Legislative Report

The state legislature kicked off its 2025 legislative session on Jan. 13. Last week policy committee chairs brought new members up to speed by hosting several work sessions on various topics while fiscal committees held hearings on the outgoing Governor’s proposed budget. There were also several committee hearings on key issues like rent stabilization and artificial intelligence.

This session legislators must pass an Operating, Capital and Transportation budget for the 2025-27 biennium. The biggest uncertainty facing the legislature this session is the projected $12-$16 billion deficit of the 4-year outlook.

More than 800 bills were introduced by Jan. 17. Next week committee hearings and work sessions will continue.

Workforce

Senate Bill 5041 seeks to extend unemployment benefits to employees involved in strikes and lockouts, remove certain disqualifications, and shift the financial responsibility for benefits to the employer involved in the labor dispute. The Chamber testified in opposition to the bill in a public hearing in the Senate Labor & Commerce Committee on Jan. 21.

House Bill 1181 seeks to reform labor standards by increasing the minimum wage to $25 per hour by 2031 and expanding labor protections for employees and transportation network company drivers. The bill includes provisions for paid leave, enforcement measures, and specific regulations for transportation network company drivers ensuring drivers receive fair compensation and benefits. This bill has been read, but not yet heard in committee.

House Bill 1155 seeks to prohibit noncompetition covenants and clarify the scope of nonsolicitation agreements. The bill aims to enhance workforce mobility and economic growth by declaring noncompetition agreements void and unenforceable. The bill was heard in the House Labor & Workplace Standards Committee on Jan. 15.

House Bill 1184 would exempt employees of qualifying nonprofits and small businesses from overtime requirements if they meet specific salary and duties-related criteria. The bill was heard in the House Labor & Workplace Standards Committee on January 15.

Housing

House Bill 1217 seeks to implement rent stabilization measures and tenant protections. The bill limits annual rent and fee increases to 7%, mandates notice requirements for rent increases and introduces tenant protections against excessive rent hikes. Additionally, it establishes penalties for violations, creates a landlord resource center, and mandates a social vulnerability assessment to evaluate the impacts of these measures. The Chamber signed in as opposed to the bill for its public hearing in the House Committee on Housing on Jan. 13. Executive action was taken on the bill on Jan. 20.

Senate Bill 5222 seeks to enhance tenant protections and housing stability by capping annual rent and fee increases at 7% under the Residential Landlord-Tenant Act and the Manufactured/Mobile Home Landlord-Tenant Act. The bill also mandates notice requirements for landlords, provides tenant protections against unlawful rent increases, and includes a provision for a social vulnerability assessment to evaluate the broader impacts of these changes. A public hearing is scheduled with the Senate Housing Committee on Jan. 22.

AI

House Bill 1168 mandates that developers of generative AI systems publicly disclose detailed information about the datasets used in training these systems. The bill was heard in the House Technology, Economic Development, & Veterans Committee on Jan. 17.

House Bill 1170 requires large AI providers to implement tools for identifying AI-generated content and mandates clear disclosures to inform users. The bill was heard in the House Technology, Economic Development, & Veterans Committee on Jan. 17.

Economic Development

House Bill 1406 proposes to standardize performance reporting for associate development organizations (ADOs) and increase funding flexibility. The bill adjusts funding levels for both urban and rural counties while allowing partial in-kind contributions for local matching requirements. These changes aim to streamline processes and enhance support for economic development efforts across Washington state.

Important Session Dates:

  • Feb. 21, 2025: House of Origin Policy Cutoff
  • Feb. 28, 2025: House of Origin Fiscal Cutoff
  • March 12, 2025: House of Origin Floor Cutoff
  • March 24, 2025: Opposite House Policy Cutoff
  • March 31, 2025: Opposite House Fiscal Cutoff
  • April 9, 2025: Opposite House Floor Cutoff
  • April 27, 2025: Last Day of Session

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