Senate Standing Committee on Appropriations

Good morning, everybody. The meeting of the Senate Committee on Appropriations will now come to order. We are holding our hearing Today in room 2200 of the O Street Building. We. We have a relatively short agenda today, and we would like to have all of the Committee Members come. I'm really happy to see that everyone is here.

We have 34 measures on today's agenda, all of which are suspense file candidates. A note is SB385. Senator Seyarto, which is currently on file, will be rescheduled for our next meeting. So if you're here for that one, we will put it over to next week. The authors for all measures on today's agenda have waived presentation as usual.

However, we will be taking testimony from the public on each and every item that they wish to testify on. Before we begin, I want to remind any witnesses to limit their testimony to the fiscal aspects of the Bill, and please refrain from lengthy policy discussions and repeating prior testimony in your comments.

Before we begin today, I want to welcome the new Committee Members. Very happy to see you here, and thank you for being prompt and many instances beating me here to the Committee room. And we're ready to establish a quorum, so please call the roll.

[Roll Call]

The quorum has been established, so now we're going to move on to the business of the day. Our first order of business will be the adoption of Committee rules for the 25-26 session. Other than a few minor updates to the procedures, the rules are essentially identical to those from the last legislative session.

So if there is no objection, the Committee rules are adopted. Seeing no objection, they are adopted. Now we'll move on to the measures that are up for today's hearing. We'll start with SB4 by Senator Cervantes. Is there anyone here that would like to.

So first, to begin with, as I articulated before, Senator Cervantes has waived presentation, so we'll go directly to the witness testimony. Are there any witnesses present who would like to testify in support of SB4? Are there any witnesses in the room that would wish to testify in opposition?

I want to welcome Christian Beltran from the Department of Finance. Thank you for being here today. Do you have a file on this measure?

Good morning, Madam Chair. Thank you again for the opportunity to be here. And no particular file on this measure right here, but I did want to just thank you and the Committee for an opportunity to give some opening remarks since it is the first hearing of the year for all of you.

As many of you know, the Department Finance assesses nearly all bills that have a fiscal impact, and we'll share our assessment of a bill's potential fiscal impact with you here in the Committee during the second House process. Our analyses are also shared online and on our website.

We look forward to working with you and Committee staff when we near that part of the process. Additionally, I would like to underscore that this process will be critical as the state continues to face many unknowns related to the state budget.

While the Governor's Budget forecast does not reflect a recession, it does recognize several risk factors that could negatively affect the economy and state revenues. These factors include stock market and asset price volatility and declines, particularly those affecting high income earners as well as geopolitical instability.

And although the budget is balanced, it anticipates shortfalls in subsequent fiscal years that are driven by expenditures exceeding revenues. The state has made progress in reducing these shortfalls. However, additional decisions may be necessary at the May revision to maintain a balanced budget not only in the coming year but also on an ongoing basis.

An additional risk in 2025 comes from stated policy changes by the Federal Administration that could negatively impact California's economy, especially in the areas of international trade and immigration, as well as in health care.

With all this in mind, the Administration looks forward to tackling some of the most pressing policy challenges with the Legislature, but doing so within the confines of our budgetary constraints. Thank you and I'm happy to answer any questions that Members have about our role in the coming months. But again, appreciate the opportunity to give these comments.

Thank you very much. Appreciate the information and I think this Committee takes very seriously the potential volatility of the budget, and we're very mindful of that and want to be good stewards of the public tax dollars. So we really appreciate your comments here today and look forward to having your input as the bills come forward.

And all of these bills, as I indicated, will go to suspense and then we'll have an opportunity to look at them and to figure out which ones get out. So thank you very much. Her day we're going to move on. Do you have any questions or comments in regards to this Bill? Seeing none.

This is a suspense file candidate. So without objection, SB4 will move to suspense. Going to move on to SB6 by Senator Ashby. Senator Ashby has waived presentation, so we're going to go directly to witness testimony. Are there any witnesses present who would. Like to Testify in support of SB6.

How about any witnesses that would like to testify in opposition? Oh, excuse me. Yes. We're going to move kind of quick.

So Zach Cefalu, League Of California Cities in support. Thank you.

Great. Thank you so much. Appreciate you being here today. Anybody else in support? How about in opposition? Seeing none? Department of Finance is not here, so we'll move on to questions or comments from the Committee, seeing none. This is a suspense file candidate, so without objection. SB6 will move to suspense. Moving on to SB15 by Senator Blakespear.

Is there. Senator Blakespear has waived presentation on this bill. Is there anybody here who would like to testify in support? Anybody who would like to testify in opposition? Do you have any questions or comments on this? Seeing none. This bill is a suspense file candidate. So without objection, SB15 will move to suspense.

Moving on to SB19 by Senator Rubio. Senator Rubio has waived presentation on this bill. Is there anybody here that would like like to testify and support? Welcome.

Zach Cefalu again with the League of California cities in support. Thank you.

Thank you so much. Anyone else? Anyone in opposition? Seeing none. Questions or comments? Seeing none. This is a suspense file candidate, so. without objection, SB19 will move to suspense. Moving on to SB248 by Senator Rubio. Senator Rubio has waived presentation on this bill. Is there anyone here who would like to testify in support?

Anybody who would like to testify in opposition? Any questions or comments from the Committee? Seeing none. SB this is a suspense file candidate. So without objection, SB248 will move to suspense. SB360 by Senator Rubio. Senator Rubio has waived presentation. Is there anyone here who would like to testify in support? Anyone who would like to testify in opposition?

Any comments or concerns? Seeing none. This bill is a suspense file candidate. So without objection, SB360 will move to suspense. SB28 by Senator Umberg. Senator Umberg has waived presentation. Is there anyone here who would like to testify in support of SB28?

Thank you, Madam Chair Members Skyler Wonnacott, California Business Properties Association in support.

Thank you very much. Anyone else in support? How about in opposition? Questions or comments from the Committee? Seeing none. This bill is a suspense file candidate. So without objection, SB28 will move to suspense. SB447 by Senator Umberg. Senator Umberg has waived presentation on this bill. So we're going to go directly to witness testimony.

Any witnesses who would like to testify in support of SB447? How about witnesses in opposition? Any questions or comments by the Committee? This is a suspense file candidate, so without objection. SB447 will move to suspense. SB45, Senator. And this by Senator Padilla who has waived presentation.

Is there anyone here that would like to testify in support of SB45? How about in opposition? Seeing neither, bring it back to the Committee for comments. Questions saying none. This is a suspense file candidate. So SB 45 will move to suspense. SB 302 by Senator Padilla. Senator Padilla has waived presentation.

Is there anyone that would like to testify in support?

Good morning, Chair and Committee Members. Molly Corcoran with Axiom Advisors on behalf of Energy Influence and support. Thank you.

Thank you very much.

Morning. Madam Chair Members, this is Constance Hovez on behalf of NG North America in support.

Thank you. Thank you for being here today. Anyone in opposition? Seeing no further testimony, questions or comments. This is a suspense file candidate. So without objection, SB302 will move to suspense. Moving on to SB388 by Senator Padilla who has waived presentation. Is there anyone here who would like to take testify in support?

How about anyone who would like to testify in opposition? Seeing no comments or questions by the Committee? This bill is a suspense file candidate. So without objection, SB388 will move to suspense. Members, we're going to move on to SB70 by Senator Seyarto. Senator Seyarto has waived presentation. Is there anyone here that would like to testify in support?

How about in opposition?

Good morning, Madam Chair Members. I'm Phil Vermeulen representing the Coalition of Small and Disabled Veteran Businesses. This is about the fifth time this bill has been of a similar type over the last since 2012, when the last time the fee was raised. We have a serious problem.

The original reason for this program was when, for example, my members represent a lot of the or provide a lot of supplies to the prisons and things. When there was a shortage of something they could pick up instead of having to go through the normal RFP process. The original number was $50,000.

Then in 2012 it was raised to 100. Now this bill proposes to raise it to 350. We've done a deep dive into the people using this. What it requ is a two call. So in other words, one of the department of general service members can call two people on the small business list or the disabled veteran list.

That is arbitrary, which is problematical in and of itself. But more importantly, 70% of the products that are being distributed through this program are going to only a handful of people. If this program really, truly benefited everybody, then we would be totally in support of the bill. The other problem is I need to.

Wrap up because we're not.

One other quick thing policy for the state. If you're merging all these products together, you're not bidding on it. So it's going to cost the state a lot more money. We have deep concerns and we urge a no vote on this bill. Thank you.

Thank you very much, sir. Appreciate you being here today. Anyone else in opposition, any questions or comments saying none. This bill is a suspense file candidate. So without objection, SB 70 will move to suspension. SB 76 by Senator Seyarto. Senator Seyarto has waived presentation. Is there anyone here that would like to testify in support?

How about anybody in opposition? Seeing no questions or comments from the Committee? This is a suspense file candidate, so. Without objection, SB 76 will move to suspense. Moving on to SB 87 by Senator Seyarto who has waived presentation. Is there anyone here who would like to testify in support? Anyone in opposition? Seeing no comments or questions?

This is a suspense file candidate, so without objection, SB 87 will move to suspense. SB 231 by Senator Seyarto. Senator Seyarto has waived presentation. Is there anyone here who would like to testify in support? Anybody who would like to testify in opposition? Seeing no comment or question on this bill? This is a suspense file candidate, so.

SB231 will move to suspense. SB232 by Senator Seyarto who has waived presentation. Anyone here like to testify in support? How about anyone in opposition seeing no comments or questions? This is a suspense file candidate, so without objection, SB 232 will move to suspense. As I indicated previously, SB 385 will move to another date.

Moving on to SB 77 by Senator Grove. Senator Grove has waived presentation. Is there any witness that would like to testify in support of her bill. How about anybody in opposition? Seeing no questions or comments from the Committee? This is a suspense file candidate, so without objection, SB77 will move to suspense.

SB86 by Senator McNerney who has waived presentation. Is there anyone here who would like to testify in support?

Durazo Manning on behalf of California State Treasurer, Fiona Master, proud co sponsor of this bill.

Very good. Thank you for being here today. Anyone else in support? How about anyone in opposition? Seeing no questions or comments from the Committee? This is a suspense file candidate, so. Without objection, SB86 will move to suspense. SB235 by Senator McNerney. Senator McNerney has waived presentation on this bill.

Is there anyone here who would like to testify in support of SB235? How about in opposition to 235? Seeing no questions? Or comments from the Committee. This is a suspense file candidate, so. Without objection, SB235 will move to suspense. SB279 by Senator McNerney. Senator McNerney has waived presentation on this bill.

Is there anyone here that would like to testify in support? How about anyone that would like to testify in opposition?

Chris Grogan on behalf of Republic Services in opposition. Thank you.

Thank you.

Thank you very much for being here. Appreciate it very much. Anyone else in opposition seeing no questions or comments from the Committee. SB279 is a suspense file candidate, so without objection, SB279 will move to suspense. Moving on to SB224 by Senator Hurtado. Senator Hurtado has waived presentation on the bill.

Is there anyone here who would like to testify in support? How about anybody that would like to testify in opposition? This bill is seeing no comment or questions from the Committee. This is a suspense file candidate, so without objection, SB224 will move to suspense. SB345 by Senator Hurtado. Senator Hurtado has waived presentation.

Is there anyone here who would like to testify in support of that bill? How about in opposition to 345 seeing no questions or comments from the Committee? This is a suspense file candidate, so without objection, SB345 will move to suspense. We're going to take up SB250 by Senator Ochoa Bogh. Senator Ochoa Bogh has waived presentation.

Is there anyone here that would like to testify in support Is there anyone here that would like to testify in opposition? Seeing no questions or comments from the Committee? This is a suspense file candidate, so. SB250 will move to suspense without objection. SB275 by Senator Smallwood-Cuevas. Senator Smallwood-Cuevas has waived presentation.

Is there anyone here that would like to testify in support? Anybody who would like to testify in opposition? Seeing no questions or comments? This is a suspense file candidate, so without objection, SB275 will move to suspense. SB578 by Senator Smallwood-Cuevas who has waived presentation. Is there anyone here who would like to testify in support?

How about anyone who would like to testify in opposition? Seeing no questions or comments from the Committee? This is a suspense file candidate, so. SB578 will with without objection will move to suspense. Moving on to SB380 by Senator Jones. Senator Jones has waived presentation. Is there anyone here who would like to testify in support?

Anyone who would like to testify in opposition? Seeing no questions or comments from the Committee. This is a suspense file candidate, so without objection, SB380 will move to suspense SB428 by Senator Laird. Senator Laird has waived presentation. Is there anyone here that would like to testify in support? Anyone that would like to testify in opposition?

Seeing no questions or comments from the Committee. This is a suspense file candidate. So without objection, SB428 will move to suspense SB467 by Senator Laird who has waived presentation. Anyone here who would wish to testify in support about anyone that would like to testify in opposition? Seeing no questions or comments from the Committee.

This is a suspense file candidate. So without objection, SB467 will move to suspense. Moving on to SB438 by Senator Cabaldon who is here in the Committee and has waived presentation. Is there anyone here who would like to testify in support? Anyone who would like to testify in opposition? Seeing no questions or comments from the Committee.

This is a suspense file candidate. So without objection, SB 438 will move to suspense. SB 483 by Senator Stern who has waived presentation. Is there anyone here who would like like to testify in support of 4483? Anyone wish to testify in opposition? Seeing no questions or comments from the Committee. This is a suspense file candidate.

So without objection, SB483 will move to suspense. SB498 by Senator Becker. Senator Becker has waived presentation on this bill. Is there anyone here who would like to testify in support? Anyone here like to testify in opposition? No comments or questions from the Committee. This is a suspense file candidate.

Without objection, SB498 will move to suspense SB605 by Senator Cortese. Senator Cortese has waived presentation. Is there anyone here that would like to testify in support? How about opposition to 605? Seeing no questions or comments from the Committee. This is a suspense file candidate. So without objection, SB605 will move to suspense. And finally, SB688 by Senator Niello.

Senator Niello has waived presentation. Is there anyone here that would like to testify in support?

Sorry to do it on the last last Bill, Madam Chair.

Chris Micheli for the LA Chamber. Just to note, the Committee analysis is suggesting striking the third section of the legislative intent. I believe the author's intent there was to merely say that he didn't envision costs associated with creating a whole new office, but rather to draw upon existing resources and attorneys that are spread throughout the Executive branch that could be utilized to offer the full time drafting services for this proposed Office of Regulatory Council. And that was the purpose of including that provision. Thank you Madam Chair.

All good.

Thank you very much. Appreciate you being here today. Anyone else in support. Anyone in opposition? Seeing no comments or questions from the Committee. This bill is eligible for the suspense. For the suspense file. So SB688, without objection, will move to suspense. And that concludes our agenda for today. Let me thank everybody for participating here today.

We are always happy to see you join us. We have concluded today's agenda, so the meeting of the State Committee on Appropriations is adjourned. Thank you very much.