Mar 02, 2020  -  Business

Quick Update

With less than two weeks remaining in the 2020 Legislative Session, the list of ideas that may become law becomes even shorter. The deadline for a bill to pass its policy committee in the opposite chamber was Friday, February 28. Fiscal committees will be hard at work over the weekend, as the deadline for bills to pass that hurdle in the opposite chamber is Monday, March 2. The two chambers will then spend the next two weeks voting on the floor and negotiating concurrence and the budgets in advance of Sine Die on March 12.

Majority Democrats must now decide which issues they will advance in an election year in which all 98 members of the House of Representatives and 25 of the 49 Senators will appear on the ballot alongside a divisive presidential race, all statewide elected officials, and possible initiatives to the people. Soundbite issues for election hit pieces abound in bills and floor amendments and include guns, sex ed, car tabs, prescription drug prices, property taxes, child and nursing home care, and the low carbon fuel standard.

On the heels of a revenue forecast showing an unanticipated $606 million revenue increase last week, both chambers spent committee and floor time this week passing preliminary versions of the capital, operating, and transportation budgets.

Senate Democrats proposed nearly $1 billion in new operating spending bringing the $52.4 billion operating budget total to $53.6 billion, while House Democrats proposed $1.2 billion in new spending, bringing the proposed new budget total to $53.7 billion.  Neither operating budget imposes significant new taxes, nor do they impart noteworthy tax cuts, something both Senate and House Republican budget leaders criticize, arguing the new and unanticipated revenue should be used to provide tax breaks instead of new spending.

Both operating budgets proposed $318 million in one-time money, which is suspected to be the outcome of taxing the estate of the late Paul Allen. The Senate uses that amount for one-time spending on three areas. $115 million in the Senate operating budget is proposed to address homelessness through affordable housing and shelter capacity.  $100 million is allocated to Governor Inslee and other state officials for yet to be named “climate resiliency projects” that improve forest health, reduce ocean acidification, increase salmon habitat, and protect endangered species.

The last $100 million is proposed for the UW Behavioral Health Hospital to replace the $35 million appropriation from last year; freeing up some of the state's bond capacity for other projects, including the renovation of Washington's second oldest state-owned enterprise (after the University of Washington), Western State Hospital. Western State is Washington's largest psychiatric facility at nearly 850 beds, and as part of Governor Inslee's plan to decentralize psychiatric care, is transitioning to serving forensic patients rather than civil patients. The Senate Operating Budget was voted off the House Floor late on Friday, February 28 in a 55-39 vote.

The Senate supplemental capital budget received a 49-0 floor vote on Wednesday, February 26. The proposal authorizes an additional $278 million in capital projects including $25 million for housing and homelessness, $31 million for toxic cleanup and stormwater, and $58 million for K-12 school construction.

The House supplemental transportation budget was released on Monday, February 24, increasing spending by $350 million to $10.19 billion from the $9.84 billion passed last spring. Part of the increase was due to use of unspent funds from the 2017-19 biennium. The $10.5 billion Senate transportation budget was released Tuesday, February 25. The budget assumes an underrun of $402 million, with trigger language that restores $121.7 million in reductions should the initiative be overturned. Both budgets rely on a variety of one-time balancing methods such as fund transfers to cope with already declining gas tax revenue and the unresolved Initiative 976 court battle. Unless invalidated, 976 will eliminate $453 million in funding for the budget. Budget leaders stressed these one-time actions cannot be done in the next biennium and additional funding sources must be found. The House budget passed the floor 96-1 on Friday, February 28.

On Monday March 2, the Senate Transportation Committee will hear 1110 (Fitzgibbon, D-Seattle), the low carbon fuel standard bill.  The committee is not expected to pass the bill, planning instead to incorporate it into a transportation funding package next session.

On Tuesday and Wednesday, the House Finance and Senate Ways & Means Committees heard the bills to suspend the aerospace tax benefit, 2945 (Sullivan, D-Covington) and 6690 (Liias, D-Mukilteo), respectively. The request to repeal the incentives should pave the way to resolving a trade dispute between the United States and the European Union, home to the Boeing rival Airbus. The necessity to pass the bill to avoid $22 billion in retaliatory tariffs threatening not just aerospace but the state's exports of agricultural products, is not disputed. The real point of deliberation is whether the lower tax rate would be restored when the U.S. and the E.U. reach agreement. Labor leaders hope to add language for workforce accountability including Washington job retention, expansion of apprenticeships and training, and a requirement that Boeing commit to building its next new airplace in Washington. The bill is scheduled for executive action Saturday, February 29.

On Tuesday, the House Finance Committee heard 2947 (Valdez, D-Seattle), the new version of the high capacity magazine ban that includes a buyback program funded by eliminating the tax exemption on precious metals and bullion.  Like its predecessor 2240 (Valdez, D-Seattle), the policy aspects of the bill are opposed by the National Rifle Association and other local gun enthusiast groups. It is supported by the Offices of the Governor and Attorney General, as well as the PTA , Alliance for Gun Responsibility and others. Removing the sales tax exemption on precious metals and bullion is opposed by precious metal dealers who contend precious metals are held as an investment rather than a currency and like stocks, bonds, and real estate should remain exempted from sales tax. The bill has not yet been scheduled for executive action.

The House Public Safety Committee passed 5339 to repeal the death penalty on Thursday, February 27. The bill, if passed by the full legislature, will remove capital punishment as a sentencing option for aggravated murder and mandate instead a sentence of life in prison without possibility of parole. This would make permanent a 2018 state Supreme Court ruling that struck down capital punishment as arbitrary and racially biased.  Earlier this week, the committee heard emotional testimony from committee member Rep. Jenny Graham (R-Spokane) whose sister was murdered by the Green River Killer, Gary Ridgway. Her mother also spoke tearfully in opposition to the bill, which they say is unfair to victims and removes a negotiating tool for investigators. Daniel Mueggenborg, Auxiliary Bishop for the Archdiocese of Seattle, spoke in support of the bill. Governor Inslee is poised to sign the bill if passed by the House.

The House Education Committee passed the divisive 5395 (Wilson, D-Federal Way) in a 9-8 vote, which phased in over two years, will mandate comprehensive sexual health education in grades K-12. The bill has inspired several new parental rights groups. When the Senate bill was heard in the House Education Committee on February 20, 755 people signed in on the bill, 634 of whom were against. Legislators report receiving thousands of emails about the bill, both for and against.

The House Finance Committee heard 2948 (Springer, D-Kirkland) on Thursday February 27, the new version of 2907 (Macri, D-Seattle), the proposal to grant King County the authority to impose a payroll tax to generate revenue to address affordable housing and homelessness. The bill has been scheduled for executive action on Monday, March 2.  The committee did not bring the bill up this morning and will address again later in the week.

On Friday, February 28, the Senate Ways & Means Committee heard testimony on 2638 (Peterson, D-Edmonds), the bill to allow sports betting in Washington's tribal casinos. The sticking point on this bill is the insistence of Nevada-based Maverick Gaming that gambling on sports also be allowed in non-tribal card rooms. After the hearing, Maverick CEO Eric Persson vowed to spend $20-30 millino in this election cycle, having already put $1.5 million into a PAC it controls. Persson says his PAC will focus on House and Senate campaigns involving lawmakers that supported an emergency clause in the bill. Persson added, "Nothing's off the table. We'll do everything we can. Litigation, lobbying, TV ads, whatever it takes to get the message out there."

Upcoming Dates

March 2 – Opposite House Fiscal Cutoff
March 6 – Opposite House Floor Cutoff
March 12 – Sine Die

CLIMATE CHANGE/CARBON TAX

Bill Details

Status

Sponsor

Priority

Position


E2SHB 1110 (SB 5412)

Greenhouse gas/transp. fuels

S Transportation

Fitzgibbon

High

Oppose

Reducing the greenhouse gas emissions associated with transportation fuels. Applies clean fuel standards.

Estimates are that this will increase costs of fuel in the state by over 50 cents per gallon.  Updated CA numbers have it closer to 20 cents.


SHB 2892

Greenhouse gas emissions

H Approps

Fitzgibbon

Medium

Oppose

Authorizing the department of ecology to regulate greenhouse gas emissions associated with persons who produce or distribute fossil fuel products that emit greenhouse gases in Washington.

It appears this bill may become the vehicle.


HB 2957

Greenhouse gases/indirect

H Approps

Fitzgibbon

High

Concerns

Reducing greenhouse gas emissions by providing authority for the regulation of indirect sources under the clean air act and implementing standards and programs that reduce emissions associated with buildings.


CTE

Bill Details

Status

Sponsor

Priority

Position


HB 1702

Low-cost course material/CTC

S Rules 2

Van Werven

Monitoring

 

Informing students of low-cost course materials for community and technical college courses.

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.


 

GENERAL BUSINESS PRIORITIES

Bill Details

Status

Sponsor

Priority

Position


2EHB 1056

Domestic violence/workplace

S Rules 2

Mosbrucker

Low

Concerns

Creating a task force to identify the role of the workplace in helping curb domestic violence.

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.


ESHB 2342

Comprehensive plan updates

S Ways & Means

Fitzgibbon

High

 

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.

Changes the frequency of comprehensive plan updates under the Growth Management Act (GMA) from every eight years to every 10 years. ŸModifies the anniversary year by which certain counties and cities are required to update their comprehensive plans under the GMA. ŸRequires certain counties and cities to update certain portions of their comprehensive plans at the five-year mark between full updates of their comprehensive plans. ŸProvides 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. ŸChanges 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.


SHB 2409

Industrial insur./employers

S Rules 2

Kilduff

High

Oppose

Concerning industrial insurance employer penalties, duties, and the licensing of third-party administrators. Increases certain employer penalties under workers' compensation. Ÿ Specifies an employer responsibility of fair conduct, to be regulated by the Department of Labor and Industries. Ÿ Requires licensure of claims administrators by the Department of Labor and Industries.

This is a far-ranging workers compensation penalty bill introduced at the behest of the trial lawyers association. Insofar as it goes after all employers – but calls out Retro and Self-Insurance for special treatment it is one of the most aggressive anti-employer workers comp bills we have seen in years. It should go near the top of everyones oppose list.  Tucked away in Section 8 of the bill is a remarkable extension of policy that would purpose to impose upon all employers and their lay representatives an insurance good faith obligation toward injured workers in the handling of their claims. This new bad faith allegation, which could be made against business owners, retro groups, managers, human resources, vocational counselors, fraud investigators, nurse case managers, etc., would be adjudicated by the Department on vague standards and subject to a penalty on a range from (currently) approx. $1,300 to $13,000.


2SHB 2471 (ESSB 6540)

Working connect. payments

H 2nd Reading

Callan

 

 

Concerning working connections child care payment authorizations.


SHB 2554 (2SSB 6400)

Health plan exclusions

S Ways & Means

Stonier

 

 

Mitigating inequity in the health insurance market caused by health plans that exclude certain mandated benefits.


SHB 2614 (SSB 6349)

Paid family & medical leave

S Rules 2

Robinson

High

Concerns

Concerning paid family and medical leave.


SHB 2634 (SB 6366)

Affordable housing/REET

S Ways & Means

Walen

High

Support

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.


HB 2881

Commercial properties/tax

H Finance

Frame

 

 

Providing a property tax exemption for eligible commercial properties located within designated business districts that create a community benefit as determined by the local jurisdictions.


HB 2946

Financial costs by state

H Trans

Stokesbary

 

 

Reducing the financial costs imposed by the state government on working Washington families. This bill reduces taxes in WA state by about $1 billion over 4 years -- about 1/2 of the projected revenue forecast.

Caps vehicle excise tax fees for 10,000 lbs or less at $30 and changes valuation to Kelley Blue Book. Sends portions of motor vehicle sales tax to transportation fund. Puts in place a number of other sales tax exemptions.


HB 2948 (SB 6692)

Local tax authority/housing

H Finance

Springer

High

Oppose

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.


ESB 5165

Discrimination/immigration

H Rules R

Saldaña

 

 

Concerning discrimination based on citizenship or immigration status.

SB 5165 - DIGEST Revises the state civil rights act with regard to discrimination based on citizenship or immigration status.


ESSB 5473 (HB 1445)

Unemployment benefits/cause

H Rules R

Saldaña

Medium

Neutral

Ÿ 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. Ÿ Requires ESD to meet at least three times with business and worker representatives to discuss the information gathered by ESD. ŸRemoves 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.


SSB 6256 (SHB 2424)

Heating oil insurance

H Cap Budget

Wellman

High

 

Concerning the heating oil insurance program.

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.


SSB 6349 (SHB 2614)

Paid family & medical leave

S Rules X

Keiser

High

Concerns

Concerning paid family and medical leave.


SSB 6408 (2SHB 2577)

Agencies/businesses & profs.

H Approps

Wilson

High

Support

Concerning agency responsibilities to regulated businesses and professions.


ESSB 6440 (HB 2689)

Workers' comp medical exam

H Approps

Stanford

High

Concerns

Concerning industrial insurance medical examinations.


ESSB 6540 (2SHB 2471)

Working connect. payments

H Approps

Wilson

 

 

Concerning working connections child care payment authorizations.


SSB 6632 (SHB 2840)

Business licensing services

H Finance

Takko

Monitoring

 

Providing additional funding for the business licensing service program administered by the department of revenue.


SB 6692 (HB 2948)

Local tax authority/housing

S Ways & Means

Keiser

High

Oppose

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.

This bill applies a .25 percent tax on payroll. Exemptions for small businesses with 50 or fewer employees and grossing $3 million or less per year. Deductions can be taken for any employee grossing less than $150,000 per year.


HOUSING/HOMELESSNESS

Bill Details

Status

Sponsor

Priority

Position


HB 1590

Housing tax/councilmanic

S Rules 2

Doglio

High

 

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.

Authorizes a county legislative authority to impose a local sales and use tax without going through the election process.


ESHB 2342

Comprehensive plan updates

S Ways & Means

Fitzgibbon

High

 

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.

Changes the frequency of comprehensive plan updates under the Growth Management Act (GMA) from every eight years to every 10 years. ŸModifies the anniversary year by which certain counties and cities are required to update their comprehensive plans under the GMA. ŸRequires certain counties and cities to update certain portions of their comprehensive plans at the five-year mark between full updates of their comprehensive plans. ŸProvides 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. ŸChanges 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.


SHB 2343 (SSB 6334)

Urban housing

S Rules 2

Fitzgibbon

High

 

Concerning urban housing supply.

Modifies and adds to the list of planning actions that certain cities are encouraged to take to increase residential building capacity. Ÿ 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). Ÿ 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. Ÿ 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. Ÿ 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.


SHB 2384 (SB 6232)

Nonprofit housing/prop. tax

S Ways & Means

Doglio

High

 

Concerning the property tax exemption for nonprofit organizations providing rental housing or mobile home park spaces to qualifying households.

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.


SHB 2388 (SSB 6472)

Homelessness definitions

S Ways & Means

Senn

High

 

Standardizing definitions of homelessness to improve access to services.

Early Childhood Education and Assistance and Working Connections Child Care Programs. Under these programs, homeless means without a fixed, regular, and adequate nighttime residence as described in the federal McKinney-Vento Homeless Assistance Act, Subchapter VI, Part B: Education for Homeless Children and Youths (McKinney-Vento). Temporary Assistance for Needy Families. Under TANF, a recipient is exempt from the 60- month time limit by reason of hardship if the family includes a homeless child or youth without a fixed, regular, and adequate nighttime residence as described in McKinney-Vento. Child Welfare. For the purposes of child welfare, dependency proceedings, the child welfare housing assistance pilot program and for individuals who qualify for a reduced identicard fee, "experiencing homelessness" means an individual who is: living outside or in a building not meant for human habitation or which they have no legal right to occupy, in an emergency shelter, or a temporary housing program that may include a transitional housing program if habitation time limits exist; or lacking a fixed, regular, and adequate nighttime residence, including circumstances such as sharing the housing of other persons due to loss of housing, economic hardship, fleeing domestic violence, or a similar reason.


HB 2452

Multiple-unit housing REET

H Finance

Barkis

High

Support

Reducing the real estate excise tax for multiple-unit housing.

Multiple-unit housing is subject to a flat 1.28 percent REET rate and is exempt from the graduated REET rate structure. "Multiple-unit housing" means a building having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multiple-unit housing may result from new construction or rehabilitation or conversion of vacant, underutilized, or substandard buildings to multiple-unit housing.


HB 2490

Urban centers/multiple-units

H Finance

Appleton

 

 

Expanding the property tax exemption for new and rehabilitated multiple-unit dwellings in urban centers.


HB 2497

Affordable housing financing

S Rules 2

Ormsby

High

Concerns

Adding development of permanently affordable housing to the allowable uses of community revitalization financing, the local infrastructure financing tool, and local revitalization financing.

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.


SHB 2634 (SB 6366)

Affordable housing/REET

S Ways & Means

Walen

High

Support

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.


SHB 2673

Infill development

S Rules 2

Barkis

High

Support

Concerning exemptions for infill development under the state environmental policy act.

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.


EHB 2797 (SSB 6631)

Housing/sales & use tax

S Ways & Means

Robinson

High

 

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: Ÿ 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 Ÿ 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.


ESHB 2849

Commerce housing programs

S Ways & Means

Tharinger

High

 

Concerning housing programs administered by the department of commerce.

he Housing Assistance Program and the Affordable Housing Program are statutorily consolidated into the Housing Trust Fund (HTF) Program, with technical corrections and policy clarifications made to and obsolete language removed from related statutes. Housing Trust Fund Programming. The definition of first-time home buyer for purposes of down payment and closing cost assistance under the HTF to include: Ÿ a single parent who only owned a home with a former spouse while married; Ÿ a displaced homemaker; Ÿ an individual who has only owned a principal residence not permanently affixed to a permanent foundation; and Ÿ an individual who has only owned a property that is discerned by a license building inspector as uninhabitable Mortgage subsidies and mortgage insurance guarantee or payments are removed as HTF eligible activities. In awarding HTF grants and loans, priority is given to projects that increase the total number of affordable housing units, instead of to existing privately owned housing stock and then to publicly owned housing stock. The degree of funding that has already been committed to the project by nonstate entities and projects that demonstrate a strong readiness to proceed to construction are each added as preference criteria when evaluating HTF grant and loan applications. Commerce must use a separate application form for applications to provide homeownership opportunities. The housing preservation program and related provisions are added to statute. Any moneys received from repayment of HTF loans made from capital bond proceed appropriations may be used for providing preservation funding. Commerce reporting requirements from the capital budget, including final development cost data reporting for HTF-funded projects, are added to the HTF statute. Commerce must implement policies that require projects to remain as affordable housing for a minimum of: Ÿ 40 years for multifamily rental projects; and Ÿ 25 years for homeownership projects. Administrative Costs. The housing portfolio monitoring account is created as an appropriated account in the state treasury. Account expenditures must be used for costs associated with compliance and monitoring activities of HTF grant and loan recipient activity. Commerce must annually certify the administrative costs needed for compliance and monitoring activities, which may not exceed one-quarter of one percent of the annual contracted amount of state investment in the HTF program. The state treasurer must transfer the certified amount from the HTF account to the housing portfolio monitoring account on July 1st of each year. Commerce may spend up to 3 percent of the HTF appropriation for administrative costs associated with application, distribution, and project development activities. Commerce may spend up to an additional 1 percent from the HTF appropriation if the following conditions are met: Ÿ a spending plan of total anticipated administrative costs is submitted to the Office of Financial Management (OFM) and the appropriate fiscal committees of the Legislature; Ÿ the OFM director finds that the spending plan exceeds the funding available and provides written authorization for Commerce to spend up to an additional 1 percent; and Ÿ the OFM director notifies the appropriate legislative fiscal committees 10 days before authorizing the additional expenditures. Commerce may not charge other service and product delivery area fees for the HTF program. Loan Terms. Commerce must defer loan payments for projects with at least half of the units or beds serving households: Ÿ households at or below 50 percent of the area median income; Ÿ homeless persons, as defined in the homeless housing and assistance program; or Ÿ persons in need of permanent supportive housing. Loans subject to deferred payments must be payable in full at the end of the loan term or on the sale or change of use of the project unless otherwise negotiated with Commerce or the sale is to the original project sponsor, in which the loan may continue to be deferred. For all other loans, Commerce must define cash-flow loan terms and conditions. For projects that receive a low-income housing tax credit (LIHTC), the loan payment may not start until the LIHTC investor exits or the project refinances, but not before the end of the initial 15- year compliance period. Commerce must submit a report to the Governor and Legislature by December 31, 2020, with recommendations for loan terms and conditions for projects not subject to loan deferral.


ESSB 5946

SEPA/shelters & encampments

H Rules R

Nguyen

High

Concerns

Concerning the application of the state environmental policy act to temporary shelters and transitional encampments.

Permit actions to site a temporary shelter or transitional encampment are exempt from compliance with SEPA if the facility meets certain criteria. The facility must be used to provide temporary quarters for sleeping and shelter for people experiencing homelessness, include no more than 200 beds, may not allow the use of drugs or alcohol on the premises, and may not be located within 1000 feet of a school or early learning facility. However, a school, early learning facility, or controlling affiliate organization of the school or early learning facility has the option to approve siting a facility within the 1000 feet restriction. In addition, the local jurisdiction must have declared a state of emergency on homelessness and the facility may be used on the site for no more than three years.


SB 6212 (HB 2489)

Affordable housing/prop. tax

H Finance

Das

High

Support

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.

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.


SSB 6256 (SHB 2424)

Heating oil insurance

H Cap Budget

Wellman

High

 

Concerning the heating oil insurance program.

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.


SSB 6302

Home occupant load limits

H Rules R

Rolfes

Medium

Concerns

Prohibiting local governments from limiting the number of unrelated persons occupying a home.

Cities, towns, code cities, and counties may not regulate or limit the number of unrelated persons that may occupy a household or dwelling unit except for occupant limits on group living arrangements regulated under state law or on short-term rentals, and any restrictions on occupant load of the structure within the applicable building code.


SSB 6495 (HB 2809)

Essential needs & housing

H Approps

Walsh

Medium

Neutral

Regarding essential needs and housing support eligibility.

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.


ESSB 6574

GMHB & ELUHO powers, duties

H Rules R

Takko

Medium

 

Clarifying the respective administrative powers, duties, and responsibilities of the growth management hearings board and the environmental land use and hearings office.

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.


ESSB 6617

Accessory dwelling units

H Rules R

Liias

Medium

Concerns

Concerning accessory dwelling unit regulation.

Through ordinances, development regulations, and other official controls, cities and counties planning under the Growth Management Act (GMA): Ÿ 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; Ÿ 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 Ÿ 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.


OTHER CHAMBER BILLS

Bill Details

Status

Sponsor

Priority

Position


HB 1841 (SB 5877)

Crew size on certain trains

S Rules 2

Riccelli

Medium

Concerns

Establishing minimum crew size on certain trains.

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.


STREAMLINED SALES TAX

Bill Details

Status

Sponsor

Priority

Position


EHB 1948 (SSB 5862)

Warehousing & manuf. jobs

S Ways & Means

Entenman

High

Support

Supporting warehousing and manufacturing job centers.

This is the answer to issues dealing with a lack of streamlined sales tax mitigation funds.


SSB 5862 (EHB 1948)

Warehousing & manuf. jobs

S Ways & Means

Das

High

Support

Supporting warehousing and manufacturing job centers.

This is the answer for addressing gaps from lack of streamlined sales tax mitigation


TRADE, AEROSPACE & MFG

Bill Details

Status

Sponsor

Priority

Position


ESHB 2879

In-state manufacturing

S Rules 2

Vick

High

Support

Fostering economic growth in Washington by supporting in-state manufacturing.


HB 2895

Data centers tax preference

H Finance

Gildon

High

Support

Providing a tax preference for rural and nonrural data centers.


HB 2945 (SB 6690)

Aerospace B&O taxes/WTO

H Rules R

Sullivan

High

 

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.


SB 6690 (HB 2945)

Aerospace B&O taxes/WTO

S Ways & Means

Liias

High

 

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.


TRANSPORTATION

Bill Details

Status

Sponsor

Priority

Position


HB 1841 (SB 5877)

Crew size on certain trains

S Rules 2

Riccelli

Medium

Concerns

Establishing minimum crew size on certain trains.

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.


HB 2271 (SB 6094)

Transp. bonds/budget ref.

S Transportation

Duerr

 

 

Correcting a reference to an omnibus transportation appropriations act within a prior authorization of general obligation bonds for transportation funding.


ESHB 2322 (SSB 6497)

Transp. budget, supplemental

S 2nd Reading

Fey

 

 

Making supplemental transportation appropriations for the 2019-2021 fiscal biennium.


HB 2362 (SB 6652)

Local transportation revenue

H Trans

Ramos

 

 

Addressing local transportation revenue options.


EHB 2461 (SB 6452)

Transp. system goals/health

S Transportation

Riccelli

High

Concerns

Including health in the state transportation system policy goals.


HB 2913

Transportation revenue

H Trans

Fey

 

 

Concerning transportation revenue.


HB 2914

Transportation funding bonds

H Trans

Fey

 

 

Authorizing bonds for transportation funding.


SB 5970

Transportation funding bonds

S Transportation

Hobbs

High

Neutral

Authorizing bonds for transportation funding.


SSB 5972

Additive trans funding

S Transportation

Hobbs

High

Concerns

Concerning additive transportation funding and appropriations.


SB 6398 (HB 2688)

Transportation policy goals

S Transportation

Saldaña

 

 

Expanding transportation policy goals.


SSB 6497 (ESHB 2322)

Transp. budget, supplemental

S Rules 2

Hobbs

 

 

Making supplemental transportation appropriations for the 2019-2021 fiscal biennium.


SB 6652 (HB 2362)

Local transportation revenue

S Transportation

Nguyen

High

Concerns

Addressing local transportation revenue options.


Uncategorized Bills

No bills.

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