Week Three – Jan. 24-28
Week three of the short, 60-day legislative session is complete, and we are now a third of the way through session. Thursday is the House of Origin Policy Cutoff when all bills without a fiscal impact must be out of their policy committees to stay alive in 2022.
Legislator Updates
This week on TVW, Speaker Rep. Laurie Jinkins (D-27) discussed her priorities for the 60-day session, and Sens. Patty Kuderer (D-48) and Phil Fortunato (R-31), the Chair and Ranking Member of the Senate Housing & Local Government Committee respectively, discussed housing and homelessness legislation. You can view that video here.
On Monday, Sen. Reuven Carlyle (D-36) announced that he would not be running for re-election in 2022. A few days later, Rep. Noel Frame (D-36) announced her decision to run for the now-open Senate seat.
Long-Term Care
This week the Senate passed two bills related to WA Cares, which implemented a 0.58% payroll deduction (or premium assessment) for all employees in Washington state to fund the Long-Term Care program. Premium assessments were supposed to be collected by employers starting this year, on Jan. 1, 2022, but HB 1732 delays the implementation both of the premium assessment and benefits by 18 months to July 1, 2023. HB 1733 establishes additional voluntary exemptions for individuals who would be required to pay into the program but unable to access benefits, including individuals who work in Washington but reside out of state. On Thursday, Gov. Jay Inslee signed both bills into law.
Now that the delay is official – what should businesses do? Join the Chamber online at 2 p.m. Tuesday for a webinar briefing for employers. that will answer your questions:
- What to do if you did collect the premium?
- What to do if you did not collect the premium?
- What should you tell your employees?
- What should you tell employees who are asking about private insurance options and future opt-outs?
The expert panel that will be able to provide answers and guidance at this do-not-miss webinar. Free to all – regardless of Chamber membership. Register here.
Paid Family and Medical Leave, Unemployment Insurance
On January 26, the Employment Security Department’s Paid Family and Medical Leave advisory group met to discuss the trust fund and its long-term solvency. The presentation stated that the balance as of January 22 is $78.7 million, covering about the last four weeks of payments, and the program could be in deficit as soon as March. It is unclear at this time how the legislature will address this issue moving forward.
In addition, there are several proposed changes to the state’s unemployment insurance (UI) and Paid Family and Medical Leave programs.
SB 5873/HB 2031 – Concerning unemployment insurance, family leave, and medical leave premiums
Legislation sponsored by Sen. Karen Keiser (D-33) and Rep. April Berg (D-40) in the House seeks to make the following changes:
Unemployment Insurance:
- Decreases the maximum social tax (social cost factor) for 2022 and 2023
- 2022 reduced to 0.5% (current law is 0.75%)
- 2023 reduced to 0.7% (current law is 0.85%)
- Under current law, the social tax is graduated based on a multiplier for the employer’s specific rate class varying from 40% of the social tax up to 120%.
- Under the bill, for 2023 for small employers (10 or fewer employees), if the rate class is greater than 7, the rate class is 7 for purposes of the graduated rate multiplier only. The rate class multiplier for rate class 7 is 64%.
Paid Family and Medical Leave:
- The 2022 total premium rate (0.6%) and the employer’s portion of the total premium (26.78%) remains as calculated by the Employment Security Department (https://paidleave.wa.gov/estimate-your-paid-leave-payments/).
- The 2022 employee’s portion of the total premium was calculated as 73.22% by employment security (see link above). Under the bill, subject to appropriations:
- 31% is paid with the general funds
- 42.22% is deducted from the employee’s wages
The Senate bill was heard in the Senate Ways and Means Committee January 24 and the business community voiced support of the bill. Executive action was scheduled for today.
SB 5559 – Concerning verification for use of paid sick leave
This legislation, sponsored by Sen. Kevin Van De Wege (D-24), would prohibit an employer that does not pay at least 85% of an employee’s health insurance from requiring a statement from a health care provider to verify the use of paid sick leave. The bill was heard last week in the Senate Labor, Commerce, and Tribal Affairs Committee and is scheduled for executive action on Wednesday.
Tax Relief
Of interest this week, Sen. Mona Das (D-47) introduced legislation, SB 5932, that reduces the sales tax rate from 6.5% to 5.5%, providing approximately $2 billion in tax relief to Washingtonians.
Deeper Dive: Some Key Bills We’re Tracking
Housing Affordability and Homelessness
This week legislators continue to discuss the various middle housing proposals. The Seattle Metro Chamber of Commerce is participating in various stakeholder groups related to this topic.
HB 1782/SB 5670 – Creating additional middle housing near transit and in areas traditionally dedicated to single-family detached housing
This governor request legislation seeks to restore affordable housing by requiring cities to authorize the development of middle housing types on all zoned for detached single-family residential use and within one-half mile of a major transit stop. A substitute version of the Senate bill passed out of committee last Thursday and has been referred to Ways and Means. The House version is scheduled for executive session on Tuesday.
HB 1981 – Concerning local government planning
This legislation introduced by Rep. Gerry Pollet (D-46) seeks to improve the availability of middle housing by allocating $25 million from the General Fund to the Department of Commerce to provide grants to cities and counties for this purpose. The bill is currently scheduled for executive action on Tuesday.
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-43) 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 that are enrolled in medical assistance. The bill is scheduled for executive action on Wednesday.
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 for lending or investing in historically underserved communities. Last week, the bill was referred to the Senate Business, Financial Services & Trade Committee.
The Chamber strongly supports the passage of HB 1015, because we believe it could be a key step in advancing an equitable economic recovery in Washington. The Chamber will work to ensure the bill passes the Senate, where the legislation stalled out last year.
Employment Law
HB 2076 – Concerning rights and obligations of transportation network company drivers and transportation network companies
Legislation introduced by Rep. Liz Berry (D-36) reflects years of conversations between the labour community and transportation network companies (TNCs). The bill was heard last week in the House Labor & Workplace Standards Committee and is scheduled for executive session next week on Wednesday. It is our understanding that the bill is not yet agreed to, but stakeholders continue to work toward an agreement.
Cutoffs Coming Fast and Furious
After the policy cutoff on Thursday, the focus will shift to budget committees. The budget committees are scheduled to meet over the weekend leading up to the fiscal cutoff on February 7. From there the House and Senate will be on the floor voting bills out of their respective chambers. The House of Origin cutoff, when bills have to have cleared the Chamber that the bill was introduced in, is February 15.
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
