Legislative Report

In week two of the state legislative session, the legislature held public hearings on several high-profile pieces of legislation including policies on firearms, unemployment security for striking employees, recycling, and rent stabilization.

The final open seats in the legislature have been filled after several appointments this week. Emily Alvarado (D-West Seattle) was appointed to fill Joe Nguyen’s Senate seat. Gov. Bob Ferguson appointed Nguyen to lead the Department of Commerce. Brianna Thomas, senior policy advisor to Seattle Mayor Bruce Harrell, was selected to fill the House seat vacated by Alvarado. Janice Zahn, Port of Seattle engineer and Bellevue councilmember, will fill former Rep. Tana Senn’s seat following Senn’s appointment to the lead Department of Youth and Families.  You can read more about the appointments here.

The first major bill cutoff is Feb. 21, by which all bills will need to be passed out of their policy committee to “stay alive” this session. Bills deemed necessary to implement the budget, including all revenue proposals, are not subject to cutoffs.

There continue to be informal discussions on various revenue options including a wealth tax, B&O increases, etc. While it has not been formally introduced, the most significant new tax under consideration by the Senate is a statewide payroll expense tax on employers. You can read more about what has been discussed here.

This week committee hearings and executive sessions will continue. Please see below for key insights from week two.

Employment Law

Senate Bill 5041 seeks to extend unemployment benefits to employees involved in strikes and lockouts, remove certain disqualifications, and shift the financial responsibility for benefits to the employer involved in the labor dispute. The bill was heard in the Senate Labor & Commerce Committee on Jan. 21.  The Seattle Metro Chamber testified in opposition to this legislation along with representatives from the Association of Washington Business  and the Washington Hospitality Association.

House Bill 1184 provides an overtime exemption for certain nonprofit and small business employees if they meet specific salary and duties-related criteria. The House Committee on Labor & Workplace Standards held a public hearing on the bill on Jan. 15.

House Bill 1213 seeks to expand employee protections and clarify employer responsibilities under Washington’s Paid Family and Medical Leave program. Key provisions include reducing the minimum claim duration, expanding employment restoration rights, and extending the program’s employment protection rights  to any employee who began employment with their current employer at least 90 calendar days before taking leave, regardless of the size of the employer. The bill was recently heard in the House Labor & Workplace Standards Committee on Jan. 21 and is scheduled for executive session in the House Labor & Workplace Standards Committee at 10:30 a.m. on Jan. 31.

House Bill 1155 is moving quickly and seeks to prohibit noncompetition covenants and clarify the scope of nonsolicitation agreements. The bill aims to enhance workforce mobility and economic growth by declaring noncompetition agreements void and unenforceable. It is scheduled for a hearing in the House Labor & Workplace Standards Committee at 10:30 a.m. on Jan. 31 and is also scheduled for executive session in the same committee at 10:30 a.m. (subject to change).

House Bill 1181 seeks to reform labor standards by increasing the minimum wage to $25 per hour by 2031 and expanding labor protections for employees and transportation network company (TNC) drivers. The bill includes provisions for paid leave, enforcement measures, and specific regulations for TNCs related to compensation and benefits.

Public Safety

House Bill 1276 proposes sentencing enhancements for organized retail theft based on the value of stolen property. The bill introduces an additional sentencing time of 12 months for thefts valued at $20,000 or more and 24 months for thefts valued at $50,000 or more, aiming to deter high-value organized retail theft.

Economic Development

House Bill 1437 seeks to establish an advisory group to explore an industry-supported funding mechanism for statewide tourism promotion. The bill is scheduled for a public hearing in the House Technology, Economic Development, & Veterans Committee at 10:30 a.m. on Jan. 28.

Senate Bill 5492 proposes the creation of an advisory group to evaluate a potential industry-funded assessment to support statewide tourism promotion. The bill also removes outdated provisions related to the Tourism Marketing Authority board and sets a deadline of Nov.1, 2025, for the advisory group to submit its recommendations to the legislature. It is scheduled for a public hearing in the Senate Business, Financial Services & Trade Committee at 8 a.m. on Jan. 29.

House Bill 1406 proposes standardizing performance reporting for associate development organizations (ADOs) and increasing funding flexibility. The bill adjusts funding levels for urban and rural counties while allowing partial in-kind contributions for local matching requirements. These changes aim to streamline processes and enhance support for economic development efforts across Washington State. The bill is scheduled for a public hearing in the House Technology, Economic Development, & Veterans Committee at 8 a.m. on Jan. 29.

Housing

House Bill 1491 mandates higher-density, transit-oriented development near major transit stops, requiring cities to adopt regulations that facilitate multifamily housing and mixed-use projects in designated station areas. The bill is scheduled for a public hearing in the House Housing Committee at 4 p.m. on Jan. 28.

House Bill 1494 refines property tax exemption criteria for multi-unit housing to prioritize affordability and anti-displacement measures. The bill updates definitions, eligibility, and administrative processes, emphasizing affordability requirements, transit proximity, and compliance mechanisms for local governments and property owners.

Senate Bill 5222 seeks to enhance tenant protections and housing stability by capping annual rent and fee increases at 7% under the Residential Landlord-Tenant Act and the Manufactured/Mobile Home Landlord-Tenant Act. The bill also mandates notice requirements for landlords, provides tenant protections against unlawful rent increases, and includes a provision for a social vulnerability assessment to evaluate the broader impacts of these changes. A public hearing was held in the Senate Housing Committee on Jan. 22.

House Bill 1217 seeks to cap annual rent increases at 7% and strengthen tenant protections under Washington’s landlord-tenant laws. The bill advanced out of the House Housing Committee on Jan. 20 with a majority recommendation to pass in its substitute form, while minority members recommended either not passing or withholding recommendation. The bill has been referred to appropriations.

AI

House Bill 1168 mandates that developers of generative AI systems publicly disclose detailed information about the datasets used in training these systems. The bill had a public hearing in the House Technology, Economic Development, & Veterans Committee on Jan. 17 and is also scheduled for executive session in the same committee at 10:30 a.m. on Jan. 28 (subject to change).

House Bill 1170 requires large AI providers to implement tools for identifying AI-generated content and mandates clear disclosures to inform users. The bill was heard in the House Technology, Economic Development, & Veterans Committee on Jan. 17 and is scheduled for executive session in the same committee at 10:30 a.m. on Jan. 28 (subject to change).

Important Session Dates:

Feb. 21, 2025: House of Origin Policy Cutoff
Feb. 28, 2025: House of Origin Fiscal Cutoff
March 12, 2025: House of Origin Floor Cutoff
March 24, 2025: Opposite House Policy Cutoff
March 31, 2025: Opposite House Fiscal Cutoff
April 9, 2025: Opposite House Floor Cutoff
April 27, 2025: Last Day of Session

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