The 2023 legislative session is now more than one third complete and last week marked the first major cutoff. This year, members of the House have introduced 846 bills and members of the Senate have introduced 767 bills. Last Friday on Feb. 17, all bills needed to be voted out of their house of origin policy committee to stay alive this session–bills that have a financial cost to the state have a second hurdle and must pass out of their house of origin fiscal committees by Feb. 24 to stay alive. It is important to note that no issue is dead until the end of the biennium, as parts can be resurrected in various ways.
Some of the biggest priority issues this session include vehicular pursuits, the Blake Decision legislation, nurse staffing ratios and a myriad of housing bills that all saw action last week. On Feb. 13, the Senate Transportation Committee heard a governor-request bill promoting transit-oriented development. This legislation received strong support from builders, environmentalists and labor, with 551 people signing in pro and the Chamber’s Senior Vice President of Public Affairs and Communications Lars Erickson who testified in support.
Taxes
The House Finance committee heard a suite of tax bills on Feb. 14 including HB 1473, which would create a property tax on the ownership of stocks, bonds and other financial assets over $250 million.
The revenue generated would be dedicated to four funds:
- The Education Legacy Trust Fund, a dedicated account for early learning, K-12, and higher education
- The Housing Trust Fund, solely for construction of affordable housing
- A Disabilities Care Trust account that would support Washingtonians with disabilities
- A Taxpayer Justice account, that would offer credits against taxes paid by low and middle-income families
This bill attracted a lot of attention, with over 2,500 people signing in pro/con/other.
State Revenues
According to the Feb. 14 update from the Washington State Economic & Revenue Major General Fund-State revenues collected from Jan. 11 to Feb. 10, 2023, were 0.2% higher ($5.2 million) higher than previously forecasted in November. Cumulatively, collections are $88.6 million (1.1%) higher than forecasted. Following the March revenue forecast, the House and Senate will release their respective Operating, Capital and Transportation budget proposals. After the House and Senate release their proposals, negotiations will begin, and at that point, we will start to see a clearer picture of the next biennial budget.
Fiscal committees met over the weekend and will work late into the evenings this week to both hear and take action on bills before Friday’s fiscal policy cutoff.
Legislation to Watch
Employment Law
HB 1458 – Concerning unemployment insurance benefits for apprenticeship program participants
This legislation would extend unemployment benefits to apprenticeships. The bill was passed out of the House Labor and Workplace Standards Committee on Feb. 14.
This bill repeals the law prohibiting the Department of Labor and Industries from adopting rules related to ergonomics or musculoskeletal disorders. The bill passed out of the Senate Labor and Commerce Committee last week and has been referred to the Senate Rules Committee.
Taxes
HB 1670 – Raising the limit factor for property taxes
This bill was a recommendation from the State Tax Structure Work Group, which seeks to raise the limit factor for property taxes. HB 1670 was heard in the House Finance Committee on Feb. 20 and is scheduled for Executive Session on Feb. 22.
Housing Affordability and Homelessness
Gov. Jay Inslee has proposed the state raise $4 billion to build affordable housing by issuing bonds outside the state’s debt limit, which will require legislative and voter approval. The Senate version passed out of the Senate Housing Committee and has been referred to the Senate Ways and Means Committee.
This session the conversation surrounding housing supply and the “missing middle” has gained significant momentum. HB 1110/SB 5190 would require cities with a population of at least 6,000 or a city near an urban growth area with a population of more than 200,000 to increase density in residential areas historically dedicated to single-family detached housing. Executive action was taken on both the House and Senate bills last week and they have now been referred to their respective fiscal committee. The House version is expected to be the vehicle for this policy and executive action is scheduled in the House Finance Committee on Feb. 23.
The legislation prohibits, with certain exceptions, a landlord from: (1) engaging in predatory practices related to excessive rent increases; (2) differentiating treatment based on whether the tenancy is month-to-month or longer term; and (3) charging move-in fees and deposits that exceed one month’s rent before a tenant takes possession of a dwelling unit. The bill passed out of the House Housing Committee on Feb. 9 and was referred to Appropriations on Feb. 14.
This legislation aims to limit rent increases to reduce homelessness. Among other regulations the bill would prohibit a landlord from increasing the rent more than the CPI-U or 3%, whichever is greater, up to a maximum or 7%. The Department of Commerce is required to calculate and publish the maximum annual rent increase percentage. Although similar to HB 1388, HB 1389 would give landlords the ability to accrue rent increases over a period of time and apply them later. For example, if a landlord did not increase rent by 5% in 2023, they would be able to increase by 10% in 2024. The House bill passed out of the Housing Committee on Feb. 16 and is scheduled for executive action in the Appropriations committee on Feb. 24.
HB 1276/ SB 5235 – Concerning accessory dwelling units
This legislation would require cities and counties to allow ADUs but differs from HB 1337 in that it also allows homeowners to lease the ADUs as short term rentals. HB 1276 had a public hearing on Jan. 23 but has not yet been scheduled for executive action. The Senate bill had a public hearing on Jan. 26 and passed out of the Housing Committee on Feb. 10. The bill is now in the Senate Rules Committee awaiting further action.
Environment
HB 1505/ SB 5447 – Promoting the alternative jet fuel industry in Washington
The goal of this bipartisan legislation is to promote in-state use and deployment of sustainable aviation fuels through tax incentives and other tools. The House bill was heard last week. The Senate bill was passed out of the Senate Environment, Energy and Technology Committee last week and was referred to the Ways and Means Committee where executive action is scheduled for Feb. 24..
HB 1216/ SB 5380 – Concerning clean energy siting
This governor-request legislation would create an Interagency Clean Energy Siting Coordinating Council to be co-chaired by the Department of Ecology and the Department of Commerce. The purpose of the council would be to expedite permitting for clean energy projects. The bill would also establish a definition for clean energy projects “of statewide significance” and require SEPA review to be completed within two years. Both chambers passed these bills out of their respective policy committees last week.
What was once known as the RENEW Act has been rebranded as the Washington Recycling and Packaging Act or WRAP Act. This session the WRAP Act is sponsored by Rep. Liz Berry and Sen. Christine Rolfes. The WRAP Act has passed out of the House and Senate policy committees and will now head to fiscal committees for further consideration. HB 1131 is scheduled for Executive Action in the House Appropriations Committee on Feb. 23.
What’s Coming Up Next
This week, bills that passed the policy committees and have a fiscal impact to the state must pass out of their respective fiscal committees by Feb. 24 to stay alive. Bills that have passed out of the policy committee but have no or minimal fiscal impact will proceed from their house of origin-policy committee directly to the Rules committee where they remain until they are pulled to the floor for debate and vote. All bills must be voted out of their house of origin (House or Senate) by March 8. Bills that are deemed necessary to implement the budget, including all revenue proposals, are not subject to cutoff.
2023 Session Cutoff Calendar
January 9, 2023 – First Day of Session
February 17, 2023 – Policy Committee Cutoff
February 24, 2023 – Fiscal Committee Cutoff
March 8, 2023 – House of Origin Cutoff
March 29, 2023 – Policy Committee Cutoff – Opposite House
April 4, 2023 – Fiscal Committee Cutoff – Opposite House
April 12, 2023 – Opposite House Cutoff
April 23, 2023 – Sine Die
