Transcript Highlights:

• The first two options are sometimes referred to as REET 1 and REET 2.
• The first two options are sometimes referred to as REET 1 and REET 2, both of which have a tax rate of
• And then lastly, there is a REET for affordable housing.
• Since you've already been briefed about local REET... ...real estate excise tax, also known as REET.
• Since you've already been briefed about local REET by Jeff, I'll just end for REET-2.

Bills: SB6294, SB6211, SB5650, SB6033, SB6297, SB6343, SB6067, SB6082, SB6323, SB6324, SB5862, SB5923, SB6151

Keywords: local government finance, Washington state, RCW, real estate excise tax, REET, sales and use tax, property tax levy, county tax, city tax, affordable housing, housing services, behavioral health, mental health, developmental disabilities, children and families services, youth services, utility tax, low-income utility assistance, veterans assistance, homelessness

Summary: The Ways and Means Committee held a public hearing on several bills, beginning with Substitute Senate Bill 6026, which would require cities and counties over 30,000 population to allow residential uses in commercial and mixed-use zones, with limits on requiring mixed-use or ground-floor retail and some height flexibility where such requirements are imposed. Committee staff described the bill as governor-request legislation with a fiscal note for Department of Commerce implementation and local zoning updates. Lieutenant Governor Denny Heck testified in strong support, calling it a major housing bill that would add needed capacity without burdening housing with retail requirements. The committee then suspended the hearing and moved to other bills on the agenda. Senate Bill 6294 drew extensive testimony. Staff said it would expand local fiscal tools in eight parts, including broader uses for certain REET revenues, a new option for cities to impose the affordable housing REET with voter approval, a county utility tax, a new local sales tax for children and family services, expanded uses for existing housing sales tax revenues, possible standalone county veterans and behavioral health levies, longer voter-authorized levy lid lifts, and expanded uses for rental car tax revenue. Supporters from cities, counties, housing, and public health groups said the bill would provide needed flexibility for housing, child care, public health clinics, and county budgets. Opponents, including wireless, water and sewer, auto dealer, realtor, and energy industry representatives, objected to the county utility tax, the new sales tax, or the REET provisions, citing regressivity, higher costs, and housing affordability concerns. The committee also heard Substitute Senate Bill 5400 on local news sustainability, which would create a Department of Commerce grant program funded by a surcharge on covered tech platforms, with revenue also supporting the Murrow Journalism Fellowship at Washington State University. News organizations, civic groups, and journalism advocates testified that local news is in decline and that the bill would help preserve reporting jobs and community accountability, while technology industry representatives warned of legal risks and argued the bill unfairly targets online platforms. Other bills heard included SB 6211, which would let voluntarily planning GMA jurisdictions impose REET-2 without voter approval; SB 5650, which would authorize local cannabis excise taxes, drawing support from local governments and opposition from cannabis businesses that said the industry is already overtaxed; SB 6033, which would waive penalties and interest for certain taxpayers who failed to collect new retail sales tax on services, supported by small business advocates; SB 6297, which would exempt temporary staffing services for nonprofit behavioral health entities from sales tax, supported by behavioral health providers; and SB 6343, which would extend and expand tax relief for property damaged by natural disasters, with support from local officials in flood-affected communities.

Transcript Highlights:

• First of all, I would say, again, REET affidavits are filed at the county level.
• It's just part of the overall selling price of the property that they will pay REET on.
• First of all, I would say, again, REET affidavits are filed at the county level.
• It's just part of the overall selling price of the property that they will pay REET on.
• It's just part of the overall selling price of the property that they will pay REET on.

Summary: House Finance met on February 26 and heard several tax and housing-related bills. Substitute Senate Bill 6343 would extend the deadline to apply for a property tax exemption for improvements to single-family homes damaged by natural disasters, with sponsors citing recent flooding and the need to help displaced homeowners in multiple counties. Local officials from Kent and Algona testified in support, describing flood damage and ongoing recovery needs. The bill was heard but no vote was taken. Senate Bill 6347 would roll back the higher estate tax rates enacted in 2025, while leaving the higher exemption amount in place. Committee staff said the bill would reduce revenue to the Education Legacy Trust account by about $44.8 million starting in fiscal year 2027 and about $389.9 million over the 2027-29 biennium. Supporters argued the higher rates could harm family businesses and encourage wealthy residents to leave; opponents said the bill would mainly benefit very large estates and would worsen budget pressures by reducing funds for education and child care. Public testimony was mixed, and the bill was heard without action. The committee also heard Senate Bill 6244, which would extend a hazardous substance tax exemption for agricultural crop protection products stored in Washington for out-of-state sale until 2038. The sponsor and a logistics witness said the exemption helps farmers get products faster, supports regional distribution, and improves competitiveness; staff said the revenue impact would be small. Finally, Senate Bill 6114 would define “fixture” and “affixed” for real estate excise tax purposes to make tax treatment of attached property clearer, and Senate Bill 6027 would broaden allowable uses of several local affordable housing funding sources, including rehabilitation and operations of existing housing, rental assistance in some counties, and expanded uses for Affordable Housing for All grants. Both of those bills drew support from state and local housing officials and advocates, and the committee adjourned after the hearings with no recorded votes.

Transcript Highlights:

• We didn't change it in the REET to make it clear that the REET would be applied under the same definition
• , and giving them the certainty in what that REET rate will be is very important.
• , and giving them the certainty in what that REET rate will be is very important.
• , and giving them the certainty in what that reet rate will be is very important.
• And we are removing one of the financial benefits of a REET exemption.

Bills: HB1160, HB1289, HB1339, HB1798, HB1065, HB1795, HB2107, HB2113, HB2124, HB2125, HB2133, HB2134, HB2140, HB2185, HB2191, HB2205, HB2211, HB2219, HB2245, HB2253, HB2283, HB2343, HB2406, HB2501, HB2531, HB2574, HB1170, HB1544, HB1834, HB2156, HB2188, HB2206, HB2360, HB2471, HB2478, HB2525, HB2605, HJM4012, HB1104, HB1152, HB1254, HB1443, HB1710, HB1750, HB1903, HB1941, HB1974, HB1982, HB1983, HB2006, HB2034, HB2105, HB2179, HB2203, HB2215, HB2223, HB2239, HB2247, HB2297, HB2303, HB2322, HB2329, HB2334, HB2338, HB2345, HB2348, HB2350, HB2353, HB2355, HB2363, HB2367, HB2379, HB2388, HB2399, HB2418, HB2420, HB2428, HB2441, HB2462, HB2464, HB2467, HB2495, HB2505, HB2534, HB2539, HB2544, HB2551, HB2554, HB2557, HB2575, HB2577, HB2588, HB2594, HB2604, HB2636, HB2714

Keywords: design review, local government, land use, zoning, project permits, housing density, middle housing, affordable housing, parking minimums, single-family zoning, infill development, growth management, comprehensive plan, permit streamlining, objective development regulations, architectural review, administrative review, transit-oriented development, accessory dwelling units, ADU

Summary: The House took up several bills on second and third reading, beginning with House Bill 2360 on expanding access to albuterol in public and private schools. A motion to recommit the bill to the House Health Care and Wellness Committee failed on a roll call vote, 38 yeas to 56 nays. Supporters said the bill would help school nurses respond to students in respiratory distress and reflected input from nurses, OSPI, and the Department of Health. Opponents raised concerns about training, drug interactions, follow-up care, costs to districts, and schools making medical decisions without a diagnosis. The bill then passed 60-34. House Bill 2467, clarifying measurement rules for fifth-wheel travel trailers, passed 94-0 after sponsors said it would help Washington dealers and consumers. House Bill 1983, relating to timberland tax treatment when land is sold to DNR, passed 68-26 amid debate over whether it would help forest management or make it easier for DNR to acquire timberland. House Bill 2531, updating ambulance transport fund quality assurance rules to align with federal regulations and preserve matching funds, passed unanimously 94-0. The House also passed Substitute House Bill 1390, which phases out the Community Protection Program for certain developmentally disabled individuals with high-risk histories and transfers participants to other waiver programs. Supporters said the program was overly restrictive, out of compliance with federal law, and had trapped people in long-term confinement-like conditions; opponents argued it would weaken public safety and move dangerous individuals into community settings without adequate safeguards. The bill passed 52-44. House Bill 2367, eliminating a preferential treatment related to the former TransAlta coal plant in Centralia, passed 63-33 after supporters framed it as closing the book on coal and opponents warned about energy reliability, jobs, and an emergency clause. Substitute House Bill 2133, making a property tax exemption for certain senior centers permanent, passed 96-0. Substitute House Bill 2355, establishing labor protections for domestic workers, passed 57-39 after supporters emphasized dignity and long-standing worker abuse concerns, while opponents cited fiscal impacts. The House then passed Engrossed Substitute House Bill 2534, with a technical amendment, to improve educational stability for children in military families; it passed 96-0. Engrossed Second Substitute House Bill 1974, creating a land banking framework to support affordable housing, passed 59-37 after an amendment reduced fiscal impact by striking some tax preference sections. House Bill 2223, allowing certain irrigation district board service by farmers with spouses employed by the district, passed 93-3. Substitute House Bill 2239, allowing family burial grounds on private property, passed 96-0 after supporters cited rural needs, cultural traditions, and personal family stories. The session also included a brief congratulatory recognition for Representative David Stuebe after his first bill passed the House.

Transcript Highlights:

• the RCW to make it easier to determine what is real property subject to real estate excise tax, or REET
• that should be easier for property owners and should mean less confusion when it comes time to pay REET
• What is affixed and subject to REET is not something that you hear about much in this committee or in
• First of all, I would say, again, REET affidavits are filed at the county level.
• It's just part of the overall selling price of the property that they will pay REET on.

Bills: SB6114, SB6244

Keywords: excise tax, definitions, tax law, taxation, fixtures, affixed, tax exemption, agriculture, hazardous substances, crop protection, warehousing, 904, all

Transcript Highlights:

• The state imposes a REET, and local governments can also impose various different REETs.
• The state imposes a REET, and local governments can also impose various different REETs.
• So there would be an additional half-percent REET authorized.
• So there would be an additional half-percent REET authorized.
• to ask for approval for that REET.

Bills: HB2675, HB2681, HB2714, HB2688, HB2481, HB2116, HB1408

Keywords: accounts, finance, business regulation, transparency, audits, cannabis, license fees, regulatory framework, revenue generation, legalization, HB 2714, caseload forecasting, food assistance, SNAP, Supplemental Nutrition Assistance Program, state food assistance, budget forecasting, caseload forecast council, caseload forecast supervisor, Washington State

Summary: The committee held public hearings on several bills. HB 2675 would eliminate a number of dedicated state accounts, transfer the remaining balances from two accounts to the general fund, and redirect future revenues from the salary insurance contribution increase revolving account to the general fund; OFM testified in support and there was no public opposition. Substitute HB 1903 would create a statewide Department of Commerce energy assistance program for low-income households, funded by the general fund and Climate Commitment Act revenues, phased in by utility and fuel type with reporting and an advisory group; supporters said it would provide more reliable monthly bill help, while utilities and rural co-ops raised concerns about cost, utility burden, reporting requirements, and conflicts with existing utility regulation. Fiscal staff estimated significant startup costs for Commerce if funded at the illustrative level discussed. Substitute HB 2384 would require actuarial reviews for certain continuing care retirement communities offering life care contracts, with the Office of the Insurance Commissioner reviewing the analyses and DSHS posting results; residents and transparency advocates supported the measure, while providers opposed it mainly over cost and the likelihood that fees would be passed on to residents. Substitute HB 1982 would expand the ability to vacate convictions tied to treaty Indian rights from fishing-only cases to fishing, hunting, gathering, and pasturing, remove the pre-1975 limitation, add local ordinances, and authorize OPD representation; after an amendment removed a proposed tribal liaison position, OPD said the fiscal impact would be zero and tribal and public defense witnesses supported the bill. Substitute HB 2389 would change juvenile sentencing and review procedures by expanding eligibility for suspended dispositions and behavioral health alternatives, adding midpoint review hearings, reducing some robbery ranges, and addressing juvenile rehabilitation capacity; supporters argued it would reduce disparities and favor community-based rehabilitation, while prosecutors, sheriffs, counties, judges, cities, victim advocates, and some law enforcement and tribal representatives warned it would weaken accountability, increase local costs, and create public safety risks. Substitute HB 2439 would overhaul tobacco and vapor product regulation by raising license fees and penalties, creating a responsible vendor program, adding manufacturer certification and testing requirements, restricting certain products and pricing practices, and redirecting tobacco tax revenue to public health and prevention accounts; public health groups supported the bill, while retailers and industry representatives opposed the fee increases and new mandates. The committee also heard HB 2681, which would sharply increase cannabis license fees and add CPI indexing; OFM supported it as a fee alignment measure, while cannabis businesses opposed the size of the increase and the inflation adjustment. No votes or final committee actions were taken in the portion of the meeting provided.

Transcript Highlights:

• So parts one and two of the bill relate to local real estate excise taxes, or REET.
• Under current law, there are four main local REET options.
• And then lastly, there is a REET for affordable housing.
• So the REET, some of them are and some of them aren't.
• So we also appreciate the REET flexibility for abatement funds.

Summary: The Ways and Means Committee held a public hearing on multiple bills, beginning with a motion to suspend the five-day notice rule for a long list of Senate bills, which passed on a voice vote. The committee first heard Substitute Senate Bill 6026, a governor-request housing bill that would require cities and counties over 30,000 population to allow residential uses in commercial and mixed-use zones, limit mixed-use/ground-floor commercial requirements in some areas, and allow added height where such requirements are imposed. The lieutenant governor testified strongly in support, arguing the bill would add needed housing capacity without requiring ground-floor retail burdens. The hearing on SB 6026 was then suspended so the committee could move through the agenda. The committee then heard Senate Bill 6294, a broad local government finance measure with eight parts, including expanded uses for certain REET revenues, a new county public utility tax, a new local sales tax for children and family services, expanded housing-related tax uses, changes to county levy structure, longer lid lift periods, and expanded use of rental car tax revenue. Local government, housing, and public health witnesses largely supported the bill, emphasizing flexibility for affordable housing, rental assistance, children’s services, and county fiscal stability. Opponents, including wireless industry, water/sewer district, auto dealer, realtors, energy, and cannabis representatives, objected to specific tax provisions as regressive, costly, or likely to raise consumer prices. Several witnesses requested amendments, including adding public health clinic funding and flood recovery language from House bills. The committee also heard Substitute Senate Bill 5400 on local news sustainability, which would create a state grant program funded by a surcharge on large search engines and social media platforms to support journalism jobs and the Murrow Fellowship program. News organizations, the League of Women Voters, open government advocates, and local journalism supporters testified in favor, saying local news is essential to civic life and that the bill would help sustain reporting without using general fund dollars. Technology industry representatives opposed the bill, arguing it unfairly singles out tech companies and could face legal challenges. The committee then heard Senate Bill 6211, which would let opt-in GMA jurisdictions impose REET-2 without voter approval; cities and counties supported it as a parity and infrastructure funding measure, while Realtors opposed the loss of voter approval. Senate Bill 5650, authorizing local cannabis excise taxes, drew support from some local officials but strong opposition from cannabis businesses, which argued Washington’s cannabis taxes are already too high and drive sales to the illicit market. Senate Bill 6033, waiving penalties and interest for taxpayers who failed to collect new sales tax on certain services, was supported by NFIB as a compliance and fairness measure. Senate Bill 6297, exempting temporary staffing services for nonprofit behavioral health providers from sales tax, drew strong support from behavioral health organizations citing workforce shortages and unsustainable costs. Finally, Senate Bill 6343, extending and expanding tax relief for disaster-damaged property and repairs, was presented as aid for flood recovery; local officials testified in support. No final committee votes on the bills were taken in the portion of the meeting provided.

Transcript Highlights:

• The state imposes a REET, and local governments can also impose various different REETs.
• One of these local government options is a REET for conservation areas.
• Only one county is currently eligible to impose this affordable housing REET.
• So there would be an additional one-half percent REET that would be authorized.
• So there would be an additional half percent reet would be authorized.

Summary: The committee heard public hearings on several bills. HB 2675 would eliminate a number of state accounts and transfer remaining balances from two accounts to the general fund, while also changing how revenues in the Salary Insurance Contribution Increase Revolving Account are deposited; OFM testified in support and there was no public opposition. SHB 1903 would create a statewide low-income energy assistance program through the Department of Commerce, funded by the general fund and Climate Commitment Act revenues; supporters said it would address Washington’s underfunded and uneven energy assistance system, while utilities and rural co-ops raised concerns about cost, reporting burdens, utility authority, and implementation details. SHB 2384 would require actuarial reviews for certain continuing care retirement communities with prepaid life care contracts; residents and consumer advocates supported the added transparency, while providers opposed the added review costs and said they already pay for actuarial work. SHB 1982 would expand the ability of tribal members to vacate convictions tied to treaty rights, add OPD representation and a tribal liaison position, and then an amendment was described that would remove the liaison position and eliminate the fiscal impact; the sponsor and OPD supported the bill, and testimony emphasized correcting past treaty-rights convictions. The committee also heard SHB 2389, a broad juvenile justice bill that would expand suspended disposition options, create midpoint review hearings, reduce some robbery ranges, and address juvenile rehabilitation capacity and transfers. Supporters argued it would reduce racial disparities, favor community-based rehabilitation when safe, and improve outcomes, while prosecutors, sheriffs, counties, judges, cities, victim advocates, and some tribal law enforcement warned it would weaken accountability for serious violent offenses, increase court and local government burdens, and shift costs without funding. Several witnesses and the bill sponsor discussed proposed amendments, including removing presumptions and the mid-sentence review. The committee then heard SHB 2439, which would raise tobacco and vapor product license fees, create a responsible vendor program, add manufacturer certification and enforcement provisions, restrict certain products and sales practices, and redirect tobacco tax revenue to public health, cancer research, and youth prevention accounts; public health and prevention groups supported it, while retailers and industry representatives opposed the fee increases and some of the new restrictions. Finally, HB 2681 would sharply increase cannabis license fees and index them to inflation; OFM supported the change as aligning fees with program costs, while cannabis businesses and associations opposed or sought changes to the fee structure and CPI indexing. The committee also heard a briefing on SHB 2215, which would require the Caseload Forecast Council to forecast SNAP and state food assistance caseloads in light of upcoming federal cost-sharing changes; no questions were raised at the briefing.

Transcript Highlights:

• So as a refresher, it expands the definition of timberland for REET purposes.
• requirements, annual reporting by the land bank, and exempting all property sold to or by the land bank from REET
• Those changes affect the sales tax deferral for underdeveloped urban land and local lodging and REET

Summary: The committee heard several public hearings on tax and housing-related bills. HB 2451 on local tax increment financing was briefed as a negotiated trailer bill adding new limits and consultation requirements for increment areas, including restrictions on using areas that already have needed public improvements, earlier sunset rules, more detailed project analysis, and stronger notice, mediation, and arbitration procedures for affected taxing districts. Supporters from cities, ports, and fire districts said the bill rebalances the process and protects impacted jurisdictions; the hearing then closed. HB 2322 would change the alternative jet fuel tax incentive program by replacing the current production-capacity trigger with a fixed effective period beginning in 2031 and ending in 2046, while clarifying carbon-intensity requirements. The sponsor said the change adds certainty and supports cleaner aviation fuel. A refinery representative supported the program but asked for clarification to include Pierce County or define “blender,” while a climate-health opponent argued the bill subsidizes continued fossil-fuel combustion and should be rejected. HB 2590 would revise the limited equity cooperative definition and exempt such cooperatives from WUCIOA unless they opt in, while preserving the property-tax exemption requirements; supporters said it would reduce red tape and better fit cooperative housing, while members raised concerns about unintended restrictive membership rules and asked for fair-housing guardrails. HB 2655 would create a new sales and use tax exemption for construction and equipment at certain new data centers in eastern Washington, subject to labor, wage, apprenticeship, employment, and sustainability requirements. Supporters framed it as a jobs and clean-energy opportunity tied to hydrogen development and regional competitiveness, while opponents said it was a subsidy for large corporations and could strain water, power, and public revenues. The committee then moved to executive action and advanced HB 1983, the second substitute for HB 1974, the substitute for HB 2334, HB 2367, and the substitute for HB 2650, all with due pass recommendations. Amendments were adopted on HB 1974 and rejected on HB 2367; the other bills were advanced without amendment. Votes were recorded on each measure, with HB 1974 passing 10-4, HB 2334 passing 13-1, HB 2367 passing 11-3, and HB 2650 passing 14-0.

Transcript Highlights:

• So as a refresher, it expands the definition of timberland for REET purposes.
• requirements, annual reporting by the land bank, and exempting all property sold to or by the land bank from REET
• Those changes affect the sales tax deferral for underdeveloped urban land and local lodging and REET

Bills: HB1983, HB1974, HB2334, HB2367, HB2650, HB2655

Keywords: timberland, real estate, excise tax, governmental entities, property taxation, land bank, land banking authority, affordable housing, housing crisis, housing supply, public corporation, public housing authority, nonprofit housing, tax-foreclosed property, blight remediation, redevelopment, anti-displacement, equity, redlining, racial segregation

Summary: House Finance held public hearings on several bills. HB 2451, a substitute bill on local tax increment financing, would add conditions on where increment areas can be designated, require more detailed project analyses and earlier notice/consultation with affected taxing districts, expand dispute resolution steps, and exempt preexisting TIF areas from some changes; cities, ports, and fire/public safety stakeholders testified in support, saying the bill reflects a negotiated compromise and improves protections for impacted districts. HB 2322 would change the alternative jet fuel incentive program from a production-capacity trigger to a date-certain start, add carbon-intensity scoring for fuels outside the Clean Fuels Program, and extend the credits through 2046; supporters said it gives certainty and helps develop sustainable aviation fuel, while an opponent argued the bill subsidizes continued fuel burning and urged reducing flights instead. HB 2590 would exempt limited equity cooperatives from WUCIOA unless they opt in, move and revise the statutory definition of LECs, and let cooperatives set certain resale and return terms in their governing documents; supporters said it removes mismatched legal barriers to affordable homeownership, while members raised concerns about unintended restrictive eligibility rules and asked about fair housing limits. HB 2655 would create a new sales and use tax exemption for certain new data centers in a specific eastern Washington county, conditioned on labor standards, job creation, and sustainability certifications; labor and economic development supporters said it would bring jobs and support related clean-energy projects, while opponents criticized the subsidy and the project labor/community workforce agreement requirements. The committee then took executive action and reported out HB 1983, HB 1974 as amended, HB 2334 as amended, HB 2367, and HB 2650, all with do-pass recommendations; HB 2367’s amendment to remove the emergency clause failed, and the committee adjourned after passing HB 2650 unanimously.

Transcript Highlights:

• The bill also increases the compliance period for the real estate excise tax, or REET, exemption for
• Under current law, the transfer of property that will be used for low-income housing is exempt from REET
• The impact to revenue is from modifying that REET exemption.
• next amendment, Amendment 37, also offered by Senator Robinson, removes the sections modifying the REET

Bills: SB6147, SB6082, SB5862, SB5882, SB6323, SB6346, SB6162, SB6256, SB6220, SB5650, SB6343, SB6113, SB6211, SB6114, SB5898, SB6347, SB6244, SB5868, SB5762, SB5988, SB6194, SB6246, SB6223, SB6052, SB5828, SB5954, SB5963, SB5909, SGA9306

Keywords: grocery establishments, closure notice, consumer rights, local businesses, student financial aid, financial aid fraud, higher education, college enrollment fraud, fictitious students, ghost students, enrollment fraud, aid integrity, cybersecurity, artificial intelligence, AI fraud, fraud prevention, Washington State, legislative audit, JLARC, full-time equivalent

Transcript Highlights:

• The bill also increases the compliance period for the real estate excise tax, or REET, exemption for
• Under current law, the transfer of property that will be used for low-income housing is exempt from REET
• The impact to revenue is from modifying that REET exemption.
• next amendment, Amendment 37, also offered by Senator Robinson, removes the sections modifying the REET

Summary: The Ways and Means Committee met in executive session on February 9, 2026, first hearing a staff briefing on Senate Bill 6346, which would impose a tax on individuals earning over $1 million. Staff described the bill’s revenue and spending impacts and reviewed a proposed substitute and 11 amendments addressing items such as public defense funding, charitable deductions, out-of-state tax credits, small business credits, diapers, constitutional issues, and a contingent constitutional amendment. The committee later took up the bill and rejected all of the offered amendments, then advanced the substitute bill with a due pass recommendation to the Rules Committee. Members supporting the bill argued it would help address tax fairness and fund public services, while opponents raised concerns about constitutionality, economic harm, and the effect on businesses and charitable giving. The committee also acted on a series of policy bills. It advanced a substitute bill on grocery store closures in food deserts after adopting a narrower substitute, despite concerns from some members about burdening grocers. It approved a substitute bill expanding voting access for military, overseas, Native American, and disabled voters, adopting a second substitute that removed a cybersecurity review requirement. The committee also advanced bills on tort claim arbitration against governments, victim and witness protections in sexual assault and domestic violence cases, JLARC review of student aid fraud, agricultural collective bargaining, labor relations if federal preemption ends, a cost-of-living adjustment for Plan 1 retirees, workers’ compensation and medical care access, line-of-duty death reimbursements, law enforcement background checks and eligibility, veterans’ discharge definitions, and extraordinary medical placement. Several of these bills had amendments adopted, including changes to tort claim oversight, victim-requested standby counsel, agricultural labor definitions, workers’ compensation penalties, law enforcement volunteer support, and extraordinary medical placement criteria. In the second group of bills, staff briefed measures affecting property taxes, housing, cannabis, disaster-related tax relief, technical tax code changes, aircraft fuel tax revenues, the estate tax, and a pesticide tax exemption. The committee heard that a substitute for the fire protection district bill would alter how city or town levy capacity is reduced and include consultation requirements and board-creation provisions. It also heard that the property tax relief expansion for seniors and disabled retirees needed a substitute to make the consolidated school levy revenue-neutral. Other bills would expand tax exemptions for low-income housing and nonprofit homeownership, authorize local cannabis excise taxes, extend disaster repair tax relief, expand housing-related local sales tax uses, make technical tax code changes, redirect aircraft fuel tax revenues to aeronautics, reduce the estate tax rate, and extend a pesticide tax exemption. The transcript ends during the committee’s consideration of Senate Bill 6346, with the committee debating and rejecting amendments before moving the bill forward.

Transcript Highlights:

• conditions or continued, yeah, other conditions that went along with that in order to qualify for the REET
• conditions or continued, yeah, other conditions that went along with that in order to qualify for the REET

Summary: The committee met on July 15, 2026, but initially lacked a quorum, so it could not adopt prior minutes. Chair Jerry Pollett welcomed new member Senator Victoria Hunt and new JLARC staff, and noted national recognition for recent JLARC reports. The meeting then moved into a series of preliminary audit presentations and an agency strategic management update, with committee members asking questions after each item. JLARC presented a preliminary audit of DCYF’s Juvenile Rehabilitation programs. Staff concluded that crowding, staffing shortages, weak risk assessments, and inconsistent programming combine to create unsafe conditions. The report found that most youth are housed in two large secure facilities operating near or above capacity, incidents rise as population rises, 47% of frontline staff leave within a year, current assessment tools are not valid for the population, and program access depends more on facility than individual need. JLARC made one recommendation to the legislature to address crowding and seven to DCYF, including improving retention, training, incident response procedures, validated assessments, program alignment, and data quality. DCYF Secretary Ross Hunter said the agency agreed overcrowding is a serious problem, described ongoing efforts to improve staffing and safety, and said a detailed response would be provided later. Committee members raised concerns about education access, retaliation against staff or youth who participated in the audit, and whether JR-25 has helped or worsened conditions. JLARC then presented a preliminary audit of Labor and Industries’ enforcement of farm worker labor laws. The audit found that L&I generally meets inspection timelines for health and safety complaints, but not for wage and hour or retaliation complaints, where delays are driven largely by time before assignment to an investigator. Staff said complaint volume exceeds capacity, though the agency has added staff, created screening processes, and reorganized workloads, and 2026 legislation now allows prioritization of complaints and broader investigations. JLARC recommended that L&I report back in December 2026 and December 2027 on backlog reduction and implementation of the new law. An L&I representative said the agency is hiring additional staff and will provide a formal response later. The committee also received a JLARC overview and Department of Health strategic management plan update on hospital data reporting, inspections, complaints, and adverse event reporting. DOH reported measurable progress on inspection compliance, new staffing and licensing systems, translated complaint forms, and plans for future work on language access, adverse event reporting, and financial data dashboards. After lunch, JLARC began its 2026 tax preference performance reviews. The first review covered the Main Street tax credit, which JLARC said has helped increase the number of Main Street communities and businesses, with positive growth near designated districts; JLARC recommended continuing the preference and improving business-count data. The second review covered the equitable access to credit program, which JLARC said appears to support underserved communities by funding loans through CDFIs; JLARC recommended continuing the preference beyond its 2027 expiration. The committee began questions on the program mechanics and the role of the Community Reinvestment Act, and the presentation was still underway when the transcript ended.

Transcript Highlights:

• And then related to the local REET and local lodging tax, just making sure that when they make a change
• Okay, so part one allows local REET to be used for the abatement of nuisance properties.
• Part one allows local REET to be used for the abatement of nuisance properties.

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.

Bills: SB6061, SB6234, SB6170, SB6176, SB6182, SB6335, SB5647, SB6047, HB2367, HB2606, SB6129, SB6228, SB6231, HB2235, HB2272, HB2340, HB2543, HB2554, HB2632, HB2464, HB2619

Keywords: tourism, self-supported assessment, funding, statewide promotion, economic development, sewage, grinder pumps, residential buildings, regulation, construction, contracting rules, state highway construction, procurement limits, state regulations, infrastructure funding, vehicle registration, enforcement, renewal, transportation, state law

Summary: The Senate opened with ceremonial items, then moved through gubernatorial appointments and a series of floor votes. It confirmed Acacia E. Ingram to the Evergreen State College Board of Trustees, Ashland J. Tibbet and David S. Frockt to the Western Washington University Board of Trustees, and Christine Rolfes to the Olympic College Board of Trustees. Members spoke in support of the appointees’ public service and ties to higher education. The chamber also heard a personal privilege statement honoring a Colfax basketball coach who died of pancreatic cancer, followed by a caucus break. The Senate then considered several bills, passing measures on derelict vessels (SHB 2199), radiologic technologist supervision (HB 2113), nitrous oxide retail sales (ESHB 2532), ambulance transport fund alignment (HB 2531), EMT recertification (HB 2540), affordable housing on religious property (2SHB 1859), factory-built housing standards (SHB 2151), social housing public development authorities (EHB 1687), the Washington Voting Rights Act and voter suppression claims (ESSHB 1750), privacy and data protection reporting and AI use (HB 2606), military family school stability (ESHB 2534), coal-fired utility treatment (HB 2367), and school access to albuterol (SHB 2360). Most passed on strong bipartisan roll calls, though the voting-rights bill and coal-utility bill drew the most debate and partisan division. Several bills were amended on the floor. The Senate adopted changes to the nitrous oxide bill, the factory-built housing bill, the social housing bill, the albuterol bill, and the 3D-printer/firearm-manufacturing bill (ESHB 2320), while rejecting some proposed amendments on the voting-rights and 3D-printer bills. Debate centered on whether the voting-rights bill set too low a threshold for lawsuits and whether the coal-utility bill gave improper treatment to coal generation; supporters framed both as needed protections or transition measures, while opponents warned about litigation and policy overreach. The chamber also discussed tribal consultation in energy siting (SHB 2496), ultimately passing it after a close vote, and later returned to the 3D-printer bill, which advanced after amendments narrowed exemptions for gunsmiths and dealers and clarified the bill’s focus on digital files used to manufacture firearms.

Transcript Highlights:

• But frankly, the REET is paid by the seller.
• And so the first-time home buyer actually does not pay the REET. The seller pays the REET.

Bills: HB2104, HB1903, HB1909, HB1982, HB2034, HB2105, HB2210, HB2215, HB2271, HB2345, HB2355, HB2384, HB2389, HB2397, HB2418, HB2429, HB2442, HB2479, HB2481, HB2681, HB2688, HB2714

Keywords: aviation, wildland fires, funding, disaster relief, emergency response, energy assistance, low-income, utility costs, state program, energy affordability, court unification, task force, Washington courts, judicial administration, court reform, access to justice, local court rules, uniformity, centralization, rural courts

Transcript Highlights:

• But frankly, the REET is paid by the seller.
• And so the first-time home buyer actually does not pay the REET. The seller pays the REET.

Summary: The committee began with a public hearing on Substitute House Bill 1592, which would change how state public defense funds are distributed and, in the substitute version, keep current law on state funding responsibility while revising the allocation formula. Staff explained the bill would shift county and city distributions to a pro rata, caseload-based model, allow very low-density counties to request OPD to provide some or all public defense services, require additional data collection and reporting, and direct OPD to study caseload reductions and retention. Representative Peterson said the bill is meant to create a better structure for future state support of indigent defense without the very large cost of the original proposal. Testimony from counties, cities, OPD, defenders, and local officials was strongly supportive, emphasizing a statewide public defense crisis, rising local costs, staffing shortages, and the need for a fairer funding model. The committee then heard Substitute House Bill 1742 on environmentally sustainable urban design and Substitute House Bill 1906 on water system regulation and water rates. HB 1742 would create a center in Ecology to promote sustainable urban design, fund design competitions and grants, and establish an advisory council; the sponsor said the bill reflects a desire to support a pilot project through alternative funding, and there was no public testimony. HB 1906 would require more planning and notice for Group A water systems, add customer notice and right-of-first-refusal provisions for some ownership changes, and direct the UTC to consider external funding sources, capital planning, and rate smoothing when setting water rates. Water utility and PUD witnesses supported the goal of improving transparency and consolidation of failing small systems, while noting the substitute reduced some fiscal concerns. The committee also heard HB 2248 on Secretary of State corporate and charity filings, HB 2438 creating the SEED scholarship for early childhood education students, and HB 2515 addressing emerging large energy use facilities such as data centers. HB 2248 would redirect part of annual filing fees to the Secretary of State revolving fund, require initial reports from nonprofits and LLPs, and change trademark certificate procedures; the fiscal note showed modest revenue losses, and the division supported restoring the fee split for operational funding. HB 2438 would transfer $10 million annually from the GET account to fund scholarships and wraparound services for early childhood education degree seekers, with testimony from early learning advocates and a student describing workforce shortages and personal financial barriers. HB 2515 drew extensive testimony both for and against: supporters said it would protect ratepayers, water resources, and grid reliability by requiring tariffs, reporting, clean-energy requirements, and a fee on large energy users; opponents argued it singled out data centers, could hurt investment and jobs, and included unrelated labor and procurement provisions. After public testimony, the committee moved into executive-session briefing on several bills and amendments, including HB 1903 on statewide low-income energy assistance, HB 1909 on a court unification task force, HB 1982 on vacating certain convictions tied to treaty Indian rights, HB 2034 on LEOFF Plan 1 retirement changes, HB 2105 on employer notice of federal I-9 audits, HB 2210 on ranked-choice voting, HB 2215 on Climate Commitment Act fuel supplier obligations, and HB 2271 on post-consumer recycled content requirements. Staff summarized proposed substitutes and amendments, with several changes aimed at reducing or shifting fiscal impacts, narrowing agency duties, or striking provisions entirely.

Transcript Highlights:

• It also standardizes the practice in making rate changes to local REET and lodging taxes, and that is

Bills: HB1160, HB1289, HB1339, HB1798, HB1065, HB2113, HB2124, HB2125, HB2134, HB2140, HB2185, HB2191, HB2205, HB2219, HB2245, HB2283, HB2343, HB2406, HB2501, HB2574, HB1544, HB1834, HB2156, HB2188, HB2206, HB2478, HJM4012, HB1104, HB1152, HB1254, HB1443, HB1982, HB2006, HB2179, HB2203, HB2297, HB2322, HB2329, HB2379, HB2388, HB2399, HB2462, HB2464, HB2495, HB2544, HB2551, HB2636, HB2192, HB2251, HB2262, HB2266, HB2298, HB2320, HB2323, HB2351, HB2401, HB2405, HB2442, HB2523, HB2593, HB2632, HB2661, HB1496, HB1898, HB2095, HB2157, HB2225, HB2274, HB2311, HB2325, HB2333, HB2476, HB2508, HB2552, HB1343, HB1634, HB1707, HB1906, HB1909, HB2196, HB2244, HB2339, HB2361, HB2384, HB2389, HB2410, HB2468, HB2475, HB2521, HB2548, HB2619, HB2637, HB2720, HB1160, HB1289, HB1339, HB1798, HB1065, HB2125, HB2134, HB2140, HB2185, HB2191, HB2205, HB2245, HB2283, HB2343, HB2406, HB2501, HB1544, HB1834, HB2188, HB2206, HB2478, HJM4012, HB1104, HB1152, HB1254, HB1443, HB1982, HB2006, HB2297, HB2322, HB2329, HB2379, HB2388, HB2399, HB2462, HB2495, HB2544, HB2551, HB2636, HB2192, HB2262, HB2298, HB2351, HB2401, HB2442, HB2593, HB2661, HB1496, HB1898, HB2095, HB2157, HB2225, HB2311, HB2325, HB2552, HB1343, HB1634, HB1707, HB2361, HB2389, HB2410, HB2468, HB2521, HB2619, HB2720, HB1295, HB1591, HB2092, HB2168, HB2176, HB2248, HB2255, HB2281, HB2438, HB2590, HB2610, HB2650, HB2685, HB1526, HB1960, HB2236, HB2364, HB2416, HB1073

Keywords: design review, local government, land use, zoning, project permits, housing density, middle housing, affordable housing, parking minimums, single-family zoning, infill development, growth management, comprehensive plan, permit streamlining, objective development regulations, architectural review, administrative review, transit-oriented development, accessory dwelling units, ADU

Transcript Highlights:

• We are asking for clarification that if the city is using REET revenues to help support a project, we

Bills: HB2304, SGA9280, SGA9281

Keywords: condominium, housing, warranty, property rights, construction, 904, all

Transcript Highlights:

• We are asking for clarification that if the city is using REET revenues to help support a project, we

Summary: The Senate Housing Committee held public hearings on four bills and then took executive action on several measures and two gubernatorial appointments. At the start, the committee waived the five-day notice rule for Substitute House Bill 2354, Engrossed Substitute House Bill 2266, and Second Substitute House Bill 2590. The committee also heard public testimony on House Bill 1859, which would expand affordable housing on property owned by religious organizations by lowering the affordability threshold needed to qualify for a density bonus. Supporters, including the sponsor, faith leaders, and local officials, said the current 100% affordability requirement has made projects difficult to finance and that the bill would better unlock underused church land for housing. The committee then heard Engrossed Substitute House Bill 2266, which would further standardize where and how permanent supportive housing, transitional housing, indoor emergency housing, and shelters can be sited, while limiting local barriers and allowing some negotiated conditions near schools or when local governments provide significant support. The sponsor and supporters from King County, housing providers, the Attorney General’s office, disability advocates, medical professionals, and others argued the bill would reduce discriminatory or inconsistent local siting rules and expand needed housing. Some local government representatives supported the bill but asked for additional amendments to preserve local flexibility, require on-site contacts, and clarify how operating conditions and funding agreements would work. The committee also heard House Bill 2590, which would revise rules for limited equity cooperatives so they can better function as a long-term affordable homeownership model and remain exempt from certain Washington Uniform Common Interest Ownership Act requirements. Supporters said the bill would help preserve manufactured housing communities and other cooperative housing while maintaining affordability and oversight. House Bill 2354, a trailer bill to WACOIA, would make technical changes affecting common interest communities, including EV charging and heat pump cost responsibility, reserve studies, and audit thresholds; the Washington State Community Association’s Institute testified in support. In executive session, the committee confirmed gubernatorial appointments Aaron T. McGrath and Ann T. Malone and voted do-pass recommendations for EHB 1687, SHB 2269, and HB 2304, all subject to signatures.

Transcript Highlights:

• And then related to the local REET and local lodging tax, just making sure that...
• And then related to the local REET and local lodging tax, just making sure that when they make a change

Bills: HB1069, HB2091, SB6355, HB2104, SB6003, HB2441, HB2124, HB2610, HB2338

Keywords: collective bargaining, retirement benefits, employee rights, public sector, supplemental benefits, public employers, employee information, bargaining representatives, labor relations, union representation, electric transmission, energy policies, infrastructure, regulatory framework, transmission systems, aviation, wildland fires, funding, disaster relief, emergency response