The state legislature kicked off the 2023, 105-day session and the first day of the new biennium on Jan. 9.
As of Jan. 13, there have been nearly 800 bills introduced. Many bills are scheduled for public hearing this week that address high-priority issues including middle-housing, the WRAP Act, and nurse staffing.
On Jan. 9, both the House and Senate held their 2023 opening ceremonies. On Jan. 10, Governor Jay Inslee presented his State of the State Address in a joint legislative session. Click here to watch. One of the main priorities that Inslee proposed is a $4 billion bond referendum to build affordable housing. Following the address, Assistant Floor Minority Leader Rep. Peter Abbarno provided the Republican perspective on the governor’s budget and expressed concern that it does not address the needs of working families.
Last week Policy Committee Chairs brought new members up to speed by hosting several work sessions on various topics while Fiscal Committees held hearings on the governor’s proposed budget.
Revenue Uncertainties
This session legislators must pass a budget for the 2023-25 biennium. While budget writers are currently working with higher-than-anticipated revenues, they also face uncertainties. The biggest uncertainty is the new capital gains tax. The tax is expected to generate hundreds of millions of dollars for early learning and childcare. However, the tax is being challenged in the state Supreme Court. If the Supreme Court strikes down the new tax it would result in a large hole in the budget.
Additionally, the Department of Ecology will hold the first of four annual auctions for carbon emissions allowances in February, which is expected to earn hundreds of millions for the state. Click here to listen to Senate Ways & Means Committee Chair Sen. Christine Rolfes and ranking member Sen. Lynda Wilson discuss their key priorities for this year’s budget. The next revenue forecast will be in March 2023.
Virtual Testimony Available
Legislators, staff, the third house, and the public have all returned to Olympia, after having operated in a mostly remote environment the last two years. Although this session is operating in an almost-normal fashion, there are many pandemic changes and aspects of the remote session that are here to stay, including an option for virtual testimony. Capitol Campus offices are restricted by security, preventing lobbyists and the public from stopping by legislative offices without an appointment.
Legislative Agendas
Democrats in both the House and Senate believe the 2023 election results show that voters in Washington state share their values and support their legislative agenda. In a recent op-ed by Senate Majority Leader Andy Billig, he stated that “When voters expanded our Democratic majorities this year, validating the progress we’ve made and the path we’re on for the future, they voiced trust in our values and policies that put people first.” Democratic priorities this session include gun violence prevention, addressing the Blake Decision, housing and homelessness, workforce, and protecting reproductive rights.
While the Republicans are in the minority, they will continue to work on moving their agenda this session, which surrounds public safety, homelessness, affordability of living, and education. On Jan. 9, Senate Republican Leader John Braun provided his thoughts on the 2023 session. You can watch that interview here.
Democrats and Republicans agree on many of the issues facing our state that the legislature needs to address this session, including like workforce, housing supply and affordability, and childcare, but they have different ideas on how to address those issues.
Legislation to Watch
Housing Affordability and Homelessness
Inslee has proposed the state raise $4 billion to build affordable housing by issuing bonds outside the state’s debt limit, which will require legislative and voter approval. Additionally, there are proposals to allow more units on residential lots, intensify transit-oriented development, eliminate design review boards on residential construction, and cap the amount by which landlords can raise rent each year. A few highlighted pieces of legislation from week one are below.
This session the conversation surrounding housing supply and the missing middle has gained significant momentum. This bill would require cities with a population of at least 6,000 or a city near an urban growth area with a population of more than 200,000 to increase density in residential areas typically dedicated to single-family detached housing. The bill is scheduled for a public hearing on Jan. 17 in the House Housing Committee. The Seattle Metro Chamber’s President and CEO Rachel Smith will testify in support of the legislation.
This legislation creates a new 99-year property tax exemption for multifamily properties that commit to renting or selling at least 35% of the multifamily housing square footage as affordable housing to low- and moderate-income households. The bill was heard on Jan. 13 in the Senate Housing Committee.
This legislation is being referred to by housing providers as “rent control light.” The bill requires landlords to provide at least 180-days and no more than 220-days’ notice for rent increases over 5% and allows a tenant to terminate a tenancy without penalty for any rent increase over 5%. The bill also limits late rental payment fees under the Residential Landlord-Tenant Act to $75. The bill was heard on Jan. 12 in the House Housing Committee.
Employment Law
A number of impactful labor and employment proposals have been filed and are receiving public hearings in their House and Senate committees.
SB 5123 – Concerning the employment of individuals who lawfully consume cannabis
This legislation would place restrictions on an employer’s ability to screen for an applicant’s lawful use of cannabis, unless federal regulations require otherwise. It was heard in the Senate Labor and Commerce Committee on Jan. 10.
HB 1320/SB 5061 – Concerning access to personnel records
This legislation requires an employer to furnish an employee with a complete, unredacted copy of their personnel file at no cost within 14 days of a request and creates a private right of action with statutory damages should an employer not comply. The bill was heard Jan. 12 in the Senate Labor and Commerce Committee.
SB 5110 – Adding penalties for certain prohibited practices in chapter 49.44 RCW
Employers in Washington state are not allowed to: require lie detector tests as a condition of employment, misclassify a public employee to avoid providing employment-based benefits, require genetic screening as a condition of employment, request, require, or coerce an employee to grant access to personal social media accounts, discriminate a person based on their age or obtain individually identifiable information regarding an employee’s participation in an employee assistance program. Not all these prohibited actions have a clear enforcement mechanism. This legislation would allow an employee to take the employer to court to enforce any of these prohibited employment practices. The bill was heard on Jan. 12 in the Senate Labor and Commerce Committee and is scheduled for executive action on Jan. 17. The Association of Washington Business testified in opposition to the bill and the State Labor Council testified in support.
Transportation
Last week the House Transportation Committee held a work session on high-speed rail.
What’s Coming Next
High-priority bills are scheduled for public hearing this week; they will address middle-housing legislation, the WRAP Act and nurse staffing on Jan. 17.
Important Dates
Feb. 17 – House of Origin Policy Cutoff
Feb. 24 – House of Origin Fiscal Cutoff
March 8 – House of Origin Floor Cutoff
March 29 – Opposite House Policy Cutoff
April 4 – Opposite House Fiscal Cutoff
April 12 – Opposite House Floor Cutoff
April 23 – Sine Die