Transcript Highlights:

• language in the budget bill to include priorities to support disadvantaged communities, critically overdrafted

Summary: The subcommittee heard an overview of the May Revision from the Department of Finance and the Legislative Analyst’s Office, focused on resources, environmental protection, energy, and related budget issues. Finance said the May Revision keeps the budget balanced in 2026-27 and 2027-28, narrows the structural deficit, and proposes major investments in natural resources, including Proposition 4 bond funding for the Golden Gate Fields acquisition, wildlife refuge and wetland projects, Fort Ord Dunes campground operations, Healthy Rivers and Landscapes, wildfire-human coexistence, and beverage container recycling. The LAO praised stronger-than-expected revenues but argued the state still has a structural deficit and is relying too heavily on reserves, recommending more reserve deposits and fewer new discretionary expenditures. Members questioned several proposals, especially the Golden Gate Fields purchase and the Healthy Rivers and Landscapes Program. Agency officials said the Golden Gate Fields site is a time-limited opportunity, would be remediated by the current owner, transferred to East Bay Regional Park District after closing, and restricted to park/open-space uses rather than commercial development. On Healthy Rivers and Landscapes, Finance and the Natural Resources Agency said the $25 million request would help launch year one of the program, support scientific monitoring, and maintain commitments to environmental flows and habitat restoration; the LAO said the request was premature because the Bay-Delta plan has not yet been formally adopted and the state’s total funding commitment remains unclear. Officials also discussed water storage, subsidence, and the need for ongoing investments in aquifer recharge, aqueduct repairs, and recycling. The committee also reviewed a proposed $1 million shift for the Coexisting with Wildlife Initiative. Fish and Wildlife and the Cattlemen’s Association said the money would support limited-term staffing, deterrence tools, and livestock-loss compensation, while acknowledging the amount is modest compared with the need. Members emphasized the growing human-wildlife conflict problem and the importance of nonlethal deterrence and public education. The discussion then turned to greenhouse gas reduction fund revenues and transit; members warned that lower auction revenues and possible CARB rule changes could leave little or nothing for Tier 3 programs such as transit, clean water, and air-quality programs. Finance and the LAO said the Legislature should plan for multiple revenue scenarios and consider whether the existing cap-and-invest spending framework still matches current revenue expectations and priorities.

Transcript Highlights:

• projections show this program is overspent by at least $40 million, and we'll finish the year basically overdrafting

Transcript Highlights:

• a payroll deduction to be significantly easier than having to charge on a credit card or risk overdrafting
• a payroll deduction to be significantly easier than having to charge on a credit card or risk overdrafting

Committee: House House Education Committee of Reference

Summary: The committee first heard House Bill 4043, which would require each school district and charter school, beginning in 2027, to ensure at least one employee at each school is trained in CPR, first aid, and AED use. The sponsor said he intended to amend the bill on the floor to ensure someone is trained at all times and to clarify AED language. The American Heart Association testified neutral with concerns, supporting CPR training but warning the bill could leave gaps if only one person is trained and noting the need for AED access and emergency planning. Parents whose son died in an Arizona kindergarten classroom urged support, saying school staff should be prepared to respond to emergencies. The committee recommended the bill do pass by a vote of 7-1 with four present. The committee then took up House Concurrent Resolution 2015, as amended by a strike-everything amendment supporting at least 60 minutes of daily physical activity for students and prominent display of federal dietary guidelines. A representative of End Chronic Disease testified in favor, arguing schools should help prevent chronic disease through health education and physical activity. The committee adopted the strike-everything amendment and then gave the resolution a due pass recommendation on a 12-0 roll call. House Bill 2621, in its strike-everything form and with a Garcia amendment, addressed enrollment and special education procedures for students in unorganized territory, students using certificates of educational convenience, and children of active-duty military parents. The sponsor explained the bill was meant to clarify confusing law, speed enrollment and evaluations, and reduce delays in services. Champions for Kids supported the measure and the amendments, and the committee adopted both amendments before recommending the bill do pass 11-0. The committee also approved House Bill 2385, which limits superintendent contracts to one-year terms for the first three years unless the superintendent has already been employed three consecutive years; the sponsor framed it as a way to reduce costly early buyouts. That bill passed 7-4. Later, the committee approved House Bill 4106, creating the One Arizona Service Fellowship Program to provide service opportunities, stipends, and tuition awards for young adults, with an amendment changing the stipend contribution formula. The sponsor and supporters described it as a state-based service model inspired by Utah and aimed at education, military families, parks, hunger, and homelessness work; some members opposed it as an unnecessary state mandate or questioned the need for a new program. The committee also passed House Bill 2992, as amended, establishing a pilot program on child sexual abuse and assault awareness and prevention, expanded to K-12 and including grooming/exploitation content. A survivor advocate strongly supported the bill, while some members raised concerns about the funding source and possible unintended consequences. Finally, the committee passed House Bill 2370, which would require school leaders to notify governing boards before modifying weapons detection systems and to report changes within 24 hours; the sponsor cited a fatal school stabbing and other weapons incidents, while opponents argued the bill was too vague and could create operational problems. The committee also adopted a strike-everything amendment to House Bill 4056, allowing legislators making public records requests in their official capacity to avoid fees and requiring electronic production; the sponsor said it was needed after districts sought large fees, while opponents warned it could burden public agencies. The committee then began discussion of House Bill 2478, which would create an Arizona Commission on Student Outcomes to study K-12 accountability, finance, graduation requirements, and related issues, with proposed amendments to add early childhood study and change commission membership, but the transcript cuts off before final action on that bill.

Transcript Highlights:

• language in the budget bill to include priorities to support disadvantaged communities in critically overdrafted

Transcript Highlights:

• The California Fair Lending Examination Act.
• fair lending examination whenever risks or red flags are identified.
• fair lending examination whenever risks or red flags are identified.
• fair lending examination whenever risks or red flags are identified.
• I'm the Executive Director of the Responsible Business Lending Coalition.

Committee: Senate Banking and Financial Institutions

Transcript Highlights:

• It is clear that the solvency of the SBA's lending programs is a priority.
• SBA lending platform for 7A, 504, and express loans.
• It's the first rule of lending.
• to harm our prudent lending.
• The first rule of lending is know your borrower.

Committee: Senate Small Business and Entrepreneurship Committee

Keywords: SBA, 7A loan program, underwriting standards, loan defaults, Community Advantage Program, small business funding, testimony

Summary: The committee meeting focused on discussions regarding the SBA's 7A loan program and its implementation challenges. Members raised significant concerns about recent changes to the underwriting standards, which have been criticized for leading to an increase in loan defaults. Ranking members expressed a desire for a return to stronger guidelines to protect taxpayers and ensure the program remains a viable source for small businesses struggling to secure funding. Testimonies from community lenders highlighted their efforts to support underserved communities and stressed the importance of the Community Advantage Program.

Transcript Highlights:

• The California Fair Lending Examination Act. You can just sit there. What the bill does.
• The California Fair Lending Examination Act. You can just sit there. What the bill does.
• fair lending examination whenever risks or red flags are identified.
• I'm the Executive Director of the Responsible Business Lending Coalition.
• Glazer's bill around trust and what is it called, truth in lending bill.

Summary: The committee heard AB 801, which would require the Department of Financial Protection and Innovation to conduct fair lending examinations of lenders on a regular schedule. The author and supporters, including the Greenlining Institute and several housing and consumer groups, argued the bill was needed because federal fair lending enforcement has weakened and California borrowers of color continue to face lending disparities. Banking and credit union representatives opposed the bill as duplicative and costly, though they acknowledged the author’s amendments and continued negotiations. The bill was approved on a vote and re-referred to Judiciary, with some members voting no or not voting at first and later the measure passing on a fuller roll call. The committee then heard AB 871, which would strengthen elder fraud protections by requiring financial institutions to report suspected financial abuse to the FBI’s Internet Crime Complaint Center and notify customers of the report. The author and county and adult protective services supporters said the bill would improve pattern detection and help stop or reverse scams more quickly. Bankers opposed the customer-notification requirement, warning it could alarm seniors and that the reporting process would add operational burden, but the author and supporters said victim information is important for investigations. The bill passed with committee support and was re-referred to Judiciary. AB 1842 and AB 1847, both related to mortgage forbearance after major disasters and the Eaton and Palisades fires, were also heard. AB 1842 would create a statewide framework for forbearance after federally declared major disasters, and AB 1847 would extend relief for wildfire survivors; both bills were amended to narrow triggers, clarify repayment and documentation issues, and remove some reporting requirements. Supporters included local officials, consumer groups, and housing advocates, while mortgage and banking groups remained in opposition on some implementation points but said they were working toward compromise. Both bills were approved and re-referred to Judiciary. Finally, AB 2116, dealing with merchant cash advances and small business financing transparency, was heard with broad support from small business and consumer advocates and partial support from some industry representatives after amendments; opponents still raised concerns about disclosure authority and unconscionability standards. The bill was also approved and sent to Judiciary. The committee additionally adopted a consent calendar of unrelated bills.

Transcript Highlights:

• Our focus is on small business lending.
• We make commitments to them, and then once we've made a commitment to the lending partner, those lending
• So we loan the lending partner money at 2%.
• The lending partner might lend the money out to a small business at 5%, 6%, or 7%.
• I sat down with Each of our lending partners.

Committee: House Investments & Pensions Oversight Committee

Transcript Highlights:

• </c> a New Concept the first lending a New Concept the first lending Authority<00:08:35.560><c> was</
• </c> board meeting we approved our lending board meeting we approved our lending policies<00:20:50.679
• and procedures The Lending policies and procedures The Lending policies<00:20:53.440><c> and</c><00:
• Lastly, Vol indicated that we did codify our lending standards.
• </c><00:41:33.640><c> uh</c> controls in our uh our lending uh controls in our uh our lending uh operations

Committee: Senate Energy, Utilities, Environment, and Climate

Transcript Highlights:

• And to identify patterns of discriminatory lending and investment practices.
• and the proportion of that lending to low- and moderate-income borrowers.
• and the proportion of that lending to low- and moderate-income borrowers.
• Credit unions exist to offer pooled savings and lending services for member owners.
• The style and the ways of lending has changed dramatically.

Summary: The Assembly Banking and Finance Committee met to hear several bills, beginning with a consent calendar that included AB 665 and AB 866, both adopted on a do pass basis and referred to Appropriations. The committee then took up AB 801, which would create a California Community Reinvestment Act to require covered financial institutions, including state-chartered banks, credit unions, residential mortgage lenders, and money transmitters, to meet the financial needs of low- and moderate-income communities and communities of color. The author and supporters argued the bill would close gaps left by the federal CRA, address redlining and discriminatory lending, and expand investment in housing, small business, and community development. Support came from community groups, CDFIs, labor, and housing advocates, while opposition from mortgage bankers and credit unions argued the bill would impose costly new reporting and regulatory burdens, especially on institutions they said already serve underserved borrowers well. Committee members discussed the scope of the bill, the experience of other states with state CRA laws, and possible carve-outs or tiered treatment for smaller credit unions. AB 801 was passed as amended and referred to Appropriations, with the roll left open and later completed; one member voted no and others were not voting or voted aye as the roll was finalized. The committee also heard AB 743, which would require licensing and surety bonds for commercial lawsuit financing and bring those transactions under DFPI oversight. The author said the bill was aimed at a largely unregulated, multi-billion-dollar industry and was intended to increase transparency and address concerns about foreign interests, fraud, and abusive litigation funding practices, while not affecting consumer legal funding. Supporters, including Unified Patents, the Civil Justice Association of California, the California Chamber of Commerce, the California Trucking Association, and the American Property Casualty Insurance Association, said the bill was an important first step toward disclosure and regulation. There was no opposition testimony. AB 743 passed unanimously as amended and was referred to Appropriations, with the roll held open briefly for absent members before the committee adjourned.

Transcript Highlights:

• A public bank could leverage deposits to multiply lending.
• It says $1 of deposits can become $3 to $10 in community lending.
• Banks hold capital in reserve, and they can lend.
• Banks hold capital in reserve, and they can lend as a multiple of that equity.
• “However, Washington State currently does have various lending programs and services.

Summary: The committee first received a JLARC work session on the 2025 tax preference performance reviews, covering nine tax preferences and recommending legislative action on eight. JLARC reviewed natural gas transportation fuel preferences, travel agent and tour operator B&O rates, a property tax exemption for nonprofit low-income housing developers, and several shorter reviews including senior center property tax relief, a disabled veteran adapted housing remittance, trade convention nexus treatment, wholesale sales of fertilizer/pesticides/seed, a hazardous substance tax exemption for pesticides stored for out-of-state shipment, and three energy-related preferences for a silicon smelter. JLARC generally recommended continuing preferences that met stated or inferred objectives, modifying some to improve reporting or performance metrics, and allowing the unused silicon smelter preferences to expire. The Citizen Commission endorsed JLARC’s recommendations, and committee members asked a few clarifying questions, including about trends in travel agent/tour operator beneficiaries and the housing exemption’s performance metric and data issues. The committee then heard a work session and public hearing on Senate Bill 5754, which would create a Washington State public bank. A presentation from California public banking advocates and the Bank of North Dakota described public banks as government-owned financial institutions intended to keep public funds working locally, support lending for housing, infrastructure, and community development, and partner with community banks and credit unions. Committee questions focused on leverage, liquidity, constitutional issues, and how the model would interact with existing state investment and debt structures. Staff summarized the bill’s structure, including activation conditions, governance, powers, and fiscal impacts, noting the fiscal note was largely indeterminate and startup costs could be significant. Public testimony on SB 5754 was divided. Supporters included statewide elected officials, county and city officials, labor, educators, community advocates, and residents, who argued the bank could lower borrowing costs, improve access to capital, keep public money in Washington, and help finance infrastructure, housing, and disaster resilience. Opponents included community bankers and county treasurers, who warned about risks to safety and liquidity of public funds, questioned the need for a new institution given existing programs, and argued the proposal lacked a proven track record in Washington. The hearing concluded with no vote taken in the transcript.

Transcript Highlights:

• It says $1 of deposits can become $3 to $10 in community lending.
• Banks hold capital in reserve, and they can lend.
• Banks hold capital in reserve, and they can lend as a multiple of that equity.
• However, Washington State currently does have various lending programs and services.
• So it reduces a tremendous amount of overhead. ...and get that subsidized lending.

Bills: SB5754

Committee: Senate Ways & Means

Keywords: public bank, state bank, finance, banking regulations, economic development, state investment

Transcript Highlights:

• Small business lending and innovative projects like community land trusts.
• variety of activities such as investing in affordable housing tax credits, direct giving, direct lending
• and the proportion of that lending to low- and moderate-income borrowers.
• Credit unions exist to... ...offer pooled savings and lending services for member owners.
• They see the opportunity to have a thriving community and to have their lending standards that are in

Committee: House Banking and Finance

Transcript Highlights:

• Without using public funds or lending the credit of the state, the commission can issue non-recourse
• We're not lending the credit of the state in any way.
• So right now in our current statute we are precluded from doing that direct lending.
• that lending, combined with the elimination of the prohibition against the use of public funds.
• that lending, combined with the elimination of the prohibition against the use of public funds.

Bills: HB2118 , HB2236

Committee: House Housing

Keywords: common interest communities, restrictions, property rights, homeowners association, community governance, housing finance, affordable housing, housing commission, state agency, financial assistance

Transcript Highlights:

• Without using public funds or lending the credit of the state, the commission can issue non-recourse
• We're not lending the credit of the state in any way.
• So right now in our current statute we are precluded from doing that direct lending.
• that lending, combined with the elimination of the prohibition against the use of public funds.
• without defining what type of borrowers or defining what type of lending or the purpose of that lending

Summary: The Housing Committee held public hearings on two bills. HB 2118 would limit homeowners associations’ ability to adopt or enforce new covenant restrictions on the use of a unit that are more onerous than those in place when the owner bought the property, unless the owner agrees in writing. The sponsor said the bill is meant to protect buyers from having the rug pulled out from under them on things like chickens or renting part of a home. Staff explained the bill’s grandfathering and recording provisions, and that it excludes rules required by law. Testimony was split: supporters emphasized fairness, certainty, and protecting relied-upon uses, while opponents from HOA and management groups argued it would create fragmented enforcement, higher costs, administrative complexity, and conflict within communities, and that existing law and court decisions already address these issues. The committee closed the hearing without taking a vote. HB 2236 would update Washington Housing Finance Commission statutes. The bill would allow the commission to make direct mortgage loans, extend the term of the commission attorney, remove advance notice to the state finance committee before bond issuance, repeal the housing finance program and housing finance plan requirements, and revise the commission’s purpose language. The sponsor and commission said the changes would modernize outdated statutes, improve efficiency, and give the commission more flexibility to use its revenues and financing tools for affordable housing, gap financing, preservation, and starter homes. Committee members asked about the commission’s bond structure, default risk, and the meaning of “public funds,” and the commission said the transactions remain third-party and tax-exempt, with no state credit risk. Banking industry witnesses said they generally support the commission’s mission but wanted clearer limits on direct lending and the use of public funds, and they were working with the commission on amendment language. Committee members expressed support for the collaboration and the goal of increasing housing production. No votes were taken; both hearings were closed and the committee adjourned.

Transcript Highlights:

• I'm the executive director of the Responsible Business Lending Coalition.
• For Responsible Lending, and available for questions and answers.
• For the record, my name is Andrew Kushner from the Center for Responsible Lending.
• For the record, my name is Andrew Kushner from the Center for Responsible Lending.
• Lewis Cated Speck, Responsible Business Lending Coalition, in strong support.

Summary: The Assembly Banking and Finance Committee met to hear several bills focused on consumer and small business financial protections. SB 97, by Senator Grayson, would update and clarify California’s digital financial assets law; supporters from the blockchain industry and consumer groups said it would improve compliance clarity while preserving room to align with possible federal action. The committee passed SB 97 on a due-pass motion to the Privacy and Consumer Protection Committee, with the roll left open for absent members. The committee also heard SB 362, which would strengthen disclosure rules for small business financing by requiring clearer pricing information throughout the marketing process. Supporters said the bill would help small businesses compare offers and avoid harmful financing, while some industry groups objected to the bill’s treatment of communications and APR disclosures during negotiations. After discussion, the committee passed SB 362 to the Judiciary Committee, with several members voting aye and the roll left open. SB 784, a bill addressing predatory home-improvement and solar financing practices, drew extensive testimony. The author and supporters described scams targeting seniors, low-income homeowners, and non-English speakers, and said the bill would add safeguards such as confirmation calls, document access, fee transparency, and longer cancellation periods. Solar industry groups moved to neutral after amendments, while banks and other lenders raised concerns about overbreadth and impacts on legitimate lending. The committee passed SB 784 to Judiciary, with some members not voting or changing votes during the roll call. Finally, SB 825 sought to give the Department of Financial Protection and Innovation clearer authority to enforce existing consumer financial protection laws against its licensees, especially in light of reduced federal CFPB enforcement. Supporters argued California needs independent state enforcement tools, while banking and mortgage groups opposed the bill as duplicative and unnecessary, urging coordination with federal regulators and proposing narrower amendments. The committee passed SB 825 to Appropriations on a due-pass vote, and then adjourned after completing the agenda.

Transcript Highlights:

• Now, unlike other states, California law requires these financing entities to obtain a lending license
• We have arrived at a solution that encourages mutually beneficial lending activity in California while
• processes for each of their affiliated lending vehicles.
• vehicles, with the fee paid for the advisor and each... ...their advisor lending vehicles, with the
• By enabling institutional funds to participate more readily in California's commercial lending markets

Summary: The Senate Committee on Banking and Financial Institutions met with an initial lack of quorum, so the hearing began as a subcommittee. The main item heard was SB 972, authored by Senator Grayson, which would modernize California’s licensing rules for non-bank commercial lenders by creating a streamlined umbrella license for SEC-registered investment advisers and their advised lending vehicles. The author and sponsor, LSTA, said the current California Financing Law can cause duplicative licensing, long delays, and reduced access to capital for middle-market and large California businesses, while the bill would preserve DFPI oversight and increase fee revenue. No one testified in opposition, and no registered opposition appeared. After quorum was established, the committee took up the bill and advanced it on a 4-0 vote, with the roll held open for absent members. The committee also later took up the consent calendar, which was adopted on a 6-0 vote after the meeting reconvened. When the committee reconvened with a quorum, it formally adopted the consent calendar and then approved SB 972 on a 6-0 vote with a do pass recommendation to the Senate Judiciary Committee. The meeting then adjourned.

Transcript Highlights:

• a temporary financial backstop for the hospital through a line of credit, essentially acting as overdraft
• a temporary financial backstop for the hospital through a line of credit, essentially acting as overdraft

Committee: Senate Health and Human Services

Transcript Highlights:

• And this continues state-run lending programs. Why is the state lending money?
• They can lend money based on whatever they want to lend money on unless the government has stepped in
• Why is the state lending programs. Why is the state lending money?
• We have<00:58:22.400><c> lending.
• </c> role in lending money? role in lending money?

Transcript Highlights:

• While federal oversight previously covered these fair lending obligations, under this administration
• Right now, DFPI has no obligation to conduct fair lending examinations on any schedule.
• In short, it ensures that existing fair lending laws are actually examined.
• Without an examination structure, California's fair lending protections... ...fair lending laws are actually
• . ...Center for Responsible Lending and strong support.

Summary: The committee heard a long agenda of bills, with members repeatedly noting that votes would likely be held later because a quorum was not yet present. Early measures included AB 2393, which would create fixed statutory damages for false arrest or imprisonment claims involving aggravating conduct such as face coverings, restraints, forcible transport, or firearms; supporters said it would help victims obtain accountability, while no opposition appeared. AB 2050, the HOA reserve-funding bill, drew support from HOA and housing finance advocates who said underfunded reserves lead to special assessments and safety risks, while consumer groups warned of large cost increases; Senator Laird said he would move it when a quorum was available. AB 1564, making employee-union communications confidential in certain public-employment disputes, was supported by labor groups and opposed by counties, school administrators, and other local agencies who argued it would hinder investigations. AB 2231, a CEQA streamlining bill for two Sutter Health hospital projects, was backed by the author and health-care supporters but opposed by a construction trade group that said it would strip workers of wage-and-hour remedies. The committee also heard AB 2689, which would allow non-renewal of subsidized housing leases for over-income tenants under specified conditions; there was little testimony beyond the author’s presentation. AB 801 would require the Department of Financial Protection and Innovation to regularly examine lenders for fair lending compliance; supporters framed it as a response to federal retreat from consumer protection, while credit unions and bankers said they shared the goal but wanted more work on impacts to smaller institutions. AB 2721, as amended, would require hotels to post notice when they have actual knowledge of ICE or CBP reservations; hospitality workers and labor supporters said it would improve worker safety, while hotel industry groups said they were moving toward neutral after amendments, though some owners remained opposed. AB 2035 would create a narrow, court-supervised alternative vote threshold for a single HOA, Laguna Woods Village, to amend outdated CC&Rs; the author and HOA representatives said the change was needed because repeated elections had failed to reach quorum. Later bills included AB 1827, which would raise the small-claims limit for businesses from $6,250 to $15,000 and allow up to three filings per year; supporters said it would modernize access for small businesses, while the Judicial Council opposed it as likely to crowd calendars and shift small claims away from its intended purpose. AB 1577 would require data centers to report energy-use information to the Energy Commission and local agencies; supporters said better data is needed for grid planning, while one industry group remained opposed in print but encouraged by amendments. AB 2164 and AB 1854 both expanded California shield-law protections for reproductive and gender-affirming care providers and related entities against out-of-state legal actions and extradition requests; supporters said the bills were needed to protect providers and patients after Dobbs, while opponents argued they would shield harmful medical practices and interfere with parental rights and other states’ investigations. AB 2529 would require claims against public agencies to include a declaration that the contents are true and correct, and AB 2247 would create the Thrive Act to fund trauma-focused mental health services for youth affected by gun violence; both drew support from local agencies or survivors, with no significant opposition recorded in the excerpt. The final bill discussed, AB 1821, would change Public Records Act response timelines from calendar days to business days to address large, complex, or bad-faith requests; the author said it would better match agency work capacity while preserving access, and the hearing continued with testimony as the transcript ended.