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2026 Legislation of Note

Legislation of Note

LAND USE & HOUSING

Updates from Ken Short, lead on transportation, land use and housing:

  • Building homes in commercial corridors: Senate Bill 6026, sponsored by Rep. Emily Alvarado, D-Seattle, and requested by Gov. Ferguson, aims to encourage housing development on underutilized commercial properties. AWB supports this bill because it gives communities the option to unlock new development opportunities for housing, while protecting valuable industrial land. In a hearing Friday, Lt. Gov. Denny Heck discussed a recent report highlighting the potential to add thousands of new homes on underused or vacant commercial land, noting that the state needs to add 55,000 housing units a year to reach the projected need. “We need to be bold. We have to build a lot more homes, of all kinds, for all our neighbors.” The commercial-to-residential concept is also supported by former Gov. Christine Gregoire, as part of her work with Challenge Seattle, and was featured at the 2024 Cascadia Innovation Corridor Conference. The Seattle Times editorialized in support of the bill: “This one should be a slam-dunk.”

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REGULATORY REFORM

Updates from Emily Wittman, director for education, workforce, child care, health care & federal affairs:

  • Regulatory efficiency: House Bill 2198, sponsored by Rep. Adison Richards, D-Gig Harbor, and requested by Gov. Ferguson, creates transparency and accountability for state permitting and licensing. It also requires state agencies to provide refunds for application fees if they fail to meet a published decision time for a completed credential application. The bill has a hearing at 8 a.m. Friday in the House State Government & Tribal Relations Committee. Last week, AWB testified in support on the Senate companion bill, sharing real-world examples of how slow and unpredictable permitting timelines impact businesses. This bill, which has support from trade associations, labor unions and government, is an important step for regulatory reform.

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EMPLOYMENT LAW

Updates from James Crandall, lead on legal affairs, labor & employment law:

  • Banning noncompetes: Senate Bill 5437, sponsored by Sen. Derek Stanford, D-Bothell, is the same bill we saw last year proposing to ban all noncompete agreements. AWB outlined concerns about the bill in a hearing this morning in the Senate Labor & Commerce Committee. AWB supports the current law that limits the use of noncompete agreements to high-wage earners, striking a balance between worker mobility and legitimate business interests. “Without the availability of narrowly tailored noncompetes, employers may be less willing to invest deeply in employee development,” AWB’s James Crandall testified.

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TAX & FISCAL POLICY

Updates from Max Martin, tax and fiscal policy lead:

  • Payroll tax: House Bill 2100, sponsored by Rep. Shaun Scott, D-Seattle, imposes a 5% payroll tax on private employers with workers earning more than $125,000 a year. It applies to companies with more than 20 employees, payroll in excess of $7 million and gross receipts of more than $5 million. This would be a direct hit to job creation and wage growth. It would punish employers for growing and succeeding, and encourage them to outsource jobs, slow down hiring, shift jobs out of state or cap wages to avoid triggering the tax. The bill has a hearing at 1:30 p.m. Thursday in the House Finance Committee. Sign in CON to register your opposition to the bill.

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ENERGY & ENVIRONMENT

Updates from Peter Godlewski, AWB’s lead on energy, environment and water legislation:

  • Data centers: Senate Bill 6171, sponsored by Sen. Sharon Shewmake, D-Bellingham, creates new requirements for large energy-using facilities, such as data centers. AWB opposes this bill because it would restrict the ability to attract new data centers and create challenges for existing industrial customers. The bill has a hearing at 10:30 a.m. Friday in the Senate Environment, Energy & Technology Committee. The House version, House Bill 2515, is scheduled for a hearing at 8 a.m. Thursday in the House Environment and Energy Committee.

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