Washington Legislative Update - February 9, 2025

Fourth week of the legislative session sees more early floor action, with bills continuing to move through committees

With over 1,600 bills now introduced in this year’s session, lawmakers are down to two weeks before the first major cutoff of the session, February 21^st, in which bills must clear the policy committee in their chamber of origin. Bills with fiscal impact and not otherwise necessary to implement a budget have until February 28^th to receive a vote out of a fiscal committee. The House and Senate were both on the floor this week for limited action, sending mostly, though not exclusively, non-controversial bi-partisan measures over to the opposite house.

Top updates and issues from the fourth week, and coming activity, include: 

Budget & Taxes: Two tax and fiscal issues have arisen this week and into next week, as the Seatle Times reported that part of the state’s estimated $12 billion four-year budget deficit is complicated by $500 million in settlement payouts for tort lawsuits, $370 million of which is related to childhood sexual abuse allegations against the Department of Children, Youth & Families, and there is an additional $2.5 billion in future liabilities based on claims and lawsuits now in process. In response, Senate Republicans introduced SB 5144 to require legislative hearings on any lawsuit payouts over $1 million, but is has not been set for hearing. This coming Tuesday, the House Finance Committee will hold a hearing on one of the major tax bills of the session, HB 1334, increasing the annual cap on property tax increases from one percent to three percent, and tying increases to consumer price inflation. 

Business Regulation:  Various types of commercial regulatory proposals are heating up, as the House Technology & Economic Development Committee on Tuesday heard HB 1671, a consumer-focused comprehensive data privacy bill, and has set it for a vote this coming Friday. SB 5423, the Senate “right to repair” bill, was heard on Wednesday, while its House companion, HB 1483, is set for a House committee vote this coming Tuesday. Artificial Intelligence bills continue to move, with HB 1168 (data transparency in AI) before the House Appropriations Committee, and HB 1170 (required AI detection tools for created content) in the House Rules Committee. In preparation for the FIFA World Cup coming to Seattle next year, SB 5600 would regulate Transportation Network Companies (TNC) use of surge pricing during large-scale events, and was heard in the Senate Labor & Commerce Committee on Tuesday. HB 1332, regulating TNCs who onboard drivers in particular product classifications, was voted out of the House Labor & Workplace Standards Committee on Friday. HB 1613, regulating ticketing for sports, concerts, and other entertainment events, including limitations on reselling and transferring tickets, was pulled from the hearing calendar and appears done for the year, but SB 5676 was introduced on Thursday and is set for a public hearing in the Senate Environment, Energy & Technology Committee this Tuesday. It would require immediate delivery of electronic entry tickets. Finally, HB 1217, imposing residential rent control, was heard Monday in the House Appropriations Committee and is set for a committee vote this coming Monday.

Labor & Employment: The House Labor Committee voted on Friday to advance HB 1155, barring non-compete agreements, HB 1213, expanding job protection and other coverage in the paid family & medical leave insurance system, and HB 1402, making it an unfair practice under the Law Against Discrimination for an employer to advertise that a position requires a valid driver’s license (unless driving is an essential function of the position). Next week, the committee on Tuesday will hear the statewide $25/hour minimum wage and mandatory paid vacation and bereavement leave bill, HB 1764, along with HB 1672, a data privacy for employees bill, and HB 1747, protecting applicants and employees from adverse action on the basis of past arrest or conviction records. On Friday, the committee is set to vote out HB 1313, expanding notification requirements in the event of a “mass layoff.” On the Senate side, on Monday, the Senate Labor & Commerce Committee heard SB 5525, requiring continuation of health care benefits for 120 days after a mass layoff for larger employers, and on Tuesday heard SB 5463, expanding workers’ compensation penalties for violation of “good faith and fair dealing” to private sector self-insured employers and SB 5626, creating an unemployment benefit for undocumented workers. On Friday, the committee heard SB 5548, expanding workers’ compensation disability benefits by adding the full value of employer-provided health benefits. This coming Tuesday, the committee will hear SB 5578, the companion to the House minimum wage and paid vacation/bereavement leave bill, and on Friday is scheduled to vote out SB 5041, providing unemployment insurance benefits to striking workers.

 Insurance: SB 5108, providing greater financial guarantee options for service contract providers, passed the Senate unanimously on Wednesday. Both it and its House companion, HB 1006, have now passed their chambers in early action and await consideration in the opposite houses. HB 1230, excusing disability income insurers from single case filings for rate changes, was voted out of the House Consumer Protection & Business Committee Wednesday, while its Senate companion, SB 5141, awaits a Senate floor vote. HB 1645, establishing an auto repair appraisal process, has been scheduled for a public hearing this coming Wednesday. HB 1539, creating a wildfire mitigation working group, is set for public hearing this Wednesday, and a committee vote on Friday. HB 1714, allowing certain small businesses to create self-insurance risk pools, is also scheduled for a public hearing on Wednesday. Among Commissioner Kuderer’s request bills, SB 5589, ordering a study of the use of credit scores and credit-based insurance scores in underwriting for personal lines, was heard Thursday in the Senate Financial Services, Business & Trade Committee. HB 1793, requiring reports of fire losses to OIC rather than the State Fire Marshal, is set for a committee hearing this Wednesday. A bill making housekeeping corrections to various sections of the insurance code, HB 1505 received a committee hearing Friday and is set for a committee vote this coming Friday. HB 1199 and SB 5331, providing authority to order restitution in insurance disputes and levy $10,000 per violation fines on insurers is presently on hold while industry discusses amendments with OIC.

Financial Services: HB 1285, an industry-supported bill to require financial literacy education in high school graduation standards, has now been scheduled for a committee vote in the House Education Committee twice over the last two Fridays, but no vote has been taken. It has not drawn any amendments in committee but will need to move from committee by the 21^st to remain in play. Financial regulatory proposals have been relatively light this session; the industry has mostly been working on opposition to SB 5070, a bill that would ban credit card interchange fees on tips and sales tax collections. This bill splits the business community, as some sectors would prefer not to pay credit card fees on payments, like sales tax, that the establishment passes through to the state. A similar proposal, HB 1623, is moving in the House, related only to tips, and was heard on Wednesday and is set for a committee vote this Friday. One tax bill in play targeting a financial institution is HB 1506, removing the Business & Occupations tax exemption for credit unions if they acquire or merge with a commercial bank. It is before the House Finance Committee but not yet scheduled for hearing.

Civil Justice & Liability: SB 5408, addressing lawsuit abuse arising from the state’s job posting salary & benefits disclosure law by providing a ten-day notice and right to cure provision was voted out of the Senate Labor & Commerce Committee on Friday, with an agreed-to amendment accepted. With employer and plaintiffs’ bar agreement on the bill, it now has a reasonable chance of passing. On Tuesday, the House Civil Rights & Judiciary Committee heard HB 1507, barring the use of non-disclosure and non-disparagement agreements in settlements, and  HB 1527, providing that an offer of settlement in a medical malpractice claim subject to mandatory mediation does not expire until after the mediation. The non-disclosure bill was initially set for a committee vote next week but was taken off the calendar. HB 1518, creating new presumptive negligence standards, statutory penalties, and punitive damages in claims arising from collisions involving bicycles and pedestrians was heard Wednesday in the same committee, drawing significant opposition. It has not been scheduled for a committee vote. HB 1403, a bill that would improve the liability landscape for condominium developers, as part of an affordable entry-level housing push, was scheduled for a vote in the Civil Rights & Judiciary Committee on Friday but was held over until potentially next week.

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