The 2024 Legislature was gaveled into session on Monday, January 8, and will run for 60 days. Despite the short period, it will be a busy session. Because it's the second year of a biennial legislative cycle, some 2,000 bills introduced in 2023 remain alive, and nearly 600 additional bills were pre-filed before the session began. Additionally, lawmakers' primary task will be to adopt supplemental budgets over the next two months. However, that work will likely begin in earnest once the next revenue forecast is published, scheduled for February 14.

Taxes

Once again, state revenue collections have outpaced projections, and the state is now expected to have $2.9 billion more in receipts during the forecast period (through the end of the 2025-27 biennium) than was projected at the end of the 2023 session. Still, new and increased taxes will be proposed, including the elimination of the B&O tax exemption on first mortgage interest earnings of smaller banks and an increase in the real estate excise tax. These proposals will again be among our top priorities during the session. 

Artificial Intelligence

Lawmakers feel they should do something in response to the rapid growth of artificial intelligence technology. Much like data privacy, we expect to see a range of proposals that could have unintended consequences for the financial services industry. Already, bills have been introduced to protect against "algorithmic discrimination" and establish an AI task force to develop state regulatory responses. We are concerned that some analytic tools banks use could fall under an overly broad definition of artificial intelligence, so we will be watching these proposals closely. 

Greenhouse Gas Emissions

Following last year’s California bill requiring disclosures on greenhouse gas emissions, Washington introduced a similar bill on Tuesday. SB 6092 would require any business making more than $1 billion in revenue to report to the state emissions on scope 1, 2, and 3, covering direct and indirect greenhouse gas emissions. In California, following the bill’s passage last year, Gov. Newsom has said significant amendments will be needed. We will work with the broader business community to respond to this proposal. 

Other Issues

As the session progresses, we expect a clearer picture of the most significant issues. At this point, WBA and the UFL have identified the following issues for tracking: 

• Administration and regulation of consumer gift cards
• Special deposits
• Continued proposals related to data privacy
• Creation of a state bank
• Expansion of state financial literacy programs and requirements

If you have any questions or would like to receive this update via email, please reach out to Megan Managan at Megan@wabankers.com. Thank you for your support of WBA.