The Washington Legislature adjourned on April 27. The House introduced 1305 bills and the Senate 1082 for a total of 2387 bills. Of those bills, 431 were sent to Washington’s new governor, Bob Ferguson (D), who has until May 17 to sign or veto them.
Here’s what you may have missed:
Housing
During Governor Ferguson’s inaugural address, he focused on solving housing issues, particularly pricing for buying and renting.
The Legislature acted on this and introduced the controversial HB1217. Introduced by Representative Nicole Marci (D) and Senator Emily Alvarado (D), HB1217 sets a 7% cap for landlords when raising rent. Landlords must provide a 90-day notice before an increase takes effect. Exemptions are provided for nonprofits and residential construction 12 years old or less.
Democrats in both chambers argue the bill will assist in reducing the cost of living for residents and stabilize the rent market. Republicans argue the bill will not do either and instead hurt landlords who may find it difficult to afford building upkeep costs.
Similar legislation has been introduced in Arizona, California, Colorado, Connecticut, New York, and Texas.
The bill was signed by Governor Ferguson on May 7. It takes effect upon signature.
Extended Producer Responsibility (EPR)
After years of trying to pass EPR legislation for packaging and paper, the Legislature was able to pass HB 5284 following extensive conversations during interim hearings with stakeholders.
Senator Liz Lovelett (D) introduced SB 5284, which requires:
- The establishment of a producer responsibility organization to establish fees and oversee the program
- The creation of an initial statewide collection list by October 1, 2026, a preliminary plan by December 31, 2026, and a plan by October 1, 2028
- Full program implementation by January 1, 2030
If the bill is signed by Governor Ferguson, it would make Washington the 7th state to adopt EPR for packaging following California, Colorado, Maine, Minnesota, Oregon, and Maryland, which passed similar legislation this year. Similar legislation is pending in a handful of states, including in New Jersey, North Carolina, and Rhode Island.
Budget
The Washington Legislature is required to pass a two-year budget for each odd-numbered year. The 2025-2027 budget passed the Legislature on April 27 with a value of $78 billion.
This year’s budget process saw the Democratic majority clashing with Governor Ferguson, largely over finding ways to solve a potential $15 billion shortfall. Initial proposals from Democrats included a wealth tax. Governor Ferguson said he would refuse to sign any budget that included such a provision. Democrats instead proposed a new business and digital services tax.
Final budget provisions include:
- $4.3 billion in new taxes on businesses, financial assets, and technology services, including increases to the business and occupation tax
- $40 million to the Department of Commerce for alternative fuel vehicle programs and incentives
- $15,630,000 to the Health Care Authority for opioid and overdose response activities in tribal communities
- $24 million to the Department of Commerce for broadband equity, access, and deployment grants
Governor Ferguson said he was pleased with the final budget and “intends to carefully review all revenue increases.” The Governor is given the power to line-item veto any provision in the budget. This “careful review” may lead to certain provisions being removed.
Looking Forward
This year marked Governor Ferguson’s first term during a legislative session. Democrats were generally pleased as they learned to work with a new head of state. Tensions rose a few times during the budget process, and when House Democrats repealed rules that allow for the Governor’s designees to enter the chamber floor. While this could point to future conflicts, it may be growing pains.
Washington will host a special election for 8 vacant House and Senate seats. The special election is scheduled to take place on November 4, 2025.