Newsletter — March 06, 2025

IN THIS ISSUE

POLICY

ECONOMY

ON THE LOCAL FRONT

POLITICAL NEWS

RETAIL THEFT & PUBLIC SAFETY

What we are tracking — WR Legislative Hot List

After the fiscal cutoff, WR is closely monitoring the bills that have advanced through the legislative process. Each week, we’ll spotlight key legislation that could have the most significant impact on WR members.

Artificial Intelligence (HB 1170)

Objective: Informing users when content is developed or modified by artificial intelligence.
Position: WR is opposed to this bill.
Status: January 31, 2025: referred to rules for review.

Solid Waste Management (HB 1150)/(SB 5284)

Objective: Improving Washington’s solid waste management outcomes.
Position: WR has concerns with these bills.
Status: February 28, 2025: HB 1150 was referred to rules for review; SB 5284 in Rules for 2nd reading.

Beverage Refund Bill (HB 1607)/(SB 5502)

Objective: Providing for a recycling refund program for covered beverage containers to be implemented by a producer responsibility organization.
Position: WR has concerns with these bills.
Status: February 28, 2025: HB 1607 was referred to rules for review; SB 5502 passed to Rules for 2nd reading.

Expanding the Paid Family and Medical Leave Program (HB 1213)

Objective: Eliminating job protection and healthcare continuation exemptions for small businesses
Position: WR is opposed to this bill.
Status: February 28, 2025: HB 1213 was referred to rules for review.

Workers Compensation: Industrial insurance/duties (SB 5463)

Objective: Expanding the "duty of good faith and fair dealing" for self-insured employers
Position: WR is opposed to this bill.
Status: February 28, 2025: SB 5463 is Waiting to be pulled from Rules for consideration.

Gov. Bob Ferguson speaks to reporters at the state Capitol on Feb. 27, 2025 about his plans to cut state spending by about $4 billion over four years. (Photo by Bill Lucia/Washington State Standard)

Governor Ferguson proposes $4 billion in budget savings to address shortfall

Governor Bob Ferguson has unveiled a plan to save nearly $4 billion to help address Washington’s historic $15 billion budget shortfall. His proposal maintains key investments in K-12 education, public safety, housing assistance, Medicaid, and cash benefit programs while implementing strategic spending reductions.

Ferguson’s plan focuses on government efficiency, pausing or phasing in new spending, scaling back recent expenditures, and limiting the replacement of one-time federal funding. Notable savings include consolidating office spaces, reducing travel expenses, and adjusting state-funded marketing efforts. Additionally, Ferguson proposes a gradual increase in childcare reimbursement rates rather than an immediate hike, saving $144 million.

To further cut costs, Ferguson suggests a one-day-per-month furlough for most state employees, generating $300 million in savings over two years. His approach builds on Governor Inslee’s $3 billion in proposed reductions, collectively trimming the deficit by $7 billion.

Ferguson emphasized the need for fiscal responsibility while protecting essential services. “This challenge demands thoughtful leadership,” he stated. “We must prioritize while safeguarding Washingtonians’ core needs.”

State agencies have identified an additional $1 billion in potential savings, which will be reviewed by the Legislature as they work to close the budget gap.

The full list of Ferguson’s current proposals is available here for the supplemental budget, and here for the 2025-27 biennium.

Members of the Washington state House of Representatives are sworn into office by state Supreme Court Justice Steven González, on Jan. 13, 2025 in Olympia. (Laurel Demkovich/Washington State Standard)

Floor action underway

Committee work on bills has now concluded in their respective House of origin. Both policy and fiscal committees have assessed and determined which measures will proceed. These bills are now in the hands of the Rules Committee, which will decide which measures move forward to the floor for potential consideration. Many bills enter the Rules Committee but ultimately stall, never receiving a vote on the floor.

Even once a bill clears the Rules Committee and is placed on the legislative calendar, there is no assurance that it will be debated or voted on. The final decision rests with legislative leadership, specifically the Speaker of the House and the Senate Majority Leader, in conjunction with their teams. They carefully evaluate the level of support for each bill before determining whether it should be brought to the floor. Bills without sufficient backing are less likely to be considered, as leadership focuses on measures that have a clear path to approval.

The next critical deadline is 5:00 p.m. on March 12, when all bills—except those essential to the implementation of the budget—must have passed out of their House of origin. It is not unusual for a controversial bill to be taken up at the last possible moment, often just before the cutoff time. Once debate begins, it must be concluded, sometimes extending into the early hours of the following day.

Throughout this process, WR remains actively engaged in advocating against harmful bills, promoting beneficial legislation, and refining proposed measures to better support the retail industry.

Upcoming rule changes for alcohol placement in retail stores

The Washington State Liquor & Cannabis Board (LCB) is considering new rules on alcohol product placement in retail stores to prevent youth access. Retailers selling beer, wine, and spirits should review the proposed regulations and provide feedback by

Friday, March 7.

Key Proposed Changes:

Large Retailers (Over 2,500 sq. ft.):

Alcohol cannot be displayed near nonalcoholic products, checkout areas, or on endcaps (with some exceptions).
Mini bottles of liquor must be secured.
New signage requirements will apply.

Small Retailers (Under 2,500 sq. ft.):

Liquor cannot be placed near nonalcoholic beverages (except bottled water).
Alcohol must be at least three feet off the floor and physically separated from nonalcoholic items.
Mini bottles of liquor must be secured, and signage requirements will apply.

How to Get Involved

Retailers are encouraged review the tentative draft rulemaking language and provide feedback during one of the upcoming stakeholder meetings:

📅 Monday, March 10 | 10 a.m. - 12 p.m.

Click here to join the meeting | Meeting ID: 237 938 990 487 | Passcode: Uw9N5vu3

Or call: (833) 322-1218, 10323378# (Toll-free)

📅 Thursday, March 13 | 1 p.m. - 3 p.m.

Click here to join the meeting | Meeting ID: 258 364 408 766 | Passcode: k79GU3hh

Or call: (833) 322-1218, 996029307# (Toll-free

For more details, visit the LCB website or reach out to Crystal Leatherman, WR Director of Local & State Government Affairs for guidance.

Plastic producer registration & reporting now open

The 2024 plastic producer registration and reporting cycle is underway. Businesses identified as producers of plastic trash bags and plastic beverage bottles (excluding 187 ml wine bottles and dairy milk containers) must register and report by April 1, 2025. Even de minimis producers or those whose Post-Consumer Recycled Content (PCRC) requirements have not yet taken effect must complete registration.

So far, 46 producers have registered. Those who fail to register risk penalties of up to $1,000 per day. Producers should verify their contact details and include a secondary contact to ensure smooth communication.

Key Reminders:

Annual Fees vs. Penalties: Fees are based on plastic weight sold, while penalties apply for non-compliance.
Account Access: If a previous employee managed your account, contact Ecology’s Recycled Content Team for access.
Resources Available: Ecology has recorded informational sessions to guide producers through registration and reporting.

For questions, email Recycledcontent@ecy.wa.gov or call 360-742-9874. Stay compliant and register today!

Mercury-Containing Light Recycling Program and upcoming sales ban

Washington residents and businesses can recycle mercury-containing bulbs for free through the LightRecycle program. This initiative, funded by an environmental handling fee on retail sales, allows individuals and businesses to drop off bulbs at collection sites statewide.

Accepted Bulbs & Limits:

Compact Fluorescent Lights (CFLs): Unlimited daily recycling for screw-based CFLs.
Fluorescent Tubes: Up to 15 pin-based tubes per day.
High-Intensity Discharge (HID) Lamps: Up to 2 per day.

Upcoming Sales Ban

If you’re planning a lighting upgrade, consider switching to LEDs. Washington will ban the sale of most mercury-containing lights by 2029, with LightRecycle collections ending in 2035.

Business Participation

Businesses that purchase bulbs at retail in Washington qualify for free recycling. However, businesses must handle lights as universal waste if purchased wholesale or exceeding daily limits.

For more details and drop-off locations, visit LightRecycle Washington.

The risks of privatizing labor law enforcement through private rights of action

Washington State’s Legislature is increasingly relying on Private Rights of Action (PRAs) to shift the enforcement of labor laws from state agencies to individuals. This approach empowers employees to sue for violations, significantly raising the legal risks for employers. Several recent proposals highlight this growing trend:

HB 1308 requires employers to grant employees access to their personnel files within 21 days of a request. Small retailers, particularly those without dedicated HR staff, may face challenges in complying, exposing them to potential lawsuits.
HB 1524 mandates that employers provide panic buttons to isolated employees. Non-compliance could lead to legal action.
HB 1402 restricts when employers can require a driver’s license for a job application. Employers who unknowingly fail to comply risk being sued.

The consequences of this shift are already apparent. For instance, the Pay Transparency Act, which requires salary disclosures in job postings, has resulted in over 200 lawsuits and an estimated $500 million in liability, with average settlements reaching around $2 million.

This trend is also influencing the legislative budget process, where PRAs are being used to reduce agency fiscal notes, thereby transferring enforcement responsibilities to the courts. Unlike previous regulations, these new mandates do not include funding for employer education or outreach, leaving employers to navigate the complex landscape on their own.

As more labor laws incorporate PRAs, employers must remain vigilant to avoid costly litigation. Proactive compliance is essential to mitigate the growing legal risks in Washington State.

Trump’s tariffs on Canada and Mexico take effect, sparking trade tensions

President Trump’s 25% tariffs on goods from Canada and Mexico took effect Tuesday after negotiations on fentanyl smuggling and migration failed to satisfy the administration. Energy products like crude oil and natural gas will face a 10% tariff. In response, Canada announced retaliatory tariffs on nearly $100 billion of U.S. goods, while Mexico is preparing its own measures.

The move has unsettled U.S. automakers, who fear disruptions to North American supply chains. Unlike past negotiations, Commerce Secretary Howard Lutnick offered no assurances of exemptions under the U.S.-Mexico-Canada Agreement (USMCA), leaving car manufacturers uncertain.

Meanwhile, additional tariffs on Chinese imports have also increased by 10%, intensifying trade tensions. China has vowed countermeasures, while analysts warn of potential inflationary impacts.

As these tariffs take hold, businesses are bracing for economic ripple effects, from rising costs to potential job losses. The retail industry, already navigating supply chain challenges, could see higher prices passed on to consumers.

With Canada and Mexico responding in kind, and China weighing its next move, the coming months could determine whether these tariffs escalate into a broader trade conflict or lead to renewed negotiations.

Economic growth continues, but policy uncertainty clouds 2025 outlook

The strong economic momentum of 2024 is expected to carry into 2025, but public policy decisions could create uncertainty for retailers, according to National Retail Federation (NRF) Chief Economist Jack Kleinhenz. In NRF’s latest Monthly Economic Review, Kleinhenz highlighted key economic trends, including steady consumer spending and job growth, but warned that ongoing debates on tariffs, immigration, deregulation, and taxes could impact business confidence.

Retail sales, excluding auto dealers, gas stations, and restaurants, rose 3.6% year over year in 2024, supported by job and wage growth. However, inflation remains a concern, with the Consumer Price Index rising 3% in January and producer prices up 3.5%. Consumer sentiment also dropped in February, reflecting inflation fears and policy uncertainty.

While Kleinhenz sees economic fundamentals as strong, he cautioned that unclear government policies could slow investment and hiring decisions. With inflation on the rise, the Federal Reserve is unlikely to cut interest rates soon, further adding to economic unpredictability.

Retailers should stay informed as these policy decisions unfold, as they will play a significant role in shaping the economic landscape in 2025.

Downtown Seattle’s recovery gains momentum

Downtown Seattle is on the path to a “bloom loop,” signaling a hopeful shift from the pandemic-era “doom loop,” according to business leaders and city officials at the recent State of Downtown event.

Jon Scholes, president of the Downtown Seattle Association (DSA), highlighted the city’s progress after years of pandemic-driven challenges. While issues like high office vacancy rates and crime persist, key indicators suggest a turnaround. In 2024, local visitors to downtown surged 20% to 1.1 million, and foot traffic in the Pike-Pine corridor surpassed pre-pandemic levels. Office leasing also hit a five-year high, with 448 new leases signed.

Seattle’s largest private employer, Amazon, has begun bringing workers back to the office full-time, already boosting foot traffic. January 2025 data showed the second-highest daily average of worker foot traffic since March 2020 and nearly 2 million unique visitors downtown—94% of pre-pandemic levels.

Mayor Bruce Harrell and Governor Bob Ferguson expressed optimism about Seattle’s recovery, emphasizing continued investment in the city’s core. “2024 was a great year,” Harrell said. “And going into 2025, this is when we dig deep.”

As businesses, workers, and visitors return, Seattle’s retail and economic landscape is poised for further revitalization.

Seattle Council Committee hears police update from new Chief

On February 25, the Seattle City Council’s Public Safety Committee heard a presentation from Interim Police Chief Shon Barnes.

The Interim Chief opened with his vision for the Seattle Police Department (“SPD”):

"The Seattle Police Department will aim to create and maintain a safe and supportive Seattle through our commitment to Excellence, Selfless Public Service, Resilience, Community Partnerships, and Evidence-Based Policing Practices."

Next, he discussed his approach to improving officer retention, which has been a major challenge over the past 5 years. Chief Barnes pledged to:

Listen and Respond to Employee Feedback
Negotiate Timely Labor Contracts
Invest in Officer Safety and Wellness
Promote Internal Procedural Justice
Develop Our People

It’s worth noting that the Seattle Police Officers Guild worked for three years on an expired contract before a new contract was approved in 2024. This contract made the Seattle police the highest paid in the state. However, this retroactive contract only covered the time period in which officers worked without a contract. The City is now negotiating a contract to cover 2024 and future years.

The Interim Chief shared good news about police recruitment efforts. Last year, SPD saw a 123% increase in unique applicants and a 139% jump in applicants who passed the police exams. For the first time since 2019, SPD achieved a net gain in officers, although it was just a net gain of a single officer. In terms of total officers, SPD peaked in 2017 with 1,316 officers before plunging the following years. With 907 officers, SPD reached its low ebb last year. Chief Barnes projects having 970 officers in 2025, jumping to 1,024 in 2026.

Beyond the drop in officers, SPD has seen a slew of lawsuits by officers and senior leadership in the department over the past few years. With new leadership at the top of the department and improved recruitment and retention, SPD could be facing a much brighter future with more police officers to improve public safety.

Speak out on tariffs – Tell Congress how they impact your business

The National Retail Federation (NRF) is calling on retailers to make their voices heard in Congress regarding the impact of tariffs on businesses and consumers. The uncertainty surrounding U.S. trade policy and potential tariffs is beginning to affect consumer confidence and the affordability of everyday goods.

As job creators and key players in the economy, retailers are directly affected by these policy shifts. Now is the time to share your experiences and ensure lawmakers understand how trade uncertainty is influencing operations, pricing, and future business plans.

Join NRF in urging Congress to take action .

WR joins call to Congress to permanently extend pro-growth tax reforms

WR has joined nearly 500 state and local chambers and national trade associations in urging Congress to make key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) permanent. Led by the U.S. Chamber of Commerce, this effort highlights the importance of pro-growth tax policies in boosting wages, supporting job creation, and helping families navigate inflation.

The coalition is calling on lawmakers to adopt a current-policy baseline in upcoming tax reform discussions. This approach would prevent a $4 trillion tax increase on American families and businesses while ensuring economic stability and long-term investment. Extending the TCJA would provide certainty for employers, accelerate productivity, and drive nationwide prosperity, all without increasing the deficit relative to current policy.

Now is the time for Congress to act and secure lasting economic growth. Learn more about this initiative here: Chambers, Associations Urge Congress to Permanently Extend Pro-Growth Tax Reforms .

Public safety remains a legislative priority

Public safety continues to be a top priority for both the Legislature and the Governor, as demonstrated by the progress of key legislation through policy and fiscal committees to floor action.

Several measures aim to create funding streams, expedite processes, and incentivize the hiring and retention of prosecutors, defense attorneys, and law enforcement. WR is particularly pleased with the advancement of SB 5060, which passed the Ways and Means Committee with strong bipartisan support and is now up for consideration on the Senate floor. This bill establishes a grant program to help local governments hire and retain law enforcement officers, which is critical support for a state that currently ranks last in the nation for law enforcement officers per capita. The next step is securing $100 million in funding through the Operating Budget, a measure the Governor has strongly endorsed.

WR remains committed to advocating for comprehensive public safety solutions, including increasing law enforcement personnel, expanding access to prosecutors and defense attorneys, and enhancing mental health and substance abuse treatment programs. Public safety is like a four-legged stool—it requires all four legs to be stable and effective.

Bipartisan coalition calls on Congress to combat organized retail crime

A bipartisan coalition of 38 state and territory attorneys general is urging Congress to take action against the growing threat of organized retail crime. In a letter spearheaded by the National Association of Attorneys General (NAAG), the coalition highlights the staggering financial impact—over $121 billion in losses—and the rising threat of violence against retail employees.

Cargo theft, a key component of organized retail crime, continues to disrupt supply chains and drive up prices on everyday goods. To address this crisis, the coalition is calling on the 119th Congress to reintroduce key legislation from the previous session, including the Combating Organized Retail Crime Act and the Organized Retail Crime Center Authorization Act. These measures would increase federal penalties for supply chain theft and establish an Organized Retail Crime Coordination Center at the Department of Homeland Security to improve information sharing and enforcement efforts.

Attorneys general from Connecticut, Georgia, Illinois, and South Carolina led the initiative, joined by officials from 34 other states and territories, including Washington. Their unified message to Congress is clear: urgent action is needed to protect businesses, workers, and consumers from the increasing threat of organized retail crime.

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.

Washington Retail Staff

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