Legislative Report

Week three in Olympia was full of legislation moving quickly through the process with executive sessions. The first handful of bills were brought to the House floor for a chamber-wide vote.

On Tuesday, Jan. 28, Democratic leaders discussed the 2025 legislative session, you can watch that here. Senate Ways and Means Chair Sen. June Robinson provided an update on the budget process, saying that legislators are working alongside their Republican counterparts in close collaboration with House budget writers to look for potential reductions from state agencies and maintenance levels from past budgets. We expect draft budgets will be released by the House and Senate sometime after the March revenue forecast.

Housing continues to be a policy focus in both chambers. House Democrats passed the rent stabilization bill (HB 1217) out of the House Housing Committee and the bill is scheduled for a hearing  Feb. 3 in the House Appropriations Committee.  Rep. Julia Reed (D-Seattle) also introduced legislation related to transit-oriented development  (HB 1491), which had a public hearing this week. On the Senate side, Senator Liz Lovelett (D-Anacortes) introduced legislation (SB 5576) that would impose a new tax on short-term rentals to pay for more affordable housing and is awaiting a hearing in the Senate Committee on Ways and Means.

The end of week three was the halfway marker to the first Policy Committee Cutoff. There will be three more weeks of policy committee hearings and then the focus will shift to fiscal committees.

Key Insights:

Employment Law

SB 5539 and HB 1213 both focus on expanding worker protections and clarifying employer responsibilities under Washington’s Paid Family and Medical Leave program (PFML), with an effective date of Jan. 1, 2026. HB 1213 was heard in the House Labor & Workplace Standards Committee on Jan. 31 and is scheduled for executive session at 10:30 a.m. on Feb. 7. SB 5539 has not yet been scheduled for a hearing.

SB 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 is scheduled for a public hearing in the Senate Labor & Commerce Committee at 8:00 a.m. on Feb. 7.

SB 5437 proposes the prohibition of noncompetition covenants statewide, ensuring they are void and unenforceable while clarifying the scope of  non-solicitation and confidentiality agreements. HB 1155 aligns with similar goals to promote workforce mobility and economic growth by banning noncompetition covenants and outlining employer obligations. HB 1155 was heard in the House Labor & Workplace Standards Committee on Jan. 31 and is scheduled for a public hearing in the same committee at 10:30 a.m. on Feb. 7.

Economic Development

HB 1437 seeks to establish an advisory group under the Washington Tourism Marketing Authority to explore an industry-funded assessment for statewide tourism promotion. The bill was heard in the House Technology, Economic Development, & Veterans Committee on Jan. 28 and is scheduled for executive session at 10:30 a.m. on Feb. 4.

SB 5492 mirrors HB 1437 by creating an advisory group to evaluate a sustainable tourism funding mechanism. It was heard in the Senate Business, Financial Services & Trade Committee on Jan. 29 and is scheduled for executive session at 8:00 a.m. on Feb. 5.

HB 1515 seeks to expand alcohol service options in public spaces and civic campuses, including shared outdoor and indoor service areas and a new license for nonprofit organizations to serve alcohol at community events. The bill was heard in the House Consumer Protection & Business Committee on Jan. 29.

HB 1406 proposes to standardize performance reporting for associate development organizations (ADOs) and increase 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. The bill had a public hearing in the House Technology, Economic Development, & Veterans Committee on Jan. 29 and is scheduled for executive session at 8:00 a.m. on Feb. 5.

Housing

HB 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 was heard in the House Housing Committee on Jan. 28.

Senate Bill 5222 seeks to cap annual rent and fee increases at 7%, enhance tenant protections, and establish new notice requirements for landlords under Washington’s landlord-tenant laws. House Bill 1217, which mirrors these objectives, was scheduled for a public hearing in the House Appropriations Committee on Feb. 3. Both bills aim to address housing affordability and stability through rent stabilization measures.

AI

HB 1671 establishes a comprehensive framework for consumer data privacy. The bill grants consumers rights over their personal data, imposes obligations on businesses, and provides enforcement mechanisms through the Attorney General under the Consumer Protection Act. It is scheduled for a public hearing in the House Technology, Economic Development, & Veterans Committee at 10:30 a.m. on Feb. 4

HB 1168 mandates that developers of generative AI systems publicly disclose detailed information about the datasets used in training these systems. Executive action was taken on the bill in the House Technology, Economic Development, & Veterans Committee on Jan. 28. an  The committee voted to advance the bill in its substitute form and it will now move to the Appropriations Committee.

HB 1170 requires large AI providers to implement tools for identifying AI-generated content and mandates clear disclosures to inform users. The bill saw executive action in the House Technology, Economic Development, & Veterans Committee on Jan. 28, where a do-pass recommendation was given on the 1st substitute.

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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