Association of Washington Business – Updated Weekly

🕐 State lawmakers faced a deadline last Wednesday to pass bills out of their house of origin. The Washington State Standard has a roundup of major bills that survived and those that died.

The bad: AWB was disappointed to see Senate Bill 5041, extending unemployment insurance to striking workers, and House Bill 1217, enacting statewide rent control, pass.

• There’s still time to stop the UI for striking workers bill, which has a hearing in a House committee at 10:30 a.m. Tuesday. To note your opposition, sign in “CON” to the bill before 9:30 a.m. Learn more in AWB’s issue brief.

The good: Lawmakers voted to approve Senate Bill 5408, which makes an important fix to Washington’s pay transparency law, and House Bill 1975, which improves stability in Washington’s carbon market (see details below).

Budget and taxes: Expect to see debates over budget and tax proposals heat up in the coming weeks. On Tuesday, the state will receive an updated revenue forecast, which will play a large role in shaping these discussions.

• The People for an Affordable Washington campaign continues to call for a smarter approach to state spending, after the doubling of state spending over a decade has failed to improve key outcomes.

Carbon auction results: Prices climbed in the state’s first quarterly carbon auction of the year. Carbon allowances in the March 5 auction sold for $50 each, about 24% higher than the December auction prices.

Helping control prices: Meanwhile, the Legislature is considering a bill that would make key changes to the carbon auctions.

• House Bill 1975 would make more carbon allowances available sooner and set a lower ceiling on maximum prices. Last week, the House passed the bill by a bipartisan vote of 84-11.

AWB’s perspective: AWB believes HB 1975 is an important first step toward fixing the Climate Commitment Act and will help Washington employers plan for the future and manage compliance costs.

Learn more: AWB Government Affairs Director Peter Godlewski is your resource on all things Climate Commitment Act.

GOP budget proposal: Last week, Senate Republicans outlined a plan to close the state’s multi-billion-dollar budget shortfall without raising taxes.

“Third way” budget proposal: AWB, the Seattle Metropolitan Chamber of Commerce, Bellevue Chamber and Washington Roundtable welcomed the Republicans’ budget framework, which prioritizes essential programs without raising business taxes.

“As with the budget approach Gov. Ferguson recently released, the Senate Republicans’ proposal offers a valuable contribution to the debate. We appreciate the willingness of Senate Republicans to think creatively about this budget challenge.”

Revenue forecast: On Tuesday, the state will receive an updated revenue forecast. Democratic lawmakers will then release their budget proposals for the 2025-2027 biennium.

Leadership changes: Last week, AWB named Morgan Irwin as AWB’s interim government affairs vice president, following the resignation of Dave Mastin. Irwin, a former state legislator, joined AWB in 2023 as the government affairs director for land use, housing and transportation.

“I’m confident that Morgan’s leadership will ensure continuity for the AWB Government Affairs staff as they remain focused on your issues for the remainder of session,” AWB President Kris Johnson said. “We wish Dave the best in his next chapter and thank him for his leadership over the past four years.”

Get in touch: Morgan Irwin can be reached at MorganI@AWB.org.

Negotiations paused: Last week, the U.S. paused negotiations on modernizing the Columbia River Treaty, which impacts everything from hydroelectric power to flood control and irrigation in the Pacific Northwest.

• The U.S. and Canada reached a preliminary deal last summer to update the 61-year 0ld treaty. It’s unclear if the Trump administration will resume negotiations to finalize the treaty.

Economic impacts: The Columbia River generates nearly 40% of U.S. hydropower, irrigates $8 billion in crops, and moves 42 million tons of commercial cargo valued at $20 billion annually.

• The fall edition of Washington Business magazine explores why treaty modernization is a win for Washington’s economy.

Civics Bee kick-off: This weekend, middle school students will flex their civics knowledge in the first of four regional competitions for Washington state’s 2025 National Civics Bee competition.

Cheer on students: The public is invited to attend any of the regional contests:

• Stilly Valley Chamber of Commerce competition: 10 a.m. Saturday, Arlington City Council Chambers.

• Walla Walla Valley Chamber of Commerce competition: 9:30 a.m. April 12, Walla Walla Community College.

• Greater Vancouver Chamber competition: 10 a.m. April 26, Kiggins Theatre.

• Kent Chamber of Commerce competition: 10 a.m. April 26, Kent Meridian High School - East Wing Auditorium.

Civic engagement: This is the third year the AWB Institute has partnered with the U.S. Chamber of Commerce Foundation and local chambers to host a National Civics Bee Washington State competition.

• The regional qualifiers will determine the finalists for the National Civics Bee Washington State Finals on June 21 in Olympia. See video highlights from the 2024 finals.

EMPLOYMENT LAW

Lindsey Hueer, AWB’s lead on employment law issues, is tracking these bills:

• UI for striking workers: Senate Bill 5041, which would extend unemployment insurance payments to striking workers, has a hearing this week in the House. The bill already passed the Senate earlier this month. AWB continues to oppose this bill, which would disrupt the balance between employees and employers at the bargaining table and increase UI premiums. Register your opposition to the bill during the hearing at 10:30 a.m. Tuesday in the House Labor & Workplace Standards Committee.

• Self-insured employers/workers’ comp: Senate Bill 5463 would require employers with self-insured workers’ compensation programs to adhere to the good faith and fair dealing standard. State law already functionally requires them to do that with Department of Labor and Industries' broad existing oversight. The primary concern is the increased potential for decertification of a self-insured employer. Even if employers continue to act in good faith, the potential increase will likely cause cost increases in the re-insurance market, resulting in unnecessary substantial cost increases for our state’s large employers.

• Safety and health of working minors: House Bill 1644 would increase penalties for violations relating to the employment of minors. AWB strongly supports workplace safety for working minors, but has concerns about how the bill would be implemented. The bill would add a large amount of additional regulation and burden on employers seeking to hire 16- and 17-year-olds, to such a level that we expect many employers would simply stop hiring minors. This is especially problematic for many of the critical construction trades programs that provide valuable on-the-job training to high school students to prepare them for a career in the trades.

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WORKFORCE

Emily Wittman, AWB’s lead on workforce, is engaging on this bill and others:

• Local journalism grants: Senate Bill 5400 would establish the Washington Local News Sustainability Program to provide grants to local journalists. The funding source has changed from the original bill; instead of diverting funds from workforce education, the bill now proposes a B&O tax surcharge on certain technology companies. AWB continues to opposes this bill. While we support local journalism, we oppose adding new taxes on employers to fund this program. The bill has a hearing at 4:30 p.m. Tuesday in the Senate Ways & Means Committee.

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ENERGY

Peter Godlewski, AWB’s specialist for energy, environment and water legislation, is watching a number of bills, including:

• Climate Commitment Act: AWB was pleased to see House Bill 1975 pass by a bipartisan vote of 84-11 in the House. The bill, which would move the state’s Climate Commitment Act in a positive direction, is now in the Senate. It makes important changes to Washington’s carbon auctions to help manage prices. AWB will testify in support at a hearing at 8 a.m. Wednesday in the Senate Environment, Energy & Technology Committee.

• Clean fuels: AWB opposes House Bill 1409, which would update the state’s clean fuels program with a high stringency that would increase costs for drivers. Not only would this hit anyone who buys gasoline, it would also increase shipping costs, which would raise the costs of goods for employers and consumers.

• Clean building standard: AWB supports House Bill 1543, which would provide additional compliance pathways for the state’s clean building standard. It would give more time, resources and flexibility for meeting the standards of the bill. The clean building standard is a major cost driver; this bill would be a helpful change.

• Lead cookware: AWB supports Senate Bill 5628, which would make important and practical changes to the state’s legislation about lead in cookware to accommodate appliances and other items used in the kitchen. We are glad to see this bill find a path forward to address issues created by the existing lead cookware program.

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Morgan Irwin, AWB’s expert on land use and housing policy, is engaging with a number of bills, including:

HOUSING

• Rent control: House Bill 1217 was approved by the House and is now in the Senate. Lawmakers made several changes to the bill, but AWB continues to oppose it, as it still includes a 7% cap on annual rent increases. AWB will testify against the bill in a hearing at 1:30 p.m. Wednesday in the Senate Housing Committee.

Congress passes stop-gap spending bill, averting shutdown

The U.S. Senate passed a six-month spending bill on Friday night, hours before a government shutdown was set to begin. The 54-46 vote was almost entirely on party lines, with Republicans voting yes and Democrats no. While Democrats considered letting government funding lapse, a group of 10 Democratic senators ultimately helped advance the bill to a vote.

The stop-gap funding bill will keep the federal government open through September. The bill will cut roughly $13 billion in non-defense spending and increase defense spending by $6 billion.

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Inflation eases in February

U.S. consumer prices rose 2.8% in February over the prior year — slightly lower than expectations — according to the latest data from the U.S. Bureau of Labor Statistics.

Core inflation — which excludes volatile food and energy prices — rose 3.1% from a year ago, the lowest since April 2021. While the data is encouraging, economists warn that new tariffs could push up prices, the Associated Press reports.

Washington state industries and consumers brace for tariff impacts

In an interview with KUOW, Washington State Department of Commerce Director Joe Nguyễn shares concerns about how new tariffs could impact the state’s economy, from agriculture to energy and aerospace.

“We estimate about 40% of our jobs are tied to international trade. It's about $60 billion of exports that we have annually. While trade imbalances are a very real concern, tariffs have historically actually hurt our state more than they've helped,” Nguyễn said.

AWB is collecting responses about the impacts of tariffs on Washington businesses. Click here to take the brief survey.

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Two former WA congressional representatives reflect on service

AWB recently sat down with former longtime U.S. Reps. Derek Kilmer and Cathy McMorris Rodgers as they prepared to leave Congress. The interviews are printed in the upcoming edition of Washington Business magazine.

Kilmer, a Gig Harbor Democrat, and McMorris Rodgers, a Spokane Republican, talk about their biggest successes and disappointments, how employers can engage with their representatives, and advice for anyone thinking about running for office.

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Full Court Press to host event in Olympia on March 26

Full Court Press invites AWB members to attend an event at 6 p.m. Wednesday, March 26 in Olympia to learn more about the newly formed nonprofit’s mission.

The organization works to train and recruit candidates for judicial offices in Washington state, with the goal to bring balance to the courts. The event will be held at the McCleary Mansion, 111 21st Ave. SW, Olympia. RSVP to Tim Kovis at tim@fullcourtpresswa.org or 509-528-9586.

Insights on the U.S. economy: Join us on May 14 for AWB’s 2025 Spring Meeting in Vancouver, Washington to hear from Hamza Abdelrahman, senior economic analyst at the National Reserve Bank of San Francisco.

There’s more: AWB invites all employers and professionals to the Spring Meeting, which will feature networking time and panel discussions, including:

• Washington state’s new leadership, with Casey Sixkiller, director of the Washington Department of Ecology, and Kurt Beckett, the new chair of the state’s Energy Facility Site Evaluation Council.

• 2026 FIFA World Cup Washington business impacts, with Peter Tomozawa, CEO of the Seattle World Cup Organizing Committee.

• Transportation — Columbia River Bridge tolling, speakers TBA

• A closer look at federal issues’ impacts, with Jaime Herrera Beutler, R-Wash., former U.S. congresswoman, and former U.S. Rep. Rodney Davis, R.-Illinois, now the head of government affairs for the U.S. Chamber of Commerce.

• 2025 Legislative Session overview, with AWB’s Government Affairs Team.

Book your room: AWB’s room blocks at the Hilton and Hotel Indigo are selling out quickly: Book now to ensure the most convenient lodging option for the event. Room blocks close April 13.

Time to shine: Help AWB recognize the top businesses in Washington — including yours! Nominate now for AWB’s annual slate of awards, presented at our gala Evening of Excellence in November in Seattle. There is no cost to nominate or receive an award. Apply by May 31.

Take a look: Here are a few of our eleven award categories that honor the many ways Washington employers shine:

👷 Employer of the Year

• Recognizing a Washington state employer who has implemented innovative job retention, creation, benefits, and/or compensation plans that fosters a thriving work environment.

• Last year’s winner: AAA Washington of Bellevue was named 2024 Employer of the Year.

⚙️ Manufacturer of the Year

• Recognizing a Washington state manufacturer that has a commitment to business excellence, has found creative solutions to challenges that raise or enhance the industry standard, as well as involvement in state and/or local public policy issues that affect manufacturers.

• Last year’s winner: Jubilant HollisterStier of Spokane was named 2024 Manufacturer of the Year.

💡 Entrepreneur of the Year

• Given to a Washington state entrepreneur whose business is less than 5 years old and has made a significant impact in their industry.

• Last year’s winner: CarbonQuest of Spokane Valley was named 2024 Entrepreneur of the Year.

Check out the entire list of categories and nominate today.

Important benefit: Long-term care (LTC) insurance offers more than just retirement protection. In many cases, LTC premiums can be tax-advantaged for business owners and their employees. Understanding these benefits can be a crucial aspect of your benefits strategy.

Free webinar: AWB invites you to join Mike Anderson from American Independent Marketing at noon Wednesday, April 2 for an informative 30-minute webinar with the latest insights on this valuable opportunity.

Click here to register for the webinar.

Internships are just one way to engage in work-based learning—but they’re not the only option. Employers can connect with students through:

✅ Career awareness activities like guest speaking
✅ Career exploration opportunities like job shadows
✅ Skill-building through mentorship and hands-on experiences

Useful framework: Jobs for the Future (JFF) provides a work-based learning framework that outlines the full range of opportunities, from career exposure to intensive work experiences.

💡 Get Involved! Visit www.washingtonworkforceportal.org to explore how you can connect with students and support Washington’s future workforce.

“At the end of the day, the decisions made at the federal level have global implications, and they will ripple throughout our economy.” ~ Washington State Department of Director of Commerce Joe Nguyễn, speaking about the potential impacts of new tariffs on Washington state’s economy.