Transcript Highlights:

• This bill has nothing to do with predatory lending whatsoever, and I wanted to be clear and take a firm
• </c><00:03:47.760><c> How</c> lending doesn't belong in Minnesota.
• How lending doesn't belong in Minnesota.
• lending and mortgage applications,<00:04:00.000><c> I</c><00:04:00.239><c> wanted</c><00:04:00.480><
• whatsoever. and I wanted to be lending whatsoever. and I wanted to be clear<00:04:18.160><c> and</c>

Summary: The discussion focused on two Minnesota Senate bills authored by the senator: Senate File 4168 and Senate File 4652. SF 4168 would give buyers of investment properties more flexibility in financing, including the ability to roll certain closing costs and lender fees into the loan, with the senator emphasizing that the measure is limited to investment properties and is not intended for primary residences. He stressed that the bill is meant to provide options, not force borrowers into any particular structure, and repeatedly distinguished it from predatory lending, saying it has nothing to do with fraudulent or abusive mortgage practices. SF 4652 addresses fraud prevention at banks by allowing account holders to designate an additional contact person who can be notified if a bank suspects suspicious activity and cannot reach the account owner. The senator described it as a common-sense, no-cost, anti-fraud measure aimed at early detection and protecting both banks and customers. He said fraud is a widespread problem and that the bill would help institutions act quickly when something appears wrong. The senator said both bills moved quickly because he wanted to get them heard and passed this session, and he noted that he was the sole author on each. He said the bills passed unanimously in both the Senate and the House. In broader comments, he credited bipartisan relationships and committee cooperation for helping the bills advance, and said the session showed House-Senate collaboration on practical legislation, with more political items being pushed toward compromise and further discussion.

Transcript Highlights:

• I'm the Executive Director of the Responsible Business Lending Coalition.
• My name is Andrew Kushner from the Center for Responsible Lending.
• Lewis Kaditz-Peck, Responsible Business Lending Coalition, in strong support.
• Andrew Kushner, Center for Responsible Lending. I'm here today to urge you to support SB 825.
• Louis Kittsbeck, Responsible Business Lending Coalition, also in strong support. Thank you.

Committee: House Banking and Finance

Transcript Highlights:

• , micro-lending over 1.1 million while leveraging over $6 million in private funds, grants, and owner
• </c><00:05:35.639><c> micr</c><00:05:36.080><c> lending</c><00:05:36.479><c> over</c><00:05:36.759><c
• > 1.1</c> and direct lending micr lending over 1.1 and direct lending micr lending over 1.1 million<00
• Those loans are called revolving loan funds, and so that is the point: we lend out to the community,
• Those loans are called revolving loan funds, and so that is the point: we lend out to the community,

Transcript Highlights:

• Now, unlike other states, California law requires these financing entities to obtain a lending license
• We have arrived at a solution that encourages mutually beneficial lending activity in California while
• Asset managers operating through multiple affiliated lending vehicles must complete duplicative licensing
• processes for each of their affiliated lending vehicles.
• By enabling institutional funds to participate more readily in California's commercial lending markets

Committee: Senate Banking and Financial Institutions

Summary: The Senate Committee on Banking and Financial Institutions met on SB 972 and a consent calendar item, initially without a quorum. SB 972 was presented by Senator Grayson as a bill to modernize the California Financing Law for non-bank lenders by creating a streamlined umbrella licensing process for SEC-registered investment advisers and their advised lending vehicles. The sponsor, LSTA, testified in support, saying the current process creates duplicative licensing, long delays, and reduced access to capital for California companies, while the bill would preserve DFPI oversight and increase fee revenue. No one testified in opposition. After quorum was established, the committee voted 4-0 to move SB 972 forward, with the motion later recorded as a due pass to the Senate Judiciary Committee. The committee also took up the consent calendar, which was adopted after additional members arrived, with a final recorded vote of 6-0. The committee then adjourned.

Transcript Highlights:

• Now, unlike other states, California law requires these financing entities to obtain a lending license
• We have arrived at a solution that encourages mutually beneficial lending activity in California while
• Asset managers operating through multiple affiliated lending vehicles must complete duplicative licensing
• processes for each of their affiliated lending vehicles.
• By enabling institutional funds to participate more readily in California's commercial lending markets

Committee: Senate Banking and Financial Institutions

Transcript Highlights:

• So this bill—it's already a misdemeanor to knowingly lend a vehicle to someone whose driving you know
• I would have to know that the person had a weapon, which here, you know, the person lending just has
• I would have to know that the person had a weapon, which here, you know, the person lending just has
• So if somebody lends you their car, they're obstructing justice.
• So, no, I'm not going to lend it to you. Yeah.

Bills: HB2051 , HB2114 , HB2127 , HB2134 , HB2207 , HB2574 , HB2700 , HB2800 , HB2916

Committee: Senate Appropriations, Transportation and Technology

Keywords: AHCCCS, lactation care, breastfeeding, health services, healthcare access, special license plates, transportation, funding, nonprofits, charitable contributions, critical infrastructure, foreign adversaries, China, communications, security, braille, disability access, education funding, state corrections, inclusion

Transcript Highlights:

• I have one question: did you say real estate lending, and is that another word for lending acquisition
• The lending itself would be direct lending for real estate, so two very different components to really
• </c> entrepreneurship side with our lending entrepreneurship side with our lending Services<00:51:34.400
• </c><00:51:40.680><c> program</c> to Pilot a real estate lending program to Pilot a real estate lending
• </c> we are to Pilot a real estate lending we are to Pilot a real estate lending program<00:52:10.839

Committee: Senate Jobs and Economic Development

Transcript Highlights:

• But starting and sustaining a business requires access to capital, and our traditional lending system
• But starting and sustaining a business requires access to capital, and our traditional lending system
• lending possible when traditional<00:04:05.200><c> underwriting</c><00:04:05.920><c> says</c><00:04:
• ><c> underserved</c> Increase lending capacity in underserved Increase lending capacity in underserved
• Grant programs are for developers who we'd lend to. >> Right?

Transcript Highlights:

• But in a scenario where you're lending the vehicle, you don't know how... ...that danger to society,
• but in a scenario where you're lending the vehicle, you don't know how awful this situation could be.
• So if somebody lends you their car, they're obstructing justice.
• So, no, I'm not going to lend it to you. Yeah. Or...
• “You’re going to lend a car, you should look.

Summary: The committee first heard House Bill 2134, which would create the Arizona Critical Infrastructure Protection Act to bar state and critical infrastructure entities from contracting with the People’s Republic of China or Chinese companies for access to Arizona critical infrastructure, and to prohibit Chinese-produced software in critical infrastructure. The sponsor and a witness from State Armor argued the bill was needed to reduce cyber and sabotage risks and to align Arizona policy with national security concerns. Some members questioned costs, overlap with federal law, and the Corporation Commission’s capacity, but the bill was approved on a 6-4 vote for a due pass recommendation. The committee then considered House Bill 2051, which would require AHCCCS contractors, subject to federal approval, to cover breastfeeding and lactation care services and, under a proposed amendment, create a voluntary state certification for lactation care providers through the Department of Health Services. Testimony from lactation consultants, maternal health advocates, and researchers emphasized improved maternal and infant outcomes, access gaps for Medicaid families, and potential cost savings. AHCCCS and ADHS were neutral but noted implementation costs and the need for CMS approval; the committee adopted the amendment and gave the bill a 9-0 due pass recommendation. House Bill 2700 would establish a 15-member technology-first study committee focused on assistive technology for people with disabilities, with an amendment adding appointments by legislative minority leaders. Supporters said the committee would help Arizona catch up on assistive technology, improve independence, and address staffing shortages and aging-population needs. The committee discussed the amendment and then approved the bill 9-0. House Bill 2800, which would increase penalties for knowingly lending a vehicle to a person with a DUI-related driving restriction if that person later causes serious injury or death, drew extensive debate over whether the felony penalty was too broad; the sponsor and family members of a victim supported it as a targeted deterrent, while some members raised due process and knowledge concerns. It passed 9-1. House Bill 2114, which would use motorcycle safety fund money for scholarships for rural and low-income riders and require at least one registered owner to have a Class M license before a motorcycle registration is issued, received supportive testimony from the sponsor, motorcycle advocates, and safety supporters; members noted a possible wording issue with existing endorsements, but the bill passed 10-0. The committee also took up House Bill 2127, a large special-plates bill that had been expanded into an omnibus measure; after discussion of a Kavanaugh amendment removing a duplicate Grand Canyon plate and withdrawal of an Alston amendment, the committee adopted the Kavanaugh amendment and gave the bill a due pass recommendation.

Transcript Highlights:

• Payday lending became legal in '96 as a carve-out to Washington's usury law.
• As required by the Truth in Lending Act. This is not the time.
• The existing $700 cap is more than enough to meet the needs of existing payday lending borrowers.
• I am senior policy counsel with the Center for Responsible Lending.
• , borrowers are extremely resourceful, and they no longer have broken... ...lending.

Summary: The committee heard public testimony on several bills. SB 5976 would revise the Washington Commercial Electronic Mail Act by narrowing liability for misleading email subject lines and changing damages and Consumer Protection Act claims. Business, retail, hospitality, and e-commerce witnesses supported the bill, saying recent litigation has created uncertainty and exposed routine marketing emails to excessive penalties. Consumer advocates and the Washington State Association for Justice opposed it, arguing the current law protects consumers from deceptive marketing and that the bill would weaken enforcement and class actions. SB 6111 would require age verification and parental consent for minors creating social media accounts, restrict providers’ use of minors’ data, and authorize enforcement by the Attorney General and a limited private right of action. The sponsor and several parents, medical professionals, and advocacy groups supported the bill as a response to social media harms, including addiction, depression, cyberbullying, eating disorders, and exposure to harmful content. Technology and civil liberties witnesses opposed it, warning about privacy, data security, constitutional concerns, and the difficulty of implementing reliable parental consent and age verification. The committee also heard SB 6250, which would raise the maximum small loan amount from $700 to $1,200 and index it to inflation. The sponsor and a lender representative said the change would update an outdated limit and preserve existing consumer protections. Opponents, including legal aid, poverty, housing, labor, AARP, and community advocates, argued the higher cap would increase debt burdens and fees for low-income borrowers and older adults. Staff also briefed SB 6257, which would allow illness-related tolling for trainee real estate appraiser licensing timelines, and SB 6289, which would direct Commerce to create a statewide economic development and competitiveness strategic plan; SB 6289 drew supportive testimony from Commerce, ports, economic development groups, and business interests. The committee also held confirmation hearings for several Gambling Commission and Lottery appointees, who described their backgrounds and service, but no votes or final actions were taken in the transcript.

Transcript Highlights:

• So if they otherwise met the parameters of a loan program, yes, and an institution wanted to lend to
• Service entity that would qualify, let’s see, eligible lending institution, education service linked
• Let's see. service entity that would qualify, let's see, eligible lending institution, education service
• So I see on page 10 that it says that the State of Oklahoma shall not be liable to any eligible lending
• But of course, unless they qualify first and a lending institution wants to participate in this program

Bills: HB1590 , HB1242 , HB3818 , HB4305

Committee: Senate Revenue and Taxation

Summary: The committee first considered and unanimously approved the nomination of Keith Ventress to the Oklahoma Development Finance Authority and then to the Oklahoma Industrial Finance Authority. Members noted his banking background and asked a brief question about the reference to old congressional district boundaries in the nomination materials, but there was no substantive opposition and both nominations advanced to the Senate. House Bill 1590, by Senator Daniels, would create an Oklahoma education infrastructure linked deposit program to provide reduced-interest loans for charter schools and nonprofit private schools for capital and building needs. Supporters said it would use existing state linked-deposit structures already used for agriculture and affordable housing, while opponents raised concerns about using taxpayer-backed funds for private schools, the bill’s broad nonprofit language, and whether it could lead to more state oversight of private education. The bill passed 9-2. House Bill 1242, which would add survey day to the list of agricultural sales tax exemption items, was discussed briefly but received no motion for a do pass recommendation and remained in committee. House Bill 3818, by Senator Coleman, would create tax-advantaged insurance loss savings accounts for homes and vehicles; members expressed concern about missing definitions, contribution limits, and the potential for abuse, but agreed the concept had promise and the bill passed 9-2 after the enacting clause was stricken for further work. House Bill 4305, as amended, clarified how affordable housing properties are assessed for ad valorem tax purposes by excluding certain income-based subsidies from valuation; after questions about prior court cases and assessment practices, it passed 6-5.

Transcript Highlights:

• Also, I want to say another source of high-cost lending is auto-title lending.
• That's another really predatory form of lending.
• Also, I want to say another source of high-cost lending is paid out in auto-title lending.
• Texans make up about 10% of the market, but pay, high-cost lending is paid out in auto title lending.
• That's another really predatory form of lending.

Bills: SB1113 , SB1117 , SB1206 , SB1460 , SB1802 , SB1906 , SB1917 , SB2340 , SB2455 , SB2680 , SB2690 , SB705 , SB748

Committee: Senate Business & Commerce

Summary: The committee took up pending business first and reported several bills favorably, including SB 2139, SB 2610, SB 1856, SB 2530, SB 2401, SB 2858, and SB 3016, with most of those measures moving out on committee substitutes and being sent to the local and uncontested calendar or to the full Senate. The committee also heard SB 1906 on expanding Chapter 342E consumer lending rates; supporters argued it would modernize Texas law and expand access to safe, regulated credit, while opponents from Texas Appleseed and AARP warned it would raise costs on already expensive loans and worsen debt burdens. SB 1906 was left pending after testimony. The committee also reconsidered and re-voted SB 1856 after a procedural issue, with the substitute ultimately adopted and the bill reported favorably. The committee then heard SB 1113, which would clarify that certain vehicle converters, including a Texarkana business, do not need an additional dealer license to sell converted vehicles. The bill’s supporters described a long-standing business model and said the new metal license plate rules had created problems, while the Texas Automobile Dealers Association opposed the bill in its current form and said it could be resolved through DMV action or narrower changes. DMV said it was still researching a possible administrative fix, and SB 1113 was left pending. The committee also heard SB 2680, a Public Information Act cleanup bill dealing with emergency deadlines, business-day exclusions, and litigation timing; broadcasters and other open-government advocates argued the issues were already addressed by prior law and court rulings, while the Attorney General’s office said the bill would help with catastrophe notices and timing conflicts. SB 2680 was left pending. Other bills heard included SB 1117, which would allow any Texas-licensed dentist to administer botulinum toxin neuromodulators for aesthetic purposes in the oral and maxillofacial region; the author and dental witnesses said it would clarify scope and improve access, and the bill was left pending. SB 2340 would clarify the Attorney General’s investigative authority over Texas corporations, including pre-suit depositions and sworn written questions; opponents raised due process and separation-of-powers concerns, and the bill was left pending. The committee also heard SB 705 and SB 748, both TDLR cleanup bills, and SB 1206, which would impose timelines and notice requirements on municipalities reviewing transmission projects; SB 1206 was supported by an electric cooperative and left pending. SB 1460, creating an ethics violation registry tied to licensing consequences, drew constitutional and due-process objections from several witnesses and was also left pending. After a recess, the committee heard SB 1802 on landlord duties to repair mobility assistance devices like elevators and ramps in rental housing, with the author describing prolonged outages affecting seniors; the bill was left pending. Finally, SB 2455, creating an Energy Waste Advisory Committee to coordinate efficiency and demand-response programs, drew support from energy-efficiency and environmental witnesses and was left pending, and SB 2690, targeting deceptive business-certification solicitations, was laid out and opened to testimony before the transcript ended.

Transcript Highlights:

• Durbin serves as Chief Lending Officer for Agriculture Farm Credit Mid-America, which is headquartered
• Today, I serve as Farm Credit Mid-America's Chief Lending Officer, where I oversee the agriculture lending
• Farm Credit Mid-America is a customer owned, lending cooperative, and a proud part of the Farm Credit
• And raising those lending limits in order to keep pace with that increased capital environment allows
• FSA lending programs, what suggestions do you have to improve access?

Committee: Senate Agriculture, Nutrition, and Forestry Committee

Keywords: farm bill, rural economy, crop insurance, access to credit, young farmers, USDA funding freeze, agricultural policy, risk management

Summary: The meeting of the agricultural committee focused on significant concerns regarding the current state of America's rural economy, highlighting the need for a strong five-year farm bill to address the challenges faced by farmers, particularly young and beginning farmers. Key testimony was given by multiple stakeholders including agricultural leaders and young farmers, emphasizing issues related to crop insurance, access to credit, and the adverse impact of recent USDA funding freezes. Various members discussed the necessity of risk management tools that farmers rely on to secure financing, which is crucial for sustaining agricultural operations and supporting rural communities. The importance of timely legislative action was underscored, as many farmers reported struggles in the current economic climate, raising urgency for reforms within the Farm Bill framework.

Transcript Highlights:

• Now, who in their right mind would lend a second mortgage that, by the way, is usually non-recourse,
• And how this came about: I deal with a number of lenders, but Service Credit Union lends in many states
• a second mortgage that by the would lend a second mortgage that by the way<00:09:19.839><c> is</c><00
• program right so private lenders lending program right so private lenders are<00:12:33.160><c> lending
• money to private development are lending money to private development and<00:12:36.120><c> only</c><

Committee: Senate Commerce

Transcript Highlights:

• Instead, the mortgage lending authority provided under the bill is intended to streamline financing for
• It shows up in our construction lending, not our construction lending, but in the project's construction
• lending.
• In our construction lending, not our construction lending, but in the project's construction lending.
• would just add that part of, again, what this bill is going to allow us to do is to do some direct lending

Summary: The Capital Budget Committee held public hearings on several bills. On Substitute House Bill 2236, staff explained changes to the Washington State Housing Finance Commission’s authority, including allowing direct mortgage loans for multifamily housing, clarifying it is not a retail mortgage lender, extending bond counsel terms, removing a notice requirement before bond issuance, and repealing outdated statutory provisions. Representative Zahn and commission staff said the bill modernizes the agency and would help finance affordable housing without using state general funds. Testimony was generally supportive, with questions focused on higher interest rates, down payment assistance, and equity for borrowers of color; the commission said it works with banks, administers programs such as Covenant Home Ownership, and aims to support both homebuyers and developers. The chair then closed the hearing on SHB 2236. The committee next heard House Bill 2273 on reducing embodied carbon emissions in buildings and building materials. Staff described requirements for the State Building Code Council to adopt phased embodied-carbon standards for large projects, with reporting, a public database, and Commerce educational resources; the fiscal note showed operating and capital costs. Representative Duerr said the bill responds to rising energy demand and could help lower building costs while supporting innovation, including Washington wood products. Supportive testimony came from environmental justice advocates and an architect, who said embodied carbon reductions are already feasible and often cost-neutral. Opponents, including the Washington Aggregate and Concrete Association and Washington Citizens Against Unfair Taxes, argued the bill could raise costs, create sourcing and delay problems, and should not exempt schools. The hearing on HB 2273 was then closed. The committee also heard Senate Bill 5188, which would let the Public Works Board issue loans for broadband infrastructure repair and replacement. Staff said the bill expands the existing broadband service expansion program to cover repair and replacement of middle-mile and last-mile infrastructure, with Commerce fiscal impacts noted. The Association of Washington Cities testified with concerns that the bill could signal further use of the Public Works Assistance Account, which has already seen sweeps and could affect future water, sewer, wastewater, and solid waste funding. A question from Representative Dye raised whether the program should instead be tied to the Curb Board; staff and the witness agreed to continue that discussion. The hearing was then closed. In executive session, the committee took up House Bill 2353, House Bill 2420, and House Bill 2470. HB 2353, which raises the predesign threshold for capital construction projects from $10 million to $15 million and indexes it to inflation, was reported out of committee 18-0 with one excused. The committee then adopted and reported out the proposed substitute for HB 2420, which increases the small works roster contract limit and changes the effective date to January 1, 2027, also by an 18-0 vote with one excused. Staff also briefed members on a proposed substitute for HB 2470 concerning school construction assistance for on-base schools, but no vote was taken in the transcript. The chair announced another hearing and executive session for Friday and asked members to submit amendments by the next morning.

Transcript Highlights:

• decision tools to make lending decisions.
• And then, so the question is, I mean, I think, look, you can go to local lending institutions, community
• You can go to local lending institutions, community banks, you can go to credit unions, and you usually
• But in this case, what is then the requirement on the part of a lending institution?
• Sure, but your definition in a lending decision also includes combinations of both AI and manual.

Committee: Senate Banks

Summary: The Senate Banking Committee met with Chair James Sanders Jr. and reviewed a full agenda of banking-related bills. Early action included approval of a bill requiring licensed check cashers to file suspicious activity reports, and a bill on civil penalties for fraud or misrepresentation in financial products or services, though several members objected to removing the intentionality standard and warned it could broaden enforcement too far and discourage lending in New York. The committee also advanced a bill prohibiting fees for periodic paper statements, a bill on asset-based lending transactions, and a bill requiring reporting of suspected financial exploitation. Members spent substantial time on a bill regulating automated lending decision tools. The sponsor and chair said the measure would allow AI use but require a human review or appeal if a borrower is denied, while some senators raised concerns about competitiveness for state-chartered banks and possible overlap with existing human oversight. The bill was reported out and referred to the Internet and Technology Committee for further review. The committee also approved a DFS study bill on the financial stability and licensing of the check-cashing industry, with a suggestion that the study also examine risks of expanding the industry. A major discussion centered on the “Deep Protection Act,” aimed at preventing foreclosures tied to deed theft. The sponsor described cases involving elderly homeowners and fraudulent transfers, while opponents argued the bill was vague, could create unintended consequences or private litigation, and might affect only a small share of mortgages because it applies to state-chartered institutions. The sponsor said the bill would be amended and noted interest in related county clerk reforms. The committee ultimately sent the bill to Judiciary. The final bills addressed mortgage payment schedule fees and unsolicited mail loan checks; both were approved. The meeting ended after the chair emphasized open debate and committee review as part of improving legislation.

Transcript Highlights:

• So if they otherwise met the parameters of the loan program, yes, and an institution wanted to lend to
• Let's see, eligible lending institution, education service, linked deposit.
• So I see on page 10 that it says that the state of Oklahoma shall not be liable to any eligible lending
• But of course, unless they qualify first and a lending institution wants to participate in this program
• We have to remember that we're taking someone's hard-earned dollars and turning around and lending it

Bills: HB1590 , HB1242 , HB3818 , HB4305

Committee: Senate Revenue and Taxation

Keywords: education funding, linked deposits, education infrastructure, charter schools, nonprofit organizations, Oklahoma Education Infrastructure Program, HB1242, cervidae, deer, elk, sales tax exemption, agricultural exemption, livestock, ranching, farm tax, agricultural sales tax, Oklahoma Tax Commission, agriculture, producer sales, private treaty

Transcript Highlights:

• I'm here to lend my support to House Bill 2862 as well as answer any questions. criminalizing that.
• I'm here to lend my support to House Bill 262 as well as answer any questions.
• This bill closes a dangerous loophole by making it illegal to lend a vehicle to someone with a prior
• And somebody was going to help them out by lending them that other vehicle.
• I mean, that gives me the person who wants to lend the car the option of saying yes or no. Mr.

Committee: House House Judiciary Committee of Reference

Summary: The committee first heard HB 2931, which continues the Arizona Civil Rights Advisory Board for eight years. The sponsor and a Civil Rights Division representative testified that the board helps examine civil rights issues and supports transparency and justice. The bill received a due pass recommendation on a 5-3 vote. The committee then considered HB 2862, a strike-everything amendment creating a sentencing enhancement for crimes committed while wearing a mask to conceal identity, narrowed by amendment to Title 13 offenses. Opponents, including CAIR Arizona and the ACLU, argued it could burden religious expression and protest activity, while supporters said it targets criminal concealment and improves accountability. The committee adopted the striker and amendment and gave the bill as amended a due pass recommendation by a 7-2 vote. HB 4042 followed, requiring a potential father in a paternity action to serve the mother to avoid waiving certain rights and allowing failure to do so to support termination of the parent-child relationship. An adoption attorney said the change would close a loophole and align termination law with adoption statutes. The bill passed unanimously with a due pass recommendation. The committee also heard HB 4136, creating unlawful entry into a residence where a vulnerable adult lives as a felony, with an amendment removing immediate-arrest language and other provisions. The sponsor described a case involving repeated harassment of a vulnerable adult, while opponents said existing trespass, burglary, and aggravating-factor laws already cover the conduct. The amended bill received a due pass recommendation on a 6-3 vote.

Transcript Highlights:

• lending and not first mortgage lending for homebuyers.
• But by removing the statute's 1983-era restrictions on direct lending and public funds, Senate Bill 6018
• For many, many decades, we've tightened some of the language in particular to clarify mortgage lending
• The concern, of course, is opening wide open the direct lending without identifying the nature of the
• “Yeah, so it’s functionally construction lending.

Summary: The committee heard Senate Bill 6026, which would require cities and counties planning under the Growth Management Act with populations of 30,000 or more to allow residential uses in commercial and mixed-use zones and bar local governments from requiring ground-floor commercial or retail as a condition of housing approval, with exemptions for certain sensitive areas and a carve-out for transit-oriented development station areas. The prime sponsor, Senator Alvarado, and supporters from the governor’s office, Commerce, housing advocates, developers, and major employers argued the bill would unlock underused land, reduce costs, and help address the state’s housing shortage. Opponents and local government representatives from small towns, counties, and cities said the bill could harm commercial corridors, small businesses, tax base stability, and local planning flexibility, and asked for narrower exemptions or additional carve-outs. No vote was taken on SB 6026 during the hearing. The committee then held executive action on Senate Bill 5937 and Senate Bill 5938. SB 5937, dealing with smart access systems and tenant privacy, was amended to clarify that keypad-only entry is not covered, require written privacy policies within five days of installation, and add operational purposes to allowable data collection; the committee adopted the amendment and advanced the bill with a due pass recommendation. SB 5938, which changes the foreclosure prevention fee and directs a Commerce study on a state homeowner assistance fund, was also amended to extend the study deadline and related expiration date; the committee adopted the amendment and moved the bill forward with a due pass recommendation. The committee then heard Senate Bill 6018, which would expand and modernize the Washington State Housing Finance Commission’s authority, including allowing direct mortgage lending to borrowers, extending bond counsel selection cycles, removing advance notice requirements for bond issuance, and repealing an outdated housing finance plan/program. The sponsor and the commission said the bill would improve efficiency and create new financing tools for affordable housing, while banking groups said they supported the goal but wanted clearer limits to ensure the commission would not enter first-mortgage lending for homebuyers. The sponsor and commission said they would work on clarifying language. Finally, the committee heard Senate Bill 6027 and Senate Bill 6028. SB 6027 would expand the use of local housing sales taxes and the Affordable Housing for All account to support operations, maintenance, rehabilitation, and preservation of existing affordable housing, update REET exemption timing, and align the definition of emergency housing with the Growth Management Act; local governments, housing providers, and advocates strongly supported the bill as a way to preserve existing housing amid rising costs and federal funding uncertainty. SB 6028 would create a revolving loan fund administered by the Housing Finance Commission to finance mixed-income affordable homeownership projects with long-term affordability covenants; the sponsor said it would help builders who have entitled sites but face high capital costs, and the hearing began with staff briefing and sponsor testimony, with questions from members starting as the transcript ended.

Transcript Highlights:

• about the Division of Finance is that I was at a meeting this past summer with a couple of consumer lending
• in statute is kind of from a bygone era when brick-and-mortar locations were the only place that lending
• And even though the location numbers are down, the volume of lending and the complexity of lending has
• Well, back in 1991, in the 80s, when a lot of these lending laws were passed, we didn't have online lending
• Well, back in 1991, in the 80s, when a lot of these lending laws were passed, we didn't have online lending

Committee: House Financial Institutions