Legislative Update

We are now almost 1/3 of the way through the 60‑day legislative session, and its remarkable how quickly things are moving. Committee hearings dominated most of the first three weeks, with a few floor sessions mixed in as lawmakers race toward the first major cutoff on February 4, the deadline for policy bills to pass out of committee. So far, over 1000 new bills have been introduced this session. When combined with measures still alive from last year, the total bill count now is close to 3000.

Tax proposals and the supplemental budget continue to drive much of the conversation as legislators confront a $2 billion shortfall in the current biennium. Both a payroll tax and a so‑called “millionaires’ income tax” are gaining attention among some members of the Democratic majority. Governor Bob Ferguson put forward the millionaires’ tax in late December, backing a 9.9% income tax on individuals earning more than $1 million annually, regardless of filing status. The proposal excludes individuals whose net worth exceeds that amount solely due to home value. If enacted, the tax would almost certainly face a challenge before the State Supreme Court and could prompt a repeal effort at the ballot box.

Rep. Shaun Scott, D‑Seattle, introduced HB 2100 ahead of the session’s start on January 12. The bill received its first public hearing on Thursday, drawing significant public engagement—more than 15,000 people signed in, with roughly 12,000 registering opposition. HB 2100 would create a 5% payroll tax applied only to “large operating companies,” defined as employers with at least 250 employees and a minimum of $7 million in annual payroll. The definition excludes health care facilities and government agencies. The proposal is modeled after Seattle’s JumpStart tax, which fell $47 million short of revenue projections in 2024. Under HB 2100, all revenue would go to the state general fund until July 2027; after that, 51% would be directed to the Well Washington Fund to support health care, education, housing, and other majority‑party priorities, with the remainder staying in the general fund. Bellevue officials have noted that since Seattle adopted the JumpStart tax, the city has lost more than 5,500 jobs, while Bellevue has added over 4,500 during the same period.

Several other high‑profile bills are also drawing attention, including legislation to regulate the use of automatic license plate readers and a proposed bottle‑deposit program modeled after Oregon’s system. Lawmakers are also considering multiple bills related to immigration enforcement, reflecting broader national debates and developments.

Specific to WA Fairs, there are a few bills receiving consideration. The “non-compete” legislation is back in play this session with both the House and Seante versions moving, the House version could be voted from the floor today.

A new bill to pay attention to is HB 2524, creating a security guard industry standards board. The bill does several things.

-Creates the State Security Guards Industry Standards Board (Board) for establishing minimum employment standards for security guards, including minimum compensation, paid leave, employment benefits, and training. -Directs the Department of Labor and Industries (L&I) to enforce the minimum employment standards, and allows security guards to enforce the standards through a private right of action.

-Directs the Department of Licensing to remit a portion of security guard licensing fees to L&I to support the costs of the Board.

The bill received a hearing this week and is scheduled for a committee vote next week. The concern here is the cost this could have on Fairs in addition to the state sales tax now on their services. Virtually all aspects of the business community that use private security services are opposed to the bill including hospitals, retailers and the construction industry.

On the budget front, fiscal leaders have started their deliberations, but we won’t see anything public for several weeks. The Operating budget is facing a deficit in the neighborhood of $2 billion, putting the already depleted Fair Fund at risk. Budget writers will be looking for money anywhere they can find it. On the Capital side, things are much less dire, the Fair Capital Grant program remains intact, that will be a fight for next year.

High Priority Bills

Bill Details		Status	Sponsor	Position
SHB 1155 (SB 5437)	Noncompetition agreements	H 2nd Reading	Berry	Oppose
	Prohibiting noncompetition agreements and clarifying nonsolicitation agreements.
SB 5437 (SHB 1155)	Noncompetition agreements	S Labor & Comm	Stanford	Oppose
	Prohibiting noncompetition agreements and clarifying nonsolicitation agreements.

Monitoring Bills

Bill Details		Status	Sponsor	Position
HB 1613	Ticket sales	H ConsPro&Bus	Reeves	Neutral
	Concerning ticket sales.
HB 2083 (ESSB 5814)	Excise taxes	H Finance	Stonier	Neutral
	Modernizing the excise taxes on select services and nicotine products and requiring certain large businesses to make a one-time prepayment of state sales tax collection.
HB 2334 (SB 6230)	Cash transactions/pennies	H Finance	Berg	Neutral
	Adjusting the price of a cash transaction to eliminate the need for pennies.
HB 2422	Private security guards	H Postsec Ed & W	Obras	Neutral
	Concerning private security guards.
HB 2431	Nonprofit halls/fundraising	H Finance	Shavers	Neutral
	Increasing the maximum annual limit for regularly scheduled fundraising activities for the nonprofit public assembly halls and meeting places property tax exemption.
HB 2524	Security guards board	H Labor & Workpl	Obras	Neutral
	Establishing the state security guards industry standards board.
SB 5070	Interchange fees on tips	S Labor & Comm	Saldaña	Neutral
	Concerning prohibiting fees on certain acts of commerce to protect tipped wages for workers while reducing the financial burden on employers.
E2SSB 5098	Weapons in certain areas	H Civil R & Judi	Valdez	Neutral
	Restricting the possession of weapons on the premises of state or local public buildings, parks or playground facilities where children are likely to be present, and county fairs and county fair facilities.
SB 5676	Electronic admission tickets	S Environment, En	Stanford	Neutral
	Concerning the delivery of electronic admission tickets.
SB 5887 (HB 2500)	Transfers to charities	S Law & Justice	Riccelli	Neutral
	Protecting charitable organizations and ensuring the timely and secure transfer of property designated to them.
SB 6230 (HB 2334)	Cash transactions/pennies	S Business, Trad	Frame	Neutral
	Adjusting the price of a cash transaction to eliminate the need for pennies.