In Washington State, the governor plays an important role in how the laws are enacted. After the state legislature, made up of the House of Representatives and the Senate, passes a bill, it does not automatically become a law. First, they must go to the governor. The governor has the power to approve or reject the bill. This power to say “no” is called a veto.

Let us take a closer look at the types of vetoes a Washington governor can use and how the legislature can respond if they disagree.

Three Types of Vetoes
1. Total Veto

• This is when the governor rejected the entire bill. If the governor believes that the entire bill is a bad idea or needs major changes, they can use the total veto. The bill will not become a law unless the legislature overrides the veto.

2. Partial Veto (also called Line-Item Veto)

• This is only allowed for budget bills and bills involving spending. The governor can cross out specific lines or parts of the bill, such as a single item or dollar amount, while still approving the remainder. This gives the governor more control over how much money is spent.

3. Section Veto

• In Washington, for non-budget bills, the governor can veto an entire section of a billif that section can stand alone and does not affect the rest. This is a way to fix one part of the law without rejecting everything.

Can the Legislature Override a Veto?
Yes, the Washington State Legislature has the power to override a veto—but it’s not easy.

To override any type of veto (total, partial, or section), both the House and Senate must vote again on the bill. This time, two-thirds of the vote was taken in each chamber. This means that two-thirds of all members must agree to pass the bill again, despite the governor’s objection.
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For example:

• In the House, with 98 members, at least 66 must vote yes.
• In the Senate, with 49 members, at least 33 must vote yes.
If both chambers reach the two-thirds mark, the veto is overridden and the bill becomes law without the governor’s approval.

Why Does the Veto Power Matter?

The veto provides the governor with a way to check the power of the legislature. It can stop laws that may not be fully considered or that might not serve the public well. However, the override process also gives the legislature a chance to stand firm if they strongly believe that law is needed.

This back-and-forth helps balance power between the branches of the state government. It encourages lawmakers and the governor to work together to find the best solutions for the people of Washington.

Congratulations to Blueberry Bridal Boutique on their groundbreaking ceremony at their future home at Vista Field! Check out photos from the celebration below.

Congratulations to HAPO Community Credit Union on the ribbon cutting and grand opening for their new location in Prosser! You can visit the beautiful new Financial Center at 580 Wine Country Road. Check out the photos and video from the celebration below.

If you own a business in Washington State, there’s a good chance you’ve felt the sting of the Business & Occupation (B&O) tax. It’s a tax on your business’s gross receipts—not your profit—and it can really add up. But there’s been one big silver lining: you can usually deduct that tax on your federal return through something called B-SALT.

Now, federal lawmakers are thinking about taking that benefit away—or at least cutting it back. Here’s what you need to know about B-SALT, why it matters, and what changes are on the table in Washington, D.C.

What Is B-SALT?

B-SALT stands for Business State And Local Tax deductions. It's a federal rule that lets businesses deduct the state and local taxes they pay—like income taxes, gross receipts taxes (like Washington’s B&O tax), and property taxes—from their federal taxable income.

This deduction helps lower the amount of federal taxes businesses owe. Right now, there is no limit on how much businesses can deduct. This is different from the SALT cap for individuals, who can only deduct up to $10,000 in state and local taxes on their federal tax return.

For Washington businesses, B-SALT is especially helpful. Since Washington doesn’t have a personal or corporate income tax, businesses rely on the ability to deduct the B&O tax at the federal level to save money.

What’s Happening in Congress?

In 2025, Congress is looking closely at federal tax laws as part of a broader push for tax reform. And one target is the B-SALT deduction.

Lawmakers are considering a few major changes:
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   • Eliminating B-SALT deductions completely. Some proposals suggest that businesses should no longer be able to deduct state and local taxes at all. This would especially hurt businesses in states like Washington that rely on B&O and other local taxes.
   • Limiting deductions for certain types of businesses. Congress might let C-corporations keep the deduction but take it away—or limit it—for pass-through businesses like LLCs, S corporations, and partnerships. These are the types of businesses most small companies use.
   • Closing state workaround programs. Many states have created "Pass-Through Entity" tax programs to help small businesses get around the $10,000 SALT cap. Federal lawmakers are now thinking about shutting those programs down, which could indirectly reduce or eliminate B-SALT benefits for small business owners.

All of this is still being debated, but the direction is clear: federal tax writers are looking for ways to raise revenue, and the B-SALT deduction is a tempting place to start.

What This Means for Washington Businesses

If any of these federal changes pass, it could mean higher federal taxes for thousands of Washington businesses. Because the B&O tax hits nearly every business, losing the federal deduction would be a serious financial blow. For many small businesses that already operate on thin margins, this could mean less cash flow, reduced hiring, or even tough decisions about whether to expand—or shrink.

Even if you're not directly involved in policy or politics, these changes could affect your business in real dollars.

What Can Business Owners Do?

First, it’s important to stay informed. Congress is expected to keep debating these issues throughout the year, and the final outcome could look very different from today’s proposals.

Second, talk to your tax advisor. Understanding how these changes might affect your specific business structure—whether you’re an LLC, S corp, or C corp—is key to making smart financial plans.

Finally, if you want to have a voice in this process, consider contacting your congressional representatives or joining local business advocacy groups. Business owners across the country are already speaking up, and your story could help lawmakers understand what’s at stake.

The B-SALT deduction has quietly helped many Washington businesses lower their federal tax bills. But that might be about to change. With new proposals in Congress aiming to limit or eliminate this benefit, now is the time to get informed, talk to your tax advisor, and be ready for what’s next.

The Association of Washington Business (AWB) has released a comprehensive report titled "Trade in Washington," highlighting the critical role of international trade in the state's economy. The report underscores how Washington's strategic location, robust infrastructure, and diverse industries contribute to its status as a leading trade hub. It emphasizes the importance of maintaining and expanding trade relationships to ensure continued economic growth and competitiveness. 

Washington's economy is deeply intertwined with global markets, with key sectors such as aerospace, agriculture, and technology relying heavily on exports. The report details how trade supports thousands of jobs across the state and contributes significantly to the state's GDP. It also discusses the challenges and opportunities presented by evolving trade policies and global economic shifts.
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In conclusion, the AWB's "Trade in Washington" report serves as a vital resource for understanding the state's economic landscape. It calls for proactive measures to strengthen trade infrastructure, advocate for favorable trade policies, and support businesses in navigating international markets. By doing so, Washington can continue to thrive as a dynamic participant in the global economy. 

​You can read the full report here. 

We’re looking for exclusive sponsors for two exciting Chamber events — the brand-new Mega Mixer and the return of our popular Small Business Resource Fair.

Why Sponsor?
Get your brand in front of business professionals, entrepreneurs, and key community leaders. These events are built for connection, visibility, and creating meaningful local impact.

Mega Mixer – $10,000 (Exclusive Sponsorship - Limited to 1)
A fast-paced, speed-networking event where attendees connect in 60-second rotations. Designed for energy, interaction, and high visibility. The Mega Mixer will be held twice in 2025, and your exclusive sponsorship includes naming rights, premium branding, booth presence, and recognition in all event marketing and promotions.

Small Business Resource Fair – $6,000 (Exclusive Sponsorship - Limited to 1)
Back by popular demand, the Small Business Resource Fair is a one-stop destination for small business owners to discover tools, resources, and services to help them grow. Also being held twice in 2025, this sponsorship includes naming rights, exhibitor booth, and comprehensive promotion across both events.

These sponsorships are exclusive – only one available per event. When they’re gone, they’re gone!

Interested in locking in your spot? Reach out today to secure your sponsorship and elevate your brand. Contact Ricki Sosebee, Events Director, at [email protected] or 509.491.3230.

Congratulations to Lucky Leaf on their latest location - 528 W. Clark St. in Downtown Pasco!

​A Simple Guide to the Washington State Legislative Process

In Washington State, legislative proposals may originate in either the House of Representatives or Senate. However, for a proposal to be enacted into law, it must receive approval from both the legislative chambers. This process can become complex, particularly when one chamber amends a proposal already passed by the other chamber.

The following outlines the process that occurs when a bill is amended in the second chamber, the subsequent response of the original chamber, and the procedures undertaken to reconcile these differences.

Step 1: Passage of a Bill in One Legislative Chamber 

Consider a scenario where a bill is introduced in the House of Representatives. It undergoes a series of committee hearings and debates culminating in a vote on the floor of the house. Upon successful passage, the bill is forwarded to the senate for further consideration.

Step 2: Modifications by the Second Chamber 

Upon reaching the Senate, the bill undergoes a comparable procedure: it is assigned to a committee for discussion and a potential amendment. Subsequently, it is presented to the full senate for a vote.  If the Senate approves the bill without alterations, it proceeds directly to the governor for ratification. 

Conversely, if the Senate incorporates amendments, the bill must be returned to the House of Representatives, the chamber of its origin, for further consideration.

Step 3: Review of Amendments by the Original Chamber

Following the modification of the bill, the original chamber, in this instance, the House, must determine whether to accept the amendments proposed by the Senate. The House is presented with two options:

• Concur (agree): Should the House concur with all the amendments introduced by the Senate, a vote to "concur" is cast. This concurrence signifies the acceptance of the revised bill, which is then deemed finalized and forwarded to the governor for signing.

• Do not concur (disagree): Conversely, if the House does not concur with the Senate's amendments, a vote to "not concur" is cast. In such a scenario, the bill cannot progress until both chambers reach agreement on the final version.

Step 4: Establishment of a Conference Committee

In instances where the originating chamber rejects amendments, a conference committee is typically required. This committee is a select group comprising members from both the House and the Senate tasked with reconciling the discrepancies between the two versions of the bill.

The conference committee convenes privately to negotiate and reach a compromise. Upon reaching an agreement, they draft a conference report that encapsulates the final version of the bill.

Step 5: Final Approval of the Compromise Bill

Subsequently, the conference report is submitted to both the House and the Senate for a conclusive vote. At this juncture, no further modifications are permissible. Both chambers are required to approve the report in its entirety, as presented. 

If both the House and Senate endorse the conference report, the bill is forwarded to the governor, who may either enact it into law or exercise a veto. Conversely, if either chamber rejects the report, the bill is rendered unsuccessful and does not become a law.
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Significance of the Process

This procedural framework ensures that both legislative chambers play an equitable role in determining the final version of the law. It also facilitates a thorough examination of any amendments and fosters collaboration among lawmakers to achieve consensus.

 Although the process may be protracted, it is structured to promote compromise and comprehensive scrutiny before the enactment of a bill into law.

For those interested in tracking the progression of bills through the Washington State Legislature, the official website can be accessed at: https://leg.wa.gov/learn-and-participate/
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The Tri-City Regional Chamber of Commerce (TCRCC) is pleased to announce the promotion of Austin Regimbal to the position of Vice President. Regimbal, who has been with the Chamber since 2017, previously served as the Marketing & Communications Director.

In his new role, Regimbal will oversee strategic initiatives and community outreach efforts, in addition to marketing and communications responsibilities. His leadership and innovative approach have been instrumental in advancing the Chamber's mission to promote regional prosperity and strengthen member businesses.

"Austin has consistently demonstrated exceptional dedication and vision in his work," said Lori Mattson, TCRCC President & CEO. "His promotion to Vice President is a testament to his hard work and the positive impact he has made on our organization and the Tri-Cities community."

Regimbal, a native of Richland, brings a wealth of experience and a deep commitment to the local business community. He is a graduate of the U.S. Chamber of Commerce Institute for Organization Management and the Western Association of Chamber Executives (W.A.C.E.) Academy program for chamber professionals. Regimbal also served on the W.A.C.E. Emerging Leaders Council and was presented with a 2024 Young Professionals Award from the Tri-Cities Area Journal of Business.

"I am honored to take on this new role and continue working with our talented team to support the growth and success of our members," said Regimbal. "I look forward to furthering our efforts to make the Tri-Cities a thriving business hub."