We are now in the final stretch of the 2023, 105-day legislative session. March 29 was the Opposite House Policy Committee Cutoff where all bills that passed their chambers of origin needed to be passed by the opposite chamber policy committee to stay alive this session.
Many priority bills made it through the cutoff and are still in play including middle housing, vehicular pursuits, clean energy siting, transit-oriented development, and legislation addressing the Blake Decision. Now, the focus turns largely to the 2023-25 biennial budgets, which the legislature is required to pass before adjourning the session.
Last week, the House released its Capital, Operating, and Transportation Budget Proposals on March 27 and the Senate released its Transportation Budget Proposal on March 29.
House Operating and Capital Budgets
The $69.5 billion House Operating Budget Proposal leaves about $3.2 billion in reserves and does not rely on any new taxes, however there are still tax proposals that are alive including a bill that would increase real estate excise taxes (REET). The proposal uses revenue from the capital gains tax that went into effect this year and was recently ruled as constitutional.
The most notable differences between the House and Senate operating budgets are the House budget’s use of Climate Commitment Act (CCA) Funds and its consideration of Gov. Jay Inslee’s proposed $4 billion housing referendum to fund affordable housing.
Notable spending in the House Operating Budget Proposal includes:
- $688 million for rate increases for long-term care and disability providers
- $362 million for public health
- $128 million for emergency food assistance
- $179 million to increase supports for special education students
- $150 million towards the covenant homeownership program.
The House Appropriations Committee held a public hearing on its proposed budget on March 27, and it passed out of committee on March 29.
The $8.3 billion bi-partisan House Capital Budget proposal would set a new state record for construction funding. The House proposal includes:
- $4.6 billion in new state bonds
- $3.16 billion in federal, local and dedicated state funds
- $525 million in Climate Commitment Act revenue
- $160 million reserved for the 2024 supplemental budget
- $704 million for affordable housing and home upgrades
- $893 million for behavioral health
- $806 million for K-12 construction
- $129 million for local community projects.
A public hearing was held in the House Committee on Capital Budget on March 28, and it passed out of committee on March 30.
House and Senate Transportation Budgets
The House Democrats rolled out a proposed second supplemental transportation budget for the 2021-23 biennium and a new House Transportation Budget proposal for the 2023-25 biennium providing spending authority of $10.3 billion and $13.6 billion, respectively. The proposals will be used to implement last year’s Move Ahead Washington package as well as projects from the 2015 Connecting Washington package.
Highlighted investments include:
- $5.67 billion for highway improvements and preservation
- $1.26 billion for the ferry system
- $382 million for transit
- $161 million for active transportation
- $70 million for alternative fuel and electrification.
The House Transportation Committee held a public hearing on their budget on March 27, and it passed out of committee on March 29.
On Wednesday the Senate rolled out their 2023-25 Transportation Budget proposal, which included $12.9 billion in spending across the state. The Senate also released a second supplemental transportation budget for the 2021-23 biennium totaling $10.6 billion in spending.
The $12.9 transportation budget proposal for the 2023-25 includes:
- $7 billion for capital programs including $178.8 million in bike/pedestrian projects
- $418 million for transit projects
- $1.4 billion in state highway projects
- $38.8 million on the Washington State Patrol
- $14.6 million for the Department of Licensing
- $8 million for homeless encampments
- $6.6 million for the Tacoma Narrows Bridge
- $5 million for ADA safety
- $9.9 million for Washington State Ferries
- $9.4 million for clean energy charging.
A public hearing was held in front of the Senate Transportation Committee on March 30, and it is up for executive action on April 3.
Legislation to Watch
Employment Law
HB 1762 – Protecting warehouse employees
This bill would apply to employers with 100 or more employees in a single facility or 500 employees at one or more facilities statewide. It would restrict the use of quotas. Unlike the Senate version the House version has a private right of action. The bill passed the House, 53-42. The bill was heard March 16 in the Senate Labor and Commerce Committee. The committee took executive action on the bill on March 23 and on March 30 the bill was pulled from Rules and placed on the Senate floor calendar.
SSB 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 passed the Senate, 48-0, on Feb. 1. The bill was heard in the House Labor and Workplace Standards Committee on March 14, the committee took executive action on the bill on March 17. The bill was heard and passed by the House Appropriations Committee last week.
This bill repeals the law prohibiting the Department of Labor and Industries from adopting rules related to ergonomics or musculoskeletal disorders. The Senate adopted two amendments and the bill passed, 27-21, on March 1. The bill was heard in the House Labor and Workplace Standards Committee on March 14, the committee took executive action on the bill on March 17 and the bill was heard and passed by the House Appropriations Committee last week.
SB 5236 – Concerning hospital staffing standards
The Nurse Staffing legislation would require the Department of Labor and Industries to regulate and enforce hospital staffing committees, staffing plans, and minimum staffing standards. The Senate brought the bill to the floor and adopted a negotiated striker offered by Sen. Mark Mullet. The bill passed, 35-13, on March 6. The bill was heard in the House Labor and Workplace Standards Committee on March 15. The committee took executive action on the bill on March 21 and the bill was heard and passed by the House Appropriations Committee last week.
Economic Development
This legislation would implement multiple measures to expand tourism in Washington state, including increasing the revenue collected into the Statewide Tourism Marketing Account from $3 million to $9 million per biennium. SHB 1258 was unanimously passed out of the House on March 1. HB 1258 was heard on March 14 in the Senate Business, Financial Services, Gaming and Trade Committee. The Committee took executive action on the bill on March 21st where it adopted an amendment that restored the full funding of $26 million. The bill was heard on March 31 in the Senate Ways and Means Committee and is scheduled for executive action on April 3.
HB 1717/ SB 5379 – Supporting innovation at associate development organizations
This legislation requires 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 Tuesday, March 14th in the Senate Business, Financial Services, Gaming and Trade Committee. The committee took executive action on the bill on Tuesday, March 21st. The bill was heard on Friday in the Senate Ways and Means Committee and is scheduled for executive action on Monday, April 3rd.
Housing Affordability and Homelessness
HB 1110/SB 5190 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. HB 1110 passed the House March 6 with a strong bipartisan vote, 75-21. The bill was referred to the Senate Housing Committee and was heard on March 17th. HB 1110 passed out of the Senate Housing Committee on March 22. HB 1110 was heard on March 31 in the Senate Ways and Means Committee and is scheduled for executive action on April 3.
HB 1517/SB 5466 – Promoting transit-oriented development
This bill on transit-oriented development seeks density of residential development near transit hubs and light rail stations. SB 5466 passed the Senate, 40-8, on March 1. The bill has now been referred to the House Housing Committee. HB 5466 was heard in the House Housing Committee on March 16. On March 28 the committee took executive action on the bill. The committee adopted a striking amendment that made changes to the underlying bill, adding more controversial affordability provisions. The bill was heard on March 30 in the House Capital Budget Committee and on March 31 the committee passed the bill as amended by the Housing Committee. On final passage Rep. Strom Peterson (D-21) stated that there would be continued work on the bill as it moves to the House floor.
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 March 2, 81-15. The bill was heard in the Senate Local Government, Land Use & Tribal Affairs Committee on March 16. The committee to executive action on the bill on March 28. On March 30, the bill was pulled from Rules and placed on the House floor calendar.
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 Feb. 27, 42-6. The bill was heard in the House Housing Committee on March 13. The committee took executive action on the bill on March 27. The bill is now in Rules.
Public Safety
HB 1638 – Creating a state trooper expedited recruitment incentive program
This legislation creates the State Trooper Expedited Recruitment Incentive Program and directs Washington State Patrol to establish hiring procedures and an accelerating training program for lateral hires from other law enforcement agencies. The bill passed the House Feb. 27, 94-1. The bill was heard in the Senate Transportation Committee on March 13. The bill is scheduled for executive action on April 4.
Environment
HB 1505/ SB 5447 – Promoting the alternative jet fuel industry in Washington
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. On March 21 the bill was passed by the House Environment & Energy Committee. SB 5447 was heard on March 28 in the House Finance Committee and passed by the Committee on March 31.
HB 1216/ SB 5380 – Concerning clean energy siting
This 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 council would 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. This legislation passed out of the House on March 4 with a strong bipartisan vote. A public hearing in front of the Senate Environment, Energy & Technology Committee was held on March 15. On March 24, the committee took executive action and sent the bill to Ways and Means on a party line vote. The bill was heard on Friday, March 31 in the Senate Ways and Means Committee and is scheduled for executive action on April 3.
Transportation
HB 1791 – Studying the need for increased commercial aviation services
This legislation would replace the Commercial Aviation Coordinating Commission (CACC), which was tasked in 2019 with identifying locations for a new large airport in Western Washington, with a Commercial Aviation Coordinating Work Group. The new Work Group would evaluate the commercial aviation needs of Washington within the broader context of state transportation needs and the specific needs of Western Washington. It would also require the Work Group to investigate the expansion of existing aviation facilities and possible locations for new greenfield aviation facilities and report on the strengths and weaknesses of each site considered. This substitute was passed out of the House Transportation Committee on Feb. 23. The House passed the bill, 88-9. The bill has a public hearing in the Senate Transportation Committee on March 21 and is scheduled for executive action on April 4.
What’s Coming Next
Both chambers will continue to work their respective budget proposals through the process as negotiations between the two bodies take place. Fiscal committees will work to pass bills in advance of the April 4 Opposite House Fiscal Committee Cutoff. Following the April 4 cutoff, legislators will head to the floor to pass bills. You can view a full list of bills that have already passed the legislature and have been signed by the governor here.
Important Dates
April 4, 2023 – Fiscal Committee Cutoff – Opposite House
April 12, 2023 – Opposite House Cutoff
April 23, 2023 – Sine Die