2025 Legislative Update: Week 7

Posted By: Lyset Cadena Olympia Update,

This last week was fiscal week, which meant there were long days - going into the evening - of hearings and executive sessions to move bills out of fiscal committees by house of origin fiscal cutoff on Friday, Feb 28th. The committee meetings are marathons, sometimes having over 30 bill hearings in one committee meeting. Lobbyists are often running back and forth between Senate Ways & Means and House Appropriations trying to catch when certain bills are up for a vote. Bills with a fiscal impact that didn’t pass out of committee by Friday are considered dead. The exception are bills deemed necessary to implement the budget (NTIB). Bills given this designation are not subject to the cutoff calendar. Some bills that die can also come back in the budget.

 

For those that like to keep track of the number of bills moving through the legislative process, below are the number of bills introduced, and the bills passed by each of the cutoffs we have crossed:

 

  • Bills Introduced so far in the 2025 session: 1,817
  • Bills Passed House of Origin Policy Cutoff: 1,154
  • Bills Passed House of Origin Fiscal Cutoff: 730

 

Frequently, bills heard in fiscal committees are amended to include two clauses – “null and void” or “subject to appropriation.” These clauses allow bills to proceed through the process but provide “escape hatches” if the policies put forward in the bill are not funded in the final adopted budget. Put another way, inclusion of these clauses makes implementation of the bill contingent upon budget funding. While these amendments are still being added onto bills this year, given the challenging budget landscape there is also a lot of work being done to whittle bills down to have a smaller fiscal impact rather than just moving it along with a null and void.

 

This coming week, focus will turn to the respective Senate and House floors as they work through all the bills approved by the fiscal and policy committees. The next legislative cutoff is Wednesday, March 12th at 5 p.m. with the deadline for bills to be voted out of their house of origin (e.g., House bills must be approved by the House, and Senate bills approved by the Senate). During floor time it is not unusual for one of the bodies to go late into the evening. Both chambers are anticipated to work this coming Saturday, and the House has a placeholder to potentially work Sunday. 


Budget

Inslee’s Book 1 Budget

On Monday, the House Democrats launched a new website, WA Budget Cuts, highlighting the all cuts/no revenue budget that former Governor Jay Inslee was required to prepare, called the “Book 1” Budget. This budget proposal relied only on existing law, and no new revenue, to balance the $12 billion budget deficit Washington state is facing. WA Budget Cuts highlights the largest of the possible cuts and provides a perspective on what these cuts would mean to communities across the state. For example, under the book 1 budget, over the next four years healthcare and public health programs are cut by $3.5 billion, and long-term care and funding for developmental disabilities programs would be reduced by $1.5 billion. Democrats have stated they are considering all proposed budget cuts and balancing those impacts against the need for revenue.

 

Governor Ferguson Budget Proposal

On Thursday, Governor Ferguson proposed a budget plan to save approximately $4 billion. The full list of Ferguson’s current proposals is available here for the supplemental budget, and here for the 2025-27 biennium.

 

The proposals aren’t full budgets, but do highlight items that Governor Ferguson is putting forward for consideration to be cut or eliminated. The proposal works from former Governor Inslee’s ‘book 2’ budget, which did include new revenue proposals, and was informed by the ‘budget reductions exercise’ turned in by state agencies on February 6th. It is important to keep in mind that some of the proposed “cuts” were reductions or eliminations of new investments that Inslee proposed in his book 2 budget and not cuts to existing maintenance level funding.

 

The Ferguson proposal maintained full funding for K-12 education and public safety. He also maintained investments in most housing and homelessness programs, current cash benefit assistance programs, and Medicaid. Governor Ferguson’s stated that his budget savings proposals are built on four key principles:

 

  1. Good government efficiencies and reductions.
  2. Pausing or phasing-in new spending.
  3. Scaling back recent spending decisions.
  4. Limiting replacement of one-time federal funding.

 

Governor Ferguson is also proposing $300 million in savings by requiring most state employees to take one furlough day per month for the next two years. Certain public employees will be exempt, including troopers patrolling roads and staff working in prisons and state hospitals.


Looking Ahead

This week will focus on floor action as bills are amended, debated, and ultimately voted on by the full chamber (House or Senate) ahead of the March 12th house of origin floor cutoff. Follow where we are in the process by consulting the 2025 Session Cutoff Calendar.

 

Click here to watch this week’s TVW Legislative Review. Episodes are posted every day during session and are just 10 minutes long, providing highlights of the day in Olympia.


 Bill Status Report

Bill #

Abbrev. Title

Short Description

Status

Sponsor

HB 1004

Property tax exemption

Increasing the personal property tax exemption.

H Rules R

Leavitt

SHB 1015

Energy labeling/residential

Concerning energy labeling of residential buildings.

H Rules R

Duerr

HB 1016

Veterans/employer incentives

Providing employer tax incentives for the support of veterans and military families.

H Finance

Abbarno

HB 1040

Rental income/property tax

Concerning rental income received by people eligible for certain property tax exemption programs.

H Rules R

Doglio

HB 1095

Law enforcement funding

Incentivizing cities and counties to attract and retain commissioned law enforcement officers.

H Finance

Walen

2SHB 1096

Lot splitting

Increasing housing options through lot splitting.

H Rules R

Barkis

SHB 1135

Local government planning

Ensuring that local government planning complies with the growth management act.

H 2nd Reading

Duerr

SHB 1155 (SB 5437)

Noncompetition agreements

Prohibiting noncompetition agreements and clarifying nonsolicitation agreements.

H Rules R

Berry

SHB 1160

Local gov. design review

Concerning local government design review.

H 2nd Reading

Walen

HB 1165

Property tax exemptions

Expanding access to the property tax exemption program for seniors, people retired due to disability, and veterans with disabilities.

H Finance

Shavers

2SHB 1175

Small businesses/residential

Allowing small business establishments in residential zones.

H APPDP2S

Klicker

2SHB 1183

Building codes

Concerning building code and development regulation reform.

H APPDP2S

Duerr

2SHB 1195 (SB 5497)

Housing & shelters

Concerning compliance with siting, development permit processes and standards, and requirements for permanent supportive housing, transitional housing, indoor emergency housing, or indoor emergency shelters.

H Rules R

Peterson

HB 1197 (SB 5166)

Operating budget, supp.

Making 2023-2025 fiscal biennium second supplemental operating appropriations.

H Approps

Ormsby

HB 1198 (SB 5167)

Operating budget

Making 2025-2027 fiscal biennium operating appropriations.

H Approps

Ormsby

HB 1202 (SB 5194)

State gen. obligation bonds

Concerning state general obligation bonds and related accounts.

H Cap Budget

Tharinger

2SHB 1213 (SB 5539)

Paid family & medical leave

Expanding protections for workers in the state paid family and medical leave program.

H Rules R

Berry

HB 1214 (SSB 5768)

Working families' tax credit

Expanding eligibility for the working families' tax credit to everyone age 18 and older.

H Finance

Thai

2SHB 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.

H Rules R

Alvarado

HB 1224

Working families' tax credit

Modifying the working families' tax credit by enhancing collection services and increasing participation rates through data-sharing agreements.

H Finance

Thai

HB 1226 (SB 5160)

Transportation budget, supp.

Making supplemental transportation appropriations for the 2023-2025 fiscal biennium.

H Transportation

Fey

HB 1227 (SB 5161)

Transportation budget

Making transportation appropriations for the 2025-2027 fiscal biennium.

H Transportation

Fey

HB 1235 (2SSB 5148)

GMA housing element

Ensuring compliance with the housing element requirements of the growth management act.

H Housing

Peterson

HB 1284

Investmnt income B&O deduct.

Eliminating the investment income business and occupation tax deduction for corporations and other business entities.

H Finance

Pollet

2SHB 1303 (SB 5380)

Environmental justice

Increasing environmental justice by improving government decisions.

H APPDP2S

Mena

HB 1319

Wealth tax

Enacting a wealth tax on the ownership of stocks, bonds, and other financial intangible property.

H Finance

Street

HB 1320

Business & occupation tax

Modifying business and occupation tax rates to fund programs and services to benefit Washingtonians.

H Finance

Street

HB 1324 (SB 5550)

Transportation funding/CCA

Funding the state transportation system using climate commitment act revenues.

H Transportation

Barkis

SHB 1332

Transp. network companies

Concerning transportation network companies.

H Rules R

Obras

HB 1334

Property tax revenue growth

Modifying the annual regular property tax revenue growth limit.

H Finance

Pollet

SHB 1353

ADU self-certification

Establishing a self-certification program for accessory dwelling unit project permit applications.

H 2nd Reading

Ramel

SHB 1380

Public property regulations

Allowing objectively reasonable regulation of the utilization of public property.

H Rules R

Gregerson

SHB 1385

Background checks

Concerning fingerprint background check on applicants.

H 2nd Reading

Taylor

HB 1403

Condominium construction

Simplifying condominium construction statutes.

H Rules R

Taylor

2SHB 1409

Clean fuels program

Concerning the clean fuels program.

H Rules R

Fitzgibbon

HB 1435 (2SSB 5060)

Law enf. hiring grants

Creating a law enforcement hiring grant program.

H Approps

Abell

HB 1436 (SB 5285)

Law enf. officers/increase

Incentivizing cities and counties to increase employment of commissioned law enforcement officers.

H Finance

Abell

2SHB 1443 (SSB 5332)

Mobile dwellings

Concerning mobile dwellings.

H APPDP2S

Gregerson

HB 1468 (SB 5441)

Accounts

Concerning accounts.

H Approps

Macri

HB 1471 (SB 5392)

BSA transfers

Concerning budget stabilization account transfers.

H Approps

Ormsby

SHB 1473

Wildfire BSA appropriations

Making expenditures from the budget stabilization account for declared catastrophic events.

H Rules R

Gregerson

HB 1480

Affordable housing REET

Allowing all counties to impose a real estate excise tax for the purpose of developing affordable housing, subject to the will of the voters.

H Finance

Ramel

3SHB 1491

Transit-oriented housing dev

Promoting transit-oriented housing development.

H APPDP3S

Reed

HB 1494

Multiple-unit dwellings/tax

Concerning the property tax exemptions for new and rehabilitated multiple-unit dwellings in urban centers.

H Rules R

Ramel

SHB 1500

CIC resale certificates

Concerning resale certificates for units in common interest communities.

H Rules R

Reed

HB 1501

CIC unit owner inquiries

Concerning inquiries into association governance or operations by unit owners in common interest communities.

H Rules R

Reed

2SHB 1516

Insurance/affordable units

Conducting a study of insurance coverage options for permanently affordable homeownership units.

H APPDP2S

Hill

SHB 1543 (SSB 5514)

Clean buildings standard

Increasing compliance pathways for the clean buildings performance standard.

S Environment, En

Doglio

SHB 1576

Historic landmarks/cities

Concerning the designation of historic landmarks by cities.

H Rules R

Walen

HB 1582 (SSB 5655)

Child care centers/buildings

Concerning child care centers operated in existing buildings.

H Rules R

Caldier

2SHB 1614 (SSB 5314)

Capital gains tax

Modifying the capital gains tax.

H APPDP2S

Thai

HB 1622 (SSB 5422)

Collective bargaining/AI use

Allowing bargaining over matters related to the use of artificial intelligence.

H Rules R

Parshley

HB 1665

Capital gains tax repeal

Repealing the capital gains income tax.

H Finance

Dufault

HB 1666

Estate tax repeal

Repealing the estate tax.

H Finance

Dufault

SHB 1671

Personal data privacy

Protecting personal data privacy.

H Approps

Kloba

HB 1687

Social housing authorities

Concerning social housing public development authorities.

H Rules R

Reed

HB 1717 (SB 5591)

Affordable housing/sales tax

Creating a sales and use tax remittance program for affordable housing.

H Approps

Leavitt

HB 1757

Residential use/existing

Modifying regulations for existing buildings used for residential purposes.

H Rules R

Walen

HB 1785

Excessive executive comp.

Imposing a surcharge on publicly traded companies providing excessive executive compensation.

H Finance

Doglio

SHB 1791

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.

H Rules R

Paul

HB 1805

Children services/local tax

Creating a local sales and use tax to fund services for children and families that enhance well-being, promote mental health, and provide early interventions.

H Rules R

Tharinger

SHB 1808

Homeownership revolving loan

Creating an affordable homeownership revolving loan fund program.

H Cap Budget

Zahn

SHB 1811

Crisis co-response

Enhancing crisis response services through co-response integration and support.

H 2nd Reading

Salahuddin

HB 1858

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.

H Rules R

Scott

SHB 1867

Affordable housing REET

Allowing counties or cities to impose a real estate excise tax for the purpose of developing affordable housing, subject to the will of the voters.

H Rules R

Ramel

HB 1870 (SB 5709)

Public health clinics/tax

Concerning county property tax levies for public health clinic purposes.

H Rules R

Zahn

HB 1882

State tax on lodging

Imposing an additional temporary state tax on lodging.

H Finance

Cortes

HB 1895

Educational assist./B&O tax

Establishing a business and occupation tax credit for small business employers providing educational assistance to employees.

H Finance

Richards

SHB 1899

Homelessness point-in-time

Concerning the homelessness point-in-time count.

H 2nd Reading

Zahn

HB 1907 (SB 5711)

Self-service storage/tax

Defining the rental or lease of individual storage space at self-service storage facilities as a retail transaction for the imposition of business and occupation and sales and use taxes.

H Finance

Peterson

HB 1913

Public utility tax credit

Repealing the public utility tax credit for home energy assistance.

H Rules R

Berg

HB 1921 (SB 5726)

Transportation revenue

Establishing new sources of transportation revenue based on motor vehicle use of public roadways.

H Transportation

Fey

HB 1924 (SB 5673)

Manufacturing/sales tax

Providing a sales and use tax exemption for manufacturing facilities and green manufacturing facilities.

H Finance

Fey

HB 1934

Employment investigation/PRA

Concerning the disclosure of information pertaining to complainants, accusers, and witnesses in an employment investigation.

H 2nd Reading

Chase

SHB 1935

Project permit definition

Concerning the definition of project permit and project permit application.

H Rules R

Duerr

SHB 1967

Design-build projects/bonds

Modifying bonding requirements in the design portion of design-build public works projects.

H Rules R

Zahn

2SHB 1975

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.

H APPDP2S

Fitzgibbon

HB 1983

Timberland definition/REET

Amending the definition of timberland for purposes of determining the real estate excise tax for a governmental entity.

H Rules R

Tharinger

HB 1986

Vehicles for rental/tax

Concerning the application of taxes to sales of motor vehicles for use in retail car rentals.

H Finance

Street

HB 1993

Child care providers/B&O tax

Exempting child care providers from the business and occupation tax.

H Finance

Waters

SHB 1996

Behavioral health diversion

Authorizing a qualified county to impose a tax for the funding of behavioral health diversion from the criminal justice system.

H Rules R

Farivar

HB 1998 (SB 5774)

Investment income/B&O tax

Clarifying the scope of the investment income business and occupation tax deduction.

H Finance

Walen

HB 2009

Controlling interest/REET

Clarifying the calculation of the real estate excise tax for the transfer of a controlling interest in an entity holding real property.

H Finance

Salahuddin

SHB 2015

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.

H APPDPS

Entenman

HB 2019

Estate tax

Making the estate tax more progressive.

H Finance

Street

HB 2023

Investment income taxation

Establishing a work group to study the taxation of investment income under RCW 82.04.4281.

H Finance

Berg

HB 2024 (SSB 5770)

Primary residence/tax

Providing housing safety, security, and protection by creating the primary residence property tax exemption.

H Finance

Berg

HB 2025 (SSB 5771)

WFTC increase/tenants

Increasing the working families' tax credit to reflect the economic impact of property taxes incorporated into rental amounts charged to residential tenants.

H Finance

Berg

HB 2027

Housing/taxes

Increasing the supply of affordable and workforce housing.

H Finance

Berg

HJR 4204 (SJR 8203)

Principal residence/tax

Amending the Constitution to allow for a property tax exemption for a principal place of residence.

H Finance

Berg

SB 5036

Statewide emissions data

Strengthening Washington's leadership and accountability on climate policy by transitioning to annual reporting of statewide emissions data.

S Rules 2

Boehnke

SSB 5040 (HB 1045)

Uniformed personnel

Expanding the definition of uniformed personnel to all law enforcement officers employed by a city, town, or county.

H Labor & Workpla

Stanford

SSB 5041

Unemp ins/strikes & lockouts

Concerning unemployment insurance benefits for striking or lockout workers.

S Rules 2

Riccelli

2SSB 5060 (HB 1435)

Law enforcement personnel

Creating a law enforcement hiring grant program.

S Rules 2

Holy

ESSB 5129

Common interest communities

Concerning common interest communities.

H Civil R & Judi

Pedersen

2SSB 5148 (HB 1235)

GMA housing element

Ensuring compliance with the housing element requirements of the growth management act.

S Rules 2

Bateman

SSB 5156

Elevators/smaller apartments

Concerning elevator standards in smaller apartment buildings.

H Housing

Salomon

SB 5160 (HB 1226)

Transportation budget, supp.

Making supplemental transportation appropriations for the 2023-2025 fiscal biennium.

S Transportation

Liias

SB 5161 (HB 1227)

Transportation budget

Making transportation appropriations for the 2025-2027 fiscal biennium.

S Transportation

Liias

SB 5166 (HB 1197)

Operating budget, supp.

Making 2023-2025 fiscal biennium second supplemental operating appropriations.

S Ways & Means

Robinson

SB 5167 (HB 1198)

Operating budget

Making 2025-2027 fiscal biennium operating appropriations.

S Ways & Means

Robinson

ESSB 5184 (HB 1299)

Minimum parking requirements

Concerning minimum parking requirements.

H Local Govt

Bateman

SSB 5292

Family & medical leave rates

Concerning paid family and medical leave rates.

S Rules 2

Conway

ESB 5313

Rental agreement provisions

Adding to the list of provisions prohibited from rental agreements.

H Housing

Pedersen

SSB 5314 (2SHB 1614)

Capital gains tax

Modifying the capital gains tax.

S 2nd Reading

Stanford

SSB 5360

Environmental crimes

Concerning environmental crimes.

S 2nd Reading

Trudeau

SSB 5374

Transportation/tribal rep.

Including tribal representation in certain transportation activities.

S Rules 2

Kauffman

SB 5392 (HB 1471)

BSA transfers

Concerning budget stabilization account transfers.

S Ways & Means

Robinson

SSB 5469

Rental housing market

Prohibiting algorithmic rent fixing and noncompete agreements in the rental housing market.

S Rules 2

Salomon

2SSB 5496 (HB 1732)

Home buying by entities

Preserving homeownership options by limiting excessive home buying by certain entities.

S Rules 2

Alvarado

SSB 5501

Employee driving requirement

Concerning employer requirements for driving.

H Labor & Workpla

Stanford

SSB 5509 (SHB 1212)

Child care center siting

Concerning the siting of child care centers.

S Rules 2

Alvarado

SSB 5528

Transp. electrification

Concerning the installation of transportation electrification infrastructure.

H Labor & Workpla

Liias

SB 5550 (HB 1324)

Transportation funding/CCA

Funding the state transportation system using climate commitment act revenues.

S Transportation

MacEwen

SB 5554

Historic landmark desig.

Concerning historic landmark designations.

S 2nd Reading

Salomon

SSB 5558

Growth management plans

Concerning growth management comprehensive plans.

S Rules 2

Goehner

ESB 5559

UGA subdivision process

Streamlining the subdivision process inside urban growth areas.

S Passed 3rd

Lovelett

SSB 5576 (HB 1763)

Affordable housing funding

Providing state funding for essential affordable housing programs.

S Rules 2

Lovelett

SSB 5611

Land use permitting workload

Streamlining and clarifying local governments' land use permitting workloads.

S Rules 2

Salomon

2SSB 5613

Residential development

Concerning the development of clear and objective standards, conditions, and procedures for residential development.

S Rules 2

Salomon

SSB 5614

Impact fees

Concerning impact fees.

S Rules 2

Salomon

SB 5645

Estate tax/extraordinary rev

Transferring extraordinary revenue collections from the estate tax to the developmental disabilities community services account.

S Ways & Means

Braun

SB 5647

Affordable housing/REET

Providing a real estate excise tax exemption for the sale of qualified affordable housing.

S Rules 2

Alvarado

SB 5649 (HB 1860)

Supply chain competitiveness

Creating a Washington state supply chain competitiveness infrastructure program.

S Rules 2

Liias

SSB 5655 (HB 1582)

Child care centers/buildings

Concerning child care centers operated in existing buildings.

H EL & Human Svc

Krishnadasan

SB 5659

Housing shortage/local share

Eliminating each local government's proportional share of Washington's housing shortage.

S Rules 2

Goehner

SB 5662

Utility connection charges

Concerning the waiver of municipal utility connection charges for certain properties.

S Rules 2

Riccelli

SB 5673 (HB 1924)

Manufacturing/sales tax

Providing a sales and use tax exemption for manufacturing facilities and green manufacturing facilities.

S Ways & Means

Boehnke

SSB 5690

Utility relocation

Concerning utility relocation.

S Rules 2

MacEwen

SB 5702

Toll rate setting process

Streamlining the toll rate setting process at the transportation commission.

S Rules 2

Ramos

SB 5705

Traffic infraction penalties

Improving traffic safety by modifying penalty amounts for certain traffic infractions.

S Rules 2

Liias

SB 5709 (HB 1870)

Public health clinics/tax

Concerning county property tax levies for public health clinic purposes.

S Ways & Means

Alvarado

SB 5711 (HB 1907)

Self-service storage/tax

Defining the rental or lease of individual storage space at self-service storage facilities as a retail transaction for the imposition of business and occupation and sales and use taxes.

S Ways & Means

Bateman

SSB 5719

Local gov. hearing examiners

Concerning local government hearing examiners.

S Rules 2

Salomon

SB 5726 (HB 1921)

Transportation revenue

Establishing new sources of transportation revenue based on motor vehicle use of public roadways.

S Transportation

Ramos

SB 5729

Housing permitting

Encouraging construction of affordable housing by streamlining the permitting process.

S 2nd Reading

Gildon

SB 5748

Impact fees

Incentivizing the substantial reduction or elimination of impact fees.

S Ways & Means

Wilson

SSB 5749

Housing opportunity zones

Concerning housing development opportunity zones.

S Rules 2

Wilson

SB 5766

Passive investment vehicles

Clarifying the business and occupation tax treatment of the investment income of passive investment vehicles managed by a person subject to business and occupation tax under RCW 82.04.290(1).

S Ways & Means

Liias

SSB 5768 (HB 1214)

Working families' tax credit

Expanding eligibility for the working families' tax credit to everyone age 18 and older.

S Rules 2

Saldana

SSB 5770 (HB 2024)

Primary residence/tax

Providing housing safety, security, and protection by creating the primary residence property tax exemption.

S Rules 2

Robinson

SSB 5771 (HB 2025)

WFTC increase/tenants

Increasing the working families' tax credit to reflect the economic impact of property taxes incorporated into rental amounts charged to residential tenants.

S Rules 2

Robinson

SSB 5773

Transportation procurement

Concerning alternative procurement and delivery models for transportation projects.

S Rules 2

Liias

SB 5774 (HB 1998)

Investment income/B&O tax

Clarifying the scope of the investment income business and occupation tax deduction.

S Ways & Means

Torres

SB 5775

Public safety/local tax

Expanding local taxing authority to fund public safety and community protection focused programs and services.

S Rules 2

Slatter

SJR 8201

Investment/LTSS accounts

Amending the Constitution to allow the state to invest moneys from long-term services and supports accounts.

S Rules 2

Braun

SJR 8203 (HJR 4204)

Principal residence/tax

Amending the Constitution to allow for a property tax exemption for a principal place of residence.

S Rules 2

Robinson


Stay tuned for next week's update!