Nearly 1,500 bills are now in play in the Washington State Legislature as action continues to focus on committee hearings, amendments, and votes. Lawmakers are working toward the February 21st cutoff deadline for non-fiscal bills to emerge from their policy committee. A limited number of bills has now been voted off the House floor, but so far early action has mostly focused on non-controversial topics.

There was some intrigue this week on two fronts, as the House passed its operating rules for the next two sessions. Normally a perfunctory exercise, this rule package amended a centuries-old rule requiring a two-third vote to cut off debate on a bill. Analogous to the filibuster in the U.S. Senate, the House has historically allowed debate unless cut off by a supermajority vote, but that has now been changed to a simple majority vote, outraging minority Republicans. Additionally, the House passed a rule revoking access for the Governor’s staff. Traditionally, staff from the Governor’s office could freely enter the House chamber but now will require the invitation of a lawmaker. This is widely seen as a mild rebuke to Governor Ferguson by House Democrats for the more centrist tone he has struck in the early communications from his administration.

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

Budget & Taxes

The two primary fiscal committees of the Legislature have continued to focus their meetings on work sessions and hearing bills related to incidental budget matters. The House Appropriations Committee did hold a work session, rather than a hearing, on HB 1411, a bill limiting assumed revenues in the budgeting process to revenue levels forecasted by the Economic Forecast Council. This reform, offered by Republicans, is aimed at reducing the likelihood of budget deficits in the future. The major tax bills introduced at the beginning of session have not yet been heard, but the proposal to increase the state’s Business & Occupations tax to raise about $2.5 billion over the next four years continues to receive attention. HB 1320, introduced at former Governor Inslee’s request, increases the B&O tax rate on service businesses by 20 percent from this October through December of 2026, at which point the surcharge on services ends and is replaced by a 10 percent rate increase on all business categories, including services, starting January of 2027. This proposal was analyzed in a recent blog post by the Washington Research Council. Business interests concerned about being targeted for tax increases have released an educational campaign, budgetbreakdown.org, with commercials now airing during high profile sporting events to drive traffic to the site.     

Transportation & Construction

Although various projections of the shortfall in the transportation budget floated around entering session, transportation leaders have begun to talk about a $1 billion shortfall on current projects over the next two years. The leading idea to reduce dependence on decreasing gas tax revenue is to implement a 2.5 cent per mile road usage charge on electric and other vehicles, phasing in over the next several years. A bill on this topic is anticipated any time. It is also anticipated a bill will be introduced to implement a tax on retail deliveries. Like operating budget and tax bills, transportation project and revenue bills are exempt from most bill cutoff deadlines, so these proposals are on a slower track.

Business Regulation

HB 1217, imposing rent control, continues to move in the House, and will now be heard in the House Appropriations Committee this Monday. On Tuesday, The House Technology, Economic Development & Veterans Committee voted out HB 1168 and 1170, bills to require transparency and detection tools to consumers when a developer releases an AI system. Both bills received minor clarifying amendments prior to committee passage, but neither addressed concerns by the tech sector over the bills’ enforcement provisions. “Right to repair,” HB 1483, expanding consumer options to repair consumer electronics, was heard Friday in the House Technology Committee and is so far not scheduled for a vote. HB 1332, expanding Transportation Network Company driver rights with respect to product classes and driver records, was heard Wednesday in the House Labor Committee and is now set for a vote this Friday. HB 1613, regulating ticketing for sports, concerts, and other entertainment events, including limitations on reselling and transferring tickets, was introduced Monday but has not been scheduled for a hearing.

Labor & Employment

The House Labor Committee was scheduled to vote this week on HB 1213, expanding job protection and other coverage in the paid family & medical leave insurance system, and HB 1155, prohibiting non-compete agreements and limiting non-solicitation agreements, but postponed the vote to this coming Friday. HB 1308, broadening employee access to personnel records and reasons for discharge, backed by a new private right of action, was voted out of the House Labor Committee Friday with an amendment adopted to exclude public employees (and thereby avoid a fiscal impact to the state). The same committee heard HB 1313 on Tuesday, expanding notification requirements in the event of a “mass layoff,” 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. The latter is scheduled for a committee vote this Friday as is HB 1524, requiring panic buttons and other protections for employees who work alone, which had its public hearing on Wednesday.  On the Senate side, on Friday the Senate Labor & Commerce Committee voted out SB 5101, creating leave of absence rights to workers who are victims of hate crimes, after removing “bias incidents” as a reason for leave rights. This coming week, the committee will hear SB 5463, expanding workers’ compensation penalties for violation of “good faith and fair dealing” to private sector self-insured employers, SB 5548, expanding workers’ compensation disability benefits by adding the full value of employer-provided health benefits, SB 5525, requiring continuation of health care benefits for 120 days after a mass layoff for larger employers, and SB 5626, creating an unemployment benefit for undocumented workers.     

Insurance

The first bill voted off the floor this session in the House was HB 1006, providing greater financial guarantee options for service contract providers, which passed unanimously on Thursday and heads to the Senate where its counterpart, SB 5108, was pulled to the floor and awaits a vote in that chamber. HB 1230 and SB 5141, excusing disability income insurers from single case filings for rate changes, was voted out of committee Wednesday on the Senate side, and is scheduled for a vote this Wednesday in the Senate committee. HB 1078, disallowing consideration of pre-existing conditions in pet insurance, is now set for a committee vote this Friday, while HB 1504, requiring firearms owners to carry specific liability insurance, will be heard in committee on Wednesday. HB 1645 was introduced on Tuesday, establishing an auto repair appraisal process, but has not been set for a hearing. Commissioner Kuderer dropped a new request bill on Thursday, HB 1748 and SB 5589, ordering a study of the use of credit scores and credit-based insurance scores in underwriting for personal lines, ostensibly setting up a framework to revisit past efforts to ban their use. Among the Commissioner’s other request bills, SB 5419, requiring reports of fire losses to OIC rather than the State Fire Marshal, was heard in the Senate committee on Wednesday, while a House companion, HB 1793, was just introduced. A bill making housekeeping corrections to various sections of the insurance code, HB 1505 and SB 5262, received a hearing Thursday on the Senate side with a House hearing set for this Friday. The industry continues to work with OIC on amendments to  HB 1199 and SB 5331, providing authority to order restitution in insurance disputes and $10,000 per violation fines on insurers. The Senate version is scheduled for a committee vote this Tuesday.

Financial Services

HB 1285, an industry-supported bill to require financial literacy education in high school graduation standards, was originally scheduled for a vote out of the House Education Committee on Thursday but was postponed until this coming Thursday. Thus far it has drawn no amendments.

Civil Justice & Liability

On Tuesday, the Senate Labor & Commerce Committee heard 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, and it is scheduled for a committee vote this Friday. HB 1046, providing immunity from civil liability for individuals who damage a motor vehicle to rescue an animal or vulnerable person, was part of early floor action Thursday, passing the House on a mostly party-line 61-35 vote. HB 1518, creating new presumptive negligence standards, statutory penalties, and punitive damages in claims arising from collisions involving “self-propelled devices” will be heard in the House Civil Rights & Judiciary Committee on Wednesday. Finally, on Tuesday, the same committee will hear two significant medical malpractice bills, 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. Industry is opposing the former while supporting the latter.  

Upcoming Events

Environment, Energy & Technology (Senate) - SHR 1 and Virtual J.A. Cherberg - 2/4 @ 1:30pm

• SB 5430 - Public Hearing - Concerning approval of electric utility wildfire mitigation plans. (Remote Testimony Available).

• SB 5465 - Public Hearing - Authorizing electrical companies to securitize certain wildfire-related costs to lower costs to customers. (Remote Testimony Available).

Business, Financial Services & Trade (Senate) - SHR 2 and Virtual J.A. Cherberg - 2/5 @ 8:00am

• SB 5331 - Exec Session - Strengthening consumer protection through increased insurer accountability for violations of the insurance code.

Civil Rights & Judiciary (House) - HHR A and Virtual JLOB - 2/5 @ 8:00am

• HB 1504 - Public Hearing - Enhancing public safety by requiring financial responsibility to purchase or possess a firearm or operate a firearm range. (Remote Testimony Available).

Consumer Protection & Business (House) - HHR B and Virtual JLOB - 2/5 @ 1:30pm

• HB 1078 - Exec Session - Concerning pet insurance.

Community Safety (House) - HHR D and Virtual JLOB - 2/6 @ 8:00am

Environment & Energy (House) - HHR B and Virtual JLOB - 2/6 @ 8:00am

• HB 1522 - Exec Session - Concerning approval of electric utility wildfire mitigation plans.

Consumer Protection & Business (House) - HHR B and Virtual JLOB - 2/7 @ 8:00am

• HB 1516 - Public Hearing - Conducting a study of insurance coverage options for permanently affordable homeownership units. (Remote Testimony Available).

Labor & Workplace Standards (House) - HHR D and Virtual JLOB - 2/7 @ 10:30am

• HB 1402 - Exec Session - Concerning job postings requiring driver's licenses.

• HB 1213 - Exec Session - Expanding protections for workers in the state paid family and medical leave program.

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