricity impacts (SB 57), carbon capture pipeline transport (SB 614), health budget trailer bills (AB 144 and AB 149), and a Black Caucus higher-education bill allowing institutions to consider descendants of enslaved people in admissions (AB 7). The Assembly also concurred in numerous Senate amendments on bills covering community college nursing programs (AB 1400), public health, signage for the Los Angeles Convention Center, gambling, social media warning labels for children, housing plan-check timelines, small business disaster recovery, wildfire mental health services, antitrust enforcement, foster care kinship placements, housing stability, AI cybersecurity, emergency services, and school nutrition standards. Most of these measures passed with little or no opposition, though a few drew dissenting votes or brief debate over policy details. The most extended debate came on SB 274, which would limit retention of automated license plate reader data to 60 days unless tied to an investigation. Supporters argued it was needed to protect privacy and prevent misuse of sensitive location data, while opponents said it would hinder law enforcement and crime-solving. The transcript cuts off during that debate, so no final vote is shown for SB 274 in the provided text. Earlier and later votes recorded in the session showed broad support for many bills, with several measures passing unanimously and others receiving modest no votes, and some urgency measures being sent immediately to the Governor or the Senate after concurrence.

Transcript Highlights:

• Good morning, everyone, and welcome to Local Government. It's Friday.
• Now, I'm all about local government, and we all are.
• We all want to have our own urban forestry plans.
• But that's accountability by the public in action.
• two levels of a high degree of accountability.

Summary: The House Local Government Committee heard public testimony on HB 2588, which would let county ferry districts exercise broader authority over ferries rather than being limited to passenger-only ferries. The sponsor and county officials from Whatcom, Pierce, and Skagit described rising operating and capital costs for county-run vehicle ferries and said the bill would give local governments a needed funding tool. Opponents argued it would create another tax burden and that county councils do not directly represent voters on such decisions. The hearing on HB 2588 was later reopened for additional testimony, but no vote was taken in the hearing portion. The committee also heard HB 2094, which would require non-charter counties to appoint coroners rather than elect them, unless they use appointed medical examiners. The sponsor said the bill was intended to address accountability and staffing problems, citing Yakima County as an example and arguing that coroner positions are technical and should be filled through hiring rather than partisan elections. Supporters said appointment would reduce ballot complexity and allow for professional management, while opponents, including elected coroners and the Washington Association of Coroners and Medical Examiners, argued that elected coroners provide independence, public accountability, and the ability to order inquests without political pressure. The public hearing on HB 2094 was closed without committee action during the hearing. In executive session, the committee advanced several bills. HB 2451 on local tax increment financing passed with three adopted amendments and a 7-0 vote. HB 2298 on county title protection programs also passed with one adopted amendment and a 7-0 vote. HB 2566 on local government procurement passed 7-0 without amendment. HB 2267 on urban forest management ordinances passed 4-3 after a substitute was adopted, with some members expressing concern about state guidance becoming too regulatory. HB 2530 on public facilities districts for regional aquatics and sports facilities passed 7-0 after removing the deadline for forming such districts, and HB 2388 on siting distributed energy generation on agricultural lands passed 7-0 after an amendment narrowing the bill’s scope. The committee then returned to public testimony on HB 2094 and HB 2588 before adjourning.

Transcript Highlights:

• See, a label is not a plan.
• I would guess, you know, local control. It allows those local school districts to make changes.
• on that plan.
• So you're making it so that local control, the local government has no say.
• That destroys local control. Yeah.

Transcript Highlights:

• </c> bill does, it creates a local bill does, it creates a local accountable<00:05:28.240><c> a</c><00
• :05:28.560><c> local</c><00:05:29.440><c> accountable</c><00:05:29.919><c> tool</c> accountable a local
• accountable tool accountable a local accountable tool called<00:05:30.400><c> the</c><00:05:30.639><
• </c><00:29:53.200><c> The</c><00:29:53.360><c> account</c> in our deferred comp plan.
• The account in our deferred comp plan.

Committee: Joint Finance

Transcript Highlights:

• Redmond is accountable to three different authorities in its adoption of its comprehensive plan.
• plans.
• and their funded plans.
• facility plan into its plan.
• plan is looking forward.

Committee: House Local Government

Summary: The committee heard a series of presentations on comprehensive plan implementation, permitting reform, and subdivision and infrastructure coordination. Pierce County and the City of Redmond described their recent comprehensive plan updates, emphasizing major efforts to add housing capacity, middle housing, transit-oriented development, climate and shoreline protections, and preservation of existing affordable housing. Both jurisdictions said the work took years and required extensive public engagement, and both stressed that frequent statutory changes, late-issued state guidance, and overlapping review requirements created “implementation fatigue” and added cost and delay. Redmond in particular said mid-course legislative changes forced supplemental environmental review and additional analysis, while Pierce County asked for more technical assistance and more consistent guidance across agencies and neighboring jurisdictions. On permitting, an architect from AIA Washington, WABO, and the Master Builders Association argued that delays in plan review and subdivision approvals are a major driver of housing costs. They described long review timelines, repeated comment cycles, and inconsistent local processes as barriers that increase financing, labor, and weather-related costs and can cause projects to stall or be canceled. Proposed solutions included provisional or phased approvals for certain housing projects, stronger use of pre-application meetings, clearer and more objective standards, self-certification by licensed professionals in limited cases, and limits on repeated review cycles. WABO and local officials cautioned that pre-application and phased-review processes can help but require staff time and careful coordination, and they noted that many delays actually arise earlier in land use, environmental, or utility review rather than the final building permit stage. The Department of Commerce and consultant Clay White presented preliminary recommendations from a task force on integrating special purpose districts into Growth Management Act planning. The task force recommended earlier and broader notification of water, sewer, school, port, and other service providers during countywide planning policy updates, comprehensive plan amendments, permit notices, and grant applications; better coordination of utility and transportation capital projects; possible GIS tools to share capital facility plans; more regular updating of coordinated water system plans; and stronger alignment of school siting and funding with anticipated growth. They said the recommendations were intentionally light-touch because local governments are already absorbing many new requirements and because independent districts are reluctant to give up decision-making authority. Finally, FutureWise and the City of Spokane discussed subdivision reform. They supported administrative approval of subdivisions in urban growth areas, retention of key notice and access protections, and clearer rules for exemptions such as boundary line adjustments and estate-related lot divisions. Spokane described local reforms such as smaller minimum lot sizes, unit lot subdivisions, and reduced-process short plats for simple infill, while warning against additional notice requirements and appeals to city councils for technical plat decisions. Speakers repeatedly urged the committee to avoid adding major new mandates while local governments are still implementing recent housing and planning laws.

Transcript Highlights:

• And one of my favorite parts is a new planning and accountability system for our metropolitan planning
• We can't just decide that, you know, our local service provider, FDOT cannot decide that the local service
• But we have those planning councils in place.
• Everybody kind of lays their plans on the table.
• Is it the locals?

Summary: The Economic Infrastructure Subcommittee heard several transportation and infrastructure bills. HB 1239, Energy Infrastructure Investment, would let the Public Service Commission create a mechanism for utilities to recover costs for renewable natural gas infrastructure; supporters said it could diversify energy supply and help agriculture, while members raised concerns about consumer rates and asked whether savings from RIN credits should be passed to customers. The bill drew supportive public testimony and was reported favorably after debate, with members noting the PSC would set costs and that the sponsor was open to further discussion on consumer protections. The committee then took up HB 313, which exempts Purple Heart recipients from paying Florida tolls. With no questions or opposition, it passed unanimously. The committee also considered HB 567, a broad transportation omnibus/strike-all bill covering EV tax revenue for roads, airport and MPO changes, workforce funding, traffic signal modernization, speed limits, and a pilot to streamline airport permitting. A major amendment added utility right-of-way notice, response, and incentive/penalty provisions, and another amendment authorized local governments to set age and ID rules for e-bikes, scooters, and other micromobility devices after testimony about a fatal crash. The bill was reported favorably after extensive debate and public testimony from transportation and utility stakeholders. HB 112, dealing with municipal sewer collection systems, would allow cities to use sewer revenues to expand wastewater infrastructure. Sponsors said it was aimed at helping cities like Hollywood reduce septic use and improve water quality; testimony supported the measure as a way to unlock funding for sewer expansion, and the bill passed unanimously. The committee also approved HB 7009, preserving public records and meeting exemptions for 911 and public safety radio communications systems and expanding them to next-generation 911. Finally, PCS for HB 1397, a large transportation package addressing airport, seaport, spaceport, and workforce issues, was amended and passed 14-1 after questions about federal testing notifications, removal of certain business preference language, and a provision redirecting some transit funds to highway projects if not timely used.

Transcript Highlights:

• It focused on making sure that local governments had that plan in place for what they're going to do
• It renders local comprehensive plans, particularly any capital improvement plans, potentially meaningless
• It renders local comprehensive plans, particularly any capital improvement plans, potentially meaningless
• To that point, the required state Resources that would otherwise be accounted for by local government
• by local planning boards, or any public hearings, and there's no review or approval by the Board of

Summary: The committee heard and advanced several bills. SB 330, by Sen. Bradley, clarified the heart disease presumption for firefighters, law enforcement, and correctional officers, including allowing a prior physical exam to count if a transferring officer is not given a new one; an amendment declaring the act an important state interest was adopted, and the bill passed favorably. SB 594, by Sen. Burton, would make mobile home residents eligible for local housing assistance programs such as SHIP for lot rent and home repairs; it received supportive testimony from manufactured-home advocates and passed favorably. SB 840, by Sen. DeSigley, revised hurricane-related land-use restrictions from prior legislation by shortening the affected area from 100 miles to 50 miles, ending certain temporary limits on June 30, 2026, and exempting some water, flood, and state/federal planning matters; it passed favorably after supportive comments from local-government interests and members noting the need to fix unintended consequences of prior law. The committee also approved SB 526, by Sen. Grawe, which addresses no-damages-for-delay clauses in public construction contracts, creates a uniform commercial permit application, requires permit fee reductions when private providers are used, and adds mitigation to statewide product approval categories. County representatives testified with concerns about the contracting language, unfunded mandates, and fee reductions, but the bill passed favorably. SB 504, by Sen. Burgess, creates a statewide framework for code inspector body camera use, and SB 506, its linked public-records bill, exempts certain sensitive content from disclosure; both passed favorably with support from the sponsor and no opposition in committee. The most heavily debated measure was SB 354, by Chair McLean, which creates a “blue ribbon project” framework for very large developments that trade state preemption over local land-use regulation for reserving at least 60% of the land for conservation, agriculture, recreation, utilities, and related uses. The bill drew significant testimony from environmental groups, counties, smart-growth advocates, and local residents who argued it could weaken local control, reduce public review, and allow sprawl or inadequate infrastructure planning; supporters argued it could help address housing needs and preserve large amounts of land. The committee adopted two amendments clarifying reserve-area easements and requiring certain easements to be granted without charge, and the committee then reported the bill favorably, with some senators noting they supported it in concept but wanted further changes before later stops.

Transcript Highlights:

• And we're getting the pressure as local Assembly members, local members of our local government, what
• And we're getting the pressure as local assembly members, this local members of our local government,
• implementation of those rules, just through the mechanism of HCD's oversight of local land use planning
• the mechanism of HCD's oversight of local land use planning, right?
• So it is very unique for an economic development plan to so prominently call out local-serving sectors

Summary: The committee held an information hearing on California’s economy and household affordability, with the first panel focusing on inflation, housing, energy, wages, and the likely effects of new federal tariff policy. PPIC’s Sarah Bone said Californians remain deeply pessimistic about the economy, with inflation the main driver of concern; she noted prices are still about 23% higher than in January 2020, with especially large increases in food, energy, and housing costs. LAO’s Brian Euler emphasized that housing is the largest household expense and pointed to insurance, electricity, gasoline, and health care as other major cost pressures, urging the Legislature to review whether existing policies are actually reducing costs and to consider studies of why recent housing laws have not produced more units. UC Davis economist Catherine Russ warned that tariffs on China, Canada, Mexico, and potentially broader imports could raise consumer prices, disrupt supply chains, and hurt California exporters, farmers, and small businesses; she suggested monitoring prices, strengthening food assistance, and preparing transition support for affected workers and producers. Members pressed the panelists for concrete, near-term policy ideas, especially on housing and tariffs. Questions centered on whether accessory dwelling units are making a meaningful dent in affordability, how to improve implementation of pro-housing laws at the local level, and how to measure the impact of tariffs on consumers, health care, and agriculture. Panelists said ADUs help but are limited, that state laws can be undermined by local implementation and litigation, and that tariff effects may show up quickly in prices and later in hiring and investment. Several members stressed that the tariff issue is not a minor disruption for constituents and asked for more data on consumer impacts, food aid needs, and crop-specific farm losses. The second panel shifted to regional economic development and small business support. Go-Biz’s Derek Kirk described California Jobs First and the state economic blueprint as a first-in-decades, regionally informed strategy to create good-paying jobs, support key sectors, and align workforce and business development across 13 regions. The California Association for Local Economic Development’s Gerbach Sahota argued that local governments need practical tools, stable policy, and stronger partnerships with the state, while warning that prosperity is not always perceived as shared and that rural communities can be left behind. He urged the Legislature to use hearings, local input, and existing funding streams more effectively, including for recovery and infrastructure. David Fitzgerald of the Small Business Development Centers said California’s SBDC network serves hundreds of thousands of clients, many of them women and historically underrepresented entrepreneurs, and has generated billions in economic impact, capital access, revenue, and jobs. He said the biggest gaps are outreach to the state’s many self-employed businesses with no employees, better labor data on those workers, and more flexible support for direct services. Committee members then asked what small businesses need most in the face of inflation and tariff shocks, including lower licensing costs and other relief, and the discussion continued on how to better target state support to businesses and households under pressure.

Transcript Highlights:

• Keep pricing and benefit plan designs affordable.
• With 5.2 million people covered by Taft-Hartley plans, we estimate 340B will drive up plan costs by $416
• to your plan, correct?
• Those dollars leave the local community. They go to pharma.
• Small local pharmacies simply cannot compete.

Summary: The committee first heard House Bill 2437, which would put the Department of Health’s authority to accredit opioid treatment programs into statute and allow the department to set a fee to cover the cost of those services. The prime sponsor and DOH said the bill would preserve a service that is especially important to tribal and rural providers and would be self-sustaining rather than supported by the general fund. Members asked about the relationship between DOH and HCA and whether the bill would duplicate existing authority; staff and the department said DOH already performs the accrediting role and the bill mainly formalizes that authority and fee-setting power. Public testimony on the bill was then closed. The committee then held an extensive work session on the federal 340B drug pricing program and later opened public testimony on House Bill 2145, which would prohibit manufacturers, distributors, and third-party logistics providers from restricting 340B drug acquisition or delivery and from requiring claims or utilization data as a condition of access. Committee staff and NCSL gave background on how 340B works, recent growth in the program, contract pharmacy issues, and state efforts in other jurisdictions. Testimony on HB 2145 was sharply divided: hospitals, community health centers, tribal representatives, contract pharmacies, and labor groups said the bill would protect safety-net providers, rural access, HIV and behavioral health services, and tribal programs from manufacturer restrictions; business groups, pharmaceutical companies, and employer coalitions argued the program has expanded beyond its original intent, lacks transparency, shifts costs to employers and taxpayers, and should be addressed through federal reform instead. No vote was taken in the excerpt. Finally, the committee heard House Bill 2155, which would bar non-human entities from using nursing titles such as RN, APRN, or LPN or otherwise implying they are licensed nurses. The prime sponsor said the bill is intended to protect patients from being misled by AI systems and to preserve transparency and public safety as health care technology expands. The Washington State Nurses Association testified in support, saying AI can be useful but should not replace nurses or be presented as a licensed professional. A member asked about enforcement and liability, and staff said they would follow up on those details.

Transcript Highlights:

• beginning in plan year 2028.
• It's accounting.
• It's accounting.
• It's an extra step, but it's just an accounting procedure.
• It reduces the percentage of local government infrastructure costs to be reimbursed to the local jurisdictions

Summary: The meeting covered a series of fiscal year 2027 budget and budget-related bills, beginning with the general appropriations and tax package. Staff and the chair highlighted a budget built around about $1.4 billion in tax cuts, a one-time 2.5% agency reduction, major funding for state employee health insurance, corrections, flood and wildfire relief, and other supplemental appropriations. The chair repeatedly urged support for the package, emphasizing the size of the tax cut and noting that the committee’s joint vote had only three no votes out of 28 members. Members then reviewed several smaller budget implementation bills affecting racing and gambling, capital outlay, commerce and defense innovation, corrections, environment and water policy, higher education, human services, K-12 education, county finance, tax administration, state data governance, and state office rent rates. Key provisions included extending or modifying funds and fee structures, transferring surplus or unneeded monies, creating or revising oversight boards and pilot programs, increasing K-12 funding by 2% for inflation, adjusting university retention limits, expanding SNAP and housing-related requirements, and changing tax conformity and credits. Several members asked clarifying questions about specific items such as electric vehicle charging funds, mobile home relocation payments, university funding, and the new health insurance oversight board. The chair also explained the tax bill’s major changes, including conformity to federal tax law, a larger dependent tax credit, changes to deductions, repeal of certain tax credits, veteran property tax relief, limits on data center tax incentives, and provisions affecting manufacturing infrastructure and unemployment insurance administration. The committee discussed the Budget Stabilization Fund, debt repayment, and education rollover balances, with the chair arguing for using surpluses to pay down debt. The final item discussed was a behavioral health bill creating a home and community-based services program for adults determined to be seriously mentally ill, with a stated FY 2027 total fund appropriation of $7.8 million contingent on federal approval and matching funds. The meeting ended with a reminder that floor action would begin the next day at 10 a.m.

Transcript Highlights:

• Local governments to engage in planning to develop strategies for a clean energy future.
• planning processes and allows them to build on existing plans rather than develop new ones.
• To support local governments in identifying potential charging sites and resolving local permitting,
• AB 39 will direct local governments to identify and address local barriers to building electrification
• Mario Berrigan, IBEW Local 11, Los Angeles, in strong support.

Summary: The committee heard several energy and utilities bills, with testimony largely focused on wildfire mitigation, affordability, clean energy planning, and utility accountability. AB 706, by Assembly Member Aguiar-Curry, would create a fund to support projects that use forest biomass waste from wildfire mitigation and forest restoration; supporters said it would reduce open burning and emissions while providing reliable renewable power, and the bill later passed 13-0. AB 39, by Assembly Member Zbur, would require larger cities and counties to adopt electrification planning strategies for transportation and buildings; it drew broad support from clean energy, labor, environmental, and local government advocates and passed 9-0. AB 1167, by Assembly Member Berman, would restrict investor-owned utilities from charging ratepayers for lobbying, promotional advertising, and similar shareholder-benefit expenses; supporters framed it as an affordability and transparency measure, while utilities argued the bill was overly broad and already covered by existing rules. It passed 7-0, with some members not voting and the roll left open. The committee also considered AB 1417 on offshore wind community funding transparency, which was amended to remove new fees and instead require reporting on developer support for local and tribal community capacity-building; opposition was withdrawn and the bill passed 9-0. AB 367, by Assembly Member Bennett, would require water districts in high fire-risk areas of Ventura County to have backup power, full tanks during red flag warnings, and hardened facilities; water agencies opposed unless amended due to cost and liability concerns, but the bill passed 10-0. The consent calendar, including multiple additional measures, was approved 11-0. Other bills drew more divided testimony. AB 745 would allow securitization to finance utility undergrounding and prohibit a return on equity for undergrounding projects; supporters said it would lower ratepayer costs, while utilities warned it would effectively discourage undergrounding and could raise other rates. The bill passed 7-4 and was left on call. AB 1423 would apply reliability standards to publicly funded EV chargers installed before 2024; supporters said taxpayers should get functioning chargers, while charging-network representatives objected to retroactive requirements and possible conflicts with existing agreements. It passed 13-0. AB 388 would create a narrow exception to utility regulation to facilitate green hydrogen projects using private power lines; supporters said it would unlock low-cost renewable hydrogen and jobs, while utilities raised concerns about customer protections and grid planning. It passed 12-0. The committee also began hearing AB 825, which the author said would address the high cost of financing major transmission and generation buildout, but the transcript cuts off before the full presentation and action on that bill.

Transcript Highlights:

• control and compliance with local regulations, particularly around projects that cause local residents
• control and compliance with local regulations, particularly around projects that cause local residents
• Unfortunately, SB 254 undermines local control by eliminating local government's involvement and input
• We also recognize the importance of local input and local collaboration as these projects are being sited
• Voters want accountability for these crimes.

Summary: The chamber reconvened after a late-night session and first adopted the consent calendar, including ACR 107 on the Diablo Range, by a 48-0 vote. Members then took up several Senate bills and Assembly measures, with repeated remarks about the long hours and the need to respect staff and keep proceedings moving. A vote change was also announced for Assembly Member Patel on SB 414, changing from aye to not voting. The main policy debate centered on energy, climate, and affordability. SB 237, dealing with oil and gas policy, refinery closures, pipeline safety, Kern County permitting, gasoline blend flexibility, and regional fuel coordination, drew strong support from members who framed it as a managed transition to stabilize fuel supply and protect jobs, and strong opposition from members who called it a giveaway to oil interests and a setback for climate goals. The bill passed 59-0. SB 254, an energy affordability and wildfire package, included wildfire mitigation financing, a successor wildfire fund, transmission cost reductions, clean energy permitting changes, and energization timelines; members raised some concerns about local control, but the bill passed 58-0. SB 840 and AB 1207 advanced the cap-and-invest reauthorization package, with supporters emphasizing emissions reductions, housing, transit, wildfire prevention, and community air programs, while opponents argued it would raise costs and function as a tax-and-spend scheme. SB 840 passed 54-15 and AB 1207 passed 55-10, both with urgency and immediate transmittal. Members also approved SB 352, which makes the Bureau of Environmental Justice permanent and requires air quality monitoring and reporting on AB 617 implementation, by 43-19. AB 825, authorizing California to help establish a Westwide electricity market, was presented as a way to lower bills, improve reliability, and reduce emissions; it passed 67-2 and was sent to the Governor. Additional actions included concurrence in Senate amendments to AB 8 on cannabinoids and AB 383 on firearms cleanup, and the chamber began consideration of AB 764 on wildlife as the transcript ended.

Transcript Highlights:

• strategic initiatives and local highway projects.
• local.
• So about $110 million of that will not be going out to locals for local roads.
• Sometimes they're retained in the account.
• And Disney Plus accounts and trips were all listed in there.

Summary: The Joint Finance-Appropriations Committee opened the session with roll call, confirmed a quorum, and introduced new members, staff, and pages. Co-chairs and staff then reviewed JFAC’s role as the legislature’s main budget committee, the committee’s daily schedule, and the resources available through legislative staff, the impact team, and the newly released 2026 Legislative Budget Book and related budget tools. The committee received a detailed briefing from the Division of Financial Management on the JFAC calendar and then from Governor’s Budget Director Lori Wolf on the governor’s FY 2026 and FY 2027 budget recommendations. Wolf said the budget is balanced but tight, relying on a mix of ongoing reductions and one-time actions rather than reserve fund transfers. Major budget actions included a 3% ongoing reduction across most state agencies, reversions of certain one-time balances to the general fund, no recommended pay increase for state employees or teachers, and higher employee health insurance costs. The budget also proposed reductions or policy changes in Medicaid, virtual school funding, Idaho Digital Learning Academy, and some transportation and water-related funds, while preserving funding for public safety, education, water, and transportation priorities. Members questioned the assumptions behind the budget, especially the projected ending balances, the use of one-time transfers, the impact of rising health insurance costs on employees, the effect of Medicaid cuts on services and cost shifts, and the rationale for reductions to online education and IDLA. Several members also asked about the proposed federal tax conformity changes, including the timing of implementation and the treatment of Idaho’s existing R&E tax credit. Wolf said the conformity estimate was based on Tax Commission analysis and that the administration was not recommending use of the budget stabilization fund. No votes or formal actions were taken; the committee concluded by noting that the Economic Outlook Committee would meet later in the week and that JFAC would continue budget hearings the next day.

Transcript Highlights:

• plan for specific local site conditions and applicability of criteria used in the plan design.
• government for streamlined local implementation, and each planning county or city must adopt the model
• Many counties are already implementing pre-approved plans locally, and we don't want to duplicate or
• Jurisdictions still review site plans, foundations, and local conditions.
• A fully planning city or county must ensure local development regulations allow for the construction

Summary: The committee heard public testimony on several housing-related bills. On SB 6054, Senator Hunt’s bill to prohibit common-interest community rules from blocking wildfire home-hardening materials, staff explained that HOA and condominium governing documents could still impose reasonable aesthetic rules, but not ones that make fire-resistant materials infeasible or more than 10% costlier. The sponsor described the bill as a response to HOA requirements for less fire-resistant roofs. Testifiers generally supported the goal but objected to the 10% cost cap, saying it could limit community-specific design choices and create unintended conflicts with aesthetic standards. The committee also heard SB 601 on scissor stairs in the building code. The sponsor and supporters from Futurewise, architects, and housing advocates said scissor stairs could make mid-rise and high-rise housing more efficient, reduce corridor space, and improve unit layouts without sacrificing life safety. They noted the design is used in places like Vancouver, B.C. and in some Washington venues, and argued the bill would help lower costs and increase housing supply. No opposition was presented during the hearing. For SB 6015 on permit-ready residential plans, staff said L&I would create a process for publishing approved plans for factory-built housing and certain small residential types, with local governments required to approve applications using those plans on qualifying lots starting in 2027. Supporters from builders, architects, Habitat for Humanity, and Sightline said statewide standard plans could reduce duplication, speed permitting, and help scale factory-built and potentially site-built housing. Counties and L&I were supportive in concept but raised concerns about mandating local adoption of model ordinances and about whether the bill should include site-built plans as well. The committee also heard SB 5470 on detached ADUs outside urban growth areas, with supporters saying it would help rural homeowners and intergenerational living, while Futurewise opposed the bill as written and sought tighter density, lot-size, and metering limits. Finally, the committee heard SB 5729, a permit-streamlining bill that would deem completeness for applications prepared by licensed professionals and limit local governments to three review cycles. Builders and business groups supported it as a way to reduce delays and costs, while counties, cities, and Futurewise argued it could lead to more denials, less communication, and unintended liability concerns. In executive session, the committee adopted the proposed substitute for SB 5884 and moved it forward with a do-pass recommendation to Ways and Means.