Bellevue Chamber Of Commerce:

Press release from the Bellevue Chamber of Commerce:

2022-01-24

Olympia

Jan 24, 2022

Week Overview

General Update

Last week was another busy week filled with committee hearings on bills and some floor action in both chambers on some early action bills, including the delay of the Washington Cares Fund, the state’s long-term care program created by 2019 legislation and funded by a new payroll tax. A number of logistical and policy concerns arose as roll-out drew near, and Governor Inslee and legislative leadership agreed to introduce and support legislation that would delay implementation to give time to work out these details. This 18-month proposed delay is on the fast track, with the House voting the bill off their Floor Wednesday and, according to Senate Majority Leader Andy Billig during a media briefing this week, the Senate should do the same by the end of next week. See the ‘long term care’ section below for more details.

955 bills have been introduced so far this session (501 in the House and 454 in the Senate). This is in addition to all of the bills that failed to pass last year during the first year of the biennium and were retained in their current status from last session. While many bills reintroduced from last session never start moving again, some of them do pick up where they left off and keep moving through the process

The pace of new bills being introduced did slow dramatically this week. This is expected because the first cutoff of session is less than two weeks away on February 3rd. Bills must be voted out of the policy committee in their house of origin by that date or they will be considered dead, unless they are deemed Necessary to Implement the Budget (more on NTIB later). This means there is a great sense of urgency to get bills heard and voted out of committee quickly. A majority of bills will not make it past the first cutoff.

Last Monday was Martin Luther King, Jr. Day. In normal times, this is a big day for advocates to come to Olympia. Session doesn’t stop for holidays, so on holidays the campus would always be crowded with big hearings and lobby days. Even though that bustle on the capital campus doesn’t happen in virtual session, the legislature still took time to honor Dr. King on his birthday, with both chambers passing resolutions (SR 8634 and HR 4635) during floor sessions dedicated to Dr. King, his legacy and his call for action (Senate Floor Session Honoring Dr. King and House Floor Session).

On Thursday, we marked the second anniversary of the first case of COVID-19 confirmed in our state and the nation. Dr. John Wiesman, the former Secretary of Health(DOH) in Washington State, reflects on the moment the first case of COVID-19 was confirmed here in Association of State and Territorial Health Officials (ASTHO’s) podcast. According to DOH Secretary of Health Umair Shah, “We have now identified over one million cases in the state of Washington and have sadly lost over ten thousand lives.”

Click here to watch this week’s TVW Week in Review, which provides a good wrap-up of the past week in Olympia.

Priority Areas

Climate Change and the Environment

Rep Lekanoff introduced HB 1753 on behalf of the Governor, and it requires state agencies that administer funds from certain accounts created by the Climate Commitment Act to offer consultation to federally recognized tribes who tribal resources may be affected by the award of funds form the accounts. It requires applicants for funding from certain Climate Commitment Act accounts to engage in a preapplication process with all federally recognized tribes within the project area. The bill was heard on January 13th in the House Environment & Energy committee.

Sen Nguyen and Rep Hackney sponsored SB 5722/HB 1774 on behalf of the Governor and it requires the Department of Commerce to adopt state energy management benchmarking requirements for specified tier 2 covered buildings by December 1, 2023 and rules for performance standards by December 31, 2030. It also requires Commerce to evaluate benchmarking data to determine energy use and greenhouse gas emissions averages for building type by July 1, 2029. SB 5722 was heard on January 13th in the Senate Environment, Energy & Technology committee. HB 1774 has been referred to the House Environment & Energy Committee but has not been scheduled for a hearing.

Rep Ramel and Sen Liias introduced HB 1767/SB 5666 on behalf of the Governor, and it authorizes the governing body of municipal electric utilities and public utility districts (PUD) to adopt a targeted electrification plan that establishes a finding that utility outreach and investment in the electrification of customers’ end use equipment in residential and commercial buildings will provide net benefits to the utility or PUD. It authorizes municipal electric utilities and PUDs, upon the adoption of a targeted electrification plan, to offer incentives and establish other programs to accelerate the targeted electrification of homes and buildings for their customers. HB 1767 was heard on January 18th and passed on January 20th in the House Environment & Energy committee. SB 5666 was heard on January 19th in the Senate Environment, Energy & Technology committee.

Rep Duerr and Sen Liias sponsored HB 1770/SB 5669 on behalf of the Governor and it updates the minimum State Energy Code requirements for residential and nonresidential construction. It requires new buildings to be net-zero ready and the State Building Code Council to adopt statewide residential reach code and requires the Department of Commerce to develop a proposal covering the technical provisions. Additionally, it preempts local residential codes with the Washington State Energy Code and the Statewide Residential Reach Code. HB 1770 was heard on January 19th, amended and passed on January 21st in the House Local Government committee. The bill was substantially changed and a summary of the amendment can be found here. SB 5669 was referred to the Senate Environment, Energy & Technology committee but has not been scheduled for a hearing.

Housing

Accessory Dwelling Units (ADUs)

Rep Gregerson sponsored HB 1337, which originally incentivized the development of accessory dwelling units (ADUs). The bill was introduced in the 2021 session but did not pass so has been reintroduced. A proposed substitute bill was heard in the House Local Government committee on January 12th, and it requires cities and counties to adopt 14 specified requirements related to ADUs within urban growth areas, except to the extent that doing so would violate any existing laws or regulations related to public or environmental health, safety, or welfare. It also exempts action taken by cities and counties in complying with the provisions of the bill from challenges under the GMA and SEPA. The bill was scheduled for executive session on January 21st, but no action was taken.

Rep Shemake and Sen Liias introduced HB 1660/SB 5648, which prohibits owner occupancy requirements from being imposed on a lot with an ADU unless an ADU on the lot is being used for short-term rental, and sets deadlines for local jurisdictions to comply with this prohibition. HB 1660 was heard on January 12th, amended and passed on January 21st in the House Local Government committee. The bill was substantially changed and a summary of the amendment can be found here. SB 5648 is scheduled for a hearing in the Senate Housing & Local Government committee on January 25th.

Rep Pollet sponsored HB 1711 and it allows cities and counties to offer incentives for the development of ADUs, including the waiver of fees, deferral of taxes, or waiver of regulations, if the ADUs are subject to binding commitments that they will not regularly be offered for short term rental and there is a program to audit compliance with the commitments. The bill was heard on January 12th and passed on January 21st in the House Local Government committee.

Rep Walen introduced HB 1841, which allows for the construction of an ADU to be exempt from the property tax for the duration of time the ADU is rented to a low-income household. It was heard on January 20th in the House Finance committee.

Condos

Sen Gildon introduced SB 5758 and it directs the Housing Finance Commission to create a condo conversion tenant-to-homeowner program to assist tenants in multifamily buildings purchase a condo in buildings that are being converted to condo ownership. Income eligibility and other requirements for the condo conversion tenant-to-homeowner program must be based on the commission’s existing authority and similar to other homebuyer programs. The bill was heard on January 18th in the Senate Housing & Local Government committee.

Homelessness

Rep Macri introduced HB 1724, relating to ensuring oversight and coordination of permanent supportive housing resources to maximize the creation of high quality housing opportunities for people living with disabling conditions in communities across Washington. This bill adds an operator of permanent supportive housing and services to the Affordable Housing Advisory Board and establishes an advisory committee on permanent supportive housing within the Department of Commerce. This bill amended and passed out of the House Committee on Housing, Human Services & Veterans on Jan 20th. The adopted substitute bill makes changes to representatives on the advisory committee and who makes the appointments, and adds a susent for the annual report on December 31, 2027.

Rep Morgan introduced HB 1987, relating to establishing a task force on creating a new state housing and homelessness department. The bill establishes a task force to recommend an organizational structure for a new department focused solely on issues of housing and homelessness. The task force will create a blueprint for a new department to better align housing and homelessness programs that currently span across multiple agencies and partners. This bill is scheduled for public hearing Jan 25th in the House Committee on Housing, Human Services & Veterans.

Rep Chopp sponsored HB 1866 and it established the Apple Health and Homes Program (Program) to provide a 12 month, renewable supportive housing benefit to Medical Assistance enrollees who meet eligibility criteria related to medical risk factors and barriers to finding stable housing. It establishes the Office of Health and Homes within the Department of Commerce to acquire sufficient supportive housing units to fulfill the needs of persons enrolled in the Program. Additionally, it creates the Health and Homes Account with a portion of funds from the $100 housing surcharge for recorded documents to be used for supportive housing and appropriates $500 million from the Coronavirus State Fiscal Recovery Fund for the acquisition and development of supportive housing units. The bill was heard on January 20th in the House Health Care & Wellness committee.

Encampments

Sen Kuderer introduced SB 5662 on behalf of the Governor, which creates the Office of Intergovernmental Coordination on Public Right-of-Ways Homeless Encampments (Office) within the Department of Social and Health Services. It also requires the Department of Commerce to collaborate with the Office to develop and implement a statewide effort to reduce the number of persons encamped on public rights-of-way through transitions to permanent housing solutions. The bill was heard on January 13th in the Senate Housing & Local Government committee.

Landlord Tenant Relations

Sen Kuderer introduced SB 5576 and it updates the 14-day pay or vacate notice and eviction summons to improve readability. It clarifies that for rental arrears accrued through 6 months following the end of the Governor’s state of emergency proclamation, a 14-day pay or vacate notice may not be issued until expiration of 14 days after a repayment plan is offered and the tenant fails to accept the offer. Additionally, it requires courts to accommodate virtual representation by legal counsel appointed for indigent tenants, as well as virtual participation for tenants. The bill was heard on January 11th, passed on January 19th in the Senate Housing & Local Government committee, and has been to the Rules committee for further consideration

Sen Trudeau sponsored SB 5749, which allows tenants to pay for rent with a personal check, cashier’s check, or money order. The bill was heard on January 19th in the Senate Housing & Local Government committee.

Rep Peterson introduced HB 1904 and it limits a landlord from increasing the rent to no more than 3% above the base rent without providing a written notice between 180 and 220 days before the increase takes effect. If the landlord does increase the rent above 3%, the landlord must provide notice to the tenant and allow for the tenant to terminate the lease at any point prior to the effective date of the increase and the tenant shall only pay pro rate rent through the date upon which the tenant surrender the premises. The bill was heard on January 18th and is scheduled for executive session on January 28th in the House Housing, Human Services & Veterans committee.

Land Use

Comp plan updates

Rep Duerr sponsored HB 1241 and it was amended in the House Local Government committee to increase the review and revision cycle for comprehensive plans under the GMA from 8 to 10 years. It also extends the deadline for the next comprehensive plan update for King, Kitsap, Pierce, and Snohomish counties, and for cities within those counties, from June 30, 2024, to December 31, 2024. The bill was referred to the House Appropriations committee and is scheduled for a hearing on January 27th.

Rep Duerr introduced HB 1978 and it increased the review and revision cycle for Shoreline master plans from 8 to 10 years so it aligns with the new revisions to the comp plan updates under the GMA. The bill was heard on January 19th and passed on January 21st in the House Local Government committee.

Rep Pollet introduced HB 1717 was amended by the House Local Government committee and at it requires counties, cities, and other local governments to enter into negotiations on a memorandum of agreement for collaboration and coordination with the tribe for participation in the planning process under the GMA, and provides for mediation if an agreement is not reached. It requires the Department of Commerce to provide notice to tribe of a city or county’s proposed adoption of a comp plan upon request of a tribe, and to facilitate a dispute resolution process to attempt to resolve a tribe’s concerns with a city or county’s comp plan or development regulations. Additionally, it requires a tribe that has a reservation or ceded lands within a county to be invited to participate in the countywide planning process. The bill has been scheduled for a hearing in the House Appropriations committee on January 27th.

Rep Duerr sponsored HB 1099, which adds a goal of climate change mitigation to the listed goals of the GMA. It also adds a climate change and resiliency element to the list of elements that must be included within the comprehensive plans certain counties and cities must adopt under the GMA. Additionally, Commerce is required to publish guidelines that specify a set of actions counties and cities have available to take related to greenhouse gas emissions reductions and vehicle miles traveled. The bill was introduced during the 2021 session but did not pass so was reintroduced. The bill was passed by the House with a 57-41 vote count on January 21st. It now heads to the Senate for further consideration.

Missing Middle Housing

Sen Das and Rep Bateman sponsored SB 5670/HB 1782 on behalf of the Governor requires cities to incorporate into its development regulations, zoning regulations, and other official controls, authorization for the development of all missing housing types on all lots zones for detached single-family residential use and within one-half of a major transit stop. It also creates minimum average density requirements for cities based on population and directs the Department of Commerce to provide technical assistance to cities. Both had a hearing on January 18th in the respective Local Government committees.

Rep Pollet introduced HB 1981 and it requires the Department of Commerce to undertake a study to determine the costs to cities and counties to revise their comprehensive plans and ensure compliance with the Growth Management Act; to distribute funds from the Local Government Support Account to ensure jurisdictions receive adequate funding for comprehensive plan updates; to provide planners and specialists to jurisdictions in developing comprehensive plans, along with model ordinances for plan implementation; and appropriates $25,000,000 for the Department of Commerce to provide grants to Clark, King, Kitsap, Pierce, Snohomish, Thurston, and Whatcom counties, and the cities within those counties, for the costs of planning and meeting new requirements imposed under the Growth Management Act in the 2021-2022 Legislative Session. It also expands the requirements of the housing element of the comprehensive plan to address displacement, increased economic integration, and affordable housing near transit. Authorizes increase in property tax levy of up to three percent based on population and inflation, with the difference between the increase and a one percent increase required to be used for planning under the Growth Management Act. Additionally, it authorizes additional graduated state real estate excise tax to fund the Local Government Planning Support Account, with funds primarily be used by the Department of Commerce to provide grants to local governments for required comprehensive plan updates, and secondarily by the Department of Commerce to provide staff support and other assistance to local governments in planning. The bill was heard on January 18th.

Urban Growth Areas (UGAs)

Rep Goehner sponsored HB 1627, which allows urban government services to be extended beyond city and urban growth area boundaries to meet the needs of those living within such communities, and water, sanitary sewage systems, and storm drains may be provided to properties outside of these boundaries to protect basic public health, safety, welfare, and the environment. The GMA hearing board nor a boundary review board my hear petitions based on the existence or extension of water, storm drainage, or sewerage systems outside of a city of urban growth areas boundary. It also allows for additional development and services in limited areas of more intensive rural development, based on the needs of the people in those communities. The bill was heard on January 11th and was scheduled for executive action in the House Local Government committee on January 21st, but no action was taken. It has been rescheduled for executive session on January 28th.

Sen Short introduced SB 5593, which amends the current standards for jurisdictions to revise a designated urban growth area or areas to include revisions based on patterns of development. It provides that any revision to the existing boundaries of a jurisdiction’s UGA or areas may not result in an expansion of total surface area of the UGA if the revision is to accommodate patterns of development and anticipated urban growth. The bill was heard on January 12th in the Senate Housing & Local Government committee.

Water

Sen Rolfes introduced SB 5585 on behalf of the Department of Ecology and it removes the existing cap on the fee charged for water quality permits administered by the Department of Ecology and creates an advisory committee to provide recommendations to Ecology for setting the water quality permit fee rate and schedule. The bill was heard on January 11th and passed on January 20th in the Senate Environment, Energy & Technology committee. The bill has been referred to the Senate Rules committee for further consideration.

Long-term Care

Rep Sullivan sponsored SHB 1732, which delays the collection of premium assessments under the long-term services and supports trust program until July 1, 2023, delays the availability of approved services under the trust program until July 1, 2026, and allows persons born before January 1, 1968, who do not meet the 10-year minimum for paying Trust program premiums to receive partial benefits based on the number of years of premium payments. The bill was passed by the House on January 19th with a 91-6 vote count. It has been scheduled for a hearing on January 24th and executive session on January 25th in the Senate Ways & Means committee.

Rep Paul introduced ESHB 1733, which establishes exemptions from the payment of premiums under the long-term services and supports trust program for certain veterans, spouses and registered domestic partners of military service members, nonimmigrant temporary workers, and employees who work in Washington and maintain a primary residence outside of Washington. The bill was amended by the House and passed on January 19th with a 67-29 vote count. It has been scheduled for a hearing on January 24th and executive session on January 25th in the Senate Ways & Means committee.

Prejudgment interest

Sen Kuderer introduced SB 5155 and it starts interest running on a judgment entered following trial of the matter and arbitration awards for tortious conduct, other than medical malpractice claims, from the date on which the cause of action accrues for individuals and entities, but not public agencies. It also starts interest running on a judgment for a medical malpractice claim from the date of entry of judgment. The Senate amended and passed the bill on January 19th with a 31-18 vote count. The amended bill excludes public agencies from the new prejudgment interest provisions and will only be liable for postjudgment interest only as they are now. It now heads to the House for further consideration.

Paid Family & Medical Leave

Senator Robinson introduced SB 5649, relating to modifying the Washington state paid family and medical leave act. This bill provides up to 14 calendar days of paid family leave, within existing leave limits, in certain situations following the death of the employee's family member or child and specifies that leave taken by certain employees in the first six weeks after giving birth must be medical leave, unless the employee chooses to use family leave. It expires the collective bargaining exception contained in the Paid Family and Medical Leave program, authorizes the Employment Security Department (ESD) to issue a predetermination of eligibility and benefits prior to the employee's start of leave, and requires ESD to publish on its website a list of employers with approved voluntary plans. This bill was heard on Jan 13th in the Senate Committee on Labor, Commerce & Tribal Affairs and is scheduled for executive session Jan 24th.

Unemployment insurance, family leave, and medical leave payments

Sen Keiser and Rep Berg introduced SB 5873/HB 2031, which lowers employees premiums for the Paid Family and Medical Leave (PFML) program to last year’s level. It would also lower unemployment insurance (UI) premiums for all employers and in 2023 it would target additional relief to small businesses. SB 5873 is scheduled for a public hearing on January 24th in the Senate Ways & Means Committee. HB 2031 has been scheduled for a public hearing on January 28th in the House Labor & Workplace Standards.

Transportation

The Governor’s 2023-2025 supplemental transportation budget proposes significant new spending in transportation in the hopes we will emerge from the pandemic stronger and more resilient. The supplemental transportation budget focuses new investments in clean transportation, ferry reliability, preservation, and increasing diversity, equity, and inclusion in transportation.

Links to transportation budget documents:

Governor’s proposed transportation budget – highlights Governor’s proposed transportation budget – bill

Transportation Revenue

Conversations on a transportation revenue proposal seem to be heating up as the House and Senate Democrats continue discussions and negotiations. Sen Liias would like to fund a revenue proposal with federal dollars, revenue from the Climate Commitment Act, and a transfer from the general fund. A gas tax increase is not a component of the Senate proposal. We anticipate revenue proposals will be released in the next couple of weeks.

Looking Ahead

This week will see more public hearings and movement of bills out of committee.

Upcoming Dates:

• February 3rd - House of Origin Policy Cutoff
• February 7th - House of Origin Fiscal Cutoff
• February 15th - House of Origin Floor Cutoff
• February 24th - Opposite House Policy Cutoff
• February 28th - Opposite House Fiscal Cutoff
• March 4th - Opposite House Floor Cutoff
• March 10th - Sine Die

Week Overview

General Update

Last week was another busy week filled with committee hearings on bills and some floor action in both chambers on some early action bills, including the delay of the Washington Cares Fund, the state’s long-term care program created by 2019 legislation and funded by a new payroll tax. A number of logistical and policy concerns arose as roll-out drew near, and Governor Inslee and legislative leadership agreed to introduce and support legislation that would delay implementation to give time to work out these details. This 18-month proposed delay is on the fast track, with the House voting the bill off their Floor Wednesday and, according to Senate Majority Leader Andy Billig during a media briefing this week, the Senate should do the same by the end of next week. See the ‘long term care’ section below for more details.

955 bills have been introduced so far this session (501 in the House and 454 in the Senate). This is in addition to all of the bills that failed to pass last year during the first year of the biennium and were retained in their current status from last session. While many bills reintroduced from last session never start moving again, some of them do pick up where they left off and keep moving through the process

The pace of new bills being introduced did slow dramatically this week. This is expected because the first cutoff of session is less than two weeks away on February 3rd. Bills must be voted out of the policy committee in their house of origin by that date or they will be considered dead, unless they are deemed Necessary to Implement the Budget (more on NTIB later). This means there is a great sense of urgency to get bills heard and voted out of committee quickly. A majority of bills will not make it past the first cutoff.

Last Monday was Martin Luther King, Jr. Day. In normal times, this is a big day for advocates to come to Olympia. Session doesn’t stop for holidays, so on holidays the campus would always be crowded with big hearings and lobby days. Even though that bustle on the capital campus doesn’t happen in virtual session, the legislature still took time to honor Dr. King on his birthday, with both chambers passing resolutions (SR 8634 and HR 4635) during floor sessions dedicated to Dr. King, his legacy and his call for action (Senate Floor Session Honoring Dr. King and House Floor Session).

On Thursday, we marked the second anniversary of the first case of COVID-19 confirmed in our state and the nation. Dr. John Wiesman, the former Secretary of Health(DOH) in Washington State, reflects on the moment the first case of COVID-19 was confirmed here in Association of State and Territorial Health Officials (ASTHO’s) podcast. According to DOH Secretary of Health Umair Shah, “We have now identified over one million cases in the state of Washington and have sadly lost over ten thousand lives.”

Click here to watch this week’s TVW Week in Review, which provides a good wrap-up of the past week in Olympia.

Priority Areas

Climate Change and the Environment

Rep Lekanoff introduced HB 1753 on behalf of the Governor, and it requires state agencies that administer funds from certain accounts created by the Climate Commitment Act to offer consultation to federally recognized tribes who tribal resources may be affected by the award of funds form the accounts. It requires applicants for funding from certain Climate Commitment Act accounts to engage in a preapplication process with all federally recognized tribes within the project area. The bill was heard on January 13th in the House Environment & Energy committee.

Sen Nguyen and Rep Hackney sponsored SB 5722/HB 1774 on behalf of the Governor and it requires the Department of Commerce to adopt state energy management benchmarking requirements for specified tier 2 covered buildings by December 1, 2023 and rules for performance standards by December 31, 2030. It also requires Commerce to evaluate benchmarking data to determine energy use and greenhouse gas emissions averages for building type by July 1, 2029. SB 5722 was heard on January 13th in the Senate Environment, Energy & Technology committee. HB 1774 has been referred to the House Environment & Energy Committee but has not been scheduled for a hearing.

Rep Ramel and Sen Liias introduced HB 1767/SB 5666 on behalf of the Governor, and it authorizes the governing body of municipal electric utilities and public utility districts (PUD) to adopt a targeted electrification plan that establishes a finding that utility outreach and investment in the electrification of customers’ end use equipment in residential and commercial buildings will provide net benefits to the utility or PUD. It authorizes municipal electric utilities and PUDs, upon the adoption of a targeted electrification plan, to offer incentives and establish other programs to accelerate the targeted electrification of homes and buildings for their customers. HB 1767 was heard on January 18th and passed on January 20th in the House Environment & Energy committee. SB 5666 was heard on January 19th in the Senate Environment, Energy & Technology committee.

Rep Duerr and Sen Liias sponsored HB 1770/SB 5669 on behalf of the Governor and it updates the minimum State Energy Code requirements for residential and nonresidential construction. It requires new buildings to be net-zero ready and the State Building Code Council to adopt statewide residential reach code and requires the Department of Commerce to develop a proposal covering the technical provisions. Additionally, it preempts local residential codes with the Washington State Energy Code and the Statewide Residential Reach Code. HB 1770 was heard on January 19th, amended and passed on January 21st in the House Local Government committee. The bill was substantially changed and a summary of the amendment can be found here. SB 5669 was referred to the Senate Environment, Energy & Technology committee but has not been scheduled for a hearing.

Housing

Accessory Dwelling Units (ADUs)

Rep Gregerson sponsored HB 1337, which originally incentivized the development of accessory dwelling units (ADUs). The bill was introduced in the 2021 session but did not pass so has been reintroduced. A proposed substitute bill was heard in the House Local Government committee on January 12th, and it requires cities and counties to adopt 14 specified requirements related to ADUs within urban growth areas, except to the extent that doing so would violate any existing laws or regulations related to public or environmental health, safety, or welfare. It also exempts action taken by cities and counties in complying with the provisions of the bill from challenges under the GMA and SEPA. The bill was scheduled for executive session on January 21st, but no action was taken.

Rep Shemake and Sen Liias introduced HB 1660/SB 5648, which prohibits owner occupancy requirements from being imposed on a lot with an ADU unless an ADU on the lot is being used for short-term rental, and sets deadlines for local jurisdictions to comply with this prohibition. HB 1660 was heard on January 12th, amended and passed on January 21st in the House Local Government committee. The bill was substantially changed and a summary of the amendment can be found here. SB 5648 is scheduled for a hearing in the Senate Housing & Local Government committee on January 25th.

Rep Pollet sponsored HB 1711 and it allows cities and counties to offer incentives for the development of ADUs, including the waiver of fees, deferral of taxes, or waiver of regulations, if the ADUs are subject to binding commitments that they will not regularly be offered for short term rental and there is a program to audit compliance with the commitments. The bill was heard on January 12th and passed on January 21st in the House Local Government committee.

Rep Walen introduced HB 1841, which allows for the construction of an ADU to be exempt from the property tax for the duration of time the ADU is rented to a low-income household. It was heard on January 20th in the House Finance committee.

Condos

Sen Gildon introduced SB 5758 and it directs the Housing Finance Commission to create a condo conversion tenant-to-homeowner program to assist tenants in multifamily buildings purchase a condo in buildings that are being converted to condo ownership. Income eligibility and other requirements for the condo conversion tenant-to-homeowner program must be based on the commission’s existing authority and similar to other homebuyer programs. The bill was heard on January 18th in the Senate Housing & Local Government committee.

Homelessness

Rep Macri introduced HB 1724, relating to ensuring oversight and coordination of permanent supportive housing resources to maximize the creation of high quality housing opportunities for people living with disabling conditions in communities across Washington. This bill adds an operator of permanent supportive housing and services to the Affordable Housing Advisory Board and establishes an advisory committee on permanent supportive housing within the Department of Commerce. This bill amended and passed out of the House Committee on Housing, Human Services & Veterans on Jan 20th. The adopted substitute bill makes changes to representatives on the advisory committee and who makes the appointments, and adds a susent for the annual report on December 31, 2027.

Rep Morgan introduced HB 1987, relating to establishing a task force on creating a new state housing and homelessness department. The bill establishes a task force to recommend an organizational structure for a new department focused solely on issues of housing and homelessness. The task force will create a blueprint for a new department to better align housing and homelessness programs that currently span across multiple agencies and partners. This bill is scheduled for public hearing Jan 25th in the House Committee on Housing, Human Services & Veterans.

Rep Chopp sponsored HB 1866 and it established the Apple Health and Homes Program (Program) to provide a 12 month, renewable supportive housing benefit to Medical Assistance enrollees who meet eligibility criteria related to medical risk factors and barriers to finding stable housing. It establishes the Office of Health and Homes within the Department of Commerce to acquire sufficient supportive housing units to fulfill the needs of persons enrolled in the Program. Additionally, it creates the Health and Homes Account with a portion of funds from the $100 housing surcharge for recorded documents to be used for supportive housing and appropriates $500 million from the Coronavirus State Fiscal Recovery Fund for the acquisition and development of supportive housing units. The bill was heard on January 20th in the House Health Care & Wellness committee.

Encampments

Sen Kuderer introduced SB 5662 on behalf of the Governor, which creates the Office of Intergovernmental Coordination on Public Right-of-Ways Homeless Encampments (Office) within the Department of Social and Health Services. It also requires the Department of Commerce to collaborate with the Office to develop and implement a statewide effort to reduce the number of persons encamped on public rights-of-way through transitions to permanent housing solutions. The bill was heard on January 13th in the Senate Housing & Local Government committee.

Landlord Tenant Relations

Sen Kuderer introduced SB 5576 and it updates the 14-day pay or vacate notice and eviction summons to improve readability. It clarifies that for rental arrears accrued through 6 months following the end of the Governor’s state of emergency proclamation, a 14-day pay or vacate notice may not be issued until expiration of 14 days after a repayment plan is offered and the tenant fails to accept the offer. Additionally, it requires courts to accommodate virtual representation by legal counsel appointed for indigent tenants, as well as virtual participation for tenants. The bill was heard on January 11th, passed on January 19th in the Senate Housing & Local Government committee, and has been to the Rules committee for further consideration

Sen Trudeau sponsored SB 5749, which allows tenants to pay for rent with a personal check, cashier’s check, or money order. The bill was heard on January 19th in the Senate Housing & Local Government committee.

Rep Peterson introduced HB 1904 and it limits a landlord from increasing the rent to no more than 3% above the base rent without providing a written notice between 180 and 220 days before the increase takes effect. If the landlord does increase the rent above 3%, the landlord must provide notice to the tenant and allow for the tenant to terminate the lease at any point prior to the effective date of the increase and the tenant shall only pay pro rate rent through the date upon which the tenant surrender the premises. The bill was heard on January 18th and is scheduled for executive session on January 28th in the House Housing, Human Services & Veterans committee.

Land Use

Comp plan updates

Rep Duerr sponsored HB 1241 and it was amended in the House Local Government committee to increase the review and revision cycle for comprehensive plans under the GMA from 8 to 10 years. It also extends the deadline for the next comprehensive plan update for King, Kitsap, Pierce, and Snohomish counties, and for cities within those counties, from June 30, 2024, to December 31, 2024. The bill was referred to the House Appropriations committee and is scheduled for a hearing on January 27th.

Rep Duerr introduced HB 1978 and it increased the review and revision cycle for Shoreline master plans from 8 to 10 years so it aligns with the new revisions to the comp plan updates under the GMA. The bill was heard on January 19th and passed on January 21st in the House Local Government committee.

Rep Pollet introduced HB 1717 was amended by the House Local Government committee and at it requires counties, cities, and other local governments to enter into negotiations on a memorandum of agreement for collaboration and coordination with the tribe for participation in the planning process under the GMA, and provides for mediation if an agreement is not reached. It requires the Department of Commerce to provide notice to tribe of a city or county’s proposed adoption of a comp plan upon request of a tribe, and to facilitate a dispute resolution process to attempt to resolve a tribe’s concerns with a city or county’s comp plan or development regulations. Additionally, it requires a tribe that has a reservation or ceded lands within a county to be invited to participate in the countywide planning process. The bill has been scheduled for a hearing in the House Appropriations committee on January 27th.

Rep Duerr sponsored HB 1099, which adds a goal of climate change mitigation to the listed goals of the GMA. It also adds a climate change and resiliency element to the list of elements that must be included within the comprehensive plans certain counties and cities must adopt under the GMA. Additionally, Commerce is required to publish guidelines that specify a set of actions counties and cities have available to take related to greenhouse gas emissions reductions and vehicle miles traveled. The bill was introduced during the 2021 session but did not pass so was reintroduced. The bill was passed by the House with a 57-41 vote count on January 21st. It now heads to the Senate for further consideration.

Missing Middle Housing

Sen Das and Rep Bateman sponsored SB 5670/HB 1782 on behalf of the Governor requires cities to incorporate into its development regulations, zoning regulations, and other official controls, authorization for the development of all missing housing types on all lots zones for detached single-family residential use and within one-half of a major transit stop. It also creates minimum average density requirements for cities based on population and directs the Department of Commerce to provide technical assistance to cities. Both had a hearing on January 18th in the respective Local Government committees.

Rep Pollet introduced HB 1981 and it requires the Department of Commerce to undertake a study to determine the costs to cities and counties to revise their comprehensive plans and ensure compliance with the Growth Management Act; to distribute funds from the Local Government Support Account to ensure jurisdictions receive adequate funding for comprehensive plan updates; to provide planners and specialists to jurisdictions in developing comprehensive plans, along with model ordinances for plan implementation; and appropriates $25,000,000 for the Department of Commerce to provide grants to Clark, King, Kitsap, Pierce, Snohomish, Thurston, and Whatcom counties, and the cities within those counties, for the costs of planning and meeting new requirements imposed under the Growth Management Act in the 2021-2022 Legislative Session. It also expands the requirements of the housing element of the comprehensive plan to address displacement, increased economic integration, and affordable housing near transit. Authorizes increase in property tax levy of up to three percent based on population and inflation, with the difference between the increase and a one percent increase required to be used for planning under the Growth Management Act. Additionally, it authorizes additional graduated state real estate excise tax to fund the Local Government Planning Support Account, with funds primarily be used by the Department of Commerce to provide grants to local governments for required comprehensive plan updates, and secondarily by the Department of Commerce to provide staff support and other assistance to local governments in planning. The bill was heard on January 18th.

Urban Growth Areas (UGAs)

Rep Goehner sponsored HB 1627, which allows urban government services to be extended beyond city and urban growth area boundaries to meet the needs of those living within such communities, and water, sanitary sewage systems, and storm drains may be provided to properties outside of these boundaries to protect basic public health, safety, welfare, and the environment. The GMA hearing board nor a boundary review board my hear petitions based on the existence or extension of water, storm drainage, or sewerage systems outside of a city of urban growth areas boundary. It also allows for additional development and services in limited areas of more intensive rural development, based on the needs of the people in those communities. The bill was heard on January 11th and was scheduled for executive action in the House Local Government committee on January 21st, but no action was taken. It has been rescheduled for executive session on January 28th.

Sen Short introduced SB 5593, which amends the current standards for jurisdictions to revise a designated urban growth area or areas to include revisions based on patterns of development. It provides that any revision to the existing boundaries of a jurisdiction’s UGA or areas may not result in an expansion of total surface area of the UGA if the revision is to accommodate patterns of development and anticipated urban growth. The bill was heard on January 12th in the Senate Housing & Local Government committee.

Water

Sen Rolfes introduced SB 5585 on behalf of the Department of Ecology and it removes the existing cap on the fee charged for water quality permits administered by the Department of Ecology and creates an advisory committee to provide recommendations to Ecology for setting the water quality permit fee rate and schedule. The bill was heard on January 11th and passed on January 20th in the Senate Environment, Energy & Technology committee. The bill has been referred to the Senate Rules committee for further consideration.

Long-term Care

Rep Sullivan sponsored SHB 1732, which delays the collection of premium assessments under the long-term services and supports trust program until July 1, 2023, delays the availability of approved services under the trust program until July 1, 2026, and allows persons born before January 1, 1968, who do not meet the 10-year minimum for paying Trust program premiums to receive partial benefits based on the number of years of premium payments. The bill was passed by the House on January 19th with a 91-6 vote count. It has been scheduled for a hearing on January 24th and executive session on January 25th in the Senate Ways & Means committee.

Rep Paul introduced ESHB 1733, which establishes exemptions from the payment of premiums under the long-term services and supports trust program for certain veterans, spouses and registered domestic partners of military service members, nonimmigrant temporary workers, and employees who work in Washington and maintain a primary residence outside of Washington. The bill was amended by the House and passed on January 19th with a 67-29 vote count. It has been scheduled for a hearing on January 24th and executive session on January 25th in the Senate Ways & Means committee.

Prejudgment interest

Sen Kuderer introduced SB 5155 and it starts interest running on a judgment entered following trial of the matter and arbitration awards for tortious conduct, other than medical malpractice claims, from the date on which the cause of action accrues for individuals and entities, but not public agencies. It also starts interest running on a judgment for a medical malpractice claim from the date of entry of judgment. The Senate amended and passed the bill on January 19th with a 31-18 vote count. The amended bill excludes public agencies from the new prejudgment interest provisions and will only be liable for postjudgment interest only as they are now. It now heads to the House for further consideration.

Paid Family & Medical Leave

Senator Robinson introduced SB 5649, relating to modifying the Washington state paid family and medical leave act. This bill provides up to 14 calendar days of paid family leave, within existing leave limits, in certain situations following the death of the employee's family member or child and specifies that leave taken by certain employees in the first six weeks after giving birth must be medical leave, unless the employee chooses to use family leave. It expires the collective bargaining exception contained in the Paid Family and Medical Leave program, authorizes the Employment Security Department (ESD) to issue a predetermination of eligibility and benefits prior to the employee's start of leave, and requires ESD to publish on its website a list of employers with approved voluntary plans. This bill was heard on Jan 13th in the Senate Committee on Labor, Commerce & Tribal Affairs and is scheduled for executive session Jan 24th.

Unemployment insurance, family leave, and medical leave payments

Sen Keiser and Rep Berg introduced SB 5873/HB 2031, which lowers employees premiums for the Paid Family and Medical Leave (PFML) program to last year’s level. It would also lower unemployment insurance (UI) premiums for all employers and in 2023 it would target additional relief to small businesses. SB 5873 is scheduled for a public hearing on January 24th in the Senate Ways & Means Committee. HB 2031 has been scheduled for a public hearing on January 28th in the House Labor & Workplace Standards.

Transportation

The Governor’s 2023-2025 supplemental transportation budget proposes significant new spending in transportation in the hopes we will emerge from the pandemic stronger and more resilient. The supplemental transportation budget focuses new investments in clean transportation, ferry reliability, preservation, and increasing diversity, equity, and inclusion in transportation.

Links to transportation budget documents:

Governor’s proposed transportation budget – highlights Governor’s proposed transportation budget – bill

Transportation Revenue

Conversations on a transportation revenue proposal seem to be heating up as the House and Senate Democrats continue discussions and negotiations. Sen Liias would like to fund a revenue proposal with federal dollars, revenue from the Climate Commitment Act, and a transfer from the general fund. A gas tax increase is not a component of the Senate proposal. We anticipate revenue proposals will be released in the next couple of weeks.

Looking Ahead

This week will see more public hearings and movement of bills out of committee.

Upcoming Dates:

• February 3rd - House of Origin Policy Cutoff
• February 7th - House of Origin Fiscal Cutoff
• February 15th - House of Origin Floor Cutoff
• February 24th - Opposite House Policy Cutoff
• February 28th - Opposite House Fiscal Cutoff
• March 4th - Opposite House Floor Cutoff
• March 10th - Sine Die

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This press release was produced by the Bellevue Chamber of Commerce. The views expressed here are the author’s own.