End of Session – March 7-10
The 2022 legislative session has officially adjourned. In the final week, legislators worked around the clock to finalize the budgets, work bills deemed necessary to implement the budget, reconcile differences between bills passed in the House and Senate, and honour legislators who will not be returning to their current roles in the Legislature. The Legislature adjourned around 11:30 p.m. on March 10 (click here to watch the Sine Die Ceremony).
Around midnight after Sine Die, Gov. Jay Inslee was joined by House and Senate Democratic Leadership for a joint Media Availability. They discussed the 2022 supplemental budgets and accomplishments during this session. Inslee stated that he was proud of the “big bold action” taken this year to combat environmental concerns, homelessness, and salmon.
Big Election Season Ahead
Looking ahead to the fall elections in Washington state, 25 of the 49 Senate seats and all 98 House seats will be up for election. The candidate filing deadline is May 20. The primary election will be on August 8 and the general election is on November 8. Many legislators have announced their retirement this session including Sens. Sharon Brown (D-8), Tim Sheldon (D-35), Reuven Carlyle (D-36), David Frockt (D-46), and Reps. Bob McCaslin (R-4), Laurie Dolan (D-22), Steve Kirby (D-29), Jesse Johnson (D-30), and Mike Sells (D-38).
Final Budgets
During this short 60-day sprint, the legislature passed more than 300 bills, which included the 2022 Supplemental Operating, Capital, and Transportation budgets. Since Washington State works on a two-year biennium, major spending is traditionally done during the first half of the biennium with small supplemental spending during the second.
The 2022 supplemental operating budget is notable for how much spending occurred in the second half of the biennium. In 2021, the legislature adopted a $59 billion Operating Budget and the 2022 Supplemental Operating Budget increased that spending by $5 billion. An amount of $2 billion will be transferred from the Operating Budget to fund new projects outlined in the $17 billion transportation spending package.
Other notable spending includes $351 million for long-term care facilities, $350 million for the Paid Family and Medical Leave Insurance Account to maintain fund solvency, $232 million for state employee wage increases and compensation changes, $100 million for assistance to businesses in hospitality industries, and $150 million to design and implement a state student loan program. You can view a full summary here.
The bipartisan 2022 supplemental Capital Budget makes historic investments to address the homelessness crisis in our state including more than $500 million in new funding for affordable and emergency housing. Other large investments in the supplemental capital budget include $251 million for water, $200 million for infrastructure, $100 million for broadband, $100 million for school seismic updates, and $98 million for behavioural health crisis stabilization. You can view a list of highlights here.
Finally, the legislature adopted a 16-year, $17 billion Move Ahead Washington transportation package. As introduced the package was funded in part by a controversial export fuel tax. Ultimately the export tax was removed from the proposal and replaced with annual transfers of $57 million from both the Public Works Assistance Account and the General Fund. Large spending items in the package include $3 billion for transit, $1.2 billion for the I-5 Columbia River Bridge, $1.3 billion for active transportation, and $512 million for electrification.
Final Update On High-Profile Bills
Aside from budgets and a transportation spending package, the legislature also worked on priorities including delaying the implementation of the Washington Cares Act by 18 months and clarifying police reform laws that passed in 2021.
Workplace ergonomics, middle housing, data privacy, and minimum nurse staffing standards in hospitals were also issues that received a lot of attention, however, they ultimately did not pass this session.
Final Updates on Some Key Bills We Tracked
Economic Development and Community Investment
HB 1015 – Creating the Washington Equitable Access to Credit Act
This legislation creates the Washington Equitable Access to Credit Program that will be housed at the Department of Commerce. The program will be funded by a B&O tax credit for contributions to the program. Commerce will award grants to community development financial institutions (CDFIs) for lending or investing in historically underserved communities. Up to 20% of each grant can be used to provide technical assistance. Under the bill, the program is set to last for five years. On March 8 the House concurred with the Senate amendments with a unanimous vote. The bill was delivered to the Governor for his signature on March 10. The Chamber was very supportive of this legislation and is thrilled the bill passed both chambers.
Pioneer Square – International District
The final Operating Budget included a direct appropriation of $1.5 million for the Pioneer Square-International District community preservation and development authority.
Community Reinvestment Account
The final Operating Budget created the community reinvestment account and appropriated $200 million into the account from the General Fund. The Department of Commerce can use the money in the account for a variety of community needs including expanding access to grants and loans for small businesses and entrepreneurs, financial literacy training, and other small business training and support activities.
SB 5980 – Providing substantial and permanent tax relief for small businesses
This legislation sponsored by Sen. Reuven Carlyle (D-36) increases the threshold where B&O taxes kick in from $28,000 or $46,667 (depending on the business) to $125,000. The bill passed the House on March 9. The Senate concurred with the House’s amendments on March 10 and the bill was delivered to Inslee’s desk on March 11.
Housing Affordability and Homelessness
HB 1866 – Assisting persons receiving community support services through medical assistance programs to receive supportive housing
This legislation brought forward by Rep. Frank Chopp (D-42) treats chronic homelessness as a medical condition and proposes a health care solution. The bill creates the Apple Health and Homes Program to provide a supportive housing benefit for individuals who are enrolled in medical assistance. On March 9 the House concurred with the Senate amendment with a vote of 87-9. The bill was delivered to the Governor on March 10. The Chamber supported this bill. The final Capital Budget also included $60 million for permanent supportive housing through this program.
HB 1660 – Concerning accessory dwelling units
This legislation sponsored by Rep. Sharon Shewmake (D-42) requires cities and counties to allow for the construction of accessory dwelling units within urban growth areas. The bill passed the House but died in the Senate. It is likely that this issue will be before the legislature again in 2023.
Employment Law
SB 5873/HB 2031 – Concerning unemployment insurance, family leave, and medical leave premiums
This legislation sponsored by Sen. Karen Keiser (D-33) and Rep. April Berg (D-40) proposed changes to the state’s unemployment insurance program. As a result of the Paid Family and Medical Leave solvency issue, the program’s provisions in the bill have been removed. The remaining unemployment insurance provisions would decrease the maximum social tax (social cost factor) for 2022 and 2023. The bill passed the legislature and was delivered to the Governor on March 7.
SB 5649 – Modifying the Washington State Paid Family and Medical Leave Act
This legislation sponsored by Sen. June Robinson (D-38) proposes a number of changes to the state’s Paid Family and Medical Leave program. As a result of the recent solvency issues, there was an amendment in the Senate that includes an audit, an outside contract to hire a financial consulting firm to help with fund analysis and solvency projections, a legislative task force to develop recommendations for 2023 legislative session changes and several other accountability measures. The Senate concurred with the House amendments and the bill was delivered to the Governor on March 11.
HB 2076 – Concerning rights and obligations of transportation network company drivers and transportation network companies
This bill introduced by Rep. Liz Berry (D-36) reflects years of conversations between the labour community and transportation network companies (TNCs). Ultimately, they were able to reach an agreement and the bill passed the legislature. The bill establishes minimum per-mile and per-minute rates for transportation network company drivers and provides drivers with paid sick leave and workers’ compensation coverage. The House concurred with Senate amendments to the bill with a vote of 56-42.
HB 1868 – Improving worker safety and patient care in healthcare facilities by addressing staffing needs, overtime, meal and rest breaks, and enforcement
The bill requires L&I to regulate and enforce hospital staffing committees and minimum staffing standards. It establishes minimum staffing standards for specific patient units, 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 passed the House but died in the Senate.
Coming Up Next
Now, the 300+ bills that successfully made it through the House and Senate will be delivered to Gov. Inslee to sign into law. Inslee has 20 days from the time a bill is delivered to his desk to take action. To see bills that the governor will be signing into law, click here.
Bills introduced during the 2021 or 2022 session that did not make it through the legislative process are now dead. For them to continue, those ideas will need to be reintroduced as new bills during the 2023-2024 biennium.