Transcript Highlights:

• fire marshal to delegate authority to administer and enforce county fire codes to a municipality or ESD
• Under current law, emergency services districts or ESDs as they're commonly known, adopt a $2,000 spending
• Senate Bill 2778 allows ESD boards to raise that threshold to any amount under $50,000, giving them the
• Each ESD board can choose a new limit such as 10,000 or 20,000 and adjust it in any time during a public
• Senate Bill 2778 mirrors this framework to bring ESD in line with similar public entities.

Bills: SB66, SB317, SB393, SB397, SB456, SB614, SB628, SB629, SB636, SB715, SB731, SB801, SB872, SB905, SB986, SB1012, SB1013, SB1015, SB1032, SB1113, SB1181, SB1212, SB1241, SB1250, SB1278, SB1285, SB1376, SB1444, SB1449, SB1524, SB1525, SB1528, SB1556, SB1588, SB1660, SB1704, SB1708, SB1802, SB1833, SB1844, SB1854, SB1863, SB1957, SB1959, SB1965, SB1999, SB2035, SB2056, SB2082, SB2119, SB2138, SB2165, SB2199, SB2201, SB2203, SB2245, SB2284, SB2419, SB2422, SB2452, SB2487, SB2523, SB2529, SB2533, SB2541, SB2586, SB2595, SB2605, SB2615, SB2675, SB2690, SB2717, SB2753, SB2778, SB2835, SB2841, SB2891, SB2929, SB2933, SB3016, SB3039, SB3044, HB912, HB2525, SJR3, SB5, SB29, SB326, SB494, SB530, SB769, SB783, SB963, SB1238, SB1271, SB1786, SB1967, SB2312, SB72, SB616, SB1143, SB1172, SB1267, SB1273, SB1506, SB1759, SB2361, SB1, SB260, SB1637, SJR36, SJR50, SJR63, SJR59, SCR12, SCR39, SCR48, SCR19, SB2023, SB1524, SB2422, SB2119, SB2753, SB1863, SB62, SB666, SB847, SB284, SB854, SB1073, SB810, SB1505, SB583, SB507, SB1434, SB1376, SB1772, SB2016, SB1163, SB1122, SB731, SB397, SB508, SB1436, SB287, SB261, SB1882, SB393, SB1791, SB209, SB2429, SB1999, SB511, SB2309, SB510, SB1085, SB1975, SB2717, SB1262, SB636, SB2056, SB884, SB517, SB1200, SB1845, SB2681, SB2199, SB2458, SB801, SB2533, SB3014, SB3013, SB758, SB1013, SB2797, SB2076, SB2876, SB2284, SB2929, SB2595, SB715, SB1640, SB1241, SB2538, SB1449, SB2529, SB986, SB1181, SB1359, SB2245, SB410, SB1234, SB456, SB1012, SB2926, SB2138, SB2615, SB2972, SB2841, SB3016, SB1856, SB2035, SB1528, SB1373, SB672, SB2891, SB1854, SB317, SB2539, SB2532, SB1250, SB2082, SB2203, SB1285, SB1959, SB1454, SB2520, SB2541, SB1708, SB1237, SB1844, SB1586, SB3039, SB2819, SB66, SB629, SB1015, SB2342, SB2903, SB2933, SB1965, SB2477, SB3029, SB2605, SB2419, SB1957, SB375, SB250, SB777, SB628, SB2523, SB2367, SB2703, SB2608, SB2778, SB3044, SB2965, SB2521, SB865, SB1032, SB2165, SB2501, SB2675, SB2452, SB2835, SB872, SB1212, SB1278, SB1588, SB1602, SB1704, SB1723, SB1833, SB1858, SB1946, SB2009, SB2177, SB2460, SB2785, SB2373, SB1660, SB614, SB867, SB1608, SB1525, SB905, SB640, SB2487, SB1698, SB383, SB705, SB748, SB1113, SB1117, SB1802, SB2340, SB2586, SB2680, SB2690, SB2994, SB2747, SB1950, SB913, SB1071, SB1086, SB1087, SB1483, SB1444, SB1553, SB1556, SB1703, SB2133, SB2297, SB2298, SB2622, SB2955, SB3059, SB2782, SB2781, SB2637, SB2633, SB2337, SB2334, SB1861, SB2043, SB1367, SB946, SB945, SB2857, SB128, SB571, SB1263, SB3058, SB612, SB2221, SB2587, SB2044, SB2363, SB2713, HB1109, HB1392, HB22, HB2525, HB3093, HB517, HB912, HB1130, HB142, HB1689, HB2018, SB2311, SB1986, SB2565, SB2943, SB1888, SB2417, SB3048, SB3052, SB3053, SB3036, SB3057, SB3056, SB3043, SB3037, SB3050, SB3063, SB3047, SB3035, HJR98, HJR99, HB136, HB2884, HB1393, HB2730, HB1399, HB1244, HB467, HB331, HB2559

Keywords: disability, supported decision-making, legal assistance, confidentiality, access to justice, autonomy, civil rights, advocacy, monuments, memorials, public property, historical significance, civil penalties, local governance, SB 393, Sparks, Middleton, local government, political subdivision, public securities

Transcript Highlights:

• Is it, I've heard, volunteer—do you have an ESD or county-paid facilities? We do have ESDs.
• And, you know, the ESDs are way more fortunate than ones that are not ESDs.
• And, you know, the ESDs are way more fortunate than ones that are not ESDs.
• I double-checked that with the ESD-1.
• And out of how many ESDs was basically directed to go and support the ESD, because it was ESD-1 that

Summary: The joint Senate and House disaster preparedness hearing convened in Kerrville with quorum, public testimony limited to three minutes and invited testimony to 10 minutes. Leaders from both chambers, along with the lieutenant governor and speaker, framed the hearing as an unprecedented joint effort focused on learning from the July 4 flood, honoring victims, and identifying actions to reduce future loss of life. The committee also heard opening remarks about decorum, logistics, and the intent to continue work in future sessions. The first panel included Kerr County Judge Rob Kelly, Sheriff Larry Leitha, Emergency Management Coordinator William B. Thomas IV, Kerrville Mayor Joe Herring Jr., Kerrville City Manager Dalton Rice, Upper Guadalupe River Authority representative William Rector, Kendall County Judge Shane Stolarczyk, and Real County Judge Bella Rubio. They described the flood as sudden and catastrophic, with Kerr County reporting 108 deaths and two missing. Local officials emphasized that they received no timely warning of the scale of the event, that responders and volunteers acted heroically under extreme conditions, and that communications, cell coverage, and rural emergency resources were strained. Several witnesses said the county’s existing alert systems were limited by geography, sparse broadband, and the speed of the flood. Testimony focused on possible improvements, including real-time flood gauges and predictive monitoring, stronger rural emergency management staffing and training, better interoperability and alerting tools such as IPAWS, CodeRED, WENS, and sirens, and expanded broadband and radio coverage. Kerrville asked for a flood warning system before next summer and state help for stormwater, floodplain, and disaster recovery funding. UGRA described its past and current flood-warning and mitigation efforts, including gauge funding, a new software-based flood prediction project, and consideration of additional retention dams. Kendall and Real counties highlighted successful or needed alerting and evacuation practices, while also stressing the difficulty of funding and maintaining such systems in small rural counties. Members asked detailed questions about the timeline of the flood response, low-water crossings, communications failures, sirens, bridges, and whether regional consolidation or additional infrastructure could improve future preparedness.

Transcript Highlights:

• Labor and Industries, ESD, and DOR do an annual benchmark report.
• We have an update from ESD by Chair Scott.
• ESD has five regions, and there are 12 local workforce development boards represented here.
• Are there any more questions for ESD?
• Are there any more questions for ESD?

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:

• fire marshal to delegate authority to administer and enforce county fire codes to a municipality or ESD
• Senate Bill 2778 allows ESD boards to raise that threshold to any amount under $50,000, giving them the
• Each ESD board can choose a new limit, such as $10,000 or $20,000, and adjust it at any time during a
• Senate Bill 2778 mirrors this framework to bring ESDs in line with similar public entities.
• efficiency with fiscal responsibility, respects local control, and brings long-overdue modernization to ESD

Summary: The Senate opened with a quorum, an invocation, and routine business including dispensing with the previous day’s journal, receiving a House message on HB 104/HJR 34, and a gubernatorial message naming two appointees to the Texas Real Estate Commission. The chamber also adopted several resolutions recognizing Alzheimer’s Advocacy Day, Golf Day in Texas, Cindy Ramos-Davidson, and the 50th anniversary of the Harris-Galveston Subsidence District. Members then adopted memorial resolutions honoring fallen first responders, including Deputy Jesse Ray Perez and Deputy Melissa Pollard, and the Senate agreed to adjourn in their memory. The Senate considered and passed several bills. SB 2199 increased penalties for loading overweight vehicles transporting hazardous materials; SB 1959 adjusted permit factors for the North Texas Groundwater Conservation District; SB 1376 changed supervision rules for code enforcement officer trainees; SB 2595 created a new offense for harassing, intimidating, or threatening someone while concealing identity with a mask or similar headgear; SB 1012 authorized sale or lease of certain surplus state property in Austin; SB 2245 revised bonded title procedures; SB 2605 created a municipal housing authority asset commission; SB 3044 expanded and adjusted the board of the Presidio County Underground Water Conservation District; SB 628 clarified county fire code enforcement authority through interlocal agreements; SB 2778 raised the spending threshold for emergency services district employees; SB 3039 addressed public higher education transfer issues; and SB 2523 allowed release from municipal extraterritorial jurisdiction by petition. Most of these bills were passed to engrossment, the three-day rule was suspended, and final passage was completed, often by wide margins. The chamber also took up SB 1844, which would require cities to provide services before expanding taxing areas into limited-purpose jurisdictions; a floor amendment narrowed the bill, and it was passed to engrossment. SB 2284 clarified municipal and county authority over firearms, airguns, archery equipment, and related items, and was passed despite opposition. SB 2529, dealing with the vote threshold for taxing units to adopt higher tax rates or issue tax bonds, prompted extended debate over voter approval and representative decision-making; after questions, the bill was passed to engrossment and held. At the end of the session, the Senate recessed for 20 minutes and announced it would meet as the Caucus of the Whole.

Transcript Highlights:

• We are a statewide association of emergency services districts, or ESDs.
• Our volunteer firefighters and the like, but we had some ESDs even back then that were EMS ESDs providing
• ESDs, but lately something has changed.
• Representative Shofner, your area in Newton County, they just created an EMS ESD, ESD Number Six in Newton
• You might ask, "Why is the ESD guy talking about a bill that doesn't directly affect ESDs?"

Bills: HB3000, HB2622, HB2283, HB541, HB1776, HB1803, HB1669, HB2588, HB220, HB3415, HB50, HB1314, HB 107, HB220, HB50, HB107

Keywords: ambulance service, rural healthcare, grants, financial assistance, qualified counties, mental health, patient transport, female attendants, security measures, healthcare regulation, epinephrine, anaphylaxis, health care, school safety, training, emergency response, direct patient care, healthcare, physicians, medical services

Bills: SB208, SB628, SB777, SB1042, SB2354, SB2477, SB2521, SB2523, SB2608, SB2703, SB2778, SB2835, SB2965, SB2367, SB3044

Keywords: workforce housing, capital investment fund, affordable housing, housing development, Texas housing laws, loan programs, community development, Texas housing, zero-interest loans, low-income housing, nonprofit organizations, construction, economic stability, housing affordability, capital investment, Texas housing policy, county fire code, fire marshal, local government code, interlocal agreement

Bills: SB208, SB628, SB777, SB1042, SB2354, SB2477, SB2521, SB2523, SB2608, SB2703, SB2778, SB2835, SB2965, SB2367, SB3044

Keywords: workforce housing, capital investment fund, affordable housing, housing development, Texas housing laws, loan programs, community development, Texas housing, zero-interest loans, low-income housing, nonprofit organizations, construction, economic stability, housing affordability, capital investment, Texas housing policy, county fire code, fire marshal, local government code, interlocal agreement

Transcript Highlights:

• As fire chief at El Paso County ESD number two and you are testifying new. on the bill, is that correct
• My most small ESD, West Texas. Lowest taxing entities.
• bill is was never intended to be aimed at our volunteer fire associations and it was not intended for ESD

Bills: HB467, HB318, HB503, HB198, HB318, HB198

Keywords: hospital district, Cedar Creek, scholarship, dissolution, county judges, healthcare funding, grant program, rural counties, law enforcement, sheriff's departments, funding, public safety, deputy shortages, sheriff, prosecutor, salary assistance, HB 198, Wade Cannon Act, firefighter cancer screening, occupational cancer screening

Transcript Highlights:

• I've heard volunteer, do you have an ESD or county paid facility?
• ESDs are way more fortunate than ones that are not ESDs.
• It's 176 square miles that are in ESD-1.
• How many ESDs does Travis County have? It's large.
• And out of how many ESDs was basically directed to go and support because it was ESD one that was impacted

Keywords: 1185, senate, all

Transcript Highlights:

• are way more fortunate than the ones that are not ESDs.
• It's a hundred and seventy six square miles that are in ESD-1.
• ESDs and Austin Fire from across the county out to Sandy Creek.
• It hopped around, it was at the ESD-1 at first.
• Because it was ESD-1 that was impacted, correct? Yes, sir.

Keywords: 997, house, all

Transcript Highlights:

• Uh, we show you registered as Roger Esparza, uh, as fire chief at El Paso County ESD number 2, and you
• I'm a small ESD West Texas. Lowest taxing entities.
• intended to be aimed at our, at our, uh, volunteer, uh, associations, and it was not intended for, for ESD

Bills: HB318, HB198

Keywords: ERCOT, interconnection, electric utilities, power grid, transmission, election administration, school board elections, trustee terms, general election, Education Code

Transcript Highlights:

• So my other comment, maybe a question I can take offline is, are there things we can do with ESD to..
• I can take offline is, are there things we can do with ESD to make this verification easier through the
• And I didn't know if there's documentation and if there's ways through ESD and through our portals that
• We do already connect to ESD for quarterly wages in our state, and we've already engaged with DSHS and
• ESD on what this could look like.

Summary: The committee first received an update on the effects of HR1 and related federal Medicaid and marketplace changes from Governor’s Office and Health Care Authority staff. Presenters said the most immediate coverage losses are expected in the individual market beginning in January, with premium increases and an estimated 80,000 people potentially unable to afford coverage. They warned that larger Medicaid impacts will follow over the next year and beyond, including tighter eligibility checks, work requirements, reduced retroactive coverage, limits on state-directed payments and provider taxes, new cost-sharing, and changes affecting certain non-citizen adults. They also said the state plans to seek a waiver or extension for work requirements and will continue to analyze impacts, including on rural providers and Planned Parenthood-related services. Members asked about the effect on nursing homes, rural hospitals, and how the state can help providers and enrollees navigate the new requirements; staff said timelines and a state-specific implementation chart are being developed. The committee then heard a report on the International Medical Graduate Work Group and Washington’s efforts to create pathways for internationally trained physicians. Testimony described the clinical experience license, the clinical evaluation assessment tool, grant funding for IMG support organizations, and a new hardship waiver process enacted this year. National presenters said many states have adopted similar pathways because of physician shortages, but Washington and Tennessee are among the few states that have actually issued licenses so far. They recommended clear guardrails, an employment offer before application, ECFMG certification, supervised practice, and data collection to avoid exploitation and protect patients. Members asked about state-to-state variation, retention of IMGs, and whether Washington should pursue dedicated residency or preceptorship options; presenters said the key next step is moving successful participants from supervised experience to a durable long-term license. The final topic was implementation of Washington’s Apple Health doula benefit and the statewide doula hub and referral system. Senator T’wina Nobles highlighted the state’s $3,500 per-birth Medicaid reimbursement rate for doulas and the importance of the hub for referrals, training, and billing. Health Care Authority staff said the benefit launched January 1, 2025, and covers prenatal intake, labor and delivery, postpartum visits, and telehealth-supported services. They reported 336 state-certified doulas, 134 enrolled in Apple Health, 287 unique clients served, and 641 claims paid so far. Testimony emphasized doulas’ role in improving birth outcomes, reducing unnecessary interventions, and addressing racial disparities in maternal health, while noting that implementation is still early and ongoing.

Bills: HB386, HB1449, HB1701, HB2142, HB2675, HB2857, HB3063, HB3171, HB3641, HB3732, HB4045, HB4370, HB4491, HB4505, HB4626, HB5267, HB5356

Keywords: construction contracts, change orders, local government, budget limits, Texas legislation, HB 1449, mobile food vendors, food trucks, mobile food service establishments, permits, county health permit, municipal permitting, Health and Safety Code Chapter 437A, Chapter 437, inspection agreements, permit reciprocity, fee cap, preemption, large counties, population over one million

Transcript Highlights:

• What it does is exempt ESDs from the provisions. of this legislation because ESDs provide a key role
• We need to treat ESDs differently than other taxing jurisdictions because of the unique role they play
• The amendment functionally covers all of the ESDs.
• So with that noted, I'm going to withdraw this amendment at this time and hope that in conference ESDs

Bills: HB17, HB16, SB 10, HB27, HB23, SB 15, SB 18, HB 17, HB 16, SB 10, HB 27, HB 23, SB 15, SB 18

Keywords: property tax, school funding, enrollment changes, inflation adjustment, tax rate notice, judicial administration, court reform, juvenile diversion, court security, mental health services, drug offenses, constitutional amendments, property tax exemption, ad valorem tax, Texas Tax Code, nonprofit corporation, charitable organization, educational nonprofit, scientific nonprofit, agriculture support

Transcript Highlights:

• The ESD operates under the authority of Chapter 775 of the Texas Health and Safety Code.
• in addition to the five ESD commissioners.
• . 25,000 to 30,000 people, plus an additional 7,000 that we serve under contract with ESD No. 13, in
• and to the residents, approximately 25,000 to 30,000 residents in BTC, ESD 1, and the 7 in ESD 13.
• And ESD 13, and we're growing, right?

Keywords: 1184, house, all

Transcript Highlights:

• In addition, we wanted you to see the Harris County ESD Fire Department and then the Harris County ESDs
• However, Harris County, being the geographical entity that it is, is going to show that the ESDs will
• But remember, some of that is based on how it's set up; it could be that the ESDs may be covering the
• that as you look into the north side and the east side, you'll see all of that is either cities or ESD
• My understanding is that all of the fire departments, including HFD and the ESDs, report to the state

Bills: HB2065, HB2462, HB2621, HB3187, HB3539, HB3563, HB3726, HB4164, HB4207, HB4368, HB4706, HB4916, HB4950, HB4967, HB5177, HB4429, HB5597

Keywords: commercial vehicles, parking regulations, residential areas, local governance, land use, traffic safety, high occupancy vehicle lane, pregnant operators, transportation, parental rights, motor vehicle regulations, live video feed, state agency, transparency, public safety, regional transportation, mobility program, sales tax, public infrastructure, local government

Transcript Highlights:

• All right, I show you registered as Nicholas Teague, testified on behalf of Bastrop, Travis County's ESD
• Bastrop-Travis County's ESD-1 and yourself, and you're for the bill. Yes, sir, I am.
• I am an elected ESD commissioner for Bastrop-Travis County ESD-1.
• I'm also an elected official in my district, Bastrop-Travis County ESD 1.
• As an ESD commissioner, I'll come back to that.

Bills: HB1455, HB1777, HB2101, HB2136, HB2609, HB3142, HB3552, HB3846, HB4155, HB4514, HB4879, HB4995, HB5014, HB5139, HB5228, HB5436, HCR40

Keywords: mental health, jail diversion, law enforcement, reporting requirements, criminal justice, data collection, criminal justice reform, intellectual disability, mental illness, data reporting, public safety, reporting, substance abuse, sex offender, driver's license, identification, gunshot detection, unreported gunshots, municipal police, crime investigation

Summary: The committee met with a quorum and heard several bills, generally leaving them pending after testimony. HB 4995 would create a training/certification program allowing licensed physicians and certain EMS personnel assigned to tactical units to carry firearms during high-risk deployments, with supporters saying it would protect tactical medical staff and improve emergency care; the committee substitute was withdrawn and the bill left pending. HB 2609 would repeal the OmniBase/failure-to-appear-or-pay license hold program; the author and supporters argued it unfairly compounds debt and traps drivers in noncompliance, while judges and municipal court representatives said it is an effective, voluntary tool that prompts court appearances and reduces warrants. HB 4879 would create a grant program to help local law enforcement pay for lab testing of suspected hemp/THC substances, and HB 5436 would allow licensed auto recyclers to purchase certain untitled vehicles for scrap or parts to curb illegal sales, VIN cloning, and chop shop activity; both bills drew supportive testimony and were left pending. The committee also heard HB 1777, which would place a discrete sex-offender designation on driver’s licenses and state IDs for registrants under Chapter 62. The author said the marker would help law enforcement and businesses quickly identify potentially dangerous offenders and cited other states and research in support, while opponents argued it would function as a scarlet letter, increase harassment, and punish people who are already complying with the law. HB 4155 would create a Family Violence Criminal Homicide Prevention Task Force in the Governor’s Office to study risk factors, coordinate agencies, and recommend policy changes; the author, HHSC, TCFV, and a survivor testified in support, emphasizing the number of family violence homicides and the need for coordinated, data-driven prevention, and the bill was left pending. Finally, HB 4514 would authorize DPS to use facial image verification, with consent and confidentiality protections, to help businesses verify identities and combat fraud. Supporters from the lumber and identity-verification industries said it would reduce losses from fake IDs and organized theft, while the author stressed privacy safeguards and limited, consent-based use. The committee substitute was withdrawn and the bill was left pending.

Transcript Highlights:

• On behalf of Dennis Ling and the ESD, strong support for the nomination and honor. Thank you.
• First Dennis Ling, administrator - On behalf of Dennis Ling and the ESD strong support nomination and

Keywords: 912, senate, all

Summary: The Senate Committee on Economic Development and Tourism heard several governor’s nominations for advisory and regulatory boards. The first group included William Smith, Michelle Ige, and Kayana Neman for the Community-Based Economic Development Advisory Council; Leland Park and Cynthia Hobson for the Small Business Regulatory Review Board; and Nicole Kacal for the Hawaiʻi Technology Development Corporation board. DBEDT and related witnesses testified in support of all nominees, and each nominee described experience in small business, finance, community engagement, or technology. Much of the discussion focused on strengthening Hawaiʻi’s economy through small business support, financial literacy, and better access to capital and grants. Committee members questioned nominees about priorities for Hawaiʻi Island and the state more broadly. Topics included agricultural infrastructure, value-added food production, shared processing facilities and commercial kitchens, workforce housing, and ways government and nonprofits can partner to help small businesses navigate permitting, licensing, and grant processes. Several nominees emphasized community impact, measurable outcomes, and practical regulatory reform. Nicole Kacal also discussed diversifying the economy beyond tourism, expanding technology and AI opportunities, and creating locally governed training and research pathways so workers can adapt to changing jobs. At the end of the hearing, the committee voted to recommend advice and consent for all nominees. The nominations for GM 608, GM 609, GM 612, and GM 613 were adopted by voice vote, with Senators Kim and Fevella excused. The committee then voted separately on GM 794 for Nicole Kacal, and that recommendation was also adopted. The hearing concluded with adjournment.

Transcript Highlights:

• L&I, ESD, and DOR do an annual benchmark report.
• L&I, ESD, and DOR do an annual benchmark report.
• So there has been work in the past for enhanced sharing of information between ESD, L&I, and DOR, and

Summary: The committee first received an update from the Attorney General’s office on a new workers’ rights unit and two request bills. The office said the unit will focus on wage theft and civil rights enforcement, using existing resources for a small staff. It also described a bill to expand civil investigative demand authority for labor, wage theft, prevailing wage, and discrimination investigations, and an Immigrant Worker Protection Act that would require employer notice when federal immigration authorities request employee records, limit access to nonpublic work areas without a warrant, and restrict disclosure of employee data without proper legal process. Senators asked about costs, funding sources, and the scope of the proposed authority, and the office said it would follow up with more detail. The committee then heard a detailed presentation on Washington’s workers’ compensation system from Labor and Industries, including how claims are filed, how the medical provider network works, and how treatment authorizations and utilization review are handled. L&I said the network was created to improve care quality and return workers to work, and explained that most routine care is automatically authorized while certain procedures require prior approval or review. A question from Senator Conway focused on the role of the medical director and the appeals process; L&I said decisions can be protested and reconsidered, with exceptions reviewed through a complex treatment unit and medical staff. An experience panel followed with testimony from labor representatives, physicians, and an injured-worker attorney, who argued that the medical provider network and treatment guidelines can delay or deny needed care, especially in complex cases such as PTSD, brain injuries, and serious orthopedic injuries. They described long appeals, utilization review barriers, provider shortages, and the impact on injured workers and families, while L&I’s presentation emphasized the system’s structure and review safeguards. The committee then heard a report from the Underground Economy Task Force in the construction industry. L&I summarized the task force’s findings on worker misclassification, unregistered contractors, and unpaid taxes and premiums, and outlined consensus and majority recommendations, including better interagency communication, stronger penalties for repeat offenders, more authority to address successorship, possible contractor notice requirements, and further study of cash payments. The Attorney General’s office, labor, and business representatives generally supported the report’s goals but differed on some recommendations, especially those affecting independent contractors, contractor liability, and administrative burdens. The chair and Senator Conway thanked participants and said the report would inform future legislation.

Transcript Highlights:

• ESD is a new partner.
• ESD is a new partner.
• With ESD, it's fairly routine to validate earned wages, but there's no similar validation for self-employment

Summary: The House Finance Committee held a work session that began with welcoming new member Rep. Janice Zahn, who introduced herself as representing the 41st Legislative District. The Department of Revenue then gave an update on the Antio-related legislation following the Washington Supreme Court decision and the 2025 session changes. DOR explained its voluntary disclosure program and the new expanded voluntary disclosure agreement for taxpayers with unreported investment income, including broader eligibility and interest/penalty relief, but said utilization has been minimal so far because additional implementation questions remain unresolved. The committee next received the annual update on the Working Families Tax Credit. DOR reported record participation in 2025, with about $205 million refunded through October and a major increase in applications after TurboTax added the credit to its filing software. Officials said most dollars went to households with children, outreach efforts remained important, and community partners and state agencies helped increase uptake. Members focused heavily on fraud concerns, especially tax preparers allegedly filing claims without applicants’ knowledge or diverting refunds; DOR said it is using fraud detection tools, training preparers, and trying to make applicants whole, but current law does not provide direct penalties against preparers. The final portion covered implementation of engrossed substitute Senate Bill 5814, which expanded sales tax to certain services. DOR described the new tax framework, its guidance process, and the large volume of ruling requests and outreach since the law took effect October 1. Committee members asked about fiscal assumptions, the scope of taxable services, and whether the department had revised its implementation estimates; DOR said the fiscal note assumed broad application absent explicit exemptions and that no expenditure revision had been made. In stakeholder testimony, Expedia and T-Mobile argued the law creates complexity and competitive disadvantages for Washington businesses, while a construction training provider said the tax raises tuition for workers seeking required certifications. School and nonprofit representatives said the tax will increase costs for special education services, arts programming, and other public-facing activities, and urged exemptions or further legislative fixes. The chair closed by noting the committee would revisit 5814 in the next session and then adjourned the meeting.