Legislative Report

By Boswell Consulting

The legislature has now passed the half-way point of the 105-day session. As we approach the March 12 house of origin cutoff, some bills will not advance due to the high volume of proposed legislation and the session’s tight timeline.

Revenue Update

On March 20, the Washington State Economic & Revenue Forecast Council will release its revenue forecast (a preliminary economic report is available online). The House and Senate will release their respective budget proposals after the release of the revenue forecast. Then budget negotiations will begin.

Although several tax proposals have been introduced, given the budget deficit. we expect the legislature to release a tax package in the final days of session that will likely be a key component of the final budget. At this point we have not seen any bill language, however there is a summary document looking at various taxes under consideration.

Please see below for key insights from week eight:

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. On March 7, the first substitute bill was adopted, floor amendments were approved, and the bill passed the Senate, 28-21. The bill will now move to the House for further consideration.

Senate Bill 5539 and House Bill 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. Senate Bill 5539 failed to advance before the cutoff and is considered dead for this session. HB 1213 is currently in Rules and needs to pass the House by March 12 to stay alive this session.

House Bill 1155 proposes to prohibit noncompetition covenants statewide, ensuring they are void and unenforceable while clarifying the scope of nonsolicitation and confidentiality agreements. The bill is currently on the House floor calendar where it is eligible to be scheduled for a vote. The bill needs to pass the House by March 12.

House Bill 1623 prohibits employers from deducting credit card processing fees from employee tips. The bill is currently in the House Rules Committee. It needs to pass by March 12 to stay alive.

Housing

House Bill 1217 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. The bill is currently on the House floor calendar where it is eligible to be brought up for a vote.

House Bill 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 passed the House 58-39 on March 5 following the adoption of a third substitute bill in the Appropriations Committee. It is scheduled for a hearing in the Senate Housing Committee on March 14.

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. The bill passed the House, 63-34, on March 5. It is scheduled for a hearing in the Senate Ways & Means Committee on March 13.

House Bill 1687 establishes a framework for creating and supporting social housing public development authorities. The bill remains in House Rules.

Economic Development

House Bill 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. On March 8 the bill passed the House, 83-13.

Senate Bill 5492 creates an advisory group to evaluate a sustainable tourism funding mechanism. The bill passed the Senate, 48-0, and has been referred to the House Technology, Economic Development, and Veterans Committee.

Senate Bill 5677 and House Bill 1406 increase funding for associate development organizations and standardizes performance reporting requirements statewide. A first substitute bill for the Senate bill was adopted on March 4, followed by floor amendments, and passed, 46-3. The House bill is currently on the House floor calendar.

Important Session Dates

  • 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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