Newsletter — April 3, 2025 | | |
POLICY
ECONOMY
ON THE LOCAL FRONT
POLITICAL
RETAIL THEFT & PUBLIC SAFETY
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What we are tracking — WR Legislative Hot List
WR is closely monitoring the bills that have advanced through the legislative process. Each week, we’ll spotlight our weekly “hot list” key legislation that could have the most significant impact on WR members.
Creating an artificial intelligence grant program (HB 1833)
HB 1833 supports small businesses with AI grants for public good. Backed by WR, it's the only AI-related bill advancing this session. Rep. Keaton (R, 25th LD) successfully moved it through the House, and it received a public hearing in the Senate Energy & Environment Committee and is now awaiting executive action. The outlook on this bill advancing is positive, and updates will follow.
Position: WR supports this bill.
Status: April 1, 2025: Scheduled for executive session at 1:30 PM in the Senate Committee on Environment, Energy & Technology.
Extended producer responsibility - EPR for packaging (SB 5284)
The proposed Extended Producer Responsibility (EPR) program faces significant opposition from waste and recycling haulers, who advocate for a needs assessment before full implementation. Recently, costs associated with the program from California have been discussed, with conflicting reports, though proponents plan to move forward with adjustments. The environmental community and several large companies are supporting the measure, viewing it as a more manageable option compared to potentially stricter future legislation. The bill, modeled after Minnesota’s legislation, passed the House Committee on Environment & Energy and will likely receive a hearing in the House Appropriations Committee. Its passage remains uncertain.
Position: WR has concerns with this bill.
Status: March 31, 2025: Executive action taken at 1:30 PM in the House Committee on Environment & Energy.
Supporting the servicing and right to repair of certain products with digital electronics in a secure and reliable manner (HB 1483)
The Right to Repair legislation for digital electronics prompted WR to examine what qualifies as a "digital product." The bill primarily targets devices such as smartphones, laptops, televisions, and any electronics containing a microprocessor. Other types of electronic products are unlikely to be covered under this legislation.
Position: WR has concerns with this bill.
Status: April 1, 2025: Scheduled for executive session in the Senate Committee on Environment, Energy & Technology at 1:30 PM.
| | Sen. Noel Frame speaks at a rally on March. 17, 2025 in support of progressive tax revenue as a strategy to prevent cuts to critical programs across the state. (Photo by Jacquelyn Jimenez Romero/Washington State Standard) | | |
$20 billion tax package threatens retailers and consumers
Democrat lawmakers are proposing a sweeping $20 billion tax package that targets nearly every aspect of the economy, business and occupation taxes, property taxes, payroll taxes, cargo movement, and even wealthy individuals' assets. These measures, introduced in the House and Senate, aim to address budget deficits but come at a steep cost to consumers and businesses alike.
If enacted, this tax package would drive up consumer costs, crush retailers already operating on razor-thin margins, and jeopardize Washington’s economic competitiveness. Retailers, burdened by high payroll and overhead costs, cannot absorb these additional expenses without drastic consequences.
WR opposes these taxes and will fight for exemptions for retail and wholesale activities, as well as protections for cargo movement in the supply chain. Historically, retailing and wholesaling B&O tax rates have been kept low to support these critical industries. Without safeguards, retailers will be forced to cut staff, reduce hours, automate, or even shutter their doors.
Hearings are scheduled this week in the Senate Ways and Means Committee and the House Appropriations Committee. However, committee votes are unlikely until lawmakers finalize a budget agreement and determine the total tax revenue required. The stakes for Washington’s economy couldn’t be higher.
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Curbing escalating payroll expenses for Washington employers
Earlier this month, WR highlighted the mounting regulatory costs burden on retailers. To further illustrate these challenges, the March 2025 Washington State Employer Impact Report provides detailed data illustrating why Washington employers face some of the highest payroll expenses nationwide. The financial strain is particularly severe for retailers operating on slim profit margins of 1-3%.
A few highlights from the report on payroll expenses: Seattle's minimum wage rose to $20.76 per hour in 2025, with small businesses feeling the impact of losing the compensation credit for benefits and tips, raising their labor costs by $3.51 per hour. Additionally, lawmakers are considering raising the statewide minimum wage to $25 per hour by 2031, which could further strain businesses.
On top of rising wages, small businesses face an average 11.9% increase in health insurance premiums for 2025, the largest jump in a decade. WR strongly opposes these measures, as they impose undue burdens on employers already struggling with rising costs. WR will continue to advocate for balanced solutions that support both workers and employers, emphasizing the need for legislation that considers the broader economic impact. Policymakers must carefully consider the economic consequences to avoid potential job losses and higher consumer prices.
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Controversial "Crimes Against the Environment" bill passes committee by one vote
SB 5360, dubbed the "Crimes Against the Environment" bill, narrowly passed the House Environment Committee on Monday by a single vote.
While likely well-intended, this legislation, sponsored by Senator Yasmin Trudeau (D-27), introduces unprecedented legal uncertainty and exposure beyond any existing law.
Under the bill, the Attorney General could bring criminal charges against both businesses and individual employees for alleged environmental violations, regardless of their awareness. The bill applies the lowest legal standard of proof, an inappropriate threshold for cases of this nature.
Adding to concerns, the legislation explicitly exempts government entities. As one legislator noted before the vote, “What is good for the goose should be good for the gander.”
With any luck, House leadership will set this bill aside before it reaches a full vote.
| | Pictured is Gov. Bob Ferguson, center, flanked by Washington Attorney General Nick Brown, left, and Treasurer Mike Pellicciotti, right, at a news conference in Olympia on Feb. 13, 2025. (Ken Lambert / The Seattle Times) | | |
Fiscal responsibility needed as Washington faces budget challenges
Washington’s economy is strong, with steady tax revenues and a healthy 4.3% unemployment rate. Yet, state lawmakers are grappling with what they claim is a $12 billion budget shortfall. Critics argue this deficit is more a result of overspending than a true financial crisis.
Governor Bob Ferguson, who took office in January, has pushed back against calls for new taxes, including a proposed wealth tax and increased business taxes. Instead, he has urged a hard look at spending cuts, including potential state employee furloughs, to balance the budget without harming the economy.
Despite warnings from economic forecasters, lawmakers had previously budgeted for an unrealistic 4.5% revenue increase, leading to unsustainable spending. Over the last decade, the state budget has doubled, even outpacing inflation. Meanwhile, key areas like special education and school maintenance remain underfunded, putting many districts in financial distress.
Governor Ferguson has vowed to protect education funding while addressing the budget gap responsibly. As lawmakers debate solutions, businesses and taxpayers alike are watching closely, hoping for fiscal discipline that avoids stifling job growth and economic stability.
Now is the time for responsible governance, not new taxes and spending.
SeattleTimes.com
| | Image credit: (Peter Bohler / King County) | | |
King County Executive Constantine resigns to become Sound Transit’s CEO
On March 27, the Sound Transit governing board unanimously selected King County Executive Dow Constantine as the agency’s new CEO. In addition to 15 years as County Executive, Constantine has served as a leader on the Sound Transit board.
With the move, Constantine’s salary will increase from just under $250,000 as County Executive to $450,000 plus bonuses as Sound Transit’s CEO. The Seattle Times editorial board has challenged him to demonstrate that Sound Transit made the right choice in selecting him over candidates with direct experience managing a transit agency.
For the first time in 15 years, King County has a new Executive. On April 1, Shannon Braddock, a longtime senior staffer to King County Councilmember Joe McDermott and later Deputy County Executive under Constantine, stepped in as interim County Executive.
This appointment makes her the first woman to serve as the leader of the state’s largest county. The King County Council is expected to take action soon to select Braddock as the acting County Executive, filling that role until the next County Executive is elected in the November general election.
| | Mayors from Bellevue, Federal Way, Kirkland, Redmond, Des Moines, and Renton gathered for a joint news conference on March 28, 2025. | | |
Puget Sound mayors warn against business tax hikes
A coalition of mayors from a dozen Puget Sound cities is cautioning lawmakers against proposed tax increases, arguing they could lead to job losses and economic decline. Bellevue Mayor Lynne Robinson, along with leaders from Federal Way, Kirkland, Redmond, Des Moines, and Renton, expressed concerns that higher business taxes would push companies out of Washington, reducing revenue rather than increasing it.
Among the proposals is a 1% business and occupation surcharge on companies earning over $250 million, introduced by House Majority Leader Joe Fitzgibbon, and a 5% payroll tax from Sen. Rebecca Saldaña, which would apply to businesses with over $7 million in wage expenses. The Seattle payroll tax, a similar initiative, has already contributed to job cuts, with Amazon scaling back its local workforce and tax revenue falling $47 million short of projections.
The mayors emphasized that tech-sector jobs act as economic multipliers, supporting employment across industries. They also warned that, given existing economic pressures, such taxes could accelerate a downturn. As Washington navigates an uncertain economy, lawmakers should consider the long-term consequences of these policies before imposing further burdens on businesses.
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Join Tumwater School District’s College & Career Fair!
Tumwater School District (TSD) is inviting local businesses and organizations to participate in its district-wide College & Career Fair on Tuesday, April 22, 2025, from 6:00–8:30 PM at Tumwater High School. This event is an opportunity to connect with students and families, showcasing career pathways, job opportunities, and educational requirements across various industries.
TSD is seeking businesses, colleges, and agencies to host a table, share insights about career and education opportunities, and engage students with hands-on activities that bring different career fields to life. This is a great chance to inspire the next generation of workers and help them navigate their futures.
For more details or to sign up, please reply to Marcy Proctor, Career Connected Learning Coordinator, Tumwater School District.
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Federal legislative and trade updates impacting retail
Faster Labor Contracts Act
Last week, the Coalition for a Democratic Workplace sent a letter to congressional leaders opposing the “Faster Labor Contracts Act (S.844),” introduced by Sen. Josh Hawley, R-Mo., which could lead to the federal government mandating the terms of contracts between unions and companies. The legislation is nearly identical to a provision in Sen. Bernie Sanders’, I-Vt., PRO Act and similar to a provision in the Employee Free Choice Act, both of which Congress has repeatedly rejected on a bipartisan basis. As noted in the letter, the “bill is bad for American workers, employers, and the overall economy.” You can view more on this issue at NRF’s recent blog post.
Trump Imposes Sweeping Tariffs, Markets React with Uncertainty
On April, 2, 2025, President Trump announced a significant shift in U.S. trade policy, unveiling a sweeping tariff plan. The new policy includes a 10% baseline tariff on all imports, set to take effect on April 5, as well as higher rates for select nations deemed “bad actors” in trade. These nation-specific tariffs include a 34% duty on Chinese imports, 24% on Japanese goods, and 20% on products from the European Union, all of which will be enforced starting April 9. Additionally, a 25% tariff on all foreign-made automobiles took effect at midnight.
The announcement, which Trump called “Liberation Day” for U.S. trade, has already sent shockwaves through financial markets. U.S. stock futures dropped between 1% and 3% in post-market trading, with major companies like Apple, Amazon, and Nike seeing losses of 4% or more. Investors fear the tariffs could slow economic growth, increase inflation, and add volatility to global markets as they reopen on Thursday. The White House argues the move is necessary to level the playing field, but concerns remain about its broader economic impact.
| | A Target employee wearing a mask works in an aisle of toys. Courtesy of Target | |
HB 2015: Public safety funding bill advances from committee
On Tuesday, HB 2015, sponsored by Representative Debra Entenman (D-47), passed the Senate Law and Justice Committee with bipartisan support. Both Chairwoman Senator Manka Dhingra (D-45) and Ranking Republican Senator Jeff Holy (R-6) voted in favor of the measure.
HB 2015 establishes a grant program to support the hiring of police officers and allows local governments to allocate funding for prosecutors, defense attorneys, and diversion and treatment programs to enhance public safety.
WR strongly supports the passage of HB 2015. Ensuring a safe and welcoming workplace for employees and a secure, enjoyable shopping experience for customers is essential to the success of the retail industry and the well-being of our communities.
The bill is now under consideration by budget writers, with a funding request of $100 million, an investment supported by Governor Bob Ferguson. WR urges the legislature and the Governor to fully fund public safety, one of their most critical responsibilities.
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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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