Transcript Highlights:

• They would still pay payroll taxes, and many will continue paying federal taxes on portions of their
• They would still pay payroll taxes, and many will continue paying federal taxes on portions of their
• We delivered no tax on tips as well as overtime. No taxes on overtime.
• It eliminates taxes on tips and overtime.
• No tax on overtime.

Summary: The House convened, opened with prayer and the Pledge, approved the journal, and welcomed several guests in the gallery, including a high school student and an advocate connected to the domestic violence bill HB 2995. The chamber then moved through multiple Committee of the Whole calendars, first advancing HB 4155, HB 4156, and HB 4157, then HB 4164, HB 4165, and HB 4166, all with do-pass recommendations and no substantive amendments on those calendars. Later, the House also considered SB 1326, a victims’ rights measure, adopted a floor amendment, and reported it out as amended. The House corrected an earlier clerical error regarding HB 4155-4157 being referred to engrossing rather than third reading. The House then took up a long series of final passage votes on Senate bills. SB 2174, SB 2611, SB 1011, SB 1012, SB 1016, SB 1018, SB 1038, SB 1039, SB 1040, SB 1053, SB 1055, SB 1057, SB 1060, SB 1061, SB 1068, SB 1069, SB 1075, SB 1100, SB 1113 on reconsideration, SB 1160, and SB 1170 all passed. SB 2873, SB 1004, SB 1009, SB 1042, SB 1043, SB 1049, SB 1093, and SB 1143 failed. SB 2995, the emergency family-law/domestic-violence bill known as the Alec and Lydia Act, passed with the required two-thirds vote after extensive debate; supporters said it would better protect children and clarify judicial standards, while opponents argued its definitions were overly broad and could harm families. SB 1018 on foreign laws also drew extended debate over Sharia law, with supporters framing it as a defense of American values and opponents calling it unnecessary and discriminatory. Several votes included explanations focused on policy concerns. SB 1004 on sex-offender registration and monitoring drew debate over whether electronic monitoring is effective. SB 1040 on voter registration transparency prompted arguments over public access to voter rolls versus privacy and security. SB 1118 on municipal zoning and historical homes was debated as a property-rights and local-control issue, with supporters saying it could help preserve affordable housing and opponents warning it would override local decisions. The House also adopted motions to reconsider prior actions on SB 1043 and SB 1100, and it requested the Senate return SB 1552 for reconsideration. The session ended with the House still processing additional Committee of the Whole business, including HB 4158, HB 4159, HB 4160, HB 4161, HB 4162, and HB 4163, with HB 4162 and HB 4163 receiving floor amendments and do-pass recommendations.

Transcript Highlights:

• , 25% pay for overtime, and $50,000 bonuses for signing.
• bringing to the table, including um lots bringing to the table, including um lots of<00:10:09.279><c> pay
• ,</c><00:10:09.600><c> 25%</c><00:10:10.399><c> pay</c><00:10:10.640><c> for</c><00:10:10.880><c> for
• </c><00:10:11.680><c> overtime</c><00:10:12.560><c> and</c> of pay, 25% pay for for overtime and of pay
• , 25% pay for for overtime and $50,000<00:10:13.920><c> bonuses</c><00:10:14.560><c> for</c><00:10:14.880

Committee: Senate Labor and Technology

Summary: The joint committees on Labor and Technology and Public Safety and Military Affairs heard testimony on several measures. SB 3082, relating to military families and leave protections, drew support from the Department of Labor and Industrial Relations, the military community relations office, the Hawaii National Guard, and the U.S. Department of Defense, all of whom said the bill would align state law with federal standards and better account for military-related leave needs. SB 3110, relating to the Hawaii National Guard, was supported by Department of Defense witnesses who said it clarifies that employees of the Guard’s youth and adult educational programs are excluded from collective bargaining. The committees also heard SB 3251, which would prohibit certain state law enforcement agencies from hiring former ICE or Border Patrol agents as law enforcement officers. The main testimony in support argued the bill could help prevent local police staffing losses to higher-paying federal agencies and avoid future workforce instability if federal funding changes. The measure drew significant public testimony, with the chair noting 62 testimonies in support, five in opposition, and three comments. Members discussed the bill’s impact on recruitment and retention, and one member voted with reservations while another voted no. Later, the committees heard SB 3095 and SB 3264, both concerning Hawaii Employer-Union Health Benefits Trust Fund salaries. EUTF testified in support of SB 3095, which would allow the board to set salaries for investment office staff, and SB 3264, which would authorize the board to set the salary for an assistant administrator. After testimony, the committees moved into decision-making and passed SB 3082, SB 3110, SB 3251, SB 3095, and SB 3264 with amendments, generally including technical changes and revised effective dates of January 1, 2077 for the EUTF salary bills and SB 3082.

Transcript Highlights:

• </c> put on it that would require overtime put on it that would require overtime off<00:32:43.279><c>
• </c><00:36:45.400><c> a</c> if I pay a if I pay a $545 $545 $545 fee<00:36:48.920><c> because</c><00:
• </c><00:37:32.760><c> and</c> considered if I was working overtime and considered if I was working overtime
• But I ended up paying a couple of thousand dollars in fees on just adding a bedroom.
• paying amount that some millionaire is paying for<00:53:17.640><c> their</c><00:53:17.839><c> sweet</

Committee: Senate Labor

Transcript Highlights:

• So you have a base pay and then you have extras from overtime and special duty and things like that,
• </c><00:11:46.240><c> And</c> overtime. Overtime is the main one. And overtime.
• </c> pay for this through class 64. pay for this through class 64.
• back funds, or paying funds, are paying back funds or paying funds, and it's not a big number.
• pay, right?

Summary: The committee reviewed a handout comparing House Bill 2 to current retirement law and walked through the bill section by section with staff from the retirement system. The discussion focused on vesting, earnable compensation, average final compensation, compensation-over-base limits, special duty pay, normal retirement age, re-retirement, and maximum benefit rules for Group 2/Tier B members. Staff explained that some provisions would restore pre-2011 rules, including counting certain end-of-career payments such as unused sick and vacation time in earnable compensation and reducing the AFC averaging period from five years back to three. They also described how the bill would eliminate the current cap on compensation over base, which mainly affects overtime, and noted that the actuarial cost of the AFC-related changes is interrelated rather than easily broken out by feature. A separate discussion covered the special duty pay limitation, which currently applies to Tier A and would be removed under the governor’s bill for both Tier A and Tier B members after their vested buy date. Staff said the actuary estimated that removing the special duty limitation would increase costs by about $13.9 million. Members also asked about the practical difference between overtime and special duty, with staff explaining that special duty generally involves work for a private third party, often police detail work, while overtime depends more on staffing and scheduling. The committee also reviewed the normal retirement age changes for Tier B and the possibility that some members would need to work longer to reach the new vested buy date. Members raised concerns about an ambiguity in the bill that could allow already-retired Tier B members to return to work, then re-retire and claim the higher benefits, or allow vested deferred members to stop working and wait for the new vested buy date. Staff said the governor’s office did not intend to allow that result and requested clarifying language, noting that the bill as drafted does not expressly prohibit it. The committee also discussed part-time and seasonal work after retirement, with staff explaining that such work generally does not restore membership unless the person takes a full-time position requiring enrollment. Finally, the committee reviewed the maximum benefit provisions and noted that HB 2 in the current year does not change the maximum benefit date or include the 1.5% annual escalator that had been part of the 2023 proposal, making the current bill more costly than the earlier version.

Transcript Highlights:

• THAT YOU ALL HAVE FUNDED FROM THE DEPARTMENT OF CORRECTIONS THE LAST COUPLE OF YEARS PUTTING ASIDE PAY
• WE FUNDED RESIDENTIAL CAPACITY EXPANSION AND WE FOCUS A LOT ON CONTRACTED STAFF PAY INCREASES SO FOR
• THE BILL PAYING.
• THAT GAVE US A RELIEF VALVE AND SOME OF THAT STAFF WORKS TREMENDOUS OVERTIME AND KIND OF RECOVERED.
• HIRING IS DIFFICULT BECAUSE OF THE PAY AND YOU PROVIDED PAY RAISES SO WE ARE NORTH OF 50,000 NOW FOR

Transcript Highlights:

• so um and um 127 maybe we're paying so um and um 127 maybe we're paying people<01:50:33.840><c> a</c>
• </c> the point is we could delete this pay the point is we could delete this pay some<04:31:19.159><c
• Agencies pay fines to the IRS for that, and it's not clear where you pay them out of, right?
• So it's either a pay now or pay later kind of a situation.
• now or pay later kind of a situation pay now or pay later kind of a situation and<05:22:12.958><c> I

Summary: The committee met to continue work on House Bill 2, with the chair saying the goal was to finish the bill as given by the governor, though additional amendments were expected. Members first discussed the bail section and agreed to hold it for later because a separate House bail bill was expected on Thursday and could have significant county cost impacts. They also generally accepted the proposed reorganization of positions between Fish and Game, DNCR, and the Department of Environmental Services, but noted the need to review effective dates and funding details, including a possible double appropriation of $275,000 for a scientist position already funded in HB 1. A substantial portion of the meeting focused on environmental review and native plant-related sections moving functions from DNCR to DES. Members discussed changing the rulemaking timeline from 180 days to 90 days, and clarifying that “begin” means the public hearing stage. They also reviewed how fee revenue would shift between agencies in HB 1 so the budget impact would be net zero. The committee indicated it would prepare amendments reflecting these changes and revisit them at a later vote. The longest discussion concerned the boathouse provisions. Members debated whether the new definitions and construction standards were appropriate in a budget bill, with one member arguing they should be in a separate bill, while others said the provisions were urgent because of a lawsuit and the lack of clear guardrails. Concerns included the February 20, 2025 effective date, which some thought might be retroactive, the detailed limits on what may be stored in a boathouse, and a fee increase that some felt could discourage homeowners from seeking permits. The committee also questioned whether the fee structure should be tiered for smaller projects and whether permit-by-notification projects should be exempted. No final votes were taken on these sections during the discussion; instead, members agreed to seek legal and policy answers and to return with amendments and public hearing input before voting.

Transcript Highlights:

• They would still pay payroll taxes, and many will continue paying federal taxes on portions of their
• We delivered no tax on tips as well as overtime. No taxes on overtime.
• because that $39 trillion debt that we owe, we're not going to pay it.
• It eliminates taxes on tips and overtime.
• No tax on overtime.

Transcript Highlights:

• overtime, and uh not paying employment taxes.
• overtime, and uh not paying employment taxes.
• overtime, and uh not paying employment taxes.
• overtime, and uh not paying employment taxes.
• </c><00:07:58.160><c> for</c> related to temporary hazard pay for related to temporary hazard pay for

Committee: Senate Labor and Technology

Summary: The Committee on Labor and Technology heard testimony on several measures. SB 2198 would direct DLIR to study a Hawaii Workforce Excellence Award program and report back to the Legislature; DLIR supported it so long as it did not affect its supplemental budget request. SB 2140 would authorize counties to require contractors to disclose wage, benefit, hour, and employment-status information and to deny or suspend permits for certain labor-law violations; DLIR and labor representatives supported it as an added accountability tool, while the committee discussed whether state law alone was sufficient and whether counties would still need to pass their own ordinances. SB 3055 would prohibit falsely impersonating a union representative; union and labor groups strongly supported it, and UPW said it was open to amendments to address concerns raised by OPA. SB 3090, SB 3091, and SB 3092 were emergency appropriation bills for public employment cost items tied to collective bargaining and temporary hazard pay or salary adjustments for various bargaining units; agencies and unions generally supported moving them forward, and B&F said the amounts were still being finalized because negotiations were ongoing. The committee also heard SB 2761, which would bar social media platforms from allowing users under 16 to create or maintain accounts if the platform knows the user is under 16. DCCA’s Office of Consumer Protection offered comments, while CCIA and Meta opposed the bill, raising constitutional and First Amendment concerns and arguing that blanket bans could push teens to less regulated spaces online. Meta also said the bill’s carveouts were too narrow and would leave major platforms outside the scope of the restriction. In decision-making, the committee recommended passage of SB 2198 with amendments, SB 2140 as is, SB 3055 with amendments adding a specific intent-to-deceive standard, SB 3090 with amendments, SB 3091 with amendments, SB 3092 with amendments, and SB 2761 with amendments adopting DCCA’s changes and noting potential First Amendment issues in the committee report. For the appropriation bills, the committee changed the effective date to January 1, 2077 as a placeholder. All recommendations were adopted, with reservations noted on SB 2761 from Senators Moriwaki, Fevella, and Ihara.

Transcript Highlights:

• within the 24 hours we're paying overtime<02:33:02.040><c> for</c><02:33:02.279><c> them</c><02:33:02.560
• they have to stay and cost overtime they have to stay and cost overtime<02:34:21.479><c> and</c><02:
• 02:35:12.439><c> an</c> department has to pay them um that's an department has to pay them um that's
• And, like I said, if it's a true emergent call, we're absolutely going to pay the overtime.
• And, like I said, if it's a true emergent call, we're absolutely going to pay the overtime.

Committee: House Criminal Justice and Public Safety

Transcript Highlights:

• If you're not doing it right, you should be the one paying the money.
• Who would pay? How would we get those to the firefighters? Who would pay for that?
• Who would pay, how would we get those to the firefighters? Who would pay for that?
• The goal really was to pay customers faster within our current means and resources.
• And it's also improving our first-pay timeliness.

Summary: The committee heard a report on the Underground Economy Task Force in Washington’s construction industry. Labor and Industries said the task force, created by a 2024 budget proviso, met 11 times and developed consensus recommendations to improve enforcement against worker misclassification, unregistered contractors, and unpaid taxes and premiums. Consensus items included defining and regulating construction labor providers, improving interagency data sharing, increasing penalties for repeat offenders, expanding L&I authority over successor accountability, reviewing agency penalty rules, and exploring tracking of cash payments. Majority-but-not-consensus ideas included posting subcontractor notices at job sites, setting an independent-contractor threshold that would trigger L&I review, holding direct contractors liable for unpaid wages owed by subcontractors, and reviewing reporting requirements. Testifiers from labor, business, and the Attorney General’s Office generally supported stronger enforcement and transparency, while business representatives cautioned against overregulation and said any new rules should avoid burdening legitimate contractors or restricting lawful cash payments and independent contracting. L&I said the final report would be distributed by December 31 and the task force work group would be reconvened. The committee then reviewed the wage recovery work group report. L&I explained current wage complaint procedures and said the work group, made up of labor and business representatives, reached five consensus recommendations: allow L&I to prioritize wage complaints strategically, permit aggregation of related complaints, raise the minimum penalty under the Wage Payment Act from $1,000 to $1,500 and create a penalty matrix, improve employer awareness with materials for new hires, and establish a wage recovery fund. The fund would be seeded by penalties, would not require new employer assessments, and would allow limited early payments to eligible workers facing hardship, with a proposed cap of $2,500 and a later review of the program. Business and labor representatives both supported the overall framework, though business raised concerns about fraud safeguards and recovery of funds if a claim is later found invalid. Members also received an overview of Washington’s apprenticeship system. L&I described the state’s apprenticeship agency structure, the Washington State Apprenticeship and Training Council, and the difference between Washington’s state apprenticeship standards and the federal Office of Apprenticeship system. The presentation highlighted current participation levels, program approval and objection processes, and strong post-completion outcomes, including median annual earnings above $100,000 and an estimated $7.80 return for every public dollar invested. Committee members asked about how apprentices apply, how sponsors work with L&I, and whether recurring objections could be addressed earlier in the process. Finally, the committee heard updates on wildland firefighter respiratory protection, federal cuts to NIOSH, and economic and federal policy impacts on unemployment insurance and workforce services. L&I said wildland firefighters face significant smoke exposure and cancer risk, but current rules do not require respiratory protection for that work because of technical and operational challenges; the agency is watching efforts in other jurisdictions and at the federal level. On NIOSH, L&I warned that federal staffing and grant cuts could weaken occupational safety research, training pipelines, and programs affecting Washington workers, including firefighter cancer tracking and Hanford exposure assessments. ESD reported rising UI claims, a stable unemployment rate, and pressure on the trust fund, while also describing technology and process changes that have improved claims handling. ESD also said HR1 will significantly increase demand on WorkSource services through new work-search requirements for SNAP and Medicaid recipients, creating an unfunded mandate that the agency is preparing to implement with partner agencies.

Transcript Highlights:

• There wasn't a loss pay. pay. pay.
• </c><00:31:54.720><c> or</c><00:31:54.880><c> pay</c> other employee benefit pay or pay other employee
• Not to mention the cost of paying overtime. Our employees are paid very well.
• </c><01:03:12.800><c> Our</c> mention the cost of paying overtime.
• Our mention the cost of paying overtime.

Bills: HF4110 , HF2113 , HF4569 , HF4414

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

Transcript Highlights:

• can pay less in taxes.
• can pay less in taxes.
• No tax on overtime. Over 25 million filers have claimed this new deduction on overtime pay.
• I get the rhetoric, and I get saying that people should pay their fair share, pay their way, whatever
• of gas, to pay the rent, to pay for their health care.

Summary: The Senate convened with prayer, the Pledge of Allegiance, roll call, and several guest recognitions, including a student honored for a national Mandarin speech contest, a Ms. Black Arizona candidate, and a Madison Elementary School reusable-tray pilot program. The body also recognized interns and approved the prior journal. The chamber then moved through Committee of the Whole calendars and adopted committee reports recommending passage of a series of budget-related bills. The main legislative business centered on the 2026-27 budget package and related omnibus measures, including appropriations, budget implementation, capital outlay, commerce, criminal justice, environment, health care, higher education, human services, K-12 education, state property, revenue/taxation, and transportation bills. Most of these measures were advanced with do-pass recommendations, with repeated debate focused on the tax omnibus and the overall budget’s policy choices. Supporters argued the package provided affordability, tax relief, conformity with federal tax changes, reduced government spending, and reforms to entitlement and other programs; opponents argued it favored corporations and wealthy taxpayers, cut health care, food assistance, housing, tourism, wildfire response, and education, and would forfeit federal matching funds. Several members specifically criticized the failure to close the data center tax exemption and to raise sports betting taxes, while supporters defended those provisions as pro-business and pro-growth. There was also discussion of fund sweeps, including university research funds, housing trust funds, and other agency balances, with opponents saying the sweeps targeted encumbered or already-committed money. After debate, the Senate adopted Committee of the Whole reports and advanced the bills, and later took up House bills introduced and placed on third reading, with members explaining their votes on HB 4138, the General Appropriations Act, largely along party lines. At the end of the session, the Senate processed messages from the House requesting the return of SB 1160 and SB 1786 for reconsideration, and the Senate requested the House return HB 2415 for reconsideration. The chamber also introduced and placed several House budget bills on third reading, including HB 4138 through HB 4153, continuing the budget process.

Transcript Highlights:

• How does the producer... ...do they pay the state a tax on that gas that goes into a pipeline?
• Same with tip income exclusion, the exclusion for overtime pay, and the new deduction for certain auto
• So the overtime pay is probably the more meaningful one. For certain auto loan interest.
• So the overtime pay is probably the more meaningful one that we anticipated.
• The overtime pay, a bit of a surprise there.

Summary: The Budget Section Leadership Division met with a quorum and approved the March 18 minutes. The committee first heard an update from the Petroleum Council on oil and gas activity in North Dakota. Ron Ness said production is expected to remain relatively flat at just under 1.2 million barrels per day, with efficiency gains and longer laterals helping offset lower rig counts. He discussed oil and gas prices, gas taxation, flaring concerns, northward movement of drilling activity, and the importance of new infrastructure and enhanced oil recovery (EOR) pilots. Members asked about gas taxation, natural gas liquids, pipeline impacts, and the outlook for Continental and other operators. Ness said the industry is likely to remain steady rather than see a major ramp-up or decline. Matt Pearl of the State Tax Department then explained the federal “big beautiful bill” and its effect on North Dakota income tax collections. He said the law extends or makes permanent several federal provisions and creates temporary deductions for seniors, tips, overtime, and auto loan interest, with the biggest state impact coming from the standard deduction increase and business tax changes. He revised earlier estimates downward, saying the net cash impact on state collections is likely in the $30 million to $35 million range after accounting for business prepayments and one-time FY25 oilfield transaction effects. Committee members asked which provisions apply to standard versus itemized returns. OMB staff gave a detailed update on major capital projects and facility funding. Topics included Capitol grounds improvements such as 18th-floor renovations, wayfinding, seating, lighting, tree management, and restroom and lobby upgrades; security work at the governor’s residence, which has been delayed by the discovery of human remains; and space reconfiguration efforts in Bismarck-Mandan to reduce leases and create shared offices and conference rooms. They also reported on the State Facility Maintenance Fund, including roof, window, boiler, and kitchen projects at state facilities, and on the state hospital project in Jamestown, which remains on budget and on schedule for substantial completion in winter 2027 and opening in spring 2028. OMB also updated the committee on the Minot North Central State Office Building, the use of federal State Fiscal Recovery Funds, and the status of legislative intent and trust fund reports, including school aid turnback, the school construction loan program, the Foundation Aid Stabilization Fund, the Legacy Fund, and the Strategic Investment and Improvements Fund. The committee ended by discussing future agenda items, including government efficiency, cash management, Bank of North Dakota lines of credit, and the rural health transformation program, and then adjourned.

Transcript Highlights:

• All we knew at that time is that they were not going to pay us.
• All we know that they were going to pay.
• And so, we joined a going to pay us.
• But otherwise, it would go to their normal self-pay statement.
• So first you have a self-pay expectation to pay, or if you've met with a counselor and we can determine

Committee: House Taxes

Transcript Highlights:

• Pay rates. So we share our pay rates. We're proud of them.
• Pay rates. So we share our pay rates. We're proud of them.
• :27.200><c> the</c><00:43:27.280><c> bottom</c> know, there's overtime on the bottom know, there's overtime
• overtime for over 40 hours in a week.
• And so are not paying state local taxes.

Summary: The committee met on October 23, 2025, approved the September minutes, and heard testimony on a proposed “Kentucky by America” procurement preference bill. Representative Patrick Flannery described the concept as giving preference in public construction and public works contracts to iron, steel, aluminum, and other manufactured goods made in the United States, while emphasizing he wanted to avoid excessive taxpayer costs and was open to changes. Chad Connley of the United Steelworkers and Dustin Reinsteller of the Kentucky State AFL-CIO supported the idea, arguing it would strengthen domestic manufacturing, keep tax dollars in the local economy, and support jobs; Connley said the bill would include waivers for items not made domestically and noted Kentucky has opted out of the GPA trade agreement. Mike Buckington of Metals Innovation Initiative, testifying virtually, also supported the concept and said Kentucky’s metals sector has seen significant investment and can supply most construction needs, while stressing supply-chain reliability and national security concerns. Members generally expressed support but raised questions about implementation. Representative Branscum asked who would grant waivers and how contractors would know the rules during bidding; Flannery said he was open to revising the language and process. Representative Gentry supported the concept but said the bill would likely need editing to avoid harming businesses or markets. Senator Nun suggested aligning the bill’s definition of a U.S. good with industry country-of-origin standards to make compliance easier. Representative KC Carney asked for data on the impact of similar laws in other states, and Connley said he could provide numbers later but did not have them on hand. Senator Boswell supported the concept and asked about the cost threshold for waivers; Connley said the federal standard is a 25% cost increase, while the prior Kentucky version used 10%, and that the threshold is a key detail. The committee then shifted to an informational presentation on building trade apprenticeships. Eric Elie of the Kentucky State Pipe Trades Association, Nick Brown of Plumbers and Pipefitters Local 502, and retired IBEW training director Steve Willinghurst explained how union apprenticeship programs work. Brown described earn-while-you-learn training, with apprentices placed on jobs by signatory contractors and attending classes two nights a week for five years. He outlined the work of plumbers, pipefitters, welders, and HVACR technicians, emphasizing that these trades support construction, industrial facilities, distilleries, and other critical infrastructure. No votes or formal actions were taken on the policy topics beyond approval of the prior minutes.

Transcript Highlights:

• And I got into college, but we didn't have the means to pay for college.
• Then they have overtime cost of $259. So we'll start with Washington Dairy.
• Then they have overtime cost of $259. $147 a head. Then they have overtime cost of $259 a head.
• So those were the challenges. to actually pay the owners.
• It can be things like complying with minimum wage and required overtime.

Summary: The House Agriculture and Natural Resources Committee held an interim work session focused on Washington agriculture’s viability, workforce, and competitiveness. Director Derek Sanderson of the Washington State Department of Agriculture and WSU Dean Raj Kosla described the size and diversity of the state’s farm sector, declining farm numbers, major export markets, and pressures from labor costs, low commodity prices, trade barriers, drought, regulatory burdens, and pests and disease. Kosla emphasized WSU’s land-grant role in education, research, and extension, including precision agriculture, broadband needs in rural areas, and the need for state support to help producers adopt new technologies and train the next generation of agricultural workers. Members asked about retaining farmland, increasing workforce capacity, and the role of precision agriculture. Kosla said precision agriculture can help address labor shortages and water scarcity, but adoption is limited by cost and rural broadband gaps. He explained precision agriculture as tailoring inputs to the right place, time, amount, and manner, and said WSU is working on low-cost sensor technologies and other innovations. Members also asked about how widely precision agriculture is used and whether it improves farm bottom lines; Kosla said adoption varies by tool and that he would follow up with more data. The committee then heard from Dr. Randy Fortenberry of WSU’s Impact Center on an agricultural competitiveness study and the effects of tariffs and trade. He reported that Washington’s competitiveness has generally declined relative to peer states in dairy, grapes, hops, apples, and wheat, with potatoes as the main bright spot. Surveyed producers said a substantial share of revenue is tied to regulatory compliance, with labor-related costs a major driver, and small diversified farms reported land access, capital, and profitability as bigger barriers than regulation. On trade, Fortenberry said Washington agriculture is highly export-dependent and vulnerable to retaliation, citing past losses in wheat, apples, pulses, and cherries when tariffs disrupted markets, while noting current uncertainty around China and India. The committee asked follow-up questions about compliance time, peer-state comparisons, and regulatory burdens; no votes were taken, and the department said it plans an interim report by the end of the year and a final report by June 2026.

Transcript Highlights:

• They work, it's a 9 day deployment, so they get 2 days of 24 hours of straight overtime.
• Similar to the TMD, we went to a voluntary system because we had certain individuals that wanted more overtime
• They wanted the overtime, but their family life - no kids, single, whatever, or empty nesters, they wanted
• more from within regions so that the numbers are down, and we actually have employees that want the overtime
• A depot because when they cross into Mexico they're going to pay the cartel $5000 a load.

Committee: Senate Border Security

Summary: The Senate Committee on Border Security held its first hearing of the 89th legislative session, established a quorum, welcomed new and returning members, and adopted the committee rules without objection. The chair said the hearing would be limited to invited state agency witnesses and was intended as a status update for new members on current border operations, especially in light of the change in federal administration. Testimony came from the Office of the Attorney General, Texas Department of Public Safety, and the Texas Military Department. The Attorney General’s representative said border-related litigation is largely in a holding pattern while the new U.S. Department of Justice awaits additional leadership, and noted prior cases involving concertina wire, buoys, and the CBP One app. DPS described Operation Lone Star’s evolution from filling gaps when Border Patrol was overwhelmed to current operations focused on interdiction, criminal arrests, fentanyl and meth seizures, and national security concerns, while also noting improved morale and more voluntary deployments as border pressure has eased. The Texas Military Department reported more than 5,000 personnel on state active duty, extensive use of barriers, drones, boats, and rapid-response forces, and said Operation Lone Star has resulted in more than 531,000 apprehensions and a 90% reduction in illegal crossings. Members and witnesses discussed whether the state should maintain its current border-security footprint while federal policy settles, with the chair emphasizing preserving institutional knowledge and leaving tactical decisions to the governor. Questions also covered trooper fatigue, Border Patrol training under SB 602, and concerns about cartel-driven commercial trucking and fuel depots near the border. The committee heard that Border Patrol training with DPS has resumed, and the chair asked agencies to keep the Legislature informed as legal and operational circumstances change. No bills were heard and no votes were taken beyond adopting the committee rules.

Transcript Highlights:

• things like paying less than the minimum wage, requiring or allowing work off the clock without pay,
• not paying time and a half for overtime, not paying earned tips, making unlawful deductions from paychecks
• the clock without pay uh not paying<00:20:40.360><c> um</c><00:20:40.679><c> time</c><00:20:40.919><c
• </c> paying um time and a half for overtime paying um time and a half for overtime not<00:20:43.000><
• Paul's largest landowner for a scheme to avoid paying overtime to security officers using subsidiaries

Committee: House Commerce Finance and Policy

Transcript Highlights:

• It may cause them to go into overtime issues.
• It may cause them to go into overtime issues.
• It may cause them to go into overtime issues.
• It may cause them to go into overtime issues.
• Um, the two and three pays.

Committee: Senate Finance

Transcript Highlights:

• The House getting pay raises.
• A young person pays $5...
• If we can pay for it without cutting teachers' pay, without taking lunch away from children in school
• How to pay for it? I'm good.
• How to pay for it?

Summary: The joint House Ways and Means and Senate Finance committees met to hear identical conformity bills, HB 2153 and SB 1106, which would align Arizona tax law with the federal Internal Revenue Code as of Jan. 1, 2026, including some retroactive provisions for tax year 2025. Staff explained that the bills would exclude three federal provisions: the higher federal SALT deduction, the new senior deduction as written in H.R. 1, and the deduction for interest on new car loans. They would instead include a $6,000 retirement-income deduction for taxpayers age 60 and older, a $6,000 Roth IRA contribution deduction, a higher dependent tax credit, and a deduction for child and dependent care expenses above the federal credit. JLBC estimated the package would reduce general fund income tax revenue by about $441.3 million in FY 2026. Members also discussed that the Department of Revenue’s forms had been issued assuming full conformity, and staff and supporters argued the bills were needed quickly to avoid confusion and amended returns during filing season. Committee members and sponsors largely framed the bills as tax relief and a way to provide certainty for taxpayers and preparers. Supporters said the package would help families, seniors, and workers, and noted that the Arizona version was negotiated to keep the overall tax relief roughly comparable to full conformity while shifting benefits away from the SALT deduction and toward child credits, retirement income, and child care. The sponsors also criticized the governor’s executive action and urged prompt passage so taxpayers would know how to file. Opponents argued the bills would reduce state revenue, worsen the budget outlook, and disproportionately benefit higher-income taxpayers and corporations. Several witnesses and members also raised concerns about the child care deduction, the retirement-income deduction, and the business expensing provisions, while supporters responded that the bill was designed to help working families and encourage saving and investment. Public testimony was mixed. The Arizona Society of Certified Public Accountants and the Arizona Free Enterprise Club supported the bills, emphasizing early conformity, filing certainty, and reduced confusion for taxpayers and software providers. Opponents included Save Our Schools Arizona, the Arizona Center for Economic Progress, Opportunity Arizona, and several individuals, who argued the package would deepen budget problems and favor the wealthy. One witness objected to a federal school-choice-related provision she said was being tied to the bill, though committee members said the measure before them was a tax conformity bill and not a school finance bill. The hearing included extended debate over the fiscal impact, the governor’s prior requests for some of the same tax changes, and whether taxpayers would need to file amended returns if the legislature later changed course. The transcript ends during testimony from NFIB, with no final committee vote or action shown in the excerpt.