2020 Legislature Ends on Time as Crisis Looms
When the 2020 Legislature began on January 13, most thought it would be a fairly typical short, non-budget year session. Although it was fast moving with thousands of new bills and big ideas being discussed, as we hit the first cut off dates it was proving to be a fairly normal legislative session. The mid-February budget announcement brought a revenue forecast that showed over $1 billion extra in revenue coming in for the current biennium with nearly $4 billion extra for the four-year forecast. Things looked pretty good.
But things changed quickly as it became clear that a looming health crisis had moved across the ocean and our state became the epicenter of the first major wave of deaths attributed to COVID-19. This changed the dynamics in the Legislature – both in terms of budget negotiations and in terms of bills that were priorities. In the end, although the Legislature had planned to end on time anyway, the final days appeared to have a very different set of urgency.
The Legislature adjourned Sine Die on March 12, the constitutionally required day for adjournment. The next day Governor Jay Inslee announced the first of many major proclamations closing schools, shutting down businesses and urging residents to stay at home to battle the novel coronavirus. In addition, Governor Inslee announced an end to public bill signings.
Budget Highlights
The Operating Budget that finally passed the Legislature increased spending by 961 million for a total budget of $53.5 billion in 2019-21. This included increased spending for special education, homelessness and various programs for Children, Youth and Family Services. The final budget also included $100 million to cover costs associated with the coronavirus outbreak. The budget left a fairly high level in reserve – nearly $3.5 billion which will hopefully help our state better weather the coming budget crisis.
When the final budget was signed by Governor Inslee on April 3, he was forced to do some significant vetoes to ensure more money was available for the battle against COVID-19. The $445 million vetoed included projects that were directed at Department of Health – because the Governor felt that Department of Health needed to focus on the coronavirus fight instead. In addition, Inslee vetoed $100 million that was dedicated to additional K-12 school counselors.
The Capital and Transportation budgets did not suffer the same veto fate as the operating budget because the projects funded will provide jobs and revenue as we move out of the crisis. The Capital budget appropriated $89.5 million total, increased bonding capacity and authorized $75.6 million in expenditures from dedicated accounts. The focus for the Capital budget included Housing and Homelessness programs, early learning, behavioral health, education construction projects, environmental clean up projects and habitat conservation.
The Transportation budget had a $453 million loss of revenue this biennium. It made up for this loss by delaying funding for projects that were not ready to start yet, reducing rail capital projects until the next budget cycle and delaying WSDOT Public Transportation program grants until the 21-23 biennium.
NWHPBA Emerges Mostly Unscathed (From The Session at Least)
After the battles of 2019, it was nice to see that no bills were directly leveled at the hearth products industry. Sponsors of the woodstove emissions bill opted to not run that bill again because the EPA had not changed its standards for the Phase II of the NSPS. Although we did expect to see some movement on increases to the woodstove education fee, that did not pan out as we moved through the session.
The Capital budget maintained the $2 million for this biennium in woodstove changeout dollars.
Business Under Threat All Session
As with the 2019 session, many of the bills introduced were directly focused on increasing costs and regulations for businesses. While we were successful in fighting many of these, many also passed – but not before we had a chance to mitigate the negative impacts for businesses.
Some of the general business bills that passed included:
E2SHB 2311 – Greenhouse Gas Emissions: This is the one big energy bill that passed this year. It amends the state’s greenhouse gas emission reduction targets. It establishes a net-zero emissions target for 2050 both for state government and the state as a whole. It directs the Departments of Ecology and Commerce to include additional information in their greenhouse gas emissions reports…including the quantity of greenhouse gas emissions from wildfires in the state and the quantity of greenhouse gas emissions from key sectors of the economy. Requires more state agency reporting on how they are meeting their goals and establishes that it is the policy of the state to promote the removal of excess carbon from the atmosphere through carbon sequestration activities. Effective June 11, 2020.
SB 6492 – Services B&O Tax: Last year the Legislature passed a surcharge on certain service businesses to fund workforce and higher education. That bill was confusing, both for businesses trying to figure out if they had to pay the surcharge and for the Department of Revenue. In addition, it was shown that it would not bring in the money needed to fund the dedicated program. In response, the 2020 Legislature repealed the increase from last year and replaced it with a general increase in the service B&O rate from 1.5% to 1.75%. Businesses grossing less than $1 million per year would stay at the 1.5% rate. The bill PASSED THE LEGISLATURE and went into effect on April 1, 2020.
SHB 2409 -- Workers’ Compensation Penalty Increases: This bill started out the session tripling the penalties for workers’ compensation violations and adding in requirements that could have resulted in thousands of dollars being paid directly to injured workers by employers. In the end we were able to mitigate the penalty increase to just a doubling and putting place a process of review prior to any additional increases. Also eliminated were any specific requirements for employers and direct payments to workers. Instead the Department of Labor & Industries will create a licensing process for third party administrators to better track their claims management activities. The bill PASSED THE LEGISLATURE and takes effect on September 1, 2020.
SHB 2614 – Paid Family and Medical Leave: This bill was a mixed bag for business. On one hand it made some needed changes and clarifications to the state’s paid family and medical leave laws – including exempting casual labor from covered employment and giving the Employment Security Department proper authority for enforcement. However, the bill also authorizes employees to bring a private right of action to recover damages for an employer’s “unlawful acts” rather than requiring an administrative remedy first. Attempts to modify this provision were unsuccessful. The bill PASSED THE LEGISLATURE and takes effect immediately.
Other New Laws for Businesses:
EHB 2188 – CDL Testing Waivers: Military veterans may have the skills and knowledge CDL testing fees waived based on prior knowledge obtained during military service – Effective January 1, 2021
HB 2266 – Expressing Breastmilk: Employers are prohibited from requiring written certification from a health care provider for an employee to be provided reasonable accommodation when expressing breast milk. Effective June 10, 2020
SHB 2308 – Job Title Reporting: Employers are required to include standard occupational classifications or job titles of all workers in their quarterly unemployment insurance reports. Effective October 1, 2021
HB 2474 – Sales Commissions: This bill prohibits conditioning the earning of a sales commission on whether the contract was terminated after the efforts that resulted in the sale. Effective June 10, 2020
HB 2602 – Hair Discrimination: Race-related hair styles are added to the definition of unlawful discrimination. Effective June 10, 2020
SHB 2613 – Unemployment Charges: An employer is eligible for relief from benefit charges if a claimant was discharged because they were unable to satisfy a job prerequisite required by law or rule. Effective June 10, 2020.
ESB 5165 – Citizenship or Immigration Status: An employer, potential employer, labor organization, or employment agency commits and unfair employment practice if it discriminates against a person based on their citizenship or immigration status unless state or federal law, regulation, or a government contract requires it. Effective June 11, 2020
SB 6034 – Pregnancy Discrimination: State law is updated to extend the time allowed to file a complaint with the human rights commission for a claim related to pregnancy discrimination from six months to one year. Effective June 10, 2020
SSB 6037 – Business Corporation Board Diversity: Corporate boards must have a minimum of 25% female directors on the board no later than January 1, 2022. Effective June 10, 2020
SSB 6135 – System Reliability/Energy: This bill, sponsored by Senator Tim Sheldon, directs the Department of Commerce and Utilities and Transportation Commission (UTC) to jointly convene meetings of utilities at least once every 12 months to discuss the adequacy of energy resources to serve Washington’s electric needs. A report of these meetings must be presented to the Governor and the Legislature. This will help provide a forum for concerns regarding system reliability as a result of the Clean Energy Transformation Act. Effective June 11, 2020.
SB 6170 – Plumbing: After many years of trying, the bill to put all plumbing requirements under one certification passed this session. This version of the bill merges all current plumbing requirements under one certification statute. It also creates a new “residential plumbing” certification that will require fewer hours to obtain. Nothing in the bill does not impact fuel gas piping and – according to proponents and bill analysis – should not significantly change any existing requirements. Most of the bill will take effective in June, 2020 except for provisions surrounding incidental plumbing work by electricians and local permits, which take effect January 1, 2021 and the section requiring specialty electrician training which takes effect July 1, 2023.
Bad Bills that Business Defeated:
Several bills were defeated that could have had devastating impacts on businesses either generally or specifically. These included:
HB 1110 – Low Carbon Fuel Standards: This bill would have put into place aggressive clean fuel standards that studies showed could increase the price of fuel by over 50 cents per gallon and disrupted fuel supply for some industries.
2SHB 1965 – Workplace Violations/Qui Tam: This bill would have allowed whistleblowers to bring actions against employers on behalf of the state for workplace violations. This would have negated years of work with agencies to ensure enforcement included attention to special circumstances and appropriate due process. It also would have allowed individuals not affected or not even working for the business to bring actions.
SHB 1515/SB 5513—Employer-Employee Status: This bill would have eroded current independent contractor statutes and would have made more independent contractors employees under the law.
HB 1172/SB 5314 – Capital Gains Tax: Once again business was able to defeat attempts to establish a capital gains tax in the state.
HB 1395/SB 5565 – Direct Contractor Liability: This bill would have made contractors directly liable for payment of wages and benefits to sub contractors.
SSB 6053 – Wage Liens: This bill would have given preference to liens put on wages owed during disputes. This would have jeopardized the ability for businesses to obtain financing.
SB 6516 – Thirty-two Hour Work Week: This bill would have reduced the standard workweek to 32 hours and would have required overtime pay above that amount of not less than one and one half times their regular rate.
SSB 6552 – Workers Comp Waiting Period: This bill would have eliminated the three day waiting period for receiving industrial insurance compensation. This would have led to increased costs in the workers compensation system and thus increased premiums.
Affordable Housing & Homelessness Bills
Bills that Passed:
ESHB 1694 (Morgan) - Allowing move-in installment payment plans to help address the massive cost of moving, capping holding fees and providing a penalty.
SHB 1590 (Doglio) - Provides cities and counties the ability to implement the local sales and use tax for affordable housing councilmanically. The legislature created this option in 2015 but required a ballot measure, and only a handful of cities have been able to use it. HB 1590 will make implementing this option quicker and more efficient and could result in nearly $150 million for affordable housing and behavioral health programs across the state.
ESHB 2535 (Kirby) - Providing a grace period before late fees may be imposed for past due rent. Also, allowing disabled and elderly tenants receiving federal income assistance to request a rent due date more in line with the date that their monthly income arrives.
SHB 2384 (Doglio) - Modernizes and expands a property tax exemption for affordable housing providers. This will significantly help nonprofits who often run on modest budgets to provide the affordable homes our communities so urgently need.
ESSB 6378 (Kuderer) - Makes improvements to last year’s eviction reform bill (SB 5600) including improvements to eviction notices so tenants are informed about resources and improvements to the court eviction process. This could help tenants so they can stop an eviction when they are able to access rental assistance.
SHB 2343 (Fitzgibbon) - This is a follow-up bill to last year's 1923 also by Representative Fitzgibbon which addressed barriers to building affordable housing, incentivized cities to create housing plans and more. Most significantly for affordable housing, HB 2343 lowers the transit frequency times required in order to prevent a local jurisdiction from requiring parking for affordable housing which is a very significant and unnecessary cost drive to building affordable homes.
SHB 2634 (Walen) - Creating a Real Estate Excise Tax (REET) exemption when selling to an affordable housing provider who acquires the property for affordable housing. This will incentivize sales to affordable housing providers and give them a leg up when competing for increasingly scarce land for multifamily housing.
SHB 2950 (Macri) - Addressing affordable housing needs through the multifamily housing tax exemption by providing an extension of the exemption until January 1, 2022, for certain properties currently receiving a twelve-year exemption and by convening a work group.
2SSB 6478 (Nguyen) - Revising the TANF program to allow families to maintain benefits beyond the program time-limits if they are facing hardship, including homelessness.
SB 6229 (Kuderer) - Streamlining reporting for recipients of housing-related state funding by removing Washington state quality award program requirements. This will reduce significant unnecessary and wasteful spending and staff time for nonprofits and local governments.
SHB 2456 (Callan) - Expanding the homeless grace period for households accessing working connections child-care from four to twelve months in order to help them access employment, housing and services while their children are safe and high-quality childcare.
SHB 2567 (Thai) - Protecting access to courts for immigrant households by prohibiting warrantless, civil arrests inside court houses and by preventing judges, court staff and others from inquiring into or sharing citizenship status. This is critical in ensuring immigrant households can defend themselves in eviction lawsuits.
SHB 2441 (Entenman) - Improving access to temporary assistance for needy families by adjusting when a family can be terminated from the program.
SHB 2607 (Callan) - Improving access for youth and young adults experiencing homelessness to obtain a Washington state ID, including by expanding access for young adults aged 18 – 25 to qualify for reduced costs for identification cards.
Bills that did not pass:
HB 2453 (Macri) - Requiring a legitimate business or economic reason to evict and extending the notice period.
HB 2948 (Springer) and HB 2907 (Macri) - Granting additional and progressive tax authority for counties with populations exceeding two million and cities therein to impose an excise tax on businesses that addresses the affordable housing crisis and reduces homelessness through evidence-based practices that will save lives and improve public safety, while also ensuring certainty and predictability for businesses.
HB 2520 (Thai) - Protection tenants from false or exaggerated landlord damage claims and establishing standards for retention of damage deposits.
HB 2657 (Gregerson) and SB 6271 (Das) - Requiring three years notice of park closure to manufactured homeowners unless the park owner fully compensates the homeowners for the loss of their home.
HB 2610 (Duerr) and 6230 (Kuderer) - Creating policies and procedures to allow tenant organizations, nonprofits or public housing authorities an opportunity to purchase a manufactured housing community if it is being put up for sale.
HB 2849 (Tharinger) - Addressing Housing Trust Fund loan terms, changing definitions and codifying 40 year affordability requirements among other changes.
Below are the bills tracked and worked by the South Sound Chambers of Commerce Legislative Coalition that passed the Legislature. Note the were gubernatorial vetoes.
CLIMATE CHANGE/CARBON TAX
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Bill Details
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Status
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Sponsor
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Priority
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Position
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E2SHB 2311 (SB 6272)
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Greenhouse gas emissions
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C 79 L 20
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Slatter
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High
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Concerns
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Amending state greenhouse gas emission limits for consistency with the most recent assessment of climate change science.
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SB 6272 (E2SHB 2311)
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Greenhouse gas emissions
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S Environment, E
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Das
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High
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Concerns
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Amending state greenhouse gas emission limits for consistency with the most recent assessment of climate change science.
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CTE
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Bill Details
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Status
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Sponsor
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Priority
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Position
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HB 1702
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Low-cost course material/CTC
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C 104 L 20
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Van Werven
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Monitoring
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Informing students of low-cost course materials for community and technical college courses.
The bill takes effect on June 11, 2020 Requires a community or technical college to provide information to students during registration by displaying the following in the online course description: Whether a course uses low-cost required instructional materials. Defines "low-cost" as the required instructional materials costing fifty dollars or less.
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GENERAL BUSINESS PRIORITIES
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Bill Details
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Status
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Sponsor
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Priority
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Position
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2EHB 1056
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Domestic violence/workplace
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Gov vetoed
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Mosbrucker
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Low
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Concerns
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Creating a task force to identify the role of the workplace in helping curb domestic violence.
The bill takes effect on June 11, 2020 Creates a joint legislative task force on domestic violence and workplace resources to identify the role of the workplace in helping to curb domestic violence. Requires the task force to review: (1) The role of the workplace in the lives of individuals experiencing domestic violence; (2) The appropriate role of employers and employees in helping reduce the incidence of domestic violence; and (3) Whether legislation is needed to address the issues. Expires June 30, 2022.
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ESHB 2342
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Comprehensive plan updates
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C 113 L 20
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Fitzgibbon
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High
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Aligning the timing of comprehensive plan updates required by the growth management act with the timing of shoreline master program updates required by the shoreline management act.
The bill takes effect 90 days after adjournment of the session in which the bill is passed, except section 2, relating to updates under the Shoreline Management Act, which takes effect July 1, 2025. Changes the frequency of comprehensive plan updates under the Growth Management Act (GMA) from every eight years to every 10 years. Modifies the anniversary year by which certain counties and cities are required to update their comprehensive plans under the GMA. Requires certain counties and cities to update certain portions of their comprehensive plans at the five-year mark between full updates of their comprehensive plans. Provides that the five-year update requirement is contingent on the appropriation of certain funding amounts in order to defray the expense of the five-year update. Changes the frequency of shoreline master program periodic reviews within the Shoreline Management Act (SMA) from every eight years to every 10 years, beginning in 2025. Modifies the anniversary year by which certain cities and counties are required to update their shoreline master programs under the SMA.
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SHB 2409
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Industrial insur./employers
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C 277 L 20
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Kilduff
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High
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Oppose
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Concerning industrial insurance employer penalties, duties, and the licensing of third-party administrators.
The bill takes effect on September 1, 2020, except sections 8 and 9, relating to fair conduct and licensure of claims administrators, which take effect July 1, 2021. Increases and modifies the assessment of certain employer penalties under workers' compensation. Requires licensure and regulation of third-party administrators by the Department of Labor and Industries
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SHB 2554 (2SSB 6400)
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Health plan exclusions
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C 283 L 20
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Stonier
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Mitigating inequity in the health insurance market caused by health plans that exclude certain mandated benefits.
The bill takes effect on June 11, 2020. A health carrier that excludes, under state or federal law, any mandated health benefit from any health plan or student health plan must notify each enrollee of which benefits are excluded and alternate ways in which the enrollee may access excluded benefits in a timely manner. Enrollees must have prompt access to this information and the carrier must clearly and legibly include the information in any of its marketing materials that include a list of benefits covered under the plan. The information must also be listed in the benefit booklet and posted on the carrier's health plan or student health plan website. Beginning November 1, 2021, the Health Benefit Exchange (Exchange) must provide individuals seeking to enroll in coverage on its website with access to the information that carriers must provide when they exclude mandated benefits. The Exchange must provide this access directly on its website, through a link to an external site, or in any manner that allows consumers to easily access the information. Beginning July 1, 2021, the Insurance Commissioner (Commissioner) must post on his or her website information on carrier requirements and alternate ways in which enrollees may access excluded benefits in a timely manner. For the stated purpose of mitigating inequity in the health insurance market, the Commissioner must assess a fee on any health carrier offering a health plan or student health plan if the health plan or student health plan excludes, under state or federal law, any essential health benefit or benefit that is required under state law or rule. The Commissioner must set the fee in an amount that is the actuarial equivalent of costs attributed to the provision and administration of the excluded benefit. A health carrier subject to the fee must submit, as part of its rate filing, an estimate of the amount of the fee and supporting documents for the estimate. The supporting documents must include a certification by a member of the American Academy of Actuaries that the estimated fee is the actuarial equivalent of costs attributed to the provision and administration of the excluded benefit. The fee must be deposited into the General Fund. The Commissioner may waive the fee if he or she finds the carrier had provided alternate access to the excluded benefits in a timely manner.
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SHB 2614 (SSB 6349)
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Paid family & medical leave
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C 125 L 20
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Robinson
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High
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Concerns
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Concerning paid family and medical leave.
Section 1 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately. Makes numerous revisions to the Paid Family and Medical Leave program to provide clarity and improve the program's administration, including waiting periods, conditional waivers, and supplementation of benefits. Exempts casual labor from the types of covered employment. Grants the Employment Security Department (ESD) statutory authority to administer oaths, take depositions, issue subpoenas, or compel a witness' attendance in an administrative proceeding. Allows ESD to apply for and obtain a superior court order authorizing a subpoena in advance of its issuance. Authorizes employees to bring a private right of action to recover damages for an employer's unlawful acts, under specified conditions.
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SHB 2634 (SB 6366)
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Affordable housing/REET
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Gov vetoed
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Walen
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High
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Support
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Exempting a sale or transfer of real property for affordable housing to a nonprofit entity, housing authority, or public corporation from the real estate excise tax.
Property sold to a qualifying grantee used for rental housing for low- income households is exempt from REET. A qualifying grantee includes nonprofit housing providers, housing authority, or public corporation intending to use the property for rental housing for low-income persons. If a qualifying grantee intends to receive or operate existing housing on the property as affordable housing, they must certify by affidavit their intent to qualify the property within one year. If a qualifying grantee intends to develop new affordable housing on the site, they must certify by affidavit their intent to qualify the property within five years. If a qualifying grantee intends to substantially rehabilitate the premises, they must certify by affidavit their intent to qualify the property within three years. If a qualifying grantee fails to receive, or otherwise qualify the property for an exemption within the prescribed timeline, REET must be paid, plus interest. If the property is transferred to another qualifying grantee, REET is not due if the property is operated or developed for the intended purpose within the exemption period of the initial transfer. There is no limit on the number of transfers between qualifying grantees.
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EHB 2965
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Coronavirus response
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C 7 L 20
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Cody
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High
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Concerning the state's response to the novel coronavirus.
The bill takes effect on March 17, 2020. Appropriates $175 million from the Budget Stabilization Account to the Disaster Response Account. Appropriates $175 million from the Disaster Response Account and $25 million from the General Fund-Federal for the Office of Financial Management to provide to state agencies and distribute to local governments and federally recognized tribes for response to the Coronavirus Disease 2019 (COVID-19). Authorizes, until June 30, 2021, the Department of Social and Health Services to determine nursing facility payments to adequately resource facilities responding to the COVID-19 outbreak. Provides that until June 30, 2021, an individual under quarantine or isolation during the novel coronavirus outbreak does not need to meet the requirement to be able and available to work in order to be eligible to receive unemployment insurance benefits. Appropriates $25 million from the Budget Stabilization Account to the newly created COVID-19 unemployment account. Allows employers who have employees receiving unemployment insurance benefits as a direct or indirect result of the COVID-19 outbreak to apply by September 30, 2020, for the COVID-19 unemployment account to cover the unemployment benefit charges of the employer. Reduces relief proportionally among all approved employers if $25 million is insufficient to provide 100 percent relief. Authorizes the State Board of Education to establish an emergency waiver program to grant schools flexibility from graduation requirements due to the novel coronavirus outbreak.
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ESB 5165
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Discrimination/immigration
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C 52 L 20
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Saldaña
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Concerning discrimination based on citizenship or immigration status.
The bill takes effect on June 11, 2020. SB 5165 - DIGEST Revises the state civil rights act with regard to discrimination based on citizenship or immigration status.
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ESSB 5473 (HB 1445)
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Unemployment benefits/cause
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C 190 L 20
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Saldaña
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Medium
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Neutral
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Requires the Employment Security Department to study the impacts to the unemployment trust fund and employer contributions for unemployment insurance by allowing exceptions to provisions disqualifying individuals from receiving unemployment benefits for leaving work voluntarily without good cause related to: (1) inaccessible care for a child or vulnerable adult; (2) substantial increases in job duties or working conditions without commensurate increase in pay; (3) separation from a minor child. Requires ESD to meet at least three times with business and worker representatives to discuss the information gathered by ESD. Removes modifications to the term good cause for unemployment purposes for the separation due to inaccessible care for a child or vulnerable adult and related to separation from work related to the death, illness, or disability of a family member.
The bill was turned into a study so it no longer has impact this year.
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SSB 6256 (SHB 2424)
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Heating oil insurance
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C 310 L 20
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Wellman
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High
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Concerning the heating oil insurance program.
The bill takes effect on June 11, 2020. The Pollution Liability Insurance Agency (PLIA) is directed to close out existing claims under the Heating Oil Pollution Liability Insurance Program (Heating Oil Program). Claims received under the existing policy of insurance that would result in payment of more than $15 million in a calendar year may be paid out during the next calendar year. The PLIA is prohibited from registering heating oil tanks for coverage under the Heating Oil Program after July 1, 2020. In order to ensure that the adoption of rules does not delay the PLIA's process of closing out existing claims under the Heating Oil Program, the PLIA is authorized to process claims through interpretive guidance pending the adoption of rules. It is stated as the intent of the Legislature for the PLIA Underground Storage Tank Revolving Loan and Grant Program (Loan and Grant Program) to be used to assist owners and operators of heating oil tanks to remediate past releases and prevent future releases by upgrading, replacing, or removing heating oil systems. A definition of "heating oil tank" is added to the chapter of the Revised Code of Washington that governs the Loan and Grant Program. A heating oil tank is defined as a tank and its connecting pipes, whether above or below ground, or in a basement, with pipes connected to the tank for space-heating of human living or working space on the premises where the tank is located. The actions that the PLIA may take in order to administer the Loan and Grant Program are modified to add the prevention of future releases by upgrading, replacing, or removing a heating oil tank. The maximum amount that the PLIA may loan or grant under the program for a single heating oil tank is $75,000. The scope of the report on the Loan and Grant Program that the PLIA must provide to the Legislature and to the Office of Financial Management every other year is modified. The report must now include the number of heating oil tanks upgraded during the previous biennium. For loans and grants awarded for heating oil tanks, only the general location, status, amount loaned, and amount repaid must be provided. The State Treasurer is authorized upon the request of the PLIA, rather than being automatically required by statutory mandate, to transfer the amount in the Insurance Program Trust Account that exceeds $7.5 million, up to a transfer of $20 million, into the PLIA Underground Storage Tank Revolving Account. The PLIA may request transfers only as needed to maximize the amount in a fiscal biennium from the Insurance Trust Account to the PLIA Underground Storage Tank Revolving Account.
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ESSB 6440 (HB 2689)
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Workers' comp medical exam
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C 213 L 20
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Stanford
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High
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Concerns
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Concerning industrial insurance medical examinations.
Sections 1 through 3 of this act take effect January 1, 2021 Independent Medical Exams. A worker must submit to an examination by a physician selected by L&I (IME) whenever L&I or the self-insurer deems it necessary to: (1) make a decision on claim allowance or reopening, (2) resolve a new medical issue, an appeal, or case progress, or (3) evaluate the worker's permanent disability or work restriction. A new medical issue means a medical issue not covered by a previous medical examination requested by L&I or the self-insurer such as an issue regarding medical causation, medical treatment, work restrictions, or evaluating permanent partial disability. L&I may not assess a no-show fee against the worker if the worker gives at least five business days' notice of the worker's intent not to attend the IME. The exam must be at a place reasonably convenient to the injured worker, which means at a place where residents in the injured worker's community would normally travel to seek medical care for the same specialty as the examiner, or use telemedicine if L&I determines telemedicine is appropriate for the IME. L&I must address in rule how to accommodate the worker if no approved medical examiner in the specialty needed is available in that community. L&I must adopt rules, policies, and processes governing the use of telemedicine for IMEs. It may include a pilot project. Consideration should be given to all available research regarding the use of telemedicine for IMEs. Any IME report must also be given to the worker and the attending physician, in addition to the person ordering the report. Examination means a physical or mental examination by a medical care provider licensed to practice medicine, osteopathy, podiatry, chiropractic, dentistry, or psychiatry at the request of L&I, the self-insurer, or by order of the board of industrial insurance appeals. Work Group. An IME work group is established with members as follows: two members from the House of Representatives, one member appointed by the speaker of the House of Representatives from each of the two largest caucuses; two members from the Senate, one appointed by the president of Senate from each of the two largest caucuses; one business representative representing employers participating in the state fund; one business representative representing employers who are self-insurers; two labor representatives; a representative of an association representing both physicians who perform IMEs and panel companies; and one attorney who represents injured workers. The representatives are appointed by L&I. The work group must develop strategies for reducing the number of medical examinations per claim while considering claim duration and medical complexity and for improving access to medical records, including records and reports created during or pursuant to the IME; consider whether L&I should do all the IME scheduling, the circumstances for which examiners should be randomly selected or specified, and worker's rights, including attendance, specialist consultants, recordings, distance and location of exams; recommend changes to improve the efficiency of the IME process; and identify barriers to increasing the supply of in-state IME physicians. L&I must report its findings and recommendations to the Legislature by December 31, 2020.
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ESSB 6540 (2SHB 2471)
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Working connect. payments
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C 355 L 20
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Wilson
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Concerning working connections child care payment authorizations.
The bill takes effect on January 1, 2021. A household's 12-month authorization period begins on the date that childcare is expected to begin. "Authorization" is defined as a transaction created by DCYF to allow a child care provider to claim payment for care. Existing statutory language is moved into a new section.
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SSB 6632 (SHB 2840)
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Business licensing services
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C 164 L 20
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Takko
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Monitoring
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Providing additional funding for the business licensing service program administered by the department of revenue.
The statutory maximum rate for business license handling fees are changed to the following: license applications to open or reopen a business are increased from $19 to $90; and license renewal applications are decreased from $11 to $10. No handling fee is collected on a business license application by an existing business to open an additional location or obtain a nonresident city endorsement. All other business license applications maintain a statutory maximum rate of $19. Beginning September 30, 2023, and each year thereafter, DOR must review the BLS account balance and, if the balance in the account exceeds or is projected to exceed $1 million by the end of the current fiscal year, then DOR must reduce one or more of the handling fees. Handling fees must be reduced to the extent necessary to maintain a business license account balance of no more than $1 million at the end of the next fiscal year, as projected by DOR. DOR is not required to reduce handling fees more than once in any fiscal year. DOR may round adjusted fees to the nearest whole dollar so long as adjusted fee do not exceed the statutory maximum rates
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HOUSING/HOMELESSNESS
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Bill Details
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Status
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Sponsor
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Priority
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Position
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HB 1590
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Housing tax/councilmanic
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C 222 L 20
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Doglio
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High
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Authorizes county or city legislative authorities to impose the local sales and use tax for housing and related services and eliminates the requirement that the imposition of the tax be subject to the approval of a majority of county or city voters at a general or special election.
The bill takes effect on June 11, 2020 Authorizes county or city legislative authorities to impose the local sales and use tax for housing and related services and eliminates the requirement that the imposition of the tax be subject to the approval of a majority of county or city voters at a general or special election.
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ESHB 2342
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Comprehensive plan updates
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C 113 L 20
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Fitzgibbon
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High
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Aligning the timing of comprehensive plan updates required by the growth management act with the timing of shoreline master program updates required by the shoreline management act.
The bill takes effect 90 days after adjournment of the session in which the bill is passed, except section 2, relating to updates under the Shoreline Management Act, which takes effect July 1, 2025. Changes the frequency of comprehensive plan updates under the Growth Management Act (GMA) from every eight years to every 10 years. Modifies the anniversary year by which certain counties and cities are required to update their comprehensive plans under the GMA. Requires certain counties and cities to update certain portions of their comprehensive plans at the five-year mark between full updates of their comprehensive plans. Provides that the five-year update requirement is contingent on the appropriation of certain funding amounts in order to defray the expense of the five-year update. Changes the frequency of shoreline master program periodic reviews within the Shoreline Management Act (SMA) from every eight years to every 10 years, beginning in 2025. Modifies the anniversary year by which certain cities and counties are required to update their shoreline master programs under the SMA.
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SHB 2343 (SSB 6334)
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Urban housing
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C 173 L 20
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Fitzgibbon
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High
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Concerning urban housing supply.
The bill takes effect on June 11, 2020. Modifies and adds to the list of planning actions that certain cities are encouraged to take to increase residential building capacity. Modifies the date by which certain planning actions must be taken for those actions to be exempt from administrative or judicial appeal under the Growth Management Act and the State Environmental Policy Act (SEPA). Changes the frequency and level of transit service that triggers a cap on minimum residential parking requirements for certain affordable and market rate multifamily housing units. Exempts certain project actions from appeal under SEPA on the basis of impacts to the aesthetics element of the environment if the project is subject to design review at the local government level. Directs the Department of Ecology to remove parking as an element of the environment and as a component of the environmental checklist the next time it amends SEPA rules.
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SHB 2384 (SB 6232)
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Nonprofit housing/prop. tax
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C 273 L 20
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Doglio
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High
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Concerning the property tax exemption for nonprofit organizations providing rental housing or mobile home park spaces to qualifying households.
The bill takes effect on June 11, 2020. Beginning July 1, 2021, the maximum income to be considered a qualifying household is increased from 50 percent to 60 percent of county median income. For facilities of any size, if the income of a qualifying household rises above 60 percent of the median income, but remains at or below 80 percent, the exemption will continue so long as the housing continues to meet certification requirements. Nonprofits receiving the exemption are required to recertify their exempt status every third year following the initial qualification for the exemption.
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HB 2497
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Affordable housing financing
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C 280 L 20
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Ormsby
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High
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Concerns
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Adding development of permanently affordable housing to the allowable uses of community revitalization financing, the local infrastructure financing tool, and local revitalization financing.
The bill takes effect on June 11, 2020. The purchase, rehabilitation, energy efficiency retrofit, and construction of housing for creating or preserving permanently affordable housing is added to the public improvement costs authorized for the CRF Act, the LIFT, and the LRF programs. "Permanently affordable housing" is defined as housing, regardless of ownership, for which there is a legally binding, recorded document in effect limiting the price at which the owner may sell.
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SHB 2634 (SB 6366)
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Affordable housing/REET
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Gov vetoed
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Walen
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High
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Support
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Exempting a sale or transfer of real property for affordable housing to a nonprofit entity, housing authority, or public corporation from the real estate excise tax.
Property sold to a qualifying grantee used for rental housing for low- income households is exempt from REET. A qualifying grantee includes nonprofit housing providers, housing authority, or public corporation intending to use the property for rental housing for low-income persons. If a qualifying grantee intends to receive or operate existing housing on the property as affordable housing, they must certify by affidavit their intent to qualify the property within one year. If a qualifying grantee intends to develop new affordable housing on the site, they must certify by affidavit their intent to qualify the property within five years. If a qualifying grantee intends to substantially rehabilitate the premises, they must certify by affidavit their intent to qualify the property within three years. If a qualifying grantee fails to receive, or otherwise qualify the property for an exemption within the prescribed timeline, REET must be paid, plus interest. If the property is transferred to another qualifying grantee, REET is not due if the property is operated or developed for the intended purpose within the exemption period of the initial transfer. There is no limit on the number of transfers between qualifying grantees.
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SHB 2673
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Infill development
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C 87 L 20
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Barkis
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High
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Support
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Concerning exemptions for infill development under the state environmental policy act.
The bill takes effect on June 11, 2020. Infill development is eligible for a city- or county-adopted exemption from the State Environmental Policy Act if the government action relates to development that occurs where current density and intensity of use is roughly equal to what is called for in a jurisdiction's comprehensive plan. The categorical exemption may not exempt government action related to development that is inconsistent with the applicable comprehensive plan or that would clearly exceed the density or intensity of use called for in the comprehensive plan.
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EHB 2797 (SSB 6631)
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Housing/sales & use tax
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Gov vetoed
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Robinson
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High
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Concerning the sales and use tax for affordable and supportive housing.
The bill amends the local sales tax for affordable or supportive housing (the tax) in several ways. The deadline to adopt a qualifying local tax is extended to December 31, 2021. Cities that intend to adopt a qualifying local tax are required to adopt a notice of intent to do so by July 28, 2020. Cities that are not currently imposing a qualifying local tax that do not adopt a notice of intent to do so by July 28, 2020, are not eligible to adopt a qualifying local tax for purposes of the program. The rate structure is not conditional on the date and is as follows:  0.0146 percent for: (1) a city with a qualifying local tax; (2) a city within a county that is not levying the tax; or (3) a county within its unincorporated areas and within the limits of a city that is not levying the tax; and  0.0073 percent for: (1) a city without a qualifying local tax; or (2) a county within the limits of a city levying the tax and within the limits of a city without a qualifying local tax. The requirement to authorize the maximum capacity of the tax is removed. A county or city must send a copy of legislation to authorize the tax to the Department of Revenue within 45 days of its adoption. The Department of Revenue is required to calculate a preliminary annual maximum amount of tax distributions for each county or city levying the tax by January 1, 2021. The Department of Revenue is required to calculate a final annual maximum amount of tax distributions by June 30, 2022. For a participating county, this amount includes the rate of the tax multiplied by the taxable retail sales for fiscal year 2019 within the unincorporated areas of the county, within cities not levying the tax, and within cities levying the tax without a qualifying local tax. The order in which a city or county authorized the tax does not factor into the calculation. Cities and counties are authorized to use revenues collected from the tax on staffing related to the daily operations of permanent supportive housing. Certain small counties and cities are authorized to use up to 6 percent of the revenues collected from the tax on administration related to the tax. A county may not pledge for repayment of bonds any revenues from the tax collected within cities levying the tax: (1) before July 28, 2020; or (2) before June 30, 2022 within cities that have adopted a notice of intent to authorize a qualifying local tax. Cities and counties are authorized to enter into contracts or interlocal agreements with public entities or nonprofit organizations.
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SB 6212 (HB 2489)
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Affordable housing/prop. tax
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C 253 L 20
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Das
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High
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Support
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Concerning the authority of counties, cities, and towns to exceed statutory property tax limitations for the purpose of financing affordable housing for very low-income households and low-income households.
The bill takes effect on October 1, 2020. Funds from the affordable housing property tax levy may be used for affordable homeownership, owner-occupied home repair, and foreclosure prevention programs for low-income households. "Low-income household" is defined as a single person, family, or unrelated persons living together whose income is at or below 80 percent of the median income, with adjustments for household size, for the county where the taxing district is located.
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2SSB 6231 (HB 2630)
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Single-family dwellings
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C 204 L 20
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Kuderer
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Providing a limited property tax exemption for the construction of accessory dwelling units.
Exempts the value of constructing an accessory dwelling unit from property taxes for three years. Requires the Department of Revenue to evaluate the home improvement property tax exemption and provide a report to the appropriate legislative committees by November 15, 2020
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SSB 6256 (SHB 2424)
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Heating oil insurance
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C 310 L 20
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Wellman
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High
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Concerning the heating oil insurance program.
The bill takes effect on June 11, 2020. The Pollution Liability Insurance Agency (PLIA) is directed to close out existing claims under the Heating Oil Pollution Liability Insurance Program (Heating Oil Program). Claims received under the existing policy of insurance that would result in payment of more than $15 million in a calendar year may be paid out during the next calendar year. The PLIA is prohibited from registering heating oil tanks for coverage under the Heating Oil Program after July 1, 2020. In order to ensure that the adoption of rules does not delay the PLIA's process of closing out existing claims under the Heating Oil Program, the PLIA is authorized to process claims through interpretive guidance pending the adoption of rules. It is stated as the intent of the Legislature for the PLIA Underground Storage Tank Revolving Loan and Grant Program (Loan and Grant Program) to be used to assist owners and operators of heating oil tanks to remediate past releases and prevent future releases by upgrading, replacing, or removing heating oil systems. A definition of "heating oil tank" is added to the chapter of the Revised Code of Washington that governs the Loan and Grant Program. A heating oil tank is defined as a tank and its connecting pipes, whether above or below ground, or in a basement, with pipes connected to the tank for space-heating of human living or working space on the premises where the tank is located. The actions that the PLIA may take in order to administer the Loan and Grant Program are modified to add the prevention of future releases by upgrading, replacing, or removing a heating oil tank. The maximum amount that the PLIA may loan or grant under the program for a single heating oil tank is $75,000. The scope of the report on the Loan and Grant Program that the PLIA must provide to the Legislature and to the Office of Financial Management every other year is modified. The report must now include the number of heating oil tanks upgraded during the previous biennium. For loans and grants awarded for heating oil tanks, only the general location, status, amount loaned, and amount repaid must be provided. The State Treasurer is authorized upon the request of the PLIA, rather than being automatically required by statutory mandate, to transfer the amount in the Insurance Program Trust Account that exceeds $7.5 million, up to a transfer of $20 million, into the PLIA Underground Storage Tank Revolving Account. The PLIA may request transfers only as needed to maximize the amount in a fiscal biennium from the Insurance Trust Account to the PLIA Underground Storage Tank Revolving Account.
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SSB 6495 (HB 2809)
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Essential needs & housing
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C 322 L 20
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Walsh
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Medium
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Neutral
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Regarding essential needs and housing support eligibility.
The bill takes effect on June 11, 2020. Within funds appropriated from the Department of Commerce (Commerce), recipients of the PWA program are eligible for referral to the HEN program, provided they meet eligibility requirements. Recipients of PWA are eligible for HEN for 24 consecutive months from the date Commerce determines PWA eligibility.
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ESSB 6574
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GMHB & ELUHO powers, duties
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C 214 L 20
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Takko
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Medium
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Clarifying the respective administrative powers, duties, and responsibilities of the growth management hearings board and the environmental land use and hearings office.
The bill takes effect on June 11, 2020. Growth Management Hearings Board. The size of the Growth Management Hearings Board (GMHB) is changed from seven members to five. Three members, all of whom must be admitted to practice law in Washington, are appointed by the Governor, one from the central Puget Sound region, one from eastern Washington, and one from western Washington. At least two members of the GMHB shall have been a city or county elected official, one each residing in eastern Washington and western Washington. No more than three members of the GMHB may be members of the same political party. GMHB members operate on a full-time basis, receive an annual salary to be determined by the Governor, receive reimbursement for travel expenses incurred in the discharge of their GMHB duties, and are considered employees of the state of Washington. The principal office of the GMHB must be located in Thurston County, but the GMHB may hold hearings at any other place in the state. The GMHB must annually elect one of its members to be the chair. The duties of the chair include developing GMHB procedures and managing GMHB meetings. Environmental and Land Use Hearings Office. The Governor must appoint a Director of the Environmental and Land Use Hearings Office (ELUHO). The Director of the ELUHO may appoint administrative law judges in cases before the Shoreline Hearings Board, the Pollution Control Hearings Board, and the GMHB. The ELUHO is responsible for all administrative functions pertaining to the GMHB except for developing GMHB procedures and managing GMHB meetings. The ELUHO is responsible for GMHB case assignments.
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ESSB 6617
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Accessory dwelling units
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C 217 L 20
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Liias
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Medium
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Concerns
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Concerning accessory dwelling unit regulation.
The bill takes effect on June 11, 2020. Through ordinances, development regulations, and other official controls, cities and counties planning under the Growth Management Act (GMA): may allow up to two attached or detached accessory dwelling units (ADUs) on all lots on which there is a single-family unit, duplex, triplex, fourplex, rowhouse, townhome, or apartment building, regardless of zoning district; may not require the provision of off-street parking for ADUs within one-half-mile of major transit stops, including bus or transit stops frequented by fixed-route service at intervals of at least every thirty minutes during peak hours; and may remove requirements that the owner of a lot on which there is an ADU reside in or occupy the ADU or another housing unit on the lot. GMA-planning cities and counties must adopt required ADU policies by July 1, 2021. Beginning July 1, 2021, the required ADU policies apply and take effect in any covered city or covered county that has not adopted required ADU ordinances, development regulations, or other official controls and supersede, preempt, and invalidate local regulations in conflict with the ADU requirements. Ordinances, development regulations, or other official controls are only required to apply in the portions of covered jurisdictions within an urban growth area designated under the GMA. The adoption of ADU policies that covered jurisdictions are required to adopt are exempt from appeals under the State Environmental Policy Act and the GMA.
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OTHER CHAMBER BILLS
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Bill Details
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Status
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Sponsor
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Priority
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Position
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HB 1841 (SB 5877)
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Crew size on certain trains
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C 170 L 20
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Riccelli
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Medium
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Concerns
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Establishing minimum crew size on certain trains.
The bill contains an emergency clause and takes effect immediately Establishes minimum crew size requirements for freight and passenger trains and trains carrying hazardous materials. Creates exceptions to the requirements and increases monetary penalties for violations.
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STREAMLINED SALES TAX
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Bill Details
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Status
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Sponsor
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Priority
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Position
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|
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EHB 1948 (SSB 5862)
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Warehousing & manuf. jobs
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Gov vetoed
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Entenman
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High
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Support
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Supporting warehousing and manufacturing job centers.
This is the answer to issues dealing with a lack of streamlined sales tax mitigation funds.
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TRADE, AEROSPACE & MFG
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Bill Details
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Status
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Sponsor
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Priority
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Position
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|
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ESB 6690 (HB 2945)
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Aerospace B&O taxes/WTO
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C 165 L 20
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Liias
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High
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Concerning aerospace business and occupation taxes and world trade organization compliance.
Repeals age old aerospace B&O tax credit to help Boeing with compliance with European tariffs.
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TRANSPORTATION
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Bill Details
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Status
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Sponsor
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Priority
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Position
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HB 1841 (SB 5877)
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Crew size on certain trains
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C 170 L 20
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Riccelli
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Medium
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Concerns
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Establishing minimum crew size on certain trains.
The bill contains an emergency clause and takes effect immediately Establishes minimum crew size requirements for freight and passenger trains and trains carrying hazardous materials. Creates exceptions to the requirements and increases monetary penalties for violations.
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HB 2271 (SB 6094)
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Transp. bonds/budget ref.
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C 24 L 20
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Duerr
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Correcting a reference to an omnibus transportation appropriations act within a prior authorization of general obligation bonds for transportation funding.
The bill takes effect on June 11, 2020 Correcting a reference to an omnibus transportation appropriations act within a prior authorization of general obligation bonds for transportation funding.
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ESHB 2322 (SSB 6497)
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Transp. budget, supplemental
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C 219 L 20
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Fey
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Making supplemental transportation appropriations for the 2019-2021 fiscal biennium.
The bill contains an emergency clause and takes effect immediately. Making supplemental transportation appropriations for the 2019-2021 fiscal biennium.
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Uncategorized Bills
No bills.
