Transcript Highlights:

• facilities where they’re able to offload with their utility some portion of electricity through contracts
• It depends on the contracts they have with the serving utility that may be taking that... ...differently
• It depends on the contracts they have with the serving utility that may be taking that power from them

Summary: The committee heard several bills and took testimony on each. SB 6013 would update ski lift terminology in State Parks law to include aerial tramways, tows, and conveyors; the sponsor and Washington State Parks said it is a simple technical update and a companion to a House bill previously passed by the committee. SB 6291 would extend from two to four years the time a non-certified on-site wastewater inspector may work under supervision before becoming certified; the sponsor and local public health witnesses said the change would help retain staff because the certification exam is difficult, offered only twice a year, and often results in turnover if the deadline is missed. The committee also heard ESB 6246, which would change policy for emissions-intensive, trade-exposed facilities under the Climate Commitment Act. The bill would require Ecology to produce a new report on post-2034 allowance reductions and leakage risk, and would require EITEs to submit periodic assessments of technically and economically feasible emissions-reduction options, reviewed by a licensed engineer. Supporters said the bill is a necessary first step to plan for decarbonization while keeping industry in Washington; environmental groups urged stronger third-party verification and clearer reporting, while industry groups supported the general framework but asked for changes on leakage analysis, confidentiality, and penalties. Ecology supported the overall direction but raised concerns about implementation language and resource needs. Finally, SSB 5982 would expand Clean Energy Transformation Act coverage to include port districts that distribute electricity and certain large self-generating or affected market customers, while preserving some exemptions for pre-existing cogeneration and certain PUDs. Supporters said the bill closes loopholes so all new generation is subject to clean electricity standards, especially as ports and data centers explore behind-the-meter or fossil generation. Opponents from industrial and business groups argued the bill could sweep in facilities that were not intended to be covered and could create additional costs during a period of tight power supply. Ecology and Commerce testified that the bill would clarify CETA but noted possible effects on no-cost allowance allocations under the Climate Commitment Act. No votes or final actions were taken in the hearing.

Transcript Highlights:

• I think the state should contract with some firm to be able to develop a template that's then shared
• I think the state should contract with some firm to be able to develop a template that's then shared
• I think the state should contract with some firm to be able to develop a template that's then shared

Committee: Senate Community Affairs

Keywords: 999, senate, all

Summary: The committee heard and approved several bills on water quality, public safety, utilities, and transparency. CS/SB 848 on stormwater treatment and water quality enhancement areas was presented as a follow-up to prior water quality legislation and was reported favorably with no opposition. SB 28, a claim bill for Reginald Jackson against the City of Lakeland, was also reported favorably. CS/CS/SB 658, a bipartisan child drowning prevention bill for rental properties, drew extensive testimony from child advocacy, drowning prevention, and autism advocates who described Florida’s high child drowning rates and supported requiring at least one pool or water-safety feature at short- and long-term rentals; the committee adopted two amendments, including one requiring license applicants to certify compliance, and the bill was reported favorably. The committee also approved CS/SB 1724 on municipal utility services, which addresses outside-city utility service agreements, revenue use, rate limits, and customer meetings; an amendment added gas utilities back into the bill. CS/SB 934 on Florida Keys areas of critical state concern was amended to remove a section viewed as conflicting with the Live Local Act and then reported favorably. SB 1622, creating a one-time waiver for certain late-filed financial disclosure fines, was supported by speakers and reported favorably. CS/CS/SB 260 on electric vehicle storage at towing facilities was amended to focus on storage only and to limit the extra fee period until inspection clears fire risk; the bill drew mixed testimony from insurers, towing-related interests, and fire officials, but was reported favorably. Later, SB 1264 on private schools was presented as easing zoning and occupancy barriers for small schools and microschools, with supporters saying it would help meet demand for school choice; members raised concerns about local implementation, but the bill was reported favorably. CS/CS/SB 1014 on municipal utility service to properties outside city limits was amended to apply only to residential properties and to clarify capacity and annexation-related exceptions; it was supported by local-government and environmental testimony and reported favorably. CS/SB 1102, expanding the local government infrastructure surtax to include body camera costs, was amended so any use would require a new referendum and was reported favorably. Finally, SB 1566 on local government spending and transparency required online posting of budgets and related information, drew testimony from counties, cities, and transparency advocates about costs and uniform templates, and was reported favorably after amendment, with several senators noting concerns for smaller local governments while supporting the transparency goal.

Transcript Highlights:

• It depends upon the contract you entered when you entered that service.
• It depends upon the contract you, are treated equally when it comes to benefits.
• It depends upon the contract you entered when you entered that service.

Committee: House House Federalism, Military Affairs & Elections Committee of Reference

Summary: The committee first took up HB 2663, which expands military leave protections by aligning state law language with federal military orders and clarifying that state and non-state employees called to service or training are covered. Representative Pena said the bill was intended to remove confusion and had no material impact on benefits. After brief supportive discussion, the committee voted 7-0 to give HB 2663 a do pass recommendation. The committee then heard HB 2976, a bill establishing due process requirements before state or county entities can alter a justice of the peace’s statutory authority and clarifying the limits of administrative control over justice courts. Representative Hernandez and two Pima County justices of the peace testified in support, describing administrative orders that had removed local control without notice, findings, or a clear path to restoration. Leanna Garcia of the Arizona Supreme Court opposed the bill, arguing it conflicted with the Constitution’s grant of administrative supervision to the Supreme Court and that the court already uses complaint-driven oversight, education, and intervention when needed. After extensive debate over constitutional authority, due process, and the role of elected JPs, the committee voted 6-1 to recommend HB 2976 do pass. Next, the committee considered HB 2406, which directs the Arizona Department of Veterans’ Services to study veterans’ awareness of available state, local, and federal benefits and report recommendations to improve outreach. Supporters said many veterans do not know the full range of benefits and that the study could identify gaps in awareness and help guide future outreach. Members questioned what exactly would be studied and whether a study was necessary, but several said the testimony clarified the bill’s purpose. The committee approved HB 2406 with a 5-1-1 vote. Finally, the committee heard HB 2226, which requires courts at initial appearance to ask whether a defendant is a veteran so eligible cases can be referred to veterans programs or treatment/diversion options. Testimony in support said the inquiry would help identify veterans early and connect them to services at no cost. A member raised a Fifth Amendment concern that veteran status could be incriminating in some cases; the bill’s supporter agreed to an amendment clarifying that the answer could not be used against the defendant in later proceedings. The transcript ends during discussion of that proposed amendment, before a final committee vote on HB 2226 is shown.

Transcript Highlights:

• The fiscal note is $9 million, but we want a binding contract with both parties.
• We just heard a commitment from both parties that they would be willing to work on a contract and make
• heard the executive director say that he was going to get with his legal counsel and try to draft a contract

Committee: House Local Government, Elections and Pensions

Summary: The committee first met in executive session and voted to pass House Bill 2125, which drew some concern from Rep. Woods about subpoena power for the Secretary of State, and House Bill 1812, which passed unanimously. The committee then moved to public hearing on House Bills 2387 and 2480, both aimed at reinstating Missouri’s presidential preference primary and adjusting absentee voting rules. Sponsors Rep. Veit and Rep. Banderman argued the primary would increase participation, make Missouri more relevant in presidential politics, and better reflect voter preferences, while also proposing changes to the in-person absentee window to reduce overlap with April elections and encourage in-person voting. Testimony in support came from the Missouri Republican Party, the Missouri Democratic Party, the Missouri Voter Protection Coalition, ACLU Missouri, Missouri Farm Bureau, and several individuals. Supporters emphasized broader voter participation, the value of a primary over caucuses, and the need to make Missouri’s presidential process more accessible and visible. Party representatives said they were willing to work on binding language so primary results would inform or bind delegate selection, and Democrats said their rules already bind delegates to primary results. Several members said they would be more comfortable supporting the bills if the primary were made binding by statute and if the primary were closed to party members only. Opposition focused on the fiscal cost, the nonbinding nature of the primary as written, and concerns that the bill could mislead voters into thinking they were directly electing a nominee when delegates are still chosen through caucus/convention processes. Witnesses and clerks also objected to shrinking the excused in-person absentee period from six weeks to three, warning it could create confusion and burden election offices. The committee heard no final vote on HB 2387 or HB 2480 before adjourning.

Transcript Highlights:

• decrease because of federal changes, offsetting some of the need for increases to Medicaid managed care contracts
• .increase the general fund revenue for the department by 12%, what it also does is that it moves contract
• the Department of Veterans Services, and we don't provide services without money and services to contract

Committee: Senate Senate Finance

Keywords: 996, all

Transcript Highlights:

• Well, it pretty much goes to contracts.
• We have three staff who really manage 50 contracts worth about $1.76 million to do all that work.
• of Licensing to convene a workgroup to study and recommend a statutory framework for e-motos, and contract

Bills: SB5234 , SB6110 , SB6176

Committee: Senate Transportation

Keywords: snowmobile, snowmobile registration, vehicle registration fees, registration fee, Department of Licensing, DOL, recreational vehicles, winter recreation, vintage snowmobile, parks and recreation, vehicle license fee, RCW 46.17, fee schedule, renewal fee, initial fee, Washington state, electric-assisted bicycles, electric motorcycles, transportation regulation, safety standards

Transcript Highlights:

• The National Guard contracts with an architect and engineer for The National Guard contracts with an
• $35,000 of professional fees, that they can do various projects without going out to bid for another contract

Bills: SB2401 , SB2402 , SB2403 , SB2404

Keywords: SB 2401, North Dakota, Century Code, occupational therapy, occupational therapy board, criminal history record check, background check, licensee investigation, physician continuing education, medical license renewal, nutrition education, metabolic health, chronic disease prevention, health occupation boards, medical board, licensure fee, audit response, disciplinary action, Title 43, board of medicine

Summary: The Senate convened with prayer, roll call, and a quorum present, then took up second reading and final passage of several House bills related to the Rural Health Transformation Program and other matters. House Bill 1621, requiring the presidential fitness test in school physical education with exceptions and a delayed effective date, passed 43-3. House Bill 1623, appropriating federal rural health transformation grant funds and creating a related loan program and reporting structure, passed 46-0 after extensive debate about using the federal money for community health, infrastructure, and sustainability. House Bill 1622, joining the physician assistant licensure compact, also passed unanimously 46-0. House Bill 1625, authorizing the Ray Richards Golf Course land sale to support a Grand Forks transportation project and golf course improvements, passed 46-0. House Bill 1626, clarifying that the primary residence credit is applied after the early payment discount so taxpayers receive the full $1,600 benefit, passed 40-6.

Transcript Highlights:

• Consumer Protection Act, or CPA, prohibits various anti-competitive business practices, including contracts
• Qualifying material changes include any merger, acquisition, or contracting affiliation between two or
• system, or provider organization is a party to a transaction involving a merger, acquisition, or contracting

Bills: HB2255 , HB2320 , HB2548

Committee: House Civil Rights & Judiciary

Keywords: litigation finance, legal funding, lawsuit, financial services, access to justice, firearm regulation, manufacturing, safety standards, background checks, license requirements, health care market standards, hospital consolidation, merger review, health care transaction notice, attorney general review, antitrust, provider organizations, hospital systems, contracting affiliation, material change

Transcript Highlights:

• We work collaboratively with the managed care plans in Medi-Cal that have contracts with those hospitals
• We work collaboratively with the managed care plans in Medi-Cal that have contracts with those hospitals
• We just had one company write a billion dollars' worth of contracts off just to get out of here.

Committee: Senate Rules

Summary: The committee first handled several routine items, approving three gubernatorial appointees not required to appear: Hampus Eitsiter to the Boating and Waterways Commission, Peter Stern to the California Horse Racing Board, and Dean White to the State Mining and Geology Board. It also approved referral of bills to committees and floor acknowledgements, all by 5-0 votes. The committee then heard Tyler Sadwith’s appointment as Chief Deputy Director of Healthcare Programs at the Department of Health Care Services. Sadwith said his priorities would be protecting Medi-Cal access amid federal changes and continuing CalAIM and behavioral health reforms. Senators questioned him extensively about rural and financially distressed hospitals, Medi-Cal reimbursement, eligibility redeterminations, work requirements, fraud controls, dental access, labor and delivery closures, and CalAIM’s evaluation. He said DHCS is working on expedited payments, hospital monitoring, county technical assistance, targeted audits, and community supports such as medically tailored meals. Public commenters from county, hospital, and care organizations supported his confirmation, and the committee voted 5-0 to send the appointment to the full Senate. The committee also heard from Dr. Chris Thayer, nominated to lead the Office of Environmental Health Hazard Assessment. Thayer described OEHHA’s role as providing transparent, scientifically rigorous health assessments and risk communication to inform other agencies and policymakers. Senators focused on the agency’s use of models versus real-world data, CalEnviroScreen, Prop 65, PFAS, wildfire health impacts, and how OEHHA communicates risk to the public. Thayer said the office relies on a mix of data sources where direct evidence is limited, is updating CalEnviroScreen, and is working to reduce Prop 65 over-warning through guidance and outreach. The discussion did not reach a final vote on his appointment in the portion provided.

Transcript Highlights:

• My name is Joshua Schoff, and I represent Craft Contracting and Consulting, a factory-built housing manufacturer
• Or contract it out for third-party, but let's not do triple-check.
• Or contract it out for third-party, but let's not do triple-check and then pass on the cost to the applicant

Summary: The committee heard public testimony on several housing-related bills. On SB 6054, Senator Hunt’s bill to prohibit common-interest community rules from blocking wildfire home-hardening materials, staff explained that HOA and condominium governing documents could still impose reasonable aesthetic rules, but not ones that make fire-resistant materials infeasible or more than 10% costlier. The sponsor described the bill as a response to HOA requirements for less fire-resistant roofs. Testifiers generally supported the goal but objected to the 10% cost cap, saying it could limit community-specific design choices and create unintended conflicts with aesthetic standards. The committee also heard SB 601 on scissor stairs in the building code. The sponsor and supporters from Futurewise, architects, and housing advocates said scissor stairs could make mid-rise and high-rise housing more efficient, reduce corridor space, and improve unit layouts without sacrificing life safety. They noted the design is used in places like Vancouver, B.C. and in some Washington venues, and argued the bill would help lower costs and increase housing supply. No opposition was presented during the hearing. For SB 6015 on permit-ready residential plans, staff said L&I would create a process for publishing approved plans for factory-built housing and certain small residential types, with local governments required to approve applications using those plans on qualifying lots starting in 2027. Supporters from builders, architects, Habitat for Humanity, and Sightline said statewide standard plans could reduce duplication, speed permitting, and help scale factory-built and potentially site-built housing. Counties and L&I were supportive in concept but raised concerns about mandating local adoption of model ordinances and about whether the bill should include site-built plans as well. The committee also heard SB 5470 on detached ADUs outside urban growth areas, with supporters saying it would help rural homeowners and intergenerational living, while Futurewise opposed the bill as written and sought tighter density, lot-size, and metering limits. Finally, the committee heard SB 5729, a permit-streamlining bill that would deem completeness for applications prepared by licensed professionals and limit local governments to three review cycles. Builders and business groups supported it as a way to reduce delays and costs, while counties, cities, and Futurewise argued it could lead to more denials, less communication, and unintended liability concerns. In executive session, the committee adopted the proposed substitute for SB 5884 and moved it forward with a do-pass recommendation to Ways and Means.

Transcript Highlights:

• Ecology is currently in the process of contracting for a statewide litter study that should be complete
• Ecology is currently in the process of contracting for a statewide litter study that should be complete
• Ecology is currently in the process of contracting for a statewide litter study that should be complete

Bills: HB2421 , HB1652 , HB2367 , HB2284

Committee: House Environment & Energy

Keywords: 6PPD, tires, environmental impact, public health, chemical regulation, HB1652, Salish Sea Protection and Marine Clean Fuels Act, marine fuel, low-sulfur fuel, sulfur emissions, ocean-going vessels, shipping, maritime pollution, air quality, particulate matter, Department of Ecology, port visit, regulated waters, fuel switching, vessel emissions

Transcript Highlights:

• Ecology is currently in the process of contracting for a statewide litter study that should be complete
• Ecology is currently in the process of contracting for a statewide litter study that should be complete
• Ecology is currently in the process of contracting for a statewide litter study that should be complete

Summary: The committee heard testimony on three main bills. House Bill 2284 on reducing litter would remove a scheduled increase in plastic bag thickness, preserve the existing penalty on thicker bags, and create a litter solutions task force to use existing data and recommend further actions. Supporters from business, retail, agriculture, food industry, and the Department of Ecology said the bill takes a data-driven approach and could help reduce litter without imposing a full bag ban, while Ecology noted it already has a statewide litter study underway and raised cost and membership concerns. Opponents and other commenters generally favored the bill’s direction but emphasized the need for more study and careful implementation. No vote was taken. House Bill 1652 would require certain ocean-going vessels in Washington waters to use fuel with no more than 0.1% sulfur, with recordkeeping, Ecology oversight, penalties, and a substitute clarifying vessel coverage and exemptions. The prime sponsor and environmental and public health advocates said the bill would reduce air and water pollution from scrubbers and protect the Salish Sea, orcas, salmon, and nearby communities. Ports, shipping interests, and industry groups raised concerns that the bill could effectively discourage scrubbers, create burdens for irregular callers and cargo traffic, and affect port competitiveness, while some said the bill should be narrowed or further stakeholdered. The hearing also included discussion of a proposed substitute and possible impacts on vessels and port operations. House Bill 2367 would end special coal-related exemptions by limiting the cap-and-invest exemption to pre-2026 emissions, removing limits on additional greenhouse gas regulation for the coal plant, and repealing coal sales and use tax exemptions. Supporters said the bill would align state law with the planned closure of the Centralia coal plant, reinforce Washington’s climate policies, and remove outdated carve-outs. Business and petroleum representatives warned that if the plant were brought back into the cap-and-invest program, the allowance market could be affected and Ecology might need flexibility to adjust the program. The committee heard extensive testimony on all three bills but took no recorded votes or final action in the transcript.

Transcript Highlights:

• Species Act would allow landowners to voluntarily enter into habitat conservation plans, which are contracts
• I want to emphasize that again: they're contracts.
• Given those questions, Washington Farm Forestry Association contracted with the University of Washington

Committee: House Agriculture & Natural Resources

Keywords: 904, all

Transcript Highlights:

• Indermark and I stepped away from that capacity meeting where the contracted folks that were hired to
• You know, we have contracted providers that come in, but we also need to have the space to run small
• We have been partnering and pulling in our contracted providers that currently work with our parole regions

Bills: HB1544 , HB2219 , HB2253

Committee: House Early Learning & Human Services

Keywords: child welfare, risk assessment, investigation, child abuse, neglect, HB 2219, child care licensing, early learning, DCYF, Department of Children Youth and Families, Washington child care, preschool licensing, family child care, child care centers, nature-based child care, outdoor preschool, mixed-age ratios, staff-to-child ratio, group size, zero tolerance

Transcript Highlights:

• That is why we don't contract with those facilities to begin with, right, and why we don't have jurisdiction
• That is why we don't contract with those facilities to begin with, right, and why we don't have jurisdiction
• It was kind of like a contract that has been made that we are now reversing, and the health, mental,

Committee: Senate Health

Keywords: 987, senate, all

Transcript Highlights:

• And so we have contracts and balance that system, and that's how that falls into place for us.
• hadn't realized that the educators are technically employees of Omak School District, but they're contracted
• And so we are not contracting with anyone outside of Valley School District.

Summary: The committee met to hear an overview of Washington’s alternative learning experience (ALE) programs and then an update on artificial intelligence in schools. OSPI’s Anissa Sherritt explained that ALE is a course-level funding designation for instruction that occurs partly or wholly away from the traditional seat-time model, with online, site-based, and remote course types. She emphasized that ALE is still basic education, subject to the same public school requirements, and that OSPI provides technical assistance, annual reporting review, and program reviews. Representatives from several programs described different models: Washington Virtual Academy (a large online ALE operated through Omak School District and partnered with for-profit Stride), Columbia Virtual Academy in Valley School District (a district-run, nonprofit online/remote program), Pearl in Quilcene (a K-8 remote parent partnership program), and River Home Link in Battleground (a site-based hybrid program). They discussed student supports, special education, enrichment, family choice, transportation, and how they measure outcomes. Members asked for follow-up information on funding, demographics, racial and ethnic data, multilingual learners, and post-graduation outcomes, and OSPI agreed to provide additional data where available. The committee then heard from OSPI and several districts about AI guidance and implementation. OSPI’s Holly Ryan Calloway described the agency’s human-centered AI framework, three guidance documents for schools, statewide professional learning, an AI innovation summit, and new AI literacy and informatics course frameworks and CIP codes. Quincy School District described a multi-year effort to integrate AI by centering student needs, creating district policy and classroom guidance, and training teachers to use AI responsibly while building an AI readiness plan from elementary through high school. Peninsula School District described its AI action research team, teacher professional learning, and classroom uses of generative AI to support science instruction, communication, and prompt engineering, while stressing that AI should enhance rather than replace learning. Members raised questions about privacy, energy and water use, prompt engineering, workforce and university connections, and the need for clear standards and ongoing educator training. No votes were taken.

Transcript Highlights:

• Hidden in the contract terms... ...in three months or incur interest charges.
• Hidden in the contract terms, they even gave him a claim on future benefits, meaning that if he got an
• illegal and have zero oversight for their aggressive sales tactics, false promises, and deceiving contracts

Summary: The Assembly convened after a quorum call, prayer, and pledge, then handled a long consent and concurrence calendar. Early procedural actions included moving several bills to the inactive file, waiving the floor amendment deadline for certain measures, rescinding prior action on SB 733, and approving a motion to withdraw AB 710 from committee to the third reading file by a 42-12 vote. The chamber also re-referred AB 406 to Labor and Employment and later AB 754 to Housing, while taking up numerous Senate and Assembly measures out of order to accommodate authors and guests. The body adopted several resolutions recognizing October 2025 as California Promotoras Month (HR 58), National Fried Rice Day and National Rice Month (HR 71), Direct Support Professional Recognition Week (HR 70), and All California Day (HR 67). Members also concurred in Senate amendments on a wide range of bills covering insurance, horses, emergency vehicles, health facilities, restitution, education, tribal regalia at graduation, behavioral health, air pollution, energy, dams, greenhouse gases, foster youth, court interpreters, tenancy language access, patient privacy notices, discrimination in school facility rentals, hospital visitation rights, diversion, agriculture, insurance studies, electricity, and environmental stewardship. Most of these measures passed with little or no opposition, though a few drew recorded noes. Several higher-profile policy bills drew debate. SB 694 on veteran claim assistance generated the most extensive discussion, with supporters arguing it would stop predatory, unaccredited companies from charging veterans for VA claims help, and opponents warning it could reduce veterans’ choices and should be paired with broader fixes to county VSO access; the bill ultimately passed 46-0. Other notable actions included concurrence on SB 576 limiting loud streaming ads, SB 512 on transportation tax initiatives, and SB 785 creating a tax credit for durable medical equipment for children with complex medical needs. The Assembly also concurred in SB 250 on Medi-Cal provider directories, SB 831 on the Geological Survey, SB 788 on CPA regulation, SB 456 on muralist licensing, SB 72 on the California Water Plan, SB 76 on used-car fee protections, SB 246 on rural health workforce support, SB 484 on coastal affordable housing, SB 680 on sex offender registration, SB 695 on climate-resilient highway projects, and SB 783 on outdoor advertising. Votes were overwhelmingly favorable across the board, with the chamber repeatedly adopting Senate amendments and resolutions by voice vote or recorded roll call.

Transcript Highlights:

• tax on the project, they apply to the Department of Revenue, providing proof of award as well as contracts
• We contracted with the Rand Corporation to conduct this work, and Rand estimated the quantity of THC,
• We contracted with the Rand Corporation to conduct this work, and Rand estimated the quantity of THC,

Summary: The meeting began with JLARC’s biennial executive committee elections. After confirming a quorum, members unanimously elected Representative Pollet as chair, Senator Wagoner as vice chair, Representative Orcutt as secretary, and Senator Solomon as assistant secretary for the 2025-27 biennium. The committee also approved the May 14 meeting minutes unanimously. Chair Pollet then outlined a commitment to more member input on audit scope and coordination with the State Auditor’s Office. Staff presented a preliminary report on Washington State recreation boating programs. They reported that six agencies administer boating-related activities, that the state collected about $108 million in boating-related revenue in 2021-23, and that $86 million was spent, mostly on infrastructure and water access, environmental protection, boater safety, and marine law enforcement. Staff said Washington’s boating laws and programs are broadly similar to other states and noted that the final report is expected in September. JLARC then reviewed several tax preferences. For natural gas used as a transportation fuel, staff said the preferences reduce fuel costs but did not meet emissions-reduction targets because fewer vessels and vehicles converted to natural gas than expected; staff recommended continuing some exemptions and modifying reporting requirements. For travel agents and tour operators, staff said the preference continues to provide tax relief, but large beneficiaries’ savings are rising while small beneficiaries’ use is declining, leading to recommendations to continue the small-business rate and add or revise performance metrics. Staff also reviewed a nonprofit low-income housing property tax exemption, concluding it helps developers build homes as intended but that the performance metric should better reflect housing outcomes; they recommended the legislature decide whether to continue or modify it. Other reviews covered multipurpose senior citizen centers, disabled veteran adapted housing, trade convention attendance, agricultural fertilizer and seed wholesaling, hazardous substance tax treatment for pesticides, and silicon smelter energy preferences, with recommendations ranging from continuation to expiration depending on whether the stated objectives were met. The committee then adopted the final cannabis market study for distribution. Staff reported that Washington businesses produced two to three times more cannabis than retailers sold in 2023, and that inaccurate and incomplete reporting limits the Liquor and Cannabis Board’s ability to regulate the market. The board said it concurs with the recommendations, including developing a plan for a new data system and considering broader social equity options. Finally, staff presented the proposed final report on Department of Health oversight of hospital data reporting, inspections, and complaints. Staff said DOH was late on most acute-care hospital inspections, had not fully verified third-party inspection standards, and did not adequately review adverse event correction plans or assess language access barriers in its complaint system. DOH said it concurs with all six recommendations and has already made some transparency improvements, including a public dashboard for adverse event reporting.

Transcript Highlights:

• In a lot of the contracts, the last thing I'll say is they will put it in their contracts.
• Yeah, so our approach on this is actually in the procurements and contracts is that all the AI use has

Summary: The committee held a work session focused on technology in government, AI, broadband, and digital equity. Seattle CTO Rob Lloyd described the city’s AI strategy, emphasizing responsible use, privacy, security, community input, and data strategy. He said Seattle is using small pilots and partnerships to test AI for tasks such as public records processing, infrastructure inspection, and permitting, while keeping humans as the final decision-makers. Members asked about bias, liability, training on best practices, labor involvement, and public records; Lloyd said AI should remain an assistant tool, not a replacement for human judgment, and that Seattle is still testing solutions for records requests and permitting. WATech CTO Nick Stow and Deputy Director Mark Quimby discussed the state’s broader AI policy, the generative AI executive order, a sandbox with more than 15 agencies, and use cases including a resident portal, cybersecurity, and wildfire detection. They stressed consent, closed systems, human-centered design, and the need to govern all forms of AI, not just generative AI. Committee members raised concerns about federal data access, labor issues, and wildfire detection effectiveness. Spokane County IT staff described a more restrictive approach to AI, citing privacy, bias, and cyber risks. The county standardized on Microsoft Copilot as its only approved chat-style AI tool, blocked other AI chat platforms, and requires human review of all AI-generated content. They said AI is also being used by criminals for phishing and deepfakes, underscoring the need for strong policy and security controls. The committee also received an update from the Attorney General’s AI Task Force. Yuki Ishizuka said the task force has 19 members and eight subcommittees covering ethics, consumer protection, labor, health care, public safety, education, government efficiency, cybersecurity, and industry/energy. The task force is working toward an interim report due December 1, 2025 and a final report due July 1, 2026, and is reviewing recommendations through public forums and advisory committees. Ishizuka warned that a federal budget reconciliation provision could bar states from enforcing AI regulations for 10 years, and several members voiced support for state authority and asked about possible 2026 legislation. The committee then heard updates on broadband and digital equity. Commerce’s Dave Pringle said the BEAD broadband program is being reshaped by new NTIA guidance, which removed or reduced emphasis on several prior priorities, and Washington is now working under an expedited process to submit its state application by September 4. He noted that no projects have been built yet, that four counties did not receive applications in round two, and that the state is trying to keep applicants engaged through office hours and a shortened review window. The Office of Equity and the Digital Equity Forum reported increased participation, new members, and ongoing outreach to tribal, rural, and underserved communities, while previewing recommendations such as creating an interdepartmental digital equity team and improving data use. Finally, Lumen’s Robert Thoms described private-sector broadband deployment challenges, including permitting, regulation, and the economics of extending fiber, while noting continued investment in overbuild projects, a $30 low-cost service option tied to the former ACP, and work with the state, tribes, and libraries. No votes were taken; the meeting consisted of presentations and member questions.

Transcript Highlights:

• I've never worked in this area of the law, but do federal grants have the force and effect of a contract
• Are federal grants, do they have the force and effect of a contract?
• So we certainly think of this as an element of contract law, and hopefully that's how the courts will

Summary: The Assembly Budget Subcommittee on Accountability and Transparency held a hearing focused on three issues: federal funding cuts and delays, possible state revenue impacts from reduced IRS enforcement, and the fiscal effects of AB 218 on local governments. The Franchise Tax Board described how state and federal tax systems are closely linked, how most returns are filed electronically through software, and how FTB relies on IRS information sharing for compliance, fraud prevention, offsets, and nonfiler work. Members raised concerns that federal staffing cuts at the IRS could weaken audits of large corporations and reduce California revenue, and asked about VITA and ITIN filers; FTB said it was not aware of VITA reductions, noted ITIN returns are processed the same as other returns, and said ITIN filing appeared slightly down this year. The Department of Finance said it is monitoring federal developments, summarized the continuing resolution and reconciliation process, and noted that California lost nearly $940 million in earmarked federal projects under the CR, while major federal budget decisions remain uncertain until the President’s budget and later congressional action. The University of California reported substantial federal pressure on research, student aid, and health care. UC said hundreds of millions of dollars in federal awards have already been canceled, with additional threats to NIH and DOE facilities-and-administration rates, graduate fellowships, student loan repayment plans, international student visas, Pell Grants, and Medicaid/Medi-Cal funding. Committee members pressed UC on the effects of DEIA-related federal restrictions, the loss of clinical trials and research staff, and the impact on low-income students and patients. UC said it is pursuing litigation with the Attorney General and other institutions, but emphasized that court action is only a temporary solution and that sustained state and private support may be needed. The second panel addressed the fiscal consequences of AB 218, which extended the statute of limitations for childhood sexual abuse claims against public agencies. FCMAT presented a report with 22 recommendations, including better statewide data collection, financing mechanisms, a possible victims compensation fund, and prevention measures. Los Angeles County described a tentative $4 billion settlement tied to AB 218 claims, saying it will require reserves, borrowing, and long-term annual payments through 2050, while also forcing curtailments and cuts to vacant positions to preserve services. Members discussed insurance pools, retroactive premiums, unidentified future claims, and the need for a compensation fund or other financing tools. No formal votes were taken; the hearing concluded with public comment, including testimony from local health officials about nearly $400 million in terminated federal public health grants and the resulting layoffs and service impacts.