Transcript Highlights:

• that there are cases that have happened where children were removed from the school system under suspicious
• :36.799><c> under</c> removed from the school system under removed from the school system under suspicious
• <00:56:37.760><c> circumstances</c><00:56:39.119><c> ostensibly</c><00:56:39.760><c> to</c> suspicious
• circumstances ostensibly to suspicious circumstances ostensibly to homeschool<00:56:40.960><c> and</

Summary: The committee on Education met on February 17 and announced it would limit public testimony to one minute because more than a thousand testimonies were expected on one measure. The first bill heard was HB 1934, relating to the Imagination Library of Hawaii. The state librarian and Friends of the Library supported the bill, saying the program is a proven, cost-effective way to improve early literacy and should be expanded statewide for children ages 0 to 5. Friends of the Library said the current 50/50 match requirement would be too difficult to meet immediately and asked for state funding for the first few years to help launch the expansion. Testimony included eight supporters and one opponent, and members asked whether the proposal was an expansion of an existing program; the state librarian said it would expand service beyond currently targeted communities. The committee then heard HB 20004, which would extend the floating librarian pilot program. The state librarian, Department of Education, HSTA, and several individuals testified in support. Supporters said the program helps address staffing needs and improves student readiness, especially for college and information literacy. One retired community college librarian said school librarians help students prepare for college and are increasingly important in teaching critical evaluation of misinformation and AI-generated content. Members asked about implementation of the existing pilot, including recruitment of certified librarians for neighbor island and Oahu complex areas; DOE said those positions had been identified and recruitment was underway, and existing funds remained intact. The final major discussion was HB 2398, which clarifies the library system’s role in RNMSP-related projects and public library construction on or near school land. The state librarian and public library system supported the bill, while the Department of Education and Attorney General’s office raised concerns about vague language, especially the phrase “land controlled by the board,” and suggested amendments. In questioning, the state librarian explained that the bill was prompted by conflicts on shared or adjacent school/public library sites, including traffic, pickup and drop-off access, and other operational issues. DOE described significant disruption from one project’s traffic changes and said planning for such projects should involve early coordination and formal agreements. The state librarian responded that the new bill would clarify oversight and help avoid delays and disputes over property control and future renovations.

Transcript Highlights:

• So if one person said that to me, you know, I’d be a little suspicious.
• So if one person said that to me, you know, I’d be a little suspicious.
• So if one person said that to me, you know, I’d be a little suspicious.
• So if one person said that to me, you know, I’d be a little suspicious.

Summary: The House Children and Family Law Committee opened its February 4, 2025 hearing with a business item on House Bill 553, appointing a subcommittee chaired by Representative Greg and including several named members. The committee then took up House Bill 486, which would revise New Hampshire’s grandparents’ visitation law. The prime sponsor said the bill is intended to address gaps in current law, especially in situations involving divorce, separation, kinship care, and parental substance use, so that children can maintain important relationships with grandparents or other kin caregivers. He emphasized that the proposal was meant to supplement existing law rather than replace it, and said the language was modeled on statutes from other states. Several witnesses testified in support of HB 486, describing painful family separations and arguing that current law can be interpreted too narrowly. One grandmother said the existing statute had been used to dismiss her visitation case because she was restricted while the parents were separated, and she asked for language changes so courts could still order visitation in similar circumstances. Another witness, testifying online, urged passage of the bill as being in the best interest of children. A third witness described a family living arrangement in which grandparents had been a consistent presence in their grandchildren’s lives but were later cut off during a contentious separation, and said the bill would help repair those relationships. Committee members asked about the six-month timeframe in the bill, whether the proposed language would affect cases where a grandparent does not live with the child but is still a regular caregiver, and whether the sponsor had written amendment language; the sponsor said the six-month language was taken from other states’ statutes and that the new language would not change existing visitation rights but would add to them. After hearing the testimony, the chair said the committee would hold HB 486 aside for a week or two while awaiting additional information before voting. The hearing then moved to House Bill 320, an act relative to enforcement of marital property settlements. The sponsor explained that the bill would require courts to enforce final property decrees and would clarify the difference between enforcement and contempt, arguing that courts should have clear authority to fashion remedies and that litigants, especially self-represented parties, need clearer statutory guidance. Committee members questioned the legal distinctions the sponsor drew, including whether the bill was aimed at enforcement rather than contempt and how the proposed language would operate in practice. The transcript cuts off before any vote or further action on HB 320.

Transcript Highlights:

• public meeting of the Special Legislative Commission to study the future of payments and sales transactions
• They change from one transaction to the next.
• They change from one transaction to the next.
• As you remember, there are several types of fees deducted from transaction amounts on card transactions
• The Federal Reserve tracks this data with respect to debit card transactions.

Summary: The Special Legislative Commission studying the future of credit card payments and their impacts on small businesses held what leaders described as its last public hearing, though they said the commission would continue meeting to develop a report and recommendations. Chair Paul Feeney and other members noted the issue is complex and that they had sought testimony from a wide range of stakeholders before moving into a more deliberative phase. The commission adjourned after hearing from several in-person and virtual witnesses. Banking and card-industry witnesses, including the Massachusetts Bankers Association, the Card Coalition, the Electronic Payments Coalition, and others, argued that payment cards provide major benefits to consumers and merchants, including convenience, fraud protection, fast settlement, and broad access to electronic commerce. They warned that state-level changes to interchange rules could create a patchwork of conflicting requirements, disrupt global payment systems, and especially affect state-chartered community banks and small businesses. Several also said recent federal actions and litigation, including OCC and NCUA preemption rules and the Illinois interchange-fee litigation, have limited the practical reach of state laws. Restaurant, retail, and convenience-store witnesses pushed for relief from swipe fees, saying independent businesses operate on thin margins and pay fees on amounts that are not really their revenue, such as sales tax and gratuities. They urged transparency, the ability to surcharge, vendor compensation for tax collection, and limits on interchange or related fees. Some witnesses said merchants bear significant fraud and chargeback costs and that banks and card networks have not offered enough direct relief. Commissioners asked questions about surcharging, fee regulation, fraud, and whether industry should share more of the burden. No votes or formal actions were taken beyond adjourning the hearing.

Transcript Highlights:

• They understand how that's going to transact.
• Just as eBay brokers the transaction between a seller and a buyer, just as Lyft or Uber brokers the transaction
• But almost 1.4% of all transactions end up in default.
• Is there still not enough money in a transaction where you can exclude 6.25% from a 2% transaction fee
• The Illinois law calls for a $1,000 per transaction fine.

Summary: The Special Commission on the future of credit card payments and their impacts on small businesses heard testimony from credit union, retail, banking, and payments industry representatives. Much of the discussion focused on proposals to exclude sales tax and tips from interchange fees, the Illinois Interchange Fee Prohibition Act and related litigation, and whether similar state action in Massachusetts would help small businesses or instead create a patchwork that burdens state-chartered institutions. Witnesses from defense and community credit unions argued interchange helps fund fraud prevention, cybersecurity, member services, and low-fee products, while retail and NRF representatives said merchants are paying significant swipe fees and that state laws like Illinois’s are aimed at reducing costs that are not being passed on to consumers. Several witnesses emphasized that the current payment system provides security, fraud protection, rewards, and access to credit, and that many of the costs merchants complain about are actually bundled processor or acquirer fees rather than interchange itself. Others countered that small businesses are struggling with rising overall costs and that Massachusetts should consider reforms such as allowing surcharging, improving transparency in merchant contracts, and studying collection costs. There was also discussion of the recent Visa/Mastercard antitrust settlement, with industry witnesses describing it as meaningful relief for merchants and opponents saying it is temporary and incomplete. No formal votes were taken on legislation. The commission accepted oral testimony, noted that written testimony would be accepted through July 31, and concluded the meeting by unanimously voting to adjourn. The chair and members said they would continue gathering testimony and work toward recommendations, with the chair stressing the need to find a fair middle ground that supports both small businesses and the broader payments ecosystem.

Transcript Highlights:

• It's those transactions.
• It's those transactions.
• transactions in the system now that are transactions in the system now that are really<00:32:09.679><
• </c> transactions that you described Mr. transactions that you described Mr.
• So I'm sorry—read... transactions. But if there are more for transactions.

Transcript Highlights:

• </c> toolbox to try to make transactions toolbox to try to make transactions happen<00:05:16.560><c>
• c> I'll</c> transaction transaction cap, which I'll transaction transaction cap, which I'll talk<00:10
• So those are the 3% on transactions.
• . transactions. transactions.
• </c> transaction limit for returning users. transaction limit for returning users.

Committee: Senate Banking & Insurance

Transcript Highlights:

• And so we looked at transactional gold in particular.
• We support the building of a framework where transactions can be conducted.
• That with questions the transaction.
• Ali, I understand how you could have a transaction in gold just like you can have a transaction in Crypto
• but optional so that people can choose whether or not they're going to transact.

Transcript Highlights:

• And so we looked at transactional gold in particular.
• Oakes was testifying about, and is really how to make it transactional.
• It's really the transactional part of it.
• So, transactionally, I understand how you can have a transaction in gold, just like you can have a transaction
• to transact.

Committee: Senate Banking and Insurance

Summary: The committee first took up SB 794, as amended by a late-filed strike-all, which would require a human being to make insurance claim denial decisions and prohibit artificial intelligence from being the sole basis for a denial. The sponsor said the bill was intended to preserve human oversight while allowing innovation in claims processing. Public testimony included support from the Florida Insurance Consumer Advocate and the Florida Medical Association, along with one speaker urging additional protections for homeowners. The committee adopted the strike-all and reported SB 794 favorably with committee substitutes. Members then heard SB 134, which removes the $500 threshold on the sales tax exemption for bullion, making sales of gold, silver, and platinum bullion fully exempt and eliminating certain dealer documentation requirements. Supporters argued the change would reduce a regressive tax and help consumers preserve savings; the sponsor estimated a revenue impact of about $300,000. The bill was reported favorably. The committee also adopted a strike-all on SB 888, which directs the Office of Insurance Regulation to create a more consumer-friendly homeowners insurance website with premium comparison information, market data, rate filing access, and educational resources. The sponsor and Leader Boyd said the goal was to improve transparency and help consumers navigate a stabilizing market. SB 888 was reported favorably with committee substitutes. The final bill heard was SB 1578, covering mammograms and supplemental breast cancer screenings. The sponsor said it would expand coverage requirements in ACA plans and private insurance policies, including annual mammograms for women ages 40 to 50 and supplemental screening coverage, while noting Medicaid already provides these services. The Florida Insurance Consumer Advocate waived in support, and the bill was reported favorably. After the bills, the committee held a lengthy panel discussion on gold and silver as legal tender and transactional money, with testimony from officials from Utah and Florida, industry representatives, and advocacy groups. Panelists discussed constitutional authority, consumer protections, depository oversight, taxation issues, and possible transactional platforms for precious metals. No further action was taken after the discussion, and the committee adjourned.

Transcript Highlights:

• They understand how that's going to transact.
• Just as eBay brokers the transaction between a seller and a buyer, just as Lyft or Uber brokers the transaction
• And this is an example of a credit transaction.
• Is there still not enough money in a transaction where you can exclude 6.25% from a 2% transaction fee
• The Illinois law calls for a $1,000 per transaction fine.

Summary: The Special Commission on the future of payments and sales transactions by credit card heard extensive testimony from credit union, banking, retail, restaurant, and payments-industry representatives about proposals to limit interchange fees, especially on the tax and tip portions of transactions. Several witnesses opposed state-level restrictions, arguing they would create a patchwork of rules, burden state-chartered institutions, raise compliance complexity, and ultimately reduce resources for fraud prevention, cybersecurity, rewards, and access to credit. Others, including retail and merchant advocates, said swipe fees are a significant and growing cost for small businesses and that states should consider reforms such as limiting fees on taxes and tips, allowing surcharging, improving transparency in merchant contracts, and studying collection costs more closely. Witnesses also discussed recent legal and regulatory developments, including Illinois’s interchange-fee law, OCC and NCUA interim rules, and the ongoing Visa/Mastercard antitrust settlement. Industry representatives said the Illinois law has been delayed and is likely preempted for most transactions, while merchant advocates argued the state efforts and court rulings show that networks and banks do not set fees competitively. The proposed antitrust settlement was described by some as a meaningful but limited merchant victory, with temporary fee reductions and expanded surcharge/steering rights, while others said it still falls short of structural reform. The commission members pressed witnesses on the practical effects of fees, the cost of cash, whether merchants can pass costs through, and whether small businesses are actually seeing benefits from the current system. Members repeatedly emphasized the need for a fair middle ground that protects both small businesses and the payment system. No substantive votes or policy actions were taken beyond accepting testimony, and the meeting ended with adjournment after all scheduled witnesses had spoken.

Transcript Highlights:

• complexity and scale of the Medicaid program, we need technology solutions that can better spot suspicious
• And there's nobody on the other side of that transaction should be the agency, should be the taxpayer
• There's nobody on the other side of that transaction to incentivize in the other direction of saying,

Committee: House Fraud Prevention and State Agency Oversight Policy

Transcript Highlights:

• inability to do the things in 261.6 that are required to consent: understand the nature of the act or transaction
• do the things in Section 261.6 that are required to consent: understand the nature of the act or transaction
• It looked suspicious, so I followed it and saw barricades in the backseat.

Summary: The committee heard several public safety measures, with extensive testimony on firearms regulation, disability and sexual assault, mental health diversion, emergency response, and law enforcement masking. SB 704 by Senator Arreguín would require firearm barrels to be purchased through licensed dealers with a background check, as a response to the rise in ghost guns and 3D-printed firearms; supporters said barrels are a key component of untraceable guns, while opponents argued the bill burdens lawful gun owners and does little to stop criminals. SB 258 by Senator Wahab would eliminate the remaining spousal rape exception for victims unable to consent because of disability; supporters called it a needed closure of an archaic loophole, while disability-rights advocates opposed it unless amended, warning it could worsen misunderstandings about capacity to consent and harm disabled people’s autonomy. After debate, SB 258 passed the committee on a due-pass motion to Appropriations, with several members voting aye and the bill held on call. Senator Umberg presented SB 398, which closes a loophole in the law prohibiting paying or offering money or other value to induce someone to vote or register to vote; there was little opposition, and the bill passed on a due-pass motion to Appropriations and was held on call. He also presented SB 27, a CARE Court cleanup measure that would allow certain misdemeanor defendants found incompetent to stand trial to be routed into CARE Court and would expand eligibility to some people with mood disorders with psychotic features. Supporters said it would improve access to treatment and reduce unnecessary incarceration, while county behavioral health directors and disability advocates warned it could blur the line between voluntary civil treatment and coercive criminal proceedings and expand CARE Court beyond its intended scope. SB 27 passed on a due-pass motion as amended to Appropriations. The committee also heard SB 36 from Senator Umberg, a price-gouging measure tied to wildfire-related emergency conditions that also expands search-warrant authority for certain misdemeanor investigations. Public defenders opposed the search-warrant expansion as unnecessary, while a late supporter from the Los Angeles County District Attorney’s Office spoke in favor; the bill was moved on a due-pass motion as amended to Appropriations and held on call. SB 571 by Senator Arreguín would increase penalties for impersonating emergency personnel and related conduct during disasters; supporters cited post-fire looting and impersonation, while opponents argued longer sentences do not deter crime and that existing law is sufficient. The bill passed on a due-pass motion as amended to Appropriations and was held on call. Finally, Senator Wiener presented SB 627, which would prohibit law enforcement from wearing extreme masks except in limited circumstances, aimed largely at masked federal immigration enforcement operations. Supporters said masked, unidentified officers create fear and undermine trust, while law enforcement groups argued the bill wrongly sweeps in local officers, is too broad, and should instead target federal agents or impersonators. Testimony was still underway when the transcript ended, and no final committee action on SB 627 is shown here.

Transcript Highlights:

• inability to do the things in 261.6 that are required to consent: understand the nature of the act or transaction
• The proper way to handle this... ...of the act or transaction and act voluntarily.
• It looked suspicious, so I followed it and saw barricades in the backseat.

Committee: House Public Safety

Summary: The committee heard several public safety measures. SB 704 by Senator Arreguín would require firearm barrels to be purchased through licensed dealers with a background check, as part of efforts to curb ghost guns. Supporters, including Brady Campaign and the California Police Chiefs Association, said barrels are a key unregulated component used in ghost guns; opponents argued the bill would burden lawful gun owners and would not meaningfully stop criminals. The bill was held for a later vote because the committee did not yet have a quorum when it was heard. SB 258 by Senator Wahab would remove the remaining spousal rape exception for victims unable to consent because of disability. Support came from prosecutors, sheriffs, and disability service organizations, while disability rights groups and public defender organizations opposed or sought amendments, warning the bill could worsen misunderstandings about consent for people with intellectual and developmental disabilities. After extensive testimony, the committee voted 7-0 to pass SB 258 to Appropriations. Senator Umberg presented SB 27, which would make CARE Court more efficient and expand eligibility to some people with schizophrenia-like conditions and certain mood disorders with psychotic features, including some misdemeanor defendants found incompetent to stand trial. Supporters said it would improve treatment linkage and reduce jail cycling; opponents, including county behavioral health directors and many disability advocates, argued it could make CARE Court more coercive and expand a program they view as ineffective. The committee passed SB 27 on a 7-0 vote. The committee also heard SB 36, a price-gouging measure with a proposed search-warrant expansion, and SB 571, which increases penalties for impersonating emergency personnel and looting during disasters; SB 571 passed on a 4-0 vote, while SB 36 was held on call after mixed testimony and a vote. Later, SB 627 by Senator Wiener, which would restrict masking by law enforcement and federal agents with exceptions for safety and undercover work, drew strong support from immigrant-rights and civil liberties groups and strong opposition from police associations; the transcript ends during that hearing before any final action is shown.

Transcript Highlights:

• Parties to the transaction must provide written notice of the change to the Attorney General.
• but must make such a request within 30 days of receiving notice of the transaction.
• That's Chapter 74.45 RCW for transactions involving a covered material change transaction.
• As worded, there are other transactions that are covered as well under the bill.
• What's a transaction? What's a change of ownership? What's a change of control?

Summary: The committee held public hearings on House Bill 2255, House Bill 2548, and House Bill 2320. HB 2255 would regulate third-party litigation funding by requiring disclosure of funders and agreements, prohibiting funder control over litigation, capping funder recovery at 25%, and creating enforcement remedies. Supporters, including the sponsor, insurance groups, and liability reform advocates, described it as a transparency and consumer-protection measure that could improve court efficiency and reduce costs. Opponents, including the Washington State Association for Justice and the commercial litigation funding industry, argued it would burden plaintiffs, reveal protected work product, chill access to justice, and create satellite litigation. No vote was taken; the chair closed the hearing and asked testifiers to submit written comments. HB 2548 would expand state oversight of health care market transactions by broadening the types of mergers, acquisitions, asset sales, and ownership/control changes that trigger notice to the Attorney General, pausing transactions until information requests are substantially complied with, expanding interagency data sharing, and revoking nonprofit status in certain transactions. Supporters, including patient advocates, nurses, the Office of the Insurance Commissioner, the Attorney General’s office, physicians, and individual health care workers, said private equity and consolidation are driving higher costs, reduced access, and lower quality. Opponents from the Washington State Hospital Association and MultiCare said the bill is unclear, may contain drafting errors, does not adequately target private equity structures, and could create problems around nonprofit status and charitable assets. The hearing ended with the committee moving on to the next bill. HB 2320 would update Washington’s ghost gun laws to address 3D-printed firearms, CNC manufacturing, digital firearm manufacturing code, and the sale of machines marketed for firearm production, and would make certain violations per se Consumer Protection Act violations. The sponsor and supporters, including school officials, gun violence prevention advocates, a trauma survivor, a 3D-printing industry representative, and others, said the bill closes a public safety loophole and responds to the growing availability of untraceable weapons. Opponents, including the NRA, makerspace representatives, and some industry witnesses, argued the bill is overbroad, may sweep in lawful 3D-printing and CNC activity, raises First, Second, and Fifth Amendment concerns, and could create uncertainty through rebuttable presumptions and the CPA provisions. The transcript ends during the HB 2320 hearing, with additional testimony panels still to come and no final committee action recorded.

Transcript Highlights:

• House Bill 2174, amending section 22-23-940, ARS, relating to transactions of insurance business.
• By singling out one religion for suspicious or disfavored treatment, this bill advances a false and harmful

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:

• House Bill 2174 amends sections 22 to 23, 940, ARS, relating to transactions of insurance business.
• By singling out one religion for suspicious or disfavored treatment, this bill advances a false and harmful

Transcript Highlights:

• And if we find there's some if someone has 9.9%, you know, and it looks like it's suspicious, we'll do
• a complicated financial mechanism between payments with the vaccine fund and those associated transactions

Summary: The committee first took up HB 155, which drew a lengthy debate over an amendment to delay implementation until tax year 2027. Supporters said the delay would give lawmakers time to see whether projected revenues materialize and to reconsider the policy if needed; opponents argued it would reduce money available to services and local governments at a time of tightening revenues. Members also discussed broader revenue trends, including tobacco, rooms-and-meals, real estate transfer, and lottery revenues, and disagreed over whether tax cuts tend to increase revenue. The committee adopted amendment 2025-2983H on an 11-9 vote, then voted 11-9 to report HB 155 ought to pass as amended. The bill was sent to the consent calendar, with a majority and minority report to be filed. The committee then considered HB 224, with members expressing concern that the bill would redirect money collected for one purpose to another and should receive more study. A motion for interim study was made and seconded, and the committee approved interim study unanimously, 20-0, sending HB 224 to the consent calendar. Next, the committee took up SB 83, which the Lottery described as a vehicle for technical corrections to gaming law. The Lottery requested changes to remove a bond cap, reconcile inconsistent free-play/promotional-play language, redirect problem-gambling funds to the Commission on Addiction Treatment and Prevention, and revise background-check language after the FBI declined to conduct checks under the existing wording. The committee adopted amendment 2025-2984 unanimously, 20-0, then voted 20-0 to report SB 83 ought to pass as amended and placed it on the consent calendar. Finally, the committee began work on HB 524, a bill to repeal the New Hampshire Vaccine Association. Representative Yuli said members had received many emails and calls both supporting and opposing the program and that he had questions about transparency and the dollars involved. The transcript cuts off before any vote or further action on HB 524.

Transcript Highlights:

• They understand how that's going to transact.
• Just as eBay brokers the transaction between a seller and a buyer, just as Lyft or Uber brokers the transaction
• And this is an example of a credit transaction.
• Is there still not enough money in a transaction where you can exclude 6.25% from a 2% transaction fee
• The Illinois law calls for a $1,000 per transaction fine.

Summary: The Special Commission on the future of credit card payments and their impacts on small businesses heard extensive testimony from credit unions, retailers, payment industry groups, and a credit card issuer. Much of the discussion focused on proposed state laws that would limit interchange fees on the tax and tip portions of transactions, especially Illinois’s Interchange Fee Prohibition Act and similar efforts in other states. Witnesses opposing the proposals argued that interchange helps fund fraud protection, cybersecurity, rewards, and access to credit, and warned that state-by-state rules would create a patchwork that could harm state-chartered banks and credit unions, raise compliance costs, and reduce consumer access to credit. Supporters of reform argued that swipe fees are a significant burden on merchants, especially small businesses, and that current pricing is opaque and often bundled with other processor charges. Several witnesses emphasized that the current payment system provides major benefits to merchants and consumers, including security, convenience, faster settlement, online commerce, and broader access to credit. One witness from Capital One said the industry’s losses from fraud and default are substantial and that interchange helps offset those risks; he also noted that merchants already have some tools, such as surcharging where allowed and negotiating clearer processor contracts. Retail representatives and the National Retail Federation countered that small businesses are under pressure from many costs and that interchange and related fees remain a real pain point, with some urging the commission to consider reforms that would return more money to businesses without disrupting the system. There was also discussion of the recent Visa/Mastercard antitrust settlement, with industry witnesses describing it as a significant merchant win that includes temporary rate reductions, more surcharge flexibility, and the ability to decline certain card tiers. No votes were taken. The meeting concluded after all scheduled testimony was heard, with the commission chair saying the session had been productive and that the committee would continue gathering testimony and written comments before making recommendations.

Transcript Highlights:

• </c> of that dollar on chain to transact of that dollar on chain to transact with.<00:20:51.840><c> So
• </c> component of the global transaction component of the global transaction volume<00:26:22.080><c>
• ><00:31:58.960><c> of</c><00:31:59.120><c> the</c> transactions and the structure of the transactions
• </c> own payments, our own uh transactions. own payments, our own uh transactions.
• ><c> transactions</c><01:37:20.800><c> that</c> over 71 billion transactions that over 71 billion transactions

Summary: The commission met with a quorum, approved the agenda, and approved the November 12 minutes after a motion, second, and unanimous voice/online consent. The chair said the meeting would include two presentations—one from Noah Herman of Fortress Global and one from John Kicko and team from Hedera—followed by discussion of the commission’s next steps and public comment. The chair also noted he was still seeking a clerk for note-taking. Herman’s presentation focused on stablecoins, blockchain use cases, and operational considerations for states and other institutions. He described Fortress as an enterprise crypto-wallet and treasury platform serving corporates, governments, and nonprofits, and used examples such as Save the Children and a large global commodities firm to illustrate custody and treasury management on blockchain rails. He said stablecoins are designed to maintain a U.S. dollar peg, are increasingly backed by treasuries and subject to greater transparency, and are being adopted by major firms and payment companies because they can improve speed, reduce cost, and simplify payments. He also highlighted market growth, including claims that stablecoins now represent a significant share of on-chain activity and are a major holder of U.S. Treasuries. He identified custody as a key issue for state and institutional use, outlining qualified custody, managed custody, and self-custody models. He said the main practical challenge for the commodities client was moving funds safely and quickly across global time zones and that blockchain rails could solve problems that traditional banking rails could not. He framed the broader trend as one of accelerating institutional adoption, citing recent acquisitions and product launches by Visa, Stripe, Citi, and PayPal as evidence that stablecoin infrastructure is becoming mainstream.

Transcript Highlights:

• privilege tax transactions involving tangible personal property.
• They've always sourced their transactions... ...for decades.
• So as it relates to feed shop transactions...
• We tax our transactions similar to what Mr.
• We tax our transactions similar to what Mr. Scott explained.

Committee: House House Ways & Means Committee of Reference

Summary: The committee first took up House Bill 2290, which would clarify transaction privilege tax sourcing rules for tangible personal property by specifying that servers are not used to determine where an order is received and by defining business location. The sponsor and supporters argued the bill simply codifies existing origin-based treatment for Arizona businesses and provides certainty, while the League of Arizona Cities and Towns and ATRA warned it would shift revenue, create compliance problems, and potentially subject businesses to multiple tax rates depending on distribution or pickup locations. The Department of Revenue said it was neutral, noted a 2023 draft ruling had reflected a legal analysis of the issue but was never finalized, and said the bill would address a real need for clarity. After extensive debate over examples involving feed stores, Target, pizza delivery, and online orders, the committee voted 5-3 with one absent to return HB 2290 with a do pass recommendation. The committee then heard House Bill 2373, which would add a space on the individual income tax return for taxpayers to voluntarily contribute part of a refund to the Veterans Donations Fund or Veterans Service Organization Fund. The sponsor and a veterans policy advocate said the measure would give taxpayers a simple way to support veterans organizations, with examples from Colorado and local veterans projects. The bill passed unanimously, 8-0 with one absent, and was returned with a do pass recommendation. Finally, the committee considered House Bill 2143, a technical PSPRS measure that would limit the 5% ownership cap to publicly traded corporations. PSPRS representatives said the change would align the statute with its intended purpose, reduce unnecessary workarounds and legal costs, and preserve broader investment flexibility while maintaining other risk controls. Members discussed how the cap compares with ASRS and other retirement systems, and the bill was still under discussion at the end of the transcript.

Transcript Highlights:

• Or more of the transaction amount.
• or a pin is being used with a transaction.
• You're saying if a transaction is fraudulent, but there was a tax on the transaction, and then if it
• So every transaction has a tax, correct?
• Withdrawal fees because those transactions are...

Committee: House Banking and Finance