Newsletter — March 20, 2025 | | |
POLICY
ECONOMY
ON THE LOCAL FRONT
RETAIL THEFT & PUBLIC SAFETY
IN THE NEWS
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What we are tracking — WR Legislative Hot List
WR is closely monitoring the bills that have advanced through the legislative process. Each week, we’ll spotlight our weekly “hot list” key legislation that could have the most significant impact on WR members.
Data Privacy (SB 5708)
SB 5708 "Protecting Children Online from Addictive Feeds” is sparking significant debate among industry groups and policymakers due to its broad scope and potential impact on businesses. Inspired by two California laws—one focused on age verification and the other on curbing addictive social media feeds—the bill aims to safeguard children's online privacy and mental health.
Position: WR Opposes this bill.
Status: March 14, 2025: In House Consumer Protection & Business waiting for a hearing.
Packaging Recycling – Extended Producer Responsibility (SB 5284)
Extended producer responsibility for packaging – Beverage container recycling was exempted from responsibility to fund this program. This exemption unfairly places the burden on retailers, making them the designated producer, whether they produce products or not. Additionally, this legislation would create yet another cost on retailers, which in turn would drive up consumer prices.
Position: WR has concerns with this bill.
Status: March 17, 2025: Scheduled for public hearing at 1:30 PM in the House Committee on Environment & Energy.
Fiscal Note: Recent cost estimates on California’s similar program are $36 billion.
Employment Law: Allowing for corrections to wage and salary disclosures (SB 5408)
This right to cure legislation grants employers an additional 10 days to correct job posting violations, excluding wage band issues. While clarification is needed on whether the correction period applies to calendar or business days, progress on the bill is promising, and further refinements are expected.
Position: WR is in support of this bill.
Status: Mar 4, 2025: In House Labor & Workforce Standards waiting for a hearing.
Improving public safety funding by providing resources to local governments and state and local criminal justice agencies and authorizing a local option tax (HB 2015)
This legislation aims to allocate funding for police, prosecutors, public defenders, and treatment programs at the local government level. However, it has drawn criticism from the Republican minority in the House, who argue that the state should instead allocate $100 million solely toward law enforcement hiring and retention. Despite their opposition, the bill—which takes a broader, multi-faceted approach—passed by a vote of 54 to 42. While it has not yet been scheduled in the Senate, leadership has indicated that this will be the bill they prioritize moving forward.
Position: WR is in support of this bill.
Status: March 13, 2025: In Senate Law & Justice waiting for a hearing.
Concerning unemployment insurance benefits for striking or lockout workers
(SB 5041) This bill is scheduled for a vote on the 21st. Last year, a similar measure passed but was limited to 4 weeks of unemployment insurance benefits. That bill ultimately failed in the Senate. This year, however, the Senate has approved an increase to 12 weeks of benefits, down from the originally proposed 26 weeks. The focus now will be on how to mitigate the impact of this bill, with efforts to potentially reduce the benefit period back to 4 weeks, although strong opposition to the bill’s principles is expected.
Position: WR Opposes this bill.
Status: March 21, 2025: Scheduled for executive session at 10:30 AM in the House Committee on Labor & Workplace Standards.
Expanding protections for workers in the state paid family and medical leave program (HB 1213) This bill expands protections for workers under the Paid Family Leave program by removing exemptions for employers with fewer than 50 employees. The current exemption, which aligns with the Federal FMLA, was initially part of the program's design. However, eliminating this exemption will present significant challenges for small employers, with some potentially unable to continue operations as a result.
Position: WR Opposes this bill.
Status: March 13, 2025 In Senate Labor & Commerce waiting for a hearing.
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Potential Medicaid cuts could push Washington lawmakers into special session
Proposed federal Medicaid cuts could significantly impact Washington state’s budget, potentially forcing lawmakers into a special session. The Republican-led U.S. House recently passed a budget that assumes an extension of the 2017 tax cuts while slashing spending on programs like Medicaid and Medicare by $880 billion.
Washington’s Medicaid program, Apple Health, covers approximately 1.9 million residents—around 20% of the state’s population. If Congress enacts a proposed one-third reduction in Medicaid funding, Washington could see:
- 61,000 rural residents lose health coverage
- 210,000 children lose insurance
- Nearly 1 in 5 seniors lose nursing home care
- Over 600,000 people lose health coverage
House Speaker Laurie Jinkins (D-Tacoma) warned that such drastic cuts could send the Legislature into “completely uncharted territory.” The state is already working to close a projected $6 billion budget gap, and additional Medicaid cuts could cost Washington billions more.
With the legislative session set to end April 27, uncertainty looms over how the state will respond if federal cuts materialize. For now, lawmakers remain focused on balancing the budget while preparing for the potential financial strain ahead.
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WR hosts virtual meeting on Alcohol Product Placement Rulemaking
The Washington State Liquor & Cannabis Board (LCB) is considering new rules on retail alcohol product placement, and WR is actively engaging in the discussion.
WR will host a virtual meeting with the LCB on Friday, March 21, from 2:30 PM – 3:30 PM to review the proposed changes and gather feedback from businesses that sell beer, wine, or spirits.
Retailers are encouraged to participate or share their concerns in advance. To ensure your input is considered, please complete the following by Thursday, March 20:
Your voice matters in shaping these regulations. For questions or to provide input, contact WR. We will continue to update members on this process.
| | The Green Hill School in Chehalis. (Photo courtesy of Department of Children Youth and Families) | | |
Senate unanimously passes bill to improve safety in juvenile facilities
The Washington State Senate has unanimously approved SB 5278, sponsored by Sen. John Braun (R-20th), to address overcrowding and safety concerns in juvenile justice facilities. The bill now moves to the House of Representatives for further consideration.
SB 5278 aims to resolve issues at facilities like Green Hill School in Chehalis, which have faced rising violence, gang activity, and drug-related incidents since the passage of justice reform laws in 2018 and 2019. One such law, “JR to 25,” allows individuals convicted before age 18 to remain in juvenile facilities until age 25, contributing to overcrowding and security challenges.
The bill grants the Department of Children, Youth, and Families (DCYF) more flexibility in transferring dangerous individuals over 18 to the Department of Corrections (DOC). It also creates pathways for lower-risk residents to transition into work-release programs, vocational training, or community-based rehabilitation.
“The current system is failing both staff and inmates,” said Braun. “This bill provides essential tools to manage populations safely while ensuring rehabilitation remains a priority.”
With unanimous Senate approval, SB 5278 signals a bipartisan commitment to safer, more effective juvenile justice policies.
| | Photo by Washington State Standard | | |
WR raises concerns on packaging and recycling bill in House hearing
On Monday, March 17, the House Environment Committee heard testimony on SB 5284, which seeks to establish an extended producer responsibility (EPR) program for product packaging recycling. Senator Liz Lovelett (D-40, Anacortes), the bill's prime sponsor, testified in support of the legislation.
WR voiced concerns with the legislation, particularly the altered definition of "producer," which now exempts beverage distributors while unfairly shifting costs onto store-brand owners. Retailers sell products, they do not manufacture them or control their packaging. WR continues to support EPR legislation that holds manufacturers, not retailers, responsible.
Additionally, WR raised strong concerns about the program’s cost to consumers. A recent report from California, which implemented a similar EPR program, estimated costs exceeding $36 billion. This prompted California’s Governor to request a redraft of the proposal. Washington should avoid imposing such significant financial burdens on consumers.
Before moving forward, a comprehensive needs assessment and cost-benefit analysis should be conducted. No other state has fully implemented an EPR program, and Washington should learn from their experiences before committing to an uncertain and potentially costly path.
Next Steps: SB 5284 must pass out of committee and be considered by both the fiscal committee on Appropriations and the entire House. The next legislative cutoff is April 2.
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WR urges Senate to address root causes of rising workers' disability rates
The Senate Labor Committee recently held a hearing on HB 1788, a bill that standardizes temporary total disability (TTD) payments for injured workers based on the number of dependents, regardless of marital status. WR and other business groups testified in opposition, urging lawmakers to focus on addressing the root causes of rising long-term disability (LTD) rates rather than implementing another short-term fix.
The data speaks for Itself:
- Washington’s workers’ compensation system allocates 73% of its funds to disability payments—the highest percentage in the nation. By comparison, the national median is 47%, while California and Oregon stand at 49% and 50%, respectively.
- In 2011, the Legislature set a goal to reduce LTD by creating the Stay at Work reimbursement program when LTD rates stood at 16.1%. While the rate improved to 13% in 2019, it has now reversed back to 16% as of December 2024—erasing a decade of progress.
- Pension costs per claim have surged 70% from 2015 to 2022, with the latest total permanent disability claim costing an average of $1.4 million.
WR urges the Legislature to amend HB 1788 to require L&I’s Workers’ Compensation Advisory Committee—which includes both labor and business representatives—to investigate the systemic drivers of rising LTD rates before imposing additional costs. Expanding benefits without addressing the root causes will only exacerbate the issue. Policymakers should focus on preventing workers from entering LTD in the first place through sustainable, long-term solutions.
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From strain to crisis: Lawmakers consider crushing employment costs for retailers
Washington retailers have faced staggering payroll cost increases in recent years, and pending legislation threatens to make the financial strain unsustainable.
Key proposals driving up employment costs:
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ESSB 5041 - provides up to 12 weeks of unemployment benefits to striking workers, a move that could unnecessarily prolong labor disputes and increase employer costs.
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HB 1213 – eliminates the small business exemption from offering job protection and healthcare continuation for workers using Paid Family and Medical Leave program.
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SB 5463 – Imposes vague "good faith and fair dealing" standards on self-insured workers’ compensation employers, increasing litigation risks.
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HB 1308 and HB 1402 – Expands private rights of action, effectively privatizing labor law enforcement and exposing employers to costly lawsuits.
Additional costly employment mandates with heavy administrative burdens:
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SB 5101 – Expands domestic violence leave protections to include hate crime victims.
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HB 1748 – Restricts employer hiring decisions by prohibiting criminal background checks until after a conditional job offer.
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SB 5217 – Removes small employer exemptions for pregnancy accommodations, adding new postnatal care requirements and costs to small businesses who cannot accommodate on-site.
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HB 1524 – Increases fines and enforcement requirements for isolated workers (janitors, housekeeping, security).
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HB 1875 – Expands paid sick leave to include time off for immigration proceedings.
Each new mandate adds pressure to cut staff, reduce hours, increase automation, or even close stores. While well-intended, these legislative proposals could push retailers—and the jobs they provide—closer to a breaking point, jeopardizing community access to goods and harming the state’s economic stability.
Washington retailers urge lawmakers to consider the cumulative impact of these policies and work toward balanced solutions that support both workers and businesses.
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Bad for business: A look at bills that missed the mark in Washington State
While every legislative session brings new proposals aimed at addressing social and economic issues, not all bills are well-crafted, properly stakeholdered, or beneficial for businesses. This year, several bills introduced in Washington State had the potential to create significant challenges for retailers and the broader business community. Fortunately, these bills are unlikely to advance this session—but they still warrant attention as they could return in the future.
Supply Chain Burdens
HB 1107 – Concerning environmental impacts of fashion
Positioned as a measure to curb the environmental effects of “fast fashion,” this bill was, in reality, a supply chain transparency mandate that would have placed significant compliance burdens on retailers. Instead of fostering sustainability in a collaborative way, HB 1107 risked creating costly and unrealistic reporting requirements, disproportionately impacting businesses with complex global supply chains.
Artificial Intelligence: Overregulation Without Clarity
HB 1168 – Increasing transparency in artificial intelligence
HB 1170 – Informing users when content is developed or modified by artificial intelligence
While AI transparency is an important conversation, these bills took a heavy-handed approach that could stifle innovation and add unnecessary compliance burdens. HB 1168 and HB 1170 sought to impose broad disclosure requirements without clear guidelines on implementation, potentially leading to confusion and unintended liability for businesses that use AI in customer service, marketing, or operational efficiencies.
A Public Safety Nightmare for Businesses
HB 1380 – Public property regulations (“Homeless Bill of Rights”)
This bill would have allowed encampments on public property, including sidewalks in front of businesses, making it more difficult for retailers to ensure a safe and welcoming environment for employees and customers. While addressing homelessness is critical, HB 1380 failed to provide balanced solutions that also factor in the impact this could have on public safety and economic viability.
Prohibits Protection of Proprietary Business Information and Clienteles
HB 1155 – Ban on non-compete agreements
A full ban on non-compete agreements would have eliminated an important tool that businesses use to protect proprietary information and maintain a competitive workforce. This ban could hurt businesses that rely on non-competes to safeguard intellectual property and prevent unfair competition.
Expanding Employer Liability Without Clear Justification
HB 1002 & HB 1070 – Presumptive PTSD coverage
These bills sought to expand presumptive PTSD workers’ comp coverage for certain professions with extremely high fiscal notes without considering measures to prevent such incidents.
Costly increases to minimum wage and PTO
HB 1181 & SB 5578 – Minimum wage increases & mandated paid time off
These bills would have imposed significant new and costly labor mandates by dramatically increasing the minimum wage and requiring additional paid time off, regardless of a business’s size or financial capacity.
Unworkable Data Privacy Legislation
HB 1671 – Data Privacy
While consumer data protection is an important issue, HB 1671 took an impractical approach that would have created a maze of confusing and costly compliance requirements for businesses. Instead of establishing clear, uniform privacy standards, the bill imposed vague obligations that could have resulted in legal uncertainty, operational burdens, and increased costs. The bill was also particularly harmful to Washington-based businesses.
Looking Ahead
Although these bills are unlikely to move forward this session, there is a very strong possibility we will see them return next year. WR will continue to advocate for practical, balanced legislation that protects retailers and supports economic growth while collaborating with lawmakers on solutions to address legitimate concerns in a fair and effective manner.
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Washington State revenue forecast adjusted down by $844 million
The Economic and Revenue Forecast Council (ERFC) has revised its projections, estimating that Near General Fund Outlook (NGFO) revenues will be $844 million lower than previously expected over the forecast period.
While the forecast for the current 2023–25 biennium has increased slightly by $55 million to $66.445 billion, projections for future biennium have been reduced. The 2025–27 forecast is down by $479 million to $70.952 billion, and the 2027–29 forecast has decreased by $420 million to $76.425 billion.
Compared to the February 2024 forecast, which informed the state’s operating budget, revenues are now expected to be lower by $560 million in 2023–25, $769 million in 2025–27, and $523 million in 2027–29—a total decline of $1.852 billion.
Despite these adjustments, NGFO revenues are still projected to grow, increasing by $4.507 billion from 2023–25 to 2025–27 and by $5.473 billion from 2025–27 to 2027–29. The ERFC’s alternative forecasts suggest potential revenue fluctuations, with an optimistic scenario estimating an increase of $4.374 billion by 2025–27 and a pessimistic outlook predicting a shortfall of $4.772 billion.
Retailers and businesses should stay informed on these changes, as they may impact state budget decisions and economic policies.
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Retail giants tackle tariff challenges
Major U.S. retailers like Walmart, Home Depot, and Target are pressuring suppliers to absorb costs or relocate production in response to escalating tariffs on Chinese goods. With 10% tariffs imposed in February and again in March, retailers are pushing suppliers to make price concessions or risk losing business.
These negotiations have forced many manufacturers to make tough decisions. Some, like Rongli Garments, have struggled to meet retailers' demands, while others are moving production to Southeast Asia to avoid additional costs. Home Depot, for example, has been diversifying sourcing strategies for years, working closely with vendors to navigate shifting trade policies.
The uncertainty of future tariffs adds complexity, with businesses hesitant to invest in new supply chains that could also face restrictions. While some retailers, such as Costco, are willing to absorb costs for quality products, others are adjusting pricing strategies across different product categories to maintain competitive pricing.
As trade policies continue to evolve, retailers are taking a multi-faceted approach—balancing supplier relationships, production shifts, and consumer pricing strategies—to stay ahead in a volatile market.
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Retail sales modest amid consumer caution
February retail sales data released by the U.S. Census Bureau showed a slight month-over-month increase of 0.2%, with a 3.1% rise compared to the previous year. Despite this modest growth, consumer spending remains cautious, reflecting concerns over inflation and policy changes, according to Jack Kleinhenz, Chief Economist at the National Retail Federation (NRF).
Kleinhenz explained that the early-year slowdown follows strong fourth-quarter spending and disruptions caused by weather. While consumer apprehension persists, fundamentals such as low unemployment and steady income growth remain strong, supporting future spending trends as long as the job market stays robust.
Core retail sales, which exclude automobiles, gasoline, and restaurants, saw a 0.9% monthly increase but a slight decline of 0.2% year-over-year. This decline can be attributed to high sales in February 2024, distorting year-over-year comparisons.
Overall, retail sales growth remains healthy, following a 4.2% increase during the 2024 holiday season and 3.6% growth for the year. The NRF continues to track retail trends and consumer behavior to provide valuable insights for the industry.
CNBC/NRF Retail Monitor
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Celebrating TVW’s commitment to transparency at annual gala
WR was pleased to join TVW President & CEO Renée Radcliff Sinclair at the TVW Annual Gala, celebrating another year of the organization’s unwavering dedication to providing transparent access to Washington’s policy process.
As the state’s leading source for nonpartisan public affairs coverage, TVW plays a critical role in ensuring Washingtonians stay informed and engaged. WR applauds TVW’s commitment to open government and looks forward to its continued impact in the years ahead.
Congratulations to TVW on another successful year!
| | Katie Wilson, who is running for mayor, poses for a portrait in Seattle on Tuesday. (Karen Ducey / The Seattle Times) | | |
Seattle Mayor Bruce Harrell draws significant challenger for reelection
Katie Wilson, co-founder and General Secretary of the Transit Riders Union and a leading progressive leader in Seattle, announced her candidacy for mayor of Seattle. Although Wilson is the fifth challenger to announce, she is the first credible threat to Mayor Harrell.
Wilson told The Stranger that Mayor Harrell’s lack of action on homelessness is a major reason she entered the race. She explained “[f]our years ago, when Harrell was running for mayor, he made some big promises on homelessness. He promised to open 2000 units of emergency housing shelter in his first year; he did not even come close to delivering those numbers.”
She urged a shift in the city’s focus from permanent housing for the homeless to building more tiny home villages and expanding programs like JustCare, which works with the unhoused on their individual needs.
Wilson has not only criticized the mayor and city government but has also taken aim at the city’s progressive left, arguing that it failed to acknowledge public concerns about safety, open drug use, and rising homelessness. She believes this disconnect contributed to the success of more pragmatic candidates in the 2023 City Council elections.
“Specifically on homelessness and also public safety, the left, broadly speaking, got to a place where we were not responding sufficiently to the reality that people were experiencing and seeing around them, and that cost us,” explained Wilson.
Unlike his two immediate predecessors, Harrell is seeking reelection, making this race a potential barometer for the public’s confidence in Seattle city government. It remains to be seen whether Wilson can raise the money and build the organization needed to mount to strong challenge to Mayor Harrell. Harrell retains strong support from labor unions, business leaders, and key progressives, including Congresswoman Pramila Jayapal.
| | Alleged shoplifting suspect at Lowe's in Lacey. Image courtesy of Lacey Police Department | | |
Washington cracks down on organized retail crime amid rising theft cases
Law enforcement across Washington is intensifying efforts to combat Organized Retail Crime (ORC), leading to arrests and prosecutions statewide. In Spokane, Michael Lewis, 40, faces charges for allegedly exploiting Home Depot’s online system to steal $22,800 in merchandise and fraudulently obtain refunds. Authorities say he sold stolen goods on Facebook Marketplace and used multiple vehicles in his scheme.
Meanwhile, in Lacey, police arrested Jenessa Tejano, 33, for a series of thefts at Target totaling $1,512.91. The suspect admitted to multiple incidents and now faces second-degree organized retail theft charges.
In the Puget Sound region, three suspects allegedly stole over $143,000 in high-end merchandise from stores in Renton, Tukwila, and beyond. Charges include multiple counts of ORC, with one suspect held on $325,000 bail.
Oregon is also stepping up enforcement. A Clackamas County retail crime operation recently resulted in 20 arrests and the recovery of over $3,100 in stolen goods, funded by an Organized Retail Theft grant.
As these crimes escalate, Gov. Bob Ferguson is pushing for $100 million in police funding to bolster enforcement. With legislative debates ongoing, Washington’s approach to tackling ORC remains a pressing issue for both lawmakers and retailers.
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Main Street and cryptocurrency leaders unite for payment innovation
The Merchants Payments Coalition (MPC) and the Payment Choice Coalition (PCC) have announced a strategic partnership to drive innovation, competition, and consumer choice in the U.S. payments market. By joining forces, both organizations aim to support policies that foster a more competitive landscape and encourage emerging payment technologies like stablecoins.
Doug Kantor, MPC Executive Committee member, emphasized the need for stablecoins to modernize the payments industry and increase efficiency. Meanwhile, PCC Board Member Brandon Robertson highlighted the barriers created by dominant credit and debit card networks, stressing the importance of policy changes to allow new technologies to thrive.
As part of their joint efforts, MPC is endorsing legislation to establish a clear regulatory framework for stablecoins, while PCC is backing policies that promote competition in the payments sector. Their collaboration represents a significant step toward breaking down barriers in digital commerce and ensuring businesses and consumers have more payment options.
With a broad membership that includes retail, hospitality, and financial industry leaders, this partnership is set to influence the future of payments by advocating for a fair, innovative, and competitive marketplace.
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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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