Last week legislators returned to their respective committees to hear bills from the opposite chamber. Bills must now move forward in the opposite chamber, progressing through policy and fiscal committees. The opposite house cut off is March 29, fiscal cutoff is April 4, and then both chambers will return to the floor to debate bills before the opposite floor cutoff on April 12.  

Housing 

On March 16, the House Committee on Housing heard Senate Bill 5466, which is focused on increasing density of residential development near transit hubs and light rail stations. Seattle Metro Chamber Senior Vice President of Public Affairs and Communications Lars Erickson testified in support of this legislation. The legislation is scheduled for executive session on March 21. 

On March 17, the Senate Housing Committee held hearings on two high profile pieces of legislation related to housing. First on the agenda was House Bill 1474, which would create the Covenant Homeownership Account to assist individuals that were affected by racially restrictive covenants with first-time home purchasing costs. The Seattle Metro Chamber signed on to a letter supporting this bill. The legislation is scheduled for executive session on March 22.  

Second on the agenda was bipartisan House Bill 1110, which would address the “missing middle” by requiring cities to change local zoning laws to allow for more dense housing. Rep. Jessica Bateman and Republican co-sponsor Rep. Andrew Barkis presented the bill together to the Senate Housing Committee, demonstrating bipartisan support for the legislation. More than 40 individuals testified on the bill, including Seattle Metro Chamber President and CEO Rachel Smith who spoke in support of the bill. The bill is scheduled for executive session in the Senate Committee on Housing on March 22. 

Labor and Workforce 

There are many labor and workforce bills still making their way through the legislature. On March 13, the Senate Labor and Commerce Committee heard House Bill 1050, which would expand apprenticeship utilization requirements to state agencies, school districts, and 4-year projects that cost $1 million or more.  

Also on March 13, the Senate Early Learning and K-12 Committee heard bipartisan House Bill 1525, which would expand Working Connections Child Care (WCCC) eligibility to include the first 12 months of an applicant’s enrollment in a state registered apprenticeship program. Supporters say those pursuing apprenticeships should have the same access to childcare that students in vocational programs have. Apprenticeships have been a major area of interest for both parties in recent years as the legislature focuses on filling the worker shortage across various sectors. Executive action was taken on March 15 and the bill was scheduled for a public hearing in Senate Ways and Means on March 21. 

On March 14 the House Labor and Workplace Standards Committee heard Senate Bill 5217, which would restore the state’s ability to regulate certain industries and risk classes to prevent musculoskeletal injuries and disorders. On March 17 the committee took executive action and passed the bill.  

Environment 

This session 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. The bill was heard in the House Environment & Energy Committee on March 13 – see the Chamber’s Lars Erickson testify in support. The bill is scheduled for executive session on March 21.  

Public Safety 

House Bill 1638, which addresses state trooper recruitment and retention had a public hearing on March 13. As of 2022, out of the 683 state patrol positions patrolling the roads, there were 187 vacancies. This bill helps create a monetary incentive program to help hire and retain officers. 

Taxes 

On March 16, the House headed to the Chamber floor to take action on several tax-related bills. These bills are considered necessary to implement the budget (NTIB) and are not subject to traditional cutoff dates. One of the bills that passed unanimously was House Bill 1018, which aims to change the expiration date for the sales and use tax exemption of hog fuel to comply with the 2045 deadline for fossil fuel-free electrical generation in Washington state. This bill also intends to protect jobs with health care and retirement benefits in economically distressed communities.  

House Bill 1573 drew some opposition for proposing the extension of B&O tax preferences for dairy, fruit and vegetable, and seafood processors from 2025 to 2035. The bill passed, 77-19. 

Legislation to Watch

Employment Law  

SHB 1570 – Concerning social insurance programs applicable to transportation network companies and drivers  

This legislation would expand social insurance program access to rideshare drivers. Specifically, SHB 1570 provides unemployment insurance to drivers providing services for transportation network companies. It also creates a pilot program in which drivers may elect to pay for Paid Family and Medical Leave coverage. The bill passed the House, 87-9, on March 2 and was heard in the Senate Labor and Commerce Committee for a public hearing on March 13. HB 1570 is scheduled for executive session on March 21. 

HB 1762 – Protecting warehouse employees  

This bill would apply to any facility with 100 or more employees in a single facility and 500 employees or more statewide. It would restrict the use of quotas. The bill passed the House March 6, 53-42. It is scheduled for executive session in the Senate Committee on Labor & Commerce on March 23. 

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

This bipartisan legislation proposes changes to the Paid Family and Medical Leave (PFML) program including adjusting the way premiums are calculated, raising the cap on premiums, and creating a reserve fund. The bill passed the Senate, 48-0, on Feb. 1. The bill was heard in the House Labor and Workplace Standards Committee on March 14 and the committee took executive action on the bill on March 17.  

SB 5236 – Concerning hospital staffing standards  

The Nurse Staffing bill would require the Department of Labor and Industries to regulate and enforce hospital staffing committees, staffing plans and minimum staffing standards. Last week the Senate brought the bill to the floor and adopted a negotiated striker offered by Sen. Mark Mullet. The bill passed, 35-13. The bill was heard in the House Labor and Workplace Standards Committee on March 15 and is scheduled for executive session on March 21.  

Economic Development  

HB 1258/ SB 5465 – Increasing tourism to Washington state through enhancement of the statewide tourism marketing account and changing necessary match requirements 

This legislation aims to implement multiple measures to expand tourism in Washington State, including increasing the revenue collected into the Statewide Tourism Marketing Account from $3 to $9 million per biennium. SHB 1258 was unanimously passed out of the House. The underlying bill proposed an increase of $26 million per biennium so proponents of the bill are likely to advocate that the full funding be restored as the bill moves through the Senate. HB 1258 was heard on March 14 in the Senate Business, Financial Services, Gaming and Trade Committee and is scheduled for executive session on March 21. 

HB 1717/ SB 5379 – Supporting innovation at associate development organizations 

This legislation would require the Department of Commerce to establish an annual competitive grant program to support and catalyze initiatives to foster innovation, sustainability, partnerships, and equity at associate development organizations. HB 1717 passed the House, 90-6. The bill was heard on March 14 in the Senate Business, Financial Services, Gaming and Trade Committee and is scheduled for executive session on March 21.  

Housing 

HB 1337- Expanding housing options by easing barriers to the construction and use of accessory dwelling units 

This legislation would require cities and counties to allow accessory dwelling units (ADUs) in urban growth areas (with some restrictions) and permit homeowners to convert garages into ADUs. The bill passed the House, 81-15. The bill was heard in the Senate Local Government, Land Use & Tribal Affairs Committee on March 16 and is scheduled for executive session on March 23.  

HB 1276/SB 5235- Concerning accessory dwelling units 

This legislation would require cities and counties to allow ADUs but differs from HB 1337 in that it also allows homeowners to lease the ADUs as short-term rentals. SB 5235 passed the Senate last week, 42-6. The bill was heard in the House Housing Committee on March 13 and was scheduled for executive action on March 16, however no action was taken on the bill.  

What’s Coming Up Next

This week, the House and Senate will continue to hear and pass bills that have passed out of the opposite chamber. The focus will also shift to budget conversations as the state revenue forecast is expected to come out on March 20. We expect that the Senate will release its Capital, Operating and Transportation budget this week and the House will release its budget soon after. At that time budget negotiations will begin.  

Important Dates

March 29, 2023 – Policy Committee Cutoff – Opposite House   

April 4, 2023 – Fiscal Committee Cutoff – Opposite House   

April 12, 2023 – Opposite House Cutoff   

April 23, 2023 – Sine Die 

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