Assembly Standing Committee on Appropriations

Hello, everyone. Welcome to the January 22, 2026 Assembly Appropriations Committee hearing. We have 48 bills to consider this morning as part of our regular order hearing. Before we begin, I have a few housekeeping notes to cover. First, I'd like to welcome Assembly Member Hoover as the new vice chair. Welcome, Mr. Hoover of the Committee.

I would also like to acknowledge our returning Members and welcome our new Members to the Committee. Assembly Members Krell and Muratsuchi, who are not here. Oh, Assemblymember Krell's here. Okay. Mr. Muratsuchi is not here. Let's see.

I would also like to thank Assemblymember Stefanie for filling in for Assemblymember Arambula and Assemblymember Bauer Kahan for filling in for Assemblymember Muratsuchi on this Committee day. Thank you. Okay.

We encourage the public to provide written testimony before the hearing by visiting the Committee [email protected] Please note that any written testimony submitted to the Committee is considered public comment and may be read into the record or reprinted. The hearing room is open for attendance. All encouraged to watch the hearing from the website.

We will accept any public comment or any Bill placed on the suspense filed today by the Committee and for which the author waived presentation before the close of the regular order hearing. Testimony on any such Bill will be limited to statement of name, organization and position on Bill.

Committee will allow no more than 40 minutes of testimony in total. As you came into the hearing room, there were rules. Basically, everyone needs to behave and act like an adult. With that, let's establish a quorum.

[Roll Call]

We have a quorum. We have a quorum. Great. And with that, I would like to take up the consent calendar. Do we? Oh, wait, yeah, the consent calendar. We need to do two motions. The first motion is do pass to consent applies to bills that enjoy unanimous support in the Committee and are eligible for Assembly floor consent.

Do we have a motion for this? Motion and a second

[Roll Call]

Those are out on an a roll call. The second motion is do pass applies to bills that also enjoy Unanimous support in the Committee, but are not eligible for Assembly floor consent consistent with Assembly rules. So we have a motion on this. We have a motion and a second, great.

[Roll Call]

That is out on an a roll call as well. I'd like to dispense with the suspense calendar. Madam Secretary, would you please read the suspense calendar?

[Roll Call]

The suspense calendar is deemed approved. Okay, now we're on to bills to present to the Committee. We think. I think we first have. Mr. Alvarez, I believe you are up presenting AB35. You can begin when you're ready.

Thank you, Madam Chair and members of the committee. Assembly Bill 35 provides a targeted exemption from the Administrative Procedures Act, known as the APA, for programs funded by Proposition 4, proved by the voters overwhelmingly, placed on the ballot by the Legislature in 2024.

Multiple state agencies indicated that the APA-required rule-making process could delay funding 12 to 18 months before a single dollar reaches our communities. In the meantime, Prop 4 dollars intended for water reuse, recycling, wildfire mitigation, long-duration energy storage, grid support, are effectively on hold at the moment.

If APA exemption was included in Prop 4, which it was not, existing programs would already have received these funds and they would have been dispersed by the departments and agencies. Bond measures like Proposition 4 are most effective when funds are quickly deployed strategically and invested before the conditions worsen or costs rise.

Lastly, as noted in your analysis on page two, the California Natural Resources Agency and other state agencies anticipate the cost to be minimal and absorbable to move forward with this. Respectfully request your support of AB 35. Thank you, Madam Chair.

Thank you. And you have witnesses in support?

Yes. Sorry. Chair and members, Reed Addis, on behalf of the Clean Water Natural Resources & Parks Coalition, in strong support. This is a simple but critical measure for our community and all your communities. As the Assembly Member mentioned, traditionally we have had these provisions on our natural resources and climate bonds in the past.

This creates a-- or this makes a fix that is critical, it allows us to move forward, and hopefully, if we do this in a timely manner, Coastal Conservancy and the Wildlife Conservation Board will be able to have their hearings next month and be able to grant some of those dollars. So thank you very much, and in support.

Thank you. Any additional folks in support?

Good morning, Madam Chair. Mark Fenstermaker, here on behalf of multiple clients: the California Council of Land Trusts, California Association of Resource Conservation Districts, Santa Clara Valley Open Space Authority, Wildlands Conservancy, Peninsula Open Space Trust, Big Sur Land Trust, Coachella Valley Conservation Commission, the League to Save Lake Tahoe, Sonoma Water, Sustainable Conservation, and I was asked to register support for the Nature Conservancy. Thank you.

Thank you. Any folks in opposition? Primary opposition? Any additional-- anyone in the room? Department of Finance.

Hi. Good morning, Madam Chair and members. Christian Beltran with the Department of Finance. I was asked to come today just to provide some general comments, and although we don't have any specific positions for the bills that are on the agenda today, we really appreciate the opportunity to be here today.

And just wanted to express that, as many of you know, in addition to the great work that you and your staff do, and as many of you already know, the Department of Finance will assess nearly every bill that has a fiscal impact and we'll share our assessment of the bill's potential fiscal impact with you here in the committee during the second House process.

Our analyses are also shared with everyone online and on our website. We look forward to working with you and the committee staff when we near that part of the process. And further, I would just like to underscore that the work that you do here in this committee will continue to be critical as the state continues to face unknowns related to the state budget.

While the Governor's Budget forecast does not reflect the 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, both the LAO and our estimates forecast shortfalls in subsequent fiscal years that are driven by expenditures exceeding revenue growth.

With all this in mind, the Administration looks forward to tackling some of the most pressing policy changes with the Legislature, but doing so within the confines of our budgetary constraints. Thank you, and I'm happy to answer any questions any members have about our role in the process.

Thank you. Any questions for DOF? Okay. Any questions for our colleague here, Mr. Alvarez, on AB 35?

Move the item.

We have a motion and a second. Would you like to close, Mr. Alvarez?

Just, thank you, and appreciate the almost 40-- over 40 co-authors. This was bipartisan, unanimous support out of Natural Resources, and again, request your support as well. Thank you.

Forty co-authors.

Over 40.

That's-- over 40. Impressive. That is out on an A roll call, Mr. Alvarez. Thank you. Mr. Harabedian, you are up next and you are presenting AB 748.

Thank you, Madam Chair. 748 establishes pre-approved housing programs for local agencies. It was approved unanimously here last year in this Committee. Thank you to the Chair for co-authoring last year. Minor fiscal impact, also absorbable and no formal opposition. Respectfully ask for an aye vote.

Great. And any. Any primary witnesses in support. Anyone else in the room wish to express support? Any primary witnesses in opposition? Any additional opposition? Okay. Anything from DOF? No. Okay. Bring it back to the committee; questions? We have a motion. Second. Would you like to close?

Thank you.

Great. That is out on an a roll call. That is how you do business here. Okay. Next, we have Mr. Schultz. You are presenting AB 939.

Good morning Madam Chair and colleagues. I'm pleased to present AB939. I'll try to be brief. Right now some lower income designated home ownership units are remaining empty and going unsold for extended periods of time of 180 days or more.

Nonprofits like Habitat for Humanity, Self Help Enterprises and many others are prohibited during the entitlement phase of a project from partnering with market rate home builders to ensure compliance with density bonus law. They are also prohibited from acquiring and selling to qualified buyers for six months after certificate of occupancy.

Existing law can cause these units to sit vacant for months, generating unnecessary carrying and marketing costs to the developers before they can transfer the title to a qualified nonprofit to manage the initial sale to a low income buyer.

AB 939 respectfully provides a targeted no cost fix to streamline affordable housing homeownership by removing the 180 day resale restriction currently in state law if the developer is under contract with a nonprofit affordable housing organization for the transfer of units to be sold to low income individuals.

Directly under this Bill, income restricted homeownership units could be sold immediately to qualified nonprofit affordable housing organizations rather than sitting vacant after construction for 180 days or more. This allows developers to reduce holding and marketing costs while ensuring that homes reach income-qualified families more efficiently.

The Committee analysis states that the cost of the Bill on the General Fund and on local cities and counties are minor and absorbable. I will note that I look forward to working with the opposition if the Bill moves out of Committee today in the hopes of resolving their concerns.

And with me to testify in support of AB939 is Debbie Arakel, CEO of Habitat for Humanity of California.

You may begin.

Thank you. Good morning, Chair Wicks,

And if you could turn the mic on.

Okay, thank you. Good morning Chair Wicks and Committee Members. Thank you for the opportunity to share today. I'm Debbie Arakel with Habitat for Humanity California and I'm here representing our Habitat Chapter statewide who are providing affordable homeownership in 41 counties.

We are grateful to Assemblymember Schultz for his leadership in addressing the challenge facing the building industry and we're proud to sponsor AB 939 to help ensure that affordable for sale units are built and sold to lower income families who will occupy those homes. I'd like to emphasize two key points.

This Bill preserves and strengthens the original intent of the two year old law. There is a challenge with the law and there is a solution. Private large scale builders came to Habitat for Humanity seeking our help in identifying lower income buyers because we have expertise in this area.

The building industry is working to solve a problem that they face with the challenges of the current density bonus law for affordable sale units. The issue is their inability to find qualified buyers for their affordable for sale units.

They cannot find them in a timely manner and this results in added time and cost due to the 180 day required delay before Habitat for Humanity or other qualified nonprofit providers of homeownership can purchase and then qualify homeowners. The Bill does not strike out the waiting period entirely for all nonprofits.

It's only for legitimate organizations with the express purpose of serving lower income home buyers. The current legislation has had two years to work and it's fallen short adding to builder costs and resulting in vacant homes. That could be providing the dream of homeownership and to a lower income family.

AB 939 adds an additional option to help achieve the goal of protecting these units to ensure that they are purchased by an individual and occupied by these qualified families. It allows them to earn equity and enjoy a below market affordable mortgage. Doing nothing ignores a problem and that problem can be alleviated with AB939.

This no cost legislation is a smart fix to adding additional options to promote construction of affordable units for lower income Californians to purchase. I am grateful to the Chair and the Committee for your consideration and I urge an aye vote. Thank you.

Thank you. Do we have additional folks in the room? Wish to express support, please. Name, organization and position.

Vanessa Chavez with the California Building Industry Association in support. Thank you.

Great. Thank you. Any someone else coming up here?

Holly Fraumeni de Jesús with Lighthouse Public Affairs on behalf of SPUR in California in support. Great.

Any folks in opposition, primary witnesses in opposition. Any additional folks in the room wish to express opposition. Okay, we'll bring it back to Committee. Question?

Madam Chair, I want to thank the author and have different humanity as a for some of us that serve in local government, you guys do amazing job throughout our state. So thank the author for this Bill. I think it's important as we create more housing. And so with that I like to be at it as a co author.

Great. Thank you.

And I'll move the item.

Great. Any additional questions or question thoughts? Okay, we've got a motion. Do we have a second? Great. Would you like to close?

Respectfully ask for an aye vote.

Great. I would also love to be added as a co author if I'm not already. And with that, that Bill is out. On a B roll call with Ms. Dixon and Mr. Ta voting aye.

Thank you very much, everybody.

Thank you. Next we have Mr. Gallagher, who will be presenting AB 1091. And this is for presentation only.

Thank you, Madam Chair. It's a pleasure to be with you this morning. As many of you know, two weeks ago we lost our congressman in the north state, Congressman Douglas Lamalfa. And you know, he was a huge champion of rural issues, mentor to me, inspiration, you know, to many of us.

And I certainly wouldn't be here without him. And this bill, 1091, is one of his unique ideas that he came up with when he served in the legislature. And it was to allow for eight letter license plates and to allow a program for that.

And I'm sure that he had some ideas on eight letter plates that he would like to have, but I think he thought that this was something that would be in demand by the California public and would generate revenue.

And the idea being that that revenue generated from these specialty plates could then go to help support rural programs, like the Williamson Act, which as you know, the subvention funds that go to support that have been cut in recent years.

This is money that could go into helping support that very popular program that preserves agricultural land and open space. So, he championed this. In fact, he would call me pretty much every year and say, "You're going to run that eight letter plate bill, right?" And I'd say, "I'll go for it." We're never able to get it through.

I'm hoping that maybe we can now. And I think you'll agree this is actually a pretty good idea. And I hope that I can get your support to move it forward. And you think about it, there's so many different categories that could come with eight letter license plate. But you know, right now you can get Mustang, right?

But if you're a Chevy guy or gal, you can't get Chevelle, right? You know, if you, you could get "L-Camino", right? But if you're a Ford guy, you can't get Ranchero, right? And so many different things you could do with that eight letter play, I think it'd be very popular.

I think it would generate more money than it would actually cost to do this program ultimately. And the money that we can generate can go to much needed programs to help support, you know, our rural areas, our fares as well. So I wanted to present that.

I also want to point out that you have a letter here from SEMA. The specialty, you know, market in California generates $40.44 billion is a huge economic impact. So, imagine that this engine that's already really running here in California having this ability, we know that it can generate the funds that would be needed.

Also have reached out to all the stakeholders involved here, including DOJ, who said this would not be a problem, for example, for the license plate readers. And so we think we've got a good path forward for this bill and I'd like to ultimately see us get it through it.

I would ask for your support when it comes up on suspense. Thank you, Madam Chair.

Thank you. Do we have any folks in the room wish to express support, primary or otherwise? Any opposition, primary or otherwise? Well, thank you for your presentation, Mr. Gallagher.

Thank you, Madam Chair.

Next, we are moving on to Ms. Wilson. You are up, and you are presenting AB 643.

Thank you. Good morning. I think I have my witness here, so I invite them up. All right. Good morning, members. I'm pleased to present AB 643, a bill that contains a small number of technical and administrative changes in order to authorize a local jurisdiction to include diverted organic material used as a beneficial agricultural amendment towards its recovered organic waste procurement target. I recognize that is a really long statement, but thank you.

So SB 1383, originally passed almost 10 years ago in 2016, set forth ambitious goals to divert organic waste from landfills in order to significantly cut down on methane emissions. Additionally, the state passed a requirement that, beginning in 2022, agencies and jurisdictions were to procure eligible end products made from that diverted material.

Today, these products have been largely limited to largely compost, mulch, energy made from anaerobic digestion, and electricity from biomass conversion. While these markets have been getting off the ground, the Legislature has made slight adjustments in recent years to these procurement options, providing additional options for agencies but still meeting the original intent of SB 1383.

So AB 643 is a narrow bill that allows for an agricultural fertilizer product to be added to the list of procurement options under SB 1383 under two conditions. The diverted organic material must be processed at a facility using technologies authorized by CalRecycle under SB 1383 currently, and secondly, the end product must be licensed by CDFA as an agricultural fertilizer and used in a beneficial manner as an agricultural amendment.

As a result of the narrow focus of this bill, this bill does have minor and absorbable costs to the state. Now, with me to speak today to the importance of AB 643 is Carrie West, representing Valley Sanitation District.

Hi. Thank you so much for your time. As the Assembly Member said, this is a narrow bill. Right now in California, half of all municipal solid waste ends up in landfills, approximately 146 tons. What this bill does is simply allows municipal districts to take that waste and convert it into a usable material that can be composted, used as fertilizer, and placed out as land cover.

Right now, 1383 requires that 90% of all waste as of this year be converted into material that cannot go into landfills. In order for municipal utilities-- or municipal districts to meet that requirement, this bill simply gives us one more tool as an end-use pathway for the products that we generate.

We very much would like to comply with 1383. This is just one more tool in the toolbox to make sure that California is meeting its long-term reduction, landfill methane reduction, greenhouse gas reduction goals. So thank you very much for your time and consideration for this bill.

Thank you. Appreciate your testimony. With that, do we have any other witnesses in support in the room? Any primary witnesses in opposition? Any additional folks in opposition? Okay, we'll bring it back to committee. Any questions? We have a motion, a motion, and a second. Would you like to close?

Thank you, and I respectfully ask for an aye vote.

Thank you. That is out on an A roll call with Mr. Tangipa voting no. Mr. Jackson, you are next, and our last author for our regular order of business here. And you are presenting AB 96.

Thank you, Madam Chair. Committee Members, this is AB96, which would remove the requirement for a high school diploma or equivalent to obtain certification as a certified Medi-Cal Peer support specialist. Peer support services are recognized by the Substance Abuse and Mental Health Service Administration as an evidence based practice. They are effective in fostering recovery and providing support.

With me today is Amer Rashid with the County Behavioral Health Directors Association of California. Meran Agonafer with Cal Voices and they're here for any technical questions you may have or respectfully ask for an aye vote.

You can begin.

Oh, sorry.

Nope.

Take no questions.

Just take questions. Great. Thank you. Sorry. Doing many things at once. Any folks additional folks in the room wish to express support any opposition? Great. We'll bring it back to Committee questions. Motion. Second would you like to close spare.

Respectfully ask for an aye vote.

Great. That is out on a roll call. Thank you.

Now for the regular order of business. I want to open up the hearing to comments by Members of the public. Any members of the public wish to express any thoughts opinions on anything. Okay, great. We will conclude our regular order hearing.

Okay. With that I would now like to go to our suspense file hearing. We have 53 bills under consideration on the suspense file. It's now time to dispense with those 53 bills. Obviously these were all bills that were made into two year bills somewhere along the way and they're now the privilege of having them in our Committee.

I would also like to announce that the hearing order is organized alphabetically by author. An electronic copy of the agenda is available online at the Assembly Appropriation Committee website, which is located at apro.assembly.ca.gov There are also a limited number of hard copies of the agenda in the hearing room.

Later this afternoon following today's hearing, the Committee will post the results of the suspense file hearing on the same website. Assembly Member Hoover, is there anything you'd like to say before we get started? Nope. Okay. The first politician in the history of politicians to not actually say something. Thank you.

You're going to be a very good vice chair. I'm just kidding. With that let's begin. We're going to go a little bit out of order on this first two bills. The first Bill, AB 1159 by Assembly Member Addis, which is actually Bill number two here on the file.

I see a motion by Mr. Gonzalez and a second by Mr. Fong with that that Bill is out on an. It's The Addis. Sorry, 1159 Addis student personal information. Do pass out on an a roll call. Without objection.

We will substitute the motion and second for all do pass or do pass with amendments on the rest of the suspense file.

And now we would go to the first Bill AB 405, the Fashion Environmental Accountability Act, holding Committee AB 52 Aguiar Curry Farmer Equity Advisory Committee, do pass out with Republicans not voting

AB464 Aguiar Curry Sexual Assault in Prisons do pass as amended to strike the four year extension after tolling that's out with Republicans not voting AB 1359 Ahrens Jury Service Exemption do pass out on an a roll call AB277 Alanis Background Checks do pass out on an A roll call AB333 Alanis Waste Glass Market Development Payment Holding Committee. AB 767 Ellen Sexual Violent Predators do pass out on an a roll call. AB 664 Alvarez Community College degrees do pass out on an a roll call

AB 1204 Alvarez Local Control Funding Formula do pass out on out with Republicans not voting. AB298 Bonta Healthcare Cost Savings Sharings holding Committee. AB910 Bonta Pharmacy benefit managers do pass is amended to require HCAI to report BP sorry PBM data and non compliance and strike the rest of the Bill out, with Republicans not voting. AB 1153 Bonta abandoned RVs do passes amended to strike the Solid Waste Disposal and Co Deposal Site Cleanup Program Fund out with Republicans not voting.

Sorry AB 946 Bryan Outdoor For All by and and 30 by 30 do pass out on an a roll call. AB 1080 Bryan Foster Care Payments do passes amended to remove SSI benefits and delete the added maintenance account out with Republicans not voting. AB 1349 Bryan ticket sellers do pass out with Republicans not voting. AB 296 Davies Career Tech equipment registry holding Committee

AB 623 Dixon fuel reduction reports holding Committee. AB 1366 Flora reimbursement for medication therapy management holding Committee. AB 714 Fong Commercial Driving License Training Due pass out with Republicans out sorry out on an a roll call. AB 805 Fong Career Apprenticeship Bridge Program do pass out on an A roll call. AB 1091 Gallagher License Plates Holding Committee. AB 1439 Garcia development project investments due pass is amended to require a study to determine the cost of prohibiting investments in development projects not adhering to labor standard protections out on a B roll call.

AB 1054 Gipson deferred retirement option program do pass out on an A roll call. AB 1065 Gipson California Housing Justice Act of 2025 do pass is amended to delete the fund, limit the work working group, and require planned updates as needed rather than annually out on a B roll call.

AB 634 Jeff Gonzalez Tioneptine Ban do pass out on an a roll call. AB 647 Mark Gonzales Abandoned RVs do pass out on an A roll call. AB 1113 Mark Gonzalez Federally Qualified Health Centers due pass to Rules Committee with authors' amendments to extend the timeline, remove DHCs, and add penalties out on a B roll call.

AB 1198 Haney Prevailing Wage Due Pass is amended to retain the existing rate adjustment for affordable housing projects out with Republicans' not voting. AB 1265 Haney historic tax credit Program do pass out on an a roll call.

AB 710 Irwin electricity pricing and Advanced Metering do pass out the Republicans not voting. AB762 Irwin Disposable Battery Embedded Vapes do pass out on a B roll call. AB72 Jackson EV Economic Opportunity Zone do pass out with Republicans not voting. AB673 Jackson Unaccompanied Youth Sport Grants. Sorry, I'm going to do AB72 again. I think I just.

No, no, no. I think she read.

Oh yeah. AB72 Jackson EV Economic Opportunity Zone do pass, add on an A roll call. Okay, AB673 Jackson Unaccompanied Youth Sport Grants do pass out with Republicans not voting. ACA 4 Jackson Homelessness and Affordable Housing Holding Committee. ACA 7 Jackson Government Preferences do pass out on a B roll call.

AB 883 Lowenthal Elected Officials and Judges do pass out on an A roll call. AB 1383 McKinnor, Public Employee Retirement Benefits, do pass is amended to modify the pensionable compensation provision. Strike Section 6 of the Bill and make other related changes, out with Republicans not voting.

AB375 Nguyen Qualified Autism Service Paraprofessionals do pass out on an A roll call. AB501 Papan Fraudulent Liens do pass out on anA roll call. AB 1171 Patel part-time faculty do pass out on a B roll call. AB 292 Patterson Domestic Violence do pass out on an A roll call.

AB 230 Ransom Pierce's Disease Control Program do pass out on an A roll call. AB1049 Celeste Rodriguez California Food Assistance Program, do pass out on B roll call. AB 1235 Rogers CSU Workforce Requirement do Passes amended to exclude housing projects from the Bill. That's out with Republicans not voting.

AB 1241 Schiavo Financial Aid Study Holding Committee AB 685 Solache Small Business Resiliency do pass out on an A roll call AB713 Solache Student Employment do pass out on a B roll call.

AB 1486 Soria Climate Bond Fund for Research Farms do pass as amended to specify that UC and CSU will designate the agricultural experiment stations and agricultural research institutes, out with Republicans not voting AB 1245 Stefanie State contract certification do pass as amended to limit the bill's application to contracts valued in excess of $550,000.

That's out with Republicans not voting. AB 1070 Ward Residential Building standards do pass out on an A roll call. AB 577 Wilson Prescription Drug Steering Holding Committee. AB 1421 Wilson Road Use Charge do pass out with Republicans not voting.

Okay the Committee has moved 43 bills to the Assembly floor floor either as do pass or do pass with amendments in most cases. Amendment language will be available Monday through the California Legislative Information Website. Thank you for the many suspense hearing today and we are adjourned.