Yesterday was one of the most significant cutoff dates in the legislative session. It was the deadline for bills (except those deemed necessary to implement the budget—NTIB) to pass from their house of origin to remain alive. As a result, a number of potentially problematic issues are now dead for this session, as you’ll read below.

Lawmakers will now return to policy committee hearings, as April 2 is the deadline for bills that have passed one chamber to be heard and voted out of committee in the opposite chamber. 

Even as lawmakers discuss and debate the bills before them, they will look to next Tuesday, March 18, when the next revenue and caseload forecasts will be published. These forecasts will serve as the basis for the Legislature’s budget proposals, which we expect to see the following week, beginning with the House budget on Monday, March 24. The resulting spending and tax decisions will be legislators' most significant actions in the 2025 session.

In the meantime, here are some updates on key issues WBA has been monitoring this session:

Interchange Fees

Several bills were introduced to address interchange fees and the treatment of employee tips paid by credit cards. SB 5070 failed to meet a previous cutoff date, while the House version, HB 1623, did not receive a vote yesterday. Both are now dead for the session, but we expect this issue to resurface in the 2026 Legislature.

Financial Education 

Financial education remains a top priority in WBA’s proactive legislative agenda. The House version (HB 1285) of legislation to make financial education a graduation requirement has been voted out of that chamber and referred to the Senate Early Learning & K12 Education Committee. We will continue to advocate for this bill.

Credit Union Taxes

The bill that would create a new B&O tax on credit unions in Washington, HB 1506, sponsored by Rep. Amy Walen, is a measure with budget implications, so it remains alive for consideration throughout the session. It would require that any credit union regulated at the state level that purchases a bank be subject to a B&O tax rate of 1.2%. The Department of Revenue recently published a fiscal note estimating that the tax could raise more than $72 million over the next six years. While we’re still unsure whether the bill has the momentum to make it through the process, it has gotten the attention of some lawmakers.

Home Buying by Entities

SB 5496 would have limited the number of homes certain entities (such as private equity firms) could purchase. While we successfully clarified that a mortgage lender’s security interest is not subject to the bill's proposed limitations, we were fine with it failing to receive a vote on the Senate floor. It is dead for the rest of the session.

Non-compete agreements

HB 1155, similar to a recent California law, would have prohibited non-compete agreements and restricted the use of non-solicitation agreements. However, it failed to receive a vote on the House floor and is dead for the session. 

Artificial intelligence

HB 1170 would have imposed new disclosure regulations on the developers and users of generative AI systems. While not a primary concern for the industry, it failed to receive a vote on the House floor and is dead for this session. However, the continued focus on the impacts of AI development is likely to return in upcoming sessions.

Medical Debt

Legislation (SB 5480), similar to a rule from the CFPB earlier this year, prohibits the inclusion of medical debt in credit bureau reporting. It has passed the Senate and moved to the House, where it is scheduled for a hearing on March 18 before the Consumer Protection & Business Committee. Because we have confirmed that it only exempts credit card debt from reporting if the card is issued exclusively and solely for the payment of medical expenses, we are neutral on the bill. 

Other Issues

Here are just some of the other bills of interest that remain alive:

• HB 1747: Prohibiting employers from asking a job applicant about prior criminal convictions until a job offer has been made. It has passed the House and been referred to the Senate Labor & Commerce Committee. Note: It appears that financial institutions would be exempted from the statute.
• HB 1127: Concerning unclaimed property. It failed to receive a vote in the House, so it will only be eligible for further consideration if declared NTIB.
• HB 1477: Washington Saves trust account; it did not receive a vote in the House but may be considered NTIB.
• SB 5280: Regulation of virtual currency kiosks; has passed the Senate and moved to the House Consumer Protection & Business Committee
• SB 5314: Capital gains tax updates; passed Senate and now in House Finance
• HB 1319: Wealth tax – would be considered NTIB if pursued
• HB 1217: Rent Control – has passed the House and will be heard in the Senate Housing Committee next week.
• SB 5109: Mortgage lending fraud prosecution account; it has passed the Senate and been referred to the House Appropriations Committee

Please do not hesitate to reach out if you have any questions about these or other issues. We are happy to help. Thanks for all you do to support our advocacy efforts on behalf of the industry.