SB 5264 modifies tax compacts between Washington State and federally recognized tribes by increasing revenue-sharing percentages for tribes that complete qualified capital investments. It directly affects tribes with existing compacts, requiring the state to pay them 100% of state sales/use tax revenue above a $500,000 annual cap (instead of 25%) on transactions not meeting "new development" requirements, starting in the fourth year after the compact's effective date. The bill also establishes processes for verifying capital investments, resolving disputes, and maintaining confidentiality of tax records. This change aims to incentivize tribal infrastructure projects while clarifying revenue distribution terms under current compacts.
HB 1785 imposes a surcharge on Washington-based publicly traded companies with CEO pay at least 50 times the median employee wage. The surcharge is 10% for ratios of 50-149:1 and 25% for ratios of 150:1 or higher, applied to state corporate taxes starting January 1, 2026. Companies must disclose their executive pay ratio to the SEC (per Dodd-Frank Act); failure to report triggers the 25% rate. All revenue from the surcharge funds the state general fund.
HB 1348 allows cannabis businesses in Washington to be fully or partially owned by employee stock ownership plans (ESOPs), enabling employees to gain ownership stakes. It directly affects cannabis businesses seeking licenses and employees participating in ESOPs by changing who must undergo licensing vetting. The key provision revises licensing rules to require only corporate officers/directors of ESOP-owned businesses to be vetted - employees, ESOP administrators, and trustees are exempt from criminal background checks, residency requirements, and other owner-level screenings. This simplifies the licensing process while maintaining oversight of business control. The bill aims to align cannabis business ownership with other industries that use ESOPs for employee engagement and wealth-building.
SB 5753 establishes a 12-member task force to study how Washington State could expand public housing as a solution to the housing crisis. The task force will examine funding options, public land use, UN housing standards, and governance changes needed to develop mixed-income housing, with a focus on affordability for low-income residents and communities of color. It must submit preliminary and final reports to the legislature by July and November 2026, respectively, including recommendations for creating publicly owned housing that meets international adequacy standards. This bill does not fund or build housing but creates a study group to develop a strategy for future action.
HB 1469 delays the implementation deadline for updated substance use disorder treatment criteria in Washington State Medicaid programs. It changes the required adoption date from January 1, 2026, to January 1, 2028, for Medicaid health plans and insurers. The bill requires the Health Care Authority and Insurance Commissioner to jointly decide whether to adopt new American Society of Addiction Medicine (ASAM) criteria and set implementation dates. This extension provides more time for providers to adjust to updated treatment standards without altering the criteria themselves.
SB 5389 changes how Washington State distributes revenue from liquor sales to local governments by repealing the previous distribution method (RCW 66.24.065) and establishing new rules. It requires quarterly distributions (June, September, December, March) of excess liquor revenue: 0.3% to border areas, with the remainder split as 50% to the state general fund, 10% to counties (based on unincorporated population), and 40% to incorporated cities and towns. Counties where liquor sales are banned in unincorporated areas by election are excluded from county distributions. The bill directly affects all local governments receiving these funds, including border areas, counties, and cities/towns.
SB 5064 establishes an advisory council on rare diseases within the University of Washington School of Medicine to advise Washington's Secretary of Health. The council, composed of 12 members including clinicians, rare disease patients, caregivers, patient advocates, and industry representatives, must ensure geographic representation across the Cascade Mountains. It will focus on improving research, diagnosis, treatment, and public education about rare diseases, identify effective care strategies, and recommend creating a centralized online resource for patients. The council must submit biennial reports to the legislature starting in 2026, but it serves only in an advisory capacity without overriding local health authority.
HB 1998 clarifies which investment income businesses can deduct when calculating Washington state's business and occupation tax. It specifically allows deductions for income from investments like stocks, bonds, and interest between related entities (if under 5% of gross receipts), while excluding income from banking, lending, factoring, or credit extensions. The bill defines key terms like "banking business" and "investment" to resolve recent legal uncertainty after a court case created confusion about deductible income. It applies retroactively to past tax years but does not create new refund rights for taxes already paid.
HB 1966 updates Washington state public works contracting rules for local governments. It sets new cost thresholds requiring competitive bidding: $30,000 for materials, $75,500 for single-trade labor, and $150,000 for multi-trade labor projects. The bill introduces unit-priced contracts for recurring work (like routine maintenance) with fixed hourly rates, annual wage updates, and a three-year maximum term. These rules directly affect cities, counties, and contractors managing public infrastructure projects such as roads, utilities, and street lighting.
SB 5610 creates a dedicated account to cover federal compliance costs for Washington's horse racing industry. It allows the Horse Racing Commission to collect fees from the industry to pay federal fees under the Horseracing Integrity and Safety Act, and requires annual transfers of specific tax revenues from class 1 racing associations (like those from parimutuel and sales taxes) into this account. The funds can only be used to pay federal regulatory fees or direct compliance costs, not for general state purposes. This bill directly affects horse racing associations that collect these taxes and the state treasurer, who handles the fund transfers. The account is restricted to federal compliance costs, with no tax credit or new taxes created.
SB 5044 allows public employers in Washington to negotiate with employee unions over contributions for supplemental retirement benefits (such as medical plans) that are administered by or on behalf of employee organizations. This bill amends state law to explicitly permit bargaining on contribution levels for these supplemental benefits, while still keeping core retirement plans and benefits administered by the Department of Retirement Systems off-limits to negotiation. The change directly affects public employees covered under Washington's retirement systems who participate in supplemental benefit programs. The policy shift clarifies that contributions for these specific supplemental benefits - distinct from basic pension plans - are subject to collective bargaining.
HB 1377 declares a state of emergency for Washington State Ferries due to delays in procuring new electric ferries, creating a backup plan if spring 2025 contracts fail. It authorizes the governor to declare an emergency, allowing the department to bypass standard procurement rules to expedite buying at least two nonhybrid electric ferries for delivery within two years - using existing Olympic-class designs to avoid new engineering. The bill also directs postponing conversions of certain vessels to prioritize operational reliability and requires warranty work to be done within Washington state when possible. This directly affects Washington State Ferries' procurement process and the public relying on ferry services.
