Week Eight – Feb. 28-March 4
Last week, the legislature passed two major cutoff deadlines, narrowing down the policy and fiscal bills still in play. Monday, February 28 was the opposite house fiscal cutoff, and Friday, March 4 was the opposite house floor cutoff. Legislators worked long hours through the weekend to ensure priority legislation made it through its opposite chamber fiscal committee. Both chambers then worked to pass bills off the floor in advance of the Friday cutoff. Floor debate must have begun on a bill by 5:00 PM on cutoff day for the bill to survive the cutoff deadline.
Legislators will continue to be busy during the final week of the 2022 legislative session as they reconcile differences made to legislation while in the opposite chamber, finalize budgets, and work necessary to implement the budget (NTIB) legislation. Bills that passed out of both chambers without having changes made to them will go directly to the governor’s desk for him to sign into law. However, bills that were amended in the opposite chamber will need to go back to the chamber of origin for a concurrence vote. The session is scheduled to end on Thursday, March 10. Read Seattle Times coverage on the end of session here.
Budgets
Now that all of the major cutoffs have passed, the focus will shift to supplemental budget negotiations. On Monday, House and Senate Republican and Democratic Leaders gathered for their respective media availability where they answered questions from the media and discussed their various opinions on the supplemental budget proposals. You can watch those here: Legislative Republican Leadership Availability, Legislative Democratic Leadership Media Availability. House and Senate Budget writers will spend the next few days negotiating the final 2022 Supplemental Operating, Capital, and Transportation Budgets. We expect to see the negotiated budgets early this week.
Transportation
Representatives met on the floor on Tuesday to discuss the Democratic transportation package, “Move Ahead Washington”, which would spend $16.8 billion dollars over the next 16-years (SB 5974). Original funding for this legislation used roughly $2 billion from a six-cent export tax on fuel. The export tax got significant push back from states like Oregon, Alaska, and Idaho as well as many in-state stakeholders. In the House version, the fuel tax has been removed as a funding source and replaced with an ongoing transfer from the public works account over the next 15 years. On Tuesday, the legislation was voted out of the House on party lines (54-43). On Wednesday, the Senate voted not to concur with the changes made in the House, which will likely push the proposal into a conference where House and Senate transportation leaders will negotiate a final package. Rather than the public works account, the Senate is looking at using funds from the Model Toxic Controls Act account to fill the gap left by removing the export tax on fuel. You can find more info on this revenue source from the Seattle Times here.
Masks
On Monday, Governor Jay Inslee announced relaxing indoor mask requirements during a press release due to the significant decrease in COVID-19 hospitalizations in Washington. Starting March 12, masks will no longer be required by the state unless inside a health care, long-term care, or correctional facility. The state’s Department of Labor & Industries is in the process of updating its guidance on masking in the workplace.
Individual counties and businesses may continue to require masks or proof of vaccination even though the state requirement has expired. Masks will continue to be required on public transportation, per Federal requirements.
Economic Development and Community Investment
HB 1015 – Creating the Washington Equitable Access to Credit Act
This legislation would create the Washington Equitable Access to Credit Program that would be housed at the Department of Commerce. The program would be funded by a B&O tax credit for contributions to the program. Commerce would then award grants to community development financial institutions (CDFIs) for lending or investing in historically underserved communities. The bill passed the Business, Financial Services, and Trade Committee unanimously. The committee adopted a striking amendment that made a few changes to the bill. Most significantly it shortens the program from 10 years to 5 years, reduces the match requirements for QLI, requires repaid loans to revolve in perpetuity, and has a cap on the interest rate for loans made with grant dollars at prime + 2%. The bill passed the Senate on Friday right before the cutoff with a vote of 46-2.
The bill will now head back to the House for a concurrence vote. The Chamber is a strong proponent of this bill because it will promote our top priority: an equitable economic recovery. We are very excited to see the bill pass the Senate, where the legislation stalled out in 2021. We gave public testimony encouraging the Business, Financial Services, and Trade Committee to pass the bill last month, and communicated with key senators on Friday, urging them to take up the bill before cutoff.
Housing Affordability and Homelessness
HB 1866 – Assisting persons receiving community support services through medical assistance programs to receive supportive housing
Legislation brought forward by Rep. Chopp treats chronic homelessness as a medical condition and proposes a healthcare solution. The bill creates the Apple Health and Homes Program to provide a supportive housing benefit for individuals that are enrolled in medical assistance. The bill passed the Senate on Thursday 30-17. The bill will now head back to the House for a concurrence vote. The Chamber supports this bill.
HB 1660 – Concerning accessory dwelling units
This legislation sponsored by Rep. Shewmake requires cities and counties to allow for the construction of accessory dwelling units (ADUs) within urban growth areas. The bill passed the Senate Committee on Housing & Local Government and was pulled from Rules to the Senate floor calendar; however, the bill did not pass the Senate before the cutoff.
Employment Law
SB 5873/SB 2031 – Concerning unemployment insurance, family leave, and medical leave premiums
This legislation sponsored by Senator Karen Keiser (D-33) in the Senate and Rep. April Berg (D-40) in the House proposes changes to the state’s Unemployment Insurance (UI) program. As a result of the Paid Family and Medical Leave (PFML) solvency issue, the PFML provisions in the bill have been removed from the bill. The remaining UI provisions in the bill would decrease the maximum social tax (social cost factor) for 2022 and 2023. The bill passed the House 95-0 and is headed to the governor’s desk to be signed into law.
SB 5649 – Modifying the Washington state paid family and medical leave act
This legislation, sponsored by Senator June Robinson (D-38), proposes a number of changes to the state’s PFML program. As a result of the recent solvency issues, there was an amendment in the Senate that includes: a Joint Legislative Audit and Review Committee (JLARC) audit, an Office of Financial Management (OFM) contract to hire a financial consulting firm to help with funding analysis and solvency projections, a legislative taskforce to develop recommendations for 2023 legislative session changes, and several other accountability measures. The bill passed the House 96-2 and will now head back to the Senate for concurrence.
HB 2076 – Concerning rights and obligations of transportation network company drivers and transportation network companies
This legislation introduced by Rep. Liz Berry (D-36) reflects years of conversations between the labour community and transportation network companies. The bill passed the Senate on Friday with bipartisan support 40-8. The bill will now head back to the House for concurrence.
HB 1868 – Improving worker safety and patient care in healthcare facilities by addressing staffing needs, overtime, meal and rest breaks, and enforcement
The bill, sponsored by Rep. Marcus Riccelli (D-3), requires Labor & Industries (L&I) to regulate and enforce hospital staffing committees and minimum staffing standards. It establishes minimum staffing standards for specific patient units and amends the meal and rest breaks and overtime provisions for health care employees and provides Seattle Metro Chamberistrative enforcement and a private cause of action for violations. The bill did not advance out of the Senate Ways and Means Committee, however, this legislation is not subject to cutoffs because it could be declared Necessary to Implement the Budget. The Seattle Metro Chamber’s Executive Committee voted to oppose House Bill 1868, the nurse staffing bill, with an acknowledgement that there is a nurse staffing shortage in Washington state and a commitment to pursuing other strategies to address the nursing shortage.
Important Dates:
Feb 3 – House of Origin Policy Cutoff
Feb 7 – House of Origin Fiscal Cutoff
Feb 15 – House of Origin Floor Cutoff
Feb 24 – Opposite House Policy Cutoff
Feb 28 – Opposite House Fiscal Cutoff
March 4 – Opposite House Floor Cutoff
March 10 Sine die; Last day of session