• Capital Gains and Estate Taxes—SB 5813 (Wilson)
  • Adds a 2.9% excise tax on capital gains over $1 million, on top of the current 7% tax applied to gains over $270,000 (adjusted annually for inflation).Increases estate tax rates for individuals who pass away after July 1, 2025 (changed from January 1, 2025).
    
• Business and Occupation (B&O) Tax Surcharges—HB 2081 (Fitzgibbon)
  • Increases B&O tax rates from 1.75% to 2.1% for the ‘service and other activities’ B&O tax rate for businesses with gross income of over $5 million. Businesses with gross income between $1 million and $5 million would remain subject to the 1.75 percent tax rate.Increases B&O tax rates on sectors such as manufacturing, retail, child care, and gambling.Imposes an additional 0.5% surcharge on businesses with state income over $250 million.Increases the Advanced Computing Surcharge from 1.22% to 7.5% and increases the annual cap to $75 million.
  • Provisions responding to the Antio decision apply B&O tax to investment interest income if investment are more than 5% of a businesses total revenue.
    
• Closing Ineffective & Obsolete Tax Preferences—SB 5794 (Salomon)
  • Repeals, modifies, or clarifies the legislative intent of certain tax preferences.
  • Following LSW advocacy, the bill no longer repeals the preferential rate for nonprofit research and development.
    
• Property Tax Cap Adjustment—HB 2049 (Bergquist)
  • Adjusts the annual 1% cap on property tax increases to allow for growth tied to inflation and population, capped at 3%.
  • Revenue would support K–12 education, including special education. 
    
• Sales Tax on Services and Nicotine Products – SB 5814 (Frame)
  • Expands the state’s sales and use tax to cover services like IT consulting, temporary staffing, and advertising.
  • Includes all nicotine products, whether synthetic or tobacco-derived, under the tobacco products tax.
  • Imposed a tax of $.10/cigarette
  • Requires a one-time prepayment of state sales tax from businesses with $3 million+ in taxable retail sales in 2026. The revenue would support education, healthcare, social services, and other programs.

While tax and revenue debates dominated the session, several other Life Science Washington priorities saw progress. Notably, the CARE Fund received full funding, and a number of other priorities advanced. However, as expected, many initiatives requiring new funding were deferred to future sessions.

• Andy Hill Cancer Research Endowment (CARE Fund)
  • $22.2 million for the biennium

• Department of Commerce Strategic Industry Sector Fund
  • $1.219 million per year, a 50% reduction in funding and a reduction of 5.5 FTE. LSW will work with Commerce regarding the realignment of the sector lead program.

• Career Connect Washington (CCW)
  • Career Connected Learning Grants (including sector leads) funded at $4.684 million for the biennium, preserving funding to maintain LSW workforce efforts at CCW sector lead for life sciences.
  • CCW was the target of significant funding cuts, but advocacy from partners including LSW and LSW member companies helped preserve funding for sector leads. We will continue advocacy efforts to urge Governor Ferguson to preserve this funding as he considers potential budget item vetoes.
    
• Chemical Sciences Facilities at the UW Seattle (Capital)
  • Funded at $125 million for the biennium

• CARE Fund administrative changes—SB 5455 allows multiple administrators and nonprofit entities to carry out the fund’s administrative duties. Community outreach grants for clinical trials are exempt from some evaluation and matching fund requirements, though core research grants remain subject to them. The bill also defines “clinical trial” and updates board membership following the Fred Hutch merger.
  
  
• Plastic packaging and recycling—SB 5284 overhauls recycling in Washington state and implement an end-of-life producer responsibility program passed the legislature and has already been signed into law. LSW worked with BIO to ensure that the bill exempts packaging for products regulated by the FDA, including vaccines and biologics.
  
  
• Right to Repair—Following many years of introduction, HB 1483, allowing third-party repair businesses to repair electronic devices by requiring device manufacturers to make available repair manuals, tools, and other proprietary information finally passed the legislature. LSW worked with AdvaMed to ensure the final bill includes exemptions for medical devices from such requirements.

• Reaccreditation of the Washington State University Elson S. Floyd College of Medicine
  • Not funded
    
• Team Health Education Building at WSU Spokane (Capital)
  • Not funded

• Artificial intelligence—LSW and AdvaMed sought amendments to HB 1168 (increasing transparency in artificial intelligence) to exempt systems regulated by the FDA. The sponsor did not accept any amendments sought by industry and ultimately the bill did not advance out of the Appropriations Committee.

• Biomarker testing coverage—LSW testified in person during the public hearing for HB 1062 and highlighted the role of Washington life science companies in developing groundbreaking new technologies, but once again, the bill succumbed to projections of high costs to state health plans and the budget realities facing lawmakers. Additionally, a Department of Health mandated benefit review recommended against extending coverage, claiming that biomarker testing is largely experimental and unproven. LSW will continue working with the American Cancer Society to enter the 2026 session prepared to refute both claims.

• Biosimilar prescribing practices—SB 5594, presented by the Association of Washinton Health Plans was introduced to alter formulary placement and the ability of health plans to steer patients to biosimilars and to allow a pharmacist would be able to substitute a non-interchangeable biosimilar without having to obtain authorization from the prescriber. We worked with BIO and PhRMA to ensure that biosimilars are not substituted unless they have been determined by the FDA to be “interchangeable” biosimilars. The bill passed the Senate with our amendment, but did not advance out of the House Health Care & Wellness Committee.

• Noncompetition agreements—The business community fiercely opposed HB 1155 which would have banned noncompete clauses in Washington state. The sponsor did not entertain efforts at compromise including preserving noncompete clauses for senior executives. Ultimately, the bill did not pass.

• Policies supporting newborn screening—due to budget constraints, neither whole genome sequencing (HB 1444), nor legislation providing for timely implementation and associated funding for enhanced newborn screening in parity with the Recommended Uniform Screening Panel (HB 1697) passed this year.

• Rare Disease Advisory Council—despite attempts to bring down the cost of this program by narrowing its scope to simply conduct a census or rare disease in Washington state and to house the program at UW instead of DOH, SB 5064 succumbed to budget constraints.

The post 2025 Legislative Outcomes appeared first on Life Science Washington.

A top priority that we worked on with legislators over the summer was maintaining support for the Life Science Washington Institute’s incredibly successful Washington Innovation Network (WIN) program.  We now feel that we can work directly with Commerce administratively to maintain support for the program this year and will revisit the legislative request in a less contentious budget year.

In addition to the WIN program, we worked with legislators over the summer to help them understand the challenges and costs associated with developing new therapies, highlighted the detrimental impacts of programs like the PDAB on patient access, underscored the CARE Fund’s role in positioning Washington as a cancer research hub, and advocated for bolstering employer-based workforce initiatives.

• The Washington Legislature should fully fund the Andy Hill Cancer Research Endowment (CARE Fund) to ensure continued progress in the fight against cancer and to support life-saving research at our cancer institutes and local companies. Investment in this endowment supports the state’s life sciences sector, fosters job creation, and, most importantly, improves health outcomes for cancer patients and their families. 
• LSW supports funding to maintain a Life Science & Global Health Sector Lead at the Department of Commerce.  It is essential that the state has a high-profile person responsible for representing the industry with state government. The position is also critical to help the state secure federal grants and streamlining state resources to support life sciences research, workforce initiatives, and industry initiatives.
• Ensure that the B&O surcharge paid by life science companies to support the Washington Education Investment Account (WEIA) is used to support high-demand degree production, which includes the life sciences, rather than general higher education or general fund programs.
• $8M for Career Connect Washington to administer community and technical college endorsed career launch programs and program builder grants and $6M for the career connected learning grant pool to fill program gaps in high-demand industry areas. This funding request was developed with stakeholder feedback, including from industry sector leaders. We will also partner with advocates to ensure legislators and the incoming Ferguson administration recognize the importance of supporting Career Connect Washington and its mission to promote career readiness and employer-supported degree programs.
• $3.6M budget to assist with the reaccreditation efforts of the Washington State University (WSU) Elson S. Floyd College of Medicine. This funding will address areas identified by accreditors in their 2023 visit and strengthen critical components of the program, including clinical partner stipends, personnel supporting student research, and services such as career development. These investments are essential for preparing the next generation of healthcare professionals and advancing the state’s medical education capabilities.
• WSU’s request for $58M to build the Team Health Education Building on the Spokane campus (capital). This facility will offer a simulation hospital for health sciences students, improving training opportunities and addressing the state’s healthcare workforce needs.
• $125M to construct and modernize chemical sciences facilities at the University of Washington (UW) Seattle campus (capital). A new Chemical Sciences Building will make UW a destination for top chemists and promising students while solving critical issues facing the department, including safety, security, and research constraints. It will also help foster interdisciplinary collaboration that is not possible in the 100-year-old Bagley Hall.

HB 1062

LSW will advocate for legislation that will be reintroduced by the American Cancer Society and other partner organizations to advance biomarker testing coverage legislation, enabling more Washington residents to access critical diagnostics and tests developed by local companies. In 2024, the coalition was successful in restoring the bill to its original disease agnostic status, rather than only covering cancer. Expanding biomarker testing coverage is a win-win for all involved: it can lower overall healthcare costs by enabling earlier, more precise diagnoses and guiding personalized treatment plans. Increased access to these innovative diagnostics leads to better treatment outcomes, especially for cancer and chronic diseases where tailored therapies significantly improve patient care. By supporting this legislation, Washington can enhance health equity, bolster local industry, and drive healthcare innovation for its residents.

HB 1238 / SB 5064

The Rare Disease Advisory Council aims to advise state government on policies to improve healthcare access, promote early diagnosis, and enhance medical education. The proposal initially championed by local parent advocates to address the needs of families affected by rare diseases will be reintroduced in 2025, moving the program from the Department of Health (DOH) to UW. In 2024, DOH raised issues around the cost of administering the program.  So, the proposal has been reworked, and UW has agreed to support it in 2025. LSW will continue working closely with the rare disease advocacy community to advance this effort.

LSW will advocate for legislation supporting improved access to newborn screening. Enhanced newborn screening can identify genetic and disease conditions accurately and rapidly, enabling timely, personalized care that improves health outcomes, particularly for rare and complex diseases. Policies such as coverage for whole genome sequencing (HB 1444) and expanding the state’s newborn blood screening panel would not only expand critical diagnostic options for Washington families but also support growth within the state’s life sciences sector which drives innovation in advanced diagnostic tools.

HB 1071

Anticipating another attempt to pass plastic and paper products recycling legislation, LSW will work with BIO to maintain exemptions secured consistently over the past several years for FDA approved products including drugs and biologics.

Washington legislators should ensure artificial intelligence (AI) remains a powerful tool for drug discovery and innovation and should be treated differently than AI for consumer applications. The FDA is already actively regulating AI for drug and medical devices. It is essential that state-level actions do not impede federal regulations governing drug and medical device development, approval, and post market monitoring, nor interfere with long-standing federal safeguards related to HIPPA, public health, and clinical trials, all of which provide a necessary framework for safeguarding patient data and ensuring research integrity. As needed, LSW will educate lawmakers on the importance of aligning with federal guidelines to foster an environment where AI can advance medical research while maintaining privacy protections and supporting public health outcomes.

HB 1483 / SB 5423

If legislation is reintroduced in 2025 allowing third-party repair businesses to repair electronic devices by requiring device manufacturers to make available repair manuals, tools, and other proprietary information, LSW will again collaborate with AdvaMed and other partners to secure the exemptions for medical devices that have been included in previous legislation from such requirements.

A state Commerce Department Manufacturing Tax Force may introduce a manufacturing-focused R&D tax credit bill. LSW has historically been one of the strongest advocates for restoring an R&D tax credit in Washington because life sciences manufacturers face serious competitive challenges from other states that provide much larger incentives and tax credits. As currently structured, the bill is focused on small manufacturers, not R&D intensive companies.  As a result, most life sciences companies would be included in the bill. Life Science Washington will share our concerns that the bill will have limited impact on life sciences companies so we can preserve the ability to revisit a stronger bill in the future.

The Washington Health Care Authority is not requesting legislation to expand the scope of the PDAB, and LSW will oppose efforts by individual legislators to alter the PDAB, should such legislation be introduced. The PDAB is in its critical early stages, building on carefully negotiated compromises among stakeholders, including industry representatives, patient advocates, and policymakers. Preserving the voice and involvement of our state’s biotech, manufacturing, and life sciences industries is essential to ensure the Board’s decisions reflect the complexities of drug development, pricing, and patient access.

The Washington legislature should refrain from attempting to alter the federal 340B Drug Pricing Program, as it is governed by federal law and was established to provide discounted drug pricing to eligible healthcare organizations serving vulnerable populations. Any state-level mandates requiring manufacturers to supply discounted drugs to contract pharmacies without conditions or restrictions would overstep state authority and disrupt the program’s intended balance. Such requirements could also hinder manufacturers’ abilities to ensure program integrity, potentially leading to unintended consequences like reduced access to discounts for eligible entities. Expansion of the 340B program in Washington state could also severely hinder the state’s Medicaid budget, as lack of oversight of contract pharmacies raises significant concerns about duplicate discounts. Maintaining alignment with federal guidelines will protect the 340B Program’s original purpose and preserve critical support for the communities it serves. Recently, there has been a flurry of news related to unintended expansions and abuses of the program by hospital systems.  Those issues need to be resolved at the federal level before introducing state legislation.  

The post 2025 LSW Legislative Agenda appeared first on Life Science Washington.

• Andy Hill Cancer Research Endowment (CARE Fund) – Legislators made additional investments to support cancer research and fully fund the CARE Fund. With an additional $9.5M available for grants, the full investment for the 2023-25 biennium now stands at $31,684,000.
• Career Connected Learning – Funding to connect students with career-focused learning opportunities received an additional $1M.
• University of Washington Chemical Sciences Building – The supplemental capital budget made a new investment of $5M for design funding for the new Chemical Sciences building at the University of Washington in Seattle to replace the 100-year-old Bagley Hall.

Prescription Drug Affordability Board (PDAB)
As anticipated, legislators did not take action on legislation introduced last year to dramatically expand the scope of the state’s nascent PDAB. The bill would have increased the number of drugs eligible for price caps, allowed more drugs to be reviewed by the Board, and chip away at additional guardrails we previously secured. LSW will continue monitoring the implementation of the PDAB and work with our advocacy partners to fend off future attempts to expand the drug pricing scheme.

Artificial Intelligence (AI)
This session, the legislature took its first major foray into considering new state policies to regulate AI, with bills introduced to provide consumer protections regarding decisions made by automated decision-making machines, among others. Legislators chose to set aside broad new policies in favor of legislation creating a task force charged with making recommendations on how the state may consider regulating AI. LSW met with bill sponsors to educate them about how the life sciences industry uses AI as a scientific research tool for accelerating existing human-directed data processing for the development of new drugs, optimizing clinical trials, and improving the understanding of complex biological processes. The final AI task force bill includes a mix of government agencies and private sector representatives as task force members, with advisory committees set to provide input on various areas where they can provide expertise. LSW will monitor task force activities and provide input as necessary to make sure AI can continue to be used as a tool for discovery and data processing.

Right to Repair
LSW partnered with AdvaMed before the legislative session began to meet with lawmakers and educate them about how potential legislation allowing Right to Repair for medical devices would harm patients. Together, we successfully fended off such a bill. Our previous efforts to exempt medical devices for Right to Repair legislation for consumer electronics like phones and laptops also worked to ensure that a new Right to Repair bill was introduced with the exemption already in place. The bill did not pass, and we will continue working with our advocacy partners to ensure that any future legislation continues to exempt medical devices.

Biomarker Testing Coverage
The American Cancer Society continued leading efforts to guarantee coverage for biomarker testing, and the coalition was successful in stripping an amendment that would narrow the bill to only apply for biomarker testing for certain cancers. While the bill ultimately did not pass, that progress sets the stage for continuing work through the rest of the year to convince legislators that early detection and treatment saves lives and reduces costs for patients and health systems.

Rare Disease Advisory Council
A proposal by local parent advocates to elevate the needs of families impacted by rare disease was again considered this year to advise state government on policies to improve health care access, early diagnosis, and medical education programs. Although a new strategy helped overcome previous bureaucratic opposition, the bill was not scheduled for a committee hearing in time to advance past the required deadline. LSW will continue working with rare disease advocates to advance the needs of families and children impacted by rare diseases.

LSW also weighed in on select legislation not originally included in our policy agenda that would impact the life sciences.

Whole Genome Sequencing
LSW has long partnered with rare disease advocates as our region is a leader in finding breakthroughs that can help deliver better outcomes through diagnosis and treatment. Whole genome sequencing can particularly help children who are born with rare diseases. We were glad to help apply pressure to House leadership to allow a vote on a bill that has been proven in other states to reduce costs to health systems by helping ensure families can access whole genome sequencing as part of their treatment plan. Unfortunately, the bill was not prioritized for action by the legislature this year.

Waste Management and Recycling
For the second year, legislators considered major new policy to apply new postconsumer recycling content and other recycling-related requirements on producers of certain paper and packaging products. The bill excluded certain drugs and medical devices, but only those regulated by the FDA under the federal Food, Drug, and Cosmetic Act. We worked with BIO to secure an amendment to reference biologics and vaccines, which are regulated under a different federal act, the Public Health Service Act. While the bill did not pass, we will watch for future similar legislation to ensure proper exemption for drugs, biologics, vaccines, and medical devices.

Primate Research
We monitored new legislation that would have applied additional transparency requirements to the Washington National Primate Research Center at the University of Washington, many of which the Center already voluntarily provides. Ultimately, the bill did not pass.

The post 2024 Legislative Outcomes appeared first on Life Science Washington.

Life Science Washington is in a strong position to advocate on behalf of Washington’s life sciences community after spending the summer and fall strengthening relationships with key legislators. These efforts include a tour of Absci with Vancouver-area legislators who all hold key positions on health care committees, a tour of Seagen’s Bothell facility with one of that area’s legislators, and a tour of Adaptive Biotechnologies with several Seattle area legislators. 

• $5 million in capital budget design funding for the new Chemical Sciences building at the University of Washington Seattle. A new Chemical Sciences Building will make the UW a destination for top chemists and promising students while solving critical issues facing the department, including safety, security, and research constraints. It will also help foster interdisciplinary collaboration that is not possible in the 100-year-old Bagley Hall.
• In 2023, we worked to make an historic investment in the CARE Fund and make funding available to Washington companies for the first time. Since then, the program has been collecting slightly more than the expected $20 million per biennium. In 2024, we will urge legislators to continue fully funding the CARE Fund.
• $2.7 million increase in career connected learning grant pool and $6.25 million for Career Launch programs at community and technical colleges to help match the pace of current student enrollment and forecasted demand growth. Additionally, we will advocate to ensure that taxes paid by LSW members under the Workforce Education Investment Act are prioritized for employer-driven workforce programs.

HB 1269 — Rep. Marcus Riccelli (D-Spokane)

LSW will work to maintain the coalition we formed in 2023 to successfully oppose the Health Care Authority’s proposed expansion of the PDAB’s authority. HCA’s bill would allow an upper payment limit on more drugs, lower the price threshold for qualification, eliminate the seven-year exclusivity provision, remove the exemption for rare disease drugs, and prohibit industry experts from serving on advisory panels. OPPOSE.

FDA and other federal agencies already regulate AI and the use of data, and additional rules and regulations are being developed. To avoid a patchwork of state policies, the legislature should defer to federal regulations, just like they did in 2023 with personal health care data privacy (My Health My Data Act). LSW will work to ensure that future regulations support the technology’s role as a scientific tool with the potential to dramatically reduce the time and cost of developing new drug candidates. MONITOR.

HB 1392 — Rep. Mia Gregerson (D-SeaTac)

We successfully included a medical device exemption in all consumer products Right to Repairs bills previously considered by the legislature and will work with AdvaMed to make sure medical devices are not covered in any additional legislation introduced. MONITOR.

HB 1450 — Rep. Monica Stonier (D-Vancouver)

In 2023, the American Cancer Society (ACS) led a coalition in support of legislation to guarantee coverage for biomarker testing. The bill’s scope was narrowed to apply only to biomarker testing for cancer, but it did not pass. We will work with ACS to restore the bill to its original disease-agnostic status. SUPPORT with amendment.

SB 5097—Sen. Jeff Holy (R-Spokane)

A proposal by local parent advocates to elevate the needs of families impacted by rare disease was reintroduced in 2023 to advise state government on policies to improve health care access, early diagnosis, and medical education programs. The bill remains under consideration in 2024, and we will continue supporting the rare disease advocate community’s efforts to pass a bill establishing a Rare Disease Advisory Council in Washington state. SUPPORT.

The post 2024 LSW Legislative Agenda appeared first on Life Science Washington.

This year, Life Science Washington (LSW) began the session with a modest agenda, which grew significantly when our state’s Health Care Authority (HCA) sought to amend legislation passed just last year without their objection that would have given them virtually unchecked authority to set upper payment limits on all drugs.  We were successful in stopping the bill this year.  In addition to stopping this legislation, we were successful in securing improvements or exemptions in a number of additional bills impacting biotech and medical device companies. We also advocated for research funding, budget investments in STEM education, workforce and career training, and capital funds for higher education science facilities.  Below is a summary of the legislative items that LSW was active on this session:   

• Andy Hill Cancer Research Fund (CARE Fund)—fully funded at $20.6 million. This is the first time the state has funded the program to its statutory maximum.
• University of Washington—STEM education requests fully funded at all three campuses.
• Washington State University—New public health degree program with an infectious disease track in Pullman and behavioral health track in Spokane and Vancouver fully funded.
• Career Connect Washington—$2,075,000 increase for career connected learning grants.
• WSU Pullman Eastlick-Abelson renovation—providing improved research and teaching space to help meet growing student demand in high-needs areas as part of the construction of a new Pullman Sciences Building—$22 million.
• WSU Spokane Team Health Building—funding for design, demolition, and site preparation for the new facility that will support experiential learning, clinical education through simulation, and clinical research providing enhanced learning opportunities for both students and local health care providers—$7 million.

A new effort by the state’s Health Care Authority (HCA) would have dramatically expended the nascent PDAB established in a heavily-negotiated bill just last year. It would have removed safeguards for innovative therapies being developed and manufactured in Washington, as well as important protections for medicines for patients with rare diseases, and cutting-edge therapies for patients at our leading hospitals and cancer centers. From a process standpoint, it was almost unprecedented for a state agency to seek legislation completely rewriting legislation that passed just last year, which they didn’t oppose or even provide testimony. LSW and our partners succeeded in urging legislators to reject this bad bill.

The legislature has tried for many years to address comprehensive data privacy but struggled to find agreement across both chambers. This year, legislative Democrats and Attorney General Bob Ferguson focused on health care data privacy with an eye towards reproductive rights. As is often the case with privacy legislation, the original bill would have had unintended consequences that would have impacted clinical trials, FDA-reporting, and other Federal HIPPA data requirements that needed to be addressed. The final bill, awaiting the governor’s signature to become law, includes a comprehensive set of amendments that LSW worked with legislators to include that provide exemptions that align the legislation with HIPPA and FDA reporting requirements, and protect the integrity of research and clinical trials.

If clinical trials don’t reflect the patient population, then disparities in access to treatment can be compounded, particularly for people of color. To help solve this problem, the legislature passed legislation and made budget investments that will improve outreach to underrepresented communities through trusted messengers and culturally appropriate materials in multiple languages.

This bill requires producers of certain batteries to participate in a stewardship organization that plans for and provides battery collection and disposal. The original bill included an exemption for medical devices, but authorized the Department of Ecology to adopt future rules that could impact medical devices and manufacturers. Since many medical devices require FDA approval, state rulemaking could require costly, time-consuming redesign that could jeopardize FDA approval. The final bill that passed the legislature was narrowed to remove Ecology’s ability to unilaterally include medical devices in a battery recycling program. It is on the Governor’s desk for his signature.

Following up on legislation passed in 2022 that banned prior-authorization requirements for biomarker testing, the American Cancer Society led a coalition in support of a new bill to guarantee coverage for testing. The bill’s scope was narrowed to address heavy cost assumptions, but ultimately did not advance out of the fiscal committee.

Life Science Washington is proud to serve as the Life Sciences Sector Lead for CCW, a partnership between the state government, business, labor, education, and community leaders to create work-based and academic programs for young people to explore career paths and obtain work experience while getting college credits. CCW pursued legislation to implement part of the CCW Futures Plan that calls for the creation of an Office of Career Connect Washington within the Washington Student Achievement Council to ensure continuity of the program, strengthen industry partnerships, and ensure accountability. The bill received a strong public hearing and unanimous vote in the Senate Early Learning and K-12 Education Committee but stalled in the fiscal committee.

Legislation requiring personal electronic device manufacturers to share parts, tools, and information with independent repairs shops has been introduced for several years without success. While the bill’s sponsor is focused on making it easier and more affordable to repair devices like phones and laptops, LSW sought to exempt medical devices in recognition of the implications for health and safety that exist with repairing and servicing those devices. This latest proposal was again amended to exclude medical devices. The legislation ultimately did not advance due in large part to heavy opposition by the technology industry.

A proposal by local parent advocates to elevate the needs of families impacted by rare disease was reintroduced this year to advise state government on policies to improve health care access, early diagnosis, and medical education programs. The bill got bogged down by bureaucratic opposition, but before this year’s legislative session had even ended, advocates began preparing a new strategy that will hopefully see the bill pass in 2024. We will continue engaging with the rare disease advocate community to support their efforts.

The post 2023 Legislative Outcomes appeared first on Life Science Washington.

Many issues affecting the life sciences industry that Life Science Washington (LSW) has taken positions on or monitored in recent years remain under consideration and are expected to come up for debate again this session. LSW priority issues for the 2023 state legislative session include: 

• Andy Hill Cancer Research Endowment (CARE Fund)—The CARE Fund is a public-private partnership that provides state investment to fund cancer research in Washington state. The Governor’s budget includes $20.6 million for the CARE fund.  LSW supports fully funding the program.
• LSW is supporting our state’s public universities’ funding requests related to the life sciences including:
  • Additional enrollment slots in information, computing, and engineering at all three University of Washington campuses—$18.224 million
  • A new academic program in public health at WSU Pullman—$2.5 million
  • A process to renovate and replace aging science facilities at WSU Pullman—$22 million
  • Design and site preparation of a new WSU Spokane Team Health Education building—$7 million

HB 1269 — Rep. Marcus Riccelli (D-Spokane)

Last year, LSW and our partners worked with the legislature to amend a bill that created a Prescription Drug Affordability Board so that it did not target innovative drugs being developed by local companies and research institutions. Following those good-faith negotiations just last year, the HCA now seeks to expand the program’s authority and include rare disease drug that were explicitly exempted by the legislature, before the current policy has even taken effect. Expanding this untested program could reduce access to drugs and hurt our state’s ability to be a leader in research and development of new medications. We will oppose any change to this program. OPPOSE.

SB 5144 — Sen. Derek Stanford (D-Bothell)

Last year, the Washington State House considered a bill to require producers of certain batteries to participate in a stewardship organization that plans and provides battery collection and disposal. We are working with AdvaMed to make sure medical devices and associated companies are exempted from any legislation introduced in 2023. MONITOR.

HB 1450 — Rep. Monica Stonier (R-Vancouver)

Biomarker testing can help patients identify cancer early when it’s easier to treat as well as help them identify the most effective treatment options.  Biomarker prior-authorization legislation was previously signed into law, but it did not address coverage. While access to testing is critical, health plan coverage must be addressed to break down the biggest obstacle to care. The American Cancer Society is working to pass legislation to guarantee coverage and LSW will support their efforts. LSW has member companies that are involved in both diagnostics and therapies related to biomarkers and other advanced precision cancer care, so this is of particular interest to our members. SUPPORT.

SB 5305 — Sen. Lisa Wellman (D-Mercer Island)
HB 1374 — Rep. Vandana Slatter (D-Bellevue)

LSW is proud to serve as the Life Sciences Sector Lead for Career Connect Washington (CCW), a partnership between the state government, business, labor, education, and community leaders to create work-based and academic programs for young people to explore career paths and earn money or college credit. This year, CCW is seeking legislation to create an Office of Career Connect Washington within the Washington Student Achievement Council. This will help ensure continuity of the program past the current governor and enhance its mission by adding more members to the cross-agency workgroup, strengthening industry partnerships, and ensuring accountability. SUPPORT.

HB 1155 — Rep. Vandana Slatter (D-Bellevue)

This has long been a hot topic, and, so far, the legislature has been unable to find agreement on the highly complex issue. Well intentioned data privacy legislation can cause problems for healthcare providers, conducting clinical trials, and developing new therapies if it is not aligned with pre-existing Federal HIPPA data privacy standards. Language LSW introduced to exempt health information that is already covered under Federal HIPPA has since become a model for other states. This year, Attorney General Bob Ferguson has requested legislation to protect health data privacy and reproductive rights. It remains unclear if the legislature will make another attempt at broader consumer data privacy regulations. LSW will work to ensure that any data privacy bill includes the same health care data exemptions that were included in previous legislation. MONITOR.

HB 1392 — Rep. Mia Gregerson (D-SeaTac)
SB 5654 — Sen. Derek Stanford (D-Bothell)

Legislation focused on allowing consumers to go to local repair shops rather than the manufacturer of personal electronic devices can help bridge the digital divide but fixing a cracked phone screen or laptop is much different than fixing a medical device. Because of the implications for health and safety, we have work with the legislature to include a medical device exemption in previous “right to repair” legislation and will work to make sure the exemption is included in any bills that are introduced in 2023. MONITOR.

SB 5097 — Sen. Jeff Holy (R-Spokane)

We have been proud to support the work of local parent advocates who founded the NW Rare Disease Coalition, plus partners like Seattle Children’s Hospital and Research Institute and the University of Washington, and their work to improve outcomes for families impacted by rare disease. Legislation passed the Senate in 2022 to create a rare disease advisory council that would help bridge the gaps in health care access, early diagnosis, and resources supports for families managing rare disease; make recommendations on the implementation of a continuing rare disease medical education program; and develop effective strategies to raise public awareness. It would give voice to a broad representation of stakeholders to serve as a conduit to legislators who are contemplating policy initiatives that might impact the community. Legislation will be reintroduced in 2023 that provides two council positions to representatives from the life sciences industry focusing on developing therapeutic products for rare disease patients, research efforts related to those endeavors, or have a demonstrable understanding of the path to commercialization of such products. SUPPORT.

The City of Seattle is developing a policy and Seattle City Council legislation to transition larger buildings to cleaner energy. The proposal will require building owners to collect and verify energy and emissions data, meet greenhouse gas intensity targets or alternative compliance options, and achieve net-zero emissions by the final compliance cycle. The Office of Sustainability & Environment is anticipated to complete its draft of the policy before the end of 2022, with the Seattle City Council legislative process commencing in Q1 2023. Since many life science facilities have unique operating and energy requirements, Life Science Washington will monitor this process and engage as necessary to ensure that the life science industry can participate in the clean energy transition in a meaningful yet realistic manner considering our industry’s unique energy needs. MONITOR.

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We were able to obtain funding for new life science facilities at colleges and universities across the state, secure exemptions for the industry in a number of bills that would have created significant compliance challenges for life science companies, stop ill-conceived drug price review legislation, and make sure that no new taxes were imposed on the industry. We also worked closely with legislators to keep them up to date on all the great things that local companies are doing to combat COVID while also making sure that life science companies with employees that worked in healthcare facilities or with COVID samples were prioritized for early access to vaccines. Below is a complete summary of the issues that Life Science Washington was working on this session.

The budget items below were fully funded at the amounts listed below:

Shoreline Community College Health, Science & Advanced Manufacturing Building — $47.4 million

Life Sciences Building at WSU-Vancouver — $52.6 million

Andy Hill CARE Fund — $11.7 million

Governor’s Life Science Sector Lead — Position funded

WSU Elson Floyd College of Medicine — $3.6 million to complete funding for the third and fourth year of the 20-seat expansion. This completes funding for four classes of 80 students each at the Elson S. Floyd College of Medicine.

Payroll Tax Avoided — Over the summer, state tax revenue was down due to the pandemic and there were serious discussions about adding a new payroll tax. We worked with the lawmakers to help them understand the disproportionate impact such a tax would have on life science companies and they indicated an openness to exempting life science companies. However, as the session got underway the budget picture had improved significantly.  By the end of session, state revenue collections had rebounded to pre-pandemic levels and the payroll tax was never heard in committee.

While the payroll tax didn’t receive a hearing, Democrats did pass a capital gains tax (SSB 5096). The legislation creates a 7% capital gains tax, with the first $250,000 of capital gains excluded along with exemptions for the sale of a home, commercial real estate, retirement accounts and other properties. This bill is projected to generate $550 million/year in new revenue that will go into a new account to support early learning, childcare, and education.  The tax is being challenged in court.

COVID Health Data Privacy Bill (HB 1127) — HB 1127 sought to place greater privacy protections on COVID health data in order to increase people’s comfort using COVID contact tracing apps. The bill restricted a covered organization’s ability to collect, use, or disclose COVID-19 health data. A covered organization did not include a health provider, a health facility, or a public health agency. However, we felt that the bill would also capture clinical trial data and FDA reporting data. We worked with the bill sponsors to successfully amend the bill to include most of the same exemptions that were included in the Consumer Privacy Bill.  The bill passed the legislature but was vetoed by the Governor.

Right-To-Repair Legislation (HB 1212) — HB 1212 required original manufacturers of digital electronic products to allow third parties to repair their devices. We were successful in getting medical devices exempted from the bill. Ultimately, the bill failed to advance out of committee, but will likely be back next year.

Unsupported Drug Price Increase Legislation (SB 5020) — SB 5020 authorized the Health Care Authority (HCA) to impose a fine on biopharmaceutical manufacturers if their products were judged to have an “unsupported price increase” as determined by the Institute for Clinical and Economic Review’s (ICER) Unsupported Price Increases (UPI) Report.

LSW joined BIO in opposing this bill because SB 5020 would have outsourced the review of prescription drug prices to a non-governmental entity that is not accountable to the public or elected officials.  SB 5020 passed the Senate Health & Long-Term Care Committee but did not advance any further.

Data Privacy (SB 5062) — The Senate passed a comprehensive data privacy bill with only one dissenting vote. The bill contained all of the healthcare data exemptions that LSW and our coalition proposed.  However, the bill died in the House.  On a positive note, the healthcare data privacy exemptions that we developed for this bill have become model legislation.  AdvaMed is encouraging all of their state affiliates to use the language developed for the bill and it has been included in legislation in several states including Minnesota, Utah, Virginia, and Colorado.

Limiting Toll Bonding on I-405 (SB 5232) — In 2019, ESSB 5825 passed, which authorized both tolling on the I-405/SR 167 Express Toll Lane (ETL) and Puget Sound Gateway facilities, and the issuance of up to $1.5 billion in bonds to fund various project priorities. SB 5232 would have repealed this toll bond authorization for the Interstate 405/State Route 167 Express Toll Lanes and the Puget Sound Gateway facility. This would have put the critical improvements to the Canyon Park life science cluster at risk.  We worked with a coalition of suburban municipal governments and chambers of commerce to oppose the bill.  SB 5232 passed the Senate but died in the House.

State:

Vaccine Eligibility — LSW wrote a letter and worked with the State Department of Health to ensure that life science employees that were working in healthcare facilities or working with COVID samples were prioritized in Phase 1a to receive access to vaccines along with healthcare workers.  

Federal:

Breakthrough Medical Device Legislation / CMS MCIT Rule Finalized and then Put on Hold — It has been a long journey working with Rep. DelBene, AdvaMed, MDMA, and CMS to provide a coverage and reimbursement pathway for innovative medical devices at CMS.  After years of work on the issue, CMS published a final Medicare Coverage of Innovative Technology (MCIT) rule in the Federal Register on Jan. 14. The rule provided a new streamlined coverage and payment pathway for FDA-designated breakthrough medical devices (and diagnostics).

Since the rule was finalized in the last few weeks of the Trump Administration, it was subject to a review by the incoming Administration.  Despite a letter from a number of House Democrats—led by our own Rep. DelBene—urging CMS to keep the rule in place, the Biden Administration decided to put the rule on hold until Dec. 15, 2021.  CMS has expressed a variety of concerns with the current rule, which will now need to be worked out before any new rule is implemented.

Local:

Bothell/Canyon Park Redevelopment — After several years of work to develop a plan for modernizing Canyon Park, which is home to a thriving life science cluster, the Bothell City Council voted unanimously to approve the plan and associated zoning changes. Life Science Washington co-hosted several meetings with the city to allow local companies to provide input to the plan. That input was crucial to the development and direction of the final plan, which makes growing the life science cluster a central element of the plan. LSW was also successful in petitioning the city to not place new height limits on life science buildings in the Canyon Park business park, which could have restricted the ability of companies to expand. With the new regulations in place, the city will now turn to addressing transportation and other issues. Details will matter. The city wants to partner with local companies; however, they tend to hear more from local retailers than life science companies that often have very different needs.  So, if you have facilities in Canyon Park, please engage with LSW and the City of Bothell to ensure that the needs of life science companies in the area are heard.

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Medical Device Tax Repealed! – After almost a decade of advocacy by Life Science Washington and our coalition partners, the final bipartisan budget package that was signed by the President on December 20th permanently repealed the 2.3% medical device tax.

This repeal has been a top priority of Life Science Washington since it was originally enacted in 2010 as part of the Affordable Care Act.  LSW participated in a comprehensive, multi-year advocacy campaign that was closely coordinated with our national partners AdvaMed, MDMA and MITA.  Our efforts included continual direct engagement with our Congressional delegation on the issue through a combination of regular meetings with Congressional staff in Washington, DC, organizing LSW sign-on letters to our delegation, hosting CEO Roundtables on the issue with members of Congress, and facilitating local company tours.

This win is a reminder that big public policy changes often take years to achieve; it also shows what can be accomplished when we all work together to advocate for a clear, consistent policy change year after year.

Consumer Data Privacy (2SSB 6281) – Consumer data privacy was a primary focus of the legislature this year.  The primary target of these bills was to give consumers access to review, modify and control their person information. To ensure that healthcare data was treated effectively in the legislation, we brought together a healthcare data privacy coalition that included: Life Science Washington, the Washington Hospital Association, AdvaMed, BIO, and PhRMA to present a coordinated voice on healthcare privacy issues.  The approach worked well.  After seeing a flurry of privacy bills introduced with different areas of focus, the primary privacy bill for the session was Senator Carlyle’s 2SSB 6281.

The coalition’s legal experts developed legislative language that would align state policy with existing healthcare regulations and exempt healthcare and life science organizations that comply with HIPPA.  We were able to get all of the language that we requested included in the bill.  California passed privacy legislation last year, which had some problems that needed to be fixed.  Having learned from the California experience, our coalition  believes that the healthcare language included in 6281 is good enough to serve as model legislation going forward.

Biosimilars Prescriber Notification Sunset (HB2251) – This is technical legislation that extends the interchangeable biological product notification requirement (to enable the continued prescription of biosimilars) from August 1, 2020, until August 1, 2025. It passed both chambers unanimously and was signed by Governor Inslee on March 18^th.

Gene Editing Study Bill (HB2273) – Gene editing is not well understood and the specter of ‘designer babies’ caused some members to call for regulating genome editing.  This bill was introduced to open a dialogue on the topic.  We worked with the sponsor to strengthen the bill and we testified on the topic. This provided an opportunity to educate legislators about the incredible potential of gene editing technology and the fact that the FDA and other institutions have effective frameworks in place to ensure the ethical development of gene editing technology and medicines in the United States.

Washington’s Cancer Research Endowment (CARE Fund) – Due to the CARE Fund’s unique funding model, the CARE fund needed new budget authority and supplemental funding this year.  The Governor’s budget fixed the budgeting problems and the final budget appropriated an additional $7.5 million for the CARE fund.

Career Connect Washington Funding – Career Connect Washington, which works with employers and industry groups including Life Science Washington to develop career pathways for high school students, received an additional $1.5 million in supplemental funding. 

Science & Technology Caucus Briefing – Life Science Washington organized a briefing for the State Legislature’s Science & Technology Caucus on Washington’s life science industry.  We kicked-off the presentation with LSW’s new video, which was followed by a panel discussion with Leslie Alexandre and Life Science Washington Board Members Margaret McCormick and Nancy Whiting who helped legislators better understand what it takes to bring a new therapy to market as well as how tax policy impacts life science companies.

WSU Vancouver Life Sciences Building (Design) – The new building received $4 million for design.

King County Payroll Tax (Head Tax) Authority (HB2948) – Legislation was introduced that would allow King county to collect a .25% payroll tax on employees with salaries above $150,000 to pay for affordable housing and homeless programs.  Small businesses with less than 50 employees and less than $3 million in revenues were exempted.   The bill was supported by the business group Challenge Seattle and a number of large employers in the region who believed that a small county-wide tax was a better approach than a more detrimental payroll tax from the City of Seattle.  We reminded legislators that life science organizations conducting long-term research don’t have the same ability to pay additional taxes as companies like Amazon, Microsoft, and Expedia.   After several conversations with bill sponsors, we were told that non-profit research institutes would be exempted, but the bill failed to advance to out of committee.  So, a new draft was never circulated.

Battery Stewardship Program (HB 2496) – Often, we have to play defense to make sure member companies aren’t inadvertently impacted by legislation targeting others.  That was the case with a battery recycling bill aimed at having battery manufacturers take responsibility for keeping batteries out of landfills.  Without an exemption, medical device manufacturers that produce devices with batteries in them, would have been responsible for setting up complicated, expensive, closed loop (take back) programs to collect the batteries in their devices.  So, we worked with AdvaMed to ensure that medical devices were exempted from the bill.

Life Science Exemptions Included in Gov. Inslee’s “Stay Home, Stay Safe” Order – Ever since the Bay Area issued the first Shelter-In-Place order, Life Science Washington has been in direct contact with the Governor’s office and other local jurisdictions to ensure the continuity of operations for Life Science Washington members as Shelter-In-Place directives were issued.

Gov. Inslee’s initial“Stay Home, Stay Healthy”order included a number of critical exemptions that Life Science Washington had requested.  The original essential businesses list provides for continuity of operations for life science operations, manufacturing, and the medical supply chain. It also provides for continuation of construction projects, as well as essential building maintenance, operations, and security.  

We felt these exemptions covered most of the essential operations that life science companies need to ensure continuity of operations.  However, due a lack of clarity in the order, we also filed a petition to explicitly include research, development, and clinical trial activities, which were included in the Governor’s March 31 guidance.

Bothell/Canyon Park Zoning & Redevelopment – On Thursday, February 27^th Life Science Washington and Seattle Genetics hosted a work session with the City of Bothell to discuss the city’s Canyon Park Visioning plan to modernize and redevelop the Canyon Park business district. 

After successfully developing downtown Bothell, the City of Bothell is now turning its focus to the Canyon Park business district.  The city has spent over a year laying the foundation for updating the Canyon Park district.  Given the number of life science businesses in Canyon Park they asked us to convene a meeting specifically with local biotech and medical device companies.

The city’s visioning plan is an important opportunity to help shape the future of the Canyon Park business district into a vibrant neighborhood with new amenities that help attract and retain talent, provide transportation connections that make it easier for employees to get to work and local amenities, and provide linkages to UW-Bothell and other regional educational institutions, while ensuring space for companies to expand and the next generation of start-ups to get a foothold.

During the meeting, it became clear that local life science companies had very different goals for the business park than the city had heard from local real estate representatives that were more concerned with reducing costs than providing amenities.

Outcomes from the meeting included a discussion of possibly raising building height limits, keeping current industrial areas zoned industrial, finding ways to locate additional amenities deeper into the business park, and the need to provide transportation from the I-405 Bus Rapid Transit stop into the business park.
HCA Emerging Therapies Working Group – Last fall, Washington’s Healthcare Authority (HCA) convened an emerging therapies working group ostensibly to think about how to handle and fund new “emerging therapies” such as gene therapies.  After telling the legislature that they would host an open stakeholder dialogue on the issue, the HCA  created a closed-to-the public internal panel that primarily focused on high cost drugs.  To remedy this situation, we successfully fought to have the HCA open some of the meetings to the public, we testified at the fall meeting, and we coordinated with BIO to provide testimony at the most recent meeting.  After dismissing industry for much of the process, the workgroup did engage with industry at the last meeting and has asked for additional input going forward.

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