Representatives heard testimony opposed to slashing State support for businesses transitioning to worker-owned models and the Senate requested a closed conference on the operating budgets.
Here are some observations of the Washington State Legislature (WA Legislature) for Friday April 4th, the 82nd day of the 2025 regular session.
My top 4 takeaways:
- On Thursday, the Washington State House Appropriations Committee (WA House APP) hosted a public hearing on an adjacent bill regarding the end of State support for businesses transitioning to employee stock ownership plans (ESOPs) and related business models.
- HB 2047 - Rescinding ESOP Transition Support
- Democrat Representative Adison Richards introduced legislation in the House on March 24th—after the House of Origin Cutoff—which would eliminate State support for businesses transitioning to employee ownership models such as ESOPs, employee ownership trusts (EOTs), and cooperatives.
- See the bill text and bill analysis for more details.
- Earlier in the session, the Washington State House Consumer Protection and Business Committee (WA House CPB) considered HB 1348 (Cannabis ESOPs) but chose not to advance the legislation.
- On March 4th, WA House CPB members hosted a work session on ESOPs to hear from experts who helped establish tax preferences for the business structures at the federal level. Representative Cindy Ryu asked about risks to the future solvency of the program given significant proposed cuts in the operating budget. Washington State Department of Commerce (WA Commerce) staff acknowledged the proposed cuts and indicated implications were being evaluated at that time.
- Positions: testifying + not testifying = total (duplicates)
- Pro: 0 + 2 = 2 (0)
- Con: 12 + 160 = 172 (1)
- Other: 1 + 0 = 1 (0)
- On Thursday, representatives heard testimony entirely opposed to ending the WA Commerce program to recoup a $1.45M biennial operating expense. Testifiers claimed that Olympia, which is home to the Northwest Cooperative Development Center (NWCDC), has more cooperatives per capita than any city in the US.
- At publication time, the legislation had an executive session scheduled for Saturday April 5th. Amendment VANJ 204 by co-sponsor and WA House APP Vice Chair Mia Gregerson was published on Thursday afternoon and described as having the following effects:
- “Changes the tax reporting periods in which the business and occupation tax credit for costs related to converting a qualifying business to a worker-owned cooperative, employee ownership trust, or an employee stock ownership plan can be earned and claimed such that:
- “(1) Credits can be earned for tax reporting periods starting on or before June 30, 2025, rather than June 30, 2029; and
- “(2) Credits cannot be claimed on returns filed for tax periods starting on or after July 1, 2026, rather than July 1, 2030.
- “Changes the expiration date for the tax credit from July 1, 2030, to July 1, 2026.”
- “Changes the tax reporting periods in which the business and occupation tax credit for costs related to converting a qualifying business to a worker-owned cooperative, employee ownership trust, or an employee stock ownership plan can be earned and claimed such that:
- Democrat Representative Adison Richards introduced legislation in the House on March 24th—after the House of Origin Cutoff—which would eliminate State support for businesses transitioning to employee ownership models such as ESOPs, employee ownership trusts (EOTs), and cooperatives.
- HB 2047 - Rescinding ESOP Transition Support
- Also on Thursday, the Washington State Senate (WA Senate) voted to not concur with the House changes to the operating budgets and requested a conference committee to hash out compromise language - although the Governor had already voiced his displeasure with the approaches envisioned by both chambers.
- SB 5167 - Operating Budget and Supplemental Operating Budget
- See the bill text, bill report, and fiscal website for more details.
- During the floor session, Republican Floor Leader Shelly Short called for division of the questions of not concurring with the House changes versus calling for the formation of a conference committee. While in agreement that the Senate should not concur, Washington State Senate Ways and Means Committee (WA Senate WM) Ranking Member Chris Gildon suggested returning the legislation to the House for further amendment rather than moving to a closed conference committee where appointees from democratic majorities in the House and Senate had traditionally diminished minority party input. A majority still voted to request formation of a conference committee and Senate President Denny Heck appointed WA Senate WM Chair June Robinson, WA Senate WM Vice Chair Derek Stanford, and Gildon to the committee.
- The legislation was returned to the House for a vote to accept the conference committee request and allow the Speaker to appoint members.
- On Tuesday April 1st, Governor Bob Ferguson organized a press conference to provide his perspectives on the operating budgets passed by the Senate on Saturday March 29th and the House on Monday March 31st [ TVW ].
- Ferguson expressed no confidence in reliance upon a new “wealth tax,” versions of which were specified by both chambers, as he expected court challenges.
- Ferguson also said he would not accept an operating budget that pulled revenue from the Budget Stabilization Account (BSA, or the rainy day fund), which both chamber budgets relied on.
- Additionally, Ferguson said he would not sign a budget during his tenure which utilized the maximum 4.5% growth assumption as allowed by law and which the Senate budget assumed. Instead, he insisted legislators must rely on forecasts made by the Washington State Economic and Revenue Forecast Council (WA ERFC).
- SB 5167 - Operating Budget and Supplemental Operating Budget
- There were no introductions of cannabis-related legislation on Thursday, and none staged for Friday.
- There were no introductions planned in the Senate for Friday April 4th.
- The draft introduction report in the House for Friday April 4th did not appear to include any cannabis-related legislation.
- On Friday, there were no cannabis-related policymaking events planned at the Washington State Legislature, although two bills were eligible for calendaring by the Washington State Senate Rules Committee (WA Senate RULE).
- ~9:45am: WA Senate RULE - Committee Meeting [ Event Details ]
- According to the announcement, members would meet at the Senate Rostrum during the initial caucus for an opportunity to vote on consent and regular packages of bills selected by committee leadership.
- At publication time, two cannabis-related bills were available for calendaring:
- ~9:45am: WA Senate RULE - Committee Meeting [ Event Details ]