The field of bills has narrowed slightly as the session passes its midpoint; House of Origin cutoff looms on Tuesday as lawmakers wrap up initial floor work

Published February 17, 2026 at 8:44 AM · Legislative Advocacy - Washington

Sunday marks the 35^th day of the legislative session, and by Tuesday, all bills not raising revenue or considered necessary to implement a state budget will have had to pass out of their chamber of origin to remain alive. While the first policy committee cutoff did little to narrow the number of bills moving, this past Monday’s fiscal cutoff put to rest several of the more expensive policy proposals. After they wrap up floor action Tuesday evening, lawmakers head back into committees on Wednesday, considering bills sent over from the other chamber. The first opposite house cutoff is a week later, on February 25^th, for bills to clear policy committees.

Below are selected highlights from the past week, along with a look ahead to notable action in the coming days. Additional bills being tracked, including those with upcoming action, are detailed in the attached bill report.

Taxes

Income Tax: HB 2724 and SB 6346 represent the 9.9 percent annual “Millionaire’s Tax” proposal. On the Senate side, after its lively hearing earlier this month in which over 80,000 people signed in with a position – two-thirds opposed – the bill was voted out of the Ways & Means Committee on Monday and was pulled from the Senate Rules Committee on Thursday. A Senate floor vote is anticipated this week. As it emerged from committee, the bill was amended to include several changes thought to be requested by the Governor’s office, including an increase in the charitable deduction against the tax, and an increase in the small business B&O tax exemption for the first $300,000 of business income.

Local Public Utility Tax & Sales Tax: HB 2442 and SB 6294 expand the use of local property tax revenues, authorize a new county-imposed public utility tax, authorize a new 0.01 percent sales tax increase to fund child and family services, and expand the authorized use of sales tax revenue by counties and cities to include various social services. The House version was voted out of the Appropriations Committee last Saturday, and was pulled from the House Rules Committee on Thursday, making it eligible for a floor vote.
Sales Tax on Services Follow Up: HB 2257 and SB 6113 represent the “technical fix” bill following last year’s SB 5814 sales tax on services. On the Senate side, it was voted out of the Ways & Means Committee on Monday and pulled from the Rules Committee on Thursday. Unlike the House version, which isn’t moving at the moment, the Senate companion does not contain the amendment clarifying that pending litigation challenging certain exemptions to the digital advertising tax, if successful, would not invalidate all the remaining exemptions. This calls into question billboard advertising, signage at live events, naming rights, and fixed in-venue signage.
Governor Request B&O Insurance Tax Exemption Removal: HB 2487 and SB 5949, seeking to overturn the Envolve case by expanding the B&O tax to cover more activities of insurance companies currently subject to the premium tax, is in the House Rules Committee on that side, and scheduled for a Ways & Means Committee vote on Thursday. Insurers from multiple lines of insurance business are actively seeking amendments to clarify the scope of the intended B&O coverage, and stakeholder meetings with sponsors and the Department are planned for this week to advance that work.
Employer Assessment/Tax for Employee use of the State Medicaid Program: SB 6173, and the similar HB 2300, would assess private employers of more than 100 employees for the full cost of their employees who utilize state Medicaid for health insurance. On the Senate side, the bill is scheduled for a vote in the Ways & Means Committee on Thursday. Discussions continue with the bill’s sponsor to clarify its intended scope, including whether the bill will seek to cover independent contractors. Click here for a copy of a letter submitted by the Association of Washington Business sharing concerns and amendment concepts with the bill’s Senate sponsor.
Payroll Tax: HB 2100, imposing an excise tax on larger Washington employers’ payroll for employees earning $125,000 or more annually, remains in the mix but has been dormant since its January 22^nd public hearing in the House Finance Committee.

Technology, AI, and Consumer Regulation

HB 2481, prohibiting surveillance-based or algorithmic pricing practices and imposing a moratorium on electronic shelf labels in grocery and retail establishments, is done for the session having failed to move past the fiscal cutoff.
SB 6284, establishing consumer protections for “high-risk” AI systems, died on the Senate side at Monday’s fiscal cutoff, but a similar proposal, HB 2157, was pulled from the House Rules Committee on Friday and may receive a floor vote prior to Tuesday’s House of Origin cutoff. It requires developers and deployers of high-risk AI systems to use reasonable care to protect consumers from algorithmic discrimination and imposes a series of transparency and risk management requirements on developers and deployers of such systems. It has qualified exemptions for financial institutions and insurance operations whose anti-discriminatory obligations are set out in other laws. If the bill passes the House, it faces an uncertain future in the Senate.

Labor and Employment

HB 2144, requiring notice to employees regarding electronic monitoring used for performance evaluation, backed by administrative enforcement and a private right of action, died in the House Appropriations Committee at the fiscal cutoff.
HB 2471 and SB 6117, the NLRB “trigger” bill creating state-level labor relations regulation in the event federal law no longer pre-empts state law or the National Labor Relations Board declines or loses jurisdiction over labor disputes, passed the House Friday on a 58-35 vote, while the Senate version cleared the Ways & Means Committee on Monday and is in the Senate Rules Committee.
HB 1155, banning non-compete agreements and limiting non-solicitation agreements, passed the House Tuesday on a 65-29 vote while its companion, SB 5437, has remained idle in the Senate Rules Committee.
HB 2105, the Attorney General’s Immigrant Worker Protection Act, requiring 72-hours’ notice to current and former employees of a federal I-9 work eligibility audit, passed the House in after-midnight floor action early Saturday morning on a 56-38 vote. Employer concerns remain over the feasibility of complying with its requirements and the steep penalties and lawsuit threat imposed for errors. Click here for a copy of a letter submitted by a coalition of ten business organizations sharing these concerns, which was read in part during the floor debate.

Payroll-Tax-Funded Programs and Workers’ Compensation

SB 5847, narrowing the Labor & Industries medical provider network and imposing penalties for employers found to have directed medical care, passed the Senate Friday on a 30-18 vote, and is now before the House Labor & Workplace Standards Committee where it is scheduled for a hearing on Wednesday. As amended by the Senate, the bill removes some of the expansive jeopardy for employers assisting injured workers in their medical care. Nevertheless, Labor & Industries calculates the bill’s broader overhaul of its medical benefits will be extremely expensive, releasing a fiscal note estimating a $102 million immediate decrease in State Fund reserves and an ongoing annual $138 million increase in costs to the Fund.
SB 6136, requiring additional transparency in industrial insurance rate-setting, passed the Senate on a 48-0 vote on Tuesday, while its House companion, HB 2188, was pulled from the Rules Committee and could get a floor vote.
HB 2243 and SB 6152, expanding the definition of attending provider to include physical and occupational therapists, remains momentarily alive on the Senate side but has not moved from the Rules Committee in a couple weeks.
HB 2372 and SB 6067, adding the value of employer-provided health insurance in an injured worker’s time loss or pension benefits when an employer does not continue to provide coverage, failed to move in either chamber by the fiscal cutoff and is done for the session.
SB 5292, modifying the statutory basis for setting Paid Family & Medical Leave premium rates in favor of actuarial determination, passed the Senate Friday on a 43-5 vote.

Liability Reform and Litigation

HB 2255, regulating third-party litigation funding and requiring disclosure of funding arrangements, remains in the House Rules Committee and needs a pull to the floor by Tuesday’s cutoff in order to remain alive.
HB 2095, creating a presumption of negligence for motorists involved in collisions with “vulnerable roadway users,” was pulled from the House Rules Committee on Friday and may see floor action this week.
SB 6239, requiring non-binding arbitration for certain tort claims against the state and its political subdivisions, was pulled from the Senate Rules Committee on Tuesday. As a potential cost-saving measure targeting the state’s exploding tort liability, the bill is likely exempt from cutoff deadlines.

Insurance

SB 5928, requiring disclosure of wildfire risk scores, passed the Senate Wednesday on a 48-1 vote.
SB 6079, establishing a wildfire mitigation grant program while restricting underwriting based on IBHS designations, passed the Senate Friday on a 37-11 roll call.
SB 6031, strengthening OIC’s fraud prevention tools, was pulled from the Senate Rules Committee on Tuesday and could see floor action in advance of cutoff.
SB 6178, banning post-loss assignments of benefits in property insurance, passed the Senate 48-0 in previous weeks’ action, and is now scheduled for a public hearing in the House Consumer Protection & Business Committee this Wednesday.
SB 6248, adopting the NAIC model travel insurance regulation, cleared the Senate Wednesday on a 48-1 vote.
HB 2428, requiring proof of delivery for life insurance lapse notices, passed the House 94-0 on Thursday with industry-backed amendments adopted, and is before the Senate Business, Trade & Economic Development Committee for a public hearing on Wednesday.

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