Assembly Floor Session

Assemblymember Calderon. Dear Lord, may we always be inclined towards keeping an open mind and open ear to what others do and say. May we always be known for our tolerance and compassion toward all of God's creatures. And may we find a way that all of humanity can live in peace and harmony with each other. May this be God's will. Amen.

Mr. Colleagues, today a national tragedy occurred in my district at Edwards Air Force Base where a B-52 bomber crashed and eight people were killed. And I would ask that we observe a moment of silence.

Members, please join me. Ready, begin. I pledge allegiance to the flag. of the United States of America, and to the republic for which it stands, one nation under God, indivisible, for liberty and justice for all.

Madam Majority Leader, you are recognized for your procedural motions. Good evening, Mr. Speaker. Pursuant to Assembly Rule 96, I request unanimous consent to re-refer the following bills to committee. SB 16, Black Spirit from the Housing and Community Development Committee to the Health Committee and the Judiciary Committee. SB 28 Umberg from the Public Safety Committee to the Health Committee and Judiciary Committee. SB 226 Cabaldon from the Higher Education Committee to the Arts, Entertainment, Sports and Tourism Committee and the Local Government Committee. SB 330 Padilla from the Utilities and Energy Committee to the Education Committee. SB 423 Gonzales from the local government committee to the Judiciary Committee. SB 526 Perez from the Natural Resources Committee to the Health Committee. SB 549 Allen from the local government committee to the Education Committee. SB 561 Blakespeare from the Environmental Safety and Toxic Materials Committee to the Judiciary Committee. SB 594 Padilla from the Environmental Safety and Toxic Materials Committee to the local government committee. SB 632, Errigin, from the Insurance Committee to the Higher Education Committee. SB 685, Cortese, from the Appropriations Committee to the Education Committee. SB 715, Allen, from the Housing and Community Development Committee to the Elections Committee. SB 892, Grove, from the Appropriations Committee to the Military and Veterans Affairs Committee. SB 942, Caballero, from the Health Committee to the Judiciary Committee. SB 969 Reyes from the Human Services Committee to the Privacy and Consumer Protection Committee. SB 1078 Laird from the Local Government Committee to the Judiciary Committee. SB 1156 Caballero from the Public Safety Committee to the Transportation Committee. SB 1177 Cortese from the Transportation Committee to the Labor and Employment Committee. SB 1224 Jones from the Insurance Committee to the Health Committee and the Military and Veterans Affairs Committee. SB 1322 Richardson from Housing and Community Development Committee to the Human Services Committee. SB 1388, Durazo, from the Local Government Committee to the Insurance Committee and the Housing and Community Development Committee. SB 1370, Stern, from the Utilities and Energy Committee to the Natural Resources Committee. SB 1394, Gonzalez, from the Natural Resources Committee to the Government Organization Committee. SB 1418, Cervantes, from the Elections Committee to the Public Safety Committee, then back to the Elections Committee. And SB 1423, Stern, from the Transportation Committee to the Local Government Committee.

I request unanimous consent to suspend Assembly Rule 56 to allow Utilities Energy Committee to notice the following bills. SB 887, Paidea, for their hearing on Wednesday, June 24th, pending re-referral from the Natural Resources Committee. and SB 1425 Cortese for the hearing on July 1st pending re-referral from the

Pursuant to Assembly Rule 96, I request unanimous consent to withdraw the following bills from the Budget Committee and suspend Assembly Rule 63 to allow Assemblymember Gabriel to take up the bills today without reference to file. SB 110 Laird, SB 122 Budget and Fiscal Review, and SB 125 Budget and Fiscal Review.

The Budget Bill, Assembly Bill 109, has been received from the Senate. I request you to announce the consent to allow Assemblymember Gabriel to take Assembly Bill 109 today without reference to file for the purpose of concurrence in Senate amendments.

Thank you, Mr. Speaker. I move that the Assembly suspend the rules to permit amendments to Assembly Bill 109 that was just warfed, currently pending concurrence in Senate amendments, and that the bill be returned to the third reading file upon adoption of such amendments to reduce health care premiums I'm submitting to the desk.

For suspending the rules?

Thank you Thank you

I'll amend the motion. I move that the Assembly suspend the rules to permit debate on amendments to reduce health care premiums and send those amendments back to the Senate by re-referring Assembly Bill 109 to the Senate with the amendments.

Mr. Speaker, so that we may have the Senate consider these amendments that we are sending to the desk, I move that we suspend the rules to return Assembly Bill 109 to the Senate That requires a second Is there a second by Assemblymember Johnson

The majority leader is asking for a no vote.

All members vote who desire to vote.

Members, Democratic Caucus in the Members' Lounge, please proceed to the Members' Lounge now.

Thank you very much, Mr. Speaker. Colleagues, I am pleased today to rise on AB 108. This is our 2026 Budget Act. And I just want to begin by thanking the Budget Committee for their extraordinary hard work. We have had 62 hearings to bring us to this moment, thoughtfully considered all of the options before us. I stand corrected on AB 109. My apologies. Thank you very much, Mr. Speaker. On AB 109, which is our 2026 Budget Act, I just want to speak for a moment to express some gratitude and then maybe talk a little bit about what is in our legislative budget agreement. And I want to thank our partners in the Senate for working with us to craft this agreement. And I also want to express my gratitude that this agreement really, in many ways, deeply reflects our assembly budget blueprint. And the essential work here was to, as we have talked about in prior years and we have talked about extensively this year, to meet this unprecedented moment that we're in. And to do that by balancing compassion and fiscal responsibility. And so I'm pleased that the Budget Committee, in crafting this bill, took a very real and eyes-wide open approach to the challenges that are facing our state. We are balancing our budget not only this year, but next year. We are reducing our structural deficit by more than half. And we are building up over $29 billion in total reserves. And also put forward important reforms to our rainy day fund as part of this budget practice. And so I'm grateful that the Assembly said we don't want to kick the can down the road. We want to meet these challenges head on and we want to center ourselves in fiscal responsibility. At the same time, we are also deeply centered in compassion and understanding that our state in many ways is under attack from a hostile federal administration, from folks who are intent on whipping away health care coverage, who are undoing our safety net programs, who are making life more expensive for working families in our most vulnerable communities. And so we have done the work to protect those programs and services that middle-class families, that working families that are most vulnerable rely upon. And I'm very, very grateful for the work of our budget subcommittee chairs to do that, to make important restorations in the healthcare space. And I want to thank our budget subcommittee, one chair for that, to protect healthcare coverage and hospitals and clinics, the work that we have done to protect human services, food banks and our safety net, the work that we have done to ensure record school funding and protect our world-class institutions of higher education, the work that we have done on wildfire prevention, on housing, to protect victims of crime. So many issues that we have heard are important to Californians up and down our state. And so with that, I want to thank everybody for their input, for the thoughtful conversations. Obviously, a lot of work ahead to do as we continue our conversations with our partners in the administration. but I think at this moment in time, we can be very proud of the product that we have produced in our legislative budget and so I respectfully request your aye vote on AB 109 Thank you Assemblymember Gabriel Assemblymember Tangipa you are recognized

Thank you, Assemblymember Tangepa. Assemblymember Davies, you had your microphone up. if you wish to speak.

Thank you, Assemblymember Davies. Assemblymember DeMaio, you are recognized.

Assemblymember DeMaio. Assemblymember Quirk Silva, you are recognized.

support as well. Thank you Assemblymember Quirk-Silva. Assemblymember Dixon you

Thank you. Thank you, Assemblymember Dixon. Assemblymember Callra, you are recognized.

Thank you, Assemblymember Kalra. Assemblymember Schultz, you are recognized.

So I'm going to take five minutes and walk through what this legislature has done and what we're willing to do. And so I certainly hope after tonight that no one would ever intentionally suggest that there hasn't been Proposition 36 funding because if that person were to do so, they'd be telling an intentional lie on the floor here, and I know none of us would want to do that. So let's start with the 2025 Budget Act. This legislature, and it was signed by Governor Newsom, appropriated $130 million in new general fund dollars for the implementation of Prop 36. And by the way, I don't mean this flippantly. I don't know that people understand this or don't, but you're never going to see a line item in the budget that says Proposition 36 because that's not how we fund public safety. We don't fund the budget based on crimes. There's no line item for murder investigations. We fund it holistically. So $130 million last year, that's what we did. How did that break down? $50 million for county behavioral health departments with an emphasis on behavioral health capacity. And don't worry, I'm going to get to this year next. There was $20 million for courts to address increased workload, including collaborative courts. We had $15 million for pretrial services to primarily support probation departments and sheriff's departments. We had $15 million for public defenders. That's part of Proposition 36 and how it all works, too. We had $30 million for CDCR for the increased prison population. And aside from the $130 million, I will also add that separately, in a whole different pot, we had million in Proposition 47 grants that were released in the fall of 2025 to local entities for uses including substance abuse disorder treatment and mental health services By the way a large amount of these funds remain unspent That's what we did last year. And if anyone even bothered to remember that, we certainly wouldn't be hearing on the floor any sort of false narrative about a failure to fund Proposition 36. But let's get to the heart of the matter. Now we're going to talk about this year's contemplative budget. I'll note that the Governor's May revise indicates that there will be nearly $90 million available to local entities for Proposition 47 grants. So that is, again, separate from the general fund. And then let's look at what we've contemplated in AB 109 and the accompanying trailer bills. We have $70 million ongoing augmentation for trial courts, $50 million one time for court workload, $50 million ongoing for pretrial services, $25 million for VOCA above the May Revise, which now brings a total to $50 million. We have $68 million above the May Revise for various victim support programs. That includes VOCA, human trafficking, trauma recovery centers, MMIP, and incarcerated sexual abuse victims. We have $20 million for rehabilitation programs that cut the CDCR recidivism rate by more than half, and we also have $1 million for crime data reporting. If you're trying to track all that, here's the Cliff Notes version. There's approximately $375 million in new funding in this budget for courts, Prop 47, substance abuse and mental health treatment, additional victim support, rehabilitation, and pretrial services. So we are funding Proposition 36. And by the way, all of this funding is more than the architects of Proposition 36 ever cared to figure out when they brought that before the voters. And now the last topic, and I guess I will finish in a little under five minutes, but But there was one other comment made by my colleague from Clovis about a prison closure, and I did want to address that too, because we are talking about public safety. What he omitted from his comment was this was actually a recommendation made by the nonpartisan independent legislative analyst office, which provides fiscal and policy analysis to this body. And the other thing that he forgot to mention is that of all the state departments that are contemplated by this budget, there is one budget, one department specifically that has nearly $1 billion in new funding, new spending. That's CDCR. And one of the small things that we're trying to do to offset all that new spending is, yes, follow the advice and the recommendation of LAO in recommending a new prison closure. So I think we can all be proud of this budget. It certainly prioritizes public safety. And to suggest otherwise is, quite frankly, a lie. Thank you. Thank you, Assemblymember Schultz. Assemblymember Carrillo, you are recognized.

Thank you, Assemblymember Carrillo. Assemblymember Gibson, you are recognized.

Thank you, Assemblymember Gibson. Assemblymember Ortega, you are recognized.

Thank you Assemblymember Ortega. Member Ramos, you are recognized.

Thank you, Assemblymember Ramos. Assemblymember Addis, you are recognized.

Thank you Assemblymember Addis. Assemblymember Muratsuchi you are recognized.

Thank you Assemblymember Muratsuchi Assemblymember Jackson you are recognized Dr Jackson

Thank you, Dr. Jackson. Assemblymember Alvarez, you are recognized.

Thank you, Mr. Speaker. Thank you, Assemblymember Alvarez. Assemblymember Ansem, you are recognized.

We did not pick this fight, but we are not gonna back down because we have to stand in the gap for Californians The president who wants to hand billion to insurrectionists and rioters who attack the nation and who can afford to focus on building a ballroom this is the same president who cut billions for the most vulnerable in our communities creating nationwide uncertainty and anxiety So in California, we are fighting to save our state from feeling the burden of these federal cuts. A budget is always about balancing what our constituents need with what we can provide in the state. And what we're here to do is to provide stability and certainty and moral clarity, those things that have been taken away from this entire nation. And California has taken unprecedented steps to expand and protect our constituents' health care. Those laws don't discriminate based on whether you're in a red area or whether you're in a blue area, north, south, coastal, or valley. Our colleagues across the aisle have the luxury of voting against funding Medi-Cal, CalFresh, and home supportive services because they know that we will pass a budget that they can go home and take credit for. We've all seen the numbers. Some districts, and yes, red and rule, have 49%, 60%, 70% of their population enrolled in Medi-Cal. So AB 109 is about everyone. Lives are on the line in California. So my colleagues can bicker and babble about what they find disagreeable while the majority party puts food on the constituents' table and takes care of the aging grandparents in those districts. And if you want to talk about fairness, please explain how that's fair. It's easy to go on our platforms and stoke divisiveness and talk about the bad Democrats, but the reality is, is because of Democrats, struggling families across of California, including rural and red, will not suffer, starve, and die unnecessarily. While Trump is kicking more than 2 million Californians off of their health care through the big, beautiful bill, we are expanding access with $300 million for lower health care premiums, $1 billion in clinics and hospitals, investments in keeping our counties in the position to provide eligibility, connecting Californians to the health and hospitals before they ever see a bill. While communities are being put at risk, we are making sure that local hospitals can stay open, and we are putting public hospitals and rural hospitals on a standard of sustainability with a $300 million investment. Because of Trump, nearly 800,000 workers, children, seniors, veterans are losing food assistance. So yes, we are feeding children, seniors, veterans with $108 million for food banks. So while Trump's actions are increasing gas prices and grocery costs across America and definitely in California, we are supporting families and investing $1.6 billion to build more affordable multifamily housing. We are also looking to make sure that 22,000 new child care opportunities are open so that parents can work and bring home a living for their children, while the same is being cut at the federal level. 30 seconds. I will end by saying that I appreciate the work of the Assembly Budget Chair Gabriel excuse me the Budget Chair and our speaker And it is so important that we protect Californians at a time that California is under attack And with that, I respectfully ask for your aye vote. Thank you, Assemblymember Ransom. Assemblymember Patterson, you are recognized. Great, thank you, Mr. Speaker. You know, I miss being a staff member at times. And I'd like to congratulate and thank the comms team from the Democratic caucus, because clearly they were up late drafting all these rosy talking points by many of my colleagues on the assembly floor today in alignment. And there's a pattern in all of them. Trump bad. All these good things that we're doing, you know. And look, nobody believes it. Nobody believes all of those things. But I will say they did a fabulous job, and they probably got the budget before we did. So we're at a little bit of a disadvantage as we went through the budget ourselves, but they were very prepared. So congratulations to them. You know, of course there's some good things in the budget. When revenues are up $60 billion from the current budget year and you still borrow $14 billion in reserves, there's going to be some good things in the budget you can't contain yourself with all that extra money you still got to spend more money than you're collecting but one of the things is i kind of i've almost spit out my soda when we say lower health care premiums every time that was said today because there isn't i'll just tell you right now californians your health care costs are not going down under this budget that is a certainty you're stealing money from health care in this budget, $2.3 billion stolen from healthcare to balance the general fund because that $60 billion and $14 billion wasn't enough money. So let's take another $2.3 billion out of healthcare to balance the general fund. And it's already been mentioned by my Democratic colleagues. Let's continue to short the kids billions of dollars in their school programs. And why is that? Are their test scores going up? No, they continue to fall behind peers throughout the nation. But let's go ahead and steal some more money from them anyways. So let's steal money from health care. Let's steal money from schools. We're on a good track record here. We're also the last state to not pay off our debt, unemployment debt. We won't even talk about the billions of dollars of fraud that happened right here in this state. But the debt that we took out, we're the last state to not pay it off. We're one of the only states to not use the stimulus funds, the billions of dollars we got from the federal government, by the way, some of that under the first Trump administration. We're one of the only states to not pay off that debt. So what are we going to do? We're going to charge employers. but let's take 600, what is it, 688, 668 million dollars to pay the interest. That's coming out of programs because we weren't forward-thinking to pay off that debt in the first place. And there's a new tax on software. That's just snuck in there. I hope people don't use apps on their phone. And we can't forget about research and development tax credits that we continue every year to fight about. I mean this is the state Everybody likes to talk of promise and opportunity but we one of the only states that doesn fund research and development By the way that money goes to jobs great jobs whether it biotech whether it other types of technology in this state, whether it's manufacturing, that money goes to a lot of jobs, and we're going to go ahead and not fund that so we can pay a lot of other special interests. So I just, you know, just my message to Californians is this. If you think this budget is going to do anything to improve the quality of your life, all of those nice things that we're talking, if you think the cost of living is going down, if you think your health care premiums are going down, if you think your utility rates are going down, if you think your gas taxes are going down, they're actually going up in a couple of days here. If you think any of those things are happening under that budget, don't be misled by my colleagues on the other side of the aisle, because they're all going up under this budget. I respectfully ask for a no vote. Thank you, Assemblymember Patterson. Assemblymember El-Hawari, you are recognized. Thank you, Mr. Speaker and members. I feel compelled to begin my comments by reminding everyone that HR1 was never just about providing more unnecessary tax breaks for the wealthy. It was also about kicking people off of Medi-Cal, taking food assistance away from families, and putting massive holes in our safety net. The cruelty of this should be unimaginable, but this is the reality that our communities are living every single day. And so, as the rich get richer, people in my district are fighting every day to stay housed, keep a job, and care for their loved ones. This is a constant and daily struggle. I invite any of you to come to my district to see proof in communities like South Central and Skid Row. But you don't have to. The consequences are visible there and all across our state, where there are pockets of poverty in every district and every single one of yours. Poverty is not a district issue. It's a California issue. We see the impact of what that looks like. Distressed hospitals, school districts laying off staff and going into receivership. public transit near collapse, homelessness and human despair on our streets and in our emergency rooms every single day. This is a collective issue. These challenges belong to all of us and we have a responsibility to do better. I would like to thank the Speaker, Budget Chair and the Subcommittee Chairs for fighting to protect our most vulnerable residents. In particular, I'm grateful that this budget rejects cuts to IHSS for seniors and people with disabilities. IHSS is not a luxury. It's the support that allows people to remain in their homes, maintain their independence, and live with dignity. And the need for these services will only continue to grow. By 2030, nearly 10 million Californians will be older adults, which is about one quarter of our state's population. Investing programs like IHSS is not only the right thing to do today, it is essential in preparing for California's future. I'm also encouraged by the continued commitment to closing another prison, saving $150 million in ongoing funds, which can be reinvested into programs like rehabilitation, drug treatment, and reentry services that will end up saving lives in taxpayer dollars. And I'd like to shout out our Health Committee Chair for advocating for what is known as the Fair Share Plan for big corporations, for employers that cost shift their employees to Medi-Cal, which is reflected in this budget agreement as a commitment going forward for the next governor and their administration. But it is so ironic that some of the most difficult conversations in this building involve asking large corporations to contribute their fair share. Budgets are more than financial documents. They are a reflection of our values. This budget reflects many of the values that we all hold dear. I recognize that challenging negotiations remain ahead and I understand the importance of preparing for the future. But a rainy day fund is supposed to be there for when it's raining. And in my opinion, the storm is here. It is a whole hurricane. And while I understand that it's being fiscally responsible to build up the rainy reserves and prepare for the economy to potentially get worse, or the most likely scenario, that the policies of the Trump administration will continue to inflict even more harm on our state and its residents and our economy and budget. I also don't want to lose sight of the fact that our residents have needs that must command our attention now. Because what good is a rainy day fund? if you have no roof over your head, no health insurance, or no job. Families need support now. Seniors need support now. People with disabilities need support now. The true measure of a budget is not what it saves, but who it serves. I would like to again thank our speaker, our budget chair, and their senate counterparts for keeping the residents of my assembly district and all Californians at the center of this agreement. Thank you. Thank you, Assemblymember El-Hawari. Assemblymember Celeste Rodriguez, you are recognized. Thank you, Mr. Speaker and members. First, I want to thank the speaker, our budget chair, our subcommittee chairs, and the incredible staff who were tasked with preparing a budget under extraordinary conditions. There are a lot of things in here that help us preserve the systems that maintain our social safety net. And I'd like to recognize all the good that my colleagues and I have fought for that made it. But there are issues, especially in our outlook for next year. I would like to start by saying that all of us are not questioning that California is facing difficult budget choices. While California has benefited from strong revenue growth in recent years, those revenues alone have not insulated us from growing fiscal pressures and reductions in federal support as we have discussed this evening. However, balancing our books on the backs of working immigrant families, even if those costs are being put off until next year, is not a long-term solution. If this discussion is truly about fiscal impacts, then we should also acknowledge the billions of dollars immigrants contribute to our economy and the revenues they generate for our state. undocumented Californians contribute billions each year in state and local taxes and play an essential role in our economy harvesting our food building our homes caring for our children and seniors and keeping entire industries moving forward when we talk about fiscal impacts we We should also be honest about the costs of inaction When people lose access to preventative care those costs do not disappear They show up later in emergency rooms county systems and struggling hospitals at a far greater expense to taxpayers. The question before us is not simply what we can cut today. It is whether we are making decisions that recognize economic reality, treat all taxpayers fairly, and avoid even greater costs tomorrow. So while I'm going to support AB 109, and I will continue working with my colleagues to ensure that our future budget reflects a simple reality, California's prosperity was not built by excluding immigrant communities, and it will not be sustained by turning our backs on them. With that, I respectfully ask for your continued engagement and your aye vote on AB 109. Thank you Assemblymember Rodriguez. Assemblymember Soria, you are recognized. Thank you, Mr. Speaker and members. I also rise in support of AB 109. This budget recognizes that California is facing a financial health care crisis because of HR's one disastrous policies, and it's taking steps to defend the medical infrastructure that Californians had depended on and that this legislative body has chosen to invest in. Make no mistake, if we do nothing, HR1's cuts will leave millions of Californians uninsured, particularly California low-income communities like the ones I represent. This federal administration continues to push California's hospitals to the brink of closure, especially the most vulnerable facilities in rural areas like the ones in my district. I know the damage of just losing one of these facilities and what it can cost to a community. When Madera Community Hospital closed in 2022, it not only created a health desert in Madera County, but it also overwhelmed hospitals in neighboring counties, creating a cascade of consequences. These consequences resulted in the loss of life. People died in my district. Women without any maternity ward within 30 miles of where they live were forced to give birth on their couches, in their homes, without any medical aid or nurses to help them because their community hospital shut down. It was a crisis. It remains a crisis. That is why this budget funds the Distress Hospital Loan Program, the program that saved Madera Community Hospital, and it brought it back to life. The program that saved Cahuilla Delta Hospital, which is down a little bit south where I was born, by giving it a lifeline. And it brought other close to dozen hospitals back from the brink in 2023. By investing $190 million into critically at-risk hospitals throughout the state, we'll be able to save those hospitals like Madeira. I support AB 109 not because it's perfect, but because it means we are stepping up for our communities, we are stepping up for our schools and our children. We are stepping up for those who rely on Medi-Cal and desperately need the safety net of a basic health care. A vote today is a vote to keep hospitals open A vote today is a vote to fund healthcare access for the most vulnerable including immigrants in my community those that pick the food and the vegetables that you all eat. A vote today is to keep funding for IHSS, funding that is critically important not only for my mother, but for thousands and millions of people in this state that rely on this program. A vote today is a vote for funding affordable housing and keeping families housed and not homeless. So today, members, while this may not be perfect, it is a budget that will keep California moving forward and puts families first. I respectfully ask for an aye vote. Thank you, Assemblymember Soria. Assemblymember Arambula, you're recognized on the measure. Thank you, Mr. Speaker and members. I want to begin by thanking Speaker Robert Rivas, Pro Tem Monique Limon for bringing our houses together and coming to this two-party agreement. I want to thank Chair Gabriel, Sub-1 Chair Addis, Sub-2 Chair Jackson, Sub-3 Chair Alvarez, Sub-4 Chair Bennett, Sub-5 Chair Cork Silva, Sub-6 Chair Ramos, and Sub-7 Chair Hart for their hard work on this. And let's not forget the staff who work so diligently to provide us with the most consequential policy bill that will vote on this floor this year. I'm looking at you, Jason Sisney and Christian Griffith and Nicole Vasquez, for all the hard work that you've done to put this bill together. And let us remember where we are here in the People's House. So let's thank the public for making us work so hard to deliver a budget that's reflective of our values as we are the people's house and we're here to do their work. And I'm going to begin by focusing on the areas that I've spent most of my time working on since coming here to Sacramento. And that's on health and human services. While I won't be going through every line item, I'm going to highlight some of the important ones that we were able to preserve. so I can tell you a little bit about them so you can continue to fight for them next year. Because this is my last budget. I've worked on 11 so far, and I'm proud of what we've been able to accomplish together. So I'm going to begin with the $1 billion that we invested to make sure that we rejected the elimination of our prospective payment system for our community clinics. The alternative was for us to have fee-for-service. That PPS system allows us to do valued-based care rather than fee-for-service where you're billing for every single procedure that you do. That saves us money as a whole where you're now focused on the diagnosis or the condition that we have. Let's talk about the $250 million to support our public hospitals or the $190 million for us to make sure that we are reinvesting into our distressed loan revolving program program to help our hospitals that are on the brink of collapse. Let's look at the $190 million that we're investing into preserving DentiCal for our UIS populations. Let's look at the $84.9 million that we're going to now preserve and not force the restricted caps that come with our PACE program, our programs for all-inclusive care for the elderly. These are programs that helps us to do medical and social to make sure that our elderly are able to live with dignity in their own homes rather than going to nursing homes Let look at the nearly million to support our county administration for workload to help those who are on Medi The 245 million to augment county CalFresh workload administration This is vital money where the rubber meets the road. The rejection of the medical asset test, the 300 million that goes into Covered California. And let's now focus on human services. The 100 million that we're investing into our immigrant legal system. In particular, I want to call out the $7.5 million that we invested for the legal fellowship program over the next three years that does capacity building. The $94 million is a backfill to Prop 64, which were proposed to cut 6,800 child care slots. And the additional $228 million that we're investing to create 22,700 child care slots. Through saving and creating, there are now over 29,000 child care slots that were not there the year before. The $112 million for us to pay our child care providers a COLA that they deserve of 2.01%. And of course, we have to recognize the rejection of the IHSS cuts. The $100 million that we invested into CalFood, above the merely $8 million that the governor put in, or said another way, an increase of 1,350% to CalFood to support our food banks across the state. The 16.5 million for our damper banks, and I'm looking at the Central California Food Bank and the leadership of Kim Dildine and Natalie Kaples who help us to deliver on that, as well as our 25 million into housing and disability advocacy program to protect those who are disabled, who are at risk of homelessness or experiencing homelessness, to make sure that they stay housed. The $50 million that we have going into our Home Safe Program to protect those on APS. The $25 million for those who are on Bring in Families Home to protect those with child welfare systems so that we can bring and reunite families rather than having them go into foster care. And finally, the item 0509101-001. It doesn't sound like much to all of you, but that's $100 million going to the Fresno Public Infrastructure Plan so we can finally meet the commitment that the governor had where we can rebuild our sewer and our water infrastructure. We are ground zero for high-speed rail. We are building tomorrow, today. We are having a chance to make sure that when we have that first high-speed rail station that we're going to have a great downtown. Great cities have great downtowns. Fresno's long on its way, and we're creating momentum today. Thank you for allowing me to share words on my final budget. Thank you, Mr. Speaker and members. Thank you, Dr. Rambula. And Assemblywoman, no. All right. Seeing no other members wishing to address this measure, once, twice. Mr. Gabriel, you may close on Navy 109. Thank you very much, Mr. Speaker. I don't know that there's much left to be said, so let me just say the most important thing was just thank you. First, thank you to all of the colleagues from across the state who have spoken, and I really want to appreciate everyone for their incredible, thoughtful engagement, for the work that you all have been part of in crafting this budget. I want to thank our staff who have worked so tirelessly all year to bring us to this moment. and I want to thank both our Democratic staff and our Republican staff. All of our staff in this building worked so hard, and I especially want to shout out the staff of the Assembly Budget Committee under the very able leadership of Christian Griffith. Applause And the incomparable and irreplaceable Jason Sisney from the Speaker's Office, who has just done an extraordinary job. And again, I want to thank our budget subcommittee chairs. You know, there's a tendency in politics for people to want to avoid tough choices, to want to fall back on partisan talking points. And our subcommittee chairs have done the opposite of that. They have rolled up their sleeves. They have done the hard work. They have dug in. They have made difficult choices. They have found areas to tighten the belt and also areas to hold the line. And I just want to thank them with immense gratitude. They have been the heart and soul of this budget process, and we would not be at this moment without their very capable leadership. So thank you to all of our budget subcommittee chairs. And finally, I wanted to thank our speaker, Speaker Rivas. I have had quite a few sleepless nights as I have contemplated the choices before us in crafting this budget. And when you take a step back and you think about these not as numbers on a spreadsheet, but as people, there's a lot of choices here with profound moral implications. And they're difficult choices. They're hard choices. And I want to thank our speaker because of his guidance and his leadership. We have crafted what I think our colleague from San Diego referred to as a people-centered budget. And that was exactly the direction that our speaker gave us. So every time we faced a fork in the road, it was always about our seniors, our students, our veterans, our working families, our middle-class taxpayers. That was the guiding light in crafting this budget. And that is the people that we are sent here to serve. That is who this budget serves. And so on behalf of the people of the state of California, respectfully request your aye vote on AB 109. Thank you, Assemblymember Gabriel. All debate having ceased, the clerk will open the roll. All members vote who desire to vote. All members vote who desire to vote. Clerk will close the roll and tally the votes. Ayes 59, noes 18. The measure passes. Senate amendments are concurred in. Without objection, immediate transmittal to the governor. Madam Majority Leader, you are recognized. I request unanimous consent to suspend Assembly Rule 56 to allow the Labor and Employment Committee to notice the following bills for their hearing on Wednesday, June 24th. SB 954, Blake Spear, pending re-referral from the Natural Resources Committee. And SB 1024, Menjavar, pending re-referral from the Public Employment and Retirement Committee. Without objections, that shall be the order. Okay, we are going to be moving on to business on the daily file. We begin with the second reading file, items 1 through 8. The clerk will read. Senate Bill 327 with amendments. Senate Bill 868 with amendments. Senate Bill 1233 with amendments. Senate Bill 742 with amendments, Senate Bill 929 with amendments, Senate Bill 943 with amendments, Senate Bill 1138 with amendments, and Senate Bill 925 with amendments. All bills will be deemed read and all amendments will be deemed adopted Just a moment, folks. Thank you. Thank you. okay we are back on to concurrence file number nine we're going to pass and retain reconsideration file items 10 through 12 all items shall be continued the assembly third reading file is file items 13 through 19 we shall pass and retain that brings us to the senate third reading file, file items 20 through 36. We'll pass through in tandem file items 20, 21, 22. File item 23 is SCR, Senate Concurrent Resolution 89 by Senator Smallwood Cuevas, presented by Assemblymember McKinner. Clerk will read. Senate Concurrent Resolution 89 by Senator Smallwood Cuevas and others relative to diversity, equity, and inclusion. Assemblymember Mckenner, you are recognized. Mr. Speaker, I rise in support of SCR 89. I am also one of only 24 black women to ever serve in the California State Legislature. That's right. In the 175 years of California statehood, only 24 black women have ever been elected to serve in this building behind me. I was elected to California State Assembly not because I am a black woman, but my service to my constituents, to my district, and to the people of the state of California have been and will continue to be influenced by my unique experience. And that's a good thing. Growing up black in LA County in the 1960s, raising black boys in a world that has not always valued black youth, navigating my career path in the public and private sector as a black woman. All of my unique life experiences bring value to making public policy. And that is what is at the center of DEI in the state and in the nation. the unique life experiences and the uniqueness of who we are as individuals. The federal government is actively trying to silence the voices that are making decisions. The federal government is actively trying to silence the voices of people that look like me But I will not be silenced my colleagues Our state and our nation are stronger and more resilient when voices of all people are heard and not just a few Our democracy is stronger when we value the voices of people that look different, love different, and have different life experiences. Our democracy should demand more voices be heard when decisions are being made in state capitals, in the U.S. Capitol, and in the White House and in boardrooms across America. And that is in the center of why I support SCR 89. We as Californians are not afraid of each other, my friends. We as Californians, we value each other. We as Californians are stronger when we listen to each other and build a state and a nation that realizes the true potential of all people. I thank Senator Smallwood Cuevas on valuing the voices of all Californians and for authoring this important resolution. Thank you. Thank you, Assemblymember McKenna. Assemblymember Zbor, you are recognized. Thank you, Mr. Speaker. Members, I rise today on behalf of the California Legislative Jewish Caucus. in strong support of SCR 89, which affirms our state's unwavering commitment to diversity, equity, and inclusion. For the Jewish community, the principles of DEI are not merely modern policy goals. They are deeply rooted in the Jewish community's history and values. Jewish tradition teaches us a sacred responsibility to pursue justice and to recognize the inherent dignity of every human being. We know all too well what happens when societies abandon these ideals and the Jewish community refuses to be bystanders in this moment of rising hate. Diversity is the foundation upon which California was built, and it would not be the place it is today without the remarkable contributions from communities of color, indigenous peoples, women, LGBTQ plus individuals, and people with disabilities, among others. The Jewish community will continue to stand in unwavering solidarity with every community fighting to protect civil rights, equal opportunity, and human dignity. SCR 89 recognizes that diversity is California's greatest strength. When we remove barriers and expand pathways to success, we ensure that our state remains a beacon of hope and opportunity for all. At a time when communities across our nation are experiencing increased fear, polarization, and extremism, this resolution sends a clear message. The American dream and the California dream belongs to everyone. In that spirit, and on behalf of the Jewish Caucus, I respectfully request an aye vote on SCR 89. Thank you, Assemblymember Spohr. Assemblymember Ward, you are recognized. Thank you, Mr. Speaker. I rise today as chair of the California Legislative LGBTQ Caucus in support of SCR 89, because today we have to say clearly and unequivocally, California must reaffirm its commitment to diversity, equity, and inclusion, not just in words, but in action. SCR 89 takes that step by affirming that diversity, equity, and inclusion are not optional add-ons, but essential foundations for achieving the American dream and ensuring that all people can thrive. These principles are deeply rooted in our nation's history, from the expansion of voting rights to landmark civil rights protections to laws that open doors for people with disabilities, women veterans and generations of workers DEI reflects our ongoing effort to move closer to the promise of equal opportunity for all But let be clear DEI is under attack through deliberate efforts to narrow who belongs who is valued, and who gets access to opportunity. And we see it when loan forgiveness and workforce development programs that once helped LGBTQ students, veterans, and public servants are eliminated under the guise of being, quote, too inclusive. We see it when LGBTQ resource centers are shut down and resources like the LGBTQ dedicated suicide prevention hotlines are eliminated, cutting off safe spaces and academic support. And in spite of overwhelming evidence that individuals face higher rates of depression, anxiety and suicide risk. And we see it when DEI bans erase our history from classrooms, silence conversations about identity, and tell young people that who they are is something to be hidden or erased. And we see it in the workplace where attacks on DEI weaken anti-discrimination protectants, eliminate inclusive hiring practices, and make it harder for workers, especially pregnant individuals, people of color, transgender individuals, and those with disabilities to access good jobs, fair pay, and safe working conditions. Now, these are not abstract debates. These are real policies with real consequences for real Californians. There is a collective actively attempting to distort DEI and paint it as divisive, unnecessary, or even harmful. And let's be clear, the opposite is true. Here in California, we have always stood and understood that our diversity is our greatest asset. It is what fuels our economy, it enriches our culture, and it makes the state a place where people come not just to survive, but to thrive. Efforts to roll back DEI are just not about fairness or merit. They are about exclusion, erasing history, limiting opportunity, and deciding who gets left behind. So we must be clear and unapologetic. Affirming DEI is not partisan. It is moral. It is practical. And it is necessary. The LGBTQ caucus is proud to stand alongside Senator Smallwood Cuevas and our colleague from Inglewood in support of SCR 89, reaffirming that California stands for diversity, equity, and inclusion. I respectfully ask for your aye vote on SCR 89. Thank you Assemblymember Ward. Assemblymember Bonta, you are recognized. Thank you Mr. Speaker and members. I rise today in strong support of SCR 89 on behalf of the California Legislative Black Caucus, as a member of the Women's Caucus, and as a member of the Latino Caucus, and the beautiful people in my district of Oakland, Alameda, and Emeryville, a community nearly four times more diverse than California is as a whole, and a community whose name is synonymous with diverse resistance, diverse excellence in this country. I stand here today because the American dream belongs to all of us or belongs to none of us. Every time I come to this floor, I think about the diversity of Oakland and what it gives to this country, the Black Panther Party, free breakfast programs for children that became a federal model, a labor movement that built the American middle class. Diversity is strength. Research shows that closing racial gaps in wages, education, housing, and lending could have added $16 trillion in the U.S. economy over the past two decades. Companies in the top tier of workforce diversity are significantly more likely to outperform their competitors. DEI is investment. It is how we build an economy where everyone can contribute. Yet right now, the federal government is issuing executive orders designed to dismantle diversity programs, pressure universities, and tell employers that correcting discrimination is itself discriminatory. Let me be direct. That argument is not new, and it has always been wrong. We cannot build a race-blind future on a foundation that was never race-blind. The 13th Amendment, the 14th Amendment, and the 15th Amendment, those were DEI. The Civil Rights Act, that was DEI. Title I education funding, that was DEI. This country has always known that the promise of equal opportunity requires active, deliberate work. SCR 89 says California will not abandon that work. We are reaffirming that diversity, equity, and inclusion are not radical ideas. They are foundational American values. when those struggles written into our law become a part of our essential future. Our communities did not wait for equity to be handed down. We organized, we marched, and we demanded it. We will continue to do that work. California will not be silent. With SCR 89, we hold the line. Thank you, and I respectfully request your aye vote. Thank you, Assemblymember Bonta. Assemblymember Fong, you are recognized. Good evening, Mr. Speaker and members. I rise in strong support of SCR89 on behalf of the Asian American and Pacific Honorable Legislative Caucus. The American dream and California dream for many families is defined by access to opportunity. Yet for many communities, those opportunities have not always been equitable. DEI efforts recognize the diversity within our community and help first-generation families, individuals, students who face language, economic, and systemic barriers. DEI initiatives create culturally responsive campuses that better serve students and strengthen learning environments for everyone. SCR 89 reaffirms California's commandment to uplifting diverse communities and protecting inclusive environments, even in the face of federal rollbacks. When we protect DEI measures, we protect our opportunity for people to fulfill their dreams and aspirations. On behalf of the API Legislative Caucus, I strictly ask for an aye vote on SCR 89. Thank you. Thank you, Assemblymember Fong. Assemblymember Wilson, you are recognized. Thank you, Mr. Speaker. Good evening, colleagues. Today I rise in support of SCR 89. To the privileged, equality feels like oppression. We all recognize privilege is desirable. It feels good to have access to something that others do not have. And we all have privilege in some form or another in our lives. However, privilege can be antithetical to the American dream. The American dream is rooted in one's ability to achieve their own version of success no matter where they are born, what class they are born into, or their race, ethnicity, or culture, or even one's disability or lack thereof. I often say that DEI is like a math problem. Diversity, equity, and inclusion should equal belonging. If it doesn't, then you're doing it wrong. If I'm lifting one up to exclude another, then it's missing its mark. However, if I'm lifting one up to bring parity to another, then I've created an atmosphere of belonging and an atmosphere of success. So I rise to support SCR 89 and strongly encourage my colleagues to reaffirm its commitment to diversity equity inclusion in a way that allows all Californians to feel a sense of belonging in order to achieve the American dream Thank you Thank you Assemblymember Wilson Assemblymember DeMaio you are recognized Thank you, Mr. Speaker. A good number of members of this body will not be voting for this resolution. And of course, the setup is if you don't vote for DEI, diversity, equity, inclusion, you must be a racist. Those of us that don't support DEI do so because we do not believe that people should be treated any differently on the basis of immutable characteristics such as their skin color or their religion or their gender or who they love. We should not be looking at those factors and saying we're going to treat people differently and that's exactly what DEI does. That's the definition of DEI. We just have a disagreement on how to achieve better outcomes for all. You have just celebrated California as a leader in DEI. You say how wonderful DEI is. It's going to lift these communities up. But let's take a look at California. You've had, what, a couple decades of DEI out here? And the policies have only been more DEI with each passing year. But let me tell you, black and brown Californians are getting hurt the most by your policies. So much for DEI. Some might even argue that you're sponsoring a resolution like this because it's all about talk, not action. Let's review the bidding. Even CNN's Fareed Zakaria this weekend slammed California basically as a failed state. It went through a litany of stats. When you lose CNN on quality of life and affordability, who else do you have? Sacramento Bee, maybe? But take a look at some of the issues. Cost of living in California for the typical California family is almost $30,000 more for a family of four versus the national average. 30 grand to live in California versus what a family of four would have to pay if they lived anywhere else. That is indefensible. But when you take a look at who's in poverty, it's disproportionately black and brown. So much for DEI lifting them out in California of poverty. How about our schools? 50% of California students can't read or write at the proficiency standards. Two-thirds are not able to do math at proficiency standards. But when you take a look at black and brown kids, 80% in all three of those categories. But our schools are perhaps the most DEI schools that you can get in this country. This is not a policy that works. There's something else that's failing, not just black and brown Californians, but all Californians. But instead of focusing on those problems, you've got a resolution. And anyone who opposes you and points out the obvious must be a racist. They don't care about black and brown people. It's divisive, not constructive. If we wanted to actually help all Californians irrespective of their skin color or who they love or their gender we be making things more affordable we be creating more jobs we be making communities more safe we'd be making our schools better. But every passing year, all of those issues get worse. And the budget we're about to pass lets those communities down once again. So I will be registering a no vote. You can call it what you'd like. but I will stand on the facts. Talk is cheap. Action is everything. Let's take real action for all communities. Thank you, Assemblymember DeMaio. Assemblymember McKenna, seeing and hearing no further debate, do you wish to close? Yes, Mr. Speaker. I am standing to support SCR 89. We will see who the people are who are not voting for this bill. And I thank my colleagues for rising in support of the resolution. I don't think any of my colleagues called anybody a racist, but, you know, if you're feeling guilty, I've never, me being a black woman, I never wanted to be treated differently. I never thought people should be treated differently. And so I rise because I believe that there's room for everybody to have jobs. There's room for everybody to be successful. There's room for all of us to be educated. And so DEI is very important to this state. And with that, I ask for your support on SCR 89. Thank you. Assemblymember, do you wish for the first roll to be open for co-authors? Yes, please. All debate having ceased, the clerk will open the roll. Members, this is for co-authors. All members vote who desire to vote. This is for co-authors. All members vote who desire to vote. Clerk will close the roll and tally the votes. Ayes 50, noes 0. Excuse me, there are 50, it's late, I'm sorry. There are 50 co-authors added. Without objection, we'll take a voice vote on the resolution. All those in favor, say aye. Aye. All those opposed, no. The ayes have it. The resolution is adopted. We're going to pass and retain on file items 24 through 36. Okay, continuing on. Mr. Gabriel, SB 110. Okay without reference to file Senate Bill 110 presented by Assemblymember Gabriel the clerk will read Senate Bill 110 by Senator Laird an act relating to the state budget and making an appropriation therefore to take effect immediately budget bill Assemblymember Gabriel you are recognized Thank you very much, Mr. Speaker. I rise to present SB 110, a bill with technical changes to our 2026 Budget Act. This change will allow us to pass AB 122 and AB 125 tonight and allow those bills to take effect immediately. For that reason, ask for your aye vote on SB 110. Thank you, Assemblymember Gabriel. All debate having ceased, clerk will open the roll. All members vote who desire to vote. All members vote who desire to vote. All members vote who desire to vote. Clerk will close the roll and tally the votes. Ayes 50, noes 19. The measure Passes. Okay. without reference to file SB 122 presented by Assemblymember Gabriel the clerk will read excuse me with amendments Senate bill 122 with amendments by assembly member talking pop just a moment mr. Tongva I appreciate your patience, sir. Mr. Tangipa, you are recognized. Thank you, Mr. Speaker. I motion. Oh, perfect. You are recognized, sir. Thank you, Mr. Speaker. You may speak to your amendments. You have five minutes. Thank you. So very quickly, in this, these amendments are very simple. In a time right now where we have a record budget with record revenue, this amendment provides relief to those who need it most. It suspends the gas tax, the most regressive gas tax on everyday Californians. So as we're talking about all the issues that Californians are facing today, we can provide those who need it most by supporting this amendment. For those reasons, I respectfully ask for your aye vote. Thank you, Assemblymember Tangipa. Madam Majority Leader, you are recognized. I move to lay the amendments on the table. Thank you, Madam Majority Leader. This is seconded by Assemblymember Ortega. Members, this motion is not debatable. It takes the majority of those present and voting. This is a procedural vote. Clerk will open the roll. All members vote who desire to vote. The majority leader is asking for an aye vote. Mr. Tangipa is asking for a no vote. All members vote who desire to vote. All members vote who desire to vote. The clerk will close the roll, tally the votes. Ayes 49, noes 20. The motion carries. On to the bill in. Chief, SB 122, without reference to file, the clerk will read. Senate Bill 122 by the Senate Committee on Budget and Fiscal Review, an act related to taxation and making an appropriation, therefore, to take effect immediately, bill related to the budget. Assemblymember Gabriel, you are recognized. Thank you very much, Mr. Speaker. I rise to present SB 122, our revenue trailer bill. The revenue solutions, including this bill, will provide funding for this year and generate funding for future years to address the state's out-year structural deficit. This trailer bill includes a number of components, including extending the sales and use tax on the sale of electronically delivered pre-written software to bring California in line with numerous other states, adopts an alternative tax credit to the May revision proposal for certain business tax credits, lowers taxes on small businesses, and enacts a 100% tax on President Trump's so-called anti-weaponization fund payouts to make sure that that money which belongs to these taxpayers stays with the tax bill. taxpayers. For that reason, I ask for a vote on SB 122. Thank you, Assemblymember Gabriel. Assemblymember Tangipa, you are recognized. Thank you, Mr. Speaker. And I rise in opposition today to this bill. Again, let us reflect that the state of California has record revenue and has a record budget. And in a time where it sounds like we have so many problems and the sky is falling, we have more money available to the state of California than ever before in history. Ten years ago, the budget was around $170 billion, and today it is over $350 billion. And to spare us the next hour of speeches, I know we're going to hear that everything is President Trump's fault and the federal administration and everything else, but we must look at what is going on. This bill adds more taxes, more taxes on everyday businesses. This is a warning to all of the businesses. If you use QuickBooks in your business, your taxes are going up. If you use Adobe in your business, your taxes are going up. If you use Photoshop in your business, your taxes are going up. If you use any digital software service, your taxes are going up. because this body needs to take more, even though we have record revenue. And we're going to hear again, this is all to combat the federal administration. The budget even starts, very first sentence actually goes, because of Donald Trump and congressional Republicans. Because of Donald Trump and congressional Republicans, we have a record budget? We have record revenue? I mean, to any normal person, that sounds pretty crazy. The state of California has never had more money available to it, and yet we have more record taxes. Answer that hypocrisy to me. So that's what we need to look at, that a vote for this bill is to tell every single business in the state of California, your taxes are going up, there is no relief for you, and the costs are going to be passed down on to the consumers. So if you want to support more taxes on business, feel free to vote aye on this. But if you want to save money for the everyday Californians asking for relief, vote no on this bill. Thank you. Thank you, Assemblymember Tangipa. Assemblymember Dixon, you are recognized. Good evening Good evening It almost good morning Good evening Mr Speaker and members I rise today in strong opposition to AB 122 which among other things will raise taxes as we've just heard, by $9 billion through July 2028. This bill maintains a strong tradition here in California. Legislature, rather than curb spending, just continue to raise taxes, thinking nobody's going to notice. Time and again, this body has chosen to raise taxes to continue to fund failing programs such as California high-speed rail rather than cutting spending and focusing on improving the lives of everyday Californians, as is the will of all of us here. One of the most disturbing aspects of this proposal is a new to the nation, I believe, I could stand corrected, an expansion of our sales tax to services and digital products. This legislation upends decades upon decades, a century of precedent that the California sales and use tax only applies to the sale of tangible personal property, and instead now will expand that definition to cover the sale of digital pre-written software. You may ask yourself what would fall under the definition of digital pre-written software. This would represent an imposition of a sales tax on the following products, cybersecurity software, artificial intelligence tools, e-commerce payment software, email and word processing software, finance and bookkeeping software, and many other everyday digital tools. These are tools and products used by every single business in California, from local small businesses to the largest corporations in our state. This will increase costs for businesses across the board, and make no mistake, these costs will be passed right on to consumers and the cost of their products that they buy. This legislation also caps multiple tax credits aimed at encouraging the hiring of new employees. Rather than encouraging business, we've chosen to further hamstring ourselves by reducing incentive programs that are explicitly aimed at getting people jobs. And what better time to reduce the hiring tax credit than when California is leading the nation in unemployment? Instead of driving businesses away from hiring new employees, we should be obviously embolstering our workforce to keep the California economy growing. We often tout that California is on the leading edge of development and technology. However, so why would we also be proposing a permanent cap on research and development tax credit? It makes no sense. We're putting a big sign out, do not come into California to do business. It will cost you an arm and a leg and put you out of business like many businesses are leaving California. And rather than incentivizing the very research that provides jobs, money, and genuine benefits for both Californians and the nation, we are taking and sending an adversarial message to business. Go elsewhere. Build your company elsewhere. In fact, a broad bipartisan of 50 Assembly members from this body recently signed a letter urging a rejection of this tax proposal in favor of, quote, policies that encourage investment, expansion, and job growth. At a time when affordability, of course, is at the forefront of every one of our minds and our citizens' minds, the policies advanced by this legislation is the exact opposite of what we need. Our focus should be on retaining some of the largest employers in California many of whom represent the largest investments in research and development in our entire state Those investments are what fuel our state economy which despite the best efforts of this legislative body, is still one of the largest in the world. And you all may have noticed in SpaceX stock IPO yesterday, you know that Mr. Musk, Elon Musk, used to have his business in California. He moved to Texas, moved all his employees, Tesla and SpaceX and other business divisions of his company. And I think it's over 400 employees when they went public yesterday have now become instant millionaires. 30 seconds. Employees who are in not just management but are in janitorial roles and hourly positions. They are now millionaires, and millionaires create more millionaires and help the economy grow. So we are really doing ourselves a disservice to every worker in this state and company in this state by raising their taxes in a way you think is invisible, but it is not. It will harm this state. Thank you very much. I urge a no vote on SB122. Thank you. Thank you, Assemblymember Dixon. Assemblymember Petrie-Norris, you are recognized. Thank you, Mr. Speaker. Members, I too rise with some concerns regarding some of the tax increase proposals that have been included in SB 122. I think that as we grapple with resolving a structural deficit this year and as we continue to face challenging times ahead, I think it's really important that we differentiate between steps that are going to resolve short-term budget challenges and sound long-term economic policy. California's innovation economy is the envy of the world. Our innovation economy is the reason that California is the fourth largest economy in the world. And our innovation economy is the reason that we have enjoyed recent windfalls and revenue increases this year. So while I will be supporting this bill this evening, I'm very hopeful that as conversations continue throughout the next several weeks and as we continue to have these conversations and grapple with these challenges over the next several years, that we make sure that we don't, as I said in our budget hearing earlier today, that we are not killing the golden goose that's laying the golden eggs for California's economy. Recognize that we are navigating through some challenging budget circumstances that have been compounded by actions at the federal level, but want to ensure that we are setting California up for success, not just this year, but in the decades and centuries to come. So thank you. Thank you, Assemblymember Petrie-Norris. Dr. Baines, you are recognized. Thank you, colleagues. I also rise with similar concerns. Colleagues, look, we stand here tonight in the middle of a crushing affordability crisis, and the solution put before us here, let's just call it what it is. This is a regressive app tax. For the working people of California and the small business owners trying to keep their lights on software and apps are not a luxury item Our phones and our apps have become the basic necessities we need to make a living. They are the very tools that we use to connect with clients, patients, customers, manage sparse budgets and to do our daily work. When Sacramento gets low on money, look, we must stop looking at working class Californians and see oranges that we can just squeeze a little bit more. When we tax the digital tools that working people rely on to survive, we tell them that we think they need to make another sacrifice. That kind of logic belongs in the same garbage along with Donald Trump's big, beautiful crap which created this mess. We are California. We are supposed to be the vanguard of protecting the working class, not the architects of their impoverishment. I urge a no vote to protect our working class, and I urge a no vote on this app tax. Thank you, Dr. Baines. Assemblymember Lee, you are recognized. Thank you, Mr. Speaker. I rise in strong support of SB 122 for three simple reasons. Number one, it proposes a novel, perhaps first to the nation, 100% tax on the anti-weaponization fund that came from President Trump litigating his own IRS to prevent them from taxing his ill-gotten gains. Members, there's not any more corrupt president in sitting U.S. history than the one who hosted a UFC fight on the lawn with his mega donors. And in fact, in the remediation to try to make the IRS fund and lawsuit seem more palatable, he then offered over a billion dollars slush fund to January 6th insurrectionists. Now, if that fund is to actually happen, even though it has tons of backlash in D.C. for both parties, California is going to tax 100% because no money should be going to insurrectionists, to traitors. And I can't believe I have to say that, but no money should be going to traitors. Secondly, something very important to put in this bill is it slashes the first-year business taxes that first year that new entrepreneurs pay from $800 to $400, spurring more innovation. Remember, what we need in California, and as I represent Silicon Valley as well, is we need more startups. We need more people who work out of their garage, who think an entrepreneur, who pioneer new small micro-businesses. And at the same time, we need to rein in the oligarchy of giant corporations. For the third thing, this measure caps multinational, multibillion-dollar corporations, their utilization of tax breaks. Now, members, I know most of our constituents cannot use tax breaks to zero out their tax liability nor get refunds. But some of the largest corporations in the world that are now propping up the world's first trillionaire get these tax breaks. And yes, I'm happy to report Tesla's flagship factory in my district has not moved. All those workers, all those assets, all those sales still happen in my district. And so it is very important to remember that while these corporations grow hideously, hideously wealthy and their CEOs become trillionaires that are light-earned. ahead of wealth and rest of society, they are still benefiting, their corporations still benefit from generous tax credits. It is time we finally re-examine those tax credits. Are they actually delivering for an innovative economy that is prosperous for everyone, or are they just lining the pockets of shareholders and making more trillionaires while we have more people who sleep on the streets? That is why this measure is so important to cap and think about how we're utilizing our tax credits to spur the economy. It should actually be used for measurable success, more shared prosperity for everyone, and that's why this bill, SB 122, is so needed, not just in the entire architecture of a very carefully crafted budget, but also to finally bring tax justice for all Californians and rein in the excess of greed of corporations. Thank you. Thank you, Assemblymember Lee. Seeing and hearing no further debate, Assemblymember Gabriel, do you wish to close? Wish to thank my colleagues for the spirited debate and respectfully request your aye vote on SB 122 Thank you assemblymember Gabriel debate having ceased clerk will open the roll all members vote who desire to vote All members vote who desire to vote All members vote who desire to vote Clerk will close the roll and tally the vote. Ayes 54, noes 20. The measure passes. Okay. And without reference to file SB 125, there are pending amendments by Assemblymember DeMaio. The clerk will read. Senate Bill 125 with amendments by Assemblymember DeMaio. Assemblymember DeMaio, you are recognized on your amendments. Thank you, Mr. Speaker. We've been round and round on a number of concerns that we've had with this budget. But maybe we can start with one simple problem that should be an easy choice for this body. And that is contained in this amendment. we have an opportunity to give relief to working families on their health care premiums. This budget is going to enact a $425 health insurance tax for the typical family of four. That may not seem like a lot, but to a struggling family, it's yet another burden. It breaks their back, nickeling and diming them. But there's an even bigger impact that the budget can address on health care costs, and that is the costs on Covered California of health care premiums without federal subsidies. Now, in this body, a number of you have gone on record saying it's horrible that those subsidies are being eliminated. And so, given the fact that you're raising a tax, why not give that money back, particularly to the families that are going to be the hardest hurt? We can take $2.5 billion in our budget and create a state premium subsidy. And in the coming year we can bend the cost curve so that we don have to perhaps provide as big of a subsidy next year because we can actually reduce the cost of health care But right now, these families need our help. They're seeing a tax applied to premiums. All the more reason for us to provide a premium subsidy. $2.5 billion is the cost. In fact, one of the members of the opposing party gave us that financial figure just a few months ago, decrying the removal of the federal subsidies. We have the money, the ability in this budget to provide immediate relief to working families, but it will take a cut. So what I'm proposing with my amendment is we give $2.5 billion in immediate relief to working families who are citizens, and we direct the governor to reduce by $2.5 billion the taxpayer-funded giveaways to illegal immigrants for free health care. Now, I know some of you, that's a poison pill. That is going to be a tough one to swallow. So you're not going to want to have a cut to non-citizens to help out struggling citizens. But I ask you to do this. This amendment would not eliminate all health care coverage for illegal immigrants. It simply says take a $2.5 billion reduction, which is less than 20% of the subsidy you're giving to illegal immigrants. Less than 20% of the subsidy provide that to citizens, working families who are struggling. What say ye? Can we give citizens a little bit of help? Because this budget right now raises a premium tax of $425 for a working family of four so that you can continue to give illegal immigrants coverage. And I don't like the laughter because, you know what, there are working families that are going to get sucker punched by these premiums. And then you're going to blame it on Trump. But we'll make sure that they all know that there was an amendment you got to vote on. We're going to pass it, or will you do as I expect? Kill it. And with that, dash the hopes of these working families for relief. I ask for an aye vote on my amendment. Thank you, Assemblymember DeMaio. Madam Majority Leader, you are recognized.

seconded by assembly member pappin okay members this motion is not debatable i'm gonna make sure you're awake over there takes the majority of those president voting members this is a procedural vote clerk will open the roll majority leader is asking for an i vote mr de mayo is asking for a no vote all members vote who desire to vote all members vote who desire to vote. It's a procedural vote. All members vote who desire to vote. Clerk will close the roll, tally the votes. Ayes 52, noes 19. The motion carries. Now on to the bill in chief. Clerk will read. Senate Bill 125. by the Senate Committee on Budget and Fiscal Review and Accurately to Medi-Cal and making an appropriation, therefore, to take effect immediately related to the budget. Assemblymember Gabriel, you may open.

Thank you, Assemblymember Gabriel. Assemblymember Tangipa, you are recognized.

Assemblymember Tangipa. Dr. Baines, you are recognized.

Thank you, Dr. Baines. Seeing and hearing no further debate, Assemblymember Gabriel,

Thank you, Assemblymember Gabriel. All debate having ceased, clerk will open the roll. All members vote who desire to vote. All members vote who desire to vote. Say 54 vote bill. Thank you. Clerk will close the roll, tally the votes. Ayes, 56. Noes, 20. The measure passes. Okay, we're moving on to our consent calendar. We're moving on to a vote on the consent calendar, file items 39 through 42. Does any member wish to remove an item from the consent calendar? Seeing and hearing none, the clerk will read the second day consent calendar. Senate Bill 1428 by the Senate Committee on Natural Resources and Water, an act relating to public resources. Clerk will open the roll on the consent calendar. All members vote who desire to vote. All members vote who desire to vote. All members vote who desire to vote. Clerk will close the roll, tally the votes, I-74, no-0. Consent calendar is adopted. Clerk will read the remaining items on the consent calendar. Senate Bill 1189. I-74, no-0. Senate Bill 1433. Ayes 74, no zero. And Senate Bill 1143. Ayes 74, no zero. Moving on to announcements. Session schedule is as follows. Tuesday, June 16th, check-in session. Wednesday, June 17th, check-in session. Thursday June 18th for session at 9 a All other items will be passed and retained All motions shall be continued seeing and hearing no further to business I ready to entertain a motion to adjourn Majority Leader Aguirre Curry moves Mr. Ta seconds that this house stands adjourned till Thursday June 18th at 9 a.m. Quorum call is lifted we are adjourned Thank you. Thank you. Thank you Thank you Thank you. Thank you. Thank you Thank you. Thank you.