Transcript Highlights:

• It's a federal demolition of public housing, as well as HHFDC 201H, as well as low-income housing tax
• This bill plugs that whole—it creates enforcement mechanisms at a state level.
• </c><00:14:01.680><c> it</c><00:14:01.839><c> also</c> mechanisms at a state level it also mechanisms
• It's not because of me and my husband's income.
• </c><01:00:36.240><c> and</c> elevate biocurity to a higher level and elevate biocurity to a higher level

Committee: Senate Public Safety and Military Affairs

Summary: The joint Senate committee hearing considered HB 472 HD1 on digital identification and HB 1097 HD1 on public housing evictions, followed by HB 1325 HD3 on housing redevelopment and tenant relocation rights. HB 472 would require digital IDs to be accepted under certain conditions and allow law enforcement to use them as proof of identity; the committee heard limited testimony, then adopted a recommendation to pass with amendments, including changing “shall” to “may” and adding effective and defective dates. HB 1097 would shorten the storage period for unclaimed personal effects after a public housing eviction; the Hawaii Public Housing Authority supported the bill, while some members raised concerns about the impact on displaced families. The committee moved the bill forward with discussion of the agency’s eviction process, waitlist size, and the need to free units sooner for other applicants. HB 1325 HD3 drew extensive testimony and discussion. The bill would require developers of certain HHFDC affordable housing projects to provide displaced tenants with a right of first refusal for a comparable unit or relocation assistance, along with information, tracking, and enforcement provisions. HHFDC supported the measure but suggested amendments to require both relocation assistance and a right of first refusal, without requiring the same rent as the prior unit. Legal aid, housing advocates, community organizations, and many tenants testified in strong support, emphasizing displacement during public housing redevelopment, inadequate communication, accessibility problems, and the need for enforceable rights to return. Several tenants described confusing notices, unsuitable replacement units, and hardship for elders, disabled residents, and children. The discussion also highlighted concerns about developer compliance and the need for state-level enforcement. No final vote on HB 1325 was shown in the transcript excerpt, but the hearing included substantial questioning of the housing authority and testimony from affected residents. The committee also discussed the broader redevelopment context, including large-scale public housing demolition and replacement plans, and the potential consequences for families if relocation and return rights are not clearly enforced.

Transcript Highlights:

• Eliminating the income tax is not about runaway sales taxes.
• Eliminating the income tax is not about runaway sales taxes, and I will never support extending sales
• Just last year, we were proud to support historic elimination of the income tax on capital gains.
• We are proud to support historic elimination of the income tax on capital gains.
• Violent crime committed by juveniles has reached a concerning level in Missouri.

Transcript Highlights:

• tax due by that uh dentist or income tax due by that uh dentist or clinician<00:13:28.480><c> each</
• Williams, federal law includes an exclusion from gross income for $5,000.
• </c> care about um helping the lowest income care about um helping the lowest income members<01:24:39.280
• , and this is not the same as universal basic income.
• , and this is not the same as universal basic income.

Bills: HF1833 , HF148 , HF1127 , HF1227 , HF1681 , HF1974 , HF1106 , HF1016 , HF2197

Committee: House Taxes

Transcript Highlights:

• We do work with the counties on several levels.
• Are there any kind of, you know, we often hear of at the local level BIDs...
• Not everyone's in the same income bracket.
• We want to continue our environmental standards at the level that they're at.
• Even at the local and county level.

Summary: The subcommittee first heard an informational overview from the Governor’s Office of Service and Community Engagement (GoServe), including California Volunteers, the Office of Community Partnerships and Strategic Communications, and the Youth Empowerment Commission. GoServe reported strong participation in programs such as California Service Corps, College Corps, Youth Service Corps, Climate Action Corps, and the new men’s service challenge. Testimony emphasized enrollment, retention, and completion outcomes, outreach results, and efforts to reduce administrative costs. The Department of Finance said the administration supports the programs but has already made reductions to help address the budget deficit, while the LAO said it had no new recommendations on the informational item. Committee members raised questions about program scale, demographics, and effectiveness, especially for Climate Action Corps and whether the programs are duplicative of existing volunteer opportunities. One member criticized the programs as too fragmented and costly, while others asked for more data on who is being served and whether the programs increase actual participation in state services. GoServe said it would follow up with demographic and regional impact information. The committee also discussed the men’s service challenge, which GoServe said has formed partnerships with organizations such as YMCAs and Big Brothers Big Sisters and has already attracted more than 2,000 participants. The item was informational only. The committee then heard a BOE overview and a budget request to implement SB 293, which gives wildfire-affected families additional time to claim intergenerational Prop. 13 property tax transfers. BOE requested $154,000 for guidance, public materials, and inquiry response, explaining that the work is urgent and tied to disaster relief in Los Angeles County, especially Altadena. The LAO had no concerns, and Finance had no comment. Members asked how many cases might be affected and whether more funding would be needed later; BOE said the full number is not yet known and that future requests are possible. The committee also heard BOE’s IT modernization proposal for the state-assessed property tax system, a 30-year-old mainframe replacement costing $3.2 million in 2026-27 and $3.1 million in 2027-28. BOE and Finance supported the project as necessary, while the LAO said it had no concerns but urged a high bar for new IT spending. Members generally supported modernization but cautioned about implementation risk. Finally, CDTFA presented an overview and two policy proposals. The department described administering 42 tax and fee programs, collecting $98 billion in FY 2024, and improving administrative efficiency. Members then discussed local sales tax tools and revenue-sharing agreements, with concerns raised about transparency, consultant-driven tax allocation disputes, and the impact on local communities. CDTFA and the LAO explained that local jurisdictions control how district sales tax revenues are spent and noted the Legislature could revisit the statutory cap on local add-on sales taxes. The committee then heard CDTFA’s proposal to treat all delivery network companies as marketplace facilitators so they must collect and remit sales tax on delivery-app orders. CDTFA said the change would resolve confusion, shift compliance from thousands of small restaurants to a few large platforms, and raise about $44 million annually. Several members questioned whether the proposal would effectively raise consumer costs and whether it would create a competitive advantage or disadvantage among delivery platforms. The item remained under discussion, with no vote taken in the transcript.

Transcript Highlights:

• Thank you for the opportunity to present SB 1091, an important bill to stabilize low-income families
• affordable housing crisis worsens, unsubsidized affordable housing is disappearing and fewer low-income
• The state treasurer will consider income levels in terms of the covenants, but it doesn't require it.
• It can consider income levels in terms of the covenants, but it doesn't require it, and it puts that
• Nobody's salary or Social Security or retirement income goes up by those kinds of percentages.

Summary: The committee heard presentations on several bills. SB 1091, by Senator Kavayetal, would create the Community Anti-Displacement and Preservation (CAP) program within HCD to provide financing and technical support for nonprofit and local efforts to acquire unsubsidized rental housing and preserve it as affordable housing or homeownership opportunities. Supporters, including Enterprise Community Partners, the Unity Council, and several housing and tenant groups, said preservation is a fast, cost-effective way to prevent displacement and homelessness. Members discussed funding, with the author and chair noting the program is intended to be funded through housing bond legislation and would be implemented upon appropriation. The bill was moved on a due-pass motion to Judiciary and passed out of committee. SB 904, by Senator Seyarto, would codify and expand the state’s coordinated wildfire recovery response by requiring HCD and other agencies to identify permitting and code barriers after future state-of-emergency wildfires and report on ways to speed rebuilding. The author cited the faster permitting response after the Los Angeles fires compared with the Camp Fire. Some members supported the goal but raised concerns about repeated reports and the burden on smaller jurisdictions; the author said the bill is meant to avoid reinventing the wheel and to streamline recovery. The committee noted the bill is fiscal and would go to Appropriations, and it was reported out with sufficient votes. SB 1007, by Senator Menjivar, would increase transparency and limit assessment growth in homeowners associations by requiring clearer disclosure of HOA finances and violation evidence, and by replacing the current 20% annual assessment increase ceiling with a cap tied to inflation, with possible amendments still under discussion. Supporters, including consumer and homeowner advocates, said the bill would help protect homeowners from steep fee hikes and opaque budgeting. Opponents from HOA management and industry groups argued the bill could undermine reserve funding, delay maintenance, and create more special assessments, while also adding duplicative disclosure requirements. Members debated whether the bill would protect homeowners without harming HOA finances; the author said he would continue negotiations and that the bill would look different in the next committee.

Transcript Highlights:

• Who aren't getting appropriate levels of support from the Commonwealth of Massachusetts.
• And this is a major in that serve large populations of low-income students and students of color, and
• President, in 2025, the law was changed because the so-called millionaires tax, the income surtax on
• incomes over a million dollars, that passed at the ballot box, and immediately... ...million dollars,
• So yes, their wages were depressed, but the income did not change.

Summary: The Senate took up a higher education capital bond bill, House 4769, and considered a long series of amendments focused largely on campus facilities, housing, and related policy issues. Many amendments were adopted, including funding or project language for MassBay Community College HVAC and window replacement, Massachusetts Maritime Academy, Springfield Technical Community College, Cape Cod Community College nursing/allied health expansion and housing-related land use, Worcester State University and Quinsigamond Community College, Middlesex Community College, Salem State’s Sullivan Building, Roxbury Community College’s Center for Economic and Social Justice, UMass Boston’s Manning College of Nursing and Health Sciences, and several Massachusetts State College Building Authority updates. Some amendments were rejected, including proposals on a sustainable hand hygiene incentive program, unlocking housing on surplus land, a Senator Bill Owen Center designation, Urban College of Boston, and a board membership change. A number of amendments were held or withdrawn during the process. A major debate centered on an amendment by Senator Tarr to dedicate $300 million of surtax revenue to K-12 education, framed as a response to Chapter 70 funding concerns and the need to modernize school aid. Supporters argued that local districts face rising costs and that the state should set aside fair share revenue for school funding and future school building investments. Opponents said the bill was the wrong vehicle and noted the Commonwealth already dedicates substantial surtax revenue to K-12 programs. The amendment was defeated by roll call. Tarr also offered amendments on a safety valve for surtax revenue declines, equity analysis of surtax allocations, bond covenant requirements, and Chapter 62F taxpayer protections; those were not adopted. The Senate also adopted a separate amendment on AP credit policies at public higher education institutions, though the transcript reflects some procedural confusion around that vote. After completing amendments, the Senate ordered the bill to a third reading and then passed it to be engrossed by a recorded vote of 38-0. Senators then adopted several extension orders giving committees additional time to report on pending bills, including Environment and Natural Resources and Municipalities and Regional Government. The chamber also adopted an order to meet again the following Monday at 11 a.m. The session concluded with a unanimous memorial adjournment in honor of Bolton Police Chief Luke Hamburger, followed by a brief statement recognizing Rare Disease Day and the challenges faced by patients seeking diagnosis and treatment.

Transcript Highlights:

• Who aren't getting appropriate levels of support from the Commonwealth of Massachusetts.
• And this is a major in That serve large populations of low-income students and students of color, and
• President, in 2025, the law was changed because the so-called millionaires tax, the income surtax on
• incomes over a million dollars, that passed at the ballot box, and immediately the legislature worked
• Their wages were depressed, but the income did not change.

Summary: The Senate considered and amended House 4769, a major higher education bond bill titled an act to build resilient infrastructure to generate higher education transformation (the BRIGHT Act). Members adopted a series of amendments funding deferred maintenance and capital projects at public colleges and universities, including MassBay Community College (HVAC and window replacement), Massachusetts Maritime Academy, Springfield Technical Community College, Cape Cod Community College, Worcester State University, Quinsigamond Community College, Roxbury Community College, UMass Boston, Middlesex Community College, Salem State University, Berkshire Community College, and MCLA. Several amendments were rejected, including proposals related to a sustainable hand hygiene program, board membership, and some other institutional or policy changes, while a number of amendments were held or withdrawn. The bill ultimately advanced through third reading and was passed to be engrossed by a unanimous roll call, with senators emphasizing the need to address deferred maintenance and modernize higher education facilities statewide. A major floor debate centered on an amendment by Senator Tarr to dedicate $300 million of Fair Share surtax revenue to K-12 education. Supporters argued that many school districts face rising costs, minimum aid, and an outdated Chapter 70 formula, and that the amendment would create a marker for future reform. Opponents said the Commonwealth already dedicates substantial surtax and other funding to K-12 education and that the amendment was not the right vehicle. After a roll call, the amendment was rejected. The Senate also rejected several Tarr amendments on fiscal safeguards, equity analysis, bond covenant requirements, and Chapter 62F taxpayer protections, while adopting others related to UMass Gloucester Marine Station housing and coastal erosion work, and to modernizing Massachusetts State College Building Authority bonding and office-location rules. The chamber also adopted a motion to adjourn in memory of Bolton Police Chief Luke Hamburger, who was remembered for his service, leadership, and community ties. Before adjournment, senators took brief statements on other issues, including a call for greater awareness of rare diseases and the need for improved access to diagnosis and treatment. The Senate also approved extension orders giving committees additional time to report on pending environmental and municipal bills, and it set its next meeting for Monday at 11:00 a.m.

Transcript Highlights:

• For example, this amendment would end the low-income discount rate funding source during peak hours,
• Low-income communities contributed 24% more per capita than the average for the state.
• Higher-income communities used Mass Save more often than low-income communities.
• Section 68 reinstates income verification for those renters.
• Potential customers, 6.7% for low-income customers.

Transcript Highlights:

• They really are about income levels.
• They really are about income levels.
• Among the Minnesota private colleges, we serve students from households below the median income level
• Among the Minnesota private colleges, we serve students from households below the median income level
• Among the Minnesota private colleges, we serve students from households below the median income level

Transcript Highlights:

• ><00:51:41.200><c> definitions</c> income and the income uh definitions income and the income uh definitions
• </c> income taxes and I pay income taxes?" income taxes and I pay income taxes?"
• So we're talking not only state level, county level, transit level, housing level, and all that stuff
• :33:44.479><c> level</c><02:33:45.040><c> and</c> level, transit level, housing level and level, transit
• level, housing level and all<02:33:45.439><c> that</c><02:33:45.680><c> stuff.

Committee: House Taxes

Transcript Highlights:

• We really cannot continue without the diversified income that we have.
• Don't recall it ever being to this level.
• Don't recall it ever being to this level.
• So we do want some level of control.
• So we do want some level of control.

Bills: HB1979

Committee: Senate Agriculture and Environment

Summary: The committee heard testimony on HB 1979 HD3, which would shorten the time to file certain judicial challenges to environmental assessments and environmental impact statements for affordable housing and clean energy projects, and would also affect transfer of some environmental court appeals to the Supreme Court. The Office of Planning and Sustainable Development supported the amended bill, saying the changes were improved from earlier versions and that the shorter filing period was reasonable for these priority projects. Hawaii Gas asked that the bill’s clean energy definition be broadened to align with existing renewable energy law so emerging technologies like renewable hydrogen and renewable gas would be included. Kauai Island Utility Co-op and Greenpeace Hawaii testified in support and opposition, respectively, with supporters arguing the bill would reduce litigation uncertainty and opponents saying the shorter deadline would limit public participation and not solve the real causes of project delays. Opposition testimony came from the Office of Hawaiian Affairs, Earthjustice, Sierra Club, 350 Hawaii, and others, who argued the bill could chill legitimate public-interest claims, especially where there is limited public notice, and that environmental review was being unfairly blamed for delays caused by permitting, financing, or infrastructure problems. Several speakers said the measure would reduce transparency and make it harder for communities to respond in time. One testifier from Earthjustice said the environmental review process itself is not the problem and should not be weakened for projects that still need public disclosure and community engagement. The committee then moved to decision-making and, citing the volume of opposition and concerns about public participation, transparency, and whether the bill would actually improve timelines, the chair deferred HB 1979 HD3 indefinitely. The hearing was adjourned after the vote decision was announced. The transcript then shifted to HB 2585, relating to tourism and statewide standards for agritourism. Testimony was mixed: farmers and agricultural groups described agritourism as essential to keeping small farms and ranches viable, while also urging safeguards so it would not be abused or displace real agricultural production. Some speakers warned the bill’s revenue-based limits could unintentionally shut down existing farm stays and related operations, especially in Maui County. The Hawaii Farm Bureau said it supported the intent but wanted clearer protections for bona fide agriculture and more flexibility around revenue requirements and force majeure situations. The discussion was still underway when the transcript ended.

Transcript Highlights:

• targeted</c> of with income that was income targeted of with income that was income targeted and<00:26
• </c><00:39:29.040><c> levels</c><00:39:29.400><c> across</c><00:39:29.800><c> racial</c> mothers uh income
• levels across racial mothers uh income levels across racial and<00:39:30.359><c> ethnic</c><00:39:30.880
• </c> people who are from lower income people who are from lower income communities<00:48:12.000><c> are
• </c> remind me if we have a um income remind me if we have a um income threshold<00:59:12.920><c> on<

Committee: House Taxes

Transcript Highlights:

• Those things continue to change in this environment, um, uh, at the federal level.
• </c><00:02:50.280><c> so</c><00:02:50.720><c> it's</c><00:02:51.080><c> really</c> the federal level
• so it's really the federal level so it's really important<00:02:51.879><c> that</c><00:02:52.000><c>
• Um, there's been a lot of changes at the federal level just in the last few years.
• </c> but I don't know about the income but I don't know about the income because<00:46:09.440><c> I</

Committee: Senate Higher Education

Transcript Highlights:

• tax credit, and an exemption for military retirement income. ...rebates, the child income tax credit
• , an exemption for military retirement income or Social Security income for those with certain incomes
• tax, and a corporate income tax.
• So in some versions, there is no personal income tax. There's no corporate income tax.
• And that's very high level.

Summary: The committee’s final day focused first on a historical overview of New Mexico tax packages by Pam Stokes of Legislative Council Services. She described how tax packages have alternated over the decades between tax relief, revenue raising, and tax reform, with examples ranging from the creation of the gross receipts tax in 1966 to major packages in 1981, 1986, 1991, 1994, 2005, 2019, 2022, 2024, and the vetoed 2025 package. Members discussed how tax policy often tracks revenue conditions, how packages can combine increases and decreases, and how local government gross receipts taxes and hold-harmless distributions have affected communities differently. Several members reflected on past packages, especially the 2004 food tax repeal and the 2013 film tax and manufacturing changes, and noted that tax policy can have major economic and political effects even when it is not “sexy” legislation. The committee then heard a proposal to expand the health care practitioner gross receipts tax deduction to include co-insurance, and to extend the sunset date. Sponsor Senator Figueroa said the bill was intended to help recruit and retain medical providers and build on prior deductions for co-pays and deductibles. Testimony explained that co-insurance is the patient’s share after the deductible, that providers currently absorb the gross receipts tax on those payments, and that the proposal would cost about $30 million to the state plus about $20 million to municipalities and counties, with the exact fiscal impact likely to be updated. Members raised concerns about the effect on local governments, whether insurers could be required to reimburse providers, whether the bill would actually attract doctors, and whether better evaluation measures and sunsets should be added. The sponsor said the bill was part of a broader set of efforts to address provider shortages and that the discussion would continue. Representative McQueen then presented a bill to update the Land Conservation Incentives Act. He and conservation partners said the program has protected more than 500,000 acres but has not kept pace with rising land values, especially for irrigated agricultural land in the Middle Rio Grande. The proposal would increase the percentage of conservation value eligible for the credit, raise the per-transaction cap from $250,000 to $2 million, and make the credit refundable rather than only transferable. Testimony emphasized that the program is voluntary, keeps land in private ownership and production, and helps land-rich, cash-poor landowners preserve farmland and water rights. Members asked about average credit amounts, how easements work, whether landowners could effectively buy land and then use the credit, and whether there should be inflation indexing or a statewide cap. The discussion also touched on water rights, fencing, and the role of conservation easements in protecting agricultural land and compact water deliveries. Finally, Senator Sharer previewed his 2% tax proposal with a historical presentation on New Mexico tax law, using props to illustrate the evolution from early territorial tax codes to the modern tax system. He argued that the state’s current tax structure is overly complex and that recent federal changes have disrupted the personal income tax base. The committee did not take any votes on the day’s presentations; the meeting was primarily informational, with members offering feedback and raising policy concerns for future sessions.

Transcript Highlights:

• grade level in math.
• Just 37% of all students in California are performing at grade level in math. 26% of low-income students
• are performing at grade level. 20% of Black students are performing at grade level in math.
• Just 37% of all students in California are performing at grade level in math. 26% of low-income students
• are performing at grade level. 26% of low-income students are performing at grade level in math. 20%

Summary: The committee heard testimony on SB 1067, which would require annual early math screening for K-2 students beginning in 2028-29 to identify learning gaps and connect students to evidence-based support. Senator Weber and supporters, including EdVoice and UC Davis researcher Dr. Charles Wilkes, argued that California’s low math performance and persistent achievement gaps justify early identification and intervention. Opponents, including the California Mathematics Council, county superintendents, and CTA, said the bill could create a new mandate, encourage narrow skill-based instruction, and divert attention from implementing the California Mathematics Framework and investing in teacher training and coaching. Committee members discussed how the screener would work, whether it would identify disabilities or simply flag students needing further evaluation, and cited examples of districts already using early screening tools. No vote was taken because quorum had not yet been established at that point. SB 1110, a child care subsidy administration bill, was presented next. Senator Becker and co-sponsors from the Child Care Resource Center and EveryChild California said the measure would stabilize the child care system as the state moves to enrollment-based funding by clarifying funding for administrative and family-service functions and helping providers maintain staffing, payment timelines, and compliance. There was support from several child care and education organizations and no opposition testimony. The bill was not voted on because the committee still lacked quorum. After recess, the committee heard SB 1374, which would allow public higher education institutions to seek temporary restraining orders on their own behalf when they face credible threats of violence. The CSU Chancellor’s Office and San Diego State police described incidents where threats were directed at campuses broadly rather than specific individuals, leaving institutions without a legal remedy under current law. UC and independent colleges supported the bill, and there was no opposition. The bill was held on call pending quorum. The committee then took up SB 1321, which would direct the State Auditor to review remedial course use and student preparedness at selected UC and CSU campuses. Senator Nila and supporters argued that recent UC San Diego data show severe gaps in incoming students’ math preparation and that the audit would help assess admissions and placement practices; there was no opposition testimony. Members raised concerns about the scope and timing of the audit request, and the bill was held on call. The committee also heard SB 1086 on microschools, which would define microschools in statute and direct model ordinances for local land use regulation. Supporters said microschools are growing but face inconsistent zoning treatment, while some members questioned whether the Legislature had enough information to define the model or direct state guidance without more study. After quorum was established, the committee voted SB 1086 out on a 4-1 vote to the Senate Appropriations Committee, with Senator Perez voting aye, Senator Ochoa Bogh aye, and Senator Cabaldon no; the remaining votes were not fully recorded in the transcript. Finally, SB 1181 was presented as a voluntary pilot program in Central Valley counties to allow schools to share credible safety concerns with regional threat assessment centers. Senator Hurtado and supporters, including the mother of a student killed in a shooting and Corcoran High School students, said the bill would improve early intervention and communication around threats. Members expressed support while also raising privacy and federal-sharing concerns about fusion centers; the bill was discussed but no vote was taken in the excerpt.

Transcript Highlights:

• There are tight income and asset limits within the bill as well.
• There's even a sensible 12-month graduated phase-out of income raises.
• Natural leaf contains lower, more balanced levels of compounds.
• She had a high-level professional career, a six-figure income, and had been taking kratom only because
• She had a high-level professional career, a six-figure income, and had been taking kratom only because

Committee: Senate Health and Welfare

Transcript Highlights:

• </c> buildings was at risk due to the level buildings was at risk due to the level of<00:24:35.559><c
• </c> uh two talks about the low-income uh two talks about the low-income housing<00:31:20.679><c> tax
• Were you kind of considerate of the income of your residents, which put you in that position?
• </c> I'll be doing a kind of a high level I'll be doing a kind of a high level overview<00:42:21.160>
• But if you're below 30th percentile, either get up to that level or quit.

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• And lastly, the funding levels and sources.
• At the county level, at this point it's kind of dispersed.
• At the county level, at this point it's kind of dispersed.
• Unfortunately, the level of preventative care or early care is going to be much... ...the level of preventative
• We reduced our uninsured rate to the lowest level ever.

Summary: The hearing focused on the expected health coverage losses tied to H.R. 1, the resulting pressure on California’s county indigent care systems, and what data and policy changes the Legislature may need before the next budget cycle. Chair Hart and Assemblymember Addis framed the issue as a major rollback in coverage that could leave more Californians uninsured and push more people into county safety-net programs. Members repeatedly emphasized the need for baseline, county-by-county data on eligibility, benefits, caseloads, and funding before making larger structural decisions. The Legislative Analyst’s Office explained the history of county indigent care under Welfare and Institutions Code 17000, the shift in funding through 1991 realignment, and the later redirection of funds to CalWORKs. LAO said county programs vary widely in scope and eligibility, that current realignment funding does not automatically rise with demand, and that the Legislature faces tradeoffs if it changes the funding structure. Administration witnesses from Finance and DHCS projected large Medi-Cal and Covered California enrollment losses, with DHCS estimating more than 1 million Medi-Cal members could eventually lose coverage under work requirements and redeterminations, and noting that a new federal rule could make exemptions more restrictive. Officials also said there is no single statewide real-time data system for uninsured or indigent care populations, though some hospital and utilization data exists with significant lags. County representatives from Santa Barbara, San Diego, and Tulare described how their indigent care programs are being rebuilt or strained after years of low demand. They warned that many newly uninsured residents will need only basic, emergency-oriented care under county programs, not the preventive and continuous care available through Medi-Cal, and said that without new state support counties may have to divert funds from public health or reduce other services. Several counties asked for bridge funding, technical statutory changes, and flexibility to adjust realignment methodology. The California Health Care Foundation closed by arguing that the problem is statewide and needs a statewide solution rather than a patchwork county response.

Transcript Highlights:

• district work for funds, workforce funds, these allocations are performance-driven meaning funding levels
• The line represents the funding level per certification for that year.
• We've really targeted industries where we see high wage high income targeted industries where we see
• My next question is I I'm pretty sure at that Florida college system level, all these programs, these
• I am curious any data for those that from the district level, the high school kids, the actually not

Transcript Highlights:

• And the level of that is 50%? 50%, yes. Uh-huh. Yeah. The level of that is 50%. 50%? 50%, yes.
• So if we eliminate income tax, then this gets eliminated as well, right? Yes.
• What's your perspective on... ...if we're going to continue collecting income tax.
• What's your perspective on what happens if we get rid of the income tax?
• I mean, the income tax would just shift to a sales tax or some other type of tax.

Committee: House Ways and Means

Summary: The House Ways and Means Committee met in executive session and first took up Senate Bill 994. Members adopted a House committee substitute and a related amendment that removed conflicting language and added a federal tax filing reference. The committee then voted the House committee substitute do pass on an 8-0 roll call, with one member absent. The committee next considered House Bill 2461, with discussion indicating the bill was being rolled together with related bills and that the amendment would extend, not eliminate, a sunset on a tax credit at a 50% level. After adopting the amendment and substitute language, the committee voted the House committee substitute do pass by a 6-2 vote. The transcript also notes procedural action to roll in other bill language before the final vote. In public hearing, the committee heard Senate Substitute for Senate Bill 1032, which would allow a one-time $2,400 state income tax deduction for each child born or adopted in the tax year beginning after January 1, 2027. Senator Moon described it as pro-family tax policy, and Missouri Right to Life testified in support, saying it would help families choose life and offset early child-rearing costs. Members questioned the policy rationale, whether the deduction should be refundable or recurring, and the estimated fiscal impact, but no vote was taken on the bill. The committee also heard House Bill 3329, which would repeal a long list of expired or unused tax credits and clean up outdated statutory language. Representative Thompson and the Department of Revenue supported the bill as a way to reduce administrative burden and eliminate obsolete credits from the books. No opposition testimony was offered, and the hearing concluded without further action before adjournment.