Washington Legislative Update: First cutoff arrives, but a large number of bills remain in play

With 42 days of the 105-day session now in the books, the Legislature on Friday hit its first cutoff deadline for bills to emerge from a policy committee in their chamber of origin. Bills with fiscal impact and referred to a fiscal committee have until this coming Friday, February 28^th, to receive a vote and on the House side, Appropriations Committee members worked Saturday to hear a couple dozen bills in preparation for the cutoff. The first cross-over House of Origin cutoff follows that, on March 12^th.    

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

Budget & Taxes
After hearings on high profile property tax bills last week, the fiscal committees of both chambers were relatively quiet this week, as bills started coming in from policy committees in advance of next Friday’s fiscal cutoff. Governor Ferguson has scheduled a press conference on Thursday morning to begin releasing more details of his forthcoming budget proposal, including both agency spending reductions as well as his $100 million proposal to fund more law enforcement positions around the state. This promises to be an important and possibly delicate part of the budget endgame later in session, as the proposal has already drawn criticism from more progressive members of the House Democratic Caucus. With the Governor having publicly vowed to veto any budget that does not include this funding, the issue may create additional challenges to reaching an ultimate budget agreement. Elsewhere, two school funding measures are headed to public hearing in the Ways & Means Committee on Monday, with SB 5186 lowering the vote threshold from 60 percent to a simple majority for school bonds and levies, and SJR 8200, proposing amendments to the state constitution to accomplish the same purpose while forbidding school impact fees on new residential development.

Transportation, Capital Budget & Construction
This past week, the Senate Transportation Committee held a work session and public hearing on its version of the Road Usage Charge (RUC) bill, SB 5726. As was the case in the House, Republicans ran a social media campaign to encourage thousands of people to “sign in” to the hearing opposed to the measure. Both this measure, and its House companion, HB 1921, will sit in committee a bit longer. As bills considered necessary to implement a potential transportation budget, they are exempt from cutoff deadlines. SB 5176, requiring prompt pay for contractors on public works projects is also now set for a public hearing in the Ways & Means Committee on Monday. SB 5061, escalating prevailing wage rates on public works to the rates in effect when work is performed, rather than when contracted, passed the Senate Labor & Commerce Committee on Friday, and is now set for hearing Monday in the Senate Transportation Committee, with a possible vote Tuesday. Also up for hearing in the House Transportation Committee on Monday is HB 1970, streamlining contracting options for the Department of Transportation. On Saturday, the House Appropriations Committee heard HB 1183, updating building code provisions to promote affordable housing, and it is scheduled for a committee vote on Tuesday. Also Tuesday, the House Capital Budget Committee will hear HB 1458, requiring the state Building Code Council to address carbon emission reduction standards in buildings. Finally, SB 5360 is gaining wider attention. It strengthens the criminal punishments available for actions that cause environmental pollution for both entities and individuals, and of concern, could impose criminal fines and incarceration for merely negligent (accidental or inadvertent) actions in addition to knowing or intentional actions.

Business Regulations
HB 1671, a consumer-focused comprehensive data privacy bill, cleared its policy committee before cutoff, but is in the Appropriations Committee without a hearing or vote scheduled so far. In artificial Intelligence, HB 1168 (data transparency in AI) is set for an Appropriations Committee hearing with a vote on Thursday, while HB 1170 (required AI detection tools for created content) has been idle in House Rules. SB 5676, requiring immediate delivery of electronic entry tickets for entertainment events died at cutoff.  HB 1217, capping annual increases in residential rents, is still in the House Rules Committee. HB 1739, imposing limitations on the use of self-checkout stations in Washington grocery stores died at cutoff.  

Labor & Employment
HB 1155, barring non-compete agreements, is still in the House Rules Committee this week, while HB 1213, expanding job protection and other coverage in the paid family & medical leave insurance system, was heard Saturday in the House Appropriations Committee. HB 1672, a data privacy for employees bill, is in the Appropriations Committee but so far does not have a hearing set. HB 1747, protecting applicants and employees from adverse action on the basis of past arrest or conviction records, was voted out of the House Labor Committee on Thursday and is in House Rules. HB 1313, expanding notification requirements and continuation of health benefits in the event of a “mass layoff,” is in the House Rules Committee. One of the few House-side labor bills not to clear the first cutoff is HB 1764, establishing a $25/hour statewide minimum wage by 2031. On the Senate side, SB 5041, providing unemployment insurance benefits to striking workers, is in the Ways & Means Committee with a hearing set for Tuesday, while SB 5626, creating an unemployment benefit for undocumented workers, has a hearing in Wasy & Means on Wednesday. SB 5525, another mass layoffs notice bill, is in the Rules Committee.

Insurance
HB 1645, establishing an auto repair appraisal process and mandating an appraisal clause in personal auto policies, was set for a vote in the House Consumer Protection & Business Committee on Friday, but was not brought up, causing it to die at cutoff. Its Senate companion, however, SB 5721, was voted out of the Business, Financial Services & Trade Committee on Thursday and referred to the Rules Committee. HB 1199 and SB 5331, providing authority for the Commissioner to order restitution and levy $10,000 per violation fines on insurers, did not move by cutoff on the House side, but was voted out of the Senate Committee on Wednesday and is in the Rules Committee. SB 5589, ordering a study of the use of credit history and credit-based insurance scores, and other rating factors, in underwriting for personal lines was voted out of committee Thursday and is also in the Rules Committee.  HB 1539, creating a wildfire mitigation working group, cleared the first cutoff and is in the Rules Committee. HB 1714, allowing small businesses to create self-insured risk pools received a vote out of committee on Wednesday.

Financial Services
HB 1285, requiring financial literacy education in high school graduation standards, was voted out of the House Education Committee on Monday, and is in the Appropriations Committee where it will need a hearing and vote by this coming Friday in order to continue moving. The bill to create a Washington state public bank, SB 5754, was heard Wednesday in the Senate Business, Financial Services & Trade Committee, and was voted out of committee on Thursday. It is now before the Ways & Means Committee. HB 1599, a bill creating a licensing and regulatory framework for debt adjusters and debt resolution companies to operate in Washington, did not emerge from committee by Friday’s cutoff deadline.

Civil Justice & Liability
Several bills in this space died at cutoff, including HB 1507, barring the use of non-disclosure and non-disparagement agreements in medical malpractice settlements,  HB 1527, extending the deadline for settlement offers in medical malpractice claims going to mediation, and HB 1518, creating new presumptive negligence standards, statutory penalties, and punitive damages in claims arising from collisions involving bicycles and pedestrians. Still moving are 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 correct provision and HB 1403, addressing warranty provisions and mandatory arbitration for condominium construction defect disputes. The former is on the Senate floor calendar, the latter is in the House Rules Committee awaiting further action.  

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