Northwest Yacht Brokers Association Government Affairs Committee Updates

Hedrick Weekly Update: March 2-6, 2026

Leslie Simmons — Tue, 10 Mar 2026 00:48:31 GMT

From NYBA lobbyist Jim Hedrick:

"As the 2026 legislative session races toward its March 12 adjournment deadline, lawmakers in Olympia tackled major housing, privacy, tax, budget, and policy battles this week. With Friday night marking the opposite-house floor cutoff, several high-profile proposals moved forward while others quietly faded as time ran out.

Governor Bob Ferguson also stepped off the sidelines this week and inserted himself into the debate over the proposed Millionaires Tax. Whether the proposal ultimately passes or fails, progressive tax reform has clearly emerged as the defining issue of the 2026 legislative session; and one Democratic leaders appear poised to make a central theme of the 2026 election cycle.

Million Dollar Drama
The proposed Millionaires Tax, which currently awaits a vote on the House floor next week, had appeared doubtful earlier in the week. In an email to supporters, Governor Ferguson acknowledged the proposal faced uncertain prospects and lacked clear support in the Legislature.

By Thursday night, however, the political landscape had shifted. Negotiations intensified and momentum began building behind a revised version of the measure. On Friday, Ferguson announced he would sign the latest version of the proposal if it reaches his desk, signaling that a compromise may finally be within reach and that the long-debated tax could be nearing the finish line.

For review, the millionaires tax imposes a 9.9% state income tax on earnings above $1 million, affecting roughly 30,000 Washington taxpayers and generating an estimated $4 billion annually once it takes effect in 2028. The newest version of the bill reflects several changes made during negotiations with the governor. Most notably, it directs a significant portion of the new revenue toward universal school meals for K-12 students, while dedicating five percent of the proceeds to child care and early learning programs. Lawmakers also expanded targeted tax relief aimed at offsetting costs for some families and businesses, a change that helped bring the governor on board.

Notably absent from the revised proposal is funding previously set aside to help cities and counties manage rising public defense costs, a removal that has drawn concern from local governments already grappling with increasing legal obligations.

While the governor’s endorsement removes one major obstacle, the bill still faces procedural and political hurdles. The Senate has already approved its version, but the House must now pass the revised measure before the Legislature adjourns next week. Republican lawmakers are expected to challenge the proposal on the floor and may attempt to slow the process through amendments and procedural tactics. Even within the Democratic caucus, there remains some caution about establishing what many view as the state’s first true income tax.

If the bill ultimately passes and is signed into law, the political fight will likely shift quickly from the Legislature to the courts and the ballot box. Washington’s longstanding constitutional interpretation treats income as property, raising questions about whether a graduated income tax can withstand legal scrutiny. As a result, the debate over the measure may be far from over even after the legislature adjourns.

The Ground Floor

Governor Ferguson’s signature affordable housing bill, SB 6026 (Alvarado, D-Seattle), passed another major hurdle this week. The bill, aimed at expanding residential development in areas traditionally reserved for commercial or mixed-use purposes, passed the House on a 69-27 vote after the Senate had approved its version earlier (36-12). The Senate is expected to vote to concur with the House amendments next week, sending the legislation to the Governor for signature.

The legislation reflects the state’s ongoing housing shortage and focuses on encouraging development in areas already served by infrastructure, employment centers, and services. Cities with populations of 30,000 or more, along with non-rural counties under the Growth Management Act, will be required to allow residential uses in commercial or mixed-use zones— with certain exceptions such as industrial areas, sensitive shorelines, historic districts, and lands outside urban growth areas.

The bill also eases regulatory barriers that have slowed housing development. For example, it limits local requirements to include ground-floor commercial space to no more than 40% of commercial zoning, while publicly subsidized affordable housing is fully exempt. Developers can request waivers or reductions, and local governments must consider whether doing so would help create more housing. Local ordinances will need to be updated within 18 months, or the state rules will take effect automatically.

Law Enforcement Technology and Privacy Protections

Privacy advocates and law enforcement alike saw progress this week on SB 6002 (Trudeau, D Tacoma), a bill that regulates the use of automated license plate readers (ALPRs). The Senate passed the bill 40-9, and the House approved its version 84-10. With broad agreement between lawmakers, local governments, the ACLU, and law enforcement agencies, the Senate is expected to concur with the House version next week.

SB 6002 establishes clear rules for when and how ALPR systems can be used, aiming to balance public safety with privacy rights under the U.S. and Washington Constitutions. ALPRs may be used to track stolen vehicles, missing persons, outstanding warrants, and serious criminal investigations, as well as limited traffic and parking enforcement. Most collected data must be deleted within 21 days, and sharing or selling data is strictly prohibited. The bill also protects sensitive locations including schools, places of worship, health care facilities, and food banks from ALPR monitoring. Agencies must register their systems, adopt usage policies, train staff, report annually, and conduct internal audits. Violations can carry criminal penalties, civil liability, and consumer protection enforcement. With an emergency clause, the bill takes effect immediately to safeguard privacy.

Housing

HB 2266 (Peterson, D-Edmonds) aims to expand housing options and address homelessness by changing how Washington cities and counties regulate supportive and emergency housing. The bill requires jurisdictions to allow transitional and permanent supportive housing anywhere residential units or hotels are permitted and indoor emergency shelters where hotels are allowed, removing local zoning barriers that have slowed development.

The bill limits local governments from imposing more restrictive development or operating standards than those applied to other residential or lodging uses, while allowing objective requirements like setbacks, stormwater, and building codes. Local authorities retain limited power to address health and safety, such as requiring shelter operators to notify neighbors, hold community meetings, designate emergency contacts, and adopt operational policies. In specific cases near schools or other shelters, cities may negotiate additional safety protocols. Jurisdictions cannot restrict shelters in ways that prevent meeting projected housing needs, but existing protections remain for critical areas, natural hazards, and agricultural, forest, or mineral lands. Cities and counties must update zoning and development rules within two years or by their next comprehensive plan update.

Supporters say the bill ensures consistent statewide rules to speed housing delivery for vulnerable populations, while critics warn it limits local land-use control. Overall, HB 2266 4 reflects the Legislature’s strategy to accelerate housing production and address homelessness through statewide zoning reforms.

Expanding Authority of the State Attorney General

This week the legislature considered SB 5925 (Hansen, D-Bremerton) that would expand the Attorney General’s authority to issue civil investigative demands (CIDs). The proposal gives the office the power to request documents, written responses, and oral testimony from individuals or entities when there is reason to believe state or federal laws have been violated.

The bill is designed to apply before any civil proceeding is initiated, allowing the Attorney General to gather information efficiently. It covers a wide range of potential violations, including constitutional rights, labor and employment laws, public health and safety statutes, and consumer protections. Notably, the authority does not extend to criminal investigations or federal agencies performing official duties.

Key safeguards include demands must be specific, relevant, and reasonable, and cannot require the disclosure of privileged information. Individuals and entities can petition the court to modify or quash a demand, and the court can impose sanctions consistent with civil discovery rules. The legislation also includes confidentiality provisions to protect sensitive materials and restrict disclosure. Copies of documents or testimony may only be shared under strict terms, primarily for enforcement purposes, and cannot be used in criminal prosecutions.

Finally, the bill requires the Attorney General to report to the Legislature within four years on the use of these investigative demands, including how many were issued, set aside by courts, resolved informally, or enforced through court action. In short, this bill aims to provide the Attorney General with modern tools for civil law enforcement, while maintaining checks, transparency, and protection of rights.

Data Center Oversight Fails

Not every bill survived the legislative gauntlet this week. HB 2515 (Doglio, D-Olympia), which would have required utilities and data center companies to protect ratepayers from rising costs and provide transparency on environmental impacts, failed after the Senate Committee on Ways & Means did not bring the bill to a committee vote.

The bill had strong support from environmental groups, Tribes, and ratepayer advocates, who warned that the rapid expansion of data centers could strain the grid, increase electricity costs, and impact water resources. However, major tech companies like Microsoft and Amazon lobbied heavily against it, with Microsoft publicly calling the bill “uniquely anti-competitive” just before the committee deadline.

Proponents argued the legislation was a common-sense step to hold tech companies accountable for their climate commitments and protect communities, while opponents emphasized the economic and infrastructure benefits of the data center sector. Lawmakers like Rep. Beth Doglio (D-Olympia) vowed to continue pursuing solutions, emphasizing the ongoing impact on the grid, utility bills, and environmental sustainability.

What’s Next

The regular legislative session adjourns Thursday, March 12. Between then and now there will be an agreed to operating, transportation, and capital budgets released, revenue bills to create resources to support those budges, about 150 bills that need votes to have their differences reconciled between the House and Senate, and an historic vote on this final version of the millionaires tax. One more week."

Hedrick Weekly Update: February 23-27, 2026

Leslie Simmons — Mon, 02 Mar 2026 23:46:59 GMT

From NYBA lobbyist Jim Hedrick:

"Hedrick Weekly February 23-27, 2026

As the 2026 legislative session enters its final weeks, budget negotiations have shifted decisively from policy aspirations to balance-sheet reality. Last Sunday’s release of House and Senate supplemental operating budgets marks the point at which fiscal assumptions, revenue risk, and long-term cost exposure move from theory into binding decisions. The budgets now under negotiation rely heavily on one-time resources, delayed revenue from a proposed highearner income tax, and internal fund shifts, choices that may stabilize the near term but leave unresolved questions about future tax policy, spending discipline, and economic competitiveness. The next two weeks will clarify not only the state’s immediate spending posture, but the direction of its fiscal framework heading into the next biennium.

Operating Budgets

The Senate Democrats’ budget is less a vision document than a stabilization plan for a government whose core costs are outgrowing its revenue model. Nearly all the headline spending growth is driven by unavoidable maintenance-level increases; Medicaid caseloads, child welfare, public schools, inflation, and legal liabilities while the actual policy choices shrink programs, tap reserves, and lean on revenue that won’t materialize for years.

The budget’s biggest investment isn’t new services, but a $1 billion down payment on the state’s self-insurance liability account, an implicit acknowledgment that past underfunding and litigation risk are now crowding out everything else. That move may be fiscally responsible, but it also exposes how little room lawmakers have to maneuver. To make the math work, Democrats rely on three risky pillars:

Delayed revenue — The 9.9% tax on income above $1 million is baked into the budget narrative even though it doesn’t generate general fund revenue until 2029. It functions more as a political placeholder than a near-term solution.
One-time money — A $750 million withdrawal from the rainy-day fund, plus capital gains and public works transfers, plugs short-term gaps while leaving future budgets thinner and more volatile.
Quiet program trims — Savings from Working Connections Child Care, K-12 transition funding, and Local Effort Assistance are framed as “harm reduction,” but they still shift costs and reduce access during a period of slowing economic growth.

Democratic leaders like Senate Ways & Means Committee Chair Sen. June Robinson (D-Everett) are candid that this budget is being built under pressure from inflation, caseload growth, and federal uncertainty. But the result is a plan that pushes the hardest structural decisions into the next biennium. Meanwhile, Republicans’ warning that the income tax could eventually broaden, is valid because the current budget doesn’t actually solve the underlying imbalance. In contrast, Governor Ferguson’s spending plan called for deeper near-term cuts and broader tax relief. Legislative Democrats are betting that time, growth, and a new high-end tax will converge before reserves run out. If that bet misses, the next Legislature won’t be debating enhancements it’ll be debating retrenchment.

New Revenue and Fund Transfers
Both the Senate and House budget proposals assume enactment of a new 9.9% tax on income over $1 million, approved by the Senate last week and working its way through the House this week. While revenue would not begin until 2029, the tax is projected to generate $2.3 billion for the general fund that year and about $3.5 billion annually thereafter. Democrats propose using the revenue to expand the Working Families Tax Credit, reduce B&O taxes for small businesses, and exempt personal hygiene products from sales tax. These gains are partially offset by policy changes, including an estate tax adjustment reducing revenue by $435 million and expanded school sales tax exemptions. Overall, revenue legislation in the Senate budget would raise $2.9 billion over four years, with the new income tax accounting for roughly 80% of that total.

By contrast, Governor Ferguson proposed a more restrained supplemental budget in December that relies more heavily on spending reductions, redirects $570 million in Climate Commitment Act funds, and includes a smaller draw on reserves. While supportive of a high-earner income tax, Ferguson has also called for additional small-business tax relief, repeal of hygiene product taxes (i.e. diapers), and twice-yearly sales tax holidays statewide.

Transportation Budgets

Monday, the House and Senate supplemental transportation budgets were released and reflect a shared recognition that Washington’s transportation system faces mounting cost pressure. However, they diverge sharply in how to manage fiscal risk and long-term obligations. The contrast is not simply about spending levels, but about the balance between near-term delivery certainty and long-term debt exposure.

The House proposal totals $16.5 billion, a $1.1 billion increase over the enacted budget, and avoids authorizing new general obligation bonds. This approach emphasizes fiscal discipline and predictability, favoring cash-funded investments and reappropriations to address system needs without expanding future debt service. For the private sector, the House budget signals a steady but constrained project pipeline, with lower exposure to future fiscal corrections or mid-biennium rebalancing driven by debt costs.

The Senate proposal totals $17 billion, a $1.5 billion increase, and relies heavily on financing to manage escalating construction costs and schedule risk. The Senate authorizes $1.1 billion in new general obligation bonds, including $400 million for a cost-increase reserve account intended to absorb inflation and unforeseen project overruns. Preservation funding reaches approximately $525 million, combining $405 million in new funding and $40 million in reappropriations, alongside a $45 million increase in maintenance.

Notably, both chambers exclude the Governor’s proposed $1 billion ferry vessel construction plan. The absence of a clear commitment to ferry fleet replacement perpetuates uncertainty for maritime contractors, suppliers, and port-adjacent businesses, while increasing the likelihood that deferred capital costs will escalate in later biennia.

Final negotiations are likely to center on bonding levels and preservation funding, rather than overall spending. The House position establishes a lower bound on new debt, while the Senate frames bonding as necessary risk management rather than expansion. A probable conference outcome includes reduced bonding authority relative to the Senate proposal, preservation funding closer to the Senate level, and partial retention of the cost-increase reserve concept at a smaller scale. Ferries remain a wildcard: absent external pressure or a late-stage agreement on delivery strategy, they are likely to remain unresolved in this supplemental.

Capital Budgets

The 2026 House and Senate supplemental capital budget proposals advance targeted investments in housing, climate resilience, education infrastructure, and flood preparedness while relying on remaining debt capacity and Climate Commitment Act revenues. Together, the proposals emphasize near-term infrastructure needs while also using capital resources to support broader state budget stability.

The Senate proposal authorizes $723 million in net total funds, including $382.6 million in new debt-limit bonds and $219 million from Climate Commitment Act accounts. Major investments focus on housing and homelessness, water conservation and clean energy, small school district modernization, and flood response. In addition to project funding, the proposal redirects approximately $1 billion in capital cash resources—such as capital gains, public works, and higher education building accounts—to support the operating budget. While total capital appropriation levels for public works and higher education buildings are maintained through 4 account substitutions, the shift reduces available cash traditionally reserved for capital purposes.

The House proposal appropriates $910.6 million in total funds, including $399.4 million in debtlimit bonds and $511.2 million from other state and federal accounts. The bond appropriation nearly exhausts the remaining $404.4 million in available bond capacity for the biennium. The proposal also relies heavily on Climate Commitment Act funding, dedicating $400 million to clean energy, building decarbonization, salmon recovery, and habitat conservation.

An additional $239.9 million in Climate Commitment Act funds is used to refinance previously bond-funded natural resources projects, freeing up bond capacity that is then applied to higher education building projects. The resulting higher education building account revenues are redirected to the operating budget. These account changes are net-neutral within the capital budget but play a significant role in supporting the House supplemental operating budget.

Overall, the proposals preserve headline capital investment levels while increasing reliance on refinancing strategies and carbon-market revenues, effectively using the capital budget as a stabilizing mechanism for the state’s broader fiscal framework.

The Week Ahead

The week will start with the Opposite-House Fiscal Committee cutoff on Monday, March 2 and the week will end with the Opposite-House Floor Cutoff, Friday March 6. Behind the scenes are budget negotiations where a smaller yet more elite group of legislators, including fiscal committee chairs, are reconciling differences between the House and Senate budget proposals. Customarily, a representative from the governor’s office also sits in to make certain that not only the Governor’s interests are represented and communicated but also to make certain specific components will get signed into law by the governor; the governor has a sub-section level veto power on bills that contain an appropriation.

There’s just two weeks left to adjournment on March 12."

Hedrick Update: Feb 16-20, 2026

Leslie Simmons — Wed, 25 Feb 2026 23:43:39 GMT

From NYBA lobbyist Jim Hedrick:

"Breathing Room

The Washington State Legislature wrapped up House of Origin floor action this week, sending a wave of bills across the rotunda to opposite-chamber policy committees. Lawmakers now face a fast-moving timeline, with only until February 25 to review, debate, and advance those measures.

One of the sure signs that session is entering its final phase is the release of the pre-budget revenue forecast, which budget writers rely on to put final touches on their proposals. The Monday forecast from the Washington State Economic and Revenue Forecast Council showed Washington’s economy and state finances performing modestly better than expected.

Projected General Fund–State revenue for the 2025–27 biennium is now approximately $827 million higher than the November forecast, bringing total expected collections to roughly $75.3 billion. Revenue for the 2027–29 biennium is also projected to be more than $1 billion higher, largely driven by stronger personal income, employment, and tax receipts.

This improved outlook gives budget writers some welcome breathing room as they prepare supplemental budget proposals easing, but not eliminating, pressure as lawmakers work through competing priorities ahead of the March 12 adjournment. Democratic budget leaders have been quick to emphasize that while the forecast helps, challenges remain.

Legislative Budgets

Following the revenue forecast, the Legislature will roll out its supplemental budget proposals for the second year of the biennium. Operating budgets from both chambers are scheduled for release Sunday afternoon, House at 3:00 p.m. and Senate at 4:00 p.m., and will be posted publicly online.

Public committee hearings are slated for Monday, followed by committee markup and votes on Tuesday. Floor action could come as early as Wednesday or Thursday.

If the budget process feels fast, that’s because it is. Leadership moves quickly to minimize opportunities for amendments or organized opposition, and procedurally the budgets must be placed “into dispute” to formally trigger negotiations between the chambers.

Millionaire’s Tax

On Monday, majority Democrats sought to bolster the state’s long-term revenue outlook by approving SB 6346 (Pedersen, D-Seattle), commonly referred to as the “Millionaire’s Tax,” following a lengthy and often contentious floor debate. Minority Republicans offered multiple amendments aimed at reshaping the proposal, but none were adopted.

When the final vote was taken, three Democrats—Senators Cortes (D-Battle Ground), Hansen (D-Bremerton), and Krishnadasan (D-Gig Harbor)—broke with their caucus and joined Republicans in opposing the bill, resulting in a 27–22 vote. The measure now moves to the House.

The tension did not end there. On Tuesday, Governor Ferguson addressed the bill during a media availability, proposing to direct more than half of the projected revenue, roughly $1.9 billion annually, back to Washingtonians through affordability measures. His plan includes approximately $1 billion to dramatically expand the small-business B&O tax credit, effectively eliminating B&O taxes on the first $2.5 million in revenue for many businesses and reducing them for thousands more.

He also proposed roughly $380 million annually to expand the Working Families Tax Credit by increasing eligibility and boosting rebate amounts by 30 percent, along with targeted sales-tax relief, including a sales-tax holiday for purchases under $1,000 and exemptions for diapers, baby products, and hygiene items. Ferguson emphasized that these investments must represent new dollars directly back into people’s pockets.

Legislative Democrats responded with visible frustration, not only over the substance of the proposal but also over how it was unveiled. Rather than negotiating through press conferences, they urged the governor to engage directly with legislative leadership.

The 5 o’clock Bill

One of the recurring dramas of floor cutoff days is identifying the “5 p.m. bill”—the last bill introduced before the deadline. Bills must be introduced by 4:59 p.m. to remain eligible, after which legislators often go “at ease” to caucus and negotiate before returning for final action.

This year, however, the Senate hit an unexpected snag when Senator Short (R-Coleville) requested that the full 39 pages of a bill dealing with transmission reliability and capacity be read aloud. Typically, only the first and last lines are read. The full reading, a rarely used procedural tactic, consumed significant time and effectively stalled floor action.

As a result, several bills scheduled for consideration never reached the floor and are now considered dead. In the aftermath, members from both parties acknowledged the unforgiving nature of cutoff deadlines. Majority Leader Senator Pedersen (D-Seattle) later suggested the delay stemmed from a misunderstanding, noting that discussions would continue and that the issues could be revisited next session.

Bills Suffering the Cutoff

Several high-profile bills failed to advance before the House of Origin cutoff, despite extensive debate. Among them was HB 1834 (Callan, D-Issaquah), Attorney General request legislation addressing minors’ use of social media. Despite months of stakeholder negotiations, three substitute versions, and 15 floor amendments, the bill ultimately stalled. HB 2389 (Cortes, D, Everett), which sought to prioritize community-based rehabilitation in juvenile justice, also failed to advance after drawing more than 60 amendments and intense debate. Speaker Jinkins acknowledged during floor action that the votes were not there.

Other bills that died include HB 2611 (Scott, D-Seattle) establishing a 32-hour workweek; HB 2578 (Lekanoff, D-Tulalip) adding tribal representatives to the Fish and Wildlife Commission; HB 2112 (Leavitt, D-Lakewood) setting a minimum age for accessing adult content online; and SB 6111 (Salomon, D-Seattle) requiring social-media platforms to verify user age.

Environmental Protections and the Line Between Efficiency and Erasure

Two politically linked bills quietly died on the Senate floor calendar this week when time ran out. SB 5466 (Shewmake, D-Bellingham) would have granted broad environmental exemptions to accelerate transmission of “green energy,” while SB 5609 (Kauffman, D-Auburn) sought to strengthen protections for cultural resources as a condition of permitting. Together, the bills highlight a growing fault line in Olympia between utilities, environmental advocates, Tribes, and labor.

Every session, the State Environmental Protection Act (SEPA) shows up wearing two hats. On one side are categorical exemptions, designed to streamline low-impact projects and prevent regulatory paralysis. In a state facing housing shortages, infrastructure needs, and ambitious climate goals, exemptions are often framed as common sense.

On the other side are cultural resources, which don’t regenerate or relocate. Archaeological sites, tribal cultural properties, and historic landscapes are uniquely vulnerable because damage is often invisible until it’s irreversible. Once a project is categorically exempt, the legal trigger to even look for these resources can disappear.

Supporters of expanded exemptions argue SEPA has become a litigation tool detached from environmental outcomes, driving delay and cost. But cultural-resource protection is not outlined elsewhere in Washington State law as other resources do such as land use, water, fish, and air quality. Protection of cultural resources is about ensuring development does not unintentionally erase history, particularly Indigenous history. The uncomfortable truth is that categorical exemptions don’t just reduce paperwork; they reduce legal visibility. When review disappears, so does consultation and when consultation disappears the tension between Tribes trying to protect their heritage and state government, labor and utilities trying to produce, construct and sale energy becomes intense. This phenomenon is not going away anytime soon.

The real question is not whether efficiency matters. The question is whether speed is being calibrated carefully enough to preserve the remaining legal backstops for cultural resources under SEPA. SEPA reform done right can make the process faster and fairer. Done wrong, it risks trading short-term convenience for permanent loss. And once that’s gone, no categorical exemption can bring it back.

The Week Ahead

Budgets and fiscal committee work will dominate the coming week as legislators and lobbyists scramble to get that “one last thing” added—or removed—from spending and tax bills. Fiscal committees will face long days of testimony and executive action, not only on budget bills but also on policy bills that have crossed over.

That workload is driven in part by the opposite-house policy committee cutoff on Wednesday, February 25. Expect a busy week and for more bills to stall, die, or change significantly as scrutiny intensifies under the very real constraint of limited spending capacity."

State Quarterly Revenue Forecast - November 2025

Leslie Simmons — Mon, 01 Dec 2025 22:17:11 GMT

From NYBA lobbyist Jim Hedrick:

"On November 18th, the updated state quarterly revenue and economic forecast was released. The November 2025 forecast shows an economy that’s slowing down both nationally and here in Washington, albeit not dramatically. The U.S. outlook is slightly stronger than it was in September, in that output is slightly stronger, and inflation has eased a bit. Washington’s outlook however has softened: job growth is slower, the rate of personal income growth is slower, and the housing market looks weaker.

The net result is the near-term revenue forecast is only slightly changed. Revenue for the current 2025–27 biennium are increased by about $105 million; an increase driven by higher estate tax and tobacco settlement revenue, even with weaker sales taxes. For the following 2027-29 biennium, state revenue is projected to decrease by about $185 million compared to the September estimate.

For Governor Ferguson currently writing his first budget to be released in December and state lawmakers grappling with the 2026 supplemental operating budget, this newest revenue forecast shows only a modest change in how much money the state expects to collect over the next few years. The anticipated shortfall in the 2025-27 budget is currently a little over $100 million. Because of that, the 2026 supplemental budget, which is meant to make mid-course adjustments, not to make major changes to the overall biennial budget, will be extremely limited with no capacity for new spending. The types of taxes driving this revenue forecast come from one-time sources, like estate and tobacco taxes rather than broad economic growth.

In short: the supplemental budget will make targeted adjustments, not major expansions, because the revenue outlook is basically modest and the economic picture is uncertain.

Despite all these uncertainties, total state revenue is still expected to see steady growth at a pace of 10.9 percent between the 2023–25 and 2025–27 biennia, and another 6.6 percent between 2025–27 and 2027–29. State revenue collections continue to improve helped in part by tariff-related spending shifts to replacement products and retail sales have finally turned positive after more than a year of declines. Real estate activity picked up in 2024 before cooling again this Fall.

Tariffs continue to be the biggest factor of uncertainty. Over the past several months, the U.S. implemented or adjusted a wide mix of tariffs raising duties on lumber, furniture, cabinets, medium and heavy vehicles, and buses, while reducing some tariffs on items such as coffee, beef, fruit, and certain substances linked to fentanyl production. Overall, average U.S. tariff levels for 2025 are estimated at roughly 17.9 percent, the highest in many decades. This environment is contributing to near-term inflation pressure and altering consumption patterns, including within Washington’s taxable sales base.

Employment growth nationally has been slowing for years and dipped significantly over the summer. The Federal Reserve (FED) has cut interest rates twice as the job market has cooled. Washington State is still adding jobs, but only modestly, and the longer-term forecast for job growth has been revised downward. State economist Dr. Reich noted that the Washington construction and manufacturing sectors lead all other state industry sectors in job contraction.

Consumer confidence, which picked up late last year, has fallen again this year. Washington is still seeing stronger taxable sales, but housing and real estate have slowed. Inflation, measured by Consumer Price Index (CPI), in the Seattle area is up 2.8% year over year, and consumer sentiment, which improved at the end of 2024, has taken a noticeable step back in 2025.

Overall, both the U.S. and Washington economies are slowing and the risks to the forecast are substantial and largely tied to federal trade policy, inflation pressures, and contraction in the housing and commercial real estate markets. While Washington state’s near-term revenue outlook is sustaining very modest growth; the extended economic forecast remains vulnerable. "

Q4 Update from Government Affairs Committee

Leslie Simmons — Wed, 29 Oct 2025 20:28:58 GMT

The latest from Jim Hedrick, NYBA lobbyist:

"As we look ahead to the 2026 legislative session in Washington State, it’s an opportune moment for the marine and yacht-brokerage community to take stock of key policy developments that may affect our sector. With the session slated to be a short, 60-day legislative year, timing, clarity and prioritization will matter. Below are high-level themes and implications relevant for our industry:

With revenue growth facing headwinds (due to inflation, interest rates, and shifting federal support), the Legislature is expected to exercise heightened fiscal restraint. For yacht brokers and related marine-services firms, this translates into a couple of flags: Potential slowdown in state transportation and waterfront infrastructure funding, which may impact docks, marinas and public access facilities and tighter scrutiny of any new fees or taxes proposed under the guise of raising revenue for infrastructure or maintenance. Keep an eye on proposed surcharges, fees or tax changes (including the additional 0.5% sales and use tax on the selling price on all recreational vessels that are subject to the watercraft excise tax), that hasn’t even gone into effect yet but creates a cost barrier to yacht sales.

For yacht brokers the following needs to be tracked closely:

Any bills or budget items that change marina or waterfront land use, permitting or zoning.
Proposals around local tax/fee tools (tax increases, delivery fees, usage fees) that could affect goods, fuel, services or slip rents.
Budget indications for port and marina infrastructure—operations, maintenance, public-access docks, shoreline remediation.
Developments in housing policy that might interface with marina properties (for example, residential development proposals on or near marina sites).
Committee assignments, calendars and cut-off deadlines since the compressed session means timing matters.

The 2026 legislative session is scheduled to end in just 8 and half weeks on March 12; buckle up because it’s going to be fast and all of the small business community needs to remain vigilant."

Washington State Budget Update

Leslie Simmons — Tue, 30 Sep 2025 22:20:48 GMT

From NYBA lobbyist Jim Hedrick:

Washington State Faces $1.2 Billion Budget Shortfall Amid Slowing State Economy

In another sobering fiscal update, State Economist Dr. Dave Reich delivered his quarterly revenue forecast today to the Washington State Revenue and Economic Forecast Council, outlining a growing budget shortfall fueled by weakening economic conditions and rising national uncertainty. Despite stronger than expected tax collections since the last forecast in June, the state now faces a projected $1.2 billion revenue shortfall over the four-year budget outlook.

Reich announced that the state’s 2025–2027 revenue forecast has been revised downward by $412 million, bringing total expected revenue for the biennium to $74.3 billion. The subsequent 2027–2029 biennium forecast was also reduced by $477 million, on an estimated $79.5 billion revenue base. These revisions have immediate implications: when measured against the current two-year budget adopted by the Legislature earlier this year, Washington is now facing a shortfall of more than $400 million, one that grows substantially in the years ahead.

Although state sales and B&O tax receipts are outperforming forecasts, longer-term economic indicators are showing signs of risk. Reich explained that expectations for key economic drivers, including housing, construction, and personal income growth, have all weakened since June, prompting the downward revisions. “The uncertainty we’re seeing is not just local,” Reich said in his remarks. “There’s significant national volatility, much of it tied to federal trade and fiscal policy.” He pointed to rising tariffs, reduced federal health care spending, and a slowing labor market as signs that the broader economy may be entering a prolonged period of stagnation.

Nationally, the U.S. economy has slightly outperformed growth expectations, but at the cost of persistent inflation, which remains elevated. Though the Federal Reserve recently lowered interest rates, citing labor market softness, Reich cautioned that these efforts may be complicated by tariff driven price increases in the months and years ahead. “Inflation is very likely to pick up over the next few years as tariffs lead to price increases,” he warned.

Closer to home, Washington’s labor market is also showing signs of strain. Employment growth, once a reliable engine of the state’s prosperity, has slowed notably. Job growth for 2025 has now been revised down to 0.3% (from 0.5% in June), and 2026 growth is expected to be just 0.2%. Meanwhile, the state unemployment rate, currently forecast at 4.5%, is projected to rise to 4.9% by 2027 before declining again by the end of the decade.

One particularly concerning development is the performance of personal income in Washington, which for the first time in years is now expected to grow more slowly than the national average, a reversal from past trends. In addition, housing permits are forecast to decline in 2025, suggesting continued weakness in the construction sector.

The aerospace industry, a longtime cornerstone of the state’s economy, remains weak, though job losses appear to have stabilized. Reich noted that a modest recovery is expected through 2029.

This revenue forecast poses a major challenge for Governor Bob Ferguson, who is now preparing to release his first supplemental budget proposal this December. With a $1.2 billion shortfall looming and the state constitutionally required to balance its budget over a four-year horizon, Ferguson and the Legislature face tough choices.

While Ferguson’s Democratic Party holds sizable majorities in both legislative chambers, the politics of addressing such a gap, especially in an election year, are fraught. Whether through spending restraint, revenue increases, or a mix of both, the state’s leaders must now decide how to close the gap while maintaining critical services and investments.

The next official revenue forecast, scheduled for November 18, will set the stage for the Governor’s supplemental budget proposal, which must be released by mid-December under state law."

Final Legislative Update for 2025

Leslie Simmons — Thu, 22 May 2025 16:59:49 GMT

Governor Ferguson Completes Executive Actions on 2025 Bills passed legislature -- Only $25 million in Operating Budget vetoes.

Yesterday, May 20, the 2025 legislative session officially ended as Governor Ferguson wrapped up post-session bill action. Speculation mounted as Governor Bob Ferguson contemplated budget and revenue legislation. Would Ferguson approve the operating budget in full? Issue selective vetoes? Or potentially prompt a special legislative session to revise critical components of the operating budget supported by new revenue? In the end, Ferguson’s vetoes were minimal, striking only about $25 million out of a $77.9 billion two-year spending plan. As for the revenue package, all the B&O tax increases, all sales tax increases on services, the tax increase on capital gains, electric vehicles and liquor all escaped any veto action. Ferguson restored one exemption used by community banks, explaining that it needed to be restored to address affordable housing.

At a press conference on Tuesday after taking final action on bills Governor Ferguson confirmed he had signed the state budgets and related revenue bills, issuing only limited partial vetoes, which can be found here by clicking on Signed/Partial Vetoes. Ferguson emphasized a “careful, line-by-line” review of the budget and acknowledged the difficulty of several decisions.

A key feature of the operating budget is a $1 billion increase in K-12 education funding, with a strong emphasis on special education. Though Washington has been facing a $16 billion projected shortfall, Ferguson noted that no state employees will be furloughed, despite his original recommendation, and all current cash benefit programs – including TANF and food assistance like SNAP – will remain unchanged. Ferguson noted the budget also maintains the state’s rainy day fund and allows flexibility to respond to potential future federal funding cuts. Washington state receives approximately 20% of budget revenue from the federal government.

Concerning the governor’s $25 million in operating budget vetoes, Ferguson described the process as “intentional and precise”. Notably, he strongly signaled the need for further refinements to revenue legislation over the interim – especially changes to the Business & Occupation (B&O) tax and tax on services – before the 2026 supplemental budget is signed next year. While he ruled out calling a special session for now, he acknowledged that ongoing discussions around revenue measures would continue and has instructed staff to begin reaching out to stakeholders. “We need to spend more time on these bills to avoid unintended consequences,” he said, suggesting more than just technical corrections are ahead.

On the Senate’s last-minute passage of a proposed wealth tax that would have removed the exemption for intangible assets, Ferguson expressed cautious openness to a “small, targeted” version. However, he noted the likelihood of legal and voter challenges and made clear he would not rely on it to balance the budget.

(Content provided by NYBA Lobbyist Jim Hedrick)

Hedrick Weekly Update - Post Legislative Session

Leslie Simmons — Fri, 09 May 2025 23:04:29 GMT

From NYBA Lobbyist, Jim Hedrick:

"The 2025 Washington State legislative session has been one of the most tumultuous and emotionally charged sessions in recent memory, marked by significant political tension, major fiscal challenges, and the deaths of two beloved legislators. From the opening days, the atmosphere was fraught with division. Deep ideological splits over how to address the state’s financial crisis created a highly charged environment where lawmakers frequently clashed not only along party lines but also within their own caucuses.

The session was further shaken by the death of former House Speaker Frank Chopp (D-Seattle). A towering figure in state politics for decades, Chopp's passing was mourned across party lines, with tributes highlighting his enduring legacy on affordable housing and social justice issues. Adding to the heavy mood, Senator Bill Ramos (D-Issaquah) passed away while in office a mere two weeks from the end of session. Other major family tragedies were Rep. Tom Dent’s (R-Moses Lakes) son was shot in a police action and the Saturday before adjournment, the wife of Sen. Chris Gildon (R-Puyallup) very unexpectedly passed away.

Operating Budget

The most pressing issue was the staggering $16 billion budget deficit. The reality of the shortfall quickly consumed legislative discussions, setting the tone for the months ahead. Proposed cuts sparked widespread protests and added to the strain inside the building. In response, a range of revenue ideas were volleyed around the Capitol, from new taxes on capital gains to expanded sales tax bases and proposals for bond measures.

The final 2025-27 operating budget, Senate Bill 5167, appropriates $77.87 billion an 8.2% increase or nearly $6 billion more thank the 2023-25 budget. This 1,366 page document moved through the legislature from conference committee report to final passage in less than 30 hours. This budget passed the House on a 52 to 45 vote having 6 House Democrats cross-over with all 39 House Republicans to oppose the bill. The state Senate passed the budget on a more comfortable 28 to 19 vote with moderate Democrat in a special election swing district race this fall, Sen. Deborah Krishnadasan (D-Gig Harbor), the lone Democrat to oppose the bill.

While the budget assumes significant savings, it does not reduce net spending. In fact, it increases spending by $1.039 billion above the maintenance level; the cost to continue current services after adjusting for caseload and inflation. The budget largely shifts funding from prior commitments to new priorities, including state and nonstate employee collective bargaining agreements. The budget does not assume furloughs of state employees and previous versions did. The proposed conference report leaves a projected ending balance for the 2025-27 biennium of $225 million NGF-O and $2.3 billion in total reserves, including $2.1 billion in the Budget Stabilization Account or Rainy Day Fund. Adequate budget reserves was an issue Governor Ferguson highlighted that he needed to see in a final budget.

The final $77.8 billion operating budget includes nearly $6 billion in cuts and close to $9 billion in new revenue over the four-year outlook — significantly less revenue than legislative

Democrats had initially sought. Governor Ferguson previously rejected each version of the revenue plan, citing concerns that the proposals were “too risky.” The final budget also steers clear of furloughs for state employees, an option both Governor Ferguson and Senate Democrats had floated earlier in the session. It remains unclear whether Governor Ferguson will support the budget in full or issue partial vetoes. His decision will be closely watched, as it could either cement cooperation with the legislative majority or trigger a new round of political negotiations in a special session.

Revenue

The revenue package passed by the legislature is expected to generate $9.379 billion. The legislature passed a suite of bills with increasing existing taxes, eliminating some tax loopholes and authorizing new taxes. Components of the revenue package include increases on the business and occupation (B&O) tax; the state’s “top-line” gross receipts tax.

§ HB 2081 (Fitzgibbon, D-Seattle) will increase B&O tax rates on manufacturing from 0.484 percent to 0.5 percent and retailing from 0.471 percent to 0.5 percent and the large “catch-all” category of business services jumps from 1.5 percent to 2.1 percent. B&O surcharge rates are increased from 1.2 percent to 1.5 percent for an additional tax on financial institutions. 2081 is expected to raise $5.6 billion over the next 4 years.

§ SB 5814 (Frame, D-Seattle) places retail sales tax to many services and especially in the tech sector, makes nicotine products subject to the tobacco products tax, imposes an additional tax on cigarettes and create a mandatory one-time prepayment of retail sales tax collections for businesses with $3 million or more in taxable retail sales in calendar year 2026. 5814 is estimated to bring in $2.6 billion over the next 4 years.

§ SB 5813 (Wilson, C., D-Federal Way) generating $680 million for the state in the next 4 years would apply an additional 2.9 percent excise tax on individual's Washington capital gains exceeding $1 million and increase the qualifying family-owned business interests deduction amount for the estate tax to $3 million with annual inflation adjustments.

§ SB 5794 (Salmon, D-Shoreline) repeals several tax preferences beginning January 1, 2026, including interest on real estate loans B&O tax deduction; insurance producers, title insurance agents, and surplus line brokers preferential B&O tax rate, precious metals and bullion B&O and sales and use tax exemptions, home energy assistance public utility tax (PUT) credit, dentistry prepayments insurance premiums tax exemption, international investment management services preferential B&O tax rate, international services B&O tax credit, and international banking facilities B&O tax exemption.

§ HB 2077 (Fitzgibbon, D-Seattle) or the “Tesla Tax” establishes a new tax on businesses producing products under the zero-emission vehicle program generating $281,000 over years.

§ SB 5786 (Stanford, D-Seattle) increases the fees by as much as 50 percent on various liquor licenses, permits, and endorsements. 5786, after being amended in the House, is expected to make roughly $5 million a year.

§ The Legislature was contemplating HB 2049 to increase the property tax levy from 1 percent to 1 percent plus the rate of inflation and population growth up to 3 percent for both state and local property tax levies. Those provisions were removed from the bill.

Transportation

The legislature found some common ground on the issue of funding transportation. SB 5161, (Liias, D-Mukilteo), the transportation budget bill was dedicated to Sen. Bill Ramos (D-Issaquah) who served as vice-chair of the Senate Transportation Committee and very unexpectedly passed away last week.

The new revenue transportation budget is $15.5 billion backed by a new 6-cent per gallon gas tax increase which will go into effect July 1. The additional tax rate is expected to raise $1.4 billion over the next six years. The diesel tax would net upward of $160 million over that time. In total, lawmakers are banking on the package to bring in $3.2 billion over the next six years. The revenue package received no Republican support in the House and five Republican votes in the Senate.

SB 5801, also by Liias, is on its way to Governor Ferguson for action and contains numerous other fee boosts for transportation. It is estimated SB 5801 will generate nearly $3.2 billion in revenue for transportation projects over the next 6 years. Among its numerous components is an increase in the passenger vehicle weight fee, an increase in the sales tax for vehicles from 0.3% to 0.5%. There are $3 increases in the fees for titles and registrations. There’s a new 8% tax on the portion of the selling price of vehicles above $100,000. There’s a 10% tax on non-commercial aircraft sales above $500,000 and an additional tax of 0.5 percent on the selling price, plus trade-in property of like kind, for purchased recreational watercraft. There’s also a temporary increase in the rental car tax from 5.9% to 11.9% before moving down to 9.9% in 2027. There’s an increase in the tire replacement fee from $1 to $5. There’s a $1 increase every three years in fees for new IDs and driver’s licenses. And there’s an added charge for ferry riders paying with credit cards, as well as a 50-cent increase to the capital vessel surcharge on each fare.

The proposed money will keep some of the state’s major highway projects on current schedules like the North Spokane Corridor, Puget Sound Gateway spanning King and Pierce counties and improvements on State Route 520 between Seattle and Redmond. $580 million is included for the new Interstate 5 Columbia River Bridge spanning Washington and Oregon. Lawmakers

also approved $2.5 billion to pay for the replacement. The bridge replacement will cost an estimated $5 billion to $7.5 billion. Permits are anticipated by 2026, and construction is projected to last until 2032.

Capital Budget ... the Bipartisan Budget

Senate Bill 5195 (Trudeau, D-Tacoma) is truly a bi-partisan budget being approved unanimously in both the House and Senate. The proposed compromise 2025-27 biennial capital budget makes major investments including $975 million for K-12 education, $827 million for natural resources, and $772 million for housing and homelessness. The budget also includes $375 million from the climate commitment account to support projects aligned with environmental and energy goals.

Governor’s Actions

During the 105-day (15 weeks) session, the Legislature passed over 400 bills; many along with the operating budget and revenue package now await action from Governor Ferguson, who has until May 20th to take action. The governor has 20 days (minus Sundays) from the end of the regular session to take action on bills passed by the 2025 Legislature.

Pursuant to the Washington State Constitution, the governor can take 1 of 4 actions on bills. The governor can sign a bill into law in its entirety, veto the entire bill, partially veto bills by eliminating entire sections of a policy bill or eliminate sub-sections of bills that contain an appropriation, or take no action by May 20th and the bill becomes law (no pocket veto like the U.S President). Only 3 bills in state history have become law by the governor taking no action.

SB5801: Post-Adjournment Update

Leslie Simmons — Wed, 30 Apr 2025 21:19:45 GMT

NYBA Members, please see a recap from NYBA Lobbyist Jim Hedrick, on the status of SB5801, now that the State Legislature has adjourned for the year:

"The legislature adjourned Sunday, April 27, but not before passing SB 5801, the transportation revenue bill. The final version SB 5801 did NOT have a luxury boat tax. However, the legislature did pass an additional 0.5% sales and use tax on the selling price, including trade-in value, on all recreational vessels that are subject to the watercraft excise tax.

Senate Bill 5801 at section 201(4) page 20, lines 22-34 states:

(4)(a) Beginning April 1, 2026, in addition to taxes required under this chapter and chapters 82.12 and 82.49 RCW, there is levied and collected an additional tax of five-tenths of one percent on the selling price, plus trade-in property of like kind, for purchased recreational vessels. (b) In the case of a lease requiring periodic payments, the tax is imposed on the fair market value of the recreational vessel at the inception of the lease. (c) The revenue collected under this subsection must be deposited in the multimodal transportation account created in RCW 47.66.070. (d) For purposes of this subsection, "recreational vessel" means a vessel as defined in RCW 88.02.310* that is subject to watercraft excise tax under chapter 82.49 RCW.

*"Vessel" means every watercraft used or capable of being used as a means of transportation on the water, other than a seaplane.

There is similar language at section 202 (6), page 23 lines 25-33 imposing the identical 0.5 percent “use” tax recreational vessels.

Link to SB 5801 as Passed by the Legislature

Process: SB 5801 now goes to Governor Ferguson for action. Ferguson can sign the entire bill into law (likely), veto the entire bill (un-likely), or partial veto by striking entire sections (possible)."

We will update you if Governer Ferguson vetos the bill, or does a parital veto that would affect our industry.

SB 5801: Call to Action - Vessel Luxury Tax - April 7th

Leslie Simmons — Mon, 07 Apr 2025 20:51:38 GMT

We hope you have been able to catch up on where we currently stand with SB 5801 (see our prior email that was just sent out).

In light of the information shared by Jim Hedrick, both in terms of where SB 5801 stands, and how our messaging has so far been received by the House Transportation committee, we are pressing forward with an updated call to action to our membership.

Call to Action BACKGROUND:

"At this point, we must operate under the assumption that the legislature will end on time AND that the luxury boat tax will remain as part of the final package. Below are members of the Senate Transportation Committee, where the luxury boat tax was added, I recommend making contacts with the Senate Transportation Committee (where the luxury boat tax was added) with the message points delivered to House members. The onslaught of calls to House Transformation members was effective; we need to remain vigilant." - Jim Hedrick, NYBA Lobbyist

Call to Action MESSAGE:

"This tax will dramatically effect working class people - boatbuilders, boatyard workers, boat detailers, mechanics, service facilities, boat brokers and the many unique small businesses that make up the vibrant Washington recreational boating community. While it may be 'aimed' at the wealthy, it will have a disproportionate affect on the working class recreational maritime community."

You are welcome and encouraged to share business-specific messages of how this will affect YOUR business directly. Concrete 'real life' scenarios have excellent impact. (See: Fluid Motion LLC letter, Pacific Maritime Title letter, Randy Cowley letter).

Call to Action CONTACTS AND PHONE NUMBERS:

Marko Liias (D) Chair: 360-786-7640

John Lovick (D) Vice Chair: 360-786-7686

Bill Ramos (D) Vice Chair 360-786-7608

Curtis King (R) Ranking Member 360-786-7626

Emily Alvarado (D) 360-786-7667

Mike Chapman, Mike (D) 360-786-7646

Adrian Cortes, Adrian (D) 360-786-7634

Deborah Krishnadasan (D) 360-786-7650

Liz Lovelett (D) 360-786-7678

T'wina Nobles (D) 360-786-7654

Sharon Shewmake (D) 360-786-7682

Javier Valdez (D) 360-786-7690

Jeff Wilson (R) 360-786-7636

You can find additional information on the Senate Transportation Committee here, including mailing addresses and contact forms.

Respectfully,

Paul Groesbeck
NYBA Board President
(425) 829-3551

Kevin Blake
NYBA Board Member - Chairman of Government Affairs
(360) 808-7120

SB 5801 Update: April 7th

Leslie Simmons — Mon, 07 Apr 2025 20:50:38 GMT

As we wrapped up last week's Government Affairs work since the introduction of the Luxury Tax, we would like to send an update on where we are in the process. A call to action email with instructions, contacts and messaging will follow this email shortly.

1. Here is the latest from Jim Hedrick as of Saturday, April 5th:

"Earlier this week, Governor Ferguson laid out what he needs in a budget from the legislature. Essentially Ferguson said the legislature’s budget proposals depend too much new revenue and that the Wealth Tax (1% on financial assets of $50 million or more) probably would not withstand a court challenge and rejected it. Please understand, this is completely separate from the proposed luxury boat tax in the Senate Transportation budget and the provisions of SB 5801 remain intact and are still in play. SB 55801, passed by the Senate, is in the House Transportation Committee and at this time is still not scheduled for any action (i.e. public hearing).

Ferguson’s announcement essentially sends both the House and Senate back to the drawing board on their budgets; including the Senate Transportation which relies heavily on operating budget increases because of the sales tax diversion and general obligation bonding paid for with operating revenue. The likely hood of the legislature finding additional budget reductions, additional revenue, and coming to an agreement prior to the constitutional end of the session on April 27 is dwindling. Special session is a very real possibility.

At this point, we must operate under the assumption that the legislature will end on time AND that the luxury boat tax will remain as part of the final package. Below are members of the Senate Transportation Committee, where the luxury boat tax was added, I recommend making contacts with the Senate Transportation Committee (where the luxury boat tax was added) with the message points delivered to House members. The onslaught of calls to House Transformation members was effective; we need to remain vigilant.” - Jim Hedrick, NYBA Lobbyist

YOU WILL RECEIVE AN EMAIL SHORTLY WITH THE SENATE TRANSPORTATION COMMITTEE CONTACT INFO AND SUGGESTED MESSAGING.

2. We want to thank all members who have reached out to us for providing letters, comments and supporting our membership with this awareness campaign. This will take everyone in our Association as well as all of the others. As we talk and strategize with other organizations across the country, we find an overwhelming sense of urgency as well as pride for our industry and its people. While this drastically effects our brokerage industry, the impact is much larger on our great workforce of boatbuilders, boat yards, independent workers and so on. This is a jobs bill, pure and simple. It affects everyone and we are very proud to have the powerful resources and commitment of the Northwest Yacht Brokers Association at our disposal.

3. There has been an overwhelming response to the "Wealth Tax" conversation that the Governor talked about last week (see above, in Jim's update). Please understand that the Wealth Tax is very different than the Luxury Tax. The Wealth tax will tax aggregated wealth, and the Luxury Tax will tax boats, RV's, airplanes, and cars. These two are very different, which means the Luxury Tax is still a fight and we need to spread the awareness on how this effects our industry and its workers. Call or email your representatives and make it clear your opposition on this Bill. We do not want this attack on our industry ever again.

4. We sent out a survey/poll mid last week. The response has been great! Please take the time to complete the small survey as it helps us in our awareness for our Association. If you have any difficulties or questions, please call the NYBA office as they are more than happy to help. We will be expanding this into next week due to some members having difficulties with their passwords or the email going into their SPAM folder. Poll is linked here. (you must login to vote, you can reset your password by clicking the "forgot password" link at the login screen)

5. We have continued to move forward with our media partners. Since the last update, more than 100 media outlets have been notified. This list is too long to publish, so please, if you have a recommendation, reach out to us and we will contact them. Further, there was a segment with Kevin on KVI 570 discussing the impact of the bill on our industry that went very well. KVI is now wanting to focus on this further. Also, Soundings Trade Only did an interview which should be seen shortly. Lastly, our media strategist for the Boat Show is partnering with us to continue to add value to our awareness campaign.

6. Many of you asked about what the RV, Aircraft and Car industry is doing. We are in the process of gaining those connections and contacts in which we would look to collaborate any ideas or partnerships. If anyone has a direct contact, please let us know as we would like to explore this avenue as well.

To wrap up, our Lobbyist, Jim Hedrick, commended us on our efforts and indicated that the Northwest Yacht Brokers Association and its members are definitely being heard. Jim indicated that we need to push the gas pedal to floor and keep the calls, letters and emails coming into the representatives. Please have everyone in your organization, friends, clients, family members and so on call, email and make your voice heard in opposition to this SB5810.

Please find below letters from Fluid Motion LLC (the West Coast's largest fiberglass boat manufacturer) and Pacific Maritime Title, detailing their concerns regarding the impending luxury tax. These letters were sent to the House and Senate, sharing how the luxury tax will affect two very successful and growing businesses in the Northwest marine industry:

Fluid Motion LLC letter to Legislature (text copy)
Pacific Maritime Title letter to Legislature (official letter)

Please call us if you would like any other updates or have any questions or comments. Not only are we available but all of our Board Members and Association Staff members are available. Please do not hesitate to reach out.

Paul Groesbeck
NYBA Board President
(425) 829-3551

Kevin Blake
NYBA Board Member - Chairman of Government Affairs
(360) 808-7120

State Legislature SB5801 - Update Wednesday, April 2nd, 2025

Leslie Simmons — Wed, 02 Apr 2025 22:27:40 GMT

Dear Fellow NYBA Members,

As the chair of the Government Affairs Committee, it has been a busy 7 days since the news broke about the proposed Luxury Tax. Both Paul and I have been receiving an overwhelming response from our membership regarding the SB5801 - Luxury Tax. As an association that works and advocates for you and the membership, we are taking ALL recommendations and comments with the utmost care, consideration and action. The ideas and connections that have been put forth by all of you have been very heartfelt & meaningful, which reminds us of why we belong to the Northwest Yacht Brokers Association.

Since Monday's update, Governor Ferguson stated yesterday he will not sign either bill that includes wealth taxes. At this point, it is very unclear if that includes the luxury tax & we continue to seek clarification. With that said, this issue is very much alive and ongoing. Our association has reached out to many news publications, radio stations, social media platforms and other organizations to gain as much traction as possible. I have personally been speaking with David Campbell, the current President of the British Columbia Yacht Brokers Association. We have had great conversations about their current luxury tax and the devastating impact it has taken on their boating industry. It has been a great advantage to strategize and exchange ideas with an organization whom is currently living through a disaster similar to what is being proposed on our State. We continue to seek out collaborations and strategies collectively with other organizations daily. Our Industry has a voice, and it is being heard!

This includes the following:

PRINT/ONLINE PUBLICATIONS

48 North
Pacific Yachting
Soundings Trade Only
Boating Industry Canada
Powerboat
Superyacht Times
Boat Geeks
Boat Test
Boat International

RADIO

KVI 570
KTTS 770

ORGANIZATIONS/ASSOCIATIONS

NFIB - National Federation of Independent Businesses
Pat Heely of Viking Yachts - A big marine advocate and a strong following
Mike Joyce of Hargrave Yachts - A large following in the Superyacht industry an a weekly newsletter
NMTA - National Marine trade Association
RBAW - Recreational Boating Association of Washington
IYBA - International Yacht Brokers Association
YBAA - Yacht Brokers Association of America
BCYBA - British Columbia Yacht Brokers Association

SOCIAL MEDIA

NYBA Facebook
NYBA Instagram
Newly formed NYBA Twitter/X

Furthermore, as another avenue to help our cause we have coordinated our efforts with Anacortes Marine Trades Committee, Northwest Marine Trade Association, Recreational Boating Association of Washington, Marine Retailers Association of Americas and National Marine Manufacturers of Canada in a joint letter opposing this bill with backing information. It was a joint effort, and we feel that the coordinated efforts with all of the associations will push our message even further. The letter can be read here: Combined Letter to Legislature

VERY IMPORTANT: NYBA sent out a survey/poll to our membership that specifically addresses this Luxury Tax Bill. Please take this survey/poll, link here (must be logged in to respond) and answer as you wish. We are hoping to have the survey completed by the end of the week. This information is confidential and will be used to further our voice as an association. We are in communications with representatives and leaders that can make a difference, and this survey/poll will make us united in our fight.

As this bill comes to head here in the near future, we all need to keep moving forward with efforts to raise awareness. Refer back to our original email and call the people that can make a difference, the transportation committee members. Use your business database and your social media platforms to help raise awareness as time is of the essence!

Lastly, we have received some very heartfelt stories about how the 1991 Luxury Tax personally injured our members' businesses & livelihood. The stories that Paul and I have been hearing are absolutely heartbreaking. Our fellow board member, Amy Ripley Thornton, cited the negative impact on Banana Belt Boats when her father was running the business, and it was devastating. Another story that really hits home for our brokerage industry is from the former VenWest Yachts. The link to the letter is below for your kind attention. We want to give a heartfelt thank you to Randy and Maureen Cowley for proving the letter as an effort to raise awareness of how these taxes can negatively impacted other businesses. Please let this be motivation to us all to raise awareness to others of SB5801!

Randy Cowley Yacht Consultants - Testimonial.pdf

Please feel free to contact Paul, myself or any other NYBA Board Members with comments, suggestions or ideas. We are here for you.

Sincerely,

Paul Groesbeck
NYBA Board President
(425) 829-3551

Kevin Blake
NYBA Board Member - Chairman of Government Affairs
(360) 808-7120

Proposed Luxury Tax on Watercraft Sales Exceeding $500,000

Leslie Simmons — Mon, 31 Mar 2025 18:58:00 GMT

State Legislature Moving Fast on Adding "10% Luxury Tax" to Boat Sales Over $500,000

This past Thursday, the Washington State Senate introduced additional language, buried in an existing transportation bill (SB 5801), authorizing a 10 percent luxury vessel tax on new and used boat sales over $500,000, in addition to sales, use and watercraft excise tax.

For example, if a boat is sold for $600,000 the luxury vessel tax will apply to the $100,000 exceeding the $500,000 threshold. This bill is to tax what they deem as "the wealthy." In essence, however they are hurting the peripheral workers in the industry, such as detailers, mechanics, dock staff, boat yards, etc.

Our Northwest Yacht Brokers Association lobbyist Jim Hedrick has a detailed explanation of this bill below. This vessel luxury tax language was added to the bill at the last minute - minimizing our ability to fight the details. The Senate has already passed the bill (30 yays - 18 nays) and the bill is reverting back to the House.

***

CALL TO ACTION:
The House Transportation Committee will take this up on Monday, March 31 - Please call ASAP.

* Call these key Transportation Budget members:

Rep. Jake Fey (D-Tacoma), House Transportation Committee Chair: 360-786-7974
Rep. Julia Reed (D-Seattle), House Transportation Committee Vice Chair,
360-786-7814 (Julia is also chair the maritime caucus (House and Senate) and would be a key ally in budget negotiations.)
Rep. Adam Bernbaum (D-Olympic Peninsula) 360-786-7916
Rep. Andrew Barkis (R-Olympia), long-time ranking member, House Transportation 360-786-7824
Rep. Sam Low (R-Snohomish), assistant ranking member, House Transportation
360-786-7967

* Message: "This tax will dramatically effect working class people - boatbuilders, boatyard workers, boat detailers, mechanics, service facilities, boat brokers and the many unique small businesses that make up the vibrant Washington recreational boating community. While it may be 'aimed' at the wealthy, it will have a disproportionate affect on the working class recreational maritime community."

* Process: Call - Leave a Message - Repeat for all Key Transportation Members.

***

Your help is vital in this last minute attempt to defeat this short-sighted action that will financially hurt many workers in our industry that they are not considering. Thank you for taking the time to make your voice heard.

Sincerely,

Paul Groesbeck
NYBA Board President

Kevin Blake
NYBA Board Member - Chairman of Government Affairs

From NYBA Lobbyist, Jim Hedrick:

Thursday evening the Senate Transportation budget marked up their revenue bill, SB 5801, with the language below authorizing a luxury vessel tax, in addition to sales, use, and the watercraft excise tax upon new or previously owned recreational vessels with a selling price in excess of $500,000. (See Below)

SSB 5801 Section 217(2), page 21.
(2) In addition to taxes required under chapters 82.08, 82.12, and 82.49 RCW, there is levied and collected an additional 10 percent luxury vessel tax on the sale of a recreational vessel if:
(a) The selling price of the recreational vessel exceeds $500,000; or
(b) In the case of a lease requiring periodic payments, the fair market value of the recreational vessel exceeds $500,000 at the inception of the lease.
(c) The additional tax imposed in this subsection only applies to the portion of the selling price in excess of $500,000, or in the case of a lease requiring periodic payments, the fair market value of the recreational vessel in excess of $500,000 at the inception of the lease.

Link to SSB 5801:
https://lawfilesext.leg.wa.gov/biennium/2025-26/Pdf/Bills/Senate%20Bills/5801-S.pdf?q=20250328221446

Context:
The legislature is facing a $1 billion transportation budget shortfall and is seeking new revenue this session including a 6-cent a gallon (Senate) and 9-cent a gallon (House) gas tax increase that in future years would be indexed and automatically increase linked to inflation (CPI). Among several other tax increase proposal there is a luxury car tax that is a part of the original Senate Transportation revenue package (SB5801) at 10% on sales of motor vehicles in excess of $100,000. The luxury boat tax is a surprise but mirrors the luxury car tax with the 10% rate and sales price threshold. This legislature has made a point this session to single out high grossing companies with a proposed Payroll Tax (Senate) and a new Wealth Tax (House and Senate) on high-wage earners. The luxury tax on motor vehicles, yachts, and recreational air craft all fit into this political narrative.

Process
SSB 5801 will be put to a vote of the full Senate TODAY Saturday (3/29) along with the Senate Transportation budget bill, SB 5161. The House will take up their transportation budget bill on Monday (3/31) and put both the budget and revenue bills in dispute; this kicks off the conference committee and budget negotiations. Once there is agreement, if there’s an agreement, on budget and taxes, they will vote to advance the transportation revenue bills. The budget negotiations should take a week, probably 2 weeks but the time to make your position known is NOW. Due to the fact the luxury boat tax was added by a late amendment and after the public hearing process, NYBA will have NO OPPORTUNITY to testify and state your opposition and give lawmakers the rationale as to why the luxury tax will not work. The legislature is set to adjourn on April 27.

Politics
I think there is very little room to maneuver on this issue. Having said that, I would focus contacts on House legislators on the Transportation Committee. Below are targets for the budget negotiations AND a list of all the members on the committee.

Potential Messages:

Washington boating industry has no tax incentives for buyers and is limited by lack of moorage space and an already unfavorable tax climate for vessel sales, please don’t make it worse.

The negative impact luxury taxes does not fall on consumers who will delay purchasing a boat. The negative impact falls on boat brokers and other small businesses that will be hurt by the lack of boat sales. These small businesses provide people with great jobs and also invest in their communities.

Luxury tax on boats has failed in many other countries and states due to decreased sales, lost employment, and the artificial price cap it places on product to avoid the tax.

Transportation Budget Targets:

Rep. Jake Fey (D-Tacoma), House Transportation Committee Chair: 360-786-7974
Rep. Julia Reed (D-Seattle), House Transportation Committee Vice Chair,
360-786-7814 (Julia is also chair the maritime caucus (House and Senate) and would be a key ally in budget negotiations.)
Rep. Adam Bernbaum (D-Olympic Peninsula) 360-786-7916
Rep. Andrew Barkis (R-Olympia), long-time ranking member, House Transportation 360-786-7824
Rep. Sam Low (R-Snohomish), assistant ranking member, House Transportation
360-786-7967

Full list of Transportation Committee Members can be found here (click on the dropdown menu that says "Committee members and staff" for full contact list.

Washington State Primary Results Update

Leslie Simmons — Fri, 09 Aug 2024 17:00:00 GMT

You can review lobbyist Jim Hedrick's coverage of Washington State's primary here.

End of Legislative Session Updates

Leslie Simmons — Thu, 14 Mar 2024 21:42:57 GMT

The Washington State Legislative adjourned for the year on March 7. Here are a few updates from Jim Hedrick, regarding the two marine-related bills, 1919 and 1906:

HB 1919 – Modifying the process by which a private moorage facility may sell an abandoned vessel for failure to pay moorage fees.

Result: Passed Legislature

The Bill: Changes, from 90 days to 45 days, the amount of notice that a private moorage operator must provide to a vessel owner before a vessel may be sold for failure to pay moorage fees. Changes, from 60 days to 40 days, the timeline by which a lawsuit to challenge the validity of a private moorage facility's impoundment of a vessel must be commenced. 1919 passed both the House and Senate unanimously, Governor Inslee expected to sign into law next week.

HB 1906 – Changing the vessel length requirement in obtaining non-resident vessel permits, from max 200' to max 300'.

Result: Died on Third Reading (Floor) Calendar.

The Bill: Would have increased from 200 to 300 feet the allowable maximum length of certain non-resident vessels eligible for a non-resident vessel permit. Would have required a fee for a non-resident vessel permit for commercially-owned vessels between 201 and 300 feet of $100 per foot of vessel length, beginning May 1, 2025.

Analysis: 1906 was on the Senate floor calendar for a final floor vote and they did not get to it. There were also Republican "no" votes out of committee who always vote against fees, and some more liberal Democrats who are opposed to anything to do with “wealthy yacht owners.” Jim suggests that 1906 will likely re-appear in the next Legislative session, since there was not a robust opposition.

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Plus - Review Jim's final Legislative Update of the session, recapping popular bills, upcoming initiatives and more.

Important Marine Bill Updates - 1906 is Dead, 1919 Will be Passed into Law

Leslie Simmons — Wed, 06 Mar 2024 00:13:34 GMT

NYBA lobbyist Jim Hedrick has sent us the following updates regarding to maritime-specific bills that were moving their way through the Washington State Legislature.

HB 1919 allowing private moorage to more easily sell abandoned vessels has passed the Legislature – see below.

HB 1906 re: Changing the vessel length for non-resident permits from max 200' length to max 300' length has DIED IN COMMITTEE, it did not come to a vote in the Senate. This means that the current statute will remain in place, i.e. vessels larger than 200 feet will NOT be able to apply for non-resident cruising permits in the state of Washington.

HB 1919 – Modifying the process by which a private moorage facility may sell an abandoned vessel for failure to pay moorage fees. The Bill: Changes, from 90 days to 45 days, the amount of notice that a private moorage operator must provide to a vessel owner before a vessel may be sold for failure to pay moorage fees. Changes, from 60 days to 40 days, the timeline by which a lawsuit to challenge the validity of a private moorage facility's impoundment of a vessel must be commenced. Passed Legislature.

Hedrick Weekly Update - February 26 - March 1

Leslie Simmons — Wed, 06 Mar 2024 00:09:21 GMT

As the 2024 session draws to a close, both chambers spent Monday in fiscal committees in advance of the deadline for bills with financial impacts to be voted on in a fiscal committee in the opposite house. One of the most watched bills that did not advance was the rent cap legislation, HB 2114 (Alvarado, D-Seattle). The Senate Ways & Means committee ultimately did not take up the bill for a vote given it did not have the backing of enough Democrats to pass, notably lacking the support of Senators Mark Mullet (D-Issaquah) and Kevin Van De Wege (DPort Angeles). Neither of these moderate Senators will be returning to the Senate next session and thus, a new version of the bill in 2025 may enjoy an easier path if more progressive Democrats are elected in 2024. Both the House and Senate spent the majority of the rest of this week in caucus and on the floor scrambling to pass as many of their priority bills as possible before the clock ran out on Friday, March 1.

On Wednesday, the House passed SB 6009 by Senator Jasmine Trudeau, (D-Tacoma), banning the use of hog-tying by law enforcement. This issue has gained national attention after the death of Manuel Ellis, a 33-year-old African-American man from Tacoma who died in police custody after spending the final moments of his life hog-tied. While the Department of Justice has recommended eliminating the practice since 1995, the Attorney General’s Office’s use-offorce model policy advises against it, and the Criminal Justice Training Commission no longer trains officers to use this method of restraint; it is used in three jurisdictions in Washington. The bill passed 89-7 and was amended by the House so must return to the Senate next week.

The House passed SB 5427 (Sen. Javier Valdez D-Seattle) on Wednesday, requiring the Attorney General’s Office to oversee a hotline to assist people who have been targeted or affected by hate crimes and bias incidents. The hotline will accept reports of hate crimes and bias incidents and provide appropriate crisis intervention and victim-centered, culturally competent, and trauma-informed information. These services will be accessible to as many Washington state residents as possible, irrespective of the language they speak. Under this bill, the AGO would also be mandated to develop a standardized process to collect, analyze, and regularly report information related to these incidents to the Governor, Senate, and House of Representatives. The collected data would also be required to be made publicly available after redacting personally identifiable information for the protection and safety of the victims. Rep. Sharon Tomiko Santos (D-Seattle) spoke about the incident in her district where the Wing Luke Museum was damaged with anti-Asian vandalism. Republicans opposed the bill, suggesting they preferred use of social sanctions. The bill, unamended, passed 56-39.

On cut-off days, the 5:00pm bill in each chamber is the source of great speculation. Both the House and Senate chose highly controversial bills this time. The Senate took up a piece of legislation they had started work on the day prior, HB 1589 (Rep. Beth Doglio, D-Olympia), the bill that accelerates the transition from natural gas to electricity. After a fiery debate, the bill passed 27-22 with Senators Mullet (D-5) and Van De Wege (D-24) joining Republicans in opposition. Across the rotunda, the House took up SB 5241 (Randall, D-26), the “Keep Our Care 2 Act” that would regulate future healthcare mergers with the intent of preserving access to reproductive, gender-affirming, emergency, charity, and end-of-life care. Shortly before 5:00pm, the House announced SB 5241 would come up next, they went to caucus, and did not return to the floor. SB 5241 will not advance this session.

Another significant piece of legislation that did not advance on cut-off day was labor’s number one priority, HB 1893 (Rep. Beth Doglio, D-Olympia). HB 1893 would have provided unemployment benefits to striking workers. Supporters had said the bill would level the playing field for workers, while detractors claimed the policy would upend the balance between business and labor at the bargaining table. Only three states, New Jersey, New York, and Maine, have allowed striking workers to access jobless benefits.

In addition to the flurry of floor activity, joint committees met this week to address the three initiatives to the legislature majority Democrats have chosen to hear.

On Tuesday, a joint session of the House Finance and Senate Ways & Means Committees heard public testimony on Initiative 2111. This measure would prohibit the state, counties, cities, and other local jurisdictions from imposing or collecting income taxes, defined as having the same meaning as “gross income” in the Internal Revenue Code. Of the 6,674 people signed in not wishing to testify, the majority were signed in in support of the initiative. 213 people signed up to testify, but when called upon by the vice chair, were by and large not online and did not testify. Of those who did, progressive activists denounced the initiative, suggesting simultaneously that it is a solution in search of a problem and also that it is unhelpful in their hopes to change the tax code. Conservative activists suggested it would be unfair to have both a sales tax and an income tax. The bill was voted out of committee on Friday.

Wednesday morning, Initiative 2081 was heard in a joint session of the House Education and Senate Early Learning & K-12 Committees This measure would allow parents and guardians of public-school children to review instructional materials and inspect student records, including health and disciplinary records, upon request. It would require public schools to provide parents and guardians with certain notifications, including about medical services given and when students are taken off campus; access to calendars and certain policies; and written notice and opportunities to opt students out of comprehensive sexual-health education and answering certain surveys or assignments. While absentee testifiers plagued this hearing as they did the 2111 hearing, 6,647 people signed in not wishing to testify. Testimony for this hearing was somewhat better coordinated than the hearing the day prior, with most testifiers either signed in as “Other” or “Pro.” Supporters of the initiative spoke to years of legislative overreach and erosion of parental rights. Those testifying as “Other” suggested that much of what is included in the initiative is already part of state and federal law, but that additional clean-up language may be needed from the legislature in the future due to ambiguities in the writing of the initiative. The bill was voted out of committee on Friday.

Also on Wednesday, the Senate Law & Justice and House Community Safety, Justice & Reentry Committees heard public testimony on Initiative 2113. This measure would remove certain 3 restrictions on when peace officers may engage in vehicular pursuits. Such pursuits would be allowed when the officer has a reasonable suspicion a person has violated the law, pursuit is necessary to identify or apprehend the person, the person poses a threat to the safety of others, those safety risks are greater than those of the pursuit, and a supervisor authorizes the pursuit. 169 people signed in to testify and 5,484 people signed in not wishing to testify. Like the other initiatives, the vast majority of those signed in supported the initiative, signaling a major organizing effort from the Let’s Go Washington team. Brian Heywood, the funder of the six initiatives spoke in support, citing increases in fleeing suspects. Few others were able to speak within the one-hour time allowed for the hearing as legislators used most of the time asking questions of staff. The bill was voted out of committee on Friday.

Representative JT Wilcox (R-Roy) announced this week that he will not seek re-election after having served 14 years in the legislature. Wilcox served as Minority Leader of the House Republican Caucus from 2018-2023, when he stepped down and was replaced by Rep. Drew Stokesbary (R-Auburn). In his announcement, Wilcox decried “single party thinking,” but added “As long as we have Democrats like Larry Springer, Frank Chopp and Mike Chapman, we will have people who can be partners in the coming re-emergence of a government that works.”

From here, if a bill has been amended by the second house, the first house must decide whether it will concur in the amendments or not. If the first house concurs in the amendments, the bill has passed the Legislature. If the first house disagrees with the second house, it can ask the second house to recede from the amendments. If the second house recedes, the bill has passed the Legislature. If the two houses cannot resolve their differences, one of them can ask for a conference committee. In this situation, members from each house meet behind closed doors to discuss the differences. If they agree on what is to be done, the conference committee makes a report. Both houses must adopt the conference committee report for the bill to pass the Legislature. If one house does not adopt the conference committee report (whether by vote or inaction), the bill has not passed.

The last day of the 2024 regular Legislative Session is Thursday, March 7.

Update on SHB 1906: Increasing Length of Vessels for Non Resident Permit

Leslie Simmons — Wed, 28 Feb 2024 18:58:35 GMT

SHB was amended in the Senate Transportation Committee. The changes to the bill are as follows:

The fee for the non-resident vessel permit has been changed for vessels ranging from 201' - 300'. The fee was changed from $42/foot to $100/foot.
The expiration date for the bill has been changed to December 31, 2026 (in lieu of the original date of 2029).

Lobbyist Jim Hedrick also noted that also another amendment being discussed surrounding potentially adding a requirement that the permit being contingent on education and compliance requirements in accordance with the "Quiet Sound" program and the Department of Fish and Wildlife's whale distance guidelines. This amendment has NOT yet been adopted.

Marine-Industry Related Bills - Update

Leslie Simmons — Mon, 19 Feb 2024 17:58:18 GMT

A few updates from Jim Hedrick, regarding two maritime-industry related Bills in the State Legislature:

HB 1906 - Changing the vessel length requirement in obtaining nonresident vessel permits. Passed House 97-0. Scheduled for hearing in the Senate Transportation Committee Tuesday (Feb 20). Worth Avenue Yachts and Northwest Marine Trade Association support.
The Bill: Increases the allowable maximum length of nonresident vessels that are commercially owned or intended for chartering purposes, for the purposes of obtaining a nonresident vessel permit from the Department of Licensing, from 200 to 300 feet; requires a fee for a nonresident vessel permit for commercially-owned vessels between 201 and 300 feet of $42 per foot of vessel length, beginning May 1, 2025.

HB 1919 – Modifying the process by which a private moorage facility may sell an abandoned vessel for failure to pay moorage fees. Passed the House 97-0. Scheduled for hearing and committee vote in the Senate Committee on Agriculture, Water, Natural Resources & Parks on Monday (Feb 19). Northwest Marine Trade Association; Elliott Bay Marina support.
The Bill: Changes, from 90 days to 45 days, the amount of notice that a private moorage operator must provide to a vessel owner before a vessel may be sold for failure to pay moorage fees. Changes, from 60 days to 40 days, the timeline by which a lawsuit to challenge the validity of a private moorage facility's impoundment of a vessel must be commenced.

Hedrick Weekly Update: February 5-9

Leslie Simmons — Fri, 16 Feb 2024 23:12:52 GMT

From NYBA Lobbyist Jim Hedrick:

"About half-way:
Entering its fifth week, the legislature is working towards the procedural mid-point of the session, the house of origin fiscal cutoff. Surviving bills have advanced to the Rules committees, joining bills that have no fiscal impact to the state and did not pass through a fiscal committee. The Rules committees are made up of members of both parties who are allowed to “pull” or select a few bills at each meeting to advance towards the floor. Less controversial bills may be placed on the suspension calendar in the House and the consent calendar in the Senate and heard early during this period before rules limiting debate are applied. Bills that will require debate are placed on the regular calendar. On second reading, the chambers debate bills and offer amendments. If a bill has been amended in committee or on the floor in the house of origin, it is engrossed, meaning the amendments are incorporated into the body of the bill. On third reading, the chambers vote to pass a bill. This repeating process of Rules, caucus, and floor time will continue until the February 13 deadline for bills to pass their chamber of origin.

Graffti:

Minority party bills usually die quiet deaths at the hands of the majority. But on Tuesday, the House passed HB 1800 (Barkis, R-2), an anti-graffiti bill, unanimously. Members across the aisle reported their districts are also struggling with graffiti, which has been in the news of late. Last Friday, the U.S. Court of Appeals for the Ninth Circuit reversed a court ruling that stopped the city of Seattle’s ability to enforce its graffiti ordinance. The bill provides that a court may order a person convicted of Malicious Mischief in the third degree or Criminal Street Gang Tagging and Graffiti to complete at least 24 hours of community restitution, pay restitution, or clean up the damage with prior permission of the legal owner or the agency managing the property. The bill will now advance to the Senate.

Hog-Tying:

Four years ago, Manuel Ellis, a 33-year-old Black man from Tacoma, died in police custody after spending the final moments of his life hog-tied. On Tuesday, the Senate unanimously passed SB 6009 (Trudeau, D-27), which prohibits the practice of hog-tying by law enforcement. This bill aligns Washington with other states that have taken decisive steps to prevent deaths related to the practice. The Department of Justice has recommended eliminating the practice since 1995, and the Attorney General’s Office’s use-of-force model policy advises against it. The bill will now start its process in the House.

Lived Experience:

On Tuesday, the House passed the “Nothing About Us Without Us” Act, HB 1541 (Farivar, D-46). Under the bill, task forces, work groups, and advisory committees tackling issues affecting underrepresented populations must include at least three individuals with direct lived experience on that issue. For those serving on task forces, work groups, and advisory committees, educational materials and toolkits will be created to support meaningful engagement of all participants. In addition, regular reports will assess the effectiveness of these inclusion efforts. The bill now goes to the Senate.

I Can't Hear You

On Wednesday, the Senate passed SB 5778 (Keiser, D-33), a priority for the labor community. The bill prohibits an employer from disciplining or discharging, threatening to discipline or discharge, penalizing, or taking any adverse employment action against an employee for refusal to attend an employer-sponsored meeting, listen to speech, or view communications, when the primary purpose of which is to communicate the employer's opinion concerning religious or political matters. Under the bill, employers would also not be able to require workers to attend meetings where they are told that attempts to unionize will lead to layoffs or loss of benefits. In her floor testimony, Sen. Keiser added that this is not a gag on the employer, but the employee does not have to listen. Oregon, Connecticut, Minnesota, Maine, and New York have passed similar laws. The bill passed on near-partisan lines and now moves to the House.

The Worst Bill of the Session?

The Senate was expected to bring SB 5770 (Pedersen, D-46) to a floor vote Wednesday but deferred further action. 5770 would change the state and local property tax growth limit from the current 1 percent to 1 percent plus inflation (CPI) and any banked inflation balance up to 3 percent. Senate Republicans held a media availability on Thursday morning panning the tax increase bill and touting it as “the worst bill of the 2024 legislative session.” Among rumors of Senate Democrats becoming disenchanted with taking the tax vote, by Friday morning Sen. Jamie Pedersen announced, “It’s not going to advance this year.” Pedersen continued, “Supporters need to work on better explaining the needs of cities and counties in providing services like public safety, and helping the public better understand the mechanics of property taxes.” The death of 5770 is a major setback for cities who made passage of 5770 a top priority this session and is a major victory for the minority Senate Republicans.

Hospital Mergers

Senate Democrats on Thursday pushed through a new system for approving mergers of hospitals into larger chains. SB 5241 (Randall, D-26), stems from the 2013 acquisition of Bremerton’s Harrison Medical Center by CHI Franciscan, which is now Virginia Mason Franciscan Health, in one of a long series of such acquisitions by Catholic hospital chains. The hospital is now known as St. Michael Medical Center. The bill is controversial and adamantly opposed by the powerful Washington State Hospital Association (WSHA). Politically progressive lawmakers have a healthy distrust of such mergers because of concerns that Catholic healthcare organizations will refuse to provide abortion, gender-affirming care, and end-of-life services. Other lawmakers voice concerns over health care consolidation about the effects upon consumer protection. The hospital industry will argue mergers have saved community hospitals from having to shut down service lines, financial failure and outright closure, especially in rural areas. SB 5241 goes to the House where it is expected to have a tough fight to advance. Both House leadership and health care committee members have major hospital systems in their district.

Hatred Hotline

Data shows reported hate crimes in Washington have reached the highest level in more than two decades. SB 5427 (Valdez, D-46) passed the Senate on Wednesday, which if passed by the House will establish a hotline administered by the Attorney General’s Office (AGO) for reporting these incidents. The hotline would accept reports of hate crimes and bias incidents and provide appropriate crisis intervention and information that is victim-centered, culturally competent, and trauma-informed. These services would be accessible to as many Washington state residents as possible, regardless of the language they speak. The AGO would also be required to develop a standardized process to collect, analyze and regularly report information related to these incidents to the governor, Senate, and House of Representatives. The collected data would need to be made publicly available after redacting personally identifiable information for the protection and safety of the victims.

Sex-Trafficking

Wednesday was a significant day for human trafficking bills. In a show of bipartisanship, SB 6006 (Dhingra, D-45) and SB 6056 (Torres, D-15) both passed unanimously and will move to the House. SB 6006 expands the definition of abuse or neglect of a child that must be reported by mandatory reporters to include trafficking, modifies agency procedures related to assessing, providing services, and reporting abuse or neglect, and expands sexual assault protection orders to include commercial sexual exploitation. SB 6056 mandates training for hotel employees to identify victims of human trafficking. In her floor remarks, Sen. Torres said that Washington state is ranked poorly in regard to identifying victims of human trafficking and these bills will help alleviate that. Sen. Keiser noted that this is particularly important with large sporting events coming to Washington state next year.

Police-Recruitment Tool

Another bill that passed with unanimous support was SB 6157 (Lovick, D-44). This allows Deferred Action for Childhood Arrival (DACA) status recipients to apply for civil service positions as city firefighters, city police, fish and wildlife officers, and peace and corrections officers. Sen. Lovick, a career law enforcement officer, noted that he believes this would bring more diversity to police departments. The bill now moves to the House for consideration.

Fine Line Confession

Legislation to make members of the clergy mandatory reporters of child abuse and neglect passed the Senate on a 44-5 vote on Wednesday. The bill, SB 6298 (Frame, D-36) will now go to the House for consideration. Senator Frame is a survivor of childhood sexual abuse and the abuse ended only after she told a teacher who was a mandatory reporter. In 2023, Frame introduced SB 5280 on the same issue, which failed to pass because of disagreement over whether to include an exemption for clergy who learned about abuse during confession. The version of the legislation that passed the House, which closed the exemption for confession, was opposed by a majority of the Senate, and the two chambers were unable to agree on a final version of the bill. The updated legislation strikes a compromise position. It includes an exemption for confession for the duty to report, but it does enact a duty for clergy to warn law enforcement or the Department of Children, Youth, and Families when “they have reasonable cause to believe that a child is at imminent risk of being abused or neglected, even if that belief is informed by information obtained in part as a result of a penitential communication.”

The last day of the Regular Session of the Legislature is March 7, 2024.

Hedrick Weekly Review - January 15-19, 2024

Leslie Simmons — Thu, 25 Jan 2024 00:39:34 GMT

The Washington State Legislature is in session for 2024! Check out the most recent update from NYBA lobbyist Jim Hedrick:

Hedrick Weekly January 15-19, 2024

While Martin Luther King Jr. Day is a holiday for many, it is one of the busiest days in the legislative calendar, with constituents arriving by busload to meet with their delegations. Bills are moving quickly in committees already and there are plenty to track. This year, over 1,000 new bills have been introduced for this “short” session.

Capital Gains Tax

Early Tuesday morning, Democrat majority budget writers received good news that the U.S. Supreme Court will not review Quinn v. Washington, the lawsuit challenging Washington’s 7% tax on capital gains above $250,000. The tax brought in nearly $900 million in revenue in the first year, which budget writers are counting on to fund education. This is not the end of the story as the issue may still appear as an initiative on the November ballot, pending signature verification and action by the Legislature. Later that morning, Secretary of State Steve Hobbs notified the Legislature that signature verification of Initiative 2117 (concerning carbon tax credit trading) has been completed and has been certified. The legislature must now approve that initiative or send it to voters with or without an alternative measure. The signatures on the other pending initiatives, including capital gains, are currently being verified by the Secretary of State.

Guns

Tuesday was the majority’s gun violence prevention day in the House Civil Rights and Judiciary committee, which is consistently one of the largest draws for testifiers on campus and virtually. Over two thousand people signed in not wishing to testify on most of the bills. The legislation proposed covered a great deal of territory, including HB 1902 (Berry, D-36), establishing a permit requirement to purchase a firearm; HB 1903 (Berry, D-36), requiring a report of the theft or loss of a firearm within 24 hours; HB 2118 (Walen, D-48), requiring firearm dealers to take precautions such as mandatory anti-theft features; HB 2021 (Senn, D-41), allowing the State Patrol to destroy confiscated crime guns; and HB 2054 (Farivar, D-46), prohibiting firearms dealers from delivering more than one firearm to a purchaser or transferee within any 30-day period. On Monday, the Senate also heard SB 5444 (Valdez, D-46) which further restricts firearms in sensitive places such as libraries, parks, and transit stations.

Gift Cards

Tuesday was also gift card day, with four bills being heard in both chambers. While gift cards do not expire in Washington State, if a person does not use a gift card or funds on a mobile app from a Washington-based retailer after three years, current law allows that money to return to the company as profit. Rep. Emily Alvarado (D-34) and Senator Yasmin Trudeau (D-27) are proposing a pair of policies (HB 2094, HB 2095, SB 5987, SB 5988) that would send the unused balances to the Department of Revenue’s unclaimed property website, where gift card users 2 could locate those balances. Any unreturned money held by the state could eventually go toward state spending on education, healthcare, or housing. Additionally, the legislation package would allow consumers to cash out a gift card up to $50, would require large corporations to notify consumers about unspent funds, and would let consumers reload gift cards and mobile apps at any amount. This is another highly contentious issue this session, with the business community coming out in force to oppose.

Climate Change

Initiative 2117 (I-2117), an initiative to the legislature, has now qualified for the November 2024 ballot. If passed by the voters it would repeal the state’s cap and trade carbon market program. The cap and trade program, as part of the state’s Climate Commitment Act (CCA) is the crowning policy achievement of Governor Inslee. The legislature is not expected to give I-2117 a public hearing much less pass the measure, thus the voters will determine its fate next November.

Complicating matters is HB 2201 (Rep. Doglio, D-22) and SB 6058 (Sen. Nguyen, D-34), which would facilitate the “linkage” of Washington’s carbon market with the California-Quebec carbon markets. Both bills have received public committee hearings. Both bills are expected to advance and scheduled for a committee votes next week. Privately, there are many discussions among Democrat legislative leadership and state constitutional attorneys whether the “linkage” bill, if passed, would need to be sent to the voters as an alternative to I-2117 under the state Constitution. There is very little legal guidance or body of case law from which to draw upon as to what the Washington State Constitution considers an alternative to an initiative. Legislators are moving cautiously as they contemplate whether to pass the linkage bill, a priority for Governor Inslee in his last year of office, or if constitutional interpretations will make legislators reluctant to pass the linkage bill. Stay tuned.

Gas Prices

Modeled on an approach enacted in California, SB 6052 (Sen. Nguyen, D-34) would create a new commission to oversee oil industry pricing and profits and establish a new commission to investigate allegations of market manipulation and price-gouging. SB 6052 was heard before the Senate Committee on Environment, Energy & Technology on Wednesday. It is not scheduled for a committee vote at this time.

Decarbonization

Wednesday, HB 1589 by Rep. Doglio (D-22), a decarbonization bill and a priority for the Inslee Administration had a major setback this week. A necessary procedural vote in exchange for an agreed to bipartisan amendment came unraveled after it was revealed (leaked email) the prime sponsor was already secretly negotiating with Senate members to return the bill to its original form. The amendment removes the prohibition on natural gas service to commercial and 3 residential locations by a large electric and natural gas utility company. House Democrats planned to bring 1589 to a floor vote on Thursday but that didn’t happen either. Regardless, even if Democrats now move HB 1589 “as is” off the House floor it has no pathway to passage in the Senate.

Gas Powered Equipment

In the guise of neighborhood noise abatement, the legislature is considering HB 2051 by Rep. Amy Walen (D-48) that would adopt the California small off-road engine and equipment (SORE) standards. Walen, a self-proclaimed moderate business-Democrat is sponsoring the bill. The conventional wisdom is that Walen is sponsoring the bill to stave off a political challenge from the left and give her some “enviro cred”. The bill is scheduled for a in the House Environment & Energy Committee this week and is expected to be amended to exempt agricultural equipment. HB 2051 also establishes a temporary sales and use tax exemption for zero emission outdoor power equipment.

Medical Debt

On Wednesday, the House Civil Rights and Judiciary committee heard HB 2119 (Riccelli, D-3) which would prohibit the garnishment of wages for medical debt. In his remarks, the sponsor noted that medical debt is increasing and is worse in lower income communities and communities of color and that the University of Washington, PeaceHealth, Providence and a few other hospitals have already moved away from garnishment. But the bill received harsh criticism from the Washington State Medical Association (WSMA) and the Washington State Hospital Association (WSHA), who cite already available charity care.

Education

If legislators have their way this session, there will be several additions to requirements for public education in the future. On Wednesday, the Senate Early Learning & K-12 Education committee heard four bills addressing additional topics of education. SB 5813 (Dozier, R-16) would require instruction on agricultural literacy; SB 5819 (Valdez, D-46) makes financial education a graduation prerequisite; SB 5849 (Wellman, D-41) creates a computer science competence graduation requirement; and SB 5851 (Braun, R-20) requires genocide and Holocaust education.

Cutoff Dates

January 31 - Policy Committee Cutoff

February 5 - Fiscal Committee Cutoff

February 13 - House of Origin Cutoff

February 21 - Opposite House Policy Committee Cutoff

February 26 - Opposite House Fiscal Committee Cutoff

March 1 - Floor Cutoff

March 7 - Last day of Regular Session

Out of Session Updates: Quarterly Revenue Forecast and Ballot Initiatives

Leslie Simmons — Tue, 21 Nov 2023 23:55:37 GMT

From NYBA Lobbyist Jim Hedrick:

November 2023 State Quarterly Economic and Revenue Forecast

Yesterday (11/20) the state quarterly revenue forecast was released. Forecasted state revenue are increased for the current 2023-25 biennium by $191 million and increased by $579 million for the future 2025-27 biennium. Total state revenue is expected to grow 3.3% between the 2021-23 and 2023-2025 biennia and 6.9% between the 2023-25 and 2025-2027 biennia.

Major economic factors driving the revenue forecast are Washington’s personal income is stronger than in the September forecast, total Washington employment is stronger than in September, and inflation is slightly lower. After rising to 3.7% in August and September, inflation dropped to 3.2% in October. Even though inflation continues to trend downward it remains above desired levels. The Federal Reserve is expected to raise the federal funds interest rate to a range of 5.5% to 5.75% in December but decrease rates more slowly than in September forecast.

Washington’s low unemployment rates continue to be a positive economic factor as Washington employment has increased by 5,700 jobs since September and the Washington unemployment rate remains low at 3.8%.

Downsides in the Washington economy are interest rates and the tightening of credit that threaten the commercial real estate market, business investment, and consumer demand.

The next state quarterly revenue forecast will be in mid-February and serve as the baseline for supplemental budget proposals from the House and Senate. The legislature will have until March 8th to pass an agreed to supplemental (2^nd year of the biennium) budget.

Potential Ballot Initiatives to the Legislature

Washington State has not had an initiative on the ballot since 2018, largely due to the COVID making it difficult for signature gathering. Let’s Go Washington, a new conservative political committee funded by hedge fund manager Brian Heywood, is in the process of qualifying six initiatives to the Legislature. The requirement to qualify an initiative to the Legislature is 324,516 valid signatures by December 29, 2023. If certified by the Secretary of State’s Office the initiative(s) would move to the Legislature for consideration during the 2024 Legislative Session. Upon receipt of a qualifying initiative, the 2024 Legislature will have one of three options:

Adopt the initiative as proposed, allowing it to become law without a vote of the people;
Not act on the initiative, allowing a vote of the people in the 2024 General Election; or
Propose an alternative ballot measure dealing with the same subject, sending it and the original for a vote of the people in the 2024 General Election.

Representative and new Washington State Republican Party Chairman Jim Walsh (R-Aberdeen-19LD) is the prime sponsor on all the initiatives. The subject and description of each initiative is as follows:

Initiative No. 2113 concerns vehicular pursuits by peace officers. This measure would remove certain restrictions on when peace officers may engage in vehicular pursuits. Such pursuits would be allowed when the officer has a reasonable suspicion a person has violated the law, pursuit is necessary to identify or apprehend the person, the person poses a threat to the safety of others, those safety risks are greater than those of the pursuit, and a supervisor authorizes the pursuit.

Initiative No. 2117 concerns carbon tax credit trading. This measure would prohibit state agencies from imposing any type of carbon tax credit trading, including “cap and trade” or “cap and tax” programs, regardless of whether the resulting increased costs are imposed on fuel recipients or fuel suppliers. It would repeal sections of the 2021 Washington Climate Commitment Act as amended, including repealing the creation and modification of a “cap and invest” program to reduce greenhouse gas emissions by specific entities.

Initiative No. 2124 concerns state long term care insurance. This measure would amend state law establishing a state long term care insurance program to provide that employees and self-employed people must elect to keep coverage under RCW 50B.04, allow employees to opt-out of coverage under RCW 50B.04 at any time, and repeal a current law governing exemptions for employees who had purchased long term care insurance before November 1, 2021.

Initiative No. 2109 concerns taxes. This measure would repeal an excise tax imposed on the sale or exchange of certain long-term capital assets by individuals who have annual capital gains of over $250,000.

Initiative No. 2111 concerns taxes. This measure would prohibit the state, counties, cities, and other local jurisdictions from imposing or collecting income taxes, defined as having the same meaning as “gross income” in the Internal Revenue Code.

Initiative No. 2081 concerns parental rights relating to their children’s public school education. This measure would allow parents and guardians of public-school children to review instructional materials and inspect student records, including health and disciplinary records, upon request. It would require public schools to provide parents and guardians with certain notifications, including about medical services given and when students are taken off campus; access to calendars and certain policies; and written notice and opportunities to opt students out of comprehensive sexual-health education and answering certain surveys or assignments.

Out of Session Updates: Key State Races for 2024

Leslie Simmons — Mon, 23 Oct 2023 19:37:02 GMT

NYBA Lobbyist Bruce Hedrick offers the following update on key 2024 State Races:

More than a year out from the 2024 General Election, candidates in the three highest profile statewide races, Governor, Attorney General, and Commissioner of Public Lands, are aggressively fundraising and gathering endorsements. By way of update I submit the following:

In the race for GOVERNOR

Attorney General Bob Ferguson (D), with the slogan “fighting for the rights of everyone” continues to dominate the race, gaining the most money, attention, and endorsements from labor and progressive causes. In one month, Ferguson raised close to the average cash on hand of main competitors.

Raised 9/1 - 9/30 - $425,521.95

Spent 9/1 - 9/30 - $126,716.39

Cash on Hand - $3,493,106.09

State Senator Mark Mullet (D-5), a moderate favored by industry and generally eschewed by the powerful labor community, promises on his website “an affordable and safe Washington.” Mullet is endorsed by moderate legislators including Senators Cleveland, Lovick, and Van De Wege, as well WACOPs, and Public School Employees of Washington. Mullet is up for re-election in 2024 and will not be returning to the Senate (i.e. up or out) if he loses his bid for governor.

Raised 9/1 - 9/30 - $109,153.10

Spent 9/1 - 9/30 - $122,501.75

Cash on Hand - $517,414.63

Former U.S. Congressman Dave Reichert (R) seems to still be running a quiet campaign, promoting “together we’ll change what’s wrong, fix what’s broken, and do what’s right.” His website does not show any endorsements.

Raised 9/1 - 9/30 - $164,392.50

Spent 9/1 - 9/30 - $79,376.50

Cash on hand - $393,355.35

Current State Commissioner of Public Lands Hilary Franz (D) pledges “stronger communities, a thriving economy, and a better future for everyone.” Franz, known for her work in wildfire management, is endorsed by many firefighter unions.

Raised 9/1 - 9/30 - $130,876.61

Spent 9/1 - 9/30 - $103,888.65

Cash on hand - $390,805.69

Race for ATTORNEY GENERAL

Former U.S. Attorney Nick Brown (D) continues his fundraising lead and is endorsed by Governor Jay Inslee, former Governor and AG Christine Gregoire, and Speaker Jinkins.

Raised 9/1 - 9/30 - $77,141.86

Spent 9/1 - 9/30 - $29,133.16

Cash on hand - $304,360.59

State Senator Manka Dhingra (D-45) has gained the support of most of her Senate colleagues who are Democrats. Dhingra is not up for Senate re-election until 2026 and will remain in the Senate if she loses her bid for Attorney General.

Raised 9/1 - 9/30 - $41,695.58

Spent 9/1 - 9/30 - $28,682.59

Cash on hand - $163,620.79

Race for COMMISSIONER OF PUBLIC LANDS

State Senator Kevin Van De Wege (D-24), a moderate timber industry favorite, firefighter, and chair Senate Agriculture, Water, Natural Resources & Parks Committee continues to campaign with an emphasis on wildfire management. Van De Wege is up for re-election in 2024 and will not return to the Senate if he loses his bid (up or out) for Commissioner. His website does not list endorsements.

Raised 9/1 - 9/30 - $20,177.64

Spent 9/1 - 9/30 - $975.07

Cash on hand - $122,915.24

Relatively new to the race, State Senator Rebecca Saldaña (D-37) emphasizes  “stewarding public land by putting people first” on her website. She is endorsed by several of her more progressive Senate Democrat colleagues. Saldaña is not up for re-election until 2026 and will return to the Senate if she loses her bid.

Raised 9/1 - 9/30 - $52,880.50

Spent 9/1 - 9/30 - $7,817.53

Cash on hand - $45,062.97

Former State Senator Mona Das (D), who since retiring from the Senate has led fundraising classes, is running a climate change-focused campaign. Das is endorsed by several of her old Senate colleagues including fellow candidates for statewide office, Senators Dhingra and Kuderer.

Raised 9/1 - 9/30 - $5,707.83

Spent 9/1 - 9/30 - $554.44

Cash on hand - $48,668.22

King County Councilmember (Chair) Dave Upthegrove (D) suggests on his website that he is “the environmental and social justice leader Washington needs now.” Upthegrove is not up for re-election until 2025 and will remain on the King County Council if he loses his bid for lands commissioner. If elected, Upthegrove would be the first openly LGBTQ person elected to statewide office in Washington.

Raised 9/1 - 9/30 - $28,665.03

Spent 9/1 - 9/30 - $1,766.34

Cash on hand - $31,698.69

DNR executive team member Patrick Depoe (D), endorsed by outgoing Commissioner Franz, is a Makah tribal member. If elected, Depoe would be the first Native American elected to statewide office in Washington, the Pacific Northwest and one of the first in American history. He is accumulating early endorsements from Washington’s tribal nations.

Raised 9/1 - 9/30 - $28,920

Spent 9/1 - 9/30 - $913.28

Cash on hand - $28,006.72

Former U.S. Congresswoman Jaime Herrera Beutler (R) joined the crowded race on October 10 and does not yet have fundraising numbers to report for September. Herrera Beutler lost her 2022 re-election primary to Republican Joe Kent after being one of 10 Republicans to vote to impeach President Trump.

Raised 9/1 - 9/30 N/A

Spent 9/1 - 9/30 N/A

Cash on hand - N/A

Out of Session Updates: State Quarterly Forecast

Leslie Simmons — Tue, 26 Sep 2023 21:24:23 GMT

From lobbyist Jim Hedrick:

"The state quarterly revenue forecast was released today (September 26, 2023). State general fund revenue has been increased for the current 2023-25 biennium by $663 million and increased for the 2025-27 biennium by $437 million. Before the books close on the 2021-23 biennium, state general fund revenue is increased by $265 million.

Growth in Washington State revenue collections has slowed as inflation continues to trend down but remains a barrier to stronger consumer spending. The real estate market is still strong but has flattened dramatically. The seasonally adjusted taxable real estate sales for August 2023 are 31% below from August 2022.

Positives for the state economy are the Washington unemployment rate for August remains at a historic all-time low of 3.6%. The Federal Reserve is expected to raise the federal funds interest rate to a range of 5.5% to 5.7% in November but decreases in interest rates are expected to start in the 2^ndquarter of 2024. There is no consideration in this forecast given to the effects of a looming federal government shutdown that may occur starting October 1.

The next state quarterly revenue forecast is scheduled for November 20 which will inform spending levels in the Governor’s supplemental budget that will be released on or about December 20."

Out of Session Updates

Leslie Simmons — Fri, 28 Jul 2023 22:07:50 GMT

Here are the latest updates from lobbyist Jim Hedrick. While the legislative session is out for the year, Jim continues to share updates on political storylines and key races for the State of Washington:

Developments on Washington Cares Fund

As of July 1, and with some exemptions, Washington workers who do not have a private long-term care policy have begun contributing 58 cents for every $100 they earn to the Washington Cares Fund. A lifetime payout of $36,500 per person will be available starting in 2026, to be spent on long-term care costs, including compensation for homecare workers. A group of Republican lawmakers led by Senate Minority Leader Sen. John Braun (R - 20 Leg. Dist. - Centralia) are working on a policy proposal to allow workers to permanently opt out of participation in Washington Cares regardless of proof of other long-term coverage. A refund would also be available for the taxes paid into the program. “We Care for Washington Cares”, a new coalition comprised of SEIU 775, AARP, Physicians for Social Responsibility, Washington Budget and Policy Center and others, is taking a leading role in organizing against Republican attempts to alter the program.

Commissioner of Public Lands Race

Moderate Democrat Senator Kevin Van De Wege (D-24 Leg. Dist. – Port Angeles) announced a bid for Public Lands Commissioner . The office of Public Lands Commissioner will be open in 2024 as current incumbent Hilary Franz who is running for governor. Van De Wege, first elected to represent the Olympic Peninsula in 2016, is a career firefighter and the chair of the Senate Agriculture, Water, Natural Resources & Parks Committee. Rep. Mike Chapman (D-24) has announced he will run for Van De Wege’s open senate seat. Both Van De Wege and Chapman are regard as more moderate than most of their Democrat colleagues.

Former Senator and progressive Democrat Mona Das announced she will run for Commissioner of Public Lands. Das served one term as Senator in the 47th before choosing not to run for reelection in 2022. Since leaving office, Das has promoted her movie “Bad Ass Women Doing Kick Ass Shit,” a film that centers on Das and promoting BIPOC women in office.

Shift in Governor’s Race

Former U.S. congressman Dave Reichert is running for Governor and is the presumptive Republican frontrunner. Reichert served seven terms in Congress, representing Washington’s 8th Congressional District which includes King County suburbs as well as Kittitas and Chelan Counties. He has worked as a lobbyist since leaving Congress. Before running for Congress, Reichert served as King County Sheriff for eight years. Though a Republican has not been governor of Washington since 1985, Reichert’s announcement coupled with fellow Republican Dr. Raul Garcia abandoning his campaign for governor reduces the chances of moderate Democrat state Senator Mark Mullet, who has already attracted business support. Garcia will instead run against incumbent Democrat U.S. Senator Maria Cantwell.

Inslee’s Legal Counsel Enters Race for Attorney General

Former U.S. Attorney Nick Brown announced he will join fellow Democrat state Senator Manka Dhingra (Bellevue) in the race for Attorney General. A Harvard Law graduate, Brown served as a JAG officer in the Army before working as a prosecutor, as an assistant U.S. Attorney, as general counsel to Governor Jay Inslee, and as a partner at a prestigious Seattle firm, Pacifica.

5^th Legislative District Senate Race

Representative Bill Ramos (D-5 Leg Dist - Issaquah) has announced his intention to run for the open seat vacated by Senator Mark Mullet (D-5), who is running for governor. Ramos is less moderate than Mullet and could allow the Senate Democratic Caucus to accomplish more of a progressive agenda if elected.

Government Affairs Commitee Update - Final Bill Status

Leslie Simmons — Fri, 19 May 2023 22:04:05 GMT

Jim Hedrick has provided a summary of maritime-related bills and their status at the end of the regular legislative session. To review the list, click here.

One bill that has been of particular interest to NYBA and its members is changes to the Southern Resident Killer Whale protection zone. The bill was signed into law by Governor Inslee, increasing the protection zone, but two provisions were vetoed. From Jim Hedrick,

"Please be advised, Governor Inslee vetoed 2 sections of SB 5371, protecting southern resident orcas from vessels. The governor struck section 3 concerning educational outreach to vessel operators and section 4 concerning the development of a state plan to implement vessel distance regs. The governor signed the rest of the bill into law including the new distance requirements. A link to the partial veto message is found here: https://crmpublicwebservice.ofm.wa.gov/bears/attachment/vetomessage/187

An excerpt from the partial veto message with the governor’s rationale for striking the sections are below:

Section 3 of the bill requires a mailing to every registered vessel owner in the state regarding the orca protection vessel setbacks, speed limits, and whale warning flags. This mailing would entail a significant cost to the identified agencies, but funding was not provided for this work in the final budget. For this reason, I am vetoing Section 3. However, the updated vessel distance laws do not come in effect until 2025, so it is my hope that the workgroup tasked with developing outreach and education strategies under Section 6 of the bill will be able to provide recommendations and cost estimates to be considered in the 2024 supplemental budget.

Section 4 of the bill requires the Department of Fish and Wildlife to develop a transboundary and statewide plan to implement vessel distance regulations. The department is a coordinating partner in the Be Whale Wise partnership, which coordinates orca recovery efforts, including a transboundary plan for vessel guidelines across the state, federal, and international jurisdictions. Updating the transboundary plan is already prescribed in RCW 77.65.620, and the existing Southern Resident orca conservation and management framework also includes biennial adaptive management reporting requirements. The plan required in Section 4 would largely duplicate this ongoing effort and would not likely produce meaningfully different results. In addition, no funding was provided for the requirements in Section 4. For these reasons, I am vetoing Section 4. However, I am directing the department to coordinate with the Department of Fisheries and Oceans and with Transport Canada, who have jurisdiction in Canadian waters and manage vessel restrictions in Canada, in support of the updated Southern Resident orca recovery efforts."

Hedrick Weekly: Special Session Edition - May 17 2023

Leslie Simmons — Fri, 19 May 2023 21:47:59 GMT

From lobbyist Jim Hedrick, on the end of the regular Legislative Session, and the One Day Special Session:

"Shortly after the conclusion of the 2023 Regular Legislative Session, Governor Jay Inslee called a special session to begin May 16, focusing on passing a new drug possession law. The so-called “Blake fix” was voted down on the House floor and the legislature adjourned their regular legislative session back on April 23rd. The issue dates back to 2021 when the Washington State Supreme Court overturned the state’s felony drug possession law. Legislators adopted a temporary misdemeanor policy that would have expired July 1, 2023. In the absence of a statewide policy, local jurisdictions would have been left to pass their own ordinances to address drug possession penalties, convictions, and public health policy.

The latest Blake “fix bill” was negotiated ahead of time and on Tuesday, the legislature took just hours to complete passage of the bill. The new law sets the penalty for possession of controlled substances as a gross misdemeanor with a maximum confinement time of 6 months for the first two convictions and any fine for any conviction is capped at a maximum of $1,000. It also creates a system for pre-trial diversion into treatment and requires mandatory early conviction vacation if a person can prove that they have completed treatment or have “substantially complied” with the recovery navigator program or similar services for six months. The bill also creates the crime of public use. The bill passed the House with a vote of 83-13, the Senate with a vote of 43-6, and was signed into law by Governor Inslee later the same day.

House Republicans Change Leadership

On the last day of the 2023 Regular Legislative Session, Rep. JT Wilcox (R-Roy) and Rep. Joel Kretz (R-Wauconda) resigned their posts as House Minority Leader and Deputy Majority Leader respectively. Prior to this, Wilcox had said he would resign if House Republicans failed to pick up seats in the 2022 election, which they did not. When in interviews after the fact, Wilcox added excessive partisanship as one of the reasons he stepped down. The next day, House Republicans elected Rep. Drew Stokesbary (R-Auburn), an Auburn lawyer, as Leader. In a press release announcing his election, Stokesbary pledged an interest in “public safety, student performance, and tax relief.” Rep. Mike Steele (R-Chelan), the Executive Director of the Lake Chelan Chamber of Commerce, was elected Deputy Leader. The leadership change also reflects a generational move as both Wilcox and Kretz are in their 60s, while Stokesbary and Steele are in their late 30s-early 40s. The rest of the House Republican Leadership Team remains unchanged. 2

2024 Statewide Elections - Legislators Seeking other office Upon the conclusion of the 2023 Legislative Session, a number of officials have jumped into 2024 races. Governor Inslee’s announcement he will not seek a fourth term has ignited a chain reaction of interest. Races where sitting legislators are planning to, or have announced, running will be especially notable for those of us engaged in state government relations work. In addition to those listed below, several individuals are contemplating pursuit of other offices. I will provide additional information as races develop.

Attorney General Bob Ferguson (D) for Governor Attorney General since 2012, Bob Ferguson (D) has announced his campaign for Governor. Progressive Ferguson grew to fame in Washington and across the country for countless successful suits beginning with one against then-President Trump’s earliest travel ban in 2017. This session, Ferguson requested and the legislature approved legislation related to banning the sale of assault-style weapons and holding gun-industry members responsible for crimes as well as the “My Health, My Data” privacy bill. Early endorsers include Democrat members of the federal delegation, a large number of Democrat legislators, and labor organizations including UFCW 3000 and Teamsters Joint Council 28.

Lands Commissioner Hilary Franz (D) for Governor Commissioner of Public Lands Hilary Franz entered the race nearly a week after Ferguson. Franz, an environmental lawyer, has said she hopes to pull some conservatives her way as her work as Commissioner has produced friendships across the aisle and in rural Washington since her election in 2016, a place Ferguson is unlikely to succeed. Under Franz, logging on DNR lands was allowed to increase in order to raise revenue for local government needs, drawing criticism from conservationists.

State Senator Mark Mullet (D) for Governor Though he has not formally announced, the Seattle Times notes “State Sen. Mark Mullet, DIssaquah, a business owner who has clashed with Inslee and labor unions, is also considering a run, in which he would seek to carve out a moderate lane by attracting some independent and Republican support.”

Dr. Raul Garcia (R) for Governor Dr. Raul Garcia, the medical director at Astria Toppenish Hospital, announced Friday May 12 that he will run for governor. He was a late entrant into the Republican gubernatorial field in 2020 and did not make it beyond the primary election. A campaign news release wrote that “Garcia worked to promote vaccination among the state’s Latino population in 2020, and is the founder of the Partnership for Our Food Security, an organization that sought to educate and protect farmworkers against COVID-19.” 3

Misipati Semi Bird (R) for Governor Army veteran and Richland School Board member Misipati Semi Bird announced his candidacy for governor in November 2022. He is running on a platform of tax relief, budget accountability, promoting community policing, and improving services for mental health and addiction. Semi is one of three school board members facing a recall election due to their defiance of the mask mandate.

State Senator Manka Dhingra (D) for Attorney General Ferguson’s vacancy of the Attorney General’s office has led Dhingra, a progressive Redmond Democrat to announce for Attorney General. Dhingra has been a Senior Deputy Prosecuting Attorney for King County since 2000, the chair of the Senate Law & Justice Committee, and currently serves as Deputy Majority Leader. She is the Senate champion of the “My Health, My Data” bill and also recently successfully sponsored the bill allowing the Department of Labor and Industries to once again regulate ergonomics, and a bill addressing hate crimes. Early endorsers include a large list of Democrat legislators. Dhingra is not up for re-election to the Senate until 2026.

State Senator Patty Kuderer (D) for Insurance Commissioner First elected in 2000, Insurance Commissioner Mike Kreidler recently announced he will not seek re-election. Progressive Democrat Sen. Patty Kuderer, a Bellevue attorney, has since declared her intention to seek the office. Kuderer, who presently serves as chair of the Senate Housing Committee, credits her work on Universal Healthcare legislation with igniting her interest in the position. As commissioner, she says she would pursue a regional single-payer health care system with California, Oregon, Alaska, and Hawaii. She has also pledged to work on legislation to make gun owners buy insurance to cover negligence and accidents. Kuderer is not up for re-election to the Senate until 2026.

State Senator Christine Rolfes (D) for Kitsap County Commissioner On April 19, Senate Ways & Means Chair Senator Christine Rolfes (D) announced she will seek appointment to the Kitsap County Board of Commissioners. If appointed, she will leave the Senate, opening not only a Senate seat but arguably one of the most powerful chairmanships in the legislature. Both 23rd Legislative District House members, state Representatives Tarra Simmons (D) and Drew Hansen (D) have expressed interest in moving to the Senate in the event Rolfes leaves. If Rolfes is not appointed to the commission, her Senate seat will be up in 2024."

Government Affairs Committee Update

Leslie Simmons — Fri, 12 May 2023 20:07:41 GMT

Check out the following updates from NYBA Lobbyist Jim Hedrick, on current legislation underway in the Washington State Legislature:

Vessel Distances for the Protection of South Resident Killer Whales – SB 5371, Passed Legislature. Effective January 1, 2025, it is unlawful for a person to cause a vessel to approach, position a vessel in the path or behind, or cause a vessel to exceed a speed of seven knots at any point located within 1,000 yards of a South Resident Killer Whale (SRKW). It is also unlawful to fail to disengage the transmission of a vessel that is within 400 yards of a SRKW. The Washington Department of Fish and Wildlife (WDFW) must post signs at public boat launches and marinas that provide information regarding the vessel setbacks and speed limit requirements to protect SRKW. The WDFW must conduct outreach and education regarding regulations and best practices for recreational boating in waters inhabited by a SRKW including the advancement of tools for notifying boaters of SRKW presence, identifying orca ecotypes, and estimating distance on the water.

Reducing Plastic Pollution - HB 1085, Signed into Law by Governor Inslee. Beginning January 1, 2024, a person may not sell, distribute, install, or arrange for the installation of overwater structures containing expanded or extruded plastic foam, or of expanded or extruded foam blocks or floats used in overwater structures, unless the foam is fully enclosed and contained in a shell of concrete, aluminum, steel, or 0.15 inch-thick plastic. Persons in violation of these requirements are subject to civil penalties up to $10,000 per violation.

Derelict Aquatic Structures - SB 5433, Signed into Law by Governor Inslee. The bill authorizes the Department of Natural Resources (DNR) to purchase or otherwise acquire lands and facilities related to derelict aquatic structures, and to remove, refurbish, or dispose of derelict aquatic structures. SB 5433 takes effect July 23, 2023. (note: this pertains specifically to derelict aquatic structures, not derelict vessels).

Underground Storage Tanks - HB 1175, Signed into Law by Governor Inslee. Increases the rate of the Petroleum Products Tax from .15 percent to .30 percent for a state financial assurance program for owners and operators of petroleum underground storage tanks (USTs). The tax has a self-regulating feature whereby the tax temporarily ceases when the fund balance in the account exceeds $30 million and reimposed when the fund balance falls below $15 million. HB 1175 takes effect July 23, 2023.

Tourism Marketing - HB 1258, Signed into Law by Governor Inslee. The final bill does not increase revenue distributions to tourism from retail sales taxes collected on lodging, car rentals, and restaurants as earlier versions of the bill did. The only provision that survived in the final bill is lower match requirement for expenditures from the Statewide Tourism Marketing Account. HB 1258 takes effect July 23, 2023.

Fish and wildlife officers, HB 1369. Signed into Law by Governor Inslee. Allows law enforcement officers employed by the Washington Department of Fish and Wildlife (WDFW) to engage in private law enforcement off-duty employment. If an officer accepts off-duty employment on reservation, trust, or allotted lands of a federally-recognized Indian tribe, the officer must complete the Criminal Justice Training Commission's violence de-escalation and mental health training, including the curriculum of the history of police interactions with Native American communities. HB 1359 takes effect July 23, 2023.

Hedrick Weekly: March 27 -31

Leslie Simmons — Wed, 05 Apr 2023 00:57:12 GMT

Hedrick Weekly March 27-31, 2023

Opposite House Cutoff
Wednesday was the opposite house policy committee cutoff when bills from the originating chamber must clear the opposite chambers policy committee and vice-versa. Los of bills advanced out of committee but it is a major day where a lot of controversial bills thought to be major priorities died in committee and will no longer advance this legislative session.

Fix-it-Yourself
On Tuesday, a proposal that would have compelled manufacturers of technology to make the parts, tools, and manuals people need to fix their own phones and laptops available to consumers died in the Senate Environment, Energy and Technology (EET) Committee. House Bill 1392 by Rep. Mia Gregerson (D-SeaTac), got further along in the process than the idea had in prior years, but did not come to a vote in committee, an indicator it didn’t have the votes among the committee’s Democrats. Technology companies like Apple have been opposed to this proposal for years, raising issues of safety, intellectual property rights, and privacy.

Electrification

Also in the Senate EET Committee was action on a major decarbonization bill, HB 1589, which would prohibit gas companies with more than 500,000 retail gas customers from furnishing or supplying gas to residential and commercial customers. 1589 would only apply to Puget Sound Energy (PSE). PSE wants this bill because it faces heavy compliance costs under the state’s new cap-and-trade system for major emitters of carbon pollution. The company sees opportunity in converting its gas customers to electricity. The bill also envisions that PSE would be allowed to recoup the cost of the existing gas network from ratepayers more quickly. The bill passed the committee on a party-line vote. There is a sizeable business coalition against the bill including the Building Industry Association of Washington and the Washington Hospitality Association. The hospitality association — which represents restaurants around the state —argues it would hurt the development of new restaurants that depend on gas-fired commercial stoves and inflate rents for existing restaurants. PSE has garnered the support of Labor which is large part why this bill is advancing when other bills to restrict the growth of natural gas have failed in past years.

Shield Law
The Senate State Government and Elections Committee passed a proposal to exempt from public disclosure most records associated with state and school district employees who are survivors of domestic violence, sexual assault, harassment, or stalking. House Bill 1533 by Rep. Sharlett Mena (D-Tacoma), has been controversial as open-government advocates are concerned public officials could shield themselves from transparency. The committee tried to address those concerns with an amendment from Sen. Patty Kuderer, D-Bellevue, that creates an exemption from the exemption for reporters seeking records in the course of journalism and requires more proof from people seeking to invoke the exemption. The bill passed the House on a bipartisan vote and is expected to pass the Senate.

One, Two, ADU
Senate Bill 5235 from Senator Sharon Shewmake, (D-Bellingham) is one of two ADU proposals this session letting homeowners living in more populous cities and counties build backyard cottages or mother-in-law apartments up to 4,500 square feet in their backyard. The real estate industry supports the bill as a way to boost the property values of aging homes sitting on valuable land. The bill cleared committee on Monday afternoon with an amendment from House Committee on Housing Chair Strom Peterson, (DEdmonds) which would exempt local governments from permitting ADUs in a neighborhood if it meant sparking a wastewater hazard. The other ADU bill is HB 1337 which cleared the Senate Committee on Local Government, Land Use, and Tribal Affairs on Tuesday. 1337 was amended which removed a provision to pre-empt off-street parking mandates. The bill passed the House with a strong bipartisan vote.

Walk to the Bus Stop
Senate Bill 5466 concerning transit-oriented development by Senator Marko Liias (DMukilteo) aiming to create denser housing requirements around public transit is not going to be so easy this session. The bill is bogged down in how much of the dense housing should be affordable and how close it needs to be to transit. The bill passed the Senate on a bipartisan vote, but House Capital Budget Committee re-wrote the bill to require 20 percent of residential units within the area be affordable to individuals making 60% of the area median income (AMI). That provision will draw opposition from the developer and real estate industry looking to find more market-rate housing to sale.

Pink Tax
Senate Bill 5171 by Senator Manka Dhingra (D-Bellevue) is a bill that would have prohibited price differences in goods that are substantially similar but priced differently based on general of whom the goods are marketed did not come to vote in the House Consumer Protection & Business committee and will not advance any further this session. Dubbed the “Pink Tax” the bill was opposed by retailers arguing that the price of such products was determined by the manufacturer and not at the discretion of retailers. House Democrat members did not have the votes to advance the bill out of committee.

Budget Week
Monday House budget leaders rolled out their 2923-2025 biennial operating, capital and transportation budget proposals. A very high-level overview of those proposals are below. Overall, House budget writes spend more in their plans than the Senate proposals released last week. After the fiscal committee cutoff this Tuesday, budget negotiations to reconcile the differences between House and Senate budgets will begin.

House Operating
The House Democrats Budget dubbed “Resilient Washington,” would spend $69.5 billion over the next 2-years on Democrat priorities, including: racial equity items like $73 million for refugee support and education and $25 million to fund Cascade Care for low-income Medicaid ineligible individuals. For education and workforce development the House proposal spends $570 million for salary adjustment and healthcare cost increase for K-12 educators, $179 million to increase funding supports for special education students, $85 million to expand access to free meals for students (this funds a bill by Rep. Marcus Riccelli (D-Spokane)), and $82 million to expand Early Childhood Education and Assistance Program slots and increase rates. In Housing, Human Services, and Poverty Reduction the House proposes $128 million in food assistance programs, $175 million for emergency housing and rental assistance, and $150 million towards the covenant homeownership program. For Public Health, Behavioral Health, Long-Term Care, and Developmental Disabilities there is $762 million to increase homecare worker rates for individual providers, $340 million for adult family home collective bargaining agreements and $344 million for a 15% rate increase for behavioral health providers. The House spending package also has over $300 million for Climate Commitment Act investments.

House Capital Budget
The House Capital Budget is an $8.3 Billion plan and if approved at that level, would set a new record for state construction spending. Highlights include: upgrades for affordable housing like $400 million for the Housing Trust Fund, $75 million for utility and infrastructure costs related to affordable housing construction, $50 million for affordable Transit-Oriented Development, and $40 million for land acquisition for affordable housing. The budget also makes investments in youth shelter and transitional housing, whole-home energy retrofits, low-income weatherization, and low-income rural home rehabilitation. The House Democrats pay for the controversial “cost increase” at Western State Forensic Hospital (the state’s largest mental institution) with an appropriation of $613 million to construct the new 350-bed facility. The House Capital Budget also has $806 million for K-12 school construction, $400 million for Community and Technical Colleges and $344 million for public universities.

Transportation Budgets
House Democrats proposed a second supplemental transportation budget for the 2021-23 biennium and the new transportation budget for the 2023-25 fiscal biennium, providing a spending authority of $10.3 Billion and $13.6 Billion, respectively. These budget funds will be used to implement last year’s Move Ahead Washington package (almost $17 Billion) over a 16-year($16 Billion investment), also over a 16-year period. The House Transportation budget erases any notion of the delays of the state’s major highway projects from Governors Inslee’s package last December and puts those major highway projects back on track. With a $5.67 billion highway improvements and preservation package the House restores the North/South Freeway near Spokane (connecting I-90 at the south, just west of the Thor/Freya interchange and US 2 and US 395), the Puget Sound Gateway Program (SR 167 and SR 509 completion), and restored funding for SR 18 widening to improve highway safety. The Senate unveiled their transportation proposal on Wednesday, coming in at $12.9 Billion for the 2023-25 budget and $10.6 Billion for the 2021-23 biennium supplemental. Like the House plan, the Senate restores funding to the state’ major highway projects and focuses on traffic safety, workforce expansion in the state patrol and ferry system, electrification, transit, green investments, and capital projects throughout Washington.

Next Week
Fiscal committee’s will have fat schedules of bills to mark up, amend, debate, and vote out of committee ahead of the opposite house fiscal committee cutoff on Tuesday, April 4. Starting Wednesday, the legislature completes its committee phases and will be on the floor full time working bills from the opposite chamber that advanced from Senate committees.

Legislative Updates from Jim Hedrick

Leslie Simmons — Wed, 08 Mar 2023 19:14:37 GMT

A few Legislative Updates, from NYBA Lobbyist Jim Hedrick:

"Updating NYBA on a couple of bills that have passed one chamber and are scheduled for committee hearing in the opposite chamber.

HB 1085 is through the House unanimously and I expect it to become law, largely as described below. I expect SB 5192 to become law as well.

HB 1085 Reducing Plastic Pollution, Passed House on a 97-0 vote.

Public hearing in the Senate Environment, Energy & Technology Committee on Friday, March 10 @ 8:00am

The bill changes the law starting January 1, 2024, a person may not sell, distribute, install, or arrange for the installation of overwater structures containing expanded or extruded plastic foam, or of expanded or extruded foam blocks or floats used in overwater structures, unless the foam is fully enclosed and contained in a shell of concrete, aluminum, steel, or .15 inch-thick plastic. Floating homes and floating on-water residences are excluded from these restrictions, but docks, floats, walkways, and other accessory overwater structures associated with floating homes or on- water residences are subject to these restrictions. Ecology may adopt rules to implement, administer, and enforce these requirements. Persons in violation of these requirements are subject to civil penalties up to $10,000 per violation, with penalties appealable to the PCHB.

SB 5192 Administrative Law Judges / Derelict Vessel Appeals, Passed Senate on a 47-0 vote.

Public hearing in the House Agriculture and Natural Resources Committee on Friday, March 10 3/10 @ 10:30am. The bill authorizes administrative law judges (ALJs) to substitute for pollution control hearings board members in deciding derelict vessel appeals."

Hedrick Weekly: February 27th - March 3rd

Leslie Simmons — Wed, 08 Mar 2023 19:09:16 GMT

Hedrick Weekly: February 27th - March 3rd
The legislature is now in its eighth week and is in full tilt floor action. Majority Democrats are hard at work passing their 2023 priorities including abortion, the environment, labor and workforce issues, affordable housing, and gun violence. Some bills will die during this floor period because they are simply not one of the majority party’s priorities or they lack adequate votes. Other bills that are indeed majority caucus priorities will die on the floor calendar because the bills get laden with time-consuming amendments from the minority party. Still other bills will become the victims of too little time and too many bills moving through the process. Bills have until Wednesday, March 8 to pass the floor in the house of origin. If a bill does not pass the floor in its house of origin, the policy idea moves closer to the dead end of the legislative life continuum and options to revive the concept become fewer.

Early in the week, both chambers began addressing the fallout from the 2022 Dobbs decision. The House passed HB 1469 (Hansen, D-23) also known as the Shield Law, which protects patients and providers of reproductive and gender-affirming care in Washington from retribution by other states. The House also passed HB 1340 (Riccelli, D-3) ensuring that Washington providers cannot be disciplined in Washington State because they provide reproductive or gender-affirming care in accordance with Washington state law, regardless of where their patients reside. The Senate passed SB 5242 (Cleveland, D-49) prohibiting out-of-pocket costs for abortion and SB 5599 (Liias, D-21) which provides that a licensed shelter for runaway or homeless youth does not need to contact the youth's parents if there is a compelling reason not to, including a youth seeking protected health services such as abortion or gender-affirming care.

Environmental issues have been on the agenda for majority Democrats this week as well. The House passed HB 1085 (Mena, D-29) this week, which seeks to address the use of plastics by eventually prohibiting hotels from providing small plastic bottles of soap and shampoo, requiring new construction that provides a drinking fountain to provide water bottle refill stations, and prohibiting the sale of expanded or extruded plastic foam in overwater structures. Also passed this week was HB 1047, also by Rep. Mena, that would ban formaldehyde and formaldehyde releasers, PFAS, lead, phthalates, and other chemicals in cosmetics and personal care products by 2025. The Senate passed SB 5447 (Billig, D-3) a bill giving a B&O tax credit for sales and purchases of alternative jet fuel and also moved legislation aimed at reducing the amount of polychlorinated biphenyls (PCBs) entering Washington state waters. SB 5369 (Billig, D-3) would petition the U.S. Environmental Protection Agency to lower the level of PCBs in consumer products and require the state Department of Ecology to make rules prohibiting paints and inks containing PCBs in Washington.

Labor and workforce issues came into play this week with the passage of SB 5550. Among other items, the bill requires Washington State Ferries to adopt a formal DEI strategy and allows WSF employees to gain maritime credentials and pilotage on the job. After a lengthy debate and a number of proposed amendments, the Senate also 2 passed SB 5217 (Dhingra, D-45), the bill to reinstate the Department of Labor & Industries (L&I) ability to regulate ergonomics. Last year’s version of the bill died in the Senate, so many see this as an indicator the bill will indeed make it over the finish line this year. The House passed HB 1176 (Slatter, D-48) enacting the Washington Climate Corps Network to help transition Washington’s workforce to a clean energy economy.

Affordable housing is a focus for House Democrats this week as they passed HB 1074 (Thai, D-41) after a long debate. The bill would provide a three-year statute of limitations for landlords to file a lawsuit to recover expenses exceeding a damage deposit, prohibits landlords from withholding tenant deposits in certain instances, and requires landlords to substantiate the cost of any damages withheld from a tenant deposit with repair estimates, invoices, or other documentation.

The Senate began the majority’s work on gun violence prevention this week with the passage of SB 5078 (Pedersen, D-43). The bill requires firearm industry members to establish, implement, and enforce reasonable controls regarding the manufacture, sale, distribution, import, use, and marketing of the firearm industry members' firearm and firearm related products. It also prohibits firearm industry members from creating or maintaining a public nuisance and authorizes the attorney general to investigate suspected violations of firearm industry members' duties and to enforce actions against such firearm industry members.

The Washington State Economic and Revenue Forecast Council met Friday. Revenue collections since the November forecast are $89 million (1.1%) above expectations. The report warns of a possible recession in the next year as inflation remains high, leading the Federal Reserve to continue to raise interest rates and layoff notices have increased. The next monthly revenue collection report will be available on March 14 and the revenue forecast will be presented on March 20. These reports inform legislative budget writers as they craft 2-year legislative budget proposals.

The Washington State Department of Health announced Friday that effective April 3, masks are no longer be required in healthcare, long-term care, and adult correctional facilities. The end of Washington’s universal masking requirements aligns with a similar announcement made Friday by the state of Oregon. DOH continues to recommend masks for patients, healthcare providers, and visitors in healthcare settings. Several worker protection requirements enforced by the Department of Labor & Industries remain in effect, including that employees and contractors may choose to use facemasks or other personal protective equipment on the job without employer retaliation. Additionally, under the state Health Emergency Labor Standards Act rules, several key worker protections remain in place until the federal pandemic response declaration ends May 11.

This week a reliable rumor has revealed a tentative legislative budget where the Senate Operating and Capital budgets are expected on about March 21st (one day after the revenue forecast) and the House Operating and Capital released on March 27th.

Legislative Updates from Jim Hedrick

Leslie Simmons — Wed, 22 Feb 2023 00:37:05 GMT

NYBA lobbyist Jim Hedrick has shared his thoughts on the current legislative session, and highlighted the following items that will be of particular interest to our NYBA members:

"The Washington State Legislature is now about a third of its way through to its adjournment date on April 23. This past Friday (2/18) was the policy committee cutoff and next Friday (2/24) is the fiscal committee cutoff.

This week the House Capital Budget Committee is hearing SHB 1378 concerning the removal of derelict aquatic structures and restoration of aquatic lands. The bill would authorize the Department of Natural Resources (DNR) to purchase or otherwise acquire lands and facilities related to derelict aquatic structures, and to remove, refurbish, or dispose of derelict aquatic structures. The Senate companion bill, SB 5433, will also be heard in the Senate Ways & Means Committee.

House Bill 1085 concerning plastic pollution continues to advance and is now in the House Rules Committee. HB 1085 was amended to narrow the restrictions on plastic foam in floating overwater structures to apply only to structures or blocks and floats that are not fully enclosed and contained in a 0.15 inch-thick plastic shell or a concrete, aluminum, or steel shell. The Substitute version is expected to come to a House vote as early as Wednesday of this week.

Senate Bill 5371 which would expand the perimeter to protect southern resident orcas from 400 to 1,000 yards continues to advance and is in the Senate Rules Committee. The bill would make it unlawful for a person to cause a vessel or other object to approach, in any manner, within 1,000 yards of a southern resident orca or position a vessel to be in the path of a southern resident orca at any point located within 1,000 yards of the whale. This includes intercepting a southern resident orca by positioning a vessel so that the prevailing wind or water current carries the vessel into the path of the whale at any point located within 1,000 yards of the whale.

The House Finance Committee will hold a hearing on the Margins Tax, HB 1644. The bill has received heavy opposition from businesses across the board as not fully understanding how the bill affects their industry while others argue they would pay significantly more taxes under a new Margins Tax than the current B&O tax. The Margins Tax is not expected to pass the legislature this year until it’s better understood by businesses and the legislature.

Check out the full Hedrick Weekly for February 13th-17th here.

Margin Tax

Leslie Simmons — Thu, 02 Feb 2023 23:34:33 GMT

From lobbyist Jim Hedrick:
"The Margin Tax was introduced in the legislature this week as Senate Bill 5482 (link below). SB 5482 is scheduled for a committee hearing next week on Thursday, January 26 at 10:30am before the Senate Committee on Business, Financial Services, Gaming & Trade.

Click here for a link to Senate Bill 5482 Margins Tax

How The Margin Tax Works:

Instead of a business paying tax on their gross revenue with no deductions (unless you are lucky enough to have a special exemption in the code!), ALL BUSINESSES GET A DEDUCTION. Each year, a business gets to take one major deduction of their choosing: cost of labor, cost of goods sold, a flat 30% or a flat $1 million, and then their tax is calculated on their remaining margin.

The rate for all business activity in Washington state under this proposal is 3.1966%. Businesses with $5 million of revenue or less can opt instead to use the EZ rate off 1.75% and pay on gross receipts rather than their margin.

Here are additional resources at taxworkgroup.org:

Overview of margin tax proposal developed by the Tax Structure Work Group for the 2023 legislature

Comparison of margin tax proposal, Texas franchise tax, and Washington business & occupation (B&O) tax

Current law business and occupation (B&O) tax incentives in the margin tax proposal

Business tax incidence graphs: comparison of business and occupation (B&O) tax vs. margin tax by industry and firm size

Margin tax bill: SB 5482 Concerning the margin tax

Want to see how much your business would pay? Use the Tax Calculator which has been fully modeled to match SB5482."

Thank your to Jim and the Government Affairs Committee for providing this info to our members.

Hedrick Weekly: January 16-20

Leslie Simmons — Thu, 02 Feb 2023 23:31:02 GMT

Into the second week and Legislative Democrats rolled out several of their high-profile priorities including policies on guns, nurse staffing, recycling, middle housing, a margins tax to replace the existing B&O tax and a new wealth tax.

The majority party is making good this week on their bold declaration that voters have called on them to make gun violence a priority in 2023. On Tuesday, 4,406 people signed in not wishing to testify in House Civil Rights & Judiciary Committee on HB1240 (Peterson, D-21), a Governor and Attorney General request bill that prohibits the manufacture, importation, distribution, sale, or offer for sale of any assault weapon, with a few exceptions. This is the seventh session Attorney General Bob Ferguson has requested this bill and Democrats hope this is the year they will succeed. Also heard on Tuesday, were HB 1178 (Hackney, D-11), which repeals the statute that preempts local jurisdictions from adopting laws relating to firearms, HB 1143 (Berry, D-36) which would require gun buyers to obtain a permit before purchasing a firearm, and HB 1144 (Berry, D-36), which would require safety training and an extended waiting period before acquiring a firearm. Over in the Senate, the Law & Justice Committee heard SB 5078, which creates a private right of action towards firearm industry members for those harmed by guns.

Tuesday Senate Law & Justice Committee Chair Senator Manka Dhingra (D-45) announced she would not be give a committee hearing to a bill addressing vehicular police pursuits. Dhingra said she “has not seen any data correlating crime to the vehicular pursuit ban and the 2021 law limiting police pursuits was passed when crimes were already on the rise, . . . the “increase in crime occurred nationally, regardless of laws that people have passed.” Fellow Democrat Senator John Lovick (D-44), a former Washington State Patrol Sargent and Snohomish County Sheriff has introduced SB 5352 which would change the evidentiary standard for officers to pursue suspects from “probable cause” to “reasonable suspicion” and additional mandatory conditions on pursuits that include communication with a commanding officer. SB 5352 has bipartisan cosponsors and is awaiting action in Dhingra’s Law & Justice Committee.

House and Senate Transportation Committees received hours of public testimony on Governor Inslee’s proposed Transportation budget. The governor’s proposal has taken sharp criticism from around the state for the “delays” of several major highway projects including US 2 and State Route 522 in Snohomish County, State Route 18 connecting I-90 with I-5 in King County, US 395 the North Spokane Corridor, and State Routh 167 the Gateway project in Pierce County. The governor’s office has fired back stating the

no gas tax, no bonds, all federal and state cash “Move Ahead Washington” plan passed by the legislature last March “front-loaded” the money and there is not the through puts in workforce or at the Department of Transportation (WSDOT) to realistically do all those major projects on the timeline prescribed by the legislature. It is expected the legislature will develop their own transportation budget sequencing which will need to look different given the inflationary costs of highway construction. The House and Senate are expected to release a budget sometime in late March.

The Senate Labor & Commerce Committee heard SB 5236 (Robinson, D-38), bringing out a huge number of participants in the legislative process. 3,015 people signed in not wishing to testify on this bill that directs the Department of Labor and Industries to set staffing standards for health care workers, and specifically, set minimum nurse to patient ratios. Unlike a bill from 2022, this proposal does not set the standards, but has the state develop them over the next two years with input from stakeholders. The bill is supported by labor and is opposed by the Washington State Hospital Association.

The WRAP Act, SB 5154 (Rolfes, D-23), was heard this week, as was its companion HB 1131 (Berry, D-36). This is the latest in a series of bills over the past few years that attempts to overhaul the recycling system in Washington. This proposal implements an extended producer responsibility (EPR) program for packaging and printed paper and establishes minimum post-consumer recycled content requirements on single use consumer products. The bill also authorizes the establishment of an Oregon-style bottle deposit return system. If passed, consumers will pay a 10 cent fee on beverage containers and then redeem the 10 cents at drop locations. The redemption is credited to the consumer’s online account and the funds can be redeemed for cash, put into a college savings account, or donated to nonprofits. The WRAP “bill” is supported by environmentalists and local governments and opposed by industries including waste collectors, grocery stores, and the hospitality industry.

Medium density, or “middle” housing took the stage this week with HB 1110 (Bateman, D-22), a bill that would force cities to allow more housing density in single-family neighborhoods. The bill effectively ends single-family zoning, something the state of Oregon did in 2019 and California did in 2021. Representative Andrew Barkis (R-2), the owner of a property management company, is the second sponsor of the bill, though no other Republicans signed onto it. The bill is supported with great enthusiasm by urbanists and builders, but legislators will face criticism from those who enjoy living in single-family zoning. 1,950 lobbyists and members of the public signed in on it.

Senator Noel Frame (D-36) and Representative My-Linh Thai (D-41) introduced a Wealth Tax bill this week at a news conference. The bills, HB 1473 and SB 5486, would

create a property tax on the ownership of stocks, bonds, and other financial assets over $250 million. The revenue generated is dedicated to four funds - the Education Legacy Trust Fund, which is a dedicated funding source for early learning, K-12, and higher education; the Housing Trust Fund, which pays for the construction of affordable housing, and two new funds created in the bill: a Disabilities Care Trust account that will pay for services for Washingtonians with disabilities, and a Taxpayer Justice account, that will offer credits against taxes paid by low and middle-income families.

Next week, legislative Democrats have reproductive rights on their agenda and will bring forward bills in several committees, including policies on access to abortion, consumer health data, and protecting employers that provide access to reproductive care services.

Hedrick Weekly: January 9-13

Leslie Simmons — Thu, 02 Feb 2023 23:28:41 GMT

The 68th Washington State Legislature convened their 15 week (105-day) regular session this week under almost normal circumstances, after having operated in a mostly-remote fashion the past two years. This year, masks are still encouraged and required in most legislator offices and access to all offices is restricted by security, preventing lobbyists and the public from casually dropping by. Some aspects of remote sessions are here to stay, including remote committee hearing testimony. Roughly half of public speakers were remote and committee chairs easily moved from live to remote testimony all week.

Legislative Democrats say they feel emboldened by 2022 General Election results. Democrats are saying the election results prove voters agree with their agenda on abortion, taxes, guns, the environment and other issues. In a recent interview, House Speaker Laurie Jinkins (D-Tacoma) said “People have spoken in terms of the majorities they sent back to the legislature…Washingtonians have said they trust Democrats to lead.” Democrats picked up one seat in the House flipping the seat in the swing 10th Legislative District (Island County), with Clyde Shavers (D-10) besting incumbent Rep. Greg Gilday (R-10), bringing the House political makeup to 58 Democrats and 40 Republicans. Jinkins will now lead a caucus with a lot of new members who have tilted that caucus decidedly to the left politically.

In the state Senate the makeup was 28 Democrats plus one Democrat who caucused and voted with Republicans (Senator Tim Sheldon, D-35) and 20 Republicans. In the 2022 election, the Democrats picked up the Senate seat in the 42nd Legislative District (Whatcom County) flipping from appointed Republican Senator Simon Sefzik to former Representative Sharon Shewmake (D-42), producing a new 29-20 Democrat majority.

Legislative Democrats who control both chambers, in coordination with Democrat Governor Jay Inslee, have a bold agenda for the 2023 session that includes the following issues:

● Gun Violence Prevention - In a recent news interview, Senator Jamie Pedersen (D-Seattle) said “It’s clear what we have done on guns is not troubling the voters,” calling the election results “yet another affirmation of our approach.” This year, Democrats have introduced bills to ban the sale of assault-style semiautomatic rifles, require a permit to purchase a firearm, make gun makers and sellers liable for selling weapons used in crimes, and granting gun control authority to local governments.

● Drug Possession - After the Washington State Supreme Court struck down the state’s felony drug-possession law (aka the “Blake Decision”) during the 2021 legislative session, lawmakers passed a quick fix to classify possession as a misdemeanor but refer people to treatment before charging them. That law sunsets in July. Most lawmakers agree that treatment is needed for people with substance abuse issues, but some members hope for stiffen criminal penalties, while others seek to decriminalize drug possession.

● Housing and Homelessness - Governor Inslee has proposed the state raise $4 billion to build affordable housing by issuing bonds outside the state’s debt limit, which will require legislative and voter approval. If passed as proposed, the bond issue would go to a statewide ballot in November 2023 for voter approval. Additionally, there are proposals to allow more units on residential lots, intensify transit-oriented development, eliminate design review boards on residential construction, and cap the amount landlords can raise rent each year.

● Workforce Issues - Republicans and Democrats agree there is a workforce crisis, given nearly every sector is experiencing staffing shortages due to baby boom retirements and the Covid-era resignations. Senate Majority Leader Andy Billig (D-Spokane) recently said “If you look at law enforcement, we have workforce issues; if you look at early learning, we have a workforce issue.” Expect more legislation to expand apprenticeships, provide retention bonuses, change licensure requirements etc.

● Abortion - In 1991, Washington voters passed Initiative 120, codifying Roe v Wade into state law. 32 years later, Senate Democrats have introduced a bill to amend the constitution to further protect access to abortion and contraception in a post-Roe world. Supporters claim an amendment would offer stronger protections because it is easier for the Legislature to repeal a statute than a constitutional amendment. Amending the constitution in Washington requires a two-thirds majority in each chamber and voter approval.

● Budget - As lawmakers prepare to write the 2023-25 budgets, they do so with increased revenue and a few uncertainties that will play out during session. First, the state is now collecting the new capital gains tax, which is expected to generate hundreds of millions of dollars per year for early learning and childcare. Though, the state Supreme Court will hear arguments on January 26 that could possibly strike down the law, creating a large hole in budget expectations. Second, the Department of Ecology will hold the first of four annual auctions for carbon emission allowances on February 28 under the state’s new Cap & Trade law. The Office of Financial Management (OFM) anticipates the purchase of

“pollution credits” will generate approximately $480 million this year. Legislators will need to agree on how to spend these early proceeds.

Committee hearings this week mostly focused on Governor Inslee’s operating, capital, and transportation budgets, reports due to the legislature from state agencies, and getting this large group of new members up to speed with work sessions on various agencies and topics. This 68th Legislature has 21 brand-new legislators with 9 of whom have served previously or are moving from the House to the Senate.

Expect a faster pace on committee hearings on bills next week. The legislature operates on a series of dates whereby bills must advance beyond a certain point in the legislative process to continue to advance. These hard dates are commonly referred to as “cutoffs.” The first “cutoff” is February 17 where bills must be approved by the committee to which they were originally referred. Next week will be committee hearings on gun bills, a bill to reduce plastic packaging used on products, and a bill to protect the consumer health care data of patients who come from out-of-state to received health care services.