2025 LSW Legislative Agenda

Life Science Washington (LSW) is expecting a busy session given the current state budget situation and several tax proposals that would negatively impact the life science industry. Based on conversations with legislators and advocacy partners over the summer, we hope to be to avoid legislation on several contentious issues this session including 340B, expansion of the Prescription Drug Affordability Board (PDAB), and vaccines.  However, there is still a robust slate of issues that we will advocate for this session, which are discussed below.

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, LSW 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.