Washington Legislative Update - Week 5

February 14th, 2025

First cutoff in sight as bills continue moving toward House and 
Senate floor action.

With the legislative session now one-third complete this weekend, the pace of new bill introductions has slowed and lawmakers are focused on the session’s first major deadline next Friday for bills to clear their policy committee. Bills with fiscal impact and referred to a fiscal committee have until the next Friday, February 28^th, to receive a vote. The first cross-over House of Origin cutoff follows that, on March 12^th.    

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

Budget & Taxes
Property tax increase proposals took center stage this week as the House Finance Committee heard two bills addressing state and local property taxes. HB 1334, the main proposal, would change the current voter-approved 101 percent annual cap on property tax increases to 100 percent plus inflation, tied to the Consumer Price Index, up to a 103 percent cap. House Republicans mounted an aggressive online campaign against the measure, resulting in over 12,000 people signing in to the committee hearing opposed to the measure. The committee also heard HB 1356, which takes a slightly different approach, changing the annual cap on state property tax collections from 101 percent to 100 percent plus a population growth factor, up to a cap of 103 percent, in order to enhance public K-12 funding. Both measures are likely to sit in the Finance Committee until budget and tax negotiations heat up later in session.

Transportation
The big news in transportation this week was the introduction Monday of the Road Usage Charge bills, HB 1921 and SB 5726 to offset declining gas tax revenue for preservation and maintenance of roads and highways. Sponsored by House Transportation Committee Chair Jake Fey (D-Tacoma), and the culmination of many months of meeting with stakeholders, the bill imposes a 2.6 cents per mile road usage charge. Initially, the program would be voluntary from 2027 to 2029 for all electric and hybrid vehicles, and from 2029 to 2031 for internal combustion vehicles with a fuel economy of 20 miles per gallon or higher. Starting in 2029, the program would become mandatory for all electric and hybrid vehicles and would phase in between 2031 and 2035 for internal combustion vehicles, with higher MPG vehicles going first. Drivers would report their miles traveled annually at license renewal or could use automated options like a GPS transponder. In addition to the charge itself, drivers would pay a 10 percent fee on their total annual mile charge. There would be a credit against the charge in the amount of gas tax paid. The bill received its initial hearing in the House Transportation Committee Thursday afternoon. Similar to the property tax proposal mentioned above, House Republicans decried the proposal across social media, resulting in nearly 20,000 people signing into the hearing opposing the concept.     

Business Regulations
Despite widespread industry opposition HB 1671, a consumer-focused comprehensive data privacy bill, was voted out of the House Technology Committee on Friday. SB 5423, the Senate “right to repair” bill, is scheduled for a committee vote on the 21^st, while its House companion, HB 1483, was voted out of the House committee Tuesday and referred to the House Rules Committee. In artificial Intelligence, HB 1168 (data transparency in AI) has been idle in the House Appropriations Committee, while HB 1170 (required AI detection tools for created content) has been idle in House Rules. SB 5600, regulating Transportation Network Companies (TNC) use of surge pricing during large-scale events, is now scheduled for a committee vote next Friday. HB 1332, regulating TNCs who onboard drivers in particular product classifications, is in the House Rules Committee. SB 5676, requiring immediate delivery of electronic entry tickets for entertainment events was heard in the Senate Energy, Environment & Technology on Tuesday, where it was broadly opposed by ticket sellers. It is not set for a committee vote.  HB 1217, capping annual increases in residential rents, was voted out of the House Committee on Housing on Monday and is in the Rules Committee. Finally, HB 1739, imposing limitations on the use of self-checkout stations in Washington grocery stores was heard in the House Labor & Workplace Standards Committee on Wednesday. It has not been scheduled for a committee vote before next Friday’s deadline.  

Labor & Employment
HB 1155, barring non-compete agreements, was referred to the House Rules Committee this week, while HB 1213, expanding job protection and other coverage in the paid family & medical leave insurance system, was referred to the Appropriations Committee for further review, as was 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). On Tuesday, the House Labor Committee heard HB 1764, establishing a $25/hour statewide minimum wage by 2031, 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. The minimum wage bill is not expected to move this session, while the other two bills are set for a committee vote next week. On Friday, the committee voted out HB 1313, expanding notification requirements and continuation of health benefits in the event of a “mass layoff.” On the Senate side, the Senate Labor & Commerce Committee on Friday voted out SB 5041, providing unemployment insurance benefits to striking workers, and SB 5525, another mass layoffs notice bill, with an amendment making it more similar to the House version. SB 5626, creating an unemployment benefit for undocumented workers, is set for a committee vote next Friday.

Insurance
SB 5141, excusing disability income insurers from single case filings for rate changes, was placed on the Senate floor consent calendar on Wednesday, inching closer to a floor vote. HB 1645, establishing an auto repair appraisal process, was heard in the House Consumer Protection & Business Committee on Wednesday, and its Senate companion, SB 5721, is set for a hearing this coming Wednesday. HB 1539, creating a wildfire mitigation working group, was heard Wednesday in the House Agriculture & Natural Resources Committee, and voted out of committee on Friday. HB 1714, allowing certain small businesses to create self-insurance risk pools, was also heard Wednesday and is scheduled for a committee vote next 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, is scheduled for a vote this Thursday in the Senate Financial Services, Business & Trade Committee. HB 1793, requiring reports of fire losses to OIC rather than the State Fire Marshal, was heard in committee Wednesday. SB 5262, making technical corrections to various sections of the insurance code, was voted out of committee on Thursday, while its companion, HB 1505, was voted out of committee Friday. Finally, HB 1199 and SB 5331, providing authority to order restitution in insurance disputes and levy $10,000 per violation fines on insurers, does not appear to be moving on the House side, but is now scheduled for a committee vote on the Senate side this coming Wednesday.  

Financial Services
HB 1285, requiring financial literacy education in high school graduation standards, is on the list of bills the House Education Committee may vote on either this coming Monday or Wednesday. On Friday, Senator Bob Hasegawa (D-West Seattle) introduced his perennial bill to create a Washington state public bank, SB 5754.

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 correct provision was pulled from the Senate Rules Committee on Wednesday. There is still some discussion amongst employers whether the bill’s amended form provides sufficient protection from lawsuits. HB 1507, barring the use of non-disclosure and non-disparagement agreements in medical malpractice settlements is not scheduled for a committee vote before cutoff, while  HB 1527, providing that an offer of settlement in a medical malpractice claim subject to mandatory mediation does not expire until after the mediation, appears headed for the same fate. Likewise, HB 1518, creating new presumptive negligence standards, statutory penalties, and punitive damages in claims arising from collisions involving bicycles and pedestrians, is not set to move from committee this session. HB 1403, a bill that would improve the liability landscape for condominium developers, as part of an affordable entry-level housing push, was voted out of committee on Friday.

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