Session Kickoff Activities
The first week of the 2022 legislative session is complete. The week began Jan. 10 with most legislators participating remotely. The House started with Speaker Laurie Jinkins (D-27), delivering opening day remarks, where she stated the theme of the short session is about moving everyone in the state forward. The Senate session began with the swearing-in of new Senators John Lovick (D-40) and Yasmin Trudeau (D-27), the election of officers, and the adoption of new rules. You can watch the opening ceremony here. Following the opening day ceremonies both chambers adjourned and began virtual committee hearings.
On Tuesday virtual committee hearings in both the House and the Senate continued and Gov. Jay Inslee delivered his State of the State address. Following the State of the State address Republican leaders held a press conference where they discussed their priorities for the 2022 legislative session, which include:
- Restoring public safety
- Trust
- Affordability
Also on Tuesday, Simon Sefzik of Ferndale was named as Senator Doug Erickson’s replacement. Sefzick was sworn in on Tuesday following a 4-2 vote from the Whatcom County Council. At 22, he is the youngest Senator serving in Washington state.
Long-Term Care and Other Updates to Clarify Legislation Passed in Recent Years
In the first week, the legislature considered many important bills including HB 1732 that would delay the implementation of the Washington Cares Fund premium assessment by 18 months. This bill would delay legislation passed in 2019 that created the Washington Cares Fund, imposing a 0.58% payroll deduction (or premium assessment) for all employees in Washington state.
This bill is being fast-tracked! The bill was heard and moved out of committee in week one and can now be pulled to the House floor for a vote. In the meantime, employers are faced with the decision on whether to collect the tax. Under the 2019 legislation, payroll deductions were set to begin on Jan. 1, 2022. Both House and Senate leadership have stated that they intend to pass the bill in week two.
Fixing the Long-Term Care Act so that the tax and associated spending are fair and financially stable while preserving an opt-out provision for those who select a private plan, is one of the Seattle Metro Chamber’s legislative priorities this year.
Other important issues that were discussed in week one include police reform bills that focus on providing clarity for laws that passed in 2021.
Police Reform, Transportation
The new Senate Transportation Chair Senator Marko Liias (D-21) held a hearing on the Governor’s proposed transportation budget, SB 5689. House Transportation Chair Jake Fey (D-27) held a public hearing on the House companion. The Senate Transportation Committee also received an update on federal dollars and implementation of the Climate Commitment Act and Low-Carbon Fuel Standard (LCFS). Both the House and the Senate held public hearings on the Governor’s Operating Budget, SB 5693/HB 1816.
It remains unclear whether the legislature will be able to pass a transportation spending package this year, although both sides of the aisle are interested in spending money on transportation. Senate Transportation Chair Marko Liias has expressed the possibility of using dollars from the state’s operating budget, yet it remains unclear if the House will be supportive of that approach.
Passing a comprehensive transportation funding package for a more equitable, accessible, affordable, and resilient transportation system that promotes the mobility of people and freight remains a top priority for the Chamber this session.
Economic Forecast, Employment
The January 2022 Economic & Revenue monthly update report came out on Friday. The report showed major General Fund-State revenue collections for the December 11, 2021-January 10, 2022, were $260.9 million, 12.7% higher than forecasted in November.
Most of the surplus came from Revenue Act taxes including, B&O, sales, use, utility, and tobacco products. The report also showed that Washington state employment growth has been below the November forecast and Seattle-area consumer price inflation outpaced the national average. You can read the full report here. On Thursday, the House Finance Committee will hold a work session where they hear from the Economic and Revenue Forecast Council.
Deeper Dive: Some Key Bills We’re Tracking
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. Last session, the bill passed the House, 95-1, and made it all the way to the Senate floor. This session the bill has been reintroduced in the House Rules Committee where it can be pulled to the floor at any time for a vote.
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.
Housing Affordability and Homelessness
Gov. Jay Inslee released his plan for the 2022 supplemental budget where he proposes investing another $800 million to find solutions for individuals living without shelter and help those at risk of becoming homeless. This includes $320 million from the operating budget and $495 million from the capital budget, more than two-thirds of that would come from federal relief dollars. His plan focuses on keeping families in their homes and providing money to help families pay unpaid electric bills. He also proposed more money for the landlord mitigation fund to encourage landlords to work with tenants who receive rental assistance. Also included in his plan are proposals to secure more permanent housing and shelter facilities, expand supportive behavioural services, transition people to permanent housing, and restore a range of affordable housing types. The Chamber supports using federal recovery resources to make significant investments in evidence-based regional solutions to homelessness and weighed in last week in support of Gov. Inslee’s proposal. You can read Rachel Smith’s testimony here.
Last week, in the Senate Housing and Local Government Committee, the Lieutenant Governor’s Office gave a presentation on the state’s housing affordability crisis. You can view the presentation here.
HB 1782 – 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 all middle housing types on all lots zoned for detached single-family residential use and within one-half mile of a major transit stop. The bill had a public hearing today, January 18, at 10:00 AM in the House Committee on Local Government.
SB 5566 – Expanding eligibility for the independent youth housing program
This bill gives young adults who have exited the foster care system an additional two years to participate in the Independent Youth Housing Program. The bill was heard last week in the Senate Housing and Local Government Committee. On Thursday, the bill passed out of committee with bipartisan support and has been referred to the Ways and Means Committee.
HB 1866 – Assisting persons receiving community support services through medical assistance programs to receive supportive housing
This legislation brought forward by Rep. Frank Chopp 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 a public hearing on January 20 at 10:00AM in the House Health Care and Wellness Committee.
This week, committee hearings and executive sessions will continue. All bills without a fiscal impact—meaning a mechanism to generate or save revenue—need to be voted out of their policy committee by February 3 to stay alive this session.
