Transcript Highlights:

• But, you know, when we do sales tax exemptions, it's like it's for everybody.
• Large venues have to have bathrooms, but those aren't exempt from property taxes.
• Those aren't creating any income, but they're not property tax exempt.
• And also, as we always say with property tax exemptions, when we are exempting other people, we are not
• when we are with property tax exemptions when we are exempting<01:23:29.400><c> other</c><01:23:29.639

Committee: House Taxes

Transcript Highlights:

• Organic compounds are measured in their molecular structure weight, and their molecular weight is then
• So we're not talking about a CEQA exemption.
• prevent greenfield developments from being able to take advantage of the exemption.
• prevent greenfield developments from being able to take advantage of the exemption.
• The commission's recommendation, exemption. AB 609 does exactly this.

Summary: The committee hearing centered first on AB 1243, the Polluters Pay Climate Superfund Act of 2025, which would direct CalEPA to identify major fossil fuel companies, study California’s climate damages, and assess fees on the largest polluters to fund resilience, recovery, and related projects. The author and supporters argued the bill would make polluters help pay for climate harms, protect taxpayers, create jobs in construction and clean energy, and dedicate at least 40% of funds to disadvantaged communities. Support testimony came from environmental justice groups, labor, youth advocates, health organizations, and many individual witnesses, while opponents from the building trades, chambers of commerce, petroleum, and business groups warned it would raise fuel and consumer costs, threaten refinery jobs, and create legal and economic uncertainty. Committee members debated the bill’s impact on affordability, jobs, refinery closures, and whether cap-and-trade already addresses climate funding needs. The committee ultimately voted to give AB 1243 a due pass recommendation to the Judiciary Committee, with the roll left open. After AB 1243, the committee moved to another bill on wildfire mitigation and related resilience work. The author said the measure addresses a long-running wildfire problem and accepted committee amendments, describing the bill as a response to increasingly severe wildfire seasons and the need to help communities stay safe and rebuild after disasters. The transcript cuts off as that presentation begins, so no final action on the second bill is shown in the excerpt.

Transcript Highlights:

• I'm not disagreeing with anything except a gross percent you made. All right, I hear you.
• Because the UK really pays three times less than we do for a weight loss drug that I probably need to
• Because the UK really pays three times less than we do for a weight loss drug that I probably need to
• example would be Humira, a very expensive, one of the most expensive drugs in the world, highest grossing

Committee: House Insurance

Summary: The House Insurance Committee met on April 1 with a quorum present and first took up House Bill 938 by Rep. Turner, which would overhaul pharmacy benefit manager (PBM) regulation by setting a flat administration fee, requiring dispensing fees and NADAC-based reimbursement, mandating rebate pass-through, giving the Department of Insurance access to PBM data, and creating a reverse-auction process for PBM procurement. Turner said the bill is intended to level the playing field for independent pharmacies, improve transparency, and reduce hidden PBM practices. The committee adopted amendment set 1444 without objection, and Turner said additional conceptual amendments were still being worked on. Supporters included independent pharmacies and the PBM Accountability Project; opponents included union plan representatives, benefits consultants, and PBM/insurance industry witnesses who warned of higher costs, ERISA preemption problems, and likely litigation. After extended questioning on cost, preemption, and vertical integration, the committee reported HB 938 with amendments. The committee then considered House Bill 870, also by Rep. Turner, dealing with formulary placement and cost-sharing for generic drugs and biosimilars and limiting certain utilization management practices. Amendment set 1540 was adopted, revising and tightening technical definitions. Turner and a representative of the Association for Accessible Medicines argued the bill would help lower-cost generics and biosimilars gain market share and reduce patient costs, citing examples such as insulin and Humira biosimilars. Opponents from Louisiana Blue said the bill would force coverage based on wholesale acquisition cost rather than net cost, would raise premiums for fully insured members, and would mandate coverage of drugs that are not always the lowest net-cost option. Rep. Jordan again raised ERISA and preemption concerns, and committee members discussed whether the bill would interfere with tiering and plan design. After closing comments and a motion by Rep. Glorioso, HB 870 was reported with amendments, and the committee adjourned.

Transcript Highlights:

• There's corporate branding exemptions.
• If all those entities that are eligible for the exempt...
• Them are exempt from this bill.
• It's a gross... all the reward on the backs of your taxpayers. It's a gross misuse of power.
• Why is Jersey City exempt? I believe everyone here... Why is Jersey City exempt?

Transcript Highlights:

• towards</c><00:18:46.480><c> those</c> The weight will shift towards those The weight will shift towards
• in the 20%, 10%, you know, exemption in the bill.
• in the 20%, 10%, you know, exemption in the bill.
• ><c> be</c><01:10:33.600><c> administered</c> exemptions would need to be administered exemptions would
• They call them exemptions or credits.

Committee: House Ways and Means

Transcript Highlights:

• And gross substitute Senate Bill 6346 relates to taxes on persons with income over a million dollars.
• In order to determine a person's Washington taxable income, it starts with the federal adjusted gross
• bill specifies that income excluded from the federal AGI, including tribal treaty income, is also exempt
• All the new tax preferences created in the bill are exempt from the automatic 10-year expiration date
• A standard deduction is not an exemption. Everybody understands this from your federal taxes.

Committee: House Finance

Transcript Highlights:

• your gross misdemeanor, then you're good.
• Yes, the bill provides that a gross misdemeanor, if there is a gross misdemeanor, then the candidate
• just go ahead and vacate your gross misdemeanor, and then you're good.
• If there is a gross misdemeanor, go ahead and vacate it.
• Additionally, the existing gross misdemeanor that under current law prohibits...

Summary: The House Community Safety Committee met on February 23, 2026, with a compressed schedule and limited testimony time. Members first heard Second Substitute Senate Bill 5974, which would set eligibility standards for sheriffs, police chiefs, and marshals, require background checks for sheriff candidates through the Washington State Patrol, regulate volunteers and youth cadets, and create a vacancy in office if an elected law enforcement official is finally decertified or fails statutory eligibility requirements. Supporters, including Senator Lovick and several advocacy groups, said the bill promotes accountability and professionalism. Opponents, including the sheriffs of Walla Walla and Spokane counties, argued it imposes unfunded mandates, conflicts with voter sovereignty and recall procedures, and could create problems for rural counties and volunteer use. The committee later took executive action and reported the bill out with a do pass as amended recommendation, 6-2 with one excused. In executive session, the committee also acted on Engrossed Senate Bill 5068, which expands law enforcement hiring eligibility to people legally authorized to work in the United States. A striking amendment clarified that agencies are not liable for employment discrimination claims if hiring is impracticable, allowed applicants who cannot yet possess weapons to apply if they can possess them when hired, and made technical changes. Representative Burnett raised concerns about background investigations, foreign-country vetting, oath of office, and firearm issues, but the committee adopted the striker and then reported the bill out as amended on a 6-2 vote with one excused. The committee also considered Substitute Senate Bill 5855, which prohibits law enforcement officers from wearing facial coverings while interacting with the public except in specified circumstances and creates a civil cause of action. Amendments added an intent section, expanded exceptions for health and safety equipment under OSHA/WISHA, and proposed stronger prosecutorial language, though two amendments were rejected. The bill was then reported out as amended on a 6-2 vote with one excused. The committee then held public hearings on several bills. Engrossed Senate Bill 5890 would expand reckless driving to include driving more than 30 miles per hour over the posted speed limit, and 20 miles per hour over in active construction zones when workers are present; law enforcement, prosecutors, traffic safety officials, and construction industry representatives testified in support. Substitute Senate Bill 5936, a Uniform Law Commission proposal on human trafficking, would allow prosecution of businesses that knowingly engage in or profit from trafficking, strengthen victim confidentiality, and improve U and T visa certification procedures; testimony was overwhelmingly supportive, with one witness urging caution about unintended consequences for businesses that report trafficking. Finally, Engrossed Second Substitute Senate Bill 6070 would expand missing-person response tools by allowing certain surveillance devices to be used for community caretaking to locate missing endangered persons, create Ebony and Purple Alerts, transfer the missing persons website to the State Patrol, and add a public records exemption. Testimony strongly supported the alert provisions, especially for people with disabilities, while one privacy advocate objected to the surveillance provisions as an overreach.

Transcript Highlights:

• So again, in engrossed House Bill 2487, as a quick recap, the bill specifies that the B&O tax exemption
• Also, the tax impact resulting from the exemption changes to the ACS for insurers is negative.
• If 50% or more of the worldwide gross revenue of the affiliated group is from insurance premiums, If
• 50% or more of the worldwide gross revenue of the affiliated group is from insurance premiums.
• claim the B&O exemption.

Bills: HB2487

Committee: Senate Ways & Means

Keywords: insurance tax, state regulation, insurers, taxation, budget impact

Transcript Highlights:

• So again, in engrossed House Bill 2487, as a quick recap, the bill specifies that the B&O tax exemption
• Also, the tax impact resulting from the exemption changes to the ACS for insurers is negative.
• gross revenue of the affiliated group is from insurance premiums.
• It modifies the B&O tax exemption to conform with the court decision, thereby allowing affiliates to
• claim the B&O exemption.

Summary: The Ways and Means Committee met in executive session on March 10, 2026, and first reviewed engrossed House Bill 2487, which concerns taxes imposed on insurers. Staff explained the bill’s B&O tax exemption changes, the advanced computing surcharge adjustments, and the preliminary fiscal note. Amendment 1 had been withdrawn before action. The committee then considered and rejected Amendment 2, which would have further lowered the surcharge cap; Amendment 4, which would have removed retroactivity for tax payments; and Amendment 5, a striking amendment that would have conformed the B&O exemption to a court decision and removed the advanced computing surcharge provisions. The committee then advanced HB 2487 to the Rules Committee with a due pass recommendation. The committee next took up Substitute House Bill 2689 on the Working Connections Child Care Program. Staff described the bill’s changes to attendance-based reimbursement, rate-setting, and eligibility, with an estimated four-year savings of $565 million. Amendment 6, offered by Senator Wilson, was adopted and changed the market rate survey response threshold by delaying the 65% requirement and allowing validity with lower response rates under certain conditions. Amendment 7, offered by Senator Robinson, was also adopted and revised the attendance reimbursement tiers, with staff indicating it would increase projected savings to about $770 million over four years. The amended bill was then moved to the Rules Committee with a due pass recommendation. Finally, the committee considered engrossed House Bill 2681, which raises annual issuance and renewal fees for cannabis producer, processor, and retail licenses by $400. Staff said the bill would increase deposits to the dedicated cannabis account by about $866,000 per year, or $2.6 million over four years. With no amendments offered, the committee approved HB 2681 and sent it to the Rules Committee with a due pass recommendation. The meeting ended with thanks to staff and adjournment.

Transcript Highlights:

• has to hear bills, I would entertain a motion to waive the five-day notice rule in considering in gross
• substitute House Bill 1705 and in gross substitute House Bill 32010.
• We will now consider in gross substitute House Bill 2219. We'll hear that first.
• And so I feel that a school resource officer shouldn't have that exemption, right?
• I shouldn't have that exemption. So my question to you is, are you open to these suggestions?

Summary: The committee opened by explaining that several bills had been removed from the agenda because the Senate must physically possess a bill before holding a public hearing. The chair said the missing bills would be rescheduled for Tuesday. The committee then waived the five-day notice rule for considering substitute House Bills 1705 and 32010, and proceeded to hear substitute House Bill 2219 and substitute House Bill 1795. House Bill 2219, on child care operational efficiency, would allow longer mixed-age ratio periods in child care centers, waive repeat DCYF orientation requirements in certain cases when staff have recently completed the same training, and require licensing standards to include a zero-tolerance policy for imminent physical harm involving high-potency synthetic opioids and related drug residue or paraphernalia. The prime sponsor and supporters said the bill would help child care providers manage staffing shortages, take breaks, and reduce duplicative licensing burdens. Testimony was strongly supportive, with advocates and providers describing the bill as a low-cost way to improve retention and flexibility. Questions focused on how the fentanyl language would apply to prescribed medications. House Bill 1795 would narrow and update state law on restraint and isolation in public schools and other public educational programs. The bill prohibits mechanical and chemical restraints and restraints that restrict breathing or blood flow, bars planned isolation in IEPs and 504 plans, limits planned restraint to cases with parent request and medical necessity, and prohibits new construction or remodeling of spaces intended primarily for student isolation. Supporters, including disability advocates, educators, school psychologists, principals, and state education groups, said the bill is a needed step toward reducing trauma and disproportionality and cited demonstration sites showing reductions in restraint and isolation. Some educators and paraeducators raised concerns about staffing, training, and what tools remain available in crisis situations, while others asked for future work on professional development and resources. No vote was taken on either bill during the hearing.

Transcript Highlights:

• As you know, the current property tax exemption for solar expires at the end of the year.
• Nevada also provides a renewable energy tax abatement of 55%, and Oregon has an exemption if the project
• -flag international shipping companies that are exempt under the federal tonnage tax system.
• Existing property tax law provides a welfare exemption that... California.
• to those income levels, similar to how the exemption currently works for low-income housing.

Summary: The committee heard and advanced several tax and revenue measures, beginning with SB 1329 on solar property tax assessment. The author and solar industry witnesses argued the bill would create a uniform statewide method, provide certainty for developers, and exclude tax credits and other intangibles from valuation; county assessors and several counties opposed it, saying it would reduce assessed value and depart from market-based appraisal. The bill was moved to Appropriations on a 2-0 vote and placed on call. The committee also heard SB 1406 to close the “Montana tax loophole” used to avoid California vehicle taxes, with support from the California Teachers Association and no registered opposition; it passed 2-0 and was placed on call. SB 984, conforming California law to the federal tipped-income deduction, drew support from the restaurant industry, Howard Jarvis Taxpayers Association, and enrolled agents, and passed 3-0 to Appropriations, on call. Later, the committee considered wildfire- and energy-related tax credits. SB 1084 would create a fire-safe home tax credit for home hardening and defensible space improvements; supporters said it would reduce wildfire losses and insurance costs, and it passed 3-0 on call. SB 1118 would provide credits for backup generators and solar battery systems in high fire-threat areas; the author framed it as a resilience measure for households and small businesses, but members raised concerns about cost, diesel use, and whether the credit would reach lower-income households. The bill was moved 1-0 and placed on call, with the chair and other members noting unresolved budget and policy concerns. SB 1424, expanding a partial sales tax exemption to zero-emission vehicle refueling equipment, received support from hydrogen and electric transportation groups and passed 4-0 on call. The committee also advanced SB 1249, a senior tax deduction for taxpayers ages 86 to 90, with support from LeadingAge California and senior advocates; members noted it was narrowly targeted and passed 4-0 on call. SB 1113, conforming California tax law to the federal tonnage tax regime for U.S.-flag international shipping companies, drew support from maritime industry groups and opposition from ILWU over the fiscal impact; it passed 4-0 on call. SB 1137, the Medical Expense Deduction Act, would allow a targeted deduction for medical expenses for lower-income taxpayers; supporters said it would help families facing high out-of-pocket costs, and it passed 4-0 on call. Finally, SB 1415 would extend a partial welfare property tax exemption to mixed-income housing that includes moderate-income units; supporters said it would help finance “missing middle” housing, while assessors and housing stakeholders requested amendments and guardrails. The bill was also moved forward on a committee vote and placed on call.

Transcript Highlights:

• As you know, the current property tax exemption for solar expires at the end of the year.
• Nevada also provides a renewable energy tax abatement of 55%, and Oregon has an exemption if the project
• The credit is limited to designated wildfire zones and to small businesses with average gross receipts
• Extending a partial welfare property tax exemption to rental housing that includes units for both low
• to those income levels, similar to how the exemption currently works for low-income housing.

Committee: Senate Revenue and Taxation

Transcript Highlights:

• Yes, the bill provides that a gross misdemeanor, if there is a gross misdemeanor, then the candidate
• just go ahead and vacate your gross misdemeanor, and then you're good.
• If there is a gross misdemeanor, go ahead and vacate it.
• If there is a gross misdemeanor, go ahead and vacate it, and then you're eligible.
• There is an exemption added to the Public Records Act for those documents.

Committee: House Community Safety

Transcript Highlights:

• </c> section is guilty of a gross section is guilty of a gross misdemeanor. misdemeanor. misdemeanor.
• </c><00:21:04.799><c> Representative</c> gross misdemeanor? Representative gross misdemeanor?
• Is the that, it is a gross misdemeanor.
• I feel the weight of every question my kids haven't asked yet.
• Um, and if Weight Park Community School.

Transcript Highlights:

• You could weight them differently based on the data, all of that.
• So when we first came into this market, the gross peak is what we were solving for.
• Unfortunately, this exemption required that a transmission study had been completed.
• The 12CP approach that the commission is looking at will weight some periods that are off-peak.
• The answer why we can't string 765 kV on 345 kV towers is a sheer weight engineering issue.

Summary: The Senate Business and Commerce Committee held its third interim hearing on Texas electric grid reliability and 765 kV transmission lines/private property rights. Chair Schwertner opened by noting record ERCOT summer demand of 91,089 MW and emphasized the committee’s focus on managing rapid load growth, ensuring adequate generation, and protecting homeowners, businesses, landowners, and ratepayers. The committee also adopted strict two-minute limits for public testimony and planned to hear invited witnesses first, then public testimony. PUC Chairman Thomas Gleeson, ERCOT CEO Pablo Vegas, and OPUC Chief Counsel Benjamin Barclay testified on Senate Bill 6 implementation, large-load interconnection, transmission cost allocation, and market design. Gleeson said the PUC has adopted or is finalizing rules on net metering/co-location, large load interconnection standards, and a transmission cost recovery rule that would move from 4CP to 12CP, lengthen the interval to 30 minutes, and add a minimum demand charge to better allocate costs to large loads. Vegas explained ERCOT’s new batch process for large loads, saying it provides year-by-year capacity allocations, clearer financial obligations, and a transmission plan; he reported 205 GW eligible for Batch Zero, with 65 GW classified as baseload, 25 GW in an intermediate category, and 114 GW as allocated load. Barclay supported the changes as better protection for residential and small commercial customers, while warning that the minimum demand charge may need an exit-fee concept to address stranded costs if large loads leave. Members pressed witnesses on whether additional market changes are needed to attract dispatchable thermal generation and whether DRS/DRRS Plus could become a capacity-market substitute. Gleeson and Vegas said the current market still favors solar, batteries, and other low-variable-cost resources, and that more incentives may be needed for gas and other thermal generation; Gleeson said the commission’s reliability standard assessment will begin this year and conclude next year with a 2029 outlook. They described DRS as an ancillary service for intraday reliability and DRS Plus as a proposed real-time revenue mechanism for thermal resources during scarcity, not a forward capacity market. Senators also questioned whether 12CP could still be gamed, whether curtailment authority under SB 6 should be expanded from EEA 2 to earlier stages, and whether the batch process should be bifurcated so traditional industrial loads are handled differently from data centers. Witnesses said the batch process is intended to prevent speculative projects from driving transmission costs, that most large-load projects are data centers, and that future rules may need to better distinguish among types of large loads.

Transcript Highlights:

• And Gross Second Substitute House Bill 2251.
• In gross second substitute House Bill 2251.
• bank authorities and in lieu excise tax exemptions for property...
• However, any exemptions from environmental review is not acceptable.
• Previous versions of the bill tried to address SEPA exemptions.

Summary: The committee took up executive action on the capital budget, Proposed Substitute Senate Bill 6003, and several policy bills. Staff described amendments to the capital budget that shifted funding among behavioral health, local/community projects, irrigation projects, and juvenile rehabilitation capacity, plus a technical fix to the water pollution control revolving program. The committee adopted Senator Dozier’s budget-neutral amendment and a technical amendment, then advanced the amended capital budget to the Rules Committee. It also moved House Bills 2441, 2124, 2471, 2133, 2610, and 2338 forward with due-pass recommendations, and advanced Engrossed Second Substitute House Bill 2251 on Climate Commitment Act accounts to the Transportation Committee after adopting two amendments and withdrawing three others. A major public hearing focused on Engrossed Second Substitute House Bill 2034, which would terminate and restate LEOFF Plan 1 in 2029, transfer surplus assets, and direct portions to the Climate Commitment Account and the pension funding stabilization account. Staff said the plan is currently about 160% funded and explained the bill’s IRS-review process, statute of limitations, and estimated implementation costs. Testimony was sharply divided: some retirees, firefighters, counties, and cities opposed the bill as an improper use of pension assets and urged benefit enhancements or protection of local medical obligations, while others supported using the surplus for broader public purposes. No vote was taken on the bill during the hearing. The committee also heard House Bill 2179 on PERS coverage for certain port workers, with ports and the Washington Public Ports Association supporting clarification for railroad employees covered by the federal railroad retirement system. House Bill 1069, allowing Department of Corrections employees to bargain over supplemental retirement benefits, drew support from Teamsters and corrections workers, while House Bill 2091, expanding employee-information sharing with bargaining representatives, drew union support and privacy objections from Washington Policy Center. Finally, Second Engrossed Substitute House Bill 1210 on targeted urban area tax preferences drew support from labor, local governments, and project proponents, and opposition from contractor groups and environmental advocates over project labor agreement requirements and nuclear-related concerns; Engrossed Substitute House Bill 1408 on community preservation and development authorities and Engrossed Second Substitute House Bill 1974 on land bank authorities for affordable housing were also heard, with both receiving supportive testimony from community and housing advocates.

Transcript Highlights:

• North Dakota Century Code does create an exemption there.
• There are many exemptions, to be perfectly honest, on the property tax front.
• There is a long list of exempt properties.
• They get the farm resident credit exemption. They get the farm resident credit exemption.
• Whether it's trust, whether it's exempt because it's a tribal entity, that's our issue.

Committee: Joint Tribal and State Relations Committee

Transcript Highlights:

• New Hampshire is not exempt from this.
• what the weight list is intended to cover. cover. cover.
• </c> the developmental disability weight the developmental disability weight list,<01:14:42.719><c> eliminating
• </c> services, the need to fund the weight services, the need to fund the weight list,<01:48:21.119><
• </c><01:48:49.920><c> list</c> specifically um support the weight list specifically um support the weight

Committee: Senate Finance

Transcript Highlights:

• But removing electricity from these data center sales tax exemption is non-negotiable.
• </c><00:13:03.839><c> is</c> sale data center sales tax exemption is sale data center sales tax exemption
• Going to the next page, we have the changes to the cannabis gross receipts tax.
• is tax-exempt, and that be very clear in one approach.
• exemptions exemptions uh<01:31:56.639><c> for</c><01:31:56.960><c> the</c><01:31:57.520><c> um</c><01

Transcript Highlights:

• Organic compounds are measured in their molecular structure weight, and their molecular weight is then
• So we're not talking about a CEQA exemption.
• So, well, we're not talking about a CEQA exemption.
• prevent greenfield developments from being able to take advantage of the exemption.
• But this bill is about the exemptions for CEQA. Yes. All right, thank you. Mr. Garcia.

Committee: House Natural Resources

Summary: The committee heard extensive testimony on AB 1243, the Polluters Pay Climate Superfund Act of 2025, which would direct CalEPA to identify major fossil fuel companies, study California’s climate damages, and assess fees on large polluters to fund resilience, recovery, and related projects. The author and supporters argued the bill would shift costs from taxpayers to the companies most responsible for climate harm, while dedicating funding to disadvantaged communities, home hardening, school resilience, clean energy, and jobs. Supporters included environmental justice groups, health advocates, youth activists, labor-aligned climate groups, and many individual witnesses who described climate impacts in their communities and urged polluters to pay. Opposition came primarily from the building trades, business groups, and petroleum-related organizations, who argued the bill would raise fuel and consumer costs, create uncertainty for business, and accelerate refinery closures and job losses. They said California already has cap-and-trade, which they described as a better tool for funding climate action and reducing emissions, and warned that retroactive liability for past emissions was legally and economically problematic. Committee members questioned both sides on consumer impacts, job effects, and whether cap-and-trade already addresses the problem. After discussion, the committee voted 6-1 to pass AB 1243 to the Judiciary Committee, with Assembly Member Ellis voting no and Assembly Member Muratsuchi not voting. The chair and members noted the bill would continue to be discussed, and the author closed by emphasizing the need to fund climate resilience while holding polluters accountable. The transcript then began a separate presentation on a wildfire mitigation bill, with the author introducing committee amendments and describing wildfire prevention and recovery needs, but that item was not completed in the excerpt.