SB 5805 amends Washington state law to transition the Yakima Valley School (a residential facility for people with developmental disabilities in Selah, Yakima County) from operating as a residential habilitation center to community-based services. It requires the state to establish state-operated living alternatives for residents moving to the community, up to eight crisis stabilization beds, and up to eight respite beds, all funded through the state budget. The bill also directs the state to provide mobile specialty services - such as dental care, therapy, and nursing - to former residents and others with developmental disabilities in the community. These changes aim to shift care from residential centers to community settings while maintaining service access within available funding.
HB 1137 establishes consistent rules for disciplinary actions and administrative segregation in Washington state correctional facilities. It standardizes procedures for handling inmate misconduct, defines key terms like "contraband" and "physical restraint," and requires individual reentry plans for incarcerated people. The bill directly affects inmates facing disciplinary hearings, correctional staff implementing policies, and facility operations. Key mechanisms include uniform criteria for segregation placement, clearer definitions to prevent arbitrary decisions, and linking privileges (like work programs) to documented "good conduct" and "good performance." This replaces inconsistent local practices with statewide standards under state law.
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.
House Bill 1758 revises the method for calculating the inflation rate used in state-owned aquatic land leases. The bill changes the economic index referenced from the "all commodity producer price index" to the "Seattle area consumer price index, all urban consumers (CPI-U)." This amendment directly affects the Department of Natural Resources and those who lease state-owned tidelands, shorelands, harbor areas, and beds of navigable waters. The purpose is to update the economic measure used for adjusting these lease rates.
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.
