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

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.

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

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."

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."