Legislative Report

We are a quarter of the way through the 2025 legislative session. As of last week, the number of daily bill introductions has slowed down and we’re seeing more action on the floor.  The first major bill cutoffthe House of Origin Policy Committee cutoff, is on Feb. 21. By this date all bills that are not necessary to implement the budget (NTIB) must be passed by their policy committees in their house of origin to stay alive this session. Any legislation that does not pass this session will automatically be reintroduced in 2026.

Last week Gov. Bob Ferguson signed an executive order establishing a workgroup on data centers. The workgroup will recommend policies and actions for addressing energy use and its impacts on the economy and job market.

At this point in session, the focus is primarily on policy bills, and budget debates will begin to unfold in the upcoming weeks following the release of the March revenue forecast.

Please see below for key insights from week four:

Employment Law

HB 1623 would prohibit employers from making deductions for credit card transaction processing fees from employee tips. The bill had a public hearing in the House Committee on Labor and Workplace Standards on Feb. 5, where the Seattle Metro Chamber signed in opposed. HB 1623 is scheduled for an executive session on Feb. 14.

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 was heard in the Senate Labor & Commerce Committee on Feb. 7 and is scheduled for executive action at 8:00 a.m. on Feb. 14.

HB 1764 and SB 5578 seek to increase the state’s minimum wage to $25 per hour, requiring all employers to provide paid vacation, sick leave, and bereavement leave by Jan. 1, 2031. The bill sets forth incremental increases beginning Jan. 1, 2026, to meet this goal. HB 1674 has been scheduled for a public hearing on Feb. 11, in the House Labor and Workplace Standards Committee, and SB 5578 has been scheduled for a public hearing on Feb. 11 in the Senate Committee on Labor and Commerce. Seattle Metro Chamber has signed in opposed on both bills.

SB 5539 and HB 1213 both focus on expanding employee protections and clarifying employer responsibilities under Washington’s Paid Family and Medical Leave program, with an effective date of Jan. 1, 2026. HB 1213 had executive action taken on Feb. 7 in the House Labor & Workplace Standards Committee. SB 5539 has not yet been scheduled for a hearing or action.

SB 5437 proposes to prohibit 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, and executive action was  taken on Feb. 7 in the House Labor & Workplace Standards Committee.

HB 1773 and SB 5626 seek to establish a wage replacement program for workers that don’t qualify for unemployment. Both bills had hearings on Feb. 4, where Seattle Metro Chamber signed in opposed. HB 1773 has been scheduled for an Executive Session on Feb. 14 in the House Committee on Labor and Workplace Standards and SB 5626 is awaiting action in the Senate Committee on Labor and Commerce.

Public Safety

HB 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 through stricter penalties. It is scheduled for a public hearing in the House Community Safety Committee on Feb. 10.

SB 5060 sought to establish a law enforcement training grant program for local jurisdictions. The bill had a public hearing on Jan. 21 where a substitute bill was recommended “do pass” by the committee. The 1^st substitute seeks to increase the number of law enforcement agency personnel. The bill saw Executive Action on Jan. 23, was referred to Ways & Means on Jan. 24, and had a public hearing on Feb. 3. The Seattle Metro Chamber Vice President of Public Affairs and Communications Lars Erickson testified in support of the 1^st Substitute Bill.

Housing

SB 5529 seeks to amend the county population threshold for counties that can exempt from taxation the value of accessory dwelling units to incentivize rental to low-income households. The bill had a public hearing in the Senate Committee on Ways and Means, where the Seattle Metro Chamber signed in support. SB 5529 is scheduled for executive action on Feb. 13.

SB 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. HB 1217, which mirrors these objectives, had a public hearing on Feb. 3 in the House Appropriations Committee where the Seattle Metro Chamber signed in opposition, and the bill was scheduled for executive action on Feb. 10.

HB 1491 mandates higher-density transit-oriented development, requiring cities to adopt regulations that facilitate multifamily housing and mixed-use projects in designated station areas. The bill is scheduled for executive action in the House Housing Committee at 4:00 p.m. on Feb. 11.

SB 5604 creates tax incentives to promote affordable housing development near transit hubs. The bill establishes a 20-year property tax exemption for transit-oriented development projects that meet affordability requirements, reduces impact fees, adjusts real estate excise taxes, and expands the sales and use tax deferral program to include new multifamily housing near transit. Local jurisdictions are tasked with implementing and overseeing the program to ensure long-term affordability. The Seattle Metro Chamber is testifying in support of the bill, which is scheduled for a hearing at 10:30 a.m. on Feb. 12 in the Senate Housing Committee.

Economic Development

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 is scheduled for executive action at 1:30 p.m. on Feb. 11 in the House Consumer Protection & Business Committee.

HB 1437 seeks to establish an advisory group under the Washington Tourism Marketing Authority to explore an industry-funded assessment for statewide tourism promotion. Executive action was taken on Feb. 4 in the House Technology, Economic Development, & Veterans Committee, where the committee recommended “do pass” on a substitute version of the bill. On Feb. 5 it was referred to Appropriations.

SB 5492 mirrors HB 1437 by creating an advisory group to evaluate a sustainable tourism funding mechanism. The Seattle Metro Chamber supports both versions of the bill. Executive action was taken on Feb. 5 in the Senate Business, Financial Services & Trade Committee, where the committee recommended a substitute bill “do pass,” and it was referred to Rules Committee on Feb. 6.

SB 5677 would increase funding for associate development organizations (ADOs) by raising the cap on state funding for both urban and rural ADOs and standardize performance reporting requirements statewide. The bill is scheduled for a public hearing in the Senate Business, Financial Services & Trade Committee at 8:00 a.m. on Feb. 13, and The Seattle Metro Chamber, which operates the King County ADO, is testifying in support of the bill.

HB1406, which mirrors SB 5677, saw executive action in the House Technology, Economic Development & Veterans Committee on Feb. 5, where it received a majority do pass recommendation, and was referred to Appropriations Feb. 7.

Transportation

HB 1921 seeks to establish a road usage charge. The bill has been scheduled for a public hearing in the House Transportation Committee on Feb. 10 at 4pm, where Seattle Metro Chamber staff will sign in opposed to the measure.

The Senate Transportation Committee will hold a work session on Feb. 13 that will include updates from WSDOT on high-speed rail and Revive I-5. You can review the agenda here.

Early Learning

SB 5310 had a public hearing in the Senate Committee on Ways and Means on Feb. 3. This bill would update the state’s childcare subsidy reimbursement thresholds, allowing more working parents to afford high-quality childcare. Seattle Metro Chamber signed in support of this bill, along with the childcare provider community.

HB 1582 seeks to change the requirements for childcare centers that operate or seek to operate, in existing buildings. The bill would make it easier for providers to open new centers, and the Seattle Metro Chamber signed in support in the public hearing on Feb. 4 in the House Committee on Early Learning and Human Services. HB 1582 is scheduled for executive action on Feb. 14.

HB 1648 was heard on Feb. 4 in the House Early Learning and Human Services Committee. This bill would require the Department of Children Youth and Families to implement the Community-Based Pathways program, an alternative education pathway for childcare providers to meet the states education requirements. Seattle Metro Chamber Director of Policy, Sarah Clark, testified in support. If this bill does not pass this session, many legacy childcare providers would no longer be eligible for licensure.

Energy

SB 5601 seeks to promote the production and use of alternative jet fuels through grants, tax incentives, and environmental review processes. It was heard on Feb. 5 in the Senate Environment, Energy & Technology Committee where the Seattle Metro Chamber’s Policy Manager Lilly Hayward testified in support, and is scheduled for an executive session on the same committee at 10:30 a.m. on Feb. 14.

Technology

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 was heard on Feb. 4 in the House Technology, Economic Development, & Veterans Committee where the Seattle Metro Chamber signed in opposed. The bill is scheduled for executive action at 10:30 a.m. on Feb. 14.

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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