Week Five – February 7-13
We are now five weeks into session with only four more weeks to go. February 7, was the House of Origin Fiscal Committee cutoff when all bills needed to be voted out of their fiscal committees to stay alive. Following last Monday’s cutoff, legislators have been on the floor passing bills out of their respective chambers. Both House and Senate will continue to focus on floor action until the House of Origin cutoff on February 15.
COVID-19 Regulations
Gov. Jay Inslee held a press conference last Wednesday to provide an update on COVID-19 protocols. Starting February 18, the state is lifting outdoor mask requirements for groups of 500 or larger. Inslee also stated that he would be giving an update on indoor masking requirements this week.
Move Ahead Washington – Transportation Package
On February 8, House and Senate Democrats presented their proposed Transportation Funding & Projects Package, which they call Move Ahead Washington. Transportation chairs Rep. Jake Fey (D-27) and Sen. Marko Liias (D-21) facilitated the press conference announcing the plan. This $16.8 billion dollar package would make investments for the next 16 years. The plan includes: $1.2 billion for active transportation (including pedestrian transportation such as biking), $3 billion for transit, $2.6 billion for new projects, $1.4 billion to complete existing projects, $488 million for alternative fuel electrification, and $1.5 billion for the state ferry system. Move Ahead Washington is funded by revenue collected through the Climate Commitment Act, federal funds, a $2 billion, one-time transfer from the state general fund, and a new tax on fuel exported outside of the state of Washington.
Following the release of the package, the Senate Transportation Committee held a public hearing on SB 5974 on February 10 and February 11. Seattle Metro Chamber President & CEO Rachel Smith and stakeholders from all over the state of Washington provided public testimony on the package. You can watch the public hearing here, Rachel’s testimony starts 1 hour, 29 minutes into the recording. The legislation was scheduled for executive session in front of the Senate Transportation Committee today.
Fair Start for Kids – Childcare Subsidies
During the 2021 session, the legislature passed the Fair Start for Kids Act, raising subsidy reimbursement for childcare providers to a more competitive market rate at the 85th percentile. Washington establishes the market rate by using the federally required Market Rate Survey. Because of COVID-19, the 2021 Market Rate Survey was delayed and without legislative action childcare providers will receive subsidy payments tied to the 2018 market rate. The Seattle Metro Chamber of Commerce and about 50 additional organizations sent a letter last week urging legislators to fully fund rates based on the most recent market rate survey, with no phase-in, this session. The Chamber is committed to supporting strategies to keep childcare providers open and to prevent further exacerbating the shortage of care and the growing cost of childcare for working parents.
Health Care Staffing
In response to the pandemic, a number of bills have been brought forward to address healthcare workforce demands. HB 1868, sponsored by Rep. Marcus Riccelli (D-3) and co-sponsored by 43 additional legislators, intends to enact safe staffing standards in healthcare facilities. This contentious legislation passed out of House Appropriations on February 7 and was approved by the House, 55-43, yesterday. The bill will now head to the Senate for consideration.
Middle Housing
House Bill 1782, sponsored by Rep. Jessica Bateman (D-22), intends to create additional middle housing near transit areas traditionally dedicated to single-family, detached housing. Bateman sat down with Sen. Mona Das (D-47) for the Capital Ideas podcast to talk about the bill and the need to change laws to allow for more safe and affordable housing. The bill passed out of the Appropriations Committee last Monday by a very close vote. The House version of the bill will be the vehicle for this legislation this year, not SB 5670. HB 1782 was pulled from Rules and is on the House floor calendar where it can be pulled to the floor at any time for a vote. The Seattle Metro Chamber supports this bill as a key aspect of affordability.
Legislator Priorities
Senate Minority Leader John Braun (R-20) was joined by the House Minority Leader Rep. J.T. Wilcox (R-2) on February 7 for the Republican Leadership Media Availability where they discussed their party’s priorities, issues, and perspectives around the legislative session. Braun said the key priorities continue to revolve around restoring public safety, returning affordability to the state of Washington’s working families, and rebuilding trust in state and local government.
The Democratic Leadership Media Availability was also held on February 7. Majority Caucus Whip Sen. Emily Randall (D-26) and Assistant Majority Caucus Floor Leader Sen. Joe Nguyen (D-34) hosted the interview. The two said Democratic priorities are improving apprenticeship programs, insulin cost caps, addressing the fiscally insolvent Paid Family and Medical Leave program, climate change, gun control, and addressing homelessness.
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 for lending or investing in historically underserved communities. The bill passed the House early in session and has now been scheduled for a public hearing at 8 a.m. on February 17 in the Senate Business, Financial Institutions and Trade Committee. The Chamber is a strong supporter of this bill, which would help to advance an equitable, economic recovery from COVID-19. The Chamber will be weighing in to support the bill at Thursday’s public hearing.
Housing Affordability and Homelessness
Legislators continue to discuss the various middle housing proposals.
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 was pulled from Rules last Wednesday and is on the House floor calendar.
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 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 House, 96-2, on Sunday. The Chamber supports this bill.
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) proposes changes to the state’s unemployment insurance program. As a result of the Paid Family and Medical Leave solvency issue, the provisions pertaining to that program in the bill have been removed. The remaining unemployment insurance provisions in the bill would decrease the maximum social tax (social cost factor) for 2022 and 2023. The Senate version of the bill (SB 5873) will be the vehicle for this legislation this year. SB 5873 passed the Senate on Wednesday, 48-1, and is scheduled to be heard on February 16 in the House Labor and Workplace Standards Committee.
SB 5649 – Modifying the Washington State Paid Family and Medical Leave Act
This legislation sponsored by Sen. June Robinson (D-38) proposes 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 a Joint Legislative Audit and Review Committee audit, an Office of Financial Management 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 bill passed the Senate, 42-7, last Friday.
HB 2076 – Concerning rights and obligations of transportation network company drivers and transportation network companies
This legislation introduced by Rep. Berry (D-36), which reflects years of conversations between the labour community and transportation network companies. The House Transportation Committee was relieved of further consideration of the bill last Monday, and the bill was referred to Rules. On Saturday, the bill was pulled from Rules and is on the House floor calendar where it can be pulled to the floor at any time for a vote It is our understanding that the bill is not yet agreed to, but stakeholders continue to work toward an agreement of some kind.
Coming Soon: Senate Budget Proposal
Following the House of Origin cutoff tomorrow, legislation will go back to committee hearings to consider bills that have been passed by the opposite chamber. Bills passed by their house of origin will have until February 24 to pass the opposite house policy committee. We expect the Senate to release its Operating and Capital Budget proposals the week of February 14, and the House is expected to follow the week of February 21.
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