Transcript Highlights:

• And, of course, they had the PPP loans and the SBA loans, but, I mean, all that does is put us backward

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held a hearing on the Trump administration’s freeze of federal child care and social services funding and its potential impact on California. The chair opened by emphasizing that child care is economic infrastructure and warning that the freeze could destabilize California’s $10 billion child care system. The Legislative Analyst’s Office and the Department of Social Services explained that California child care programs rely on roughly $1.4 billion in federal CCDF and TANF funds, which are blended with state dollars and support hundreds of thousands of children and families. CDSS said the state and four other Democratic-led states quickly sued, obtaining a temporary restraining order that has kept the funds flowing for now. Witnesses including Los Angeles County Supervisor Holly Mitchell, child care provider Amisha Griffin, and parent advocate Mara Linda Bustamante described the practical consequences of a funding interruption: providers could lose reimbursement, close centers, cut enrollment, or lay off staff; parents could lose child care, jobs, or school opportunities; and counties could not backfill the lost federal dollars. Several speakers stressed that child care centers also provide wraparound supports such as nutrition, developmental screening, and referrals, especially in rural and low-income communities. Mitchell and others argued that the freeze would worsen child care deserts and disproportionately harm women, single parents, and communities of color. Members repeatedly challenged the federal rationale of “waste, fraud, and abuse,” asking for oversight details. CDSS said providers face extensive audits, fraud policies, monitoring, and recoupment procedures, and that identified fraud amounts to about $7 million over two years compared with roughly $6.5 billion in annual child care spending. Several members said the fraud rate is under 1 percent and criticized the freeze as politically motivated and illegal. They also discussed the need for a state “bridge plan” to protect families if federal funds remain disrupted, and some members referenced prior legislation to modernize CalWORKs and child care eligibility. During public comment, parents, providers, county representatives, and advocacy groups echoed the same concerns, citing waiting lists, workforce losses, and the risk of families falling back into homelessness or poverty. No formal vote was taken; the hearing concluded with broad bipartisan expressions of support for child care funding and a commitment to continue working on state protections and federal advocacy.

Transcript Highlights:

• And, of course, they had the PPP loans and the SBA loans, but all that does is put us backward, in my

Transcript Highlights:

• Last federal fiscal year, Commerce received a $900,000 STEP grant award from the SBA.

Summary: The Senate Committee on Business, Financial Institutions, and Trade met off-site at SEA Airport for a work session focused on Washington’s air and maritime cargo economy. The first panel featured Port of Seattle air cargo manager Tom Green, Northwest Seaport Alliance CEO John Wolfe, and Washington Public Ports Association executive director Eric Fitch. Green described SEA’s air cargo mix, emphasizing the importance of belly cargo on passenger flights, the airport’s international freighter and domestic cargo operations, and the value of air cargo to exports, imports, and jobs. Wolfe outlined the Northwest Seaport Alliance’s role as a joint Seattle-Tacoma maritime gateway, the competitiveness of West Coast ports, recent volume volatility tied to tariffs and supply chain shifts, and regional partnerships such as inland logistics efforts in the Tri-Cities and work with tribal and city partners. Fitch then presented a broader trade strategy effort led by public ports and industry groups, centered on making Washington the most competitive West Coast gateway through partnership, workforce support, truck parking, site readiness, foreign trade zones, permitting, and land-use protections for industrial areas. Committee members asked about whether a separate cargo airport would relieve pressure at SEA, how cargo is measured, the role of Moses Lake and Paine Field, truck parking, and the effects of tax increment financing and international trade planning. The witnesses generally said cargo relocation would not solve the need for belly cargo at SEA, that kilograms/metric tons are the industry standard, and that smaller airports can capture some charter or niche cargo but SEA remains the main hub. Fitch said truck parking is a major unmet need and that tax increment financing has helped some port projects, especially in Pasco. Chair Kauffman and members also raised workforce development, manufacturing incentives, and coordination with broader state trade planning. The committee then heard from the Department of Commerce on small business export assistance and international investment promotion. Commerce staff said exports are critical to Washington’s economy, but tariffs and trade uncertainty are raising costs and threatening competitiveness, especially in aerospace and agriculture. They highlighted the state’s overseas consultant network, the Paris Air Show delegation, and participation in Fruit Attraction in Madrid as examples of trade promotion work that can generate business leads and jobs. They also warned that federal funding for overseas representation and the STEP export program is at risk, which could reduce Washington’s visibility in global markets and limit support for small exporters. A roundtable followed with Washington Farm Bureau’s Brianna Elsie, ILWU longshore worker Ali Vekich, and Eric Fitch. Elsie said specialty-crop agriculture has been more resilient than some other sectors but is still under severe pressure from high labor and input costs, farm losses, and market uncertainty; she urged broader policy solutions beyond mental health support. Vekich described how tariffs, zoning changes, and industrial land pressures are hurting longshore jobs and argued for stronger protections for maritime industrial lands. Fitch closed by stressing that Washington’s trade economy depends on cooperation among ports, labor, agriculture, and state government, and that maintaining competitiveness will require active policy support rather than complacency."}

Transcript Highlights:

• Political subdivisions and businesses in governor-declared disaster areas that qualify for FEMA or SBA

Bills: HB48 , HB66 , HB68 , HB71 , HB75 , HB164 , HB171 , HB254 , SB 3 , SB 18 , HB123 , HB149 , HB117

Committee: House Disaster Preparedness & Flooding, Select

Transcript Highlights:

• Small business lending and innovative projects like community land trusts.
• variety of activities such as investing in affordable housing tax credits, direct giving, direct lending
• and the proportion of that lending to low- and moderate-income borrowers.
• Credit unions exist to... ...offer pooled savings and lending services for member owners.
• They see the opportunity to have a thriving community and to have their lending standards that are in

Committee: House Banking and Finance

Transcript Highlights:

• Without using public funds or lending the credit of the state, the commission can issue non-recourse
• We're not lending the credit of the state in any way.
• So right now in our current statute we are precluded from doing that direct lending.
• that lending, combined with the elimination of the prohibition against the use of public funds.
• that lending, combined with the elimination of the prohibition against the use of public funds.

Bills: HB2118 , HB2236

Committee: House Housing

Keywords: common interest communities, restrictions, property rights, homeowners association, community governance, housing finance, affordable housing, housing commission, state agency, financial assistance

Transcript Highlights:

• Without using public funds or lending the credit of the state, the commission can issue non-recourse
• We're not lending the credit of the state in any way.
• So right now in our current statute we are precluded from doing that direct lending.
• that lending, combined with the elimination of the prohibition against the use of public funds.
• without defining what type of borrowers or defining what type of lending or the purpose of that lending

Summary: The Housing Committee held public hearings on two bills. HB 2118 would limit homeowners associations’ ability to adopt or enforce new covenant restrictions on the use of a unit that are more onerous than those in place when the owner bought the property, unless the owner agrees in writing. The sponsor said the bill is meant to protect buyers from having the rug pulled out from under them on things like chickens or renting part of a home. Staff explained the bill’s grandfathering and recording provisions, and that it excludes rules required by law. Testimony was split: supporters emphasized fairness, certainty, and protecting relied-upon uses, while opponents from HOA and management groups argued it would create fragmented enforcement, higher costs, administrative complexity, and conflict within communities, and that existing law and court decisions already address these issues. The committee closed the hearing without taking a vote. HB 2236 would update Washington Housing Finance Commission statutes. The bill would allow the commission to make direct mortgage loans, extend the term of the commission attorney, remove advance notice to the state finance committee before bond issuance, repeal the housing finance program and housing finance plan requirements, and revise the commission’s purpose language. The sponsor and commission said the changes would modernize outdated statutes, improve efficiency, and give the commission more flexibility to use its revenues and financing tools for affordable housing, gap financing, preservation, and starter homes. Committee members asked about the commission’s bond structure, default risk, and the meaning of “public funds,” and the commission said the transactions remain third-party and tax-exempt, with no state credit risk. Banking industry witnesses said they generally support the commission’s mission but wanted clearer limits on direct lending and the use of public funds, and they were working with the commission on amendment language. Committee members expressed support for the collaboration and the goal of increasing housing production. No votes were taken; both hearings were closed and the committee adjourned.

Transcript Highlights:

• I'm the executive director of the Responsible Business Lending Coalition.
• For Responsible Lending, and available for questions and answers.
• For the record, my name is Andrew Kushner from the Center for Responsible Lending.
• For the record, my name is Andrew Kushner from the Center for Responsible Lending.
• Lewis Cated Speck, Responsible Business Lending Coalition, in strong support.

Summary: The Assembly Banking and Finance Committee met to hear several bills focused on consumer and small business financial protections. SB 97, by Senator Grayson, would update and clarify California’s digital financial assets law; supporters from the blockchain industry and consumer groups said it would improve compliance clarity while preserving room to align with possible federal action. The committee passed SB 97 on a due-pass motion to the Privacy and Consumer Protection Committee, with the roll left open for absent members. The committee also heard SB 362, which would strengthen disclosure rules for small business financing by requiring clearer pricing information throughout the marketing process. Supporters said the bill would help small businesses compare offers and avoid harmful financing, while some industry groups objected to the bill’s treatment of communications and APR disclosures during negotiations. After discussion, the committee passed SB 362 to the Judiciary Committee, with several members voting aye and the roll left open. SB 784, a bill addressing predatory home-improvement and solar financing practices, drew extensive testimony. The author and supporters described scams targeting seniors, low-income homeowners, and non-English speakers, and said the bill would add safeguards such as confirmation calls, document access, fee transparency, and longer cancellation periods. Solar industry groups moved to neutral after amendments, while banks and other lenders raised concerns about overbreadth and impacts on legitimate lending. The committee passed SB 784 to Judiciary, with some members not voting or changing votes during the roll call. Finally, SB 825 sought to give the Department of Financial Protection and Innovation clearer authority to enforce existing consumer financial protection laws against its licensees, especially in light of reduced federal CFPB enforcement. Supporters argued California needs independent state enforcement tools, while banking and mortgage groups opposed the bill as duplicative and unnecessary, urging coordination with federal regulators and proposing narrower amendments. The committee passed SB 825 to Appropriations on a due-pass vote, and then adjourned after completing the agenda.

Transcript Highlights:

• have not yet birth practices in Hawaii I have not yet seen<00:18:48.200><c> a</c><00:18:48.400><c> SBA
• 50.240><c> hilot</c><00:18:50.799><c> or</c><00:18:50.960><c> any</c><00:18:51.159><c> Jewish</c> seen a SBA
• Lola hilot or any Jewish seen a SBA Lola hilot or any Jewish julas<00:18:51.880><c> offer</c><00:18:

Committee: Senate Health and Human Services

Summary: The Health and Human Services committee heard extensive testimony on HB 1194 HD2, a bill to regulate midwifery and require accredited education for licensed midwives. Supporters, including the Midwives Alliance of Hawaii, ACOG, a pediatrician, and several licensed midwives, argued the bill would improve maternal and newborn safety, clarify the definition of midwife, strengthen accountability, and align Hawaii with national education standards. They said accredited training is necessary to avoid gaps in knowledge and to support safe transfers and collaboration with hospitals. Opponents, including many midwives, parents, cultural practitioners, and community groups, argued the bill would restrict access to care, criminalize traditional and apprenticeship-based midwifery, and undermine reproductive autonomy and Native Hawaiian and other cultural birthing practices. Several asked for amendments to preserve a birth attendant exemption, the PET/portfolio pathway, and cultural and religious protections. Others said the bill would disproportionately harm rural, Indigenous, and low-income families by making training and licensure less accessible. The committee also heard testimony from state and county entities and professional organizations, with some standing on written testimony and others offering brief comments. The chair repeatedly reminded testifiers of the one-minute limit and the possibility that final decision-making would be deferred if quorum was lost. The transcript does not show a final vote or action taken during this segment.

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
• processes for each of their affiliated lending vehicles.
• vehicles, with the fee paid for the advisor and each... ...their advisor lending vehicles, with the
• By enabling institutional funds to participate more readily in California's commercial lending markets

Summary: The Senate Committee on Banking and Financial Institutions met with an initial lack of quorum, so the hearing began as a subcommittee. The main item heard was SB 972, authored by Senator Grayson, which would modernize California’s licensing rules for non-bank commercial lenders by creating a streamlined umbrella license for SEC-registered investment advisers and their advised lending vehicles. The author and sponsor, LSTA, said the current California Financing Law can cause duplicative licensing, long delays, and reduced access to capital for middle-market and large California businesses, while the bill would preserve DFPI oversight and increase fee revenue. No one testified in opposition, and no registered opposition appeared. After quorum was established, the committee took up the bill and advanced it on a 4-0 vote, with the roll held open for absent members. The committee also later took up the consent calendar, which was adopted on a 6-0 vote after the meeting reconvened. When the committee reconvened with a quorum, it formally adopted the consent calendar and then approved SB 972 on a 6-0 vote with a do pass recommendation to the Senate Judiciary Committee. The meeting then adjourned.

Transcript Highlights:

• While federal oversight previously covered these fair lending obligations, under this administration
• Right now, DFPI has no obligation to conduct fair lending examinations on any schedule.
• In short, it ensures that existing fair lending laws are actually examined.
• Without an examination structure, California's fair lending protections... ...fair lending laws are actually
• . ...Center for Responsible Lending and strong support.

Summary: The committee heard a long agenda of bills, with members repeatedly noting that votes would likely be held later because a quorum was not yet present. Early measures included AB 2393, which would create fixed statutory damages for false arrest or imprisonment claims involving aggravating conduct such as face coverings, restraints, forcible transport, or firearms; supporters said it would help victims obtain accountability, while no opposition appeared. AB 2050, the HOA reserve-funding bill, drew support from HOA and housing finance advocates who said underfunded reserves lead to special assessments and safety risks, while consumer groups warned of large cost increases; Senator Laird said he would move it when a quorum was available. AB 1564, making employee-union communications confidential in certain public-employment disputes, was supported by labor groups and opposed by counties, school administrators, and other local agencies who argued it would hinder investigations. AB 2231, a CEQA streamlining bill for two Sutter Health hospital projects, was backed by the author and health-care supporters but opposed by a construction trade group that said it would strip workers of wage-and-hour remedies. The committee also heard AB 2689, which would allow non-renewal of subsidized housing leases for over-income tenants under specified conditions; there was little testimony beyond the author’s presentation. AB 801 would require the Department of Financial Protection and Innovation to regularly examine lenders for fair lending compliance; supporters framed it as a response to federal retreat from consumer protection, while credit unions and bankers said they shared the goal but wanted more work on impacts to smaller institutions. AB 2721, as amended, would require hotels to post notice when they have actual knowledge of ICE or CBP reservations; hospitality workers and labor supporters said it would improve worker safety, while hotel industry groups said they were moving toward neutral after amendments, though some owners remained opposed. AB 2035 would create a narrow, court-supervised alternative vote threshold for a single HOA, Laguna Woods Village, to amend outdated CC&Rs; the author and HOA representatives said the change was needed because repeated elections had failed to reach quorum. Later bills included AB 1827, which would raise the small-claims limit for businesses from $6,250 to $15,000 and allow up to three filings per year; supporters said it would modernize access for small businesses, while the Judicial Council opposed it as likely to crowd calendars and shift small claims away from its intended purpose. AB 1577 would require data centers to report energy-use information to the Energy Commission and local agencies; supporters said better data is needed for grid planning, while one industry group remained opposed in print but encouraged by amendments. AB 2164 and AB 1854 both expanded California shield-law protections for reproductive and gender-affirming care providers and related entities against out-of-state legal actions and extradition requests; supporters said the bills were needed to protect providers and patients after Dobbs, while opponents argued they would shield harmful medical practices and interfere with parental rights and other states’ investigations. AB 2529 would require claims against public agencies to include a declaration that the contents are true and correct, and AB 2247 would create the Thrive Act to fund trauma-focused mental health services for youth affected by gun violence; both drew support from local agencies or survivors, with no significant opposition recorded in the excerpt. The final bill discussed, AB 1821, would change Public Records Act response timelines from calendar days to business days to address large, complex, or bad-faith requests; the author said it would better match agency work capacity while preserving access, and the hearing continued with testimony as the transcript ended.

Transcript Highlights:

• That's how we get the EDA, the SBA, the... you name it. I could go off on acronyms.
• That's how we get the EDA, the SBA, the... you name it. I could go off on acronyms.
• That's how we get the EDA, the SBA, the... you name it. I could go off on acronyms.
• That's how we get the EDA, the SBA, the... you name it. I could go off on acronyms.
• That's how we get the EDA, the SBA, the... you name it. I could go off on acronyms.

Committee: Senate Executive Departments and Administration

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:

• 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:

• 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:

• the overview about BNPL, kind of a product adjacent to DFI's main area of responsibility, which is lending
• similar in its mechanisms, its tactical utilization, between earned wage access tools and payday lending
• They're kind of product-specific, and some of the BNPL providers have consumer loan lending licenses
• I'm a senior policy counsel at the Center for Responsible Lending.
• We go through lending companies.

Summary: The Consumer Protection and Business Committee held a work session on buy now, pay later (BNPL) transactions, focusing on how the products work, how they are used in Washington, and whether existing state law adequately protects consumers. Department of Financial Institutions staff described BNPL as short-term, usually no-interest installment financing offered at checkout, often with automatic payments, late fees, and varying credit-reporting practices. Members asked how BNPL compares with payday lending and earned wage access, whether it is effectively a loan or credit product, and whether Washington law already covers it. DFI explained that some BNPL structures may fall into a legal gray area under the Retail Installment Sales of Goods and Services Act because pay-in-four products may not meet the statute’s “more than four installments” language, while other structures may be covered; they also noted the Attorney General can enforce the act. DFI and committee members discussed consumer risks such as overextension, automatic debits, and lack of standardized disclosures, and DFI said it would follow up with additional data on defaults and related issues. Molly Gallagher of the Poverty Action Network and Nadine Chabrier of the Center for Responsible Lending argued that BNPL can help consumers but also poses significant risks, especially for lower-income consumers and consumers of color who already carry debt or use other alternative financial products. They said BNPL use has grown rapidly, often involves multiple simultaneous loans across providers, and can lead to overdrafts, late fees, and difficulty tracking obligations because payments are spread across different schedules. They emphasized concerns about weak disclosures, limited dispute protections, automatic payment structures, credit reporting inconsistencies, consumer overextension, and data privacy/dark-pattern marketing. They also described federal retrenchment, including the CFPB’s withdrawal of an interpretive rule that would have treated BNPL like a digital credit card, and pointed to state responses in places like New York, California, and Maryland. Committee members signaled interest in possible Washington legislation and stronger state oversight. Retail and business witnesses offered a more favorable view of BNPL as a cash-flow and sales tool. A Washington Retail Association representative described BNPL as an evolution of layaway and credit-card-style installment purchasing, noting that merchants receive payment up front minus fees while consumers get goods or services immediately and repay over time. A representative from a business using deferred-payment financing said the tool helps customers obtain equipment and helps the business manage inventory and cash flow, while NFIB said small businesses also use BNPL to bridge expenses and avoid higher-interest credit card debt. Members asked about merchant fees, consumer education, and whether BNPL is being used for impulse purchases or essential expenses like rent, car repairs, medical care, and travel. The chair concluded by saying the committee intends to pursue regulatory language and continue working with stakeholders, while also hearing from retailers to avoid eliminating legitimate financing tools.

Transcript Highlights:

• about BNPL is that it's kind of a product adjacent to DFI's main area of responsibility, which is lending
• They're kind of product-specific, and some of the BNPL providers have consumer loan lending licenses
• Providers have consumer loan lending licenses with us.
• I’m a senior policy counsel at the Center for Responsible Lending.
• We go through lending companies.

Committee: House Consumer Protection & Business