Week 12, Washington State Legislative Report

By Diana Carlen
WAWG Lobbyist

Week 12 brought another key deadline as the opposite house policy committee cutoff arrived Wednesday, April 2. House bills that weren’t voted out of policy committees by adjournment that day can no longer be considered during the 2025 session. The next deadline is April 8 when bills must be voted out of the opposite chamber’s fiscal committees. As has been stated before, bills that are “necessary to implement the budget” are exempt from legislative deadlines.

Governor’s Press Conference

Gov. Ferguson held a press conference on April 1 in response to the Legislature’s budget and revenue proposals. Gov. Ferguson stated that he could not support either chamber’s budget as currently proposed because they rely too much on taxes, but he also stated he could not support an all-cuts budget either. He called on lawmakers to move budget discussions in a different direction.

Gov. Ferguson also said that he would not sign a budget dependent on a wealth tax, stating it is difficult to implement and would face an immediate challenge in court. He did state, however, that he was open to a conversation if the Legislature wanted to adopt a smaller wealth tax that would generate $100 million a year to see if it can withstand a legal challenge. Notably, Gov. Ferguson declined to answer questions about how he felt about the other taxes being proposed in the budget proposals.

Democrats responded that they appreciated the governor provided clarification on what he needed to see in a final budget and his acknowledgement that an all-cuts budget was not appropriate. Republicans were pleased the governor announced that he would not support a wealth tax, but were disappointed that the governor declined to criticize the other taxes relied on by Democrats in their budget proposals.

Capital Budget Proposals

Both the House and the Senate Capital Budget proposals were released on March 31. The Capital Budget pays for acquiring and maintaining state buildings, public schools, higher education facilities, public lands, parks, and other assets. Unlike the operating and transportation budgets, the capital budget is primarily funded through bonds and is not facing a deficit. Both the Senate and House capital budgets had public hearings this week and were unanimously passed by their respective committees. The following are the initial proposals:

  • The House Capital Budget Proposal Bill (HB 1216)
  • The Senate Capital Budget Proposal Bill (SB 5195)

The major difference (beyond individual projects) lies in culvert removal. The Senate proposal would bond up to $5 billion dollars over 15 years for culvert removal. Historically, culvert removal is part of the Transportation budget. As such, SB 5804 (Sen. Yasmin Trudeau, D-Tacoma), would replace a portion of the public utility tax on light and power utilities with a new tax on light and power utilities dedicated to culvert removal. Then, it would redirect certain revenue sources from the Public Works Assistance Account to the general fund. In total per year, it would direct $197 million of the Public Utility Tax on light and power utilities (2.011% rate) to the FISH account, $183 million of the Public Utility Tax on light and power utilities (1.862%) to the General Fund, $199 million in taxes (Public Utility Tax on water and sewage, REET, solid waste tax) to the General Fund, and $86 million in loan repayments to the Public Works account according to the Senate Committee Services.

The House Capital Budget Committee passed the Capital Budget on April 4, and the substitute bill can be viewed here. The Senate Ways and Means Committee passed the Capital Budget on April 3, and the substitute bill can be viewed here, with the changed item summary document can be viewed here. The Senate passed their Capital Budget on April 5 unanimously.

Some proposed spending items of interest in the House proposal include:

  • $105 million for the Salmon Recovery Funding Board grant programs
  • $25 million for Salmon Recovery Funding Board: Riparian Grant Program
  • $4 million for the Voluntary Stewardship Program
  • $20 million for Voluntary Riparian Grant Program
  • $6 million for Natural Resources Investments for Economy and Environment
  • $20 million appropriation for Riparian Restoration with Landowners
  • Reappropriation of $8 million for the WA State Fairs Health and Safety Grants, from 2021-23 and 2023-25 biennia
  • $49 million for the Yakima River Basin Water Supply
  • $36.4 million for the Columbia River Water Supply Development Program

Some proposed spending items of interest in the Senate proposal include:

  • $125 million for the Salmon Recovery Funding Board grant programs
  • $25 million for Salmon Recovery Funding Board: Riparian Grant Program
  • $3 million for the Voluntary Stewardship Program
  • $50 million for Voluntary Riparian Grant Program
  • $5 million for Natural Resources Investments for Economy and Environment
  • $23 million reappropriation for Riparian Restoration with Landowners
  • $12 million for the WA State Fairs Health and Safety Grants
  • $3.5 million to the Conservation Commission for improving shellfish growing areas
  • $3.5 million to the Conservation Commission for improving shellfish growing areas
  • $53 million for the Yakima River Basin Water Supply
  • $69 million for the Columbia River Water Supply Development Program

Notable bill action this past week:

  • Agricultural Fuel Exemptions (Engrossed Second Substitute House Bill 1912), sponsored by Rep. Tom Dent (R-Moses Lake), makes it easier for farmers to receive the exemptions they were promised under the Climate Commitment Act for fuel used for agricultural purposes. The bill would require Ecology to publish a directory by Oct.1st to notify farmers of retail fuel sellers that sell exempt fuel used for agricultural purposes. The bill also declares it is the legislative intent to continue the rebate program similar to the budget proviso from last year through June of 2027 for farmers who are not able to get exempt fuel. Finally, it extends the exemption for fuel used to transport agricultural products on public highways until Dec. 31, 2029. A hearing was held in the Senate Ways & Means Committee on April 5. The bill continues to be a work in progress as an amendment is being considered to clarify the definition of special fuels that are exempt to ensure propane remains exempt.
  • Environmental Crimes (Engrossed Substitute Senate Bill 5360), sponsored by Sen. Yasmin Trudeau (D-Tacoma), increases criminal penalties for environmental crimes. The bill would increase the state’s criminal penalties for violations of the Clean Air Act, the Hazardous Waste Management Act, and the Water Pollution Control Act. The bill currently has a very narrow exemption for agriculture and does not align with exemptions currently in place for the respective federal environmental laws. Business and agricultural groups continue to oppose the bill.
  • Unemployment Benefits for Striking Workers (Substitute Senate Bill 5041), sponsored by Senator Marcus Riccelli (D- Spokane), would allow workers who choose to go on strike to be eligible for unemployment insurance (UI) benefits. The bill was amended on the Senate floor to limit unemployment benefits for striking workers to 12 weeks and the law to expire after 10 years. The bill takes effect on January 1, 2026. The business community is in strong opposition to this legislation because Washington’s UI system is designed to provide benefits to workers who lose their jobs through no fault of their own. A hearing was held in the House Appropriations Committee on April 4.
  • Paid Family Leave Expansion (Engrossed Second Substitute House Bill 1213), sponsored by Rep. Liz Berry (D-Seattle), expands worker protections under Washington’s Paid Family and Medical Leave program. Currently, small employers with fewer than 50 employees are exempt from providing job protection and health benefit continuation for employees on Paid Family and Medical Leave (PFML). This bill eliminates these exemptions. In addition, employees could begin utilizing the benefits after 180 days of employment (current law requires you to have worked for the employer for a year before utilizing the benefits), regardless of the size of the employer. A hearing was held in the Senate Ways & Means Committee on April 5.
  • Pesticide Safety Committee Extension (Substitute House Bill 1294), sponsored by Rep. Tom Dent (R-Moses Lake), extends the expiration date of the pesticide application safety committee from July 1, 2025, to July 1, 2035. This committee includes experts from agriculture, public health, and worker safety, to continue reviewing best practices and ensuring pesticide application remains safe for workers, consumers, and the environment. A hearing was held in the Senate Ways & Means Committee on April 3.
  • Collective Bargaining Rights for Agricultural Cannabis Workers (Engrossed Substitute House Bill 1141), sponsored by Rep. Lillian Ortiz-Self (D – Mukilteo), extends collective bargaining rights to agricultural workers in the cannabis industry. The bill passed the House on March 11 by a vote of 55-40 with an amendment that was important to agriculture. Specifically, the bill now states that the bill may not be interpreted by any court to apply to or otherwise extend any rights to any employee who does not meet the definition of employee in the underlying bill, which includes any employee employed by an employer to perform the work of cultivating, growing, harvesting, or producing cannabis, including defoliating, drying, bucking, precuring, curing, drying, trimming, sorting, and loading, if performed on a farm. A hearing was held in the Senate Ways & Means Committee on April 5.
  • Agritourism Tax Relief (Substitute House Bill 1261), sponsored by Rep. Sam Low (R-Lake Stevens), expands permissible incidental uses of open space land to include agritourism activities while providing tax relief for landowners. The bill defines agritourism activities as recreational, educational, or entertainment events on farms, such as festivals, weddings, and produce stands, provided they are incidental and do not exceed 20 percent of the total classified land. It also reduces the financial penalties for removing land from its current use classification by shortening the additional tax calculation period from seven years to four years and allowing waivers or refunds of certain taxes and penalties. A hearing was held in the Senate Ways & Means Committee on April 3.
  • Auction Price Containment CCA (Second Substitute House Bill 1975), sponsored by Rep. Joe Fitzgibbon (D-West Seattle), makes some modest adjustments to the Climate Commitment Act (CCA). For example, it sets the price ceiling for calendar years 2026 and 2027 at $80 (instead of $95). It also requires Ecology to increase the amount of allowances available at auction for the second compliance period. A hearing was held in the Senate Ways & Means Committee on April 5.
  • Clean Fuels Program (Second Substitute House Bill 1409), sponsored by Rep. Joe Fitzgibbon (D- Burien), proposes significant amendments to Washington’s Clean Fuels Program (i.e. Washington’s low carbon fuel standard for transportation fuels). The bill adjusts the reduction schedule to achieve a 45% decrease in carbon intensity by 2034. The bill was amended to specify that Clean Air Act civil and criminal penalties no longer apply to violations of the Clean Fuels Program, but establishes penalties and other enforcement powers specific to the CFP program. The bill also prohibits Ecology from increasing the carbon intensity standards beyond 20% beginning in 2030 unless Ecology determines that one new or expanded biofuel production facility has received a siting, operating, or environmental permit after Jan. 1, 2025. A hearing was held in the Senate Ways & Means Committee on April 5.

Notable Bills Considered Dead after the Fiscal Cutoff Deadline:

  • Agritourism Promotion (SB 5055), sponsored by Sen. Judy Warnick (R-Moses Lake), would have allowed agritourism activities as accessory uses on agricultural lands. These activities would have included direct sales, educational events, and entertainment that generate supplemental farm income and promote rural character. The bill required counties to establish criteria to minimize disturbances and exempted agricultural buildings used for agritourism from certain commercial standards if they operate for six months or less annually.
  • Job Posting Fairness (HB 1402), sponsored by Rep. Shaun Scott (D-Seattle), would have prohibited employers from requiring a valid driver’s license in job postings unless driving is an essential job function and alternative transportation methods would be unreasonable. The bill defined “alternative form of transportation” broadly, including public transit, ride-hailing services, and carpooling, among others, and aims to ensure that driver’s license requirements are limited to roles where they are genuinely necessary.

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