Week 11 Legislative Report

Prepared for the Washington State Bowling Proprietors Association (WSBPA)
Updated March 30, 2025

State Budget Highlights

The Washington State Legislature is currently working through competing budget proposals that represent substantial increases in state spending. The House has proposed increasing the biennial operating budget from the current $71.9 billion (2023-25) to $77.7 billion for the 2025-27 biennium.

The Washington State Senate passed a $78.5 billion operating budget on March 29, 2025, with a 28-21 vote. This budget aims to address fiscal challenges while protecting essential services and introducing new revenue measures. Key components include $6.5 billion in cuts and $16 billion in new revenue over four years, resulting in a net gain of $6.2 billion for the 2025-27 biennium and $9.8 billion for the 2027-29 biennium.

Below are the updates of the major pieces to the state budget and other legislation we have been tracking:

Tourism Funding

The most significant direct impact on hospitality businesses is the severe reduction in tourism promotion funding. Currently set at $9 million per biennium, the proposed budget would slash this by two-thirds, bringing funding down to just $3 million.

Liquor License Fee Increases

Both House and Senate budget proposals reference revenue from liquor license fee increases, with pending legislation proposing to increase liquor license fee endorsements by 50%. 

B&O Tax Surcharge

The proposal includes a 1% surcharge on business and occupation (B&O) tax for companies with revenue exceeding $250 million. While this threshold may not directly impact most bowling centers, it would affect food distributors and grocery stores, likely leading to increased food and beverage costs for bowling proprietors.

Property Tax Increases

The Senate’s SB 5798 seeks to replace the 1% annual cap on property tax growth with adjustments tied to inflation and population growth. For example, a 3% inflation rate and 1% population growth could yield a 4% annual increase. Even leased facilities would face rent hikes as landlords adjust to higher property taxes.

Alcohol Policy & Liability

1. SB 5067 (Lowering BAC to 0.05%)
   • Status: DEAD for 2025 (no floor vote by cutoff).
   • Developments: Opposition efforts emphasized Washington’s strict liquor liability laws. Advocacy focus shifts to 2026.
2. HB 2035 (Liquor License Fee Increases)
   • New Legislation: Passed House Appropriations Committee with amendments (Mar. 20).
   • Impact: Proposes 50% fee hikes for liquor licenses; Senate companion bill (SB 5786) scheduled for executive session in the Senate Committee on Labor & Commerce on March 31.

Labor & Employment

1. HB 1213 (Paid Family & Medical Leave Expansion)
   • Status: ACTIVE. Passed House (55-41); Senate Labor & Commerce Committee review ongoing.
   • Key Changes: Reduces employment protection eligibility from 180 to 90 days. Amendments address health coverage during leave.
2. SB 5041 (Unemployment for Striking Workers)
   • Status: ACTIVE. Passed Senate (28-21); Passed House Labor Committee. It is scheduled for a public hearing in the House Committee on Appropriations on April 4.
   • Risk: High likelihood of passage. Employers face UI tax hikes due to benefit charges impacting experiential ratings.
3. SB 5578/HB 1764 (Minimum Wage & Labor Standards)
   • Status: Both are DEAD for 2025. Proposals to raise minimum wage to $25/hour by 2031 stalled.

Tax & Regulatory Threats

1. Bottle Deposit (HB 1607)
   • Status: DEAD for 2025. Exemptions secured for on-site consumption venues.
2. Extended Producer Responsibility (SB 5284)
   • Status: ACTIVE. Passed Senate (27-22); Scheduled for executive session in the House Committee on Environment & Energy on March 31.

Equipment & Facilities

1. SB 5628 (Lead in Cookware)
   • Status: ACTIVE. Passed Senate; House amendment proposes 90ppm threshold until 2028, then 10ppm. Scheduled for executive session in the House Committee on Environment & Energy on March 31.
   • Impact: 85% of commercial fryers exceed limits. $10M grant program proposed for replacements.

Tourism & Budgets

1. Tourism Funding Cuts
   • Impact: State tourism budget reduced from $9M to $3M biennially.

Other Legislation

1. HB 1623 (Credit Card Fee Deductions)
   • Status: DEAD for 2025. Failed to advance despite prohibiting tip deductions for processing fees.

Key Deadlines

• April 2: Policy Committee Cutoff (opposite house).
• April 8: Fiscal Committee Cutoff.
• April 16: Opposite House Cutoff.

Action Items

• SB 5628: Identify centers needing cookware replacement grants.
• Next WSBPA Call: April 8, 2025, 10:00 AM PDT (Zoom link).

This legislative report reflects information current as of March 30, 2025. For questions or additional details, please email me at lex@incumbent.com.

Thank you for your continued support.