2026 Legislative Update: Week 3

The third week of the 2026 Washington State Legislative Session marked a transition in the legislative process, as committees began moving beyond the preliminary stage of holding public hearings on newly introduced bills.

This period, known as the “executive session” phase, is a critical juncture in which committees thoroughly evaluate proposed legislation. During executive sessions, members debate the merits and potential impacts of each bill, consider and adopt amendments, and ultimately take formal votes to determine whether a measure should advance to the next stage of the legislative process. This stage is especially important because it allows lawmakers to weigh public input received during hearings against policy considerations, political priorities, and fiscal implications. Looking ahead, the conclusion of the House of Origin policy committee process next week will shift the focus toward bills that carry a fiscal impact, which will then be reviewed and deliberated in fiscal committees to assess their budgetary consequences for the state with a deadline of February 9 to pass out of those fiscal committees.

On Monday, Governor Bob Ferguson (D) and Attorney General Nick Brown (D) held a press conference where they condemned the recent ICE operation in Minnesota as well as a Department of Homeland Security memo, they say unconstitutionally authorizes agents to forcibly enter homes without judicial warrants and outlined how Washington is preparing should similar actions occur here. The officials cited the fatal shootings of U.S. citizens during ICE operations in Minnesota as evidence of a dangerous escalation, calling the agency “out of control,” and warning that such actions undermine constitutional rights and public safety. While acknowledging the state cannot block federal deployment, Ferguson and Brown emphasized Washington’s commitment to resisting unlawful conduct through legal action, interagency coordination, and legislative efforts. Planned steps include urging DHS to withdraw and de-escalate ICE operations, strengthening coordination through the Governor’s Immigration Sub-Cabinet, adding senior policy staff focused on immigrant and refugee issues, preparing for potential National Guard involvement to protect public safety, and working with partners statewide. The Governor and Attorney General also highlighted support for legislation to increase accountability, including bans on law enforcement face coverings (which passed the Senate floor this week), prohibitions on ICE impersonation, and new protections requiring employers to notify workers when federal agencies seek employment eligibility information.

Also on Monday, the Senate Ways & Means Committee considered two bills, SB 6231 (Frame, D-36) and SB 6228 (Frame, D-36), that are part of a broader effort to phase out certain corporate tax exemptions while redirecting tax benefits to support state revenue and create other newly proposed exemptions. SB 6231 focuses on data center tax exemptions, narrowing eligibility, limiting new certificates for equipment and server infrastructure, imposing employment and sustainability requirements, and setting expiration dates for existing exemptions to ensure these tax benefits align with current economic priorities. Similarly, SB 6228 eliminates the longstanding exemption for businesses that warehouse and resell prescription drugs, replacing it with a 0.5 percent business and occupation tax and providing clearer definitions for these operations. At the same time, the Legislature is hoping to create new exemptions. HB 2175 (Klicker, R-16) would establish a temporary sales and use tax exemption for nonprofit organizations that provide free durable medical equipment to patients, allowing them to purchase necessary items without paying state retail sales or use tax.

Grocery stores were a major focus in committees this week, with several bills advancing efforts to improve food access and regulate pricing. On Tuesday, January 27, the Senate Labor & Commerce Committee considered SB 6147 (Conway, D-29), which addresses the impact of grocery store closures, particularly in areas with limited access to healthy food. The bill would require grocery stores in designated food deserts or low‑income neighborhoods far from other grocery options to provide at least six months’ written notice of a planned closure to local governments, the attorney general, and the public. During this period, stores must meet in good faith with community representatives to explore alternatives, such as keeping the store open, supporting the creation of a cooperative, or identifying another operator to take over. The bill also allows enforcement through civil action, outlines penalties for violations, and makes certain private agreements restricting future grocery use of property unenforceable.  Complementing this bill, the House Local Government Committee heard HB 2313 (Farivar, D-46), which seeks to empower cities to proactively address gaps in grocery access by establishing publicly owned grocery stores in underserved areas. The bill authorizes municipalities to acquire, construct, rehabilitate, lease, or transfer property, including through eminent domain, and to seek capital grants from the Department of Commerce to support these stores. Cities may also use tax increment financing to assist with property acquisition, redevelopment, and other food access improvements. HB 2313 allows flexible ownership and operational models, including city-run, third-party, nonprofit, or cooperative arrangements, and provides flexibility in zoning, density, and infrastructure requirements. And finally, addressing consumer protections at the grocery store, HB 2481 (Fosse, D-38), which was exec’d out of the House Technology, Economic Development, and Veterans Committee this week, targets pricing practices in grocery retail. The bill would ban surveillance-based price discrimination and surge pricing, prohibiting businesses from using consumer data or algorithms to set individualized or dynamic prices. Proponents argue the bill safeguards consumers from opaque, data-driven pricing, while critics caution it may limit innovation and create operational challenges for retailers.

This week, legislative committees also considered four bills aimed at regulating and shaping the use of artificial intelligence (AI) across public and private sectors. ESHB 1622 (Parshley, D-22), a bill from 2025, would require most public employers – including state agencies, local governments, and higher education institutions – to bargain with employee unions over AI adoption or changes that could affect wages or performance evaluations, giving workers a formal voice in technology decisions.

Another 2025 bill, 2SHB 1170 (Shavers, D-10) focuses on AI transparency, mandating that large generative AI providers disclose when content is AI-generated, offer provenance information, and provide user-friendly detection tools. HB 2157 (Ryu, D-32) seeks to regulate high-risk AI systems that influence consequential decisions in areas like employment, housing, education, healthcare, insurance, and legal services. It would require risk-management programs, impact assessments, consumer disclosures, and protections against algorithmic discrimination. Similarly, Senate Bill 6284 (Liias, D-21) proposes a framework for high-risk AI, emphasizing risk mitigation, regular reviews, transparency, and consumer notification while balancing innovation and trade-secret protections.

Important Dates:

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

Upcoming Events:

Housing (House) – HHR C and Virtual JLOB – 2/2 @ 1:30pm

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

Local Government (Senate) – SHR 3 and Virtual JACB – 2/2 @ 1:30pm

• SB 6274 – Exec Session – Concerning street standards and frontage improvement requirements.

Transportation (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/2 @ 4:00pm

• SB 6335 – Public Hearing – Revising the responsibilities of the state transportation commission. (Remote Testimony Available).

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/2 @ 4:00pm

• SSB 5884 – Public Hearing – Expanding the limited sales and use tax incentive program to encourage redevelopment of underutilized property. (Remote Testimony Available).
• SSB 6027 – Public Hearing – Modifying certain funding and exemptions related to providing and maintaining affordable housing and related services. (Remote Testimony Available).
• 2SSB 5292 – Public Hearing – Concerning paid family and medical leave rates. (Remote Testimony Available).

Finance (House) – HHR A and Virtual JLOB – 2/3 @ 8:00am

• HB 2650 – Public Hearing – Concerning notifications and effective dates for department of revenue administration of certain excise taxes. (Remote Testimony Available).

Civil Rights & Judiciary (House) – HHR A and Virtual JLOB – 2/3 @ 10:30am

• HB 2095 – Exec Session – Protecting vulnerable users of public ways.

Labor & Commerce (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/3 @ 10:30am

• SB 6158 – Exec Session – Adopting national standards for factory built housing and commercial structures.

Local Government (House) – HHR E and Virtual JLOB – 2/3 @ 10:30am

• HB 2480 – Exec Session – Concerning residential development in commercial and mixed-use zones.

Consumer Protection & Business (House) – HHR B and Virtual JLOB – 2/3 @ 1:30pm

• HB 2394 – Exec Session – Enhancing public safety and enforcement of crimes that impact insurance.
• HB 2512 – Exec Session – Prohibiting real estate brokers from marketing residential properties to an exclusive group of prospective buyers or real estate brokers.

Environment, Energy & Technology (Senate) – SHR 1 and Virtual J.A. Cherberg – 2/3 @ 1:30pm

• SB 6284 – Exec Session – Providing consumer protections for artificial intelligence systems.
• SB 6246 – Exec Session – Concerning emissions from emissions-intensive, trade-exposed facilities under the climate commitment act.

State Government, Tribal Affairs & Elections (Senate) – SHR 2 and Virtual J.A. Cherberg – 2/3 @ 1:30pm

• SB 6160 – Exec Session – Improving government efficiency related to reports by state agencies.

Environment & Energy (House) – HHR B and Virtual JLOB – 2/3 @ 4:00pm

• HB 2537 – Exec Session – Concerning emissions from emissions-intensive, trade-exposed facilities under the climate commitment act.
• HB 2575 – Exec Session – Reducing certain reporting obligations under environmental or energy laws.

Housing (House) – HHR C and Virtual JLOB – 2/3 @ 4:00pm

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

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/3 @ 4:00pm

• 2SSB 5496 – Exec Session – Preserving homeownership options by limiting excessive home buying by certain entities.
• SB 5647 – Exec Session – Providing a real estate excise tax exemption for the sale of qualified affordable housing.

Business, Trade & Economic Development (Senate) – SHR 2 and Virtual J.A. Cherberg – 2/4 @ 8:00am

• SB 6289 – Exec Session – Creating a statewide economic development and competitiveness strategic plan.

Civil Rights & Judiciary (House) – HHR A and Virtual JLOB – 2/4 @ 8:00am

• HB 2255 – Exec Session – Concerning litigation finance.
• HB 2354 – Exec Session – Concerning common interest communities.

Local Government (House) – HHR E and Virtual JLOB – 2/4 @ 8:00am

• HB 2480 – Exec Session – Concerning residential development in commercial and mixed-use zones.

Housing (Senate) – SHR 4 and Virtual JACB – 2/4 @ 10:30am

• ESHB 1500 – Public Hearing – Concerning resale certificates for units in common interest communities. (Remote Testimony Available).
• EHB 1501 – Public Hearing – Concerning inquiries into association governance or operations by unit owners in common interest communities. (Remote Testimony Available).
• ESB 5729 – Exec Session – Encouraging construction of affordable housing by streamlining the permitting process.
• SB 6069 – Exec Session – Encouraging permanent supportive housing, transitional housing, indoor emergency housing, and indoor emergency shelters.
• SB 6015 – Exec Session – Concerning permit-ready residential building plans.

Consumer Protection & Business (House) – HHR B and Virtual JLOB – 2/4 @ 1:30pm

• HB 2399 – Exec Session – Prohibiting the post-loss assignment of benefits in property insurance.

Capital Budget (House) – HHR B and Virtual JLOB – 2/4 @ 4:00pm

• SHB 2236 – Public Hearing – Concerning the housing finance commission. (Remote Testimony Available).
• HB 2273 – Public Hearing – Reducing embodied carbon emissions of buildings and building materials. (Remote Testimony Available).

Finance (House) – HHR A and Virtual JLOB – 2/4 @ 4:00pm

• HB 2376 – Public Hearing – Concerning property tax reform. (Remote Testimony Available).
• HB 2615 – Public Hearing – Codifying the voluntary disclosure tax program and authorizing temporary tax amnesty. (Remote Testimony Available).

Appropriations (House) – HHR A and Virtual JLOB – 2/5 @ 10:30am

• SHB 2215 – Public Hearing – Concerning climate commitment act compliance obligations for fuels supplied or otherwise sold into Washington. (Remote Testimony Available).
• SHB 2345 – Public Hearing – Concerning contributions in the state paid family and medical leave program. (Remote Testimony Available).

Ways & Means (Senate) – SHR 4 and Virtual JACB – 2/5 @ 1:30pm

• SB 6294 – Public Hearing – Providing local governments tax resources and fund flexibility. (Remote Testimony Available).
• SSB 5974 – Public Hearing – Modernizing and strengthening laws concerning sheriffs, police chiefs, town marshals, law enforcement agency volunteers, youth cadets, specially commissioned officers, and police matrons. (Remote Testimony Available).
• SB 6328 – Public Hearing – Concerning the cannabis excise tax. (Remote Testimony Available).
• SSB 5176 – Public Hearing – Implementing prompt pay recommendations from the capital projects advisory review board. (Remote Testimony Available).
• SSB 6026 – Public Hearing – Concerning residential development in commercial and mixed-use zones. (Remote Testimony Available).

Finance (House) – HHR A and Virtual JLOB – 2/6 @ 8:00am

• HB 2334 – Exec Session – Adjusting the price of a cash transaction to eliminate the need for pennies.

Stay tuned for next week's update!