There are only three weeks left in the regular session and the scramble has begun to get out on time (and the rumors of special session have started). Last Friday, the House passed their Operating, Capital and Transportation versions over to the Senate. This week, the Senate passed their versions of the operating and transportation budgets back over to the House and now the fun begins as budget negotiators for each budget work to reconcile the differences. The Senate version of the operating budget picked up some Republican votes because the underlying spending did not require any tax increases. Wednesday marked the cut off for bills to be out of their opposite house policy committees. The fiscal committees now have until Tuesday, April 9th to move bills that spend money on to the floor of their opposite house – unless they are referenced in one of budget versions making them “Necessary to Implement the Budget” or NTIB.
This week and last week also marked hearings for the first bills in the wave of bills from the House raising revenue to fund their version of the budget. HB 2158, which raises the B&O tax for certain service businesses to fund workforce training, apprenticeship and career connected learning programs, had a hearing last Friday. On Thursday, the House Finance Committee heard HB 2156, which creates a 9.9% capital gains tax on certain earnings over $100,000 for single filers and $200,000 for joint filers. The bill also creates a graduated real estate excise tax which would lower the rate for low value property by create a graduated increase for properties valued over $1 million. The money from this tax increase would fund K-12 educaton and behavioral health programs. The House budget depends on these revenue increases to balance.
The Senate will be hearing SB 5961 on Monday, April 8th. This bill will create an 8.9% capital gains tax on earnings above $250,000. This money would fund off budget programs such as a “Working Families Tax Credit,” small business tax reductions, and removal of sales tax for diapers and OTC medication. As stated above, the spending side of this bill is not included in the operating budget that passed the Senate. It is not known if the votes exist to pass any of the revenue packages in either house. Regardless, if a capital gains tax passes, it is likely to end up being challenged in court.
The Senate Ways and Means Committee also passed (at 1:30 in the morning on Wednesday) a controversial bill to increase the property tax levy lid (SB 5313) Many believe this will force the state back into an education funding system that will favor richer school districts over poor – and will force the state back into the same situation that led to the McCleary battles. As the bill was being worked on – and to get votes for the budget that passed just before – two amendments passed that were opposed by the Washington Education Association. One amendment would limit the collective bargaining ability for teachers and the second would allow charter schools to collect Levy Equalization funds. It is uncertain what the outcome of this bill will be on the Senate floor. The House Appropriations Committee passed their version (HB 2140) on Saturday evening without these two provisions.
This week’s SSCCLC priorities:
HB 2132 – Tolling Authorization for the Puget Sound Gateway and 405: This bill is up for a vote in the House Transportation Committee. Many legislators, particularly Republicans, are reluctant to approve tolling authorization. We need to keep up the grassroots push on legislators to pass this bill. Without it the final pieces of funding for the Gateway project will not be available.
E2SSB 5327 – Career Connected Learning: We need to keep encouraging legislators to pass this bill using existing funds, not a B&O tax surcharge or other new revenue. The dollars to connect career and technical learning in our communities is available this year and should be utilized. The economic benefit of this bill will be clearly seen in the future of our state.
ESB 5334 – Condo Liability/Common Interest Ownership: In one of the first housing victories this year, ESB 5334 passed the Senate and is now on its way to the Governor’s desk. This bill modifies the implied warranties for construction of a condominium under the Washington Uniform Common Interest Ownership Act (WUCIOA) by removing the requirement that the condominium be constructed in accordance with all laws and instead requiring the building be constructed in accordance with applicable building codes. Requires a purchaser to prove an alleged breach of warranty has or will cause physical damage, materially impairs the performance of some function, or presents an unreasonable safety risk.
Appropriations (House) - HHR A, JLOB - 4/8 @ 9:00am
· E2SSB 5116 - Exec Session - Supporting Washington's clean energy economy and transitioning to a clean, affordable, and reliable energy future. (Concerns/High)
· 2SSB 5489 - Exec Session - Establishing a healthy environment for all by addressing environmental health disparities. (Oppose/High)
· ESSB 5526 - Exec Session - Increasing the availability of quality, affordable health coverage in the individual market. (Concerns/Medium)
Transportation (House) - HHR B, JLOB - 4/8 @ 10:00am
· HB 2132 - Exec Session - Addressing the completion of the planned construction of various facilities, by advancing construction, issuing bonds, and tolling portions of Interstate 405, state route number 167, and state route number 509. (Support/High)
Ways & Means (Senate) - SHR 4, - 4/8 @ 1:30pm
· SB 5961 - Public Hearing - Improving the equity and sustainability of Washington's tax structure. (Hearing is on the Proposed Substitute.) (Oppose/High)
· SB 5998 - Public Hearing - Establishing a graduated real estate excise tax. (Oppose/High)
· SB 5997 - Public Hearing - Eliminating or narrowing certain tax preferences to increase state revenue for essential public services. (Oppose/High)
· SB 5996 - Public Hearing - Funding fire prevention and suppression activities. (Oppose/High)
· SB 5999 - Public Hearing - Making expenditures from the budget stabilization account for public employer unfunded actuarially accrued liabilities. (Neutral/High)
· E2SHB 1523 - Exec Session - Increasing the availability of quality, affordable health coverage in the individual market. (Concerns/Medium)
Bill Details |
Status |
Sponsor |
Position |
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2SHB 1087 (SSB 5331) |
Long-term services & support |
S Ways & Means |
Jinkins |
Concerns |
Concerning long-term services and supports. Puts in place a new 0.58 percent payroll tax on all employees to fund this program. |
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SHB 1102 (SSB 5134) |
Capital budget 2019-2021 |
S 2nd Reading |
Tharinger |
Support |
Concerning the capital budget. |
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ESHB 1109 (SB 5153) |
Operating budget |
S Passed 3rd |
Ormsby |
Neutral |
Making 2019-2021 biennium operating appropriations. |
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E2SHB 1110 (SB 5412) |
Greenhouse gas/transp. fuels |
S Transportation |
Fitzgibbon |
Oppose |
Reducing the greenhouse gas emissions associated with transportation fuels. |
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ESHB 1160 (SSB 5214) |
Transportation budget |
S Passed 3rd |
Fey |
Support |
Making transportation appropriations for the 2019-2021 fiscal biennium. |
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E3SHB 1257 (2SSB 5293) |
Energy efficiency |
S Ways & Means |
Doglio |
Concerns |
Concerning energy efficiency. |
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2SHB 1424 (SB 5069) |
CTE course equivalencies |
S Ways & Means |
Steele |
Support |
Concerning access to state career and technical course equivalencies. |
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Urban residential building |
S Ways & Means |
Fitzgibbon |
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Increasing urban residential building capacity. |
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HB 1948 (SSB 5862) |
Warehousing & manuf. jobs |
H Rules R |
Entenman |
Support |
Supporting warehousing and manufacturing job centers. |
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Construction completion |
H Trans |
Fey |
Support |
|
Addressing the completion of the planned construction of various facilities, by advancing construction, issuing bonds, and tolling portions of Interstate 405, state route number 167, and state route number 509. |
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K-12 education funding |
H Approps |
Sullivan |
Concerns |
|
Levy Lid Lif |
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Taxes on asset sales, profit |
H Finance |
Jinkins |
Oppose |
|
Enacts a 9.9% capital gains tax on gains above $100,000 for individuals and $200,000 for joint filers. Spends the money on K-12 education and behavioral health programs. Also includes a graduated real estate income tax. |
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Tax structure |
H Finance |
Tarleton |
Neutral |
|
Updating the Washington tax structure to address the needs of Washingtonians. |
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Workforce education |
H Finance |
Hansen |
Oppose |
|
Imposes a .3 surcharge on some service businesses and increases the B&O for some tech companies to 2.0% to create a workforce education investment to train Washington students for Washington jobs. |
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Budget stabilization account |
H Approps |
Ormsby |
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Making expenditures from the budget stabilization account for declared catastrophic events. |
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ESB 5008 (HB 1690) |
Short subdivisions |
H Rules R |
Palumbo |
|
Concerning short subdivisions. |
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E2SSB 5116 (2SHB 1211) |
Clean energy |
H Approps |
Carlyle |
Concerns |
Supporting Washington's clean energy economy and transitioning to a clean, affordable, and reliable energy future. There are significant concerns over the resulting cost increase for electricity as a result of this bill. Several "off ramps" have been included in the bill to measure economic impact. |
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K-12 education |
S Rules 2 |
Wellman |
|
|
Raises the property tax levy lid for school districts. |
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E2SSB 5327 (SHB 1336) |
Career connected learning |
H Approps |
Wellman |
Support |
Expanding career connected learning opportunities. |
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ESB 5334 (HB 1306) |
Common interest ownership |
H Passed 3rd |
Pedersen |
Support |
Concerning the Washington uniform common interest ownership act. - reduces liability for contractors who build condominiums |
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Environ. health disparities |
H Approps |
Salda?a |
Oppose |
|
Establishing a healthy environment for all by creating a definition of environmental justice, directing agencies to address environmental health disparities, and creating a task force. |
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WA tax structure |
S Ways & Means |
Salda?a |
Oppose |
|
Capital Gains Tax bill -- enacts an 8.9% capital gains tax on earnings above $250,000. Spends the money on small business tax reductions, an increase in the working families tax credit and elimination of sales tax for diapers and OTC medications. |
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Transportation funding bonds |
S Rules 2 |
Hobbs |
Neutral |
|
Authorizing bonds for transportation funding. |
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Transportation funding |
S Ways & Means |
Hobbs |
Concerns |
|
Concerning transportation funding. |
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Additive trans funding |
S Rules 2 |
Hobbs |
Concerns |
|
Concerning additive transportation funding and appropriations. |
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Grad. real estate excise tax |
S Ways & Means |
Rolfes |
Concerns |
|
Increasing funding for education by establishing a graduated real estate excise tax. |
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Business and occupation tax |
S Ways & Means |
Palumbo |
Concerns |
|
Concerning business and occupation tax simplification and relief -- increases the B&O rates for retailing, wholesaling and manufacturing. But also increases deductions for small business. |
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Fires/prevent, suppress |
S Ways & Means |
Van De Wege |
Oppose |
|
Brief Summary of Bill Increases property and casualty insurance premiums from 2.0 to 2.52 percent. Allocates the revenue raised to the new Wildfire Prevention and Suppression Account. ?Prioritizes expenditures from the Wildfire Prevention and Suppression account in the following order: (1) emergency fire fighting, (2) preparedness, (3) fire suppression activities of agencies other than DNR, (4) fire prevention, and (5) forest health activities. |
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Tax preferences |
S Ways & Means |
Rolfes |
Oppose |
|
Eliminating or narrowing certain tax preferences to increase state revenue for essential public services. |
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|
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Grad. real estate excise tax |
S Ways & Means |
Nguyen |
Oppose |
|
Establishing a graduated real estate excise tax. |
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Unfunded actuarial liability |
S Ways & Means |
Braun |
Neutral |
|
Making expenditures from the budget stabilization account for public employer unfunded actuarially accrued liabilities. |
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Cigarette tax |
S Ways & Means |
Keiser |
Neutral |
|
Increasing the tax on cigarettes. |
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Bill Details |
Status |
Sponsor |
Position |
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EHB 1219 (SB 5195) |
Real estate taxes/housing |
S 2nd Reading |
Walen |
Concerns |
Providing cities and counties authority to use real estate excise taxes to support affordable housing and homelessness projects. |
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SHB 1377 (SSB 5358) |
Housing dev./religious orgs. |
S Rules 2 |
Walen |
|
Concerning affordable housing development on religious organization property. |
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SHB 1399 (SSB 5449) |
Paid family & medical leave |
Del to Gov |
Robinson |
Neutral |
Concerning paid family and medical leave. |
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Municipal B&O tax apportion. |
S Rules 2 |
Frame |
Support |
|
Simplifying the administration of municipal business and occupation tax apportionment. |
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SHB 1406 (SB 5646) |
Affordable housing/sales tax |
S Ways & Means |
Robinson |
|
Encouraging investments in affordable and supportive housing. |
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ESHB 1450 (ESSB 5478) |
Noncompetition covenants |
S Rules 2 |
Stanford |
Concerns |
Concerning restraints on persons engaging in lawful professions, trades, or businesses. |
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|
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E2SHB 1523 (ESSB 5526) |
Individual health ins market |
S Ways & Means |
Cody |
Concerns |
Increasing the availability of quality, affordable health coverage in the individual market. |
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HB 1568 (SB 5570) |
Port district worker dev. |
S Rules 2 |
Chapman |
Support |
Concerning port district worker development and occupational training programs. |
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Wage and salary information |
S Rules 2 |
Dolan |
Concerns |
|
Concerning wage and salary information. -- primary reason for bill was to ensure that employers could not require applicants to disclose prior salary history on both new hires and promotions. |
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SHB 1798 (SB 5870) |
Short-term rentals |
S Rules 2 |
Ryu |
|
Concerning short-term rentals. |
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HB 1841 (SB 5877) |
Crew size on certain trains |
S Rules 2 |
Riccelli |
Concerns |
Establishing minimum crew size on certain trains. |
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Green transportation |
H Finance |
Fey |
Concerns |
|
Advancing green transportation adoption. |
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Transportation revenue |
H Approps |
Shea |
|
|
Using existing revenue sources for transportation purposes. |
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HB 2148 (SB 5989) |
Data centers tax preference |
H Finance |
Springer |
Support |
Providing a tax preference for rural and nonrural data centers. |
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Tiny houses |
H Rules R |
Zeiger |
|
|
Concerning tiny houses. |
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ESSB 5478 (ESHB 1450) |
Noncompetition covenants |
H 2nd Reading |
Liias |
Concerns |
Concerning restraints on persons engaging in lawful professions, trades, or businesses. |
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|
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ESSB 5526 (E2SHB 1523) |
Individual health ins market |
H Approps |
Frockt |
Concerns |
Brief Summary of Engrossed Substitute Bill (As Amended by Committee) ?Requires the Washington Health Benefit Exchange to develop standardized health plans. ?Requires the Health Care Authority to contract with health carriers to offer standardized qualified health plans. ?Requires the Health Care Authority to develop a plan for premium subsidies for individuals purchasing coverage on the Washington Health Benefit Exchange. ?Requires the Insurance Commissioner to submit an annual report on the number of health plans available per county on the individual market. |
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SSB 5739 (HB 1790) |
Housing/urban growth areas |
H Finance |
Sheldon |
|
Promoting affordable housing in unincorporated areas of rural counties within urban growth areas. |
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ESSB 5746 (SHB 1834) |
Low-income homeownership |
H Cap Budget |
Salda?a |
|
Providing for adequate provisions for low-income homeownership opportunities. |
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ESSB 5812 (SHB 1797) |
Accessory dwelling units |
H Rules R |
Palumbo |
|
Concerning local governments planning and zoning for accessory dwelling units. |
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SB 5989 (HB 2148) |
Data centers tax preference |
S Ways & Means |
Palumbo |
|
Providing a tax preference for rural and nonrural data centers. |
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|
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B&O tax increase approval |
S Ways & Means |
Palumbo |
Support |
|
Amending the Constitution to require a supermajority vote of the legislature or voter approval to increase state business and occupation taxes. |
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No bills.