Senate hearing weighs ban on lease clauses that bar lawsuits, NDAs and force arbitration

The Senate Housing Committee heard public testimony on Senate Bill 5313, a proposal to expand the list of provisions landlords cannot require in residential rental agreements. The measure, sponsored by Sen. Jamie Peterson (43rd District), would forbid landlords from making tenants waive the right to bring or join lawsuits, requiring nondisclosure of lease or rent terms, forcing arbitration unless the landlord pays all arbitration costs, and requiring tenants to accept and pay for nonessential third‑party services without a fee‑free opt‑out.

Bill Fosbury, counsel to the committee, told members the bill builds on the existing Residential Landlord‑Tenant Act by adding the four prohibited areas. He described the additions as: a ban on clauses that require a tenant to waive any right to bring or join a lawsuit; a ban on nondisclosure agreements tied to the lease or offer; a ban on mandatory arbitration unless the landlord pays the entire cost; and a ban on obligating tenants to buy nonessential services without a fee‑free opt‑out.

Senator Jamie Peterson said the bill grew from reporting about tenants who discovered they had signed away legal rights and from constituent complaints about fees for services such as ‘‘valet garbage’’—a door‑to‑door trash pickup service some tenants reported being required to buy. Peterson framed the arbitration provision as protecting access to dispute resolution for low‑income tenants: "If you required that in a lease ... what it would essentially mean for a lot of tenants is that they couldn't pursue any disputes with their landlords," he said.

Tenant advocates supported the bill. Michelle Thomas of the Washington Low Income Housing Alliance said renters rarely negotiate leases and asked the committee to add manufactured‑home lot renters to the bill's coverage and to add a jury‑trial waiver prohibition to prevent blanket waiver clauses. Emily Rosenzweig and other tenants described experiences they said show how third‑party services can shift landlord operational costs onto renters and whether those services perform as promised.

Industry representatives urged amendment rather than a flat ban. Carter Nelson of the Washington Multifamily Housing Association said valet trash services raise recycling rates and safety at properties when participation is universal and urged deletion of an opt‑out provision in favor of strong disclosure requirements. Rich Stein of Valley Living and other service providers said they support clear fee disclosure but opposed rules that would prohibit building‑level service models.

Opponents and industry witnesses argued the draft's narrow definition of "nonessential" could inadvertently exclude services some owners consider critical for operations, such as rent reporting to credit bureaus or insurance offerings, and could increase landlords' base rents if costs cannot be recovered through program fees. Testimony reflected broad agreement on banning NDAs and one‑sided arbitration clauses, while the nonessential‑services opt‑out provision drew the most contention.

The committee took testimony from proponents and opponents and did not vote that day. Several witnesses asked the committee to refine definitions and to consider targeted disclosure requirements as an alternative to an opt‑out prohibition.