Washington State Legislative Update 

Week of March 2-6, 2026

As the final week of the 2026 Washington State Legislative Session approaches, a growing number of lawmakers are announcing that they will not seek reelection, signaling notable turnover ahead of the next biennium. The wave of departures includes veteran members and relatively newer legislators alike, reflecting a mix of retirements, career transitions, and bids for other offices. These announcements come as lawmakers race to finalize budgets and reconcile policy differences before the March 12 adjournment. At this time, rumors are circulating for many additional vacancies, but the following members have formally announced:

House:

4th LD – Schmidt (R) running for Spokane County Commissioner

6th LD – Volz (R) elected Spokane Co. Treasurer

6th LD – Graham (R) not running

15th LD – Dufault (R) running for Senate

26th LD – Valdez (Caldier) (R) not running *swing district

29th LD – Mena (D) running for Senate (opens H State Gov Chairship)

32nd LD – Ryu (D) challenging Salomon (opens H TED&V Chairship)

49th LD – Wylie (D) running for Clark County Auditor

Senate:

8th LD – Boehnke (R) running for Congress

15th LD – Torres (R) running for 8th LD

29th LD – Conway (D) not running

37th LD – Saldaña (D) running for King County Council (opens S Labor & Commerce Chairship)

42nd LD – Shewmake (D) not running (opens S EE&T Chairship) *swing district

The departures will reshape committee leadership, caucus dynamics, and institutional knowledge in 2027, setting the stage for a period of recalibration in both chambers and for both parties. That timing could be consequential for the Millionaires’ tax (SB 6346), which currently awaits a House floor vote. The Senate passed the bill 27-22 with Democrats Cortes, Hansen, Krishnadasan joining the Republicans in opposition. On Thursday evening, Rep. Berg proposed a new version of the bill to be considered on the floor. On Friday, Governor Ferguson expressed conditional support for this revised Millionaires’ Tax proposal, saying he will sign the bill because it now directs a substantial portion of revenue to affordability measures for Washington families and small businesses.

The revised proposal would expand the Working Families Tax Credit, adding eligibility for about 460,000 more households, removing age restrictions, and extending benefits to families earning at or below the state’s “Need Standard.” Eligible households would receive state payments ranging from $300 to $1,300.

The bill also includes tax relief for small businesses, while maintaining previously adopted business tax reductions. It preserves sales tax exemptions for diapers and hygiene products and adds a new exemption for over-the-counter medications.

Revenue from the tax would fund universal free breakfast and lunch for all Washington public school students, a key priority for Ferguson, and dedicate 5% of revenue to the Fair Start for Kids Account to support child care and early learning programs.

Ferguson framed the proposal as a major step toward improving affordability and rebalancing Washington’s tax system, while signaling he will review any further amendments to ensure the affordability provisions remain intact. He urged the Legislature to pass the revised version with these investments included.

Budget writers have been behind closed doors negotiating the differences between the Chamber’s budget proposals- Operating, Capital and Transportation. Their debut is expected early this week, and a final vote needs to happen by Sine Die, the last day of session, March 12^th.

Notable Bills Passed This Week

Police Face Coverings Ban (SB 5855): This bill prohibits law enforcement officers from wearing face coverings during public interactions, with exceptions for undercover operations and safety equipment. It allows individuals detained by a noncompliant officer to pursue civil action. Supporters argue the policy enhances transparency and accountability, particularly amid concerns about masked federal immigration agents operating in communities. Critics contend it could compromise officer safety and raise constitutional conflicts if applied to federal agents. The bill passed along party lines in the Senate, 30-19, and the House 56-37 and has backing from Gov. Ferguson. The Senate must concur with House amendments before adjournment for the bill to head to the governor.

Automated License Plate Readers (SB 6002): This bill establishes Washington’s first statewide regulations governing automated license plate readers (ALPRs). The bill limits data retention to 21 days unless tied to an investigation, restricts permissible uses to defined law enforcement purposes, prohibits use for immigration enforcement or tracking constitutionally protected activities, and requires oversight and logging of data access. The legislation responds to privacy concerns and reports of broad data access by federal and out-of-state agencies. It passed the Senate with bipartisan support, 40-9, and the House, 84-10.

LEOFF Plan 1 Restructure (E2SHB 2034): This bill would terminate the current LEOFF Plan 1 retirement system in 2029 and replace it with an identical successor plan funded at 110% of projected liabilities. As part of the restructuring, $569 million in surplus funds would be transferred to the Climate Commitment Account, with the remainder directed to pension reserves. Opponents argue the proposal diverts pension assets for unrelated spending, potentially violates constitutional protections, and breaks promises to retirees. Some have called for benefit enhancements or COLAs before supporting the measure, and counties have requested consideration of retiree medical cost obligations. The bill passed the House along primarily party lines, 55-39, with Reps. Nance, Richards, Simmons breaking from the Democrats. This bill was the Senate’s “5 o’clock bill” on Friday’s opposite house cutoff. After an almost two-hour debate, the bill passed 25-22 with Senators Bateman, Cortes, and Krishnadasa breaking from the Democrats.

Climate Commitment Act Restructuring (E2SHB 2251): This bill reorganizes the Climate Commitment Act accounts by eliminating four existing accounts, creating new operating and capital accounts, renaming the transportation account, adjusting revenue distribution from carbon auctions, and modifying spending and reporting requirements. Supporters back continued CCA investments and seek amendments to ensure funding benefits tribes and overburdened communities. Critics question the measurable emissions impact of current spending and express concern over reduced reporting frequency and accountability. The House passed the bill 56-41 with Reps. Entenman and Rule joining the Republicans in opposition. Another bill the Senate took up on day of opposite house cutoff and passed 34-14 with Senators Fortunato, King, Goehner and Schoesler joining the Democrats in support.

Tax Code Technical Corrections (ESSB 6113): This bill makes technical updates to state tax laws (trailer to bill ESSB 5814, the B&O and sales tax passed in 2025) and codifies Department of Revenue guidance related to prior tax legislation to provide clarity and certainty for businesses. Supporters characterize it as administrative with no fiscal impact. Opponents argue certain provisions, particularly those tied to a potential Comcast lawsuit, could eliminate advertising and broadcaster tax exemptions, harming newspapers and local media. Others raise concerns about unintended impacts on schools, arts organizations, small creative businesses, and peer-to-peer car-sharing platforms. Overall, debate centers on whether the bill is purely technical or carries broader policy consequences. The bill passed with bipartisan support, 45-3 in the Senate. The bill was heard on opposite house cutoff and passed the amended bill 92-4 and will need to return to the Senate for concurrence.

Insurance Taxes (HB 2487) Deemed NTIB, this bill clarifies that insurance companies paying Washington’s insurance premium tax are exempt from paying B&O tax on the same insurance business income to prevent double taxation. It directs the Department of Revenue, in consultation with the Office of the Insurance Commissioner, to adopt rules and guidance to implement the exemption. The bill also provides temporary relief from penalties for certain past tax filings and exempts insurers from the advanced computing surcharge, with some provisions applied retroactively. Supporters say the bill clarifies that the B&O tax exemption for insurers who pay the insurance premium tax should not extend to unrelated “downstream” businesses. They argue a recent Washington Supreme Court decision could create a loophole allowing those businesses to avoid B&O tax and reduce state revenue. The bill is intended to restore the original intent of the law and maintain tax fairness. Opponents argue the bill creates a retroactive tax back to 2019 that could increase insurance premiums and raise due process concerns. They say the bill may expand taxes on services supporting insurers and lead to higher costs that are passed on to consumers. The bill passed the House 51-44 with Reps. Leavitt, Reeves, Richards, Shavers and Timmons joining the Republicans in voting no.

NTIB Bills (Necessary to Implement the Budget) Awaiting Committee Action

House Finance Committee

• ESSB 6129 – Concerning the taxation of cigarettes, vapor products, and other products containing tobacco or nicotine. The committee did not advance on Saturday.
• ESB 6228 – Removing a tax exemption for the warehousing and reselling of prescription drugs and providing tax relief for critical access pharmacies. Subject to signatures, the bill advanced with an amendment on Saturday.
• ESSB 6231 – Removing a tax exemption for the replacement of equipment for data centers. Subject to signatures, the bill advanced on Saturday.

House Appropriations

• 2SSB 6182 – Establishing an abortion savings program.
• ESSB 6260 – Implementing efficiencies and programming changes in public education.
• SSB 6355 – Concerning the electric transmission system.

House Transportation

• HB 2347 – Reducing the impact of the luxury aircraft tax.
• SSB 6170 – Adjusting monetary limits regarding contracting rules for state highway construction work and procurement.

Senate Ways and Means

• HB 2487 – Concerning taxes imposed on insurers operating within the state.
• SHB 2689 – Concerning the working connections child care program.
• HB 2747 – Concerning budget sustainability.
• EHB 2681 – Modifying cannabis producer, processor, and retailer license fees.

Important Dates:

• March 2 – Fiscal Committee Cutoff – Opposite House
• March 6 – Floor Cutoff
• March 12 – Sine Die

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Brynn Brady

Ceiba Consulting, Inc.