WAWG State Legislative Report, week 5

By Diana Carlen
Lobbyist, Washington Association of Wheat Growers

The Legislature has completed its fifth week of the session. On Feb. 9, legislators reached the second major deadline of session which was the fiscal cutoff date. Bills with a fiscal impact had to pass out of the respective budget and transportation committees by that deadline unless they are “Necessary to Implement the Budget,” which are not subject to legislative deadlines.

Starting Feb. 10, legislators focused their time in caucus meetings or on the floor of their chamber debating bills and taking votes. The next major legislative deadline is Feb. 17 at 5 p.m., which is the House of Origin cutoff, the last day to consider bills in the chamber of origin. To be considered alive, House bills must be voted off the House floor and sent to a Senate committee, and Senate bills must be voted off the Senate floor and sent to a House committee. After the cutoff on Feb. 17, legislators will return to policy committees to hear bills from the opposite chamber.

Notable Action This Past Week:

  • Extending Collecting Bargaining Rights Not Covered by NLRB (ESHB 2471) would extend collective bargaining rights for employees not covered by the national labor relations act, including agricultural employees, domestic workers, and some small businesses. The policy committee passed out a substitute version of the bill that states that the bill applies the bill to employers, employees, trades, or industries that were already subject to federal labor law regulation and only if the conditions listed in the bill are triggered (if federal law no longer preempts state regulation or the NLRB declines or loses jurisdiction). The bill passed out of the House on Feb. 13 by a vote of 58-13. A floor amendment was adopted that agriculture sought which clarifies that this bill does not impact agriculture.
  • Extending Collective Bargaining Rights to Agricultural Workers (Substitute Senate Bill 6045) would apply collective bargaining rights just to farmworkers. The bill is currently on the Senate floor calendar and eligible for a vote of the full Senate at any time. Agriculture is united in opposing this legislation because of the fragile agricultural economy and the uniqueness of the industry.
  • Fuel Emissions Compliance Thresholds (Second Substitute House Bill 2215), sponsored by Rep. Joe Fitzgibbon (D-West Seattle), lowers the threshold for fuel suppliers that began importing and selling fossil fuels after Jan. 1, 2023 (the date the state’s cap and trade law went into effect), to 500 metric tons, bringing additional gasoline, diesel, biodiesel, and propane suppliers into the cap-and-invest program and tightening greenhouse gas reporting and transparency requirements. Distributors operating before the Climate Commitment Act remain at the current threshold of 25,000 metric tons per year before being regulated under the CCA. An amendment to House Bill 2215 was adopted in the House Appropriations Committee to exempt emissions from the combustion, oxidation, or other end use of lubricants from Climate Commitment Act compliance obligations beginning Jan. 1, 2027. This was a priority for the agricultural community and will provide some relief to farmers when purchasing lubricants beginning in 2027. The bill passed out of the House on Feb. 12 by a vote of 57-38. The bill is scheduled for a hearing in the Senate Environment, Energy & Technology Committee on Feb. 18.
  • Hazardous Substance Tax Exemption Extension (Senate Bill 6244), sponsored by Sen. Nikki Torres (R-Pasco), extends the existing hazardous substance tax exemption for qualifying agricultural crop protection products that are temporarily warehoused but not otherwise used, manufactured, packaged, or sold in the state of Washington. The bill extends the scheduled sunset from 2028 to 2038. Senate Bill 6244 passed out of the Senate Ways & Means Committee on Feb. 9. The bill is currently on the Senate floor calendar.
  • Small Farm Equipment Tax Exemption (House Bill 2584), sponsored by Rep. Tom Dent (R-Moses Lake), creates a temporary sales and use tax exemption for high‑value farm machinery and equipment purchased and used directly in production by agricultural producers with no more than $2,000,000 in prior‑year gross farm income, aggregated with affiliates. The exemption, limited to one qualifying purchase per producer per year and subject to documentation and later performance review by the Joint Legislative Audit and Review Committee, applies to qualifying farm machinery and equipment with a sales price of $10,000 or more used directly in crop production, applies to sales and uses on or after Oct. 1, 2026, and expires Oct. 1, 2036. House Bill 2584 passed out of the House Finance Committee unanimously on Feb. 5. The bill is currently in the House Rules Committee.
  • Green Fertilizer Incentives (Senate Bill 5971), sponsored Sen. Matt Boehnke (R-Kennewick), creates a new Department of Agriculture incentive program to support in-state production and on-farm use of low-carbon “green” nitrogen fertilizers that achieve at least an 80% reduction in life-cycle greenhouse gas emissions compared to conventional natural gas-based products. The bill authorizes price-based rebates to farmers, production and performance incentives for manufacturers and distributors, and related equipment and training grants, to be funded in whole or in part from appropriations from Climate Commitment Act accounts and other sources, with rules due by July 1, 2028, and a program design report to the governor and Legislature by Dec. 1, 2027. The bill is brought by Atlas Grow who is developing a $1.5 billion green fertilizer plant in Richland. The bill passed out of the Senate unanimously on Feb. 13.
  • EITE Treatment under CCA: (Engrossed Senate Bill 6246), directs the Department of Ecology to provide recommendations to the Legislature regarding no-cost allowance allocation to Emissions-Intensive, Trade-Exposed (EITE) facilities (i.e. such as food processors) in the Cap-and-Invest Program between 2035-2050. The revised bill no longer conditions the receipt of no-cost allowances to EITEs based upon submission of EITE plans. In addition, the onerous, expensive reporting elements in the earlier versions of the bill have been deleted. Instead, the bill now requires the owner or operator of an EITE facility, by December 2028 and then quadrenially, to provide information to Ecology regarding facility-specific greenhouse gas (GHG) emissions and an assessment of technically and economically feasible measures to reduce GHG emissions at each facility.
  • Medicaid Employer Assessment (SB 6173), sponsored by Sen. Emily Alvarado (D-West Seattle), establishes a new “Apple Health employer assessment” on large employers (those with more than 100 employees) whose employees (those who work 80 or more hours per month) are concurrently enrolled in Apple Health (Washington state’s Medicaid plan). The Apple Health Employer Assessment would equal the total member months for an AHE during the previous calendar year multiplied by 100% of the Medicaid Fair Share Capitation Rate. It is estimated this would be $700 a month for each employee on Medicaid. The prime sponsor has made it clear that employer health insurance benefits will not come into consideration. If a qualified individual is on Medicaid, the employer should pay the state back even if the employer provides health care benefits to the employee. Business groups are working on amendments. One such amendment is to exclude seasonal or short-term employees from the assessment. Another amendment is to ensure employers have an appeal opportunity before paying the assessment. This bill is not subject to legislative deadlines because it has a fiscal impact and is necessary to implement the budget. The bill is scheduled to be voted out of the Senate Ways & Means Committee on Feb. 19.
  • Immigrant Worker Protection Act (SHB 2105), sponsored by Rep. Lillian Ortiz-Self (D-Mukilteo), is attorney general request legislation. It would require an employer, beginning Oct. 1, 2026, to notify its workers within 72 hours of receiving a federal Notice of Inspection of Employment Eligibility Verification Forms I-9 (Forms I-9). The notice of the NOI must be posted in conspicuous places on the premises of the employer where notices to workers are customarily posted. The employer must also transmit the notice directly to workers using the primary method of communication typically used by the employer, which must include at least one of the following: hand delivery to the worker; mail with proof of delivery; email with proof of transmission; or text message sent telephonically, which may include a link to a notice maintained on a web page, with proof of transmission. The bill authorizes both the Attorney General and private parties to concurrently enforce these protections through civil actions with escalating statutory damages. SHB 2105 passed out of the House on Feb. 13 by a vote of 56-38. The business community continues to have concerns about the enforcement provisions in the legislation, including the private right of action.
  • Tire Chemical Restrictions / 6PPD Tire Regulation Framework (Second Substitute House Bill 2421), sponsored by Rep. Zach Hall (D-Issaquah), prohibits 6PPD and regrettable 6PPD substitutes in vehicle tires, beginning Jan. 1, 2035.create a comprehensive framework to phase out the manufacture, sale, and distribution of new vehicle tires containing 6PPD or certain regrettable substitutes by 2035. The bill is currently in the House Rules Committee.
  • Agricultural Regulatory Reform Task Force (House Bill 2619), sponsored by Rep. Tom Dent (R-Moses Lake), creates a temporary joint legislative task force to identify and recommend ways to streamline, eliminate, or modify existing regulations that contribute to stress for agricultural producers, particularly in land use, water, grazing, and pesticide oversight. The task force, composed of bipartisan legislators and key agency representatives, must report its findings and recommendations to the Legislature by Nov. 1, 2028, and expires June 30, 2029. House Bill 2619 is currently in the House Rules Committee.
  • Statewide Food Security Coordination (HB 2238), sponsored by Rep. Kristine Reeves (D-Federal Way), expands the Department of Agriculture’s statutory responsibilities to monitor overall food system performance and coordinate statewide food security efforts across agencies, tribes, nonprofits, research institutions, and industry experts. The bill also directs the department to develop and deliver by Dec. 1, 2027, a time-limited, statewide food security strategy focused on ending hunger, improving nutrition and health equity, and strengthening agricultural viability and supply chain resilience, with these new planning provisions expiring July 1, 2028. WAWG supports this bill. The bill passed the House by a vote of 83-12 on Feb. 10. It is scheduled for a hearing in the Senate Agriculture & Natural Resources Committee on Feb. 19.

Notable Bills That Failed to Pass Out of Fiscal Committees Before Deadline:

  • Washington Farmers Feeding Families Act (HB 2463), sponsored by Rep. Kristine Reeves (D-Federal Way), expands and renames the state’s existing agricultural donation grant framework and creates a new farm-to-food-pantry program to better connect Washington farmers with hunger relief organizations. The bill prioritizes acquisition of surplus Washington-grown farm products at risk of becoming food waste, allows nonprofits to compensate producers for pick-and-pack, production, harvest, and logistics costs, emphasizes equitable participation by diverse and small-scale farmers, and authorizes rulemaking and reporting requirements to improve program accountability. The bill did not receive a hearing in the House Appropriations Committee.
  • Washington Local Food for Schools Program (HB 2369), sponsored by Rep. Kristine Reeves (D-Federal Way), establishes the Washington Local Food for Schools Program within the Office of the Superintendent of Public Instruction to expand voluntary procurement of Washington-grown foods for K-12 meals using existing federal child nutrition and USDA Foods systems, subject to appropriation. The bill formalizes interagency collaboration with the Departments of Agriculture, Enterprise Services, and Health, and Washington State University to streamline purchasing, aggregation, and distribution, provide technical assistance to schools and producers, and leverage federal and private funding to support local agriculture and improve school meal quality. The bill did not receive a hearing in the House Appropriations Committee.
  • County B&O Tax Authorization (HB 2097), sponsored by Rep. Shaun Scott (D-Seattle), would have authorized counties to adopt a local business and occupation tax beginning primarily in 2027. The bill did not receive a hearing in the House Finance Committee.
  • Employee Monitoring Transparency Requirements (House Bill 2144), sponsored by Representative Lisa Parshley (D-Olympia), would have established new notice and enforcement requirements for Washington employers that use electronic monitoring, including artificial intelligence tools, in employee performance evaluations. House Bill 2144 received a public hearing in the House Appropriations Committee on Feb. 6 but was never brought for a vote.
  • Diesel Fuel Tax Reduction (HB 2404), sponsored by Rep. Alex Ybarra (R-Quincy), would have rolled back the state special fuel tax on diesel to its July 1, 2016, rate, cancelled scheduled per-gallon increases beginning in 2025, and adjusted alternative-fuel license fee calculations to reflect the lower tax rate by tying 2026 fees to the 2024 cumulative fuel tax. The bill never received a hearing or other action.
  • Fair Pricing and Transparency in Groceries (House Bill 2481), sponsored by Representative Mary Fosse (D-Everett), would have created the “fair pricing and transparency act” to prohibit surveillance-based price discrimination and surge pricing in retail grocery stores, require clearly posted uniform prices, and treat violations as unfair or deceptive acts under the Consumer Protection Act. The bill also imposed a four-year moratorium on electronic shelf label systems in larger grocery stores while the Department studies their impacts on pricing transparency and worker job security, with findings due to the Legislature by June 30, 2029. The bill stalled in the House Appropriations Committee.