Week 14

April 23, 2019

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"Will we finish on time?" is the big question on the legislative campus this week.  Moods swing daily between optimism and doom. While most lawmakers returned home for the weekend, budget negotiators remain behind aiming to produce an agreement on revenue and spending that can muster sufficient votes in one week.

 

Wednesday, April 17th was the last day to pass a bill off the floor of the opposite house. On floor cut-off days, anticipation surrounds the bill each majority caucus will choose to be their Special Order of Business, the last bill they will advance just prior to the 5pm cut-off. The Senate Democratic Caucus picked HB 1638, the ever-controversial MMR vaccine exemption bill sponsored by Representative Paul Harris (R-Vancouver). Seeing it was next on the order of consideration, the Senate Republican caucus engaged in procedural efforts to run down the clock by proposing other bills for immediate consideration, calling for roll call votes, and challenging the Lieutenant Governor. With minutes to spare, Senate Democrats pulled HB 1638 and chose a different bill for the Special Order. After the dinner break, Senate Democrats brought HB 1638 back and worked long into the night to pass it. This bill will certainly be an acrimonious topic of conversation long past the pending concurrence and signature. The bill is to be implemented 90 days after signing. 

 

On Tuesday, April 16th, the Senate passed HB 1087 sponsored by Rep. Laurie Jinkins (D-Tacoma), establishing the Long-term Care Services and Supports Trust Program. Washington is the first state in the nation to establish an employee-paid insurance benefit to off-set the costs of long-term care. The program will provide up to $36,500 in lifetime benefits for eligible beneficiaries.  These benefits could be applied to the cost of long-term care including things like installation of a wheel-chair ramp, rides to the doctor, delivered meals, or reimbursement to unpaid family caregivers.  To fund this, all employees who work at least 10% of a full time work schedule in Washington will automatically receive a 0.58% payroll deduction starting in 2022. An employee earning $50,000 per year would pay approximately $24 per month, subject to premium increases. Advocates say this fills a need for working people who will not otherwise be able to afford long term care. Critics call it a $1 billion payroll tax on employees who have not indicated they want such a program. The bill awaits concurrence.

 

On Wednesday, April 16th the Senate passed HB 1196 sponsored by Representative Marcus Riccelli (D-Spokane), appealing to Congress to implement Pacific Daylight Savings Time year-round. The Oregon Senate has passed a bill that awaits confirmation in their House, and California voters approved a referendum last fall pending implementation by the California Legislature. Leaders in British Columbia are also said to be considering a change. Supporters point to benefits of making the switch, including a potential 20% reduction in crime, particularly among juveniles. The current treatment of Daylight Savings Time is not a benefit to either agriculture or energy conservation. Rather, it dates back to a fuel saving measure implemented by Kaiser Wilhelm during World War 1.

 

On Thursday, April 18th former Governors Dan Evans (R), Gary Locke (D), and Christine Gregoire (D) testified before a joint House and Senate committee in support of Initiative 1000, an initiative to the Legislature. I-1000 would replace the 1998 voter-approved ban on affirmative action, I-200. That initiative, led by former Republican gubernatorial candidate John Carlson, banned race or gender-based government discrimination or preferential treatment in public employment, education, and contracting thus outlawing affirmative action. If passed, the initiative would again allow the state to use affirmative action to address discrimination or underrepresentation by race, gender, sexual orientation, disability, and veteran status, so long as those factors are not the sole qualifying reason for choosing an otherwise less-qualified applicant. The initiative also creates a Governor's Commission on Diversity, Equality and Inclusion responsible for monitoring and enforcing state compliance.

 

Supporters of I-1000 are numerous and include past and current Democratic public officials, the labor community, the NAACP, El Centro De La Raza  and the King County council. These advocates suggest I-1000 helps to level the playing field for people affected by generations of prejudice. Opponents include John Carlson, Tim Eyeman, and Ward Connerly, a former University of California regent who has led anti-affirmative action efforts in several states since the 1990s. Joining them in opposition were Asians for Equality, a group charging I-1000 will promote discrimination against the Asian community by supporting other minority groups they allege are less qualified for opportunities including college admissions .

 

The Legislature may approve, reject, or pass an alternative policy. If they reject it or take no action during session, it will automatically go to the fall ballot. The legislature could also suggest an alternative which would be featured on the ballot along-side I-1000. Either of these situations will likely make for voter confusion with both sides alleging discrimination.

 

Non-compete clauses have been a priority of the Labor Community for a decade. On Wednesday April 17th, HB 1450, sponsored by Representative Derek Stanford (D-Bothell) and championed by Sen. Marko Liias who sponsored the Senate companion, finally passed both chambers. This bill prohibits non-compete restrictions for workers earning up to $100,000 per year, restricts non-competes for longer than 18 months, and prohibits employers from subjecting low-wage workers to moonlighting restrictions. Proponents of the bill point to how the broad use of these types of agreements make it impossible for some workers to find work after leaving their employment.  The final bill was an agreement negotiated over the last two years between businesses and worker advocates. 

 

The #MeToo movement, and the subsequent removal of several legislators from office, has shined a bright light on sexual harassment and violence, even in the marble halls of Olymia. This year, the Washington State Legislature passed an unprecedented wave of bills to address these issues including, HB 1692, sponsored by Representative Laurie Jinkins (D-Tacoma) and HB 2020, sponsored by Representative Laurie Dolan (D-Olympia) protecting agency and legislative employees who make claims or witness workplace sexual harassment or stalking from public disclosure;  HB 2018, sponsored by Representative Melanie Morgan (D-Tacoma) prohibiting sexual harassment and discrimination by legislators and legislative branch employees under the Ethics Act;  SB 5861, sponsored by Senator Manka Dhingra (D-Redmond) directing the Public Disclosure Commission to create and require a training course for lobbyists on the legislative code of contact; HB 1056, sponsored by Representative Gina Mosbrucker (R-Goldendale) creating a Joint Legislative Task Force on domestic violence and workplace resources to identify the role of other workplaces in helping to curb domestic violence; SB 5258, sponsored by Senator Karen Keiser (D-Kent) protecting isolated workers from sexual assault and harassment by requiring certain employers of isolated workers adopt sexual harassment policies, provide sexual harassment to all staff and supervisors, and provide panic buttons to staff workers who work alone or without other employees present in the area.

 

Monday April 15th was the last day for presidential campaigns to release first quarter totals for fundraising and available funds to the Federal Election Commission.  Inslee for America revealed this week it has raised over $2.25 million since Washington's governor announced his candidacy on March 1. His campaign boasts 75% of contributions are $25 or below and 95% of donations are $100 or under. In these short months ahead of the June debates, Inslee has more cash available than Julian Castro and Andrew Yang ($1.1 and $1.7 million respectively) but trails Harris ($12 million), O'Rourke ($9.4 million), Buttigieg ($7 million), Warren ($6 million), and Gillibrand ($3 million). In the first quarter, Bernie Sanders raised $18.2 million, 84% from contributions under $200. Combined with transfers from prior campaign accounts, he has more than $26 million available. Incumbent President Donald Trump reported raising $30 million January through March, giving him $40 million, more than a year and a half before election day. 

 

Inslee, who on CNN last week he "will make defeating climate change the No. 1 priority of the United States," celebrated several more legislative wins this week.  Last week, the environmental community successfully passed SB 5116 sponsored by Senator Reuven Carlyle (D-Queen Anne) requiring all electric utilities in Washington to transition to a 100% carbon-neutral electricity supply by 2030 and to 100% carbon-free electricity by 2045. This week, the Senate passed HB 1112 sponsored by Representative Joe Fitzgibbon (D-West Seattle) directing the Department of Ecology to issue rules phasing out refrigeration gases, as well as HB 1444 sponsored by Representative Jeff Morris (D-San Juan Islands) which sets tighter energy-efficiency standards for appliances including electric water heaters, computers, and computer monitors. Also passed in the Senate was HB 1257 sponsored by Representative Beth Doglio (D-Olympia) a "green buildings" bill that sets an efficiency performance standard for large commercial buildings. All await concurrence.

 

Attorney General Bob Ferguson expressed frustration this week that the legislation to abolish the death penalty in statute has hit a wall for this session. SB 5339, request legislation from Attorney General Ferguson, would replace the death penalty for those convicted of aggravated first-degree murder with life in prison without the possibility for parole. This would codify statute with the October 2018 Washington State Supreme Court decision that found the death penalty law to be unconstitutional. House Leadership has said that though the Attorney General provided "considerable support," the "death penalty is illegal at this time" and delaying SB 5339 in order to prioritize other bills would not cause any harm. Sponsor Senator Reuven Carlyle, boldly joined Ferguson in blaming Speaker Frank Chopp (D-Seattle), saying "This decision rests squarely and unequivocally on the desk of the Speaker. It's his choice, his decision, and his silence has been deafening." Other lawmakers pointed to cutoff week decisions to prioritize floor time to other priorities.  If the bill had become law, legislators would not have been able to amend the death penalty statute.

 

 

 

April 28, 2019

Last day allowed for regular session under state constitution.

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* After the 94th day, only initiatives, alternatives to initiatives, budgets and matters necessary to implement budgets, matters that affect state revenue, messages pertaining to amendments, differences between the houses, and matters incident to the interim and closing of the session may be considered.

 

Submitted by Trent House

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Week 13 - 14

April 15, 2019

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The Washington State Legislature is working especially long hours this week.  Wednesday, April 17th is the deadline for policy bills to be passed off the floor in the opposite house. In the last 5 days, a number of priority bills including bills protecting the environment, working families, gun responsibility and victim protection and public safety have passed in their respective chambers.  After Wednesday, the House and Senate will take concurrence votes and be focused on negotiating the budgets.  

 

This is also the point in session when title-only bills are introduced to hold the place in the process for bills yet to come, and the caucuses reach for seldom-used procedural rules to resurrect bills that are struggling to survive. 

 

This occurred twice last week, once on a yet-to-be-agree-on bill on data privacy in House Appropriations and again on the Senate floor, when majority Senate Democrats brought to the floor HB 1575 sponsored by Representative Monica Stonier (D-Vancouver). This bill is a top priority for labor as a response to the 2018 Janus ruling in the United States Supreme Court. In that case, the court ruled that public-sector employees cannot be compelled to financially support unions, including fees paid by nonmembers for collective bargaining.  HB 1575 modifies how public-sector employees can join or leave unions and protects unions from liability from collecting past fees. Supporters say the bill will help ensure that public-sector employees are aware of their union's benefits before opting out. Critics argue the bill sidesteps the Janus ruling by making it easier to join a union, but more difficult to leave. On Thursday, Senate Republicans delved into the rules to express their strong opposition to this bill. The Senate rules state that when a bill is placed on second reading, it should be read in its entirety. In practice, the Secretary of the Senate will read a few lines before the President cuts him off and instructs to skip to the last line. Minority Leader Senator Mark Schoesler (R-Ritzville) asked HB 1575 be read in its entirety, which took several readers 40 minutes to perform. After the next 90 minutes of amendments, minority Floor Leader Senator Shelly Short (R-Addy) denied suspension of the rules, forcing the bill to be set aside. It did ultimately pass the next day 25-21. 

  

This week Senate Democrats brought the Capital Budget $3 billion bond bill, HB 1101, to the floor.  This bill takes a supermajority to pass and it became immediately clear that Republicans would not give the votes needed to pass the bill. Customarily, the capital bond bill comes to a vote after the capital budget is agreed upon in the very last days of session. The bill passed unanimously out of the House, but Senate Republicans admit they need to preserve their only leverage and will only vote for it after they have agreed on a capital budget. HB 1101 failed to garner the required constitutional majority and will be reconsidered.

 

Governor Jay Inslee is on the presidential campaign trail again this week, commanding between 0-1% in Democratic primary polls. Earning 1% in three approved polls has now qualified him for the June debates alongside household names like Biden, Sanders, Harris, O'Rourke, and Buttigieg. Governor Inslee has remained discreet about his fundraising status, but leading candidates polling as high as 39%, have released impressive first quarter fundraising totals.

 

Inslee has made climate change the focus of his campaign, pointing to Washington state as a model for the country. The success of his climate agenda this session is critical and received a big boost this week. The Governor's clean energy request legislation SB 5116 sponsored by Senator Reuven Carlyle (D-Queen Anne) passed the House on April 11th and will now return to the Senate for concurrence. The bill requires all electric utilities in Washington to transition to a 100% carbon-neutral electricity supply by 2030 and to 100% carbon-free electricity by 2045. This legislation passed the House on party lines with one Democrat crossing the aisle to oppose.

 

Inslee has also advertised the publication of his first two books this week; for adults he has produced "Apollo's Fire -  A great look at how to ignite America's clean energy economy to defeat climate change"; and for children "Elvis and the Elves - the story of Elvis' attempts to get his friends to help stop the coal smoke before their snowman friend, Sammy, melts into nothing."

 

SB 5323, the statewide plastic bag ban sponsored by Senator Mona Das (D-Kent) continues to advance. To provide fairness between small independent grocers and large chain grocers, a store must charge an 8-cent taxable pass-through fee for paper or thick plastic bags. Environmentalists hope the statewide ban will help keep single use plastic bags out of the ocean and recycling stream. Grocers look forward to statewide conformity preempting local government ordinances. The paper industry contends a paper bag fee will lead to a decreased demand for bags that will in turn hurt rural pulp and paper jobs. The bill has been passed out of the House Rules committee and is ready for a vote on the house floor. 

 

The capital gains discussion continues in Olympia. Until now, opinions on the proposed capital gains tax could be divided into three general camps: House, Senate, and opposition. The House calls their capital gains proposal the "Extraordinary Profits Tax." This 9.9% tax on capital gains above $100,000 for individuals and $200,000 for joint filers funds the budget. The Senate version, the "Fix our Tax Code Plan" calls for an 8.9% tax on profits of capital-gains earnings above $250,000 for individuals and joint filers. The Senate plans to use this new revenue to provide tax cuts for working families, small businesses, senior property owners, and to eliminate the sales tax on items such as diapers and OTC medications. Then of course are the opponents of the capital gains tax proposals altogether. 

 

When the Senate proposal (5961) was heard in the Senate Ways & Means Committee on Monday, a fourth camp turned out to support the concept of a capital gains tax: the Washington Education Association and Washington Paramount Duty, the parent organization formed to demand school funding in the McCleary era. They brought a new message; pass a capital gains tax to fund education. Cue the heated division between education advocates and supporters of the already proposed Senate spending. 

 

This is not an entirely new idea. In October, Superintendent of Public Instruction Chris Reykdal pitched an 8% capital gains to raise $1 billion annually, half of which would replace and buy down the state property tax by 35 cents per $1,000 of assessed valuation in hopes of uncapping the levy lid for districts. His proposal used a much lower threshold than the House and Senate plans. Single filers who make more than $25,000 from capital gains annually or couples who make over $50,000 would pay tax on the gains. The other half of the revenue would fund other K-12 priorities including special education, career and technical education, professional education, school nurses and counselors, and expanded learning opportunities.

 

Submitted by Trent House, AFA Lobbyist

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Week 11 Recap & Bill Tracker

April 2, 2019

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With one month remaining in the legislative session, we have now entered budget time. In the coming weeks, the Senate and House must find agreement between their budget proposals.

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Senate budget writers rolled out their Operating Budget last Friday. The Operating Budget was heard Monday and put to a floor vote later this week. The proposal, SB 5153, is a $52.2 billion plan, a $7.5 billion increase over the last biennium. 

Whereas the House proposes $2.36 billion in new spending, the Senate comes out to approximately $1.6 billion in new spending. Like the House proposal, Senate budget writers include major investments in education and behavioral healthcare.  And like the House writers, Senate Democrats say additional revenue will be needed to fund tax cuts in SB 5961 which creates a "Working Families Tax Credit," tax reductions for small business, senior property tax reductions, and the elimination of sales tax on items such as diapers and OTC medications. 

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To pay for it, the Senate unveiled their own $780 million capital gains tax (SB 5961). The revenue plan also includes an $878 million graduated Real Estate Excise Tax (SB 5991). And like their House counterparts, Majority Democrats propose the elimination of tax preferences for nonresident sales tax and travel agents/tour operators in SB 5997 ($133.7 million), and drug resellers in SB 5998 ($78.7 million). To fund wildfire prevention and fire suppression, SB 5596 calls for a tax increase on property auto and casualty insurance from 2-2.5% ($90.6 million). These proposals have not yet been scheduled for public hearing. 

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Also last week, Senate budget writers released their proposed $4.6 billion Capital and $10 billion Transportation plans.

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House budget writers rolled out their budget plans on last Monday. In their version, the 2019/20 Operating Budget (HB 1109) spends $52.811 billion, an 18.2% increase over the last biennial budget. Of the $8.150 billion increase, $5.834 billion maintains current services and $2.316 billion will fund new policies and new/increased spending that includes behavioral health, homelessness and housing, orca recovery, and collective bargaining agreements. The budget was quickly heard in committee and passed the floor in a party line vote last Friday night.

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Though current revenue exceeds expectations by $5.565 billion, House Democrats say it will not be enough to maintain current spending associated with McCleary and have proposed a three-legged tax plan. The first leg is a graduated capital gains tax (HB 2156), termed the "Extraordinary Profits Tax." The second leg is the end of tax preferences for travel agents and tour operators, bullion, and replacing the out-of-state sales tax exemption with an opportunity for refund after sale (HB 2157).

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The third leg will affect far more people across the state. In order to provide post-secondary education for students of families earning less than $60,000 per year, HB 2158 applies a 20% B&O tax surcharge on businesses in nearly every field (HB 2158) including engineering, architecture, legal services, insurance carriers, financial services, medical services, software publishing, scientific research, internet shopping, and telecommunications. If a business is likely to be/hire an employee that is highly skilled with a post-secondary education, the B&O tax is almost certainly subject to an increase from the current 1.5% to 1.8%. The bill also imposes a 33.3% B&O tax surcharge on the income from service and other activities for advanced computing businesses with worldwide gross revenue between $25-100 billion. Advanced computing businesses with worldwide gross revenue of over $100 billion. There are two Washington businesses that fit this description, Microsoft and Amazon. Microsoft is supportive, Amazon is not.  Both would be levied with a 66.66% B&O tax surcharge. This drew considerable attention in the House Finance Committee on Friday and is expected to receive executive action next week.

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March 22-28

The Washington State Patrol announced this week they will need to double the size of Governor Jay Inslee's security team on account of his presidential bid. The cost will be more than $4 million over the next two years if he remains in the race. Should he drop out prior to the start of a new fiscal year in July, the cost will be reduced to $1.5 million. Inslee has rejected the idea that his campaign should pay, saying every governor is entitled to State Patrol protection whether for official or political business. Pursuant to Federal Election Commission rules, his campaign is paying for rental cars and use of state vehicles for campaign purposes both inside and outside of the state. To become eligible for the first of the DNC debates in June, Inslee must either receive 65,000 donations from individuals including donations from at least 20 states or earn at least 1% in polling at either the national level or in the four early primary states: New Hampshire, Iowa, Nevada, and South Carolina.

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HB 1074, sponsored by Representative Paul Harris (R-Vancouver) is on its way to Governor Inslee for signature. This bill makes Washington the 9th state to raise the smoking age from 18 to 21. Selling either vape or tobacco products to a minor will result in a gross misdemeanor. While public health advocates celebrate, retail advocates have expressed concern over the impact of smokers who will no longer purchase other items when they stop for a pack of cigarettes. The bill received bipartisan support with two Democrats (Salomon and Hasegawa) joining ten Republicans in opposition. Loss of tobacco and vape sales to 18, 19, and 20-year-olds will cost the state $8.9 million in tax revenue in the 2019/20 biennium. Public health advocates say preventing young people from smoking will save the state millions per year in healthcare costs.

 

Majority Democrats have taken action to preserve elements of the Affordable Care Act in Washington, regardless of changes at the federal level. Sponsored by Representative Lauren Davis (D-Shoreline) and Senator Annette Cleveland (D-Vancouver) HB 1870 and SB 5805 will prevent health insurance plans sold in Washington from rejecting/limiting/denying coverage for people with pre-existing conditions. The bills also prevent plans from dropping plan members from coverage and applying an annual or lifetime limit on a variety of services. Votes in both the Senate and House were on party lines. An amendment to apply an emergency clause was added in the Senate, so the House will confer before it is sent to Governor Inslee for a signature.  At the moment of signature, the bill will be in effect.