Legislative Session Update: Week 3 (January 26-30, 2026)

By Jim Hedrick, GSI WA State Lobbyist and Spokane Regional Advocate

Committee Process

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.

Repealing Tax Breaks

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-Walla Walla) 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

Tuesday, grocery stores were a major focus in committees this week, with several bills advancing efforts to improve food access and regulate pricing. The Senate Labor & Commerce Committee considered SB 6147 (Conway, D-Tacoma), 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-Seattle), 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-Everett), which was passed 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.

BAC and DUI

Wednesday the Senate worked the floor all on a calendar of crime bills. A bill that has gotten a lot of attention for the hospitality industry is SB 5067 which would reduce the blood alcohol concentration (BAC) limit from 0.08 to 0.05 for determining if an individual is driving while under the influence (DUI) of liquor. The Senate approved the 5067 on a narrow 26-23 vote. The bill was introduced last year by Sen. John Lovick (D-Montlake Terrace) a former Washington State Trooper. In his remarks on the Senate floor Sen. Lovick stated, “Drunk driving is a choice. The significant number of deaths and injuries the state is experiencing are preventable. There is an epidemic in traffic safety and the fiscal cost on society is enormous. Far too many people have suffered the tragic consequences of people making bad choices to drive impaired.” Opponents of the bill say there is no evidence that the lower limit will result in a decrease in drunk driving fatalities. SB 5067 may stall out in the House due to increased cost of enforcement.

Climate Commitment Act Compliance

Thursday, HB 2215 advanced out of the House Environment & Energy Committee on a party-line 12–9 vote. The bill targets out-of-state fuel distributors alleged to be manipulating Washington’s fuel market by colluding and intentionally keeping sales volumes below the current 25,000 metric ton reporting threshold under the Climate Commitment Act (CCA). HB 2215 would lower the CCA compliance threshold to 10,000 metric tons, expanding reporting requirements to additional fuel sellers and reducing opportunities for market manipulation. House Majority Leader and prime sponsor Rep. Joe Fitzgibbon (D–Seattle) has pointed to more than 70 LLCs formed in Washington since the launch of the cap-and-trade program that are selling liquid fuel in the state without reporting under current CCA thresholds. The bill now moves to the House Appropriations Committee, where lawmakers will scrutinize the anticipated increase in state enforcement and administrative costs associated with expanded compliance and oversight.

Artificial Intelligence

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-Olympia), 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-Island County) 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-Shoreline) 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-Mukilteo) proposes a framework for high-risk AI, emphasizing risk mitigation, regular reviews, transparency, and consumer notification while balancing innovation and trade-secret protections.

The Week Ahead

The Legislature approaches its first major cutoff on Wednesday, February 4, when bills must pass out of their house-of-origin policy committees to remain viable. The remainder of the week will focus on fiscal committee hearings and the beginning of floor action in both chambers.