The 2025 Legislative Session adjourned Sine Die on April 27 – on time. This on-time adjournment was rather shocking considering the size of the budget deficit, but the majority Democratic leadership came in demanding tax increases and that they got. Although the original tax package was a whopping $21 billion at its max, in the end Governor Ferguson’s warnings that that was too much reduced the new tax package to $9.4 billion – still the highest in state history.
This Legislative session was the worst in my 36 years of sessions both in terms of bad bills for business and the constant push for agendas on rent control, UI for Striking Workers, and other issues. This session also saw the loss of former Speaker of the House Frank Chopp (who just retired last year), sitting Senator Bill Ramos from the 5th legislative district, and on the last days of session, the unexpected passing of Senator Chris Gildon’s wife. Even with the partisan battles, the personal losses of those involved in this process are felt by all.
OPERATING BUDGET
The final budget as passed is $77.9 billion, an 8.2% increase OVER the last biennial budget. Spending was increased by over $1 billion above maintenance (the cost to keep all programs the same) with most of that coming from increases to K-12 education. In addition, several old programs were sacrificed to make room for new bills that passed this year. Governor Ferguson has promised to go over the budget thoroughly before he signs it. The Seattle Times is encouraging this in a recent editorial.
The tax package is the news for all businesses in WA state. No one got away unscathed and somehow the “tax the rich” mantra became “make businesses pay their fair share” – even though businesses pay almost 50% of the taxes to the state through B&O, property and sales tax. Below is a brief summary of the taxes that passed.
Revenue Package Overview:
In the end, the property tax increase was killed and replaced with additional levy authority for school districts.
In the meantime, I urge you to contact Governor Ferguson and urge him to veto the B&O tax increases in HB 2081. Our state’s economy cannot afford these increases!
TRANSPORTATION BUDGET
The Legislature also passed a $13.6 billion transportation budget that fully funded the Puget Sound Gateway project and other Connecting Washington/South Sound projects. The budget also included a transfer of sales tax from motor vehicle sales from the operating budget to the transportation budget.
The transportation budget also allocated approximately $895 million to the Washington State Ferries (WSF) systemspecifically the construction of new hybrid-electric ferries, preservation and maintenance of existing vessels, and terminal electrification projects.
This budget did not happen without a price… below are tax and fee increases projected to generate approximately $3.2 billion over six years to fund various projects.
Fuel Taxes
RENT CONTROL
After a lot of angst and some parliamentary procedures by the Senate Republicans that force the conference committee back to the table, the Legislature passed Engrossed House Bill 1217 (EHB 1217). The legislation caps annual rent and fee increases for residential properties at 7% plus the Consumer Price Index (CPI) or 10%, whichever is lower, after the first year of tenancy. For manufactured housing, the cap is set at 5% annually, with a one-time increase of up to 10%permitted upon the sale of a manufactured home, provided proper notice is given. Landlords are required to provide a minimum of 90 days' written notice for any rent increase, and no increases are allowed during the first 12 months of a tenancy. Additionally, the bill mandates that rent differences between month-to-month and fixed-term leases for the same unit cannot exceed 5%. Exemptions apply to certain owner-occupied properties, newly constructed units (less than 12 years old), and housing operated by public or nonprofit entities.
The legislation's enforcement mechanisms allow tenants or the Attorney General to initiate legal action against landlords who violate the provisions, with potential penalties including damages equal to three months' unlawful rent, reimbursement of excess charges, and coverage of legal fees.
KEY BILLS THAT MADE THEIR WAY TO THE GOVERNOR’S DESK
Budget & Taxes
Childcare & Workforce Participation
Energy & Environment
Health Care
Housing Affordability
Public Safety
Workforce & Small Business Issues
Transportation & Permitting
Education & Workforce Training
Below are the bills that passed the Legislature that we are tracking. I will do a more in-depth report after the Governor is done with his work.
Budget and Taxes
Bill # |
Abbrev. Title |
Short Description |
Status |
Sponsor |
Priority |
Position |
Airport projects/local REET |
Concerning the addition of airport capital projects as an allowable use of local real estate excise tax revenues. |
C 85 L 25 |
Dent |
Low |
|
|
Local real estate excise tax |
Increasing the flexibility of existing funding sources to fund public safety and other facilities by modifying the local real estate excise tax. |
C 159 L 25 |
Paul |
High |
|
|
Deed of trust assignment/fee |
Eliminating the exemption for assignments or substitutions of previously recorded deeds of trust from the document recording fee and the covenant homeownership program assessment. |
C 100 L 25 |
Scott |
High |
|
|
Public safety funding |
Improving public safety funding by providing resources to local governments and state and local criminal justice agencies, and authorizing a local option tax. |
Del to Gov |
Entenman |
High |
Support |
|
SHB 2020 (SB 5777) |
Payment card processing/tax |
Creating a business and occupation tax deduction and increasing the rate for persons conducting payment card processing activities. |
Del to Gov |
Berg |
Medium |
|
Employee ownership program |
Eliminating the Washington employee ownership program. |
Del to Gov |
Richards |
Monitoring |
|
|
ESHB 2049(SB 5812) |
K-12 education funding |
Investing in the state's paramount duty to fund K-12 education and build strong and safe communities. |
Del to Gov |
Bergquist |
High |
|
SHB 2077 (SB 5811) |
Zero-emission vehicle prg. |
Establishing a tax on certain business activities related to surpluses generated under the zero-emission vehicle program. |
Del to Gov |
Fitzgibbon |
Medium |
|
ESHB 2081(SB 5815) |
Business and occupation tax |
Modifying business and occupation tax surcharges, rates, and the advanced computing surcharge cap, clarifying the business and occupation tax deduction for certain investments, and creating a temporary business and occupation tax surcharge on large companies. |
Del to Gov |
Fitzgibbon |
High |
|
ESSB 5167(SHB 1198) |
Operating budget |
Making 2025-2027 fiscal biennium operating appropriations. |
Del to Gov |
Robinson |
High |
|
SSB 5194(SHB 1202) |
State gen. obligation bonds |
Concerning state general obligation bonds and related accounts. |
Del to Gov |
Trudeau |
Monitoring |
|
SSB 5314(2SHB 1614) |
Capital gains tax |
Modifying the capital gains tax. |
Del to Gov |
Stanford |
High |
|
SB 5315 (HB 1126) |
Local tax rate changes |
Standardizing notification provisions relating to local tax rate changes and shared taxes administered by the department. |
Del to Gov |
Gildon |
Medium |
Support |
ESSB 5390(HB 1914) |
Access to recreation sites |
Concerning the discover pass and distributions. (REVISED FOR ENGROSSED: Concerning access to recreation sites or lands.) |
Del to Gov |
Stanford |
High |
|
Tax and revenue laws |
Modifying tax and revenue laws in a manner that is not estimated to affect state or local tax collections. |
Del to Gov |
Schoesler |
Medium |
|
|
2SSB 5786(SHB 2035) |
Liquor license fees |
Increasing license, permit, and endorsement fees. |
Del to Gov |
Stanford |
Medium |
|
Tax preferences |
Adopting recommendations from the tax preference performance review process, eliminating obsolete tax preferences, clarifying legislative intent, and addressing changes in constitutional law. |
Del to Gov |
Salomon |
High |
|
|
ESSB 5813(HB 2082) |
Tax rates/cap. gains, estate |
Increasing funding to the education legacy trust account by creating a more progressive rate structure for the capital gains tax and estate tax. |
Del to Gov |
Wilson |
High |
|
ESSB 5814(HB 2083) |
Excise taxes |
Modernizing the excise taxes on select services and nicotine products and requiring certain large businesses to make a one-time prepayment of state sales tax collection. |
Del to Gov |
Frame |
High |
Oppose |
Childcare
Bill # |
Abbrev. Title |
Short Description |
Status |
Sponsor |
Priority |
Position |
Child care qualifications |
Modifying child care provider qualifications. |
Del to Gov |
Dent |
Medium |
|
|
ESSB 5509(SHB 1212) |
Child care center siting |
Concerning the siting of child care centers. |
Del to Gov |
Alvarado |
Medium |
|
Energy and Climate Change
Bill # |
Abbrev. Title |
Short Description |
Status |
Sponsor |
Priority |
Position |
EHB 1329 (SB 5401) |
Wholesale power purchases |
Concerning wholesale power purchases by electric utilities under the Washington clean energy transformation act. |
Del to Gov |
Hunt |
Low |
Support |
Clean fuels program |
Concerning the clean fuels program. |
Del to Gov |
Fitzgibbon |
Medium |
Oppose |
|
ESHB 1522(SSB 5430) |
Utility wildfire mitigation |
Concerning approval of electric utility wildfire mitigation plans. |
C 156 L 25 |
Dent |
Low |
Support |
SHB 1543(SSB 5514) |
Clean buildings standard |
Increasing compliance pathways for the clean buildings performance standard. |
Del to Gov |
Doglio |
Low |
Support |
Energy standard/comply cost |
Regarding the costs of compliance with the state energy performance standard. |
C 158 L 25 |
Dye |
Monitoring |
|
|
Climate commitment act |
Amending the climate commitment act by adjusting auction price containment mechanisms and ceiling prices, addressing the department of ecology's authority to amend rules to facilitate linkage with other jurisdictions, and providing for market dynamic analysis. |
Del to Gov |
Fitzgibbon |
Medium |
Support |
|
Statewide emissions data |
Strengthening Washington's leadership and accountability on climate policy by transitioning to annual reporting of statewide emissions data. |
Del to Gov |
Boehnke |
Low |
Support |
Health Care
Bill # |
Abbrev. Title |
Short Description |
Status |
Sponsor |
Priority |
Position |
SHB 1392 (SB 5372) |
Medicaid access program |
Creating the medicaid access program. |
Del to Gov |
Macri |
Medium |
Oppose |
E2SSB 5083(SHB 1123) |
Health carrier reimbursement |
Ensuring access to primary care, behavioral health, and affordable hospital services. |
Del to Gov |
Robinson |
Monitoring |
|
SB 5084 (HB 1379) |
Health carrier reporting |
Concerning health carrier reporting. |
C 6 L 25 |
Robinson |
Monitoring |
|
Hospital price transparency |
Concerning hospital price transparency. |
C 146 L 25 |
Riccelli |
Monitoring |
|
Housing Attainability
Bill # |
Abbrev. Title |
Short Description |
Status |
Sponsor |
Priority |
Position |
Affordable housing financing |
Expanding housing supply by supporting the ability of public housing authorities to finance affordable housing developments. |
C 31 L 25 |
Walen |
Monitoring |
|
|
Solicited real estate |
Establishing consumer protections for owners of solicited real estate. |
C 77 L 25 |
Donaghy |
Monitoring |
|
|
Lot splitting |
Increasing housing options through lot splitting. |
Del to Gov |
Barkis |
High |
Support |
|
Housing cost task force |
Creating a task force on housing cost driver analysis. |
Del to Gov |
Klicker |
High |
Support |
|
Local government planning |
Ensuring that local government planning complies with the growth management act. |
C 17 L 25 |
Duerr |
Monitoring |
|
|
EHB 1217(SSB 5222) |
Residential tenants |
Improving housing stability for tenants subject to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act by limiting rent and fee increases, requiring notice of rent and fee increases, limiting fees and deposits, establishing a landlord resource center and associated services, authorizing tenant lease termination, creating parity between lease types, and providing for attorney general enforcement. |
Del to Gov |
Alvarado |
High |
Oppose |
ADU self-certification |
Establishing a self-certification program for accessory dwelling unit project permit applications. |
C 22 L 25 |
Ramel |
Monitoring |
|
|
Condominium construction |
Simplifying condominium construction statutes. |
Del to Gov |
Taylor |
High |
|
|
Transit-oriented housing dev |
Promoting transit-oriented housing development. |
Del to Gov |
Reed |
High |
|
|
Multiple-unit dwellings/tax |
Concerning the property tax exemptions for new and rehabilitated multiple-unit dwellings in urban centers. |
C 164 L 25 |
Ramel |
Medium |
|
|
Historic landmarks/cities |
Concerning the designation of historic landmarks by cities. |
Del to Gov |
Walen |
Monitoring |
|
|
Covenant homeownership prg. |
Modifying the covenant homeownership program. |
C 143 L 25 |
Taylor |
Monitoring |
|
|
Deed of trust assignment/fee |
Eliminating the exemption for assignments or substitutions of previously recorded deeds of trust from the document recording fee and the covenant homeownership program assessment. |
C 100 L 25 |
Scott |
High |
|
|
Project permit definition |
Concerning the definition of project permit and project permit application. |
C 102 L 25 |
Duerr |
Medium |
Support |
|
Eminent domain purchase back |
Providing owners of real estate taken through eminent domain by school districts, or sold under threat of eminent domain, the opportunity to purchase the real estate back when it is not put to intended public use. |
Del to Gov |
Hasegawa |
Medium |
|
|
E2SSB 5148(HB 1235) |
GMA housing element |
Ensuring compliance with the housing element requirements of the growth management act. |
Del to Gov |
Bateman |
High |
|
ESSB 5184(HB 1299) |
Minimum parking requirements |
Concerning minimum parking requirements. |
Del to Gov |
Bateman |
High |
Oppose |
ESSB 5232(SHB 1263) |
Essential needs program uses |
Updating eligible uses for the essential needs and housing support program. |
Del to Gov |
Wilson |
Monitoring |
|
ESB 5471 (HB 1840) |
Middle housing |
Authorizing middle housing in unincorporated growth areas and unincorporated urban growth areas, certain limited areas of more intensive rural development, and fully contained communities. |
Del to Gov |
Goehner |
High |
|
ADU tax exemptions |
Amending the county population threshold for counties that may exempt from taxation the value of accessory dwelling units to incentivize rental to low-income households. |
Del to Gov |
Gildon |
High |
Support |
|
Growth management plans |
Concerning growth management comprehensive plans. |
C 148 L 25 |
Goehner |
Monitoring |
|
|
UGA subdivision process |
Streamlining the subdivision process inside urban growth areas. |
Del to Gov |
Lovelett |
Monitoring |
|
|
Affordable housing dev. |
Concerning affordable housing development in counties not closing the gap between estimated existing housing units within the county and existing housing needs. |
Del to Gov |
Cleveland |
Medium |
|
|
Land use permitting workload |
Streamlining and clarifying local governments' land use permitting workloads. |
Del to Gov |
Salomon |
Monitoring |
|
Public Safety
Bill # |
Abbrev. Title |
Short Description |
Status |
Sponsor |
Priority |
Position |
Public safety funding |
Improving public safety funding by providing resources to local governments and state and local criminal justice agencies, and authorizing a local option tax. |
Del to Gov |
Entenman |
High |
Support |
|
Criminal justice trainings |
Concerning training provided by the criminal justice training commission. |
C 125 L 25 |
Orwall |
Monitoring |
|
Supporting Small Business
Bill # |
Abbrev. Title |
Short Description |
Status |
Sponsor |
Priority |
Position |
Work restrictions/age 16, 17 |
Concerning restrictions on the working conditions and hours of sixteen- and seventeen-year olds. |
C 79 L 25 |
McClintock |
Medium |
Support |
|
Maritime careers task force |
Directing the statewide career and technical education task force to consider educational opportunities for careers in maritime professions. |
Del to Gov |
Shavers |
Monitoring |
|
|
E2SHB 1213(SB 5539) |
Paid family & medical leave |
Expanding protections for workers in the state paid family and medical leave program. |
Del to Gov |
Berry |
High |
Oppose |
HB 1275 (SB 5381) |
Self-insurer withdrawal |
Establishing department authority to ensure payment is received from the self-insured employer after a self-insured group or municipal employer has their self-insurer certification withdrawn. |
C 57 L 25 |
Scott |
Medium |
Oppose |
SHB 1308 (SB 5345) |
Access to personnel records |
Concerning access to personnel records. |
Del to Gov |
Reed |
High |
Oppose |
Transp. network companies |
Concerning transportation network companies. |
Del to Gov |
Obras |
Medium |
|
|
ESHB 1483(SB 5423) |
Digital electronics/repair |
Supporting the servicing and right to repair of certain products with digital electronics in a secure and reliable manner. |
Del to Gov |
Gregerson |
Monitoring |
|
Isolated employees |
Concerning workplace standards and requirements applicable to employers of isolated employees. |
C 47 L 25 |
Obras |
Medium |
Concerns |
|
ESHB 1644(SB 5756) |
Working minors |
Concerning the safety and health of working minors. Imposes significant restrictions and penalties on employers' ability to get minor work permits - particularly variances. |
C 173 L 25 |
Fosse |
Monitoring |
|
EHB 1747 (SB 5549) |
Job applicants and employees |
Expanding protections for applicants and employees under the Washington fair chance act. |
C 71 L 25 |
Ortiz-Self |
Medium |
|
2SHB 1788(2SSB 5548) |
Workers' compensation |
Concerning workers' compensation benefits. |
C 168 L 25 |
Richards |
High |
Oppose |
Sick leave/immigration |
Allowing the use of paid sick leave to prepare for or participate in certain immigration proceedings. |
C 170 L 25 |
Salahuddin |
Monitoring |
|
|
Unemp ins/strikes & lockouts |
Concerning unemployment insurance benefits for striking or lockout workers. |
Del to Gov |
Riccelli |
High |
Oppose |
|
Worker leave/hate crimes |
Expanding access to leave and safety accommodations to include workers who are victims of hate crimes or bias incidents. |
Del to Gov |
Valdez |
Medium |
Concerns |
|
Immigration status coercion |
Protecting employees from coercion in the workplace based on immigration status. |
Del to Gov |
Hasegawa |
Medium |
Concerns |
|
Pregnancy accommodations |
Expanding pregnancy-related accommodations for all employers. Only impact for construction would be the provisions requiring payment for break or leave time if accommodations not made that can adapt in a way that works during work time. Changes this piece to a wage and hour issue. |
Del to Gov |
Nobles |
Medium |
|
|
ESSB 5291(HB 1415) |
Long-term services trust |
Implementing the recommendations of the long-term services and supports trust commission. |
Del to Gov |
Conway |
Medium |
|
SSB 5408 (HB 1831) |
Wage and salary disclosures |
Allowing for corrections to wage and salary disclosures. |
Del to Gov |
King |
Medium |
Support |
SSB 5492(SHB 1437) |
Tourism promotion |
Concerning sustainable state tourism promotion. |
C 189 L 25 |
Riccelli |
Monitoring |
|
Employee driving requirement |
Concerning employer requirements for driving. |
C 115 L 25 |
Stanford |
Low |
|
|
Layoffs |
Concerning employment loss due to businesses closing or mass layoffs. |
Del to Gov |
Cleveland |
Medium |
|
Transportation
Bill # |
Abbrev. Title |
Short Description |
Status |
Sponsor |
Priority |
Position |
County ferry contracts |
Concerning county ferry maintenance and repair contracts. |
C 35 L 25 |
Leavitt |
High |
|
|
Ferry system salaries |
Concerning the salaries of ferry system collective bargaining units. |
Del to Gov |
Fey |
High |
Support |
|
Clean fuels program |
Concerning the clean fuels program. |
Del to Gov |
Fitzgibbon |
Medium |
Oppose |
|
PTBA governing body members |
Adding two voting members that are transit users to the governing body of public transportation benefit areas. |
Del to Gov |
Timmons |
Monitoring |
|
|
ESHB 1837(SB 5667) |
Intercity passenger rail |
Establishing intercity passenger rail improvement priorities. |
Del to Gov |
Reed |
Monitoring |
|
Transp. project permitting |
Convening a work group regarding the streamlining of permitting for transportation projects. |
Del to Gov |
Richards |
Medium |
Support |
|
ESSB 5161(SHB 1227) |
Transportation budget |
Making transportation appropriations for the 2025-2027 fiscal biennium. |
Del to Gov |
Liias |
High |
|
Transp. electrification |
Concerning the installation of transportation electrification infrastructure. |
Del to Gov |
Liias |
Monitoring |
|
|
Toll rate setting process |
Streamlining the toll rate setting process at the transportation commission. |
Del to Gov |
Ramos |
Medium |
|
|
Transportation resources |
Concerning transportation resources. |
Del to Gov |
Liias |
High |
|
|
Transportation funds |
Rebalancing statutory fund transfers and revenue dedications for transportation. |
Del to Gov |
Liias |
High |
|
Workforce Education
Bill # |
Abbrev. Title |
Short Description |
Status |
Sponsor |
Priority |
Position |
Dual credit program access |
Improving student access to dual credit programs. |
C 104 L 25 |
Paul |
Medium |
Support |
|
Postsecondary ed protections |
Providing postsecondary education consumer protections. |
C 82 L 25 |
Pollet |
Monitoring |
|
|
Commencement/cultural exp. |
Providing public school students with opportunities for cultural expression at commencement ceremonies. |
C 88 L 25 |
McEntire |
Monitoring |
|
|
CTE careers work group |
Improving access to career opportunities for students. |
C 61 L 25 |
Connors |
High |
|
|
HB 1556 (SB 5542) |
HS completers/CTC tuition |
Expanding tuition waivers for high school completers at community and technical colleges. |
C 42 L 25 |
Entenman |
Monitoring |
|
Higher ed. accreditation |
Modifying higher education accreditation standards. |
C 157 L 25 |
Pollet |
Monitoring |
|
|
Partner promise scholarships |
Encouraging local government partner promise scholarship programs within the opportunity scholarship program. |
Del to Gov |
Bergquist |
High |
Support |
|
Secondary career education |
Reviewing state restrictions affecting students participating in secondary career and technical education programs and other state-approved career pathways. |
C 98 L 25 |
Connors |
Monitoring |
|
|
SSB 5253(SHB 1257) |
Special education services |
Extending special education services to students with disabilities until the end of the school year in which the student turns 22. |
Del to Gov |
Cortes |
High |
Support |
Special education funding |
Concerning special education funding. |
Del to Gov |
Pedersen |
High |
Support |
|
2SSB 5358(HB 1280) |
Career & tech. ed./6th grade |
Concerning career and technical education in sixth grade. |
C 134 L 25 |
Braun |
Medium |
Support |
SB 5682 (HB 1883) |
Employment training program |
Concerning the Washington customized employment training program. |
Del to Gov |
Warnick |
Monitoring |
|
Uncategorized Bills
No bills.
Bill Status Report
May 1, 2025