Legislative Report
By Boswell Consulting
Only one week remains of the 2025 legislative session. April 16 was the last day for the House and Senate to vote on bills that came over from the other chamber. Bills that are considered necessary to implement the budget, including all revenue proposals, are exempt from cutoffs. Bills that were passed by the opposite chamber without any amendments head directly to the Governor’s desk to be signed into law. However, if changes were made by the other body, then they need to go through a process called concurrence. This process began on April 17, when the House and Senate started reconciling changes made to bills in the opposite chamber. High-profile bills that passed but will need to move through the concurrence process include rent stabilization (House Bill 1217) and unemployment for striking workers (Senate Bill 5041). Both bills passed with controversial amendments so it is unclear how those changes will be reconciled.
All bills that do not pass this session will automatically be reintroduced next session.
To see a full list of bills that have already passed the legislature and have been signed by the Governor, click here.
Tax and Revenue Update
On April 15, House and Senate Democrats released a new $12 billion tax package that relies on an increase in capital gains and estate taxes, increased business and occupation tax rates, new sales taxes on certain services, expanded tax on nicotine products, an increase in surcharges for some companies, and a one-time prepayment of sales tax for some big businesses. We’ve attached a summary of the new tax proposals for your reference. This new package of tax bills comes after Gov. Ferguson indicated that he would not sign a budget that relies on a broad, untested wealth tax. The bills were heard April 16 in the Senate Ways and Means Committee and April 18 in the House Finance Committee. On April 17, Gov. Ferguson released a statement in response to the new tax package, where he said Washington needs a balanced approach and that $12 billion in new taxes is unsustainable.
While most of the focus has been on revenue proposals to fund the operating budget, there continues to be momentum around a transportation package. The package is likely to be funded by a gas tax increase and other fee increases. In its last week, the legislature will continue to reconcile differences on bills passed by the opposite chamber and work on legislation that is necessary to implement the budget. In the final days of session, House and Senate Budget writers will release the final 2025-27 Operating, Capital and Transportation budgets, which must be passed by the full legislature before Sine Die, which is scheduled for April 27.
Please see below for key insights from week 14:
Employment Law
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. Engrossed Substitute Senate Bill 5041 amends unemployment insurance laws to allow certain employees involved in labor strikes to qualify for unemployment benefits under specific conditions, including removing disqualifications for strike-related unemployment, establishing mechanisms for recovering overpayments, and assigning financial responsibility for benefits to the separating employer. The bill also mandates annual reporting on the impact of strikes and ensures compliance with federal requirements. The provisions are temporary, with a sunset date of Dec. 31, 2035. After passing out of the House, 52-43, on April 12, it will now return to the Senate for concurrence. The Seattle Metro Chamber will continue to work with the employer community to ask the Senate to concur with the changes made to the bill in the House.
House Bill 1213 focuses on expanding employee protections and clarifying employer responsibilities under Washington’s Paid Family and Medical Leave program, with an effective date of Jan. 1, 2026. House Bill 1213 passed the House on April 19 with a vote of 57-38, following Senate amendments adopted on April 15. Amendments to the bill include requiring the Employment Security Department to inform employers about the availability of grants for smaller employers, eliminating grants related to health care costs for employers with fewer than 50 employees, and phasing in employment protection for employees on paid family and medical leave based on employer size thresholds from 2026 to 2028, contingent on the employee having worked at least 180 days prior to taking leave.
Housing
House Bill 1217 caps rent increases, establishes stricter notice requirements, limits fees and deposits, and provides enforcement mechanisms for tenants while mandating a study on the social impacts of rent stabilization. It includes an emergency clause for immediate effect upon passage. There were several amendments adopted on the Senate floor that are controversial, including one that would increase the annual cap on rent increases from 7% to 10% plus the consumer price index. The Seattle Metro Chamber is asking the House to concur with the changes made to the bill in the Senate..
House Bill 1491 mandates higher-density, transit-oriented development, requiring cities to adopt regulations that facilitate multifamily housing and mixed-use projects in designated station areas. The bill was amended to redefine major transit stops, require cities to allow increased density and height for mass timber developments, modify affordability requirements and exemptions, clarify multifamily tax exemption provisions, mandate long-term affordability covenants, reduce impact fees for qualifying projects, and make technical adjustments. On April 15, the Senate adopted floor amendments and passed the bill in its third reading. It will now return to the House for concurrence.
House Bill 1494 refines property tax exemption criteria for multi-unit housing to prioritize affordability and anti-displacement measures. The bill updates definitions, eligibility, and administrative processes, emphasizing affordability requirements, transit proximity, and compliance mechanisms for local governments and property owners. The bill passed the Senate on April 15 and will now be delivered to the Governor’s desk.
Economic Development
Senate Bill 5492 establishes an advisory group to evaluate the feasibility of an industry-funded, self-supported assessment for statewide tourism promotion. The bill is now awaiting final signature by Gov. Bob Ferguson.
House Bill 1515 seeks to expand alcohol service options in public spaces and civic campuses, including shared outdoor and indoor service areas and a new license for nonprofit organizations to serve alcohol at community events. The bill modernizes the regulation of alcohol service, with provisions for expanded outdoor alcohol service in designated areas through Dec. 31, 2026, expanded service on publicly owned civic campuses for events through Dec. 31, 2027, and special allowances for international sports events in June and July 2026. On April 16, the Senate adopted committee amendments with no further changes, and the bill passed. It will now return to the House for concurrence.
Important Session Dates
- April 27, 2025: Last Day of Session
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