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Remaining bills are now in their opposite house, supplemental budget proposals are expected this week, and tax discussions continue to take center stage

Published February 23, 2026 at 8:44 AM · Legislative Advocacy - Washington

With now under three weeks remaining in the session, and the House of Origin deadline having passed on Tuesday, committees are now considering opposite-house bills and getting ready for introduction and public hearings this week on the House and Senate versions of the operating, transportation, and capital budget proposals. The cutoff for policy bills to continue is Wednesday the 25th, followed by March 2nd for fiscal committees and March 6th for floor action. The budgets, and bills considered necessary to implement them, including tax bills, are not subject to these deadlines.  

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.

Budgets

  1. Incoming Monday: The House and Senate supplemental operating, transportation, and capital budgets will start rolling out Monday, with a Democratic leadership press conference scheduled Monday morning to announce the spending plans. The House Appropriations Committee and Senate Ways & Means Committee will hold hearings Monday afternoon on their respective operating budget proposals. The Senate Transportation Committee will take up their supplemental budget in hearing on Tuesday, while the House Transportation Committee will hear their budget on Wednesday. Tuesday is also capital budget day, with the House Capital Budget and Senate Ways & Means Committee hearing their proposals. By the end of this week, each of the three budgets should clear their committees and be ready to cross chambers and set the stage for final negotiations in the last weeks of session.

Taxes

  1. Income Tax: While the House version of the 9.9 percent annual “Millionaire’s Tax” proposal has not moved, on Monday, the Senate passed its version, SB 6346, on a 27-22 vote, with bipartisan opposition. Notably, a floor amendment was adopted prior to passage that repeals the retail sales tax on services adopted last session under SB 5814, except for advertising services, effective January 1, 2030. The bill is now before the House Finance Committee, where it is scheduled for public hearing on Tuesday and executive committee action on Friday.
  2. New Income Tax & Constitutional Amendment: On Thursday, moderate House Democrat Amy Walen, D-Bellevue, introduced a competing income tax proposal, HB 2738, along with a related constitutional amendment, HJR 4213. Notable differences in Rep. Walen’s approach include removing the “marriage penalty” in the original proposal, applying the tax to individual income over $1 million annually, or household income over $2 million. Further, it proposes a drop in the state portion of the sales tax from 6.5 percent to 5.75 percent. It also doubles the charitable contribution available as a deduction. The constitutional amendment, meanwhile, makes clear that an income tax is permissible, cements the maximum rate at 9.9 percent, and the income threshold at $1 million, adjusted annually for inflation. Rep. Walen made an argument for her approach and to delay consideration until next session in this Seattle Times op-ed, published Saturday.     
  3. Local Government Taxing Authority:  HB 2442, expanding the use of local property tax revenues, authorizing a new 0.01 percent sales tax increase to fund child and family services, and expanding the authorized use of sales tax revenue by counties and cities, passed off the House floor on Tuesday by a 53-44 vote, and is now scheduled for a public hearing in the Senate Ways & Means Committee on Thursday.  
  4. 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, was voted out of the Ways & Means Committee on the Senate side with an amendment that does not address insurance industry concerns over broad, retroactive application to multiple forms of insurance business and products. The bill goes to the Senate Rules Committee to await further activity. The House version remains in the House Rules Committee, and it is anticipated its sponsors will be sharing updated amendment language with stakeholders soon.  
  5. Employer Assessment/Tax for Employee Use of Medicaid: SB 6173 would assess private employers of more than 100 employees for the full cost to the state of their employees who utilize state Medicaid for health insurance. The bill was scheduled for an executive session vote in the Ways & Means Committee on Thursday evening, with an amendment proposed that purported to expand the assessment to include independent contractors. After the parties returned from their caucuses, however, the bill was removed from the executive session list and has not yet been rescheduled.

Sales Tax on Services

  1. SB 5814 Follow Up: As noted above, the passage of last year’s SB 5814 continues to drive multiple follow-up proposals. While the Senate income tax proposal would repeal all but its advertising sales tax in four years, HB 2257 and SB 6113, the Department of Revenue’s “technical fix” bill, have attracted more immediate exemption requests. Several proposals have been introduced to exempt school districts from the tax, including in an amendment to HB 2257. The House version also contains an exemption for 501(c) non-profit organizations from having to collect the sales tax on live presentations, a key concern for trade associations and other non-profit entities that depend on educational and other programming to support their missions. Presently, HB 2257 is in the House Rules Committee, while SB 6113 – which does not include the non-profit live presentation exemption – passed off the Senate floor this past Monday on a 45-3 vote. It is scheduled for a public hearing in the House Finance Committee on Friday, after which the committee is expected to ultimately amend the bill to conform to HB 2257.   

Technology, AI, and Consumer Regulation

  1. Neither of the “high risk AI systems” bills, SB 6284, or HB 2157, survived the House of Origin cutoff. Various ancillary proposals related to young adult safety online, AI chatbot regulation, and disclosure requirements for AI-generated content, continue to move in this space.

Labor and Employment

  1. HB 2471, 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, was heard in the Senate Labor & Commerce Committee on Tuesday and voted out of committee on Friday.
  2. HB 1155, banning non-compete agreements and limiting non-solicitation agreements, is scheduled for a public hearing in Senate Labor on Monday, and an executive session vote on Tuesday.
  3. 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, was voted out of the Senate Labor Committee without a public hearing on Friday, and heads to the Ways & Means Committee.   

Payroll-Tax-Funded Programs and Workers’ Compensation

  1. SB 5847, narrowing the Labor & Industries medical provider network and imposing penalties for employers found to have directed medical care, was heard in the House Labor Committee on Wednesday, and is set for a vote out of committee this coming Tuesday.
  2. SB 6136, requiring additional transparency in industrial insurance rate-setting, was heard in the House Labor Committee on Friday. It is set for a committee vote this coming Tuesday.
  3. HB 2243 and SB 6152, expanding the definition of attending provider to include physical and occupational therapists, did not survive the House of Origin cutoff.
  4. SB 5292, modifying the statutory basis for setting Paid Family & Medical Leave premium rates in favor of actuarial determination, is scheduled for a public hearing in the House Labor Committee on Tuesday and an executive session vote on Wednesday.

Liability Reform and Litigation

  1. HB 2255, regulating third-party litigation funding and requiring disclosure of funding arrangements, was pulled this past week from the Rules Committee for potential floor action, but ultimately did not survive the House of Origin cutoff.
  2. HB 2095, creating a presumption of negligence for motorists involved in collisions with “vulnerable roadway users,” passed the House on Tuesday on a 53-44 vote with bipartisan opposition. It is scheduled for a public hearing in the Senate Law & Justice Committee on Monday with an executive session vote set for Tuesday. The bill was amended on the House floor to soften some of its provisions, but still contains the troubling burden-shifting on negligence.
  3. SB 6239, regarding tort claims against the state and its political subdivisions, passed the Senate on Wednesday on a 33-16 vote, and is now scheduled for a public hearing in the House Civil Rights & Judiciary Committee on Tuesday, and executive session on Wednesday. As amended on the Senate floor, the bill’s approach shifted from mandatory pre-trial arbitration for certain tort claims against the state to a pre-trial administrative claims commission adjudication model.
  4. SB 5360, establishing criminal penalties for environmental incidents, including negligence, was pulled from the Senate Rules Committee this past Monday and passed off the Senate floor on Tuesday, on a 27-22 vote with bipartisan opposition. It is now scheduled for a public hearing in the House Environment & Energy Committee on Monday.  

Insurance

  1. SB 5928, requiring disclosure of wildfire risk scores, is scheduled for a public hearing in the House Consumer Protection & Business Committee on Tuesday, and a potential executive session vote on Wednesday.
  2. SB 6079, establishing a wildfire mitigation grant program while restricting underwriting based on IBHS designations, is also set for a committee hearing Tuesday and executive session vote Wednesday.
  3. SB 6031, strengthening OIC’s fraud prevention tools, passed the Senate on Wednesday unanimously, and is now scheduled for a committee hearing Tuesday with an executive session vote on Wednesday.
  4. SB 6178, banning post-loss assignments of benefits in property insurance, was heard in House Consumer Protection & Business on Thursday, and is scheduled for executive session this coming Tuesday.  
  5. SB 6248, adopting the NAIC model travel insurance regulation, is up for public hearing in the House on Tuesday, with an executive committee vote set for Wednesday.
  6. HB 2428, requiring proof of delivery for life insurance lapse notices, was heard in the Senate Business, Trade & Economic Development Committee on Wednesday and was voted out of committee on Thursday. It is in the Senate Rules Committee awaiting further action.