2026 Legislative Update: Week 2

Week two of the 2026 short legislative session was marked by intense activity as lawmakers worked within a highly compressed short session timeline. In a short session, bills have only 24 days to be introduced, heard in committee, potentially amended, and voted on before they can be advanced to the Rules Committee and then the floor. Most House and Senate committees meet approximately a dozen times during this window, which makes time a constant constraint for legislators, staff, advocates, and stakeholders alike. This week also brought notable retirement announcements for 2026 including Sen. Steve Conway (D-29) and Rep. Sharon Wylie (D-49) as well as news that Rep. Sharlett Mena (D-29) will run for Conway’s seat and Sen. Nikki Torres (R-15) will abandon her bid in the 15th, and run in the 8th, as Sen. Matt Boehnke (R-8) announced his intention to run for congress.

On Monday, January 19, Sen. Jamie Pedersen (D‑43) circulated a draft proposal of the much‑anticipated “millionaire tax” to interest groups. While still in draft form, the proposal offers an early look at a significant new revenue concept under consideration. The tax would take effect in 2029 and impose a 9.9% tax on Washington taxable income above a $1 million standard deduction per taxpayer. Married couples or state‑registered domestic partners would share a single $1 million cap. The threshold would be indexed for inflation, and the tax would be prorated for nonresidents. The release of the draft reflects broader legislative discussions about how to address long‑term budget pressures at both the state and local levels.

Transportation funding featured prominently this week, particularly in the context of Sound Transit’s long‑term financial challenges. Like many regional authorities, Sound Transit is contending with rising construction costs, revenue uncertainty, and the fiscal realities of delivering voter‑approved projects under its Sound Transit 3 (ST3) expansion plan, which extends through 2046. On Monday, January 19, the Senate Transportation Committee heard SB 6148 (Liias, D‑21). The bill would authorize Sound Transit to issue general obligation bonds with terms of up to 75 years, a significant increase from the current 40‑year limit. Supporters argue that longer bond terms could provide the agency with additional flexibility to finance major capital projects – such as light rail extensions – by spreading debt service payments over a longer period. Even with this authority, Sound Transit would still be required to secure 60% voter approval to issue new debt that exceeds its statutory limit of 1.5% of assessed property value. The bill also includes a notable trade‑off: if Sound Transit issues bonds with terms longer than 40 years, it would become ineligible for certain state Regional Mobility Grant funds. This provision could reduce access to supplemental state funding for future capital projects.

On Tuesday, January 20, the House Finance Committee heard HB 2442 (Berg, D‑44), a wide‑ranging bill designed to expand local governments’ ability to raise and use revenue for public priorities. The bill authorizes cities and counties to impose additional real estate excise taxes-up to 0.25% for general capital projects and up to 0.5% for affordable housing. It also allows counties to create a utility tax of up to 3%, with a portion of revenues dedicated to low‑income utility assistance. In addition, HB 2442 permits local governments to adopt local sales and use taxes to support childcare, youth mental health services, workforce development programs, housing, and transportation. The bill updates existing housing and behavioral health tax authorities to prioritize certain populations and to require community engagement in planning and implementation. It also extends the allowable duration of voter‑approved property tax levies beyond normal limits, allowing them to run for up to 10 years.

On Thursday, January 22, the House Finance Committee heard HB 2100 (Scott, D‑43), also known as the Well Washington Fund Act. The bill proposes a new excise tax on large employers to support state public services. Specifically, it would impose a 5% tax on payroll above approximately $125,000 per employee for companies with more than 20 employees, more than $5 million in gross receipts, and a U.S. address. Employers with total wages under $7 million would be exempt. Initially, revenue from the tax would be deposited into the state general fund. Beginning in mid‑2027, however, 51% of the revenue would be directed to a newly created Well Washington Fund. The fund would support investments in higher education, health care, cash assistance programs, energy initiatives, and housing. The remaining revenue would continue to support the general fund.

Tourism policy also received attention this week. Washington officially closed its state tourism office on June 30, 2011, during a period of budget cuts, becoming the only state without state‑funded tourism promotion. Since then, nonprofit organizations and industry partners have taken on a greater role in marketing the state as a destination, recognizing tourism as an important driver of hospitality and related economic activity. Two tourism‑related bills were heard this week: HB 2278 (Barnard, R‑8) and HB 2325 (Paul, D‑10). While both aim to support tourism, they operate at different levels. HB 2278 would provide local governments with more flexibility to fund tourism promotion by allowing an additional lodging assessment of up to $3 per night in designated tourism areas. To implement the assessment, lodging operators responsible for at least 60% of the proposed charges must approve the proposal, and the plan must clearly outline intended uses of the revenue and estimated costs. HB 2325, by contrast, establishes a voluntary, industry‑led statewide tourism assessment program. The program would be overseen by a board of business representatives, with assessment rates based on gross revenue from lodging, attractions, and travel services. Funds would be deposited into a dedicated account for statewide tourism marketing. Businesses would be required to ratify any assessment through referenda before collection. Together, the bills seek to strengthen both local and statewide tourism promotion through targeted, business‑supported funding mechanisms.

The labor community mobilized this week in support of HB 2471 (Scott, D‑43), which would create a state‑level framework for collective bargaining in private‑sector workplaces not covered by federal law, including the National Labor Relations Act or the Railway Labor Act. Because federal law preempts most private‑sector labor relations, Washington currently lacks a general state framework for these workers. HB 2471 would establish such a framework, providing legal protections and a defined process for union organizing and collective bargaining under state law where federal jurisdiction does not apply. Existing collective bargaining agreements would remain enforceable once state jurisdiction takes effect. Supporters argue the bill would extend labor protections to workers who currently fall outside federal coverage.

Washington’s initiative process emerged as a point of contention this week following the recent submission of signatures by Let’s Go Washington for two initiatives – one addressing changes to parental‑rights laws and another that would bar transgender girls from participating on girls’ school sports teams. Legislative Democrats have stated they will decline to hear the initiatives during session, sending them directly to voters in November. Against this backdrop, two bills addressing the initiative and referendum process were heard: SB 5973 (Valdez, D‑46) and HB 2260 (Ramel, D‑40). SB 5973 would require initiative sponsors to submit at least 1,000 verified signatures before the Secretary of State issues a ballot title, prohibit payment of signature gatherers based on the number of signatures collected, and allow citizens to bring civil actions for violations, with penalties of up to $10,000. The bill generated significant public interest, with nearly 12,000 people signing in to register their views. HB 2260 would require petition circulators to sign declarations affirming the accuracy of the signatures they collect, direct election officials to verify that petitioners’ addresses match voter registration records, and update petition forms accordingly.

On Thursday, the House Environment & Energy Committee heard HB 2515 (Doglio, D‑22), which establishes a framework for regulating emerging large energy‑use facilities, such as data centers. The bill responds to the rapid growth of these facilities and their potential impacts on communities, the environment, and the power grid. It requires utilities to submit tariffs and contracts for regulatory approval and ensures that service to large energy users does not compromise grid reliability or affordability for other customers. Facility owners would also be required to publish public sustainability reports detailing energy and water use, cooling technologies, and environmental performance.

Important Dates

• February 4 – Policy Committee Cutoff (House of Origin)
• February 9 – Fiscal Committee Cutoff (House of Origin)
• February 17 – Floor Cutoff
• February 25 – Policy Committee Cutoff (Opposite House)
• March 2 – Fiscal Committee Cutoff (Opposite House)
• March 6 – Floor Cutoff
• March 12 – Sine Die

Upcoming Events Report

Environment & Energy (House) – HHR B and Virtual JLOB – 1/26 @ 1:30pm

• HB 2575 – Public Hearing – Reducing certain reporting obligations under environmental or energy laws. (Remote Testimony Available).

Ways & Means (Senate) – SHR 4 and Virtual JACB – 1/26 @ 4:00pm

• SB 6220 – Public Hearing – Ensuring nonprofit housing providers qualify for a property tax exemption when the property is temporarily used for certain community purposes other than affordable housing. (Remote Testimony Available).

Finance (House) – HHR A and Virtual JLOB – 1/27 @ 8:00am

• HB 2227 – Public Hearing – Providing a real estate excise tax exemption for the sale of qualified affordable housing. (Remote Testimony Available).
• HB 2528 – Public Hearing – Creating uniformity for the process by which cities planning under the growth management act implement real estate excise taxes. (Remote Testimony Available).
• HB 2292 – Public Hearing – Concerning taxation of a long-term capital gain of a section 1202 small business stock. (Remote Testimony Available).
• HB 2257 – Public Hearing – Concerning taxes administered by the department of revenue. (Remote Testimony Available).

Law & Justice (Senate) – SHR 4 and Virtual JACB – 1/27 @ 8:00am

• SB 6239 – Public Hearing – Requiring arbitration for tort claims against the state of Washington and its subdivisions. (Remote Testimony Available).
• SB 6190 – Public Hearing – Protecting critical infrastructure. (Remote Testimony Available).

Local Government (House) – HHR E and Virtual JLOB – 1/27 @ 10:30am

• HB 2451 – Public Hearing – Concerning local tax increment financing. (Remote Testimony Available).

Technology, Economic Development, & Veterans (House) – HHR C and Virtual JLOB – 1/27 @ 10:30am

• HB 2157 – Exec Session – Regulating high-risk artificial intelligence system development, deployment, and use.

Consumer Protection & Business (House) – HHR B and Virtual JLOB – 1/27 @ 1:30pm

• HB 2629 – Public Hearing – Protecting critical infrastructure. (Remote Testimony Available).
• HB 2394 – Public Hearing – Enhancing public safety and enforcement of crimes that impact insurance. (Remote Testimony Available).

Environment, Energy & Technology (Senate) – SHR 1 and Virtual J.A. Cherberg – 1/27 @ 1:30pm

• SB 6284 – Public Hearing – Providing consumer protections for artificial intelligence systems. (Remote Testimony Available).

State Government & Tribal Relations (House) – HHR E and Virtual JLOB – 1/27 @ 1:30pm

• HB 2408 – Exec Session – Improving government efficiency through amending and repealing obsolete statutory language.

Environment & Energy (House) – HHR B and Virtual JLOB – 1/27 @ 4:00pm

• HB 2537 – Public Hearing – Concerning emissions from emissions-intensive, trade-exposed facilities under the climate commitment act. (Remote Testimony Available).

Housing (House) – HHR C and Virtual JLOB – 1/27 @ 4:00pm

• HB 2266 – Exec Session – Encouraging permanent supportive housing, transitional housing, indoor emergency housing, and indoor emergency shelters.

Ways & Means (Senate) – SHR 4 and Virtual JACB – 1/27 @ 4:00pm

• SB 6229 – Public Hearing – Concerning taxation of a long-term capital gain of a section 1202 small business stock. (Remote Testimony Available).
• HB 1376 – Public Hearing – Concerning the prepayment of capital gains taxes six months prior to the due date. (Remote Testimony Available).

Civil Rights & Judiciary (House) – HHR A and Virtual JLOB – 1/28 @ 8:00am

• HB 2354 – Public Hearing – Concerning common interest communities. (Remote Testimony Available).
• HB 2095 – Exec Session – Protecting vulnerable users of public ways.

Environment, Energy & Technology (Senate) – SHR 1 and Virtual J.A. Cherberg – 1/28 @ 8:00am

• SB 6246 – Public Hearing – Concerning emissions from emissions-intensive, trade-exposed facilities under the climate commitment act. (Remote Testimony Available).

Labor & Workplace Standards (House) – HHR D and Virtual JLOB – 1/28 @ 8:00am

• HB 2372 – Exec Session – Concerning workers’ compensation benefits.
• HB 2191 – Exec Session – Concerning workers’ wages and benefits in the construction industry.

Local Government (House) – HHR E and Virtual JLOB – 1/28 @ 8:00am

• HB 2480 – Public Hearing – Concerning residential development in commercial and mixed-use zones. (Remote Testimony Available).

Technology, Economic Development, & Veterans (House) – HHR C and Virtual JLOB – 1/28 @ 8:00am

• HB 2503 – Exec Session – Regulating artificial intelligence training data.

Housing (Senate) – SHR 4 and Virtual JACB – 1/28 @ 10:30am

• SB 6069 – Public Hearing – Encouraging permanent supportive housing, transitional housing, indoor emergency housing, and indoor emergency shelters. (Remote Testimony Available).
• SB 6026 – Exec Session – Concerning residential development in commercial and mixed-use zones.
• SB 6001 – Exec Session – Concerning scissor stair regulations in the state building code.
• SB 6054 – Exec Session – Concerning unreasonable restrictions on wildfire home hardening practices in common interest communities.

Consumer Protection & Business (House) – HHR B and Virtual JLOB – 1/28 @ 1:30pm

• HB 2512 – Public Hearing – Prohibiting real estate brokers from marketing residential properties to an exclusive group of prospective buyers or real estate brokers. (Remote Testimony Available).

Appropriations (House) – HHR A and Virtual JLOB – 1/28 @ 4:00pm

• ESHB 1622 – Exec Session – Allowing bargaining over matters related to the use of artificial intelligence.

Business, Trade & Economic Development (Senate) – SHR 2 and Virtual J.A. Cherberg – 1/29 @ 8:00am

• SB 6289 – Public Hearing – Creating a statewide economic development and competitiveness strategic plan. (Remote Testimony Available).

Community Safety (House) – HHR D and Virtual JLOB – 1/29 @ 8:00am

• HB 2209 – Exec Session – Concerning sentencing enhancements for theft offenses, robbery, possessing stolen property, and trafficking stolen property.

Environment & Energy (House) – HHR B and Virtual JLOB – 1/29 @ 8:00am

• HB 2215 – Exec Session – Concerning climate commitment act compliance obligations for fuels supplied or otherwise sold into Washington.

Housing (House) – HHR C and Virtual JLOB – 1/29 @ 8:00am

• HB 2265 – Exec Session – Protecting tenants from periods of extreme heat.
• HB 2452 – Exec Session – Modifying requirements for service of rent increase notices.

Law & Justice (Senate) – SHR 4 and Virtual JACB – 1/29 @ 10:30am

• SB 6239 – Exec Session – Requiring arbitration for tort claims against the state of Washington and its subdivisions.
• SB 6190 – Exec Session – Protecting critical infrastructure.

Capital Budget (House) – HHR B and Virtual JLOB – 1/29 @ 1:30pm

• HB 2353 – Public Hearing – Concerning predesign thresholds. (Remote Testimony Available).

Finance (House) – HHR A and Virtual JLOB – 1/29 @ 1:30pm

• HB 1717 – Exec Session – Creating a sales and use tax remittance program for affordable housing.
• SHB 1859 – Exec Session – Expanding opportunities for affordable housing developments on properties owned by religious organizations.
• HB 2442 – Exec Session – Providing local governments tax resources and fund flexibility.

Local Government (Senate) – SHR 3 and Virtual JACB – 1/29 @ 1:30pm

• SB 6274 – Public Hearing – Concerning street standards and frontage improvement requirements. (Remote Testimony Available).

Appropriations (House) – HHR A and Virtual JLOB – 1/29 @ 4:00pm

• HB 2251 – Exec Session – Concerning climate commitment act accounts.

Transportation (Senate) – SHR 1 and Virtual J.A. Cherberg – 1/29 @ 4:00pm

• SB 6243 – Public Hearing – Concerning the operation of autonomous motor vehicles. (Remote Testimony Available).

Labor & Commerce (Senate) – SHR 1 and Virtual J.A. Cherberg – 1/30 @ 8:00am

• SB 6158 – Public Hearing – Adopting national standards for factory built housing and commercial structures. (Remote Testimony Available).

Civil Rights & Judiciary (House) – HHR A and Virtual JLOB – 1/30 @ 10:30am

• HB 2304 – Exec Session – Increasing the supply of condominiums by expanding the types of condominium buildings that may be subject to an express warranty of quality and express warranty insurance coverage.

Housing (Senate) – SHR 4 and Virtual JACB – 1/30 @ 10:30am

• ESB 5729 – Exec Session – Encouraging construction of affordable housing by streamlining the permitting process.
• SB 6091 – Exec Session – Prohibiting real estate brokers from marketing residential properties to an exclusive group of prospective buyers or real estate brokers.

Local Government (House) – HHR E and Virtual JLOB – 1/30 @ 10:30am

• HB 2451 – Exec Session – Concerning local tax increment financing.

State Government, Tribal Affairs & Elections (Senate) – SHR 2 and Virtual J.A. Cherberg – 1/30 @ 10:30am

• SB 6160 – Public Hearing – Improving government efficiency related to reports by state agencies. (Remote Testimony Available).

Finance (House) – HHR A and Virtual JLOB – 1/30 @ 1:30pm

• HB 2038 – Public Hearing – Establishing the youth behavioral health account and funding the account through the imposition of a business and occupation additional tax on the operation of social media platforms. (Remote Testimony Available).