Public hearings on high-profile pieces of legislation on guns, middle housing, recycling, and nurse staffing attracted thousands of supporters and opponents in week two of the legislative session.

Nurse Staffing

On Jan. 17, the Senate Labor and Commerce Committee heard legislation related to nurse staffing: Senate Bill 5236. More than 3,000 people signed in pro, con or other. The bill directs Washington State Labor & Industries to set staffing standards for health care workers, specifically, to set minimum nurse-to-patient ratios. Nurse staffing has been a contentious issue the last several sessions. Unlike the 2022 bill, this legislation does not set staffing standards in statute.

Housing

This week middle housing was front and center with a Jan. 17 public hearing on House Bill 1110, legislation that would allow for more density in residential neighborhoods that are zoned for single family detached housing. The bill has strong support from labor, urbanists, builders, business and realtors, however local jurisdictions have concerns. The bill was heard last week in the House Housing Committee, and Seattle Metro Chamber President and CEO Rachel Smith testified in support of the legislation. While increasing housing supply has been a focus for the legislature, legislators continue to focus on housing stabilization as well. Reps. Nicole Macri and Alex Ramel held a press conference on bills relating to the rent stabilization act.

Assault Weapons

Also on Jan. 17, 4,406 people signed in pro, con or other in the House Civil Rights & Judiciary Committee on House Bill 1240, a governor- and attorney general-request bill that prohibits the manufacture, importation, distribution, sale, or offer for sale of any assault weapon, with a few exceptions. This is the seventh session Attorney General Bob Ferguson has requested this bill and democrats hope this is the year they will succeed.

WRAP Act

The Washington Recycling and Packaging Act, or the WRAP Act (Senate Bill 5154/House Bill 1131), had public hearings last week. This bill proposes implementing end-producer responsibility, a bottle deposit system and minimum recycled content requirements. The bill is supported by environmentalists and local governments and is opposed by some industries including hospitality and retail, specifically grocery stores.

Taxes

This week Sen. Noel Frame and Rep. My-Linh Thai introduced a Wealth Tax bill at a press conference. The bills (House Bill 1473/Senate Bill 5486) would create a property tax on the ownership of stocks, bonds, and other financial assets over $250 million. The revenue generated is dedicated to four funds:

  • The Education Legacy Trust Fund, which is a dedicated funding source for early learning, K-12, and higher education
  • The Housing Trust Fund, which pays for the construction of affordable housing
  • A Disabilities Care Trust account that will pay for services for Washingtonians with disabilities
  • A Taxpayer Justice account, that will offer credits against taxes paid by low and middle-income families

Frame also introduced a new Margins Tax bill (Senate Bill 5483) last week. The Margins Tax was a recommendation of the Tax Structure Work Group and is meant to replace the B&O tax. Instead of a business paying tax on their gross revenue with no deductions, each year a business gets to take one major deduction of their choosing and then their tax is calculated on their remaining margin. The bill is scheduled to be heard this week.

Childcare

On Wednesday, Sen. Patty Murray and Sen. Claire Wilson held a joint press conference to discuss affordable childcare.

Legislation to Watch

Employment Law

Several impactful labor and employment proposals have been filed and have begun receiving public hearings in their House and Senate committees.

Senate Bill 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. The bill is scheduled for executive action on Jan. 24.

House Bill 1106 – Concerning qualifications for unemployment insurance when an individual voluntarily leaves work

This legislation expands unemployment insurance benefits to certain workers who leave their jobs for good cause, for example quitting because of: illness or disability, safety issues that were not addressed by the employer, the death, illness, or disability of a family member, or inability to access care for a child or vulnerable adult. The bill was heard the first week of session and was passed out of committee on Jan. 20 with two amendments.

Senate Bill 5286 – Modifying the premium provisions of the paid family and medical leave program

This bipartisan legislation proposes changes to the Paid Family Medical Leave program including adjusting the way premiums are calculated, raising the cap on premiums, and creating a reserve fund. The bill had a public hearing on Jan. 16 and was passed out of committee the following day.

Housing Affordability and Homelessness

Gov. Jay 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.

House Bill 1110/Senate Bill 5190 – Increasing middle housing in areas traditional dedicated to single-family detached housing

This legislation 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 Senate bill is scheduled to be heard on Jan. 25.

House Bill 1388 – Protecting tenants by prohibiting predatory residential rent practices and by applying the consumer protection act to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act

This legislation is viewed by housing providers as rent control. The legislation prohibits a landlord from increasing the rent more than the CPI-U or 3%, whichever is greater, up to a maximum or 7%. The bill is scheduled to be heard next week and expected to be opposed by housing providers.

House Bill 1389/Senate Bill 5435 – Concerning residential rent increases under the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act

Like House Bill 1388, this legislation aims to limit rent increases to reduce homelessness. Among other regulations the bill prohibits a landlord from increasing the rent more than the CPI-U or 3%, whichever is greater, up to a maximum or 7%. The Department of Commerce is required to calculate and publish the maximum annual rent increase percentage. The main difference between HB 1389 and HB 1388 is that HB 1389 allows landlords to accrue increases and apply them later. For example, if a landlord did not increase rent by 5% in 2023, they would be able to increase by 10% in 2024. Both bills are scheduled to be heard this week and expected to be opposed by housing providers.

Public Safety

House Bill 1363/Senate Bill 5352 – Concerning vehicular pursuits

Legislators are revisiting law enforcement reform legislation related to vehicular pursuits that was adopted in 2021. The bill would remove the requirements for police officers to receive approval before conducting a pursuit and replace that with a requirement to notify the officer’s supervisor of the pursuit. The bills have not yet been scheduled for a public hearing.

Environment

House Bill 1505/Senate Bill 5447 – Promoting the alternative jet fuel industry in Washington

Last week bipartisan legislation was introduced related to sustainable aviation fuels. The goal of the legislation is to promote in-state use and deployment of sustainable aviation fuels through tax incentives and other tools. We expect that the bills will be heard in week four.

House Bill 1216/Senate Bill 5380 – Concerning clean energy siting

This governor-request legislation would create an Interagency Clean Energy Siting Coordinating Council to be co-chaired by the Department of Ecology and the Department of Commerce. The purpose of the council would be to expedite the permitting for clean energy projects. The bill would also establish a definition for clean energy projects “of statewide significance” and require SEPA review to be completed within two years. The House Bill was heard last week in the House Environment and Energy Committee. The Senate Bill is scheduled to be heard on Jan. 24.

What’s Coming Next

This week, committee hearings and executive sessions will continue. Unless considered necessary to implement the budget, all must be out of their house of origin policy committee by Feb. 17 to stay alive this legislative session.

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

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