WA's 2021 Legislative Session Ends: Key Highlights

OLYMPIA, WA — Despite the historic challenges posed by the coronavirus pandemic, lawmakers from across Washington state have managed to navigate their way through a mostly virtual legislative session.

The 105-day session ended Sunday. During that time, legislators tackled dozens of critical issues like equity, climate change, energy, police reform, housing and homelessness, COVID-19 relief, a capital gains tax, and more.

Among those celebrating the work done this session is Gov. Jay Inslee, who requested 11 pieces of legislation and saw all of them implemented in one form or another: eight passed as bills, two more were incorporated into the state budget, and the last one was implemented by Insurance Commissioner Mike Kreidler.

“It was a remarkable session with far-reaching impacts to the long-term well-being of our state,” Inslee said. “So many of these achievements were years in the making. It took hard work, sweat and tears of many in this state to see these policies finally make it over the finish line.”

Here's a look at some of the key legislation that passed this year:

$2.2 billion in COVID-19 relief

One of the earliest and most significant pieces of legislation this session was a bill, signed by the governor in February, authorizing the expenditure of $2.2 billion in federal funding to combat the economic fallout from the COVID-19 pandemic.

The legislation, House Bill 1368, sets aside millions in funding for relief efforts, including:

• $714M to K-12 schools.
• $618M to the state's public health response, including vaccination and contact tracing efforts.
• $365M for emergency eviction rental and utility assistance.
• $240M for business assistance grants.
• $50M for child care.
• $26M for local food banks.
• $91M for income assistance, of which $65M will be directed towards helping the state's immigrant population.

Climate commitments

The 2021 session also saw movement to mitigate the impacts of climate change with Governor Inslee's Climate Commitment Act.

The act targets greenhouse emissions from the "largest emitting industries" by allowing the state to sell "greenhouse gas emission allowances." The money from those sales are then spent on green transportation, clean energy and other climate solutions.

Some green transportation proposals are fairly modest, like a $1.5 million investment in promoting electric vehicles, others are much more robust, like $190.2 million proposal to further convert Washington state ferries to electrical power.

"We finally have meaningful climate legislation that reflects the values and priorities of Washingtonians, and respects the science of climate change," Inslee said. "The Climate Commitment Act caps and reduces climate pollution across our economy and enacts arguably the strongest environmental justice policy in the nation, obligating us to improve air quality for overburdened communities that live daily with air pollution from emissions."

Other climate-related legislation that passed this year include House Bill 1091, which requires the state to cut carbon emissions from transportation by 20 percent by transitioning to electric vehicles or cleaner fuels, and Senate Bill 5141, which uses recommendations from the environmental justice task force to keep vulnerable populations from bearing the brunt of the damage caused by climate change.

"These policies also create good, local jobs and better position our state to lead in a cleaner and more just economy," the governor said.

Addressing equity

2020 saw national unrest and widespread protests as the whole country grappled with issues of biased policing and structural racism.

The struggle to address racism in America is far from over, and whether or not cities like Seattle will substantially defund their police departments remains to be seen, but state lawmakers did pass several pieces of legislation trying to address equity and police reform.

“I firmly believe Washington will be an anti-racist state, and I will be taking actions that hold our state to that commitment. We need our policies and budget to reflect our dedication toward disrupting the harmful systemic cycle of racism and inequity,” Inslee said. “Now is the time to implement real change.”

One, House Bill 1267, attempts to reform they way police use of force is investigated. It creates a new agency, the Office of Independent Investigations, which serves under the governor, and comprised of non-law enforcement personnel and tasked solely with reviewing incidents in which police kill civilians.

HB 1267 requires the new team be trained on several pertinent issues, including:

• The history of racism in policing.
• Tribal sovereignty and the history of Native Americans within the justice system.
• Implicit and explicit bias.
• Racial equity.
• Antiracism and how to undo institutional racism.

Otherwise, it would not change how use of force investigations are performed, only who is in charge of performing them.

Under the budget, the Legislature also funded a new Equity Office, which will help other state agencies develop and implement diversity and equity plans.

A new capital gains tax

Finally, lawmakers have taken a stab at tackling the state's regressive tax structure. On the last day of the session, the Legislature approved a new capital gains tax, Senate Bill 5096, which will create 7 percent tax on all capital gains — like the sales of stocks, bonds and other high-value assets — above $250,000 a year. It provides for several exceptions like real estate sales and retirement accounts, which supporters say is an intentional attempt to make sure that the tax only applies to the richest 0.2 percent of Washington taxpayers.

"This important step to rebuild our unfair tax code was taken after years of work, years of dialogue, and thousands of voices calling for this policy," said sponsor Sen. June Robinson (D-Everett). "We've heard that people from every part of our state are ready to move toward a healthier, stronger future together, and it's time for the wealthiest among us to pay their fair share for that future."

Several bills passed through the Legislature still need to be signed by the governor. Inslee has 20 days after the session ends to take action on any of the last-minute bills passed in the final five days of the session.