Washington State Legislative Update – Week of  February 10 – 14, 2025

Week of February 10-14

The fifth week of the legislative session ended with one more week before the first cutoff of the 2025 legislative session. Friday, February 21st is the last day for bills to be passed out of their house of origin policy committees. Committees will continue to hold hearings on policy bills but most of the time will be used for executive session to vote bills out of committee.

First Press Conference

On Thursday, Governor Ferguson held his first formal press conference and was joined by other state officials to push back on what they consider an unconstitutional siege of federal funding intended for the state and immoral attacks on vulnerable communities. After several directives seeking to halt federal funding to states, Washington still has $162 million stalled. Of that total, $156 million is for a solar power program and the rest is for wildfire preparedness and pollution reduction work. In the last fiscal year, federal funding accounted for about $27 billion, or roughly a third, of Washington’s state budget.

Attorney General Brown is leading two lawsuits against the Trump administration and has joined with other attorneys general on at least three others. One of Brown’s lawsuits is over Trump’s effort to restrict birthright citizenship his second is over the administration’s threats to halt funding for gender-affirming care for transgender youth. This week he joined more than a dozen states in suing the Trump administration over delegating power to billionaire Elon Musk and his Department of Government Efficiency.

Forecast Council

On Friday the Washington State Caseload Forecast Council met and received updated caseload numbers for entitlement programs such as ECEAP, K-12 enrollment, and Corrections. The Council meets three times a year to adopt official forecasts: the spring forecast (March) is utilized by the legislature as they develop the budget, the June forecast updates caseloads based on changes made by the legislature during the previous session, and the November forecast informs the Governor’s budget proposal. The February forecast showed 11 forecasts were higher, 8 were lower and 13 were negligible or unchanged. Three themes generally drove those differences- 1) substantial growth in higher education, 2) higher than normal applications for the WA family tax credit and 3) lower immigrant caseloads. The Economic and Revenue Forecast Council will meet Tuesday, March 18th to review the Spring Quarterly Economic Revenue Forecast. The forecast will provide budget writers with financial parameters to finish writing the 2025-2027 operating budget.

MAJOR THEMES THIS WEEK

Minimum Wage

On Tuesday, both the House and Senate Labor committees heard companion bills HB 1764 (Mena, D-29) and SB 5578 (Saldaña, D-37) which among other elements, would raise the minimum wage over time. Whereas the Federal minimum wage, which last increased in 2009, is $7.25 per hour, the minimum wage in Washington State is currently $16.66 per hour, but some local jurisdictions in the Puget Sound Region are higher by ordinance, with some local governments attempting to meet the high cost of living in the region. According to Payscale.com, the cost of living in Seattle for example, is 46% higher than the national average and housing is 114% higher than the national average. Key points of the bill include:

  1. Wage Increase: Makes annual incremental increases to the minimum hourly wage rate, from $17.50 in 2026 to $25 in 2031.
  2. Vacation: Requires employers to provide each employee with at least 2.3 hours of paid vacation leave for every 40 hours worked.
  3. Bereavement: Requires employers to provide each employee with at least five days of paid bereavement leave per calendar year.
  4. Stop Work Order: Allows the Department of Labor and Industries to issue a stop work order until an employer has paid the amounts owed to employees.

Many members of the labor community testified in support, citing stagnating wages and the need to work multiple jobs to meet basic needs. The business community turned out in force to oppose the bill with testimony and sign-ins from mostly hospitality businesses across the state, suggesting the costs cannot be absorbed and will be passed on to consumers.

Electric Vehicle Battery Lifecycle & Direct Sales

Last week, the Seattle Times published an article suggesting Seattle-area households are 130% more likely to have a Tesla than the national average, making it the most overrepresented car in the region. On Tuesday, the House Committee on Environment & Energy heard HB 1550 (Street, D-37), which aims to improve the end-of-life management of electric vehicle (EV) batteries by making producers responsible for their collection, recycling, and disposal. Key provisions include:

  1. Producer Responsibility: EV battery manufacturers must manage their products’ end-of-life, ensuring proper disposal, recycling, or reuse.
  2. Battery Labeling: Starting in 2028, new EV batteries must be permanently labeled with essential information.
  3. Disposal Restrictions: By 2029, waste collection companies and facilities cannot accept EV batteries for disposal unless authorized.
  4. Battery Management Plans: Producers must submit and implement state-approved plans outlining how they will collect, transport, and recycle used batteries.
  5. Consumer Guidance: The bill mandates informing EV owners and industry stakeholders about proper disposal practices.
  6. Compliance & Penalties: The Department of Ecology will oversee enforcement, approve battery management plans, and impose penalties for non-compliance.

This legislation aligns with actions taken by New Jersey and California to promote EV battery recycling and reuse.
Also this week, the House Consumer Protection & Business Committee heard HB 1721 (Doglio, D-22), a bill to expand consumer access to zero-emissions vehicles (ZEVs) while supporting traditional auto dealers’ transition to a ZEV-focused market. Most EV manufacturers such as Tesla, Lucid, and Rivian have maintained that direct-to-consumer sales are crucial to their success and good for buyers. They argue that this approach allows them to offer consistent pricing and provide better education on EV technology than traditional dealerships.

HB 1721 (Doglio, D-22) allows direct sales of ZEVs by qualified manufacturers only if they establish service centers and provide mobile services, provides consumer protection, and incentivizes dealers to increase ZEV sales by providing grants to dealers that reach 50% ZEV sales. Advocates say the legislation balances innovation with fairness by setting guidelines for warranty work reimbursement, pricing, preorders, and subscription services. Additionally, it establishes a grant program for traditional dealers to support ZEV technician training and charging infrastructure, while promoting partnerships with qualified manufacturers for servicing ZEVs. Reports on the effectiveness of this program are due annually starting in 2026.
In response to this bill, auto dealers have supported SB 5377 (Saldaña, D-37), which aims to eliminate Tesla’s exclusive provision allowing direct vehicle sales. During public testimony last week, dealers contended that the franchise dealership model supports job creation in rural areas, where EV companies lack retail locations. They also argued that dealerships offer superior customer service due to competition among them.

Self Check-Out

The discussion around the integration of technology and workers resurfaced this week in a bill that regulates self-service checkout stations in grocery stores. HB 1739 (Fosse, D-38) aims to ensure that self-checkout options are used safely while protecting workers’ rights. Key elements include:

  1. Self-Service Checkout Requirements:
    • A manual checkout station must be available alongside self-checkout.
    • A limit of 15 items per transaction at self-checkout, with clear signage.
    • One employee can monitor no more than two self-checkout stations at a time.
  1. Workplace Safety: Grocery stores must assess work hazards related to self-service checkouts in their accident prevention programs.
  2. Exemption for Certain Stores: Discount warehouses or retail stores with bulk items or membership fees are not subject to these rules.
  3. Penalties: Employers who fail to comply can face civil penalties up to $10,000, with the possibility of additional legal action from the attorney general.
  4. Employee Rights: Employees can bring court actions for violations, seeking reinstatement, back pay, and other compensations.

Grocery and business advocates say the bill takes away the store’s discretion on how to serve their customers, while labor contends the current state of unregulated self-checkout machines presents safety issues.

Important Dates:

  • Monday, January 13 – First Day of Session
  • Friday, February 21 – Policy Committee Cutoff, House of Origin
  • Friday, February 28 – Fiscal Committee Cutoff, House of Origin
  • Wednesday, March 12 – House of Origin Floor Cutoff
  • Wednesday, April 2 – Policy Committee Cutoff, Opposite House
  • Tuesday, April 8 – Fiscal Committee Cutoff, Opposite House
  • Wednesday, April 16 – Opposite House Floor Cutoff
  • Sunday, April 27 – Sine Die

—

Brynn Brady

Ceiba Consulting, Inc. | ceibaconsulting.com

Post Views: 30
Share!