Newsletter — January 09, 2025 | |
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POLICY
ON THE LOCAL FRONT
POLITICAL NEWS
IN THE NEWS
TRENDS
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Key dates for the 2025 legislative session
The 2025 legislative session begins on January 13, 2025, marking the start of the 69th Biennial Session. The 105-day “long” session runs through April 27 and will focus on addressing a projected budget shortfall of $8-16 billion while adopting the 2025-27 Operating, Capital, and Transportation budgets.
With a new Governor and 20 new legislators, this session brings unique challenges and opportunities. WR will be in Olympia every day, advocating for the retail industry, ensuring retailers’ voices are heard on critical issues, and fighting for policies that support Washington’s retail sector.
Key Session Dates:
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January 13: First day of session.
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February 21: Policy Committee Cutoff (house of origin).
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March 12: House of Origin Cutoff (5 p.m.).
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April 2: Opposite House Policy Cutoff.
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April 27: Final day of session.
Click here to view the full session calendar.
WR is committed to keeping you informed and fighting for policies that support Washington’s retail industry.
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2025 legislative session is set to convene January 13
The 2025 Legislative Session will commence on January 13 and run for 105 days, concluding on April 27. Unlike typical work calendars, the session does not observe holidays such as Martin Luther King Jr. Day or Presidents’ Day, and both weekends and evenings are often utilized for legislative business.
In the first week, all 98 House members, half of the Senate, a new governor, four-year statewide officeholders, and a new Supreme Court justice will be sworn in. Key events will include the State of the State address, the State of the Judiciary, and the Inaugural Ball on January 15, which is open to the public—come join us!
Several last-minute changes in legislators are expected as some are being appointed to lead state agencies, including Senator Joe Nguyen and Representative Tana Senn. Democrats maintain strong majorities in both the House and Senate, as well as holding the Governor’s Office, contributing to a sense of optimism for the majority party, as the session begins.
However, a looming challenge will be addressing the state's financial situation. With revenue slowing and spending pressures mounting, estimates suggest the state needs between $5 billion and $15 billion to meet program obligations. This underscores the importance of prudent budgeting and saving for inevitable economic slowdowns. The primary constitutional obligation of this session is to pass a two-year Operating Budget.
In addition to the budget, legislators will introduce several thousand bills, though only a few hundred will receive serious consideration, and an even smaller number will ultimately pass and reach the Governor’s desk. The legislative process is designed to refine and narrow down the many ideas introduced each year.
Washington Retail’s Government Affairs team will thoroughly review and assess the viability of each proposed bill. If you’re interested in participating in the legislative process or planning a visit to experience the action firsthand, reach out to us—we’d be happy to assist!
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Protect Your Business: 2025 Legislative Update Webinar
Join WR for a critical 2025 legislative update for small to mid-size businesses.
This is your chance to learn what’s coming, how to advocate for your business, and strategies to safeguard your bottom line from harmful legislation.
📅 Date: Friday, January 10, 2025
⏰ Time: 9:00 AM – 10:00 AM
📍 Location: Online via Zoom
What You’ll Learn:
- Insights on potential legislation proposals, including:
- $20-$25 minimum wage
- Increased unemployment insurance costs
- Changes to Paid Family and Medical Leave exemptions
- Billions of dollars in new and existing taxes
- And much more!
- Strategies to protect your business from harmful policies
- How to make your voice heard by lawmakers
Why Attend?
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Stay ahead: Understand how new laws will impact your business.
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Advocate effectively: Learn to engage with policymakers.
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Unite with others: Collaborate with business owners to share insights and shape the future.
Don’t let bad laws hurt your business—take action now!
Click here to register via Zoom
Join us and make your voice heard—your business depends on it!
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Photo Credit: Legislative Support Services | |
Representative Barnard proposes legislation to help communities secure federal grants
Washington state Representative Stephanie Barnard, R-Pasco, has introduced HB 1057 to expand local access to federal grant funding. Building on the 2024 MATCH Act (HB 1870), the bill seeks to empower local governments, rural counties, and economic development organizations by funding grant writers to navigate complex federal funding processes.
Previously, Commerce Department grant assistance focused heavily on clean energy projects, as tied to Climate Commitment Act (CCA) funding. The CCA, aimed at reducing emissions by 45% by 2030, directed resources to clean energy initiatives, leaving other economic opportunities underserved.
HB 1057, also known as the MATCHED Act, addresses this gap by mandating the Department of Commerce establish a broader grant program by mid-2025. Barnard emphasizes the untapped potential in federal programs, including those stemming from the Inflation Reduction Act, and highlights Washington's need to improve its federal funding procurement, currently ranking in the bottom 25% nationwide.
“A dedicated fund of state matching dollars could yield a significant return on investment,” Barnard said. She envisions the program reducing the state’s reliance on tax increases while unlocking critical resources for economic development across diverse sectors.
The 2025 legislative session begins Monday, January 13, with HB 1057 poised to foster statewide economic resilience.
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New year brings expanded rights and higher wages for Washington workers
On January 1, 2025, new laws will enhance wages and rights for many Washington workers. Here’s what to expect:
Minimum Wage Increase: The state’s minimum wage rises to $16.66/hour for workers aged 16 and older, with younger workers (14-15) eligible for 85% of that rate, or $14.16/hour.
Overtime Exemption Updates: The salary threshold for overtime-exempt employees increases to $1,332.80/week for small employers and $1,499.40/week for larger employers. Exempt computer professionals will earn a minimum hourly wage of $58.31.
Rideshare Driver Pay: New minimum rates apply for rideshare drivers. Within Seattle, rates are set at $0.68/minute, $1.59/mile, or $5.95/trip. Outside Seattle, drivers earn $0.39/minute, $1.34/mile, or $3.45/trip.
Non-Compete Limitations: Non-compete clauses will only apply to workers earning over $123,394.17 annually ($308,485.43 for independent contractors).
Employer Incentives: Wage reimbursements for the Stay at Work and Preferred Worker Programs increase from $10,000 to $25,000 per claim, with higher limits for training and expenses. These programs reward employers who help injured workers return to medically approved jobs.
Expanded Paid Sick Leave: Paid sick leave now covers care for household members or individuals with whom a caregiving relationship exists and allows time off for emergency school or daycare closures.
Stay informed, know your rights, and ensure compliance with these updates.
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Competing recycling bills pre-filed
Two competing bills aimed at increasing Washington State’s recycling rates have been pre-filed for consideration.
House Bill 1071, sponsored by Rep. Jake Fey (D-27), and its companion Senate Bill 5058, introduced by Senator Mike Chapman (D-24), propose conducting a comprehensive statewide needs assessment to evaluate and improve the state’s existing recycling infrastructure.
Meanwhile, House Bill 1150, sponsored by Rep. Liz Berry (D-36), seeks to implement a recycling program modeled after systems in states like Minnesota. This bill would require manufacturers of packaging and packaged products to fund recycling programs, aiming to reduce landfill waste.
Several states, including Oregon, California, Colorado, Maine, and Minnesota, have already enacted similar legislation, though implementation challenges have arisen and continue to evolve.
Members of Washington Retail Association (WR) operating in multiple states have expressed concerns about adopting a program similar to those in other states. Their primary worry is that such a system might unfairly burden retailers and customers with the costs of recycling, despite retailers often having little influence over packaging design or materials.
WR urges a cautious, evidence-based approach. Washington already boasts nation-leading recycling infrastructure, and WR encourages the legislature to strengthen what works before introducing a new, untested system.
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Safer Products for Washington: Key compliance deadlines for 2025
The Safer Products Restrictions and Reporting Rule, adopted in 2023, regulates consumer products in Washington containing priority chemicals. Effective January 1, 2025, manufacturers must comply with restrictions on certain products containing these chemicals. Prior to this, starting January 1, 2024, manufacturers, distributors, and retailers must begin tracking and reporting affected products.
Key compliance deadlines include:
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Restrictions: Certain chemicals are restricted starting January 1, 2025. If restricted, no report is required.
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Initial Reporting: Manufacturers and distributors must submit their first reports by January 31, 2025, through the High Priority Chemicals Data System (HPCDS).
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Ongoing Reporting: Products tracked from January 1, 2024, must be reported by January 31, 2025, with annual reports due each year by January 31st.
For assistance, the Ecology team has launched a new compliance and reporting webpage with detailed information on restrictions, reporting requirements, and resources. Businesses should also review resources specific to electric and electronic products. First-time users must create an HPCDS account before submitting reports.
For more information, visit the Safer Products for Washington webpage or contact the team at SaferProductsWA@ecy.wa.gov or 360-280-5799.
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Reminder: Children’s Safe Products reporting deadline January 31
Manufacturers and some retailers offering children’s products for sale in Washington must comply with the Children's Safe Products Reporting Rule (Chapter 173-334 WAC) by reporting the presence and use of certain chemicals. The act restricts the use of priority toxic chemicals in children’s products, including:
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Lead: 90 ppm
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Cadmium: 40 ppm
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Phthalates (six types): 1,000 ppm (individually or combined)
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Organohalogen Flame Retardants (five types): 1,000 ppm
Key Reporting Details:
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Annual Deadline: Reports are due by January 31 each year for products sold the previous year.
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Early Submissions: Reports may be submitted as early as September 15 of the same year.
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No Fees: There are no fees required to submit your report.
Are You Required to Report?
Retailers are encouraged to visit the Children’s Safe Products Reporting website to determine if you fall under the reporting requirements.
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Madison police Chief Shon Barnes speaks at a news conference about the shooting at Abundant Life Christian School in Madison, Wisconsin, on Monday, Dec. 16, 2024. (Jamie Kelter Davis/The New York Times) | |
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Mayor Harrell names new police chief
On December 20, Mayor Bruce Harrell announced his appointment of Shon Barnes to lead the Seattle Police Department. Currently the police chief in Madison, Wisconsin, Barnes has 24 years of experience in law enforcement. He had served as the police chief in Madison since 2021.
Mayor Harrell’s announcement statement highlighted Chief Barnes’s experience and accomplishments:
In Madison, Chief Barnes implemented evidence-based approaches to partner with the community, achieved significant decreases in crime, and led strategic initiatives to improve the effectiveness and diversity of the department. He has over 12 years of police command-level experience, including patrol, training, and recruitment, and served as a civilian police accountability executive in Chicago, where he helped meet the training plan requirements of a federal consent decree.
Last year, under the leadership of Chief Barnes, Madison experienced a 67% decrease in homicides, a 40% decrease in auto thefts, a 36% decrease in burglaries, and a 19% decrease in reports of shots fired. Seattle is approximately double the size of Madison and it’s plagued with a much higher crime rate -- about 114 crimes per 1,000 residents compared to Madison’s rate of about 34 per 1,000 residents.
The search for a new police chief began in mid-2024, soon after Sue Rahr was named interim police chief. Chief Rahr and former Seattle Police Chief, Kathleen O’Toole, led the search effort that started with a pool of 57 applicants. They ultimately narrowed the list to three finalists before selecting Chief Barnes.
The new Chief will be introduced in Seattle at an event later this month.
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Celebrate Washington’s leadership at the 2025 Governor’s Inaugural Ball
Join us for the 2025 Washington State Governor’s Inaugural Ball, hosted by the Thurston County Chamber of Commerce. This grand event celebrates Washington’s Governor and honors elected officials across the legislative, judicial, and executive branches.
Date: Wednesday, January 15, 2025
Time: 7:00 p.m. – 11:00 p.m. (Doors open at 6:30 p.m.)
Location: Washington State Capitol Campus
Event Highlights:
- Rotunda:
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Squaxin Island Canoe Family (8:15 to 8:30 p.m.)
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Main Program (8:30 to 9:30 p.m.): Formal ceremony with Master of Ceremony Dr. Timothy Stokes, President of South Puget Sound Community College, and Special Guest Former Senator Karen Fraser.
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State Reception Room Stage:
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Ethan Tucker (7:00 to 8:15 p.m.)
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Dukes of Swing (9:30 to 11:00 p.m.)
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Flag Circle Stage:
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DJ K12 (6:30 to 8:15 p.m.)
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Switchback 360 Trio (9:30 to 11:00 p.m.)
Culinary Excellence: Enjoy heavy hors d'oeuvres featuring dishes from community college culinary programs and local tribes.
Reserve Your Spot: Tickets are now available! Visit wastategovball.org to purchase yours.
Volunteers Needed: Be part of the event's success! Sign up here.
Members of WR’s Policy and Government Affairs team will be attending and hope to celebrate with you!
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Washington state Capitol (Jerry Cornfield/Washington State Standard) | |
By: Laurel Demkovich, Jacquelyn Jimenez Romero, and Jerry Cornfield
January 2, 2025
The upcoming legislative session will see high levels of turnover among Washington state lawmakers.
Following the retirements of longtime legislators, a few redistricting switch-ups, and some departures for higher office, there will be new faces in 29 seats.
Some are familiar, as many new senators are former House members. Some are returning after a term or two off. Others are completely new to the process.
And there may be up to four more.
Sen. Patty Kuderer is leaving this month to become insurance commissioner, opening up at least one more vacancy. If a member of the state House of Representatives fills that spot, someone new will have to be appointed to fill the House vacancy. A replacement will also need to be chosen for Rep. Tana Senn, who is exiting the Legislature to lead the Department of Children, Youth, and Families. And yet another replacement will be needed for Sen. Joe Nguyễn who was picked to lead the Department of Commerce by Gov.-elect Bob Ferguson.
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Pictured left to right: WR Director, Retail Industry Coalition of Seattle, John Engber, and Washington Governor Jay Inslee. | |
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WR attends “12 Years of Progress” event honoring outgoing Governor Inslee
On January 4, approximately 500 individuals who had worked with Governor Jay Inslee, on his campaigns or in his roles as State Representative, Congressman, or Governor, gathered to recognize and celebrate his 12 years of leadership. WR’s Seattle lobbyist, John Engber, who worked on the Governor’s 1996 gubernatorial race, attended the event.
The centerpiece of the evening was an hourlong film reflecting on the challenges and achievements of the Inslee Administration. The film highlighted key moments such as the state’s response to the Covid-19 pandemic, the state action following the I-5 bridge collapse in Skagit County, and the devastating Oso landslide that claimed 43 lives. It also underscored the Governor’s climate change policies, a cornerstone of his three terms in office. Governor Inslee expressed his intention to stay engaged in the fight against climate change after he leaves office.
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Washington State Sen. Joe Nguyen speaks on the Senate floor on Jan. 20, 2023. (Photo courtesy Legislative Support Services) | |
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State Senator Joe Nguyen named new Director of WA Department of Commerce
Gov.-elect Bob Ferguson has appointed State Sen. Joe Nguyen to lead the Washington Department of Commerce, an agency overseeing a $7.9 billion budget and more than 100 programs focused on housing, energy, economic development, and business services. Nguyen, a Democrat representing the 34th Legislative District, which includes parts of Seattle and Vashon Island, will begin his new role on January 15.
Nguyen, first elected to the Senate in 2018 and reelected in 2022, chairs the Senate Environment, Energy & Technology Committee, where he has championed climate policies such as the Climate Commitment Act and artificial intelligence legislation. He also serves as vice chair of the Ways & Means Committee.
Nguyen will replace Mike Fong, who recently joined Snohomish County as executive director for economic development. His legislative resignation will prompt a Democratic replacement process, with final approval by the King County Council.
“Senator Nguyen brings experienced leadership and a strong record of improving the lives of Washingtonians,” said Ferguson. “He will ensure state government works better for the people.”
Nguyen is the second legislator tapped for Ferguson’s cabinet, following Rep. Tana Senn’s appointment to lead the Department of Children, Youth, and Families.
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Costco warns tariffs could lead to price hikes
Costco’s CFO, Gary Millerchip, has cautioned that proposed tariffs by President-elect Donald Trump could lead to price increases at the membership warehouse giant. Speaking on an earnings call, Millerchip highlighted the uncertainty surrounding the timing and scope of the tariffs, making their potential impact difficult to predict.
Trump has proposed sweeping tariffs, including a 10-20% levy on imports and higher duties on goods from China, as part of his trade policy. While the tariffs are intended to address issues like border security and fentanyl production, Millerchip noted that such measures typically raise costs, which is "not something we see as a positive."
Despite the potential challenges, Costco is prepared to adapt. The company has implemented strategies to mitigate costs in the past, such as advancing inventory purchases to avoid supply chain disruptions and negotiating with vendors to manage expenses.
Costco’s efforts aim to minimize price increases for its customers, even as it braces for the uncertainty of future trade policies. Millerchip expressed confidence in the company’s ability to navigate these challenges, emphasizing that Costco remains committed to serving its members effectively.
Stay tuned as the retail industry anticipates changes under the new administration.
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Amazon’s return-to-office mandate sparks debate in the business world
Amazon’s return-to-office (RTO) policy, effective January 2, is drawing attention across industries, with potential ripple effects on workplace trends. CEO Andy Jassy announced in September that employees would return to the office five days per week, citing enhanced collaboration and innovation.
While Amazon is among the few major companies mandating full-time office work, many remote-capable businesses continue to embrace hybrid models. Some Amazon locations, including those in New York, Houston, and Nashville, are reportedly not yet ready to accommodate full-time in-office work, leaving certain employees in remote setups until May.
The policy has sparked dissatisfaction among employees. A Glassdoor poll found that nearly 75% of Amazon professionals are reconsidering their future at the company. Another survey revealed 48% have applied for other jobs, and 87% believe productivity may decline under the new arrangement.
Amazon’s decision is being closely watched by other businesses. Experts predict it could inspire similar moves among organizations seeking to remain competitive. According to a KPMG survey, 79% of U.S. CEOs expect traditional in-office roles to return over the next three years, indicating a potential shift in workplace norms.
As companies observe Amazon’s approach, the debate over remote work’s future continues to evolve.
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Tractor Supply Co. has seen promising signs for customer experience when it comes to in-house deliveries. Courtesy of Tractor Supply) | |
Tractor Supply Co. enhances last-mile delivery with in-house initiative
Tractor Supply Co. is embarking on a multi-year initiative to revolutionize its last-mile delivery operations by bringing more deliveries in-house. Executive Vice President and Chief Supply Chain Officer Colin Yankee outlined the plan during an investor presentation, emphasizing a strategy to establish “hub stores” that combine drivers and inventory from various facilities for streamlined customer deliveries.
The retailer currently handles 5 million annual final-mile shipments, with 90% delivered within 40 miles of a store. By leveraging its extensive network of stores and mixing centers, Tractor Supply aims to create a flexible, asset-light delivery solution. Yankee highlighted that in-house deliveries yield higher customer satisfaction scores and significantly lower product return rates compared to third-party carriers.
The initiative addresses the challenge of delivering bulky items, such as fence panels and riding lawnmowers, often to remote locations. By 2025, Tractor Supply plans to build a dedicated final-mile team, adopt advanced routing technology, and expand delivery coverage. The company aims to scale operations further by 2028, eventually covering 90–95% of large item orders by the decade's end.
This forward-thinking approach positions Tractor Supply to enhance customer experience while driving efficiency and growth in its delivery capabilities.
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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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