Newsletter — January 17, 2025 | |
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POLITICAL NEWS
POLICY
IN THE NEWS
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The Washington state House of Representatives readies for opening ceremonies of the 2025 legislative session on Monday. | |
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Washington State 2025 Legislative Session commences with ceremonial events
The 2025 Legislative Session officially began on Monday, January 13, at noon with the swearing-in of legislators and the election of leadership. Interestingly, the House of Representatives elects its Speaker, Laurie Jinkins, while the Lieutenant Governor, Denny Heck, who presides over the Senate, is chosen through a statewide vote.
On Tuesday, retiring Governor Jay Inslee delivered his final “State of the State” address to a joint session of the House and Senate. The following day, newly elected Governor Bob Ferguson was sworn in, capped off by a grand inaugural ball at the Capitol, the first in years.
In-between speeches and ceremonies committees began with orientations, work sessions and hearings. With many new legislators, giving them a firm foundation on committee and floor process is essential for their initial success.
The session is scheduled to last 105 calendar days, concluding on April 27. If legislators do not complete their work, the Governor may call them back for 30-day “Special Session” increments, although Washington has avoided special sessions in recent years.
For more legislative information: www.leg.wa.gov and the legislative hotline is: 1-800-562-6000.
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Gov. Jay Inslee reacting to his official portrait which was unveiled on Jan. 14. Jacquelyn Jimenez Romero / Washington State Standard | |
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Former Gov. Inslee reflects on legacy and urges fiscal responsibility in farewell address
After 12 years in office, former Washington Governor Jay Inslee delivered his final State of the State address, bidding farewell to the Legislature. As he prepares to transition leadership to Governor-elect Bob Ferguson, Inslee highlighted the progress achieved during his tenure and the challenges that lie ahead.
Under Inslee’s leadership, Washington’s operating budget grew significantly, increasing from $38 billion to $75.5 billion. This growth funded critical investments in mental health, housing, education, and climate initiatives. However, the state now faces a projected budget shortfall of over $12 billion for the upcoming biennium.
In his address, Inslee urged lawmakers to avoid drastic budget cuts, warning of the long-term damage caused by similar actions during the Great Recession. Instead, he advocated for the implementation of a wealth tax targeting the state’s ultra-wealthy residents, which could generate billions in new revenue.
Reflecting on his legacy, Inslee highlighted key accomplishments, including the creation of the Family Medical Leave program and the implementation of Washington’s cap-and-trade system. As he leaves office, Inslee expressed confidence in the resilience of Washingtonians and optimism for the state’s future.
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Photo credit: Governor Bob Ferguson's office | |
Governor Ferguson lays out priorities
Governor Bob Ferguson was sworn in on Wednesday, January 15, 2025, before a joint session of the Legislature, where he outlined his vision and priorities for Washington State.
WR was pleased to hear Governor Ferguson reiterate his commitment to supporting Senator Jeff Holy’s proposal for $100 million in local government grants to increase the number of law enforcement officers in the state. Washington currently ranks last in the nation for officers per capita. Retailers have long been frustrated by the lack of resources in many jurisdictions to combat retail theft and organized retail crime. WR will also advocate for funding to support prosecutors, defense attorneys, and the Attorney General’s Organized Retail Crime Task Force. We look forward to collaborating closely with the Governor’s office on these initiatives.
One of the most significant challenges Governor Ferguson faces is a revenue shortfall estimated to range from $4 billion to $16 billion, depending on the metrics used. WR was encouraged to hear that the Governor plans to take a comprehensive approach to state spending, prioritizing programs to stay within existing revenues—similar to how families and businesses must budget. He emphasized that relying solely on tax increases to balance the budget is not his preferred approach.
Additional priorities that stood out include permitting reform and housing affordability, both of which received bipartisan support. The Governor announced a policy ensuring that if permits are not issued within the required timeframe, businesses and citizens will not be charged fees. WR strongly supports this common-sense approach. Governor Ferguson also appointed Lt. Governor Denny Heck to lead the state’s housing affordability efforts, signaling a strong commitment to tackling this pressing issue.
Washington Retail congratulates Governor Bob Ferguson as he begins his four-year term serving the citizens of Washington State. We look forward to working closely with the Governor and his team to strengthen and support the retail industry.
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Glamour and unity shine at Governor’s Inaugural Ball
On January 15, the Washington State Capitol Campus came alive with celebration as thousands gathered for the 2025 Governor’s Inaugural Ball, hosted by the Thurston County Chamber of Commerce. The elegant affair marked the swearing-in of Governor Bob Ferguson and kicked off the new legislative session.
Amidst heated tents and lively music, guests mingled, savoring hors d’oeuvres prepared by various Washington State Community College culinary students. The ball featured performances by artists such as Ethan Tucker, DJ K12, Dukes of Swing, and The Scrunchies, with highlights including the Squaxin Island Canoe Family's cultural presentation in the Rotunda.
The event also marked transitions, as outgoing Governor Jay Inslee's official portrait was unveiled earlier in the week. In his inaugural address, Governor Ferguson emphasized bridging partisan divides and pursuing reform, setting a hopeful tone for his administration.
With a mix of tradition, unity, and festivity, the ball not only showcased Washington's diverse communities but also reaffirmed the Capitol as a gathering place for celebration and connection. WR’s team joined the festivities, connecting with state leaders and community members to celebrate the shared vision of a stronger, more united Washington.
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WR 2025 legislative priorities
Washington’s economy has demonstrated resilience, yet uncertainty remains. Each legislative session, hundreds of state bills directly impact the retail sector. WR’s Policy and Government Affairs team collaborates closely with retailers to advocate on their behalf. Although federal initiatives may capture headlines, it is often state legislation that has the most significant effects on the industry. As the leading voice for retailers in Washington State, WR is committed to championing policies in the 2025 legislative session that foster stability, safeguard businesses, and support the growth and success of retailers and their employees.
WR’s 2025 legislative priorities include the following issue areas:
- Artificial Intelligence
- Environmental Regulations
- Public Safety, Retail Theft, & Organized Retail Crime
- Taxation, New Revenue, & Spending
- Employment Law
- Consumer Protection
- Controlled Substances
- Fair Enforcement & Regulation
WR 2025 Legislative Priorities
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Exemption for small business & nonprofits from high salary thresholds
State overtime exempt salary rules have negatively impacted workers in their work hour flexibility, training and promotion opportunities. Since the new rules’ implementation in 2020, the minimum salary threshold has risen by 93%, compared to just a 21% increase in the minimum wage. These high salary thresholds have also jeopardized the ability of nonprofits and main street small businesses to meet their communities' needs.
A January 15 public hearing was held in the House (do we know the name of the committee) on HB 1184 This legislation would provide a narrow exemption from overtime provisions to ease the burden for small businesses with less than 50 employees and certain nonprofits with fewer than 50 FTE at each location.
The hearing from Wednesday, January 15, can be watched here.
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Plastic producer registration and reporting for 2025 now open
Registration and reporting for plastic producers in Washington is now open and runs through April 1, 2025. All producers of covered plastic products, including trash bags, beverage bottles, and containers for household cleaning and personal care items, must register annually using the Waste Reduction Portal. This year’s registration requires resin data from 2024.
Producers meeting post-consumer recycled content (PCRC) requirements must also submit annual reports by April 1. For this cycle, reporting applies to plastic trash bags and beverage bottles. Requirements for household cleaning and personal care containers will begin in 2026.
Updated guidance on PCRC laws is now available, including details on registration, covered products, fees, and penalties. Additionally, a five-part series of recorded information sessions covers everything from covered product categories to compliance.
Special rules apply for non-compostable film bags and compostable products, including color restrictions and labeling standards. Misleading terms like "biodegradable" are also banned, with penalties for violations.
For more information, visit Ecology’s Waste Reduction Portal or email the Organics Management Team at organics@ecy.wa.gov. Ensure compliance to avoid penalties and support Washington’s sustainability goals.
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Photo credit: (Thanasis/Getty Images) | |
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WR champions fashion industry on day 1 of 2025 legislative session
The 2025 legislative session kicked off the first day with a public hearing on HB 1107, which targets increasing supply chain transparency in the fashion industry. The legislation, which seeks to impose new reporting requirements on producers and retailers, was the first bill brought forth for discussion in the House Environment and Energy Committee.
WR has taken a lead on the issue, forming a broad industry coalition who share concerns about the bill’s scope and potential impacts. Ahead of the hearing, WR submitted a detailed letter to the bill’s sponsor and committee members outlining some of the key concerns retailers and the broader coalition have with the proposed legislation including vague definitions, compliance burdens, and the need for early collaboration.
During the hearing, WR convened a panel of representatives from AWB, Northwest Grocery Retail Association, and American Apparel & Footwear Association. Panelists expressed concerns including the practicality of state-level oversight of global supply chains and the risk of passing unintended financial burdens onto retailers and consumers.
Crystal Leatherman, WR’s Director of Local & State Government Affairs, emphasized the importance of collaboration in crafting practical solutions that address environmental challenges without undermining the industry. WR remains committed to fostering constructive dialogue to ensure balanced, workable, effective policies that do not harm the retail industry.
Click here to view the coalition letter.
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JCPenney and Forever 21 parent merge to form Catalyst Brands
JCPenney has merged with Sparc Group, the parent company of Forever 21, to create a new entity called Catalyst Brands. The merger combines iconic brands, including JCPenney's exclusive lines (Stafford, Arizona, Liz Claiborne) and Sparc's AéropostaleT, Brooks Brothers, Eddie Bauer, Lucky Brand, and Nautica. Catalyst Brands launches with over $9 billion in revenue, 1,800 store locations, and 60,000 employees, with plans to leverage data-driven and AI technology to enhance customer experiences.
Catalyst's leadership will be headed by Marc Rosen, former JCPenney CEO, who will oversee the integration of the portfolio. The company will be headquartered in Plano, Texas, with additional offices in New York, Los Angeles, and Seattle. Shareholders in the joint venture include Simon Property Group, Brookfield Corporation, Authentic Brands Group, and Shein.
In a significant move, Catalyst Brands also announced the sale of U.S. operations of Reebok and is exploring strategic options for Forever 21. This merger follows JCPenney’s bankruptcy filing in 2020, and Forever 21’s 2020 acquisition by Authentic Brands Group, marking a new chapter for these retail giants.
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WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
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Renée Sunde, President/CEO — 360.200.6450 — Email
Mark Johnson, Sr. VP of Policy & Government Affairs — 360.943.0667 — Email
Crystal Leatherman, Dir of Local & State Government Affairs — 360.200-6453 — Email
Rose Gundersen, VP of Operations & Retail Services — 360.200.6452 — Email
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