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.

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."

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."

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, 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. 

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
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. 

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.

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.

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.