Week Two – January 17-21
Martin Luther King Jr. Day marked the start of the second week of the legislative session. Both chambers started the week by honouring late civil rights leader Dr. Martin Luther King Jr. by adopting resolutions on the floor. On Monday, Democratic leaders in both the House and the Senate gathered for media availability where they answered questions about their priorities and various bills moving through the legislative process. This week was again full of virtual committee hearings and executive sessions and included floor action on some priority bills.
Also on Monday, Gov. Jay Inslee issued an executive order seeking to promote diversity in public contracting, public employment, and public education while still complying with I-200. Passed in 1998, I-200 prohibits affirmative action. In 2019, there was a ballot initiative, I-1000, that the Chamber proudly endorsed, which would have overturned I-200 and allowed affirmative action at Washington state government entities. Unfortunately, I-1000 was narrowly rejected by 50.56% of the vote.
Long-Term Care
Employers throughout the state continue to watch closely as they struggle with the decision on whether to collect the tax in anticipation of legislative action. Under legislation passed in 2019, a 0.58% payroll deduction (or premium assessment) for all employees in Washington state is supposed to be collected by employers starting this year, on Jan. 1, 2022, to fund the Long-Term Care program.
Legislators continue to prioritize legislation that would delay the implementation of Washington State’s WA Cares Fund long-term care payroll tax. House Bill (HB) 1732 would delay implementation by 18 months and HB 1733 would establish voluntary exemptions. Both passed the House and have been referred to the Senate Ways and Means Committee. These bills are scheduled for public hearings today and executive action is scheduled tomorrow.
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.
Middle Housing
This week we also saw hearings on middle housing proposals including HB 1782/Senate Bill (SB) 5670, which is governor-request legislation, and HB 1981 sponsored by Rep. Gerry Pollet (D-46). All the proposals were heard in their respective chambers on January 18 and have the same goal of creating additional middle housing in areas typically designated for single-family homes. While there is broad support for the proposals, local jurisdictions expressed concerns with applying the same standards to all cities that meet the criteria.
Both HB 1782/SB 5670 were heard last week and have not yet been scheduled for executive action. HB 1981 has been scheduled for an executive session on January 26.
Sponsors of the bills are working with various stakeholders, and at this point, it is unclear which proposal will be the vehicle. It is clear this issue will continue to be a priority for the legislature.
Redistricting Transparency
On Wednesday, the Senate State Government and Elections Committee heard SB 5560, which aims to promote transparency in the redistricting process. The bill would require the Washington State Redistricting Commission to release the final plan to the public at least three days before a vote is taken. The bill is sponsored by Sen. Jamie Pedersen (D-43) in response to the commission’s failure to meet its deadline in 2021.
Transportation
Both Republicans and Democrats continue to express interest in passing a transportation revenue package this session, however, it could be challenging to reach an agreement in the short, 60-day session. Democrats are expected to release a proposal later this session. New Senate Transportation Chair Marko Liias (D-21) 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.
Last week, Liias and Ranking Member Sen. Curtis King (R-14) gave an interview about their 2022 priorities and what a transportation funding package might look like. You can watch that interview here.
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.
Deeper Dive: Some Key Bills We’re Tracking
Economic Development and Community Investment
HB 1015 – Creating the Washington Equitable Access to Credit Act
Big movement last week! 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 session the bill passed the House, 95-1, and made it all the way to the Senate floor. On Friday the bill passed the House, 97-0, and will now move to the Senate for further consideration.
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.
Housing Affordability and Homelessness
Both the House and Senate heard various proposals related to middle housing. The Seattle Metro Chamber is participating in various stakeholder groups related to this topic.
HB 1866 – Assisting persons receiving community support services through medical assistance programs to receive supportive housing.
Hearing completed — 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 who are enrolled in medical assistance. The bill was heard last week but has not yet been scheduled for executive action.
First Cutoff is Coming
Next week committee hearings and executive sessions will continue. This is a 60-day session and all bills that are not considered necessary to implement the budget (NTIB) must be out of their house of origin’s policy committee by February 3 to stay alive.
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
Have any questions or want to weigh in on a bill? Contact Director of Policy Mackenzie Chase.
