wa-law.org > bill > 2025-26 > HB 2162 > Original Bill
The legislature finds that the constitutional right to a lawyer is enshrined in the sixth amendment to the United States Constitution, and the United States supreme court case of Gideon v. Wainright. Washington state superior court criminal rule 3.1 further protects that right. The state supreme court issued Order 25700-A-1644 requiring new caseload standards for public defenders. The order states that the new caseload standards cannot exceed 47 felony cases for each full-time lawyer, and no more than 120 cases for each full-time lawyer handling misdemeanors, among similar requirements for those handling civil commitment cases. The court requires that these standards be met no later than 10 years from January 1, 2026.
The legislature also finds that the state as well as local governments have been struggling to ensure that public defense is adequately funded, even prior to the court's order. Prosecutors are also struggling with funding and filling positions within their offices. Public safety already demands that defendants have access to a free lawyer within days if they qualify, otherwise those defendants are released within days if no lawyer is assigned, as widely reported. Additionally, any delays in the criminal process because of a lack of access to defense or because prosecutors are overwhelmed is an injustice to victims, survivors, and the public at large, since criminal cases are brought on behalf of the public.
The legislature further finds that the court's order requires not only greater investment in public defense, but that funding alone will not train and retain the lawyers required to meet the necessary standards. Washington needs new lawyers to comply with the court's orders and the state needs assistance from those institutions tasked with training and hiring lawyers to meet these standards.
The legislature finds, as a matter of public interest, the legal profession needs a greater incentive to change and to direct more attention and focus to filling public interest roles in the offices of prosecutors and public defenders. New and innovative solutions are required to meet this challenge and to comply with the court's order. It is the legislature's intent to take such actions as necessary to build upon existing programs and incentives to do so. There are already existing public interest loan forgiveness programs offered at the federal level. Additional student loan relief and the prospect of paying off loans faster is a widely known and accepted form of incentive to engage professionals in public positions, including in the offices of prosecutors and public defenders.
Therefore, it is the intent of the legislature to address the court's order by creating a grant program to assist new lawyers working in prosecutorial and public defender roles with paying off student loans to encourage and retain lawyers in highly needed public service positions. In order to fund these grants, the legislature intends to offer a tax credit to law firms for contributions to the account that funds the grant program, thereby encouraging established lawyers to help cultivate the next generation of lawyers in the state of Washington.
The public interest law program is created. The purpose of the public interest law program is to provide lawyers who work in public service for a minimum of one year as a prosecutor or a public defender with annual student loan payoff grants up to $10,000 after each year of public service is complete. The program is funded through contributions from eligible law firms to the public interest law account. Eligible law firms receive a business and occupation tax credit equal to the amount contributed, up to $20,000 annually.
The council must administer the public interest law program and award grants. In administering the program, the council must:
Adopt necessary rules and guidelines, including creating an application and annual reapplication requirements;
Approve applicants and select eligible lawyers from the applicant pool;
Verify any information required by the council to be submitted by the applicant;
Accept contributions from law firms for the program; and
Publicize the program.
The council must begin developing the program no later than December 31, 2026, and issue the first grants, if funds are available, no later than July 1, 2027.
The council must provide an approved contribution receipt to each eligible law firm within 30 days of the firm's contribution to the fund to facilitate the implementation of the tax credit established in section 3 of this act. The receipt must indicate the amount contributed to the account by the law firm and provide a history of all previous contributions listed by contribution date.
The public interest law program account is created in the state treasury. All receipts from private contributions and state appropriations must be deposited into the account. Expenditures from the account may only be used for the operation of the public interest law program and grants to eligible lawyers.
Grants to eligible lawyers must be awarded as equal grants up to $10,000 to each eligible lawyer working as a prosecutor or in public defense, subject to the availability of funds.
By January 1, 2028, and every year thereafter, the council and the department of revenue must submit a joint report to the legislature that provides:
The ending account balance;
The number of:
Applicants and approved applicants;
Grants awarded and the average grant amounts;
Public defender and prosecutor grant recipients by category;
Participating law firms and their contribution amounts; and
Tax credits claimed.
Except as otherwise provided in this section, the following definitions apply:
"Applicant" means an eligible lawyer applying for a grant under the public interest law program established in this section.
"Contribution" means a cash contribution.
"Eligible law firm" means a law firm that contributes to the public interest law program account.
"Eligible lawyer" means a public lawyer serving as a prosecutor or a public defender contracted through the office of public defense for a minimum of a year who submits an approved application to the council for participation in the public interest law program.
"Law firm" means lawyers who practice law together in a partnership, professional corporation, sole proprietorship, limited liability company, or association; and lawyers employed in a legal services organization, or the legal department of a corporation or other organization.
This section expires December 31, 2038.
Beginning January 1, 2027, a credit is allowed against the tax imposed under this chapter for approved contributions that are made by a person to the public interest law program account for the public interest law program.
The credit allowed under this section is equal to the total amount of contributions made by a person to the public interest law program account up to a maximum of $20,000 per calendar year.
The credit claimed may not exceed the tax that would otherwise be due under this chapter. Refunds may not be granted in the place of credits. Any amount of credit earned under this section not claimed by the taxpayer in one calendar year may be carried forward for no more than one calendar year immediately following the year that the credit was earned.
No application is necessary for the tax credit. The person receiving the tax credit must keep records necessary for the department to verify eligibility under this section.
To claim a credit under this section, a person must electronically file with the department all returns, forms, the approved contribution receipt required in section 2 of this act, and other information the department requires in an electronic format as provided or approved by the department. Any return, form, or information required to be filed in an electronic format under this section is not filed until received by the department in an electronic format. As used in this section, "returns" has the same meaning as "return" in RCW 82.32.050.
Chapter 82.32 RCW applies to the administration of this section.
No credit may be earned for contributions made after December 31, 2038.
Except as otherwise provided in this section, the following definitions apply:
"Contribution" means a cash contribution.
"Eligible law firm" means a law firm that contributes to the public interest law program account.
"Eligible lawyer" means a public lawyer serving as a prosecutor or a public defender contracted through the office of public defense for a minimum of a year who submits an approved application to the council for participation in the public interest law program created in section 2 of this act.
"Law firm" means lawyers who practice law together in a partnership, professional corporation, sole proprietorship, limited liability company, or association; and lawyers employed in a legal services organization, or the legal department of a corporation or other organization.
"Person" means an eligible law firm.
"Public interest law program account" means the public interest law program account established in section 2 of this act.
This section expires December 31, 2038.
This section is the tax preference performance statement for the tax preference contained in section 3, chapter . . ., Laws of 2026 (section 3 of this act). This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
The legislature categorizes this tax preference as one intended to provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808(2)(e).
It is the legislature's specific public policy objective to provide reduced tax liability for law firms that contribute to the public interest law program account and public interest law program in order to alleviate the student loan burden on lawyers working as prosecutors, public defenders, and in public service.
If a review finds that after the effective date of this tax preference the number of participants in the public interest law program increases by any amount from the previous calendar year and the amount of grants distributed to eligible lawyers exceeds an annual average of $100,000 for the duration of the program's existence, then the legislature intends to extend the expiration date of this tax preference.
In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to any data collected by the state.