Transcript Highlights:

• Banks are not operating these accounts. Banks are now operating these accounts at a loss.
• Due to banking regulations, banks must seek to recoup those losses.
• I'm CEO of Winter Park National Bank.
• You've got treasury management services. You've got fraud protection services.
• Look at Signature Bank. Look at Silicon Valley Bank. Basically, they did the same thing.

Committee: Senate Fiscal Policy

Summary: The Committee on Fiscal Policy met and considered a wide range of bills, including early learning and special needs funding (SB 1102), Israel bond investment authority (SB 1674), Parkinson’s disease research at USF (SB 1800), mental health and substance use disorder reforms (SB 1620), veterans nursing home beds (SB 788), securities regulation updates (SB 988), labor pool regulation (SB 1672), Alzheimer’s awareness (SB 398), educator preparation (SB 1590), student mental health reporting (SB 1310), specialty license plates (SB 824), financial institutions and IOTA-related issues (SB 1612), transportation facility designations (SB 1408), utility worker protections (SB 1386), DNA testing grants (SB 1072), the Council on the Social Status of Black Men and Boys (SB 364), housing support for former foster youth and homeless students (SB 584), sex offender registration changes (SB 1654), migrant vessel disposal (SB 830), commuter rail indemnification (SB 916), juvenile justice revisions (SB 1344), aggravating factors in capital cases (SB 984), and a criminal offender substance abuse pilot program (SB 1140). Most bills were explained by sponsors, often with supportive testimony from affected agencies, advocacy groups, or industry representatives, and several were amended before final action. The committee adopted amendments on many measures, including clarifications and effective-date changes for SB 1102; technical changes to SB 1620 implementing mental health commission recommendations; a delete-all amendment for SB 1620; an amendment to SB 988; a consumer-disclosure amendment on SB 1612; and multiple amendments to SB 1408, SB 364, SB 584, SB 1654, and SB 1344. SB 1672 on the Labor Pool Act drew extensive public testimony in opposition from worker advocates, who argued repeal would weaken protections for temp workers and formerly incarcerated workers, and the bill was temporarily postponed to a later meeting without a vote. Several bills received notable testimony in support, including SB 584, where former foster youth described housing instability and the importance of campus housing and federal voucher coordination; SB 1386, which was backed by utility and industry groups seeking stronger penalties for assaults on utility workers; and SB 984, which drew opposition from the Florida Conference of Catholic Bishops over expansion of death penalty aggravators. The committee also heard support and opposition on SB 1612 regarding IOTA interest rates and legal aid funding, with bankers and civil legal aid representatives disputing the proper rate structure and whether the bill conflicted with Florida Bar rules. At the end of the meeting, the committee reported all voted-on bills favorably, including SB 1102, SB 1674, SB 1800, SB 1620, SB 788, SB 988, SB 398, SB 1590, SB 1310, SB 824, SB 1612, SB 1408, SB 1386, SB 1072, SB 364, SB 584, SB 1654, SB 830, SB 916, SB 1344, SB 984, and SB 1140. Members also requested to be recorded on various bills, and the committee adjourned after noting one remaining meeting would be lengthy.

Transcript Highlights:

• consequences for your actions, even if you are fired if you pressure a bank to cut off services to digital
• Bank stress tests.
• It was a bank run, and bank runs are incredibly damaging.
• We provide that service between two banks, and others want to provide it too.
• fewer community banks and more regional banks, or fewer regional banks and more Wall Street banks?

Bills: SB257

Committee: Senate Banking, Housing, and Urban Affairs Committee

Keywords: supply chain resilience, critical supply chains, critical goods, manufacturing, domestic manufacturing, reshoring, nearshoring, supply chain security, supply chain shock, supply chain disruption, critical infrastructure, emerging technologies, semiconductors, microelectronics, artificial intelligence, quantum computing, robotics, advanced manufacturing, blockchain, cybersecurity

Transcript Highlights:

• During the COVID-19 pandemic, the Department of Developmental Services authorized remote services for
• Services are available. SB 969 simply codifies the option for remote service delivery.
• 92% of food banks reported that their average service numbers increased during the shutdown.
• 92% of food banks reported that their average service numbers increased during the shutdown.
• Thank you for your service. ...veteran and strong support. Thank you for your service.

Committee: Senate Human Services

Summary: The Senate Human Services Committee heard several bills focused on developmental disabilities, food security, veterans, aging services, child care, and elder abuse reporting. SB 969 by Senator Reyes would make remote services for people with intellectual and developmental disabilities a permanent option; supporters said virtual programming improves access, continuity, and choice, and there was no opposition. SB 1025 by Senator Hurtado would create an Office of Food Security and Affordability to coordinate state food programs, improve CalFresh enrollment, and develop a 24-hour hotline; committee members raised questions about duplication, metrics, and oversight, but the bill advanced after discussion. SB 1052 by Senator Gonzalez would allow the State Council on Developmental Disabilities to appoint contingent authorized representatives so people with disabilities are not left without support if a family member becomes unavailable; supporters described immigration enforcement, illness, and family separation as reasons for the bill, and members discussed administrative burden and renewal procedures before the bill passed. SB 1077 by Senator Gonzalez would require CDSS to prepare for future federal shutdowns by creating a communications and contingency plan for CalFresh disruptions and a state-backed emergency food assistance mechanism; members discussed how it would work with existing CalFresh administration, and the bill passed. SB 1201 by Senator McNerney would seek federal waivers to protect vulnerable veterans from new SNAP work requirements and require referrals to county veterans service officers; supporters said the federal cuts would harm homeless, newly discharged, and disabled veterans, and the bill passed. SB 1261 by Senator Laird would let aging and disability resource centers continue operating through partner transitions so services would not be interrupted; supporters emphasized continuity of care and the bill passed. SB 1110 by Senator Becker would revise child care subsidy funding and stabilization rules for alternative payment programs and community providers; supporters said the current reimbursement structure is outdated, and the bill passed after the author said a budget-related provision would be removed. The committee also later voted SB 969, SB 1052, SB 1077, SB 1201, SB 1261, and SB 1110 out of committee, with the bills kept on call for absent members, and began hearing SB 991 on elder abuse reporting, where supporters argued that licensing records should distinguish abuse from lesser resident-rights violations so families and policymakers can better understand facility conduct.

Transcript Highlights:

• The California Association of Food Banks represents 42 food banks that partner with nearly 6,000 agencies
• I don't have, like, for across the board our food banks.
• I am with the Alameda County Social Services Agency.
• I am with the Alameda County Social Services Agency.
• We run about 42 food banks between here and...

Summary: The joint informational hearing focused on CalFresh enrollment, food insecurity in California, the recent federal shutdown’s disruption of SNAP benefits, and the long-term effects of H.R. 1 on eligibility, benefits, and state and county costs. Opening remarks emphasized that millions of Californians rely on CalFresh, that the shutdown briefly delayed benefits for the first time in the program’s history, and that state and local governments, including Alameda County, stepped in with emergency food aid and funding. Members also framed the issue as both a hunger and affordability problem, with several noting that California’s agricultural abundance contrasts sharply with persistent food insecurity. The first panel presented research and advocacy perspectives on food hardship. PPIC’s Tess Thorman described food insecurity rates, disparities affecting households with children and Black and Latino households, and the role of nutrition programs in reducing poverty. Nourish California’s Betzabel Estudio argued that hunger is a policy choice and highlighted campaigns to expand state-funded food assistance for immigrants, support reentry populations, and continue the CalFresh fruit-and-vegetable incentive program. The California Association of Food Banks’ Josh Wright said food banks are seeing sustained high demand, lower federal food supplies, and cannot replace CalFresh, while urging more state support for food purchasing, school meals, and SunBucks. The second panel reviewed CalFresh operations and participation. The California Department of Social Services reported that CalFresh participation has risen over the past decade, with the state closing much of the participation gap through outreach, simplified applications, and demonstration projects such as the Elderly Simplified Application Project and a minimum nutrition benefit pilot. Alameda County Social Services described local caseloads, application trends, and emergency food distributions during the shutdown, while also warning that H.R. 1’s work requirements, immigrant eligibility restrictions, and possible cost-sharing could reduce enrollment. A student CalFresh ambassador testified about the burdensome application and recertification process and urged more funding for campus basic-needs centers and outreach to reduce stigma and administrative friction. In the final panel, county, food bank, and policy witnesses described the shutdown response and the expected impact of H.R. 1. Alameda County Community Food Bank and the County Welfare Directors Association said counties, food banks, and community partners mobilized emergency funds, pop-up pantries, and food purchasing to bridge the shutdown gap, but warned that hundreds of thousands of Californians could lose benefits under the new federal rules. The California Budget and Policy Center began outlining the scale of federal cuts, noting that H.R. 1 will significantly reduce SNAP funding and shift costs to states. No votes or formal committee actions were taken; the hearing was informational and concluded with discussion of possible state responses, including backfilling benefits, preserving outreach funding, and improving administrative systems to protect enrollment.

Transcript Highlights:

• will need to precisely define which banking services are taxable and which ones are not.
• including but not limited to five specific banking services.
• ><c> or</c> on banking services the legislature or on banking services the legislature or the<00:57:31.920
• </c><00:57:35.160><c> services</c> precisely Define which banking services precisely Define which banking
• </c> limited to five specific banking limited to five specific banking services<00:57:46.839><c> that

Committee: Senate Taxes

Transcript Highlights:

• The Senate Committee on Banking and Financial Institutions will come to order.
• They will call their bank. They will be frustrated.
• Having her repeat it to me and then repeat it to a bank, and then that bank then repeat it to IC3, I
• Sometimes they send the information to the banking institutions, but the banking institutions don’t let
• and servicers that would be implementing it, and the whole state.

Committee: Senate Banking and Financial Institutions

Transcript Highlights:

• The Senate Committee on Banking and Financial Institutions will come to order.
• They will call their bank.
• And having her repeat it to me and then repeat it to a bank and then that bank then repeat it to IC3.
• Sometimes they send the information to the banking institutions, but the banking institutions don't let
• Access to fair and ethical services and capital.

Summary: The committee heard AB 801, which would require the Department of Financial Protection and Innovation to conduct fair lending examinations of lenders on a regular schedule. The author and supporters, including the Greenlining Institute and several housing and consumer groups, argued the bill was needed because federal fair lending enforcement has weakened and California borrowers of color continue to face lending disparities. Banking and credit union representatives opposed the bill as duplicative and costly, though they acknowledged the author’s amendments and continued negotiations. The bill was approved on a vote and re-referred to Judiciary, with some members voting no or not voting at first and later the measure passing on a fuller roll call. The committee then heard AB 871, which would strengthen elder fraud protections by requiring financial institutions to report suspected financial abuse to the FBI’s Internet Crime Complaint Center and notify customers of the report. The author and county and adult protective services supporters said the bill would improve pattern detection and help stop or reverse scams more quickly. Bankers opposed the customer-notification requirement, warning it could alarm seniors and that the reporting process would add operational burden, but the author and supporters said victim information is important for investigations. The bill passed with committee support and was re-referred to Judiciary. AB 1842 and AB 1847, both related to mortgage forbearance after major disasters and the Eaton and Palisades fires, were also heard. AB 1842 would create a statewide framework for forbearance after federally declared major disasters, and AB 1847 would extend relief for wildfire survivors; both bills were amended to narrow triggers, clarify repayment and documentation issues, and remove some reporting requirements. Supporters included local officials, consumer groups, and housing advocates, while mortgage and banking groups remained in opposition on some implementation points but said they were working toward compromise. Both bills were approved and re-referred to Judiciary. Finally, AB 2116, dealing with merchant cash advances and small business financing transparency, was heard with broad support from small business and consumer advocates and partial support from some industry representatives after amendments; opponents still raised concerns about disclosure authority and unconscionability standards. The bill was also approved and sent to Judiciary. The committee additionally adopted a consent calendar of unrelated bills.

Transcript Highlights:

• We're a food bank based in Brooklyn Park.
• Food banks offer some food.
• Food banks offer some food.
• We're also not a food bank.
• </c> foot shelf we we're also not a fot Bank foot shelf we we're also not a fot Bank Bank<01:24:54.760

Committee: Senate Health and Human Services

Transcript Highlights:

• It's giving you a service contract. Well, you get in and it's not even a service.
• But you weren't in the banking department? Didn't you do banking? Yeah. Yeah.
• bank a bank, a New Hampshire charter bank gets<01:07:34.400><c> up</c><01:07:34.480><c> to</c><01:07:
• Uh, if you look at state charter banks for state charter bank, right? Yeah.
• </c> outofstate banks. outofstate banks.

Summary: The subcommittee took up HB 164, dealing with homeowners and certain service agreements tied to residential real estate. Much of the discussion focused on whether the bill should be framed as prohibiting “service agreements” or more specifically as banning “future right to listing” agreements, and whether the bill should mirror Maine’s newer law. Mike Padmore of AARP New Hampshire presented suggested edits, including clarifying that the agreements are unenforceable, striking a provision at Roman 6C, and adding language making clear that registry of deeds staff are not liable when they record documents they are statutorily required to file. Bob Quinn of the New Hampshire Association of Realtors said the bill and Maine’s law reach the same result, but he preferred simpler wording and argued the bill should not include a two-year time limit because legitimate listing agreements should not create liens at all. Members and witnesses debated whether the bill should simply make the practice illegal outright, whether the Consumer Protection Act is the right enforcement vehicle, and whether the lien-removal process should be modeled on the recent undischarged mortgage bill. A consumer protection official said the bureau supports the statute and explained that under RSA 358-A, consumers could seek damages and equitable relief to strike a lien, while also noting that the bureau often uses the Consumer Protection Act as an enforcement tool. The committee also discussed narrowing the bill to residential real estate, with the sponsor and witnesses saying the problem has been seen in residential transactions and that commercial property was not the focus. The testimony described the underlying problem as companies, often national rather than New Hampshire-based, using long-term or future listing agreements to impose liens or penalties on homeowners, sometimes in connection with estate transfers or home sales. Witnesses said legitimate real estate listings do not normally place liens on houses, but these arrangements can include hidden or unclear penalties, including a reported 3% charge on home value. No vote was taken in the excerpt, but the committee appeared to be working through possible amendments and whether to adopt Maine-style language or a simpler New Hampshire-specific approach.

Transcript Highlights:

• or security services.
• As of today, our office has completed 11 of the 13 system-wide bank recs, including Core Technology Services
• bank access, access to PeopleSoft Finance, everything that we need to complete a bank reconciliation
• Are we done with Health and Human Services?” “Are we done with Health and Human Services?”
• They can't use food service funds.

Committee: Joint Legislative Audit and Fiscal Review Committee

Transcript Highlights:

• Realizing these savings will help the food banks keep their doors open and continue the good service
• bank that can answer.
• Food Bank, and the Frio County Food Bank.
• Food Bank and the Frio County Food Bank, and you were here to testify for the bill.
• We... ...Food Bank and the Frio County Food Bank, and you were here to testify for the bill.

Bills: HB 1039 , HB2289 , HB2370 , HB2404 , HB3066 , HB3076 , HB3117 , HB3118 , HB3169 , HB3178 , HB3179 , HB3182 , HB3196 , HB3241 , HB3377 , HB3500 , HB3567 , HB3715 , HB3954 , HB4098 , HB4109 , HB4222 , HB4226 , HB4412 , HB4659 , HB4682 , HB4683 , HB4755 , HB4926 , HB5165 , HB5562 , HB5596

Committee: House Ways & Means

Summary: The committee heard a long series of bills, most of them expanding or adjusting hotel occupancy tax or qualified hotel project authority for specific local governments. Measures discussed included HB 2404 for Childress County; HB 3066 for Allen’s Kalahari resort project; HB 4682 for Plano; HB 4683 for Anna; HB 3076 creating a project finance zone in Frisco; HB 3567 for Wichita County; HB 3715 for McAllen; HB 1039 for Alpine; HB 3182 for Burleson; HB 4926 for Grimes County; HB 4222 for Victoria County; HB 3377 for Katy; HB 4659 for Addison; HB 3241 for Georgetown; HB 4098 for Taylor; HB 3178 for Kerr County; HB 3179 for Mason County; HB 2289 for New Braunfels; HB 4412 for Kermit; HB 5165 for Monahans; HB 3500 for Bastrop; and HB 3169 for Carrollton. In each case, authors and local officials described tourism, convention, hotel, airport, or mixed-use development needs and argued the bills would help attract visitors, investment, and jobs. One non-hotel-tax bill, HB 4226, would exempt Texas food banks from sales tax on vehicle purchases and rentals, with testimony emphasizing the scale of food bank operations and the savings’ impact on meal delivery and disaster response. Testimony was generally supportive from city officials, economic development representatives, and industry groups such as the Texas Hotel and Lodging Association. Several witnesses described major private projects, including Kalahari in Allen, a proposed hotel and conference center in Addison, a mixed-use project in Georgetown, and a large development tied to Samsung growth in Taylor. For HB 4226, food bank representatives said the bill would help them purchase refrigerated trucks and other delivery vehicles, while an opponent questioned the fiscal note and the scope of the exemption. HB 4926 drew opposition from Camp Allen, whose representative argued a new county hotel tax would raise costs for guests and could hurt the retreat center’s operations. HB 3178 also drew an objection from a Kerr County resident who argued the tax would grow county government and pointed to event center losses, though the author said the revenue would support tourism-related county uses. The committee took no final votes on the bills in this transcript. After each bill was laid out and testimony concluded, the chair repeatedly asked whether there was objection to leaving the bill pending; in each instance, no objection was heard, and the bills were left pending. Several committee substitutes were offered and then withdrawn or noted as conforming drafts, but no bill was reported out or otherwise acted on beyond being left pending.

Transcript Highlights:

• or security services.
• So today is a for the review of the bank statements, canceled checks, and bank reconciliations.
• As of today, our office has completed 11 of the 13 system-wide bank recs, including Core Technology Services
• We started by going one bank Recreating bank recs from then.
• Are we done with Health and Human Services?” “Are we done with Health and Human Services?

Committee: Joint Legislative Audit and Fiscal Review Committee

Summary: The Legislative Audit and Fiscal Review Committee met to receive a series of audit presentations, beginning with approval of the prior meeting minutes and a review of the state’s annual comprehensive financial report (ACFR) for fiscal year 2025. The State Auditor’s Office and the Office of Management and Budget reported a clean opinion on the state’s financial statements and described continued growth in net position, strong general fund balance, and significant Legacy Fund investment income. Committee members asked about how the report reflects long-term finances and how North Dakota compares with other states, and OMB noted that the ACFR is based on audited actual results rather than budget forecasts. The committee then heard the North Dakota University System audit, which also received a clean opinion but included four findings: misreporting of Strategic Investment and Improvements Fund construction money, insufficient monitoring of service organizations, improper bank reconciliations at several campuses, and investment/cash recording issues at Bismarck State College. University System officials agreed with the findings and said corrective actions were underway, including internal review of bank reconciliations and greater use of shared services. Members also questioned practices such as campus use of certificates of deposit and whether repeated findings were being adequately addressed. Additional audits were presented for the State Fair Association, State Auditor’s Office, Workforce Safety and Insurance, Housing Finance Agency, Housing Incentive Fund, Job Service North Dakota, the Retirement and Investment Office, PERS, the Center for Distance Education, the Securities Department, the Commission on Legal Counsel for Indigents, the Ethics Commission, and the Office of Administrative Hearings. Most received clean opinions with no findings; exceptions included a repeat component-unit issue at the State Fair Foundation, a securities personnel-evaluation finding, and a Housing Finance Agency finding involving a late return of escrow surplus. The committee also discussed broader oversight issues, including the need for independent auditing of the Ethics Commission, possible legislative changes to give the State Auditor more subpoena power and independent legal counsel, and future work on data analytics, cybersecurity reviews, and audit capacity. The meeting recessed for lunch after these discussions.

Transcript Highlights:

• </c> our jurisdiction such as a federal bank our jurisdiction such as a federal bank we'll<00:10:45.040
• </c> regulator watching over the big Banks regulator watching over the big Banks the<00:54:00.319><c>
• When one sector of banks is regulated and another one is not, the banks who are not regulated have a
• And this is going to result in real money and could result in bank failures for some banks as people
• </c> real money and could result in bank real money and could result in bank failures<00:58:47.119><c

Committee: Senate Commerce and Consumer Protection

Transcript Highlights:

• And so this is amending that, but the bank is... ...And so this is amending that, but the bank is the
• They have an ALS ambulance service currently.
• First, I believe the existing local banks or the bank that extends their working capital credit was extended
• So the... ...a bank and the other was to a health system.
• But I don't think the bank, the interest is not, I mean, the bank isn't motivated by interest on this

Bills: HB1621 , HB1624 , HB1623 , HB1622 , HB1625 , HB1626 , HB1627 , HCR3038

Summary: The North Dakota House convened in special session with prayer, roll call, and a quorum present, then took up several rural health-related bills. Senate Bill 2401, as amended, required physicians to complete one hour of continuing education in nutrition and metabolic health each renewal cycle and also added language allowing criminal history background checks for the Board of Occupational Therapy Practice. Supporters emphasized the role of nutrition in reducing chronic disease, and the bill passed 92-0. The House then considered Senate Bill 2402, which expanded pharmacists’ limited prescriptive and therapeutic substitution authority for certain low-acuity conditions and clarified related lab-test and communication requirements. Members discussed examples such as motion sickness, cold sores, lice, hypoglycemia, COVID and flu testing, emergency access to medications and supplies, and limits excluding certain drug classes; the bill passed 91-1. Senate Bill 2403 created a temporary medical facility emergency operating loan option through the Bank of North Dakota for qualifying rural hospitals facing severe financial distress, with extensive debate over the targeted nature of the aid, anti-gifting concerns, repayment terms, and the hospital’s turnaround plan; it passed 80-12. Senate Bill 2404 appropriated funds for NDIT to address federal digital accessibility requirements and for the Public Service Commission’s litigation efforts related to transmission costs, with a backup loan authorization available if needed; it passed 92-0. At the close of the session, leaders thanked members and staff for their work on the rural health transformation package, a committee notified the Governor and the Senate that the House had completed its business, absent members were excused, and the House adjourned sine die.

Transcript Highlights:

• So if we've got cash deposited in a bank in a normal regular bank account and the amount is in excess
• So the bank has to provide that collateral? That's great.
• So, for example, if they have, say, half a million dollars in the bank, then that bank has to have the
• Say, half a million dollars in the bank, then that bank has to have the equivalent set aside in a private
• The employee had a break in service.

Committee: All LEGISLATIVE JOINT AUDITING-STATE AGENCIES

Summary: The committee first approved the minutes and then heard audit reports from Tom Bullington. For the Department of Public Safety FY24 audit, two findings were presented: a duplicate vendor payment of nearly $3,700 that was later recouped, and a $2.5 million collateral deficiency tied to bank deposits that exceeded FDIC coverage because securities were not properly pledged to the State Police. Agency representatives from Arkansas State Police and the Department of Public Safety answered questions, and members discussed how the collateral requirement works before the report was filed without objection. The committee then reviewed the Department of Transformation and Shared Services FY24 audit, which contained five findings. These included an $800 career service overpayment caused by incorrect rehire data, delayed deactivation and inaccurate listing of fixed assets including stolen cameras, a double count of more than $940,000 in year-end cash records, $10.3 million in health claims that should have been recorded as fiscal year 2024 payables, and repeated deficiencies in vehicle mileage logs. Agency officials said the stolen cameras were recovered through restitution, and they described corrective steps for asset tracking, cash reporting, and vehicle logs. Members asked detailed questions about the vehicle log issues and the planned statewide GPS/telematics rollout. Shared Administrative Services said it is negotiating a vendor contract, expects to implement the system first in its own department, and aims to use GPS, geofencing, alerts, and WEX fuel-card data to improve oversight while preserving privacy. The committee also discussed possible future vehicle sharing across agencies, but no action was taken beyond filing the report. The meeting adjourned after announcing the next meeting date.

Transcript Highlights:

• </c> resolving failing banks. resolving failing banks.
• midsized banks, small and midsize banks.
• In the banks, small and midsize banks.
• and</c><05:15:36.240><c> the</c> banks gobbling up smaller banks and the banks gobbling up smaller banks
• </c> financial services. financial services.

Bills: HR1181 , HR139 , HB6556 , HB3074

Keywords: Arab American, heritage, cultural recognition, National Arab American Heritage Month, diversity, community contributions, social justice, education, Iran, nuclear, sanctions, JCPOA, global security, U.N. Security Council, weapons proliferation

Transcript Highlights:

• Good morning, Chris Richards, Chief Banking Services Officer at Cape Cod Five Cents Savings Bank in Hyannis
• Chris Richards, Chief Banking Services Officer at Cape Cod Five-Sense Savings Bank and Hyannis.
• When banks were more local, when banks were part of our community, and the issuing banks were part of
• Processing bank. With the bank. Okay.
• federal banks.

Summary: The commission met to hear testimony on the future of credit card payments and swipe fees, with a focus on impacts to small businesses, especially restaurants and retailers. Members and witnesses discussed interchange fees, processing fees, chargebacks, fraud risk, rewards programs, and the growing use of card-not-present and digital wallet transactions. Several witnesses urged the commission to support legislation that would prohibit fees on the tax and tip portions of transactions and allow businesses to pass credit card fees on to customers if they choose, while others warned that state regulation of interchange could reduce fraud protections and harm consumer rewards programs. Small business owners and trade groups described rising costs and thin margins, saying card fees are now among their largest expenses and are often charged on money that is merely passing through the business, such as sales tax and gratuities. Restaurant representatives said the current system shifts fraud and chargeback losses onto merchants, with little ability to negotiate rates or recover disputed funds, and argued that transparency and fee relief would help keep independent businesses open. Retailers gave similar testimony, citing rising swipe fees, complex statements, and the burden of online and phone transactions. A representative from the airline industry opposed interchange reform, arguing that airline credit card rewards are popular with consumers and support travel and jobs in Massachusetts. Credit union representatives cautioned that state-level interchange limits could weaken fraud prevention and force higher rates or reduced services, while the National Restaurant Association and a payments-policy attorney countered that banks and networks already operate under fee caps in other contexts and that interchange rates are fixed rather than competitive. Commission members asked questions about how chargebacks work, how fees are broken down, whether businesses can negotiate with processors or POS providers, and how consumer behavior has shifted toward cards, online ordering, and delivery since the pandemic. No votes or formal actions were taken during the hearing.

Transcript Highlights:

• Lacking access to traditional banking not only means that you pay more for basic financial services,
• Too often, bank fees and fees paid to alternative financial service providers, like check cashers, strip
• , we believe these services are already available at banks and credit unions, and we do not think the
• I believe these services are already available at banks and credit unions, and we do not think the research
• We appreciate the intent of the bill, and we all want better banking services for folks who don't have

Committee: House Labor and Employment

Summary: The committee heard several labor and employment bills, with most of the discussion focused on worker protections, collective bargaining, and reentry programs. AB 1424, by Assemblymember Rodriguez, would require climate resiliency measures in CDCR facilities and direct Cal/OSHA to propose extreme-temperature rules for correctional workplaces. Supporters, including NELP, WorkSafe, and formerly incarcerated workers, described dangerous heat conditions in prisons and argued incarcerated workers deserve the same health and safety protections as other workers. There was no opposition, and the bill passed on a due-pass motion to Appropriations with one no vote. AB 1340, by Assemblymembers Wix and Berman, would give rideshare drivers the choice to unionize and collectively bargain. Supporters, including many drivers and labor organizations, said drivers face low pay, deactivations without due process, and lack basic protections; a UC Berkeley researcher cited data showing very low net earnings. Opponents from TechNet, Uber, Lyft, and business groups argued the bill conflicts with Proposition 22 and could raise costs and reduce service. After committee debate over legal authority and state-action immunity, the bill passed to Appropriations with bipartisan support. AB 288 would authorize PERB to act when the NLRB cannot timely resolve labor claims, in response to federal labor board dysfunction. Supporters said California must protect workers’ organizing rights if federal remedies are unavailable, while the Chamber of Commerce raised preemption and enforcement concerns. The bill passed to Appropriations. AB 746, a prison cooperative program bill, would let incarcerated people form worker cooperatives and direct a share of earnings to a Green Reentry Cooperative Reserve; it passed to Public Safety with no opposition. AB 1104, on commercial solar projects, drew mixed testimony: supporters said it would clarify that private solar customers are not “awarding bodies” and would help reverse a steep drop in commercial solar applications, while opponents warned about over-the-fence power sales and unclear scope. The bill was held after committee members requested further clarification. AB 858, extending hospitality worker recall rights after declared emergencies, drew strong labor support and business opposition; the committee voted it out to Appropriations, but it remained on call after a no vote from one member.

Transcript Highlights:

• Banks are not operating these accounts at a loss due to banking regulations.
• I am the CEO of Winter Park National Bank.
• You've got treasury management services, you've got fraud protection services.
• You can go more recently in history; look at Signature Bank. Look at Silicon Valley Bank.
• And the reason that they're typically banking in the community bank is because of the personal relationship

Transcript Highlights:

• This is the Assembly Budget Subcommittee No. 2 on Human Services hearing on human services issues.
• , legal services, and more.
• I'm with Sacramento Food Bank.
• services.
• truly servicing the pilot.