Transcript Highlights:

• Uh, but for 2023, out of $58 million of regular route operating costs, $21.8 million was operated on
• </c> million of regular route operating million of regular route operating costs,<00:49:55.119><c> 21.8
• </c><00:49:57.920><c> on</c> costs, 21.8 million op was operated on costs, 21.8 million op was operated
• </c> is their regular route operating cost. is their regular route operating cost.
• The operating costs of this.

Committee: House Transportation Finance and Policy

Transcript Highlights:

• So what would those cost?
• Okay, and then the cost of those boats, do you have that information, the cost of that third boat?
• This is a big operation.
• The operating budget... Yes.
• cost of money over time.

Summary: The committee received a detailed staff presentation on Washington State Ferries’ capital needs, current fleet status, and long-range funding outlook. Staff described the current service pattern, ridership recovery since the pandemic, the aging fleet, and the state’s plan to add three new hybrid-electric Olympic-class vessels under the 2025 budget, with delivery expected around 2030-2032. Members also heard that the fleet is operating with no reserve vessel, that preservation time is below the desired level, and that terminal electrification and vessel conversion plans face timing, cost, and procurement risks. Questions focused on ridership trends, biofuel supply, design-risk allocation in vessel contracts, sequencing of terminal electrification with new vessel delivery, and the cost and feasibility of restoring international Sidney service, which would require a SOLAS-certified vessel. Staff then outlined ferry capital funding, saying recent spending and programmed needs are far above regular ferry-specific revenues and that the system relies on a mix of dedicated accounts, transportation package money, federal grants, and transfers. They said the near-term budget is balanced through 2027-29, but the longer-term capital outlook shows a shortfall of roughly $250 million to $300 million per biennium, with broader unmet needs much higher. The presentation estimated costs for future vessels, life extensions, terminal electrification, and additional Jumbo Mark II conversions, and noted that the current enacted plan does not fully fund fleet replacement, full electrification, or life extension of older vessels. Members asked for follow-up information on terminal seismic/environmental issues, contract options for additional vessels, and the timing and cost of alternative vessel designs. The committee then shifted to WSDOT maintenance and preservation. Pascoe Focktich described maintenance operations, including winter response, guardrail repair, facilities, equipment, and the effects of underfunding and inflation. He said most of the maintenance budget is fixed cost and labor, that material prices have risen sharply, and that many facilities are in poor condition with asbestos issues and deferred upkeep. He also noted growing guardrail damage, increasing pavement claims, and the burden of maintaining aging bridges and facilities. Members asked about prior planning for these needs, the role of asbestos, and whether more proactive sequencing could help budget decisions. Troy Suing then presented the highway preservation program, saying WSDOT is in the early stages of critical failure and has stretched preservation dollars as far as possible. He explained the distinction between pavement, bridge, and other highway asset preservation, said the department is largely reactive, and estimated that delaying work can make it three to five times more expensive later. He said about 40% of roadways are currently due or overdue for preservation, bridge conditions are nearing the federal poor-bridge threshold, and the department’s 10-year preservation need is about $8 billion. Members asked about the cost of deferring work, whether the department could do more if funded, how priorities are set, and whether other states face similar problems. Finally, Evan Grimm and Mike Fay briefed the committee on bridge strikes by overheight vehicles. They described recent incidents on I-90 near Cle Elum and SR 410 near White River, the damage and closures caused, and possible countermeasures such as public outreach, improved trip-planning tools, and a pilot warning system with sensors and flashing beacons. Fay explained the state’s financial recovery process for third-party damage, saying WSDOT recovers roughly $20 million per biennium and about 78% to 80% of billed damages, with money going to the motor vehicle fund. Members asked about prevention, insurance recovery, and whether the state uses claim data to inform future design or safety changes.

Transcript Highlights:

• But there is cost savings in operating a hydrogen locomotive over a diesel locomotive.
• So when you start taking the cost of operation, you can pay a little bit more for fuel because you have
• Taking the cost of operation, you can pay a little bit more for fuel because you have a cost savings.
• The program helps to offset high hydrogen fuel costs for trucks performing port operations.
• of the operational advantages, the higher costs, uncertainty in the fuel market, and the limited availability

Summary: The Senate Select Committee on Hydrogen Energy held an informational hearing on California’s hydrogen leadership, with the chair framing hydrogen as a complementary clean-energy pathway for hard-to-electrify sectors such as heavy-duty trucking, transit, rail, ports, industrial uses, and backup power. The first panel of private-sector witnesses from the California Hydrogen Business Council, Bosch, Hyundai, and Sierra Northern Railway described existing deployments in California, including hydrogen buses, trucks, fueling infrastructure, and the nation’s first hydrogen fuel cell switcher locomotive. They emphasized that the technology is commercially ready but scaling is constrained by permitting delays, high fuel and equipment costs, infrastructure gaps, and uncertainty around federal support and incentives. Witnesses urged stable state policy, targeted investment, and concentrated deployment in high-impact corridors such as ports and freight hubs. Committee members also asked about labor standards, community engagement, and the current size of the hydrogen vehicle fleet in California and abroad. The second panel focused on air quality, climate, safety, and public health. Testimony from CAPCOA, the Coalition for Clean Air, the California State Building and Construction Trades Council, and a UC Berkeley researcher argued that hydrogen fuel cells can reduce diesel-related pollution and health harms when used in the right applications, especially in ports, rail yards, warehouse corridors, transit depots, and backup power for facilities like data centers. Witnesses cautioned that hydrogen should be used selectively, produced as cleanly as possible, and paired with early community engagement, safety planning, and environmental justice protections. The researcher cited projected reductions in NOx, particulate exposure, premature deaths, and health costs under broader hydrogen adoption. Committee members discussed workforce training, apprenticeship programs, and how to balance near-term costs with long-term infrastructure value. The final panel provided public-sector updates from SamTrans, the Governor’s Office of Business and Economic Development, the Port of Long Beach, and First Public Hydrogen Authority. SamTrans described its transition to a large hydrogen bus fleet and said the loss of expected ARCHES funding created a major infrastructure gap; it asked the state to protect transit funding, restore a sales tax exemption for zero-emission buses, and address axle-weight rules. GoBiz said the state should focus on creating demand, reducing costs, and streamlining permitting, while acknowledging the disruption caused by the federal cancellation of ARCHES funding. The Port of Long Beach reported hydrogen truck deployments, port incentives, and a planned public fueling station, but said high costs, fuel shortages, and uncertainty have slowed momentum. First Public Hydrogen Authority described efforts to aggregate municipal demand and support new green hydrogen production projects, stressing the need for long-term market signals and financing. Committee members repeatedly emphasized the need for state support, infrastructure investment, and a diversified fuel strategy to keep hydrogen deployment moving forward.

Transcript Highlights:

• Operations and maintenance programs yield, on average, 10 to 15 percent in annual utility cost savings
• Again, compliance costs include the time involved in benchmarking, operations and maintenance, and energy
• There will be operating costs for Commerce this biennium and ongoing.
• The operating cost for Commerce in fiscal year 2027 from the general fund state are roughly $291,000
• In 2027-29, the staffing costs would be roughly $362,000 for the biennium in operating.

Summary: The committee first received a Commerce overview of capital budget grant programs, including behavioral health facilities, Building for the Arts, Building Communities Fund, early learning facilities, library capital improvements, and youth recreational facilities. Commerce described program eligibility, match requirements, funding cycles, and project examples such as an early learning center in Spokane, a rural library in Stevens County, and a youth clubhouse in Prosser. Members asked about behavioral health capital projects, including how many facilities have been opened and how capital planning aligns with operating funding; Commerce said it could provide more data later and noted it focuses on capital while HCA, DSHS, and DOH handle operating requests. Members also raised concerns about nonprofit financial stability, project licensure, siting, and the burden of non-state match, while Commerce emphasized shovel-ready projects, community match, and efforts to reduce application burden. The committee then heard an update on the Clean Buildings Performance Standard from Commerce. Staff reviewed Washington’s building emissions laws, compliance tiers, exemptions, incentives, and district energy system decarbonization planning under House Bills 1543, 1976, and 1390. Commerce reported nearly 5,000 inquiries in 2025, a fellowship program that has helped more than 250 buildings in 16 counties, and review of nearly 30 district energy plans. The presentation highlighted that over half of Tier 1 buildings are already meeting targets, that Tier 2 incentive applications suggest the 30-cent-per-square-foot incentive often covers compliance costs, and that district decarbonization plans face common challenges such as aging infrastructure, grid readiness, workforce, and inconsistent cost reporting. Members asked what additional legislative action might help, and Commerce said it was still learning from the new rulemaking and implementation changes. Western Washington University and Corex then presented on WWU’s campus heating conversion project and a possible off-campus thermal energy partnership with the Port of Bellingham. WWU described its aging steam system, high emissions, maintenance costs, and the $51 million in Climate Commitment Account funding it has received to transition toward an electric hot-water system using technologies such as geo-exchange, heat recovery chillers, and air-source heat pumps. Corex explained its existing district energy system at the Port of Bellingham, which uses industrial waste heat and is operating at very high efficiency, and said it is exploring a heat transmission line to WWU and possibly sewer-heat recovery. Testimony from WSU and UW supported the broader decarbonization effort but raised concerns about the scale of costs, deferred maintenance, and the need for predictable state funding. A contractor witness urged the state to think bigger about public-private partnerships and other financing tools rather than forcing campuses to compete for limited funds. The committee then held a public hearing on House Bill 2330, which would create a prioritization process for capital funding for state campus district energy system decarbonization projects. Staff said the bill would establish a Commerce committee to score and rank projects, issue a preliminary framework report by December 30 of this year, and provide biennial recommended project lists beginning in 2028, while also studying barriers to energy-as-a-service contracts and public-private partnerships. The prime sponsor said the bill is intended to create a thoughtful, predictable process for deciding which projects to fund, emphasizing energy savings, emissions reductions, operating cost reductions, shovel-readiness, and the value of public-private partnerships. Testimony was mixed but generally supportive: WSU and UW backed the bill as a way to advance compliance and predictability, though WSU warned that compliance costs could be very large and that the university would likely seek state help if fines were imposed. A contractor witness supported the concept but argued the bill should help build a larger funding “pie” through partnerships and financing tools rather than simply dividing scarce resources. The committee then opened and heard testimony on House Bill 2338, which would authorize community-scaled weatherization projects. Commerce staff said the bill would allow weatherization funds and matching funds to be used for neighborhood-scale projects affecting multiple dwelling units, while still prioritizing low-income households; the fiscal note estimated about $273,000 in FY 2027 and about $237,000 per biennium ongoing for administration. Supporters from community action agencies and Spark Northwest said the bill would improve health, safety, affordability, and contractor participation by allowing weatherization to be done at a community scale, especially in mobile home parks and low-income neighborhoods. No votes were taken in the transcript.

Transcript Highlights:

• Operations and maintenance programs yield, on average, 10 to 15 percent in annual utility cost savings
• There will be operating costs for commerce this biennium and ongoing.
• The operating cost for commerce in fiscal year 27 from general fund state are roughly 291,000 for staff
• In 2027–29, the staffing costs would be roughly $362,000 for the biennium in operating.
• One, it improves the decarbonization benefit, but it also means reduced operating costs, because those

Bills: HB2330 , HB2338

Committee: House Capital Budget

Keywords: energy systems, capital funding, state campus, school infrastructure, sustainability, weatherization, energy efficiency, community projects, environment

Transcript Highlights:

• South count for your operations?
• operation in the Caribbean?
• Does underestimating the costs of an operation put future missions and future risks at risk?
• But we don't even have a cost estimate for the new Guantanamo operation.
• So, Admiral Halsey, what do you expect the budgetary cost of SOUTHCOM's Guantanamo operations will be

Committee: Senate Senate Armed Services Subcommittee on Personnel

Keywords: national security, China, Russia, cybersecurity, border security, military deployment, transnational crime, defense modernization, military strategy

Summary: In this meeting, key topics included national security concerns with an emphasis on threats from China, Russia, and transnational criminal organizations. Senior military officials provided testimony on the evolving risks posed by these adversaries, particularly focusing on cybersecurity and advancements in weaponry. The discussion highlighted the importance of a cohesive strategy among government departments to effectively respond to the challenges presented by these threats, emphasizing the need for modernization in defense capabilities. Committee members grilled the witnesses on border security and the implications of deploying military resources in domestic operations.

Transcript Highlights:

• “The fee is based on DOH’s administrative oversight and enforcement costs, and the fee is tied to operators
• So this graph shows DOH's revenue from annual fees paid by program operators compared to DOH's costs.
• It will just show up as direct cost as opposed to overhead cost. So it is kind of a wash.
• As direct cost as opposed to overhead cost, so it is kind of a wash.
• Do you do you Your fee costs.

Summary: The Joint Legislative Audit and Review Committee met on January 7, 2026, approved the December minutes, and adopted an amended work plan. Staff proposed moving the drug take-back program sunset review up to 2026 and delaying the thermal energy network pilot review to 2028, which would free capacity for new studies. Members also discussed active bills that would eliminate two recurring JLARC reports, including one on lodging tax revenue data collection, and the committee adopted the work plan without objection. JLARC staff then outlined new performance measures for the committee itself, covering effectiveness, efficiency, and quality. The measures include member and legislative satisfaction surveys, presentations to other committees, recommendation follow-up, staff retention, on-time report delivery, peer review results, and national recognition. Members praised the effort and did not take formal action, treating the measures as an ongoing process. The committee also heard a proposal to improve JLARC’s review of tax preference performance statements by adding a standard rubric in fiscal notes to assess whether a metric matches the policy objective, is measurable, uses reliable data, and allows enough time for evaluation. Members supported the pilot approach. Staff also described planned changes to public records reporting guidance, including opt-outs for low-volume metrics, better validation, targeted outreach to nonreporting agencies, and a survey of records officers. Two preliminary reports were presented. On ignition interlock devices, JLARC found that only 41% of drivers with a requirement had installed a device, with installation rates rising sharply with income; financial assistance reaches only about 11% of users, and JLARC recommended clearer program goals and stronger coordination between the Department of Licensing and State Patrol. On the drug take-back program, JLARC found that the fee structure tied to operator expenditures limits the Department of Health’s ability to recover oversight costs and recommended public reporting of oversight spending and a statutory change to better align fees with actual costs. Agency representatives generally agreed with the findings, described current coordination and administrative changes, and said they would consider the recommendations. No formal votes were taken on the reports, which will return in final form later in the year.

Transcript Highlights:

• by Representative Carpenter to urge and request the Department of Health to study and report on the cost
• The chair added that the body does not always operate on precedent and that each case will be handled
• Because I know a lot of people are concerned about what that cost would be.
• It protects, it cleans up issues in the law where there are gaps, and that's where a lot of the costs
• , the rising costs of property taxes.

Bills: HR275 , HR276 , HR277 , HR278 , HR279 , HR280 , HR281 , HR282 , HR283 , HR284 , HCR112 , HCR113 , HR265 , HR266 , HR267 , HR268 , HR269 , HR270 , HR271 , HR272 , HR273 , HCR107 , HCR108 , HCR109 , HCR110 , HCR111 , SCR63 , SCR66 , SCR67 , SB414 , SB484 , SB513 , HR168 , HR174 , HR194 , HR216 , HR264 , HCR54 , HCR74 , HCR79 , HCR85 , HCR87 , HCR94 , HCR95 , HCR97 , HCR98 , HCR104 , SCR23 , SCR29 , SCR33 , SCR38 , HB75 , HB705 , SB54 , SB56 , SB72 , SB79 , SB97 , SB105 , SB123 , SB125 , SB129 , SB163 , SB171 , SB252 , SB287 , SB375 , SB386 , SB461 , SB466 , HR84 , HR188 , HR205 , HR3 , HR197 , HR243 , SCR19 , SCR3 , SCR6 , SCR18 , SCR11 , SCR22 , SCR2 , SCR20 , SCR24 , SCR35 , HCR6 , HB301 , HB359 , HB657 , HB675 , HB680 , HB727 , HB39 , HB58 , HB112 , HB134 , HB155 , HB187 , HB287 , HB462 , HB782 , HB825 , HB846 , HB903 , HB904 , HB929 , HB941 , HB962 , HB1200 , HB4 , HB623 , HB944 , HB986 , HB1098 , HB1222 , SB45 , SB58 , SB71 , SB81 , SB92 , SB100 , SB109 , SB141 , SB156 , SB181 , SB203 , SB204 , SB205 , SB207 , SB213 , SB214 , SB216 , SB229 , SB257 , SB274 , SB290 , SB304 , SB374 , SB379 , SB396 , SB410 , SB425 , SB427 , SB429 , SB479 , SB522 , SB34 , SB164 , SB172 , SB198 , SB208 , SB232 , SB281 , SB286 , SB317 , SB322 , SB334 , SB380 , SB385 , SB409 , SB417 , SB421 , SB430 , SB439 , SB447 , SB458 , SB510 , HB842 , HB633 , HB1191 , HB625 , HB1255 , HB251 , HB582 , HB646 , HB819 , HB998 , HB1257 , SB197 , SB436 , SB78 , HB901 , HR20 , HR74 , HCR65 , HCR71 , HB284 , HB302 , HB306 , HB341 , HB366 , HB393 , HB458 , HB577 , HB603 , HB605 , HB614 , HB733 , HB752 , HB773 , HB798 , HB911 , HB955 , HB996 , HB1035 , HB1069 , HB1113 , HB1140 , HB1180 , HB1240 , SB82 , SB89 , HB258 , SB149 , SB382 , SB441

Keywords: highway maintenance, signage, transportation safety, DOTD, infrastructure, public safety, federal grants, job creation, carbon storage, carbon dioxide storage, carbon capture and storage, CCS, mineral rights, mineral owners, oil and gas, disposal wells, injection wells, advanced drilling, carbon sequestration, Louisiana energy policy

Transcript Highlights:

• Great operators within the city, local private utility companies, and you have great operators.
• At some point, the operator would be held responsible for the poor operation.
• Are they all owner-operated, or are some of them like HOA-type facilities that hire an operator to operate
• So the operator, they're actually the operator of record. They're not hiring a third party.
• So, you know, there's a lot of factors in that cost of service for operators, but the intent is through

Bills: HB29 , HB685 , HB1633 , HB1689 , HB1690 , HB1918 , HB2010 , HB2500 , HB2608 , HB2626 , HB29

Committee: House Natural Resources

Transcript Highlights:

• Public reporting of DOH's oversight costs would make the basis... Oversight costs.
• The fee is based on DOH's administrative oversight and enforcement costs, and the fee is tied to operators
• This graph shows DOH's revenue from annual fees paid by program operators compared to DOH's costs.
• As direct cost as opposed to overhead cost, so it is kind of a wash.
• Do you do you Your fee costs.

Summary: The Joint Legislative Audit and Review Committee met on January 7, 2026, approved the December minutes, and adopted an amended work plan. Staff proposed moving the drug takeback program sunset review up to 2026 and delaying the thermal energy network pilot review to 2028, which would free capacity for new studies. Members also noted bills that would eliminate two recurring JLARC reports, including one on unemployment insurance training benefits and one on lodging tax revenue reporting. The committee then discussed JLARC’s own performance measures and a pilot approach for evaluating tax preference performance statements in fiscal notes. Staff said JLARC will begin surveying members and the full legislature on satisfaction, track invitations to present to other committees, monitor recommendation resolution rates, staff retention, on-time report delivery, peer review results, and national recognition. For tax preference reviews, staff proposed a standard rubric to assess whether performance metrics match policy goals, are measurable, use reliable data, and allow enough time for evaluation; members generally supported the effort. Staff also outlined planned changes to public records reporting, including allowing agencies to opt out of tracking low-volume metrics, targeted outreach to nonreporting agencies, better data validation, clearer online guidance, and a survey of public records officers. The main audit presentation was a preliminary report on ignition interlock device compliance and monitoring. JLARC found that about 41% of drivers required to install devices had done so, with installation rates rising sharply with income; half of affected drivers earned less than $28,000 a year, and the typical annual device cost was about $2,700. Staff said the state’s financial assistance program has limited reach and lacks clear goals, performance measures, and coordination between the Department of Licensing and State Patrol. They recommended that the agencies formalize their roles and develop a coordinated strategy to improve installation rates. State Patrol and Licensing said they support the findings, described recent outreach pilots, and said they would work on a management plan and possible expansion of outreach efforts. JLARC also presented an expedited preliminary report on the drug take-back program’s fee setting and expenditures. Staff concluded that the current fee design limits the Department of Health’s ability to recover oversight costs and that public reporting of oversight expenditures would improve transparency. They recommended that DOH publicly report its oversight activities and that the legislature amend the fee structure to remove the cap tied to program operator expenditures. DOH agreed the current structure does not fully recover costs and said it would support a statutory change. The committee adjourned after noting its next regular meeting is scheduled for April 8, 2026.

Transcript Highlights:

• But there is cost savings in operating a hydrogen locomotive over a diesel locomotive.
• So when you start taking the cost of operation, you can pay a little bit more for fuel because you have
• a cost savings.
• The program helps to offset high hydrogen fuel costs for trucks performing port operations.
• of the operational advantages, the higher costs, uncertainty in the fuel market, and the limited availability

Transcript Highlights:

• Business Enterprise Program operated stands, repair costs, and operator benefits, 11500,500,000.
• </c> program operated stands 10 repair costs program operated stands 10 repair costs and<03:15:55.200
• </c><05:17:28.400><c> of</c> indirect administrative costs of indirect administrative costs of operating
• </c><05:17:46.638><c> of</c> indirect administrative costs of indirect administrative costs of operating
• Operating expenses, 78,650. Indirect cost assessment, 858,138?

Transcript Highlights:

• </c> to cryptobased data mining operations. to cryptobased data mining operations.
• ><c> the</c><00:03:00.640><c> utilities</c> If set operation increased the utilities If set operation
• So it has lowered costs.
• </c> since they've been in operation. since they've been in operation.
• Is there a a transient operation.

Transcript Highlights:

• operational challenges and cost<00:10:34.160><c> impacts</c><00:10:34.640><c> across</c><00:10:34.959
• pose various increase costs and pose various operational<00:35:55.280><c> issues</c><00:35:56.280><c
• ><c> that</c> immense cost in operational burden that immense cost in operational burden that it<00:36
• Similar thing is if you kept county operations, if one county it cost $1 million to create that operations
• </c> County operations if one County it cost County operations if one County it cost $1<01:19:47.199>

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Transcript Highlights:

• Fees are set in an amount necessary to cover the annual cost of operating and maintaining the firearm
• of operating the program.
• cost.
• cost.
• administrative costs.

Bills: HB2521 , HB2249 , HB1796

Committee: Senate Ways & Means

Keywords: firearms, background check, gun control, public safety, legislation, HB 2249, Washington Technology Solutions, WaTech, civil service, classified service, exempt employees, state employment, state personnel, network security, cybersecurity, information technology, IT contracting, data center, systems integration, network engineering

Transcript Highlights:

• of livestock operations do.
• operations.
• Our utility operates on a fundamental principle reflected in House Bill 2515: those who create costs
• bear those costs.
• costs, bear those costs.

Summary: The committee heard House Bill 2343, which would require the Department of Fish and Wildlife to obtain CAFO or individual discharge permit coverage for its game farms, and to treat game farms with at least 5,000 birds as large CAFOs. The prime sponsor and local officials from Centralia said the WDFW pheasant farm has contributed to nitrate contamination in a critical aquifer, affecting drinking water and public health, and argued the state should be held to the same standards as private operators. WDFW testified that it has already voluntarily secured the permit the bill would require and is working with Ecology and local partners. Testimony from county health and residents largely supported the bill, citing elevated nitrate levels and health risks, especially for infants and pregnant people. The committee then heard House Bill 2301, which expands Washington’s paint stewardship program to cover additional paint-related products, aerosol paints, and certain non-industrial coatings. The sponsor and industry supporters said the existing paint recycling program is working well and should be broadened to keep more materials out of landfills and reduce local hazardous waste costs. Local government witnesses supported the expansion but asked for changes on convenience standards, packaging coverage, and reimbursement for local collection costs. Ecology supported the overall concept but raised implementation concerns, including the need for uniform standards, full reporting, and more time for rulemaking. A wood preservatives industry representative opposed including wood preservatives, saying they are not paint and have different handling requirements. The committee also took testimony on House Bill 2515, a proposed substitute addressing emerging large energy use facilities, defined mainly as large data centers and virtual currency mining facilities. The bill would require utilities to adopt tariffs or policies to protect other ratepayers, require long-term contracts, demand response or curtailment provisions, reporting on energy and water use, and new clean energy targets for these facilities, while also changing how no-cost allowances under the Climate Commitment Act are allocated and creating an annual fee for the facilities. Supporters, including environmental groups, community action agencies, some utilities, and labor and tribal representatives, said the bill would protect ratepayers, improve transparency, and keep Washington on track for climate goals. Opponents, including data center and business groups, some ports, and several labor organizations, argued the bill is too prescriptive, could raise costs or discourage investment, may affect existing contracts and other large industrial loads, and could reduce construction jobs. No votes or final actions were taken in the transcript.

Transcript Highlights:

• Independent restaurants are operating under extraordinary pressure. Food costs are up.
• , and utility costs.
• costs.
• And four, operational complexity, which you've heard a lot about today, adds cost.
• And four, operational complexity, which you've heard a lot about today, adds cost.

Summary: The Special Legislative Commission on the Future of Payments and Sales Transactions by Credit Card and the Impacts for Small Business held a public hearing focused on credit card interchange fees, cashless transactions, chargebacks, fraud, and possible reforms affecting small businesses in Massachusetts. Chair Paul Feeney opened the meeting, outlined the commission’s charge, and noted that the hearing would hear from small business owners, industry representatives, and others on the effects of payment trends and proposed policy changes. Representative Sean Garballey testified first, arguing that universal card acceptance and the current interchange system are important to Massachusetts tourism and should not be disrupted ahead of a busy summer season. A large portion of the hearing featured independent restaurant owners and advocates, who said processing fees are especially burdensome because restaurants operate on very thin margins and are charged fees on sales tax and tips that are not retained as revenue. Testifiers including Jen Ziskin, Kristen Canty, Nancy Cushman, and Kerry Colzer described rising operating costs and gave examples of annual or monthly fee totals, urging relief from fees on tax and gratuity amounts. Ryan Lotz also asked for chargeback reforms, including refunding chargeback fees when merchants prevail, requiring consumers to contact businesses before disputing charges, proportional fees, and safeguards against repeat abuse. Several witnesses, including Dan Swanson, argued that states have authority to regulate aspects of the payment system and cited the Illinois litigation and federal court rulings as support for state action. Opposing testimony came from credit unions, banks, payment industry representatives, and policy groups, who warned that changing interchange rules could create compliance burdens, reduce rewards, raise account fees, and shift costs elsewhere. Witnesses such as Alex Vereen, Brad Popolado, Keely McEwen, David Montero, Hunter Hamburlin, and Luke Bondar emphasized fraud prevention, network security, consumer protections, and the need for a stable, uniform payment system. Some suggested alternatives such as vendor compensation, surcharging, instant payments, or QR pay code standards, while others argued that sales tax and tip amounts cannot easily be separated within current card-network architecture. The chairs said the commission is still exploring options, discussed possible state-level solutions, and announced plans for one more public hearing before moving toward recommendations and a report. The commission then voted to adjourn.

Transcript Highlights:

• ><00:47:39.240><c> line</c><00:47:39.520><c> and</c> operating costs of our blue line and operating costs
• 48:38.480><c> rail</c><00:48:39.720><c> operations</c> operating cost of a of rail operations operating
• </c><00:54:11.760><c> lines</c><00:54:12.680><c> as</c> operating costs of new Transit lines as operating
• </c> of the operating costs that we haven't of the operating costs that we haven't seen<00:54:48.480>
• between operating and capital cost.

Committee: Senate Transportation

Transcript Highlights:

• Fees are set in an amount necessary to cover the annual cost of operating and maintaining the firearm
• of operating the program.
• cost.
• administrative costs.
• This increased the cost of LECs. Lender requirements. This increased the cost of LECs.

Summary: The committee first suspended the five-day notice rule and then heard House Bill 2521 on firearm background check fees. Staff explained that the bill would remove the $18 fee cap and allow Washington State Patrol to set fees based on actual program costs, which could be about $33 to $35 per check. Supporters said the change was needed to keep the background check system operating and avoid delays and layoffs; opponents argued it would burden lawful gun owners and amount to an unconstitutional tax or barrier to a constitutional right. No vote was taken in the hearing. Members then heard Substitute House Bill 2475 on language-accessible public programs, which would direct the Office of Equity to develop uniform language-access guidelines, address interpreter and translator shortages, and require agency implementation reporting. Testimony was strongly supportive, emphasizing the need for consistent access for limited-English-proficient residents and the benefits for schools, families, and state services. The committee also heard Second Substitute House Bill 2479 on wage recovery, which would create a wage recovery fund to provide partial advance payments to low-wage workers with meritorious unpaid wage claims and adjust wage penalty provisions. Employers, labor advocates, and legal services representatives largely supported the bill as a bipartisan, worker-protection measure funded by penalties rather than the general fund. The committee next took up Engrossed Third Substitute House Bill 1960 on renewable energy tax incentives, which would replace existing property tax and excise tax provisions with a new state and local renewable energy excise tax structure and related grant programs for local governments and tribes. Counties, utilities, developers, and tribal representatives generally supported the bill’s goal of stabilizing tax treatment for renewable projects, though several witnesses said they wanted amendments to address rates, timing, and late-stage project impacts. The committee also heard Substitute Senate Bill 5932 on alternative jet fuel incentives, which would change the timing and duration of existing tax preferences; supporters said it would provide certainty for emerging sustainable aviation fuel projects, while one refinery sought clarification and a broader county threshold. Later, the committee heard Engrossed Substitute House Bill 2238 on statewide food security, directing the Department of Agriculture to monitor food system performance and develop a statewide food security strategy. Agricultural groups, grocers, anti-hunger advocates, and farmers supported the bill as a coordination effort to improve food access, affordability, and supply chain resilience. The committee then heard Engrossed Second Substitute House Bill 1903, which would create a statewide low-income energy assistance program through the Department of Commerce; supporters said it would address growing unmet need and complement existing utility programs, while opponents said it did not address the root causes of rising energy costs. Finally, the committee heard Engrossed Second Substitute House Bill 2416 on waste-to-energy facilities under the Climate Commitment Act and Engrossed Second Substitute House Bill 2515 on large energy-use facilities (data centers), both of which drew mixed testimony centered on balancing emissions, ratepayer impacts, reliability, and environmental or tribal concerns. No final votes were taken in the hearing.

Transcript Highlights:

• First, swipe fees are among our merchants' highest operating costs after labor.
• insurance costs, energy costs, labor costs, and credit card fees.
• insurance costs, energy costs, labor costs, and credit card fees.
• So, like Steve is pointing out, there are set costs. These are costs that are non-negotiable costs.
• We know that there's costs to doing business.

Summary: The commission met to continue studying credit card payments, interchange fees, fraud, chargebacks, and the impact of card processing costs on small businesses, especially restaurants and retailers. Members heard extensive testimony from credit unions, retailers, restaurant owners, payment-industry representatives, and an airline trade group. Supporters of reform argued that swipe fees are a major and rising expense, that businesses are paying fees on sales tax and tips that are merely pass-through amounts, and that merchants have little negotiating power. Several restaurant and retail witnesses described thin margins, higher costs for card-not-present transactions, and chargebacks that they said usually favor cardholders and leave merchants absorbing losses and fees. Witnesses from the Cooperative Credit Union Association cautioned that state-level interchange regulation could reduce revenue used for fraud prevention, compliance, and member services, and could lead to higher rates or reduced access. Retail and restaurant representatives countered that fees have risen sharply, that statements are difficult to decipher, and that rewards programs and card-network pricing are subsidized by merchants and ultimately by all consumers. The Massachusetts Restaurant Association and independent operators urged legislation to bar fees on tax and tip portions of transactions and to allow businesses to pass along card fees if they choose, saying this would improve transparency and fairness and help keep small restaurants open. Other testimony came from the National Restaurant Association, which supported interchange reform and said modern point-of-sale systems can already separate tax and tip amounts, and from a payments-industry group that emphasized the broader economic benefits of digital payments and warned against state-by-state rules. Airlines for America opposed changes that could undermine airline credit card rewards programs. Commission members asked detailed questions about fee structures, card types, chargebacks, POS systems, and whether consumers paying cash are also affected. No votes or formal actions were taken at the meeting.