Small Business Day

NFIB will host its annual Small Business Day at the Capitol on Wednesday, February 18. The event, including lunch, is free. An RSVP is required. Reserve your spot here today.

House Finance Committee Chair Rep. April Berg and the Senate’s revenue lead, Sen. Noel Frame, will both be speaking with members about the proposed Millionaire Tax.

In addition, participants will hear from:

— Senate Republican Leader John Braun

— Rep. Alicia Rule, House health care vice chair and sponsor of NFIB’s MLR bill

— Rep. Suzanne Schmidt, House labor committee ranking member

— Rep, Janice Zahn, Assistant majority whip (tentative)

For more information, contact Stacy Jenkins at (360) 870-7749.

Week 4 in Review

The number of bills NFIB is tracking dropped from 251 to 105 thanks to the February 4 policy committee cut-off.

February 9 is the first fiscal committee cut-off. We anticipate seven priority oppose bills may die, since they have not been scheduled for executive action tomorrow. However, bills can be added to the executive session agenda until a committee meeting ends.

Speaking of executive action, Monday’s fiscal committee agendas are jam-packed. House Finance will hold public hearings on two bills before moving to executive session for votes on 11 bills. House Appropriations has 40 on its list to approve. Senate Ways & Means is scheduled to consider a whopping 69 bills. Legislation deemed “necessary to implement the budget” (NTIB) are exempt from most cut-off deadlines and can be resurrected until the end of session.

Most of NFIB’s testimony last week took place during overlapping meetings of the House Appropriations and Senate Ways & Means committees on Thursday and Friday. Highlights include:

SB 6346, Millionaire Tax
The Senate Ways & Means Committee heard several hours of testimony on this bill Friday. NFIB expressed its concern that the bill does not mention sole proprietors at all, not in the definition of “pass-through entity” or provisions discussing the taxation of those entities, leading us to believe these small-business owners are likely to be subject to the tax based on their business revenue, not personal income through salary, wages, or distributions. Applying the tax to retained earnings and prohibiting carryover allowances for losses and B&O tax payments in excess of the income tax would also severely impact cashflow and damage small firms’ ability to manage expenses or make capital investments. We also objected that the so-called “small business tax relief” is about $100 million to increase the B&O filing threshold to $250,000 and increase the Small Business Tax Credit to around $500,000. Meanwhile, businesses grossing $250 million or more annually would see their B&O surcharge expire a year earlier, reaping $500 million in tax savings. NFIB has an active state ballot out to members and is encouraging them to vote immediately.

HB 2105, Immigrant Worker Protection Act
We testified opposed to the bill in House Appropriations, pointing out that it allows small employers to be sued by the Attorney General for alleged violations of worker notification requirements, as well as by those workers or third parties claiming to act on workers’ behalf—perhaps all at the same time. Small businesses generally lack the resources to defend themselves in court, leading to greenmail settlements with trial attorneys operating lawsuit mills.

HB 2145 and SB 5981, 340B prescription drug program
NFIB objected to these bills in testimony before both the House Appropriations and Senate Ways & Means committees. We pointed out Washington employers are already paying $218 million more for health insurance annually because of the explosive growth in the program. This is due to lost drug rebates, 340B providers prescribing drugs more often and that are twice as expensive than at non-340B facilities, and charging patients and their employer plans full price for these heavily discounted drugs. Both bills are expected to be amended and approved by their respective fiscal committee.

HB 2479, wage recovery fund
NFIB co-chaired the workgroup that developed this legislation to establish a fund allowing certain workers in need who have filed claims for wage theft to receive an early partial payment of those back wages. We testified in House Appropriations this week about the bill and L&I’s excessive fiscal note to implement it. We averted a proposed amendment that would have removed a crucial independent review of the program after five years, and delayed program launch. The bill won Appropriations’ approval Saturday and heads to the House Rules Committee.

HB 2615, B&O voluntary disclosure agreements and tax amnesty program
In House Finance, we testified in support of this bill to codify the Department of Revenue’s successful voluntary disclosure program that allows taxpayers who discover errors to self-report and remedy tax obligations without penalties. The bill would also allow a short tax amnesty period where businesses that are not properly registered or fulfilling their tax obligations to come forward and resolve those issues without being subjected to penalties and interest for back taxes owed. A similar program in 2011 brought in more than $200 million to state coffers. The bill passed Finance unanimously and was sent to House Appropriations for further action.

SB 6033, limited interest and penalty waivers for new sales tax on services errors
NFIB explained the high likelihood of inadvertent errors by small-business owners who may be collecting, reporting, and remitting these new taxes for the first time. Disappointingly, the bill has not been scheduled for executive action.

SB 5847, workers’ compensation medical provider network
In testimony to the Senate Ways & Means Committee, NFIB pointed out myriad problems with the bill that would all but scrap L&I’s medical provider network and its treatment guidelines, putting injured workers at risk of inappropriate and ineffective medical treatment. Prior to the bipartisan reforms of 2011, there were well-known claims mills where unscrupulous medical providers would routinely perform unnecessary procedures, provide inadequate treatment, and otherwise unnecessarily extend injured workers’ claims to continue receiving payments from L&I. Despite our objections and those of other business groups, the bill is scheduled for executive action to allow negotiations to continue in a misguided effort to “improve” the bill.

SB 6067, workers’ comp “health insurance” benefit increase
We pointed out yet again, this time before the Senate Ways & Means Committee, that this bill, advertised as providing ongoing health insurance coverage for injured workers and their dependents, does nothing to achieve that goal. There is no requirement or mechanism in the bill directing the additional $100 million annual time-loss benefit increase to actually be used to continue or obtain health insurance. The bill has not been scheduled for executive action. We are hopeful that means it will not advance.

SB 5387, corporate practice of medicine
NFIB testified in support of this bill in Senate Ways & Means. With the growing consolidation, acquisition by hospitals, insurers, private equity firms, and other investors, of independent health care practices and facilities we explained the importance of ensuring that medical decisions must be made by medical providers based on medical need, not by business managers, AI algorithms, or distant boards of directors. We also pointed out the resulting use of facility fees and other overcharges that drive up the cost of medical care and health insurance to small-business owners and their employees from these arrangements.

HB 2283, increasing the medical loss ratio for health insurers
This measure advanced from the House Rules Committee to the House floor calendar on February 6, making it eligible for debate and a floor vote as early as next week. NFIB proposed the bill based on an affordability report by the Office of the Insurance Commissioner that showed potential for health insurance premium reductions, consumer rebates, medical provider reimbursement increases, and additional tax revenue resulting from this change. Health insurers continue to oppose the bill, and floor amendments are expected but have not yet been introduced. NFIB is pleased to see the bill and the conversation about insurer profits from premium increases on small businesses and individual policyholders continue.

Next Week

Since there will be no opportunity for public comment during Monday’s executive sessions, and both chambers will be on the floor the rest of the week, we are not providing an upcoming events calendar.

Prior Legislative Reports

February 1—Bills Increasing Workers’ Comp. Costs Advance

January 25—No Small Business Relief in Millionaire Tax Bill

January 19—Washington Legislature Opens 2026 Session