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Introduction
The 2011 Legislative Session was extended with an additional 30 day special session and those 120 days were fraught with challenges for Legislators and lobbyists in one of the most anti labor sessions we've experienced, not just in Olympia, but across the country. The state has wrestled with a multi-billion dollar budget deficit that the Legislative and Executive branches are constitutionally bound to balance. The Washington State Building & Construction Trades Council, AFL-CIO, and the entire Labor community entered the 2011 Session aware that business interests would take advantage of the economic climate to blame their woes and inability to create jobs on injured workers and demand "reforms" to the workers' comp system for Washington. The Labor lobby team worked tirelessly to coordinate communication efforts with Affiliates and key Legislators in both leadership and newly elected progressive Members to deliver to the Governor a quality package of workers' comp reforms in hopes of supplanting vicious legislation aimed at gutting Washington's workers' comp laws.
Union members responded to our calls to action in record numbers to communicate with Legislators via phone and email campaigns that punctuated our message with a record breaking turnout of up to 13,000 Union Members rallying on the steps of Capitol and Temple of Justice building to demand fair treatment of injured workers and to focus on jobs creation as the best answer to struggling business. We held our ground with the support of stalwart friends and new progressive Members from both the House and Senate. However, in the end game antics and deals to gain the votes to balance the budget and under the pressures of lost votes as citizen Legislators were forced to exit Olympia to return to their regular jobs and lives, deals were negotiated beyond our ability to correct and ushered into law EHB 2123 conditional compromise and release of injured workers aged 55 and older beginning in 2012, and by 2016 reduces that age to those injured 50.
EHB 2123 was touted as part of a "reform" package that included a number of policy reforms labor supported in an effort to meet the $700 million savings initially set by the Governor, but the goal post was moved to $1 billion savings when elements of the labor supported a reform package met the $700 million goal. Included in the package labor supported reforms was the statutory establishment of the Safety and Health Investment Projects (SHIP) grants of $5 million, creation of an Industrial Insurance Rainy Day Fund to soften the fluctuation of the funds, L&I was also required to apply best practices to address workers' comp employer, worker, and provider fraud, the statewide expansion of the COHEs in ESSB 5801 to serve injured workers in six locations by 2013 where labor representation on those local boards will be crucial, more on the other workers' comp reform bills are noted below.
Compromise and Release, EHB 2123, created a deep rift between the labor community, the Governor and Legislative leadership as the path they chose toward the end game on workers' comp "reform" was fraught with broken promises, misinformation and rhetoric promulgated by the business community and Gubernatorial heels that were dug in from the start. In our humble opinion, if we'd have seen a similar effort on their part to help us work to pass the job creation bills which we knew we had the votes to pass, and to help the labor and progressive community work with business to define meaningful tax incentive reforms that create jobs, local hire, provide education and training, promote 21st century manufacturing and technology for the expansion of all renewable resources in a combined energy grid and ultimately generate the revenues our state needs to provide the public services and programs we all want for our communities - we would be looking at a brighter future today. We'll be working with the same decision makers for the 2012 Legislative Session, so it's imperative that we maintain and build on our professional relationships with these folks to gain momentum for job creation for our members, and to remind that returning middle class jobs and pathways to obtain them should be the paramount goal that will help alleviate our state's revenue woes.
Priority Bills
2SSB 5662 (passed) provides an in-state contractor bidding preference on public works. The Department of General Administration will survey all 50 states to determine which provide advantages for their in-state contractors bidding on public works projects. The survey must be completed by November 1, 2011. GA must report on the results of the survey, and provide recommendations necessary to implement the intent of the legislation, to the Legislature by December 1, 2011. GA must distribute the report to all state and local agencies with public works procurement authority. Any bidding process for public works in the state in which a bid is received from a nonresident contractor, from a state that is identified in the survey as providing an in-state contractor advantage, must provide a comparable disadvantage to the bid of that nonresident contractor. (House 93 yeas, 2 nays, and 3 excused; Senate 35 yeas, 12 nays and 2 excused)
2ESHB 1701 (not passed) would have addressed the loss in state revenue caused by the misclassification of contractors as independent contractors in the construction industry. In 1998 the IRS setup a nationwide taskforce to investigate and deal with the misclassification of workers in the construction industry and the State Building Trades passed resolution 21 stating that "the Washington State Building and Construction Trades Council, working with the NBTD and other unions, is actively seeking to eradicate misclassification in the construction industry." In 2007 legislation was passed that created a joint legislative task force to review the underground economy in the construction industry and began a bipartisan examination with input from both business and Labor. Since 2007 nine underground economy bills have passed the legislature, although none directly addressed the misclassification of independent contractors, a practice that has continued to increase over that same time period. Currently, the only way for L&I to pursue cases of misclassified independent contractors requires a lengthy and cumbersome audit process, 2ESHB 1701 would have granted L&I investigators the ability to levy an appealable fine at the jobsite when the violation was observed. The legislation, which excluded wood-framed structures up to four stories in height, stated a contractor was in violation if more than two workers classified as independent contractors were working at the same time on the same task. At the direction of the House Labor and Workforce Development Chairman Mike Sells, Labor met with business representatives from the AGC, BIAW and Master Builders Association to collaborate on a solution that appealed to both groups. During these meetings every one of the business concerns raised were addressed by Labor. In the end one business representative stated that business and Labor had a difference of "philosophy" when no concrete objections could be raised. The final version of the legislation was faced with party line division and ultimately failed to pass due to the political environment created by the compromise and release workers' comp legislation that the Building Trades opposed. 2ESHB 1701 remains an active bill for the 2012 Legislative Session and it has been suggested by the labor community to the Governor and L&I that the Department bring the violation piece forward as agency request legislation. A victory was won from the efforts to pass 1701 with the inclusion of budget appropriations passed to fund an interdepartmental computer network for improved electronic communication between L&I, the Department of Revenue and Employment Security that will increase the chance of detecting discrepancies and help identify those breaking the law. Additional money will create an expected five more compliance positions at L&I for enforcement and detection.
SB 5412 (not passed) would protect employee whistleblowers when they report in good faith, practices which may violate state law, regulation, or employer policies. An employee of an elevator contractor who has been subjected to retaliatory action as the result of being a whistleblower would have remedies for this action through the Human Rights Commission. The identity of a whistleblower would remain confidential. This bill was identified as an interim issue the Senate Labor Committee will address and be included as a WSBCTC priority effort to pass in the 2012 Legislative Session.
Workers’ Compensation
For a concise description of how Washington's worker's compensation system has changed and what it means for injured workers visit the Health and Safety page. CLICK HERE.
EHB 2123 (passed) is devastating legislation that includes compromise and release for injured workers 55 and older beginning in 2012 and resolves in a policy of age 50 and older by 2016. Despite a resounding defeat of Initiative 1082 last year by Washington voters, compromise and release legislation was on the table from the beginning of the 2011 session. Membership from both the State Building Trades and the Washington State Labor Council were critical in bringing pressure to the Capitol and, in the end, led to a policy with less devastating effects than initially conceived of by business lobbyists. The Labor lobby community worked closely with leadership and opposed every form of compromise and release and instead offered alternative solutions to bolster the workers' compensation fund. The benchmark savings request from leadership began as $700 million, a goal that was met through the drafting of several pieces of legislation by Labor. However, after meeting this goal, the bar was raised to $1 billion dollars and Labor was informed that some form of compromise and release was necessary to the overall package. When this new package appeared on May 23rd negotiations had already been held behind closed doors and it passed from the House and Senate floors within a matter of hours. Overall this bill will:
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Creates the Stay-at-Work program, authorizing State Fund employers to receive a wage subsidy and reimbursements for employing an injured worker at light duty or transitional work.
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Eliminates the fiscal year 2012 cost-of-living adjustment with no catch-up, and delays the first cost-of-living adjustment.
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Authorizes claim resolution structured settlement agreements initially for workers age 55 or older, then age 53 or older beginning in 2015, and age 50 or older beginning in 2016, and establishes minimum and maximum periodic payments.
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Requires permanent total disability awards to be offset by prior permanent partial disability (PPD) awards and eliminates interest on unpaid PPD awards.
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Establishes in statute Safety and Health Investment Projects grants.
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Creates an Industrial Insurance Rainy Day Fund.
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Requires the Department of Labor and Industries to apply certain best practices to address employer, worker, and provider fraud.
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Requires the Joint Legislative Audit and Review Committee to conduct a performance audit of the workers' compensation claims management system.
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Requires the Department of Labor and Industries to contract for a study of occupational disease.
(House 69 yeas, 26 nays and 3 excused; Senate 35 yeas, 12 nays and 2 excused)
ESSB 5068 (passed) addresses the abatement of violations of the Washington Industrial Safety and Health Act during an appeal. In an application for a stay of abatement, LnI will not grant a stay when it can determine that the preliminary evidence shows a substantial probability of death or serious physical harm to workers. L&I will initiate rulemaking to implement this law in 2011. (House 55 yeas, 41 nays, and 1 excused; Senate 47 yeas, 2 nays and 2 excused)
SSB 5801 (passed) addresses occupational health best practices by creating a state-approved medical provider network and the expansion of Centers for Occupational Health and Education (COHEs). L&I must establish a health care provider network to treat injured workers. Providers who meet minimum standards are accepted into the network and must agree to follow L&I evidence-based coverage decisions, treatment guidelines, and policies. Providers who follow L&I established best practice standards can qualify for a second tier within the network. Financial and nonfinancial incentives may be provided to second tier providers. L&I is to convene an advisory group to advise the department on issues related to the implementation of the network, and seek input of various health care provider groups and associations concerning implementation of the network.
Once a provider network is established in a worker's geographic area, an injured worker needs to seek medical services from a health care provider in the network. Providers failing to meet minimum network standards can be temporarily or permanently removed from the network.
L&I must establish additional COHEs, with a goal of extending access to all injured workers by December 2015. Incentives can be established for COHE providers, and electronic methods of tracking measures to identify and improve outcomes for injured workers are to be developed. (House 96 yeas, 1 nay and 1 excused; Senate 48 yeas and 1 excused) For more information on COHE development and to participate in the process please visit:
ESHB 1725 (passed) was initially conceived as part of the Labor package to avoid a compromise and release bill. It is not presented here as a victory, but instead as a notice of departmental changes. This legislation was designed to improve efficiency in the administration of workers’ compensation to reduce costs for L&I. Industrial insurance notices and orders, other than claim closure orders, may be sent electronically if requested by the employer, worker, beneficiary, or other person affected. Persons choosing to receive electronic correspondence and legal notices must receive information to assist them in ensuring that all electronic documents and communications are received. Correspondence and notices sent electronically are considered received on the date sent.
Orders and notices required to be served by registered or certified mail may be served by any method for which receipt can be confirmed or tracked.
The Director of the Department must adopt rules to assure an injured worker may receive care from a direct practice provider. Any billing rule requiring a provider to bill for services does not apply to a direct practice. However, the Department may adopt rules requiring a direct practice to provide information to allow the Department to establish industrial insurance rates and retro plan refunds and assessments. The Department may also adopt rules regarding direct practice fees to assure that workers are not paying for benefits other than what is permitted by law. Payment by an employer for direct practice services does not disqualify an employer from participating in retro, a group sponsor from promoting a retro plan, or a plan administrator from administering a retro plan. (House 96 yeas, 1 nay and 1 excused; Senate 47 yeas and 2 excused)
HB 1726 (passed) is also a bill that was meant to save money to avoid compromise and release and is recorded here for your information. HB 1726 is L&I request legislation that addresses recommendations of the Vocational Rehabilitation Subcommittee. Vocational services may be provided to a worker who suffered the loss of, or complete use of, two major limbs or total eyesight when, in the Department's discretion, these services will substantially improve either the worker's quality of life or ability to function in an employment setting, regardless of whether these services are necessary or reasonably likely to make the worker employable at any gainful employment. The services must be completed before the worker's entitlement to a pension. These workers are not entitled to Option 2 benefits.
The 15-day period to select Option 2 begins when the Department approves the plan or a determination is made that the plan is valid following a dispute. In addition, the Department may approve the election of Option 2 benefits within 25 days of the approval of the plan or a determination that the plan is valid if the worker provides a written explanation that the worker was unable to meet the 15-day deadline.
The Department may extend the time an employer has to make a valid return-to-work offer for up to 10 additional days if the employer made an offer within 15 days that met some but not all requirements to be valid. To be valid, the offer must be for bona fide employment with the employer of injury consistent with the worker's documented physical and mental restrictions.
A worker who elects Option 2 is not entitled to further time-loss or pension benefits, except upon a showing of a worsening in condition that makes the closure of the claim inappropriate. In this case, the Option 2 selection is rescinded and the amount paid to the worker is assessed as an overpayment. A closed claim may not be reopened for the sole purpose of allowing the worker to seek vocational assistance. The Department makes the determination whether vocational rehabilitation is both necessary and likely to make the worker employable at gainful employment. These provisions expire June 30, 2013. (House 96 yeas, 1 nay and 1 excused)
Job Related
The 2011 legislative session offered surprising challenges for job creation legislation. Several jobs bills were active until the last days of special session and had the votes necessary to pass from the floor; however, leadership did not put them forward for a vote.
In the 2010 legislative session SSB 6889 set the Washington state convention and trade center on course for an expansion project that will create approximately 4,500 construction jobs, work that was set to begin in 2017. In 2011 a series of bills were introduced, beginning with SHB 1997, that would extend taxes from the Safeco Field construction until 2015 in order to finance the convention and trade center, workforce housing, arts and preservation, and community development. This four year tax extension would have expedited ground breaking for the convention and trade center expansion and brought jobs to building trades members at a time of severe unemployment. Out of four bills introduced addressing the extension of the Safeco Field taxes ESSB 5834 passed, the only one that did not include funding for the convention and trade center. The State Building Trades will continue efforts to move the construction schedule forward next session. (House 62 yeas, 34 nays and 2 excused; Senate 33 yeas, 8 nays, 1 absent, and 7 excused)
E2SB 5769 (passed) calls for a reduction in the amount of coal generated electricity in Washington. Washington is now on track to become the 2nd state (behind OR) to end the use of coal for electricity.
TransAlta, owners and operators of Centralia’s coal powered plant, will stop producing half of the coal power in 2020 and the other half in 2025, with scrubber pollution controls being installed by 2013. Prior to these dates, the company can sell coal power through long-term contracts. TransAlta will provide $30 million in direct economic development and energy efficiency jobs to the community, and another $25 million to develop clean-energy technology for a future gas plant. (House 87 yeas, 9 nays and 1 excused; Senate 33 yeas, 14 nays and 2 excused)
SHB 1422 (passed) authorizes the department of natural resources and the department of commerce to cooperate and consult with the University of Washington and Washington State University in their development of forest biomass to aviation fuel. This research, if successful, may lead to new construction projects for Washington. (House 96 yeas and 1 excused; Senate 47 yeas and 2 excused)
ESSB 5457 (passed) allows a metropolitan municipal corporation to impose, with a two-thirds majority approval of the governing body of the system or by a simple majority vote of the people, a congestion reduction charge for certain vehicles of up to $20. This charge remains in effect until two years after it is applied or June 30, 2014, whichever comes first. This legislation grants local governments more flexibility in raising funds for local projects and will help generate construction work.
Public transportation systems that impose a congestion reduction charge are required to complete a congestion reduction plan prior to implementation as well as reports detailing the expenditures of the congestion reduction charge. The proceeds from the charge must be used in a manner that is consistent with recommendations of a regional transit taskforce, if one was completed in the past two years. (House 50 yeas, 47 nays and 1 excused; Senate 25 yeas, 21 nays and 3 excused)
Jobs Bills to Continue in 2012
SB 5873 (did not pass) would extend the time for eligible data centers to qualify for the sales and use tax exemption. Approved in April 2010, the tax incentive for rural data centers has already produced huge benefits. More than 1,000 family-wage construction jobs have been created for workers currently building data centers, and hundreds of more jobs are in the pipeline as additional approved projects move toward construction. Seven projects have been approved since April 2010, representing an investment by private businesses of about $2 billion. These projects can provide $10 million a year in ongoing property tax revenue to state and local governments.
ESHB 1365 (did not pass) would revise the definition of "distributed generation" for the purposes of the energy independence act and address a qualifying utility's requirements to count distributed generation from a solar photovoltaic generation facility. This legislation would have lead directly to the construction of a $300 million solar power facility.
SHB 2053 (did not pass) would increase fees on a number of the DOL driver and vehicle services to support the financing for construction of a 144-car class ferry vessel and to provide additional funding to a number of state transportation programs. A new fee is charged for the issuance of original license plates at $10 per plate for motor vehicles and $3.75 per plate for motorcycles. Individuals who apply for an instructional driver's permit for a second or third time must pay an application fee of $25 each time. Individuals who take the examination for the instructional driver's permit must pay a $35 fee each time the examination is taken, irrespective of passage or failure.
SHB 1574 (did not pass) would increase the 20 year maximum period in which the Public Facilities District’s sales and use tax credit can be imposed to 35 years. Once imposed, the tax is authorized to remain in place until bonds that finance the construction, as well as the improvement, rehabilitation, or expansion of the facility are retired but not longer than 35 years. The tax rate available for the additional 15 years is reduced by one-half. This legislation will lead to numerous construction projects across the state that can otherwise not be built.
SHB 2040 (did not pass) would create a task force to develop a way to use the state's money to finance public works infrastructure, student loans, and economic development.
ESSB 5251 (did not pass) would require that, in addition to all other fees, motor vehicles powered solely by electricity must pay a $100 fee annually when the registration is renewed. Proceeds from this fee are to be deposited into the Motor Vehicle Fund and used for highway purposes. After collections reach $1 million, revenues within the Motor Vehicle Fund must be distributed as follows: 70 percent to the motor vehicle account, 15 percent to the transportation improvement account, and 15 percent to the rural arterial preservation account.
SSB 5539 (did not pass) would expand the Motion Picture Competitiveness Program to include assisting and providing services for attracting the film industry to Washington
SSB 5676 (did not pass) would establish that private development projects that invest in the basic commodities of transportation, energy development, conservation, or efficiency may be designated as projects of statewide significance.
Job creation requirements are changed to full-time employment of at least 30 people in rural counties, and at least 70 people in urban counties, or at least 70 people if the project will create jobs in both rural and urban counties.
SB 5947 (did not pass) would eliminate certain nonessential tax exemptions to help fund essential government services. The repealed exemptions include the retail sales and use tax exemptions for semen used for artificial insemination of livestock, sales of propane or natural gas exclusively used to heat structures that house, and sales of bedding materials to farmers who raise chickens. This claw back legislation would help protect funds used for capital projects and the wages of state employees.
Budgets
Calculation of the 2011-13 operating budget (ESHB 1087) and the process of rectifying a six billion dollar budget deficit became a hot bed ideological battle at the Capitol as proposed spending reductions targeted state workers, capital budget construction dollars, education and health care. In a debate similar to the workers' compensation negotiations, Labor proposed alternatives to this hack and slash approach that would not settle the balance of the state deficit on the backs of working families. Instead, Labor proposed, Washington needs to reevaluate the abundant tax exemptions afforded to the business community. Tax exemptions can lead to economic growth and job creation when applied responsibly and sensibly, but the fact is that Washington has hundreds of tax exemptions on the books that do not pencil out and must be "clawed back". During an economic downturn maintaining high employment is essential to recovery, state jobs and construction project dollars should not be cut. Ultimately the Legislature rejected the claw back approach and opted for the more immediate approach of cuts.
Although $50 million dollars was transferred from the public works trust fund to the operating budget, the construction industry will benefit from funds designated under the operating budget to combat underground economy activity. These funds will be used to establish a interdepartmental computer network to improve communication between Labor and Industries, the Department of Revenue and the Employment Security Department and increase the chance of detecting discrepancies and will help identify those breaking the law. Additional money will create an expected five more positions in the FAIR team fraud division at L&I for investigators and auditors.
The 2011-13 transportation budget (ESHB 1175) includes $5.8 billion in transportation capital construction (highways, rail, and ferries). Within this amount, just over $2 billion is provided to address the safety issues posed by the SR 520 Bridge and the SR 99 Alaskan Way Viaduct. The remaining funds will ensure busy 2011 and 2012 summer construction seasons all around the state.
SHB 2020 appropriates $1.4 billion in new state general obligation bonds to support the 2011 Supplemental and 2011-13 Capital Budget. State bond reappropriations of $1.1 billion are authorized for projects approved in previous years. The 2011 Supplemental Capital Budget reduces 2009-11 Capital Budget state bond appropriations by $32 million.
The State Finance Committee is authorized to issue state general obligation bonds to finance $1.4 billion in projects in the 2011 Supplemental and 2011-13 Capital Budgets. The State Treasurer is required to withdraw from state general revenues the amounts necessary to make the principal and interest payments on the bonds and to deposit these amounts into the Bond Retirement Account. A June 30, 2013, expiration date is added to several bond authorizations that remain unissued.
The Capital Budget (ESHB 1497) authorizes $3.1 billion in new capital projects, of which $1.4 million are financed with new state general obligation bonds. Reappropriations of $2.4 billion are authorized for projects approved in the prior biennia. State agencies are also authorized to enter into a variety of alternative financing contracts. The 2011 Supplemental Capital Budget reduces 2009-11 capital budget appropriations by $33.3 million.
Prevailing Wage
SSB 5070 (passed) improves L&I’s ability to pursue prevailing wage violations by dictating that an employer, contractor, or subcontractor that fails to provide or allow inspection of records requested by L&I within 60 days of the request may not use the records in any proceeding to challenge the correctness of any determination made by L&I that wages are owed; that a record or statement is false; or that the employer, contractor, or subcontractor has failed to file a record or statement.
Transportation
EHB 1382 (passed) authorizes the imposition of tolls for express toll lanes on I-405 between the junction with Interstate 5 on the north end and Northeast 6th Street in Bellevue on the south end. In addition, I-405 is designated as an eligible toll facility. An express toll lane means an HOV lane in which the WSDOT charges tolls to regulate use of the lane to maintain travel speed and reliability. The Commission is directed to set the schedule of toll rates for the express toll lanes, which can vary by time of day, level of congestion, and other criteria determined by the Commission. Toll charges may not be assessed on transit buses and vanpools. Toll revenue can be used for debt services, planning, administration, construction, maintenance, repairing, rebuilding, operation, enforcement, and the expansion of express toll lanes on I-405. The I-405 Express Toll Lanes Operations Account is created in the motor vehicle fund, so the expenditure of the revenue is limited to highway purposes.
WSDOT is authorized to construct and operate the express toll lanes and set the performance standards for the project. The WSDOT is required to automatically adjust the toll rate, using dynamic tolling, within the schedule established by the Commission to ensure that average vehicle speeds in the lanes remain above 45 miles per hour 90 percent of the time during peak hours. The Commission must periodically review the toll rates against the traffic performance of all lanes to determine if the toll rates are effectively maintaining travel time, speed, and reliability. The WSDOT is required to annually report to the Commission and the Legislature on the impact of the express toll lanes project on certain performance measures. The express toll lanes project must be terminated if it does not meet certain performance criteria within two years.
The Commission is required to hire independent experts to conduct a traffic and revenue analysis of a 40-mile continuous express toll lane system that includes SR 167 and I-405. In addition, the WSDOT must develop a corridor-wide project management plan for the eastside corridor. WSDOT is directed to use the information from the analysis and the management plan to develop a finance plan to fund improvements in the corridor. WSDOT must consult with the Commission in developing the corridor-wide management plan and the finance plan, and WSDOT and the Commission must consult with certain elected officials and representatives from certain transit agencies while developing the performance standards, the traffic and revenue analysis, and the finance plan.
SHB 1384 (passed) exempts public improvement contracts for highway, road, and street projects that are funded by federal transportation funds from the retainage requirement. Instead, the contract bond is used in the event of claims or unpaid taxes. The contract bond must remain in full force and effect until, at a minimum, all claims filed in compliance with contractor's bond requirements are resolved.
ESHB 1071 (passed) requires the Washington State Department of Transportation (WSDOT) to establish a Complete Streets Grant Program, creates the Complete Streets Grant Program Account in the State Treasury, and requires the WSDOT to consult with local jurisdictions prior to any design work when constructing, reconstructing, or making major repairs to city streets that are part of a state highway.
Consistent with the provisions of I-1053, SSB 5700 (passed) will approve the action taken by the Transportation Commission in January to (1) adopt the schedule of toll rates applicable to the SR 520 corridor, (2) adopt the schedule of photo toll charges applicable to the Tacoma Narrows Bridge, and (3) adopt the assessment of administrative fees for toll collection processes.
The Legislature authorizes the Transportation Commission to set and adjust toll rates on the SR 520 corridor in accordance with previously enacted statutory criteria. The Transportation Commission may exceed the SR 520 toll rates only in amounts not greater than those needed to meet maintenance and operating costs on the corridor and to make debt service payments and other associated financing costs. The Transportation Commission must send a report to the Legislature regarding any increase or decrease to the SR 520 toll rates, and to photo toll rates on the Tacoma Narrows Bridge, along with a detailed justification for the action.
SSB 5700 will also reauthorize toll revenue bonds for the SR 520 corridor. The definition of toll revenue for bonding purposes of the SR 520 corridor is broadened to include funds received for the benefit of transportation facilities in the state.
Education/Apprenticeship
SSB 5584 (passed) makes Labor and Industries responsible and accountable for apprenticeship within the state for federal purposes. L&I has rulemaking authority for apprenticeships but must consult with the Washington State Apprenticeship and Training Council (WSATC) prior to adopting rules. Any decision of the WSATC affecting registration and oversight of apprenticeship programs and agreements may be appealed to L&I within 30 days.
HB 2088 (passed) establishes the opportunity scholarship act and creates the opportunity scholarship program and the opportunity expansion program to: (1) Help mitigate the impact of tuition increases;(2) Increase the number of baccalaureate degrees in high employer demand and other programs; and (3) Invest in programs and students to meet market demands for a knowledge-based economy while filling middleincome jobs with a sufficient supply of skilled workers.
For funding purposes HB 2088 creates the opportunity scholarship account and the opportunity expansion account.
HB 1599 (passed) creates the Pay for Actual Student Success Program (PASS) to invest in proven dropout prevention and intervention programs and to provide an annual financial award for high schools that demonstrate improvement in dropout prevention indicators.
Subject to funds appropriated for this purpose, each year beginning in the 2011-12 school year, a high school that demonstrates improvement in its dropout prevention score compared to a baseline year is eligible to receive a PASS award. The award amount is determined by the OSPI based on appropriated funds and eligible high schools. The Legislature's intent is to provide an award commensurate with the degree of improvement and the size of the school. A minimum award amount must be established. OSPI must establish objective criteria to prioritize awards to high schools with the greatest need for assistance if there are not sufficient funds to provide an award for each school.
HB 1682 (passed) provides a business and occupation tax credit for newly created jobs by manufacturers of commercial airplanes, components of commercial airplanes, and commercial aircraft tooling when the jobs are filled by permanent full-time apprentices. The credit is equal to $5,000 for each new employment position when the position pays wages and benefits as defined by the state registered standards of apprenticeship. The positions must include a health care plan.
The maximum amount of credit for any taxpayer is $2,500 per year and may be carried forward and taken on a future tax return. Total credits for all taxpayers may not exceed $250,000 per year. Taxpayers using the credit must file an annual report including information on
employment, wages, and employer-provided health and retirement benefits.
HB 1808 (passed) establishes the launch year act that helps students progress from high school to a certificate or degree by increasing opportunities and providing a clear pathway. The bill also requires community and technical colleges and four-year higher education institutions to publish a list of high school courses and adopt uniform scores for proficiency exams or competency requirements that will be given credit toward certificate or degree requirements.
2SHB 1909 (passed) provides that up to three percent of operating fees are transferred to the Community and Technical College Innovation Account (Account) to be used to implement the State Board for Community and Technical Colleges (SBCTC) Strategic Technology Plan, a “roadmap” for how the community and technical college system can leverage 21st century technologies to support student achievement. The SBCTC must approve projects under the Plan to improve student achievement, student services, and increase system-wide administrative efficiencies. The SBCTC is required to develop a technical and operational business plan and bring large enterprise resource planning projects to the Legislature for approval.
The community and technical colleges are required to engage in substantial business process reengineering and adopt system wide approaches to admission, financial aid, student identification numbers, student transcripts, and other system wide processes. In addition, when pursuing an enterprise resource planning solution, the community and technical colleges must consider: opportunities for coordination and consolidation with other higher education institutions; adopting technology solutions that are already used at other higher education institutions; the short and long term costs of those solutions; and technical flexibility to support cost efficiencies.
SHB 1710 (passed) directs the Office of Superintendent of Public Instruction to convene a working group to develop a statewide strategic plan for secondary CTE. The plan must include a vision statement, goals, and measurable annual objectives for continuous improvement. The plan must also recommend activities that:
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can be accomplished within current resources;
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should receive top priority for additional investment; and
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could be phased-in over the next 10 years.
The working group must examine at least the following issues:
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proposed changes to high school graduation requirements and ways to assure that students continue to have opportunities to pursue CTE pathways;
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the relationship between CTE courses and the Common Core Standards;
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ways to improve access to high quality CTE in a variety of school settings;
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ways to improve the transition from K-12 to college;
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methods for replicating innovative middle and high schools; and
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a framework for transferrable and articulated certifications between secondary and postsecondary CTE so that students receive credit for knowledge and skills already mastered.
SHB 1829 (passed) creates an Indian Education Division, known as the Office of Native Education within the OSPI. The Superintendent of Public Instruction must appoint an individual to be responsible for the Office. To the extent state funds are available, with additional support from federal and local funds where authorized by law, the Office must:
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provide assistance to school districts in meeting the educational needs of American Indian and Alaska Native students;
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facilitate the development and implementation of curricula and instructional materials in native languages, culture and history, and the concept of tribal sovereignty;
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provide assistance to districts in the acquisition of funding to develop curricula and instructional materials in conjunction with Native language practitioners and tribal elders;
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coordinate technical assistance for public schools that serve American Indian and Alaska Native students;
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seek funds to develop and implement various support services for the purposes of increasing the number of American Indian and Alaska Native teachers and principals, and providing continued professional development;
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facilitate the inclusion of Native language programs in school districts' curricula; and
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work with all relevant agencies and committees to highlight the need for accurate, useful data that is appropriately disaggregated.
The Office also has an obligation to report to the Governor, the Legislature, and the Governor's Office of Indian Affairs on an annual basis, beginning in December 2012.
A Native Education Public-private Partnership Account is created in the custody of the State Treasurer. The purpose of the Account is to support the activities of the Office. State funds, federal funds, gifts, and grants from the private sector or foundations must be deposited into the Account. Only the Superintendent or his or her designee may authorize expenditures from the Account.
Unemployment Insurance
SHB 1091 Modifying the unemployment insurance program.
Taxes.
The formulas used to calculate the social cost factor are changed for rate year 2011 and after. For rate classes one through 20, the flat rate is capped. If there are more than 10 months of benefits in the Unemployment Insurance Trust Fund (Trust Fund), the cap is 1.22 percent. If there are 10 months of benefits or less in the Trust Fund, the cap is 1.22 percent or 150 percent of the previous year's flat rate, whichever is greater. Also, the multipliers used to calculate the graduated rates are reduced. The range is 40 percent to 116 percent of the flat rate (instead of from 78 percent to 120 percent).
For rate classes 21 through 40, the flat rate is capped in the same manner as for other rate classes. The graduated rate continues to be 120 percent of the flat rate.
Benefits.
An additional $25 is added to an individual's weekly benefit amount. Corresponding increases are made to the maximum amount of regular benefits payable (maximum duration), the maximum amount payable weekly, and the minimum amount payable weekly.
The temporary benefit increase is applicable to claims with an effective date on or after March 6, 2011, and before November 6, 2011. Except for individuals receiving extended unemployment compensation or extended benefits, the temporary benefit increase is not added in any week after the total amount of temporary benefit increases for all weeks equals $68 million. Weeks of emergency unemployment compensation and extended benefits are not considered in calculating the total amount.
During the two-year period consisting of Fiscal Years 2012 and 2013, a total amount equal to the total amount of temporary benefit increases is requisitioned first from the Trust Fund, if the remaining modernization incentive payment is credited to the Trust Fund.
The temporary benefit increase is not charged to the experience rating accounts of employers, and is not considered when calculating the social cost factor rate. It also does not count when determining eligibility for Apple Health for Kids, the Basic Health Plan, and Working Connections Child Care.
Training benefits.
The training benefits program is modified for claims on or after July 1, 2012. The definition of "dislocated worker" is expanded. A dislocated worker is an individual who: (1) has been involuntarily and indefinitely separated from employment as a result of a permanent reduction of operations at the individual's place of employment, or has separated from a declining occupation; and (2) is eligible for or has exhausted benefits.
For dislocated workers, certain deadlines and requirements are eliminated. These are: the 90-day application deadline and the 120-day enrollment deadline; the full-time enrollment requirement; and the five-year limitation on qualifying for training benefits. The requirement that the Employment Security Department (Department) verify employment eligibility is continued.
The cap on funding for training benefits is modified. Funding continues to be limited to
$20 million per fiscal year, in addition to any funds carried forward from previous fiscal years. However, if available funding is equal to or less than $5 million, training benefits are not obligated for low-wage workers, military personnel and National Guard members, and persons who are disabled. If funds are exhausted, training benefits are obligated to dislocated workers only, and available funding for the following year is reduced by a corresponding amount.
Upon approval of an individual's training benefits plan, regular benefits are not charged to the experience rating accounts of employers.
Extended benefits.
The look-back period for indicators of high unemployment used to determine whether extended benefits are payable is changed for 2011. A three-year look-back period may be used instead of the two-year look-back period.
The period during which training benefits are payable is extended. For individuals who are eligible for extended benefits because of the three-year look-back period, training benefits are payable for up to three years beyond the end of the benefit year of the regular claim.
The eligibility period for extended benefits is also extended through 2011. The eligibility period consists of the week ending February 28, 2009, and applies as provided under the federal Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, as it existed on December 17, 2010, or a subsequent date provided by the Department by rule.
The Commissioner of the Department is given authority and discretion to make determinations to remedy any conflicts with federal requirements.
Opposed Bills Labor Worked to Defeat
The bills above are part of a diligent offensive strategy and collaboration between the Building Trades lobby team, the WSLC, and a variety of allies to promote legislation that align with our mission to protect and increase opportunity to earn fair wages, work safely and provide a quality life for Washington’s working men and women. Responding to harmful legislation detrimental to Building Trades Members, families and our contractors is equally important and as we work to advance our legislative agenda. The following bills are a small sample of harmful legislation that labor worked with Legislators to defeat. Though not enacted this session, the following bills will be valid for another run at the legislature next year.
SSJR 8215 reduces the debt limit down from 9-7 percent in half percent increments starting in Fiscal Year 2016 and completing in Fiscal Year 2022. This reduction in the debt limit will cost the construction industry an estimated 100,000 over a ten year period.
HB 1868 Modifies industrial insurance long-term disability provisions relating to: (1) permanent partial disability awards; (2) limiting pension awards following a permanent partial disability award; (3) allowing a settlement option for injured workers age fifty-five and older; and (4) terminating pensions when the workplace residuals are not the predominant factor in a workers' inability to work or be retrained.
ESHB 1487 gives retrospective rating employers and groups who administer their plans with an approved claims administrator authority to schedule medical examinations and vocational assessments and close certain claims.
HB 1258 allows employers to pay a training wage for a specified period of time that is less than minimum wage
SB 5405 reduces Washington ferry workers’ ability to collectively bargain.
SHB 1516 places stringent, impractical efficiency requirements on the state ferry system.
HB 1119 privatizes the management of the state ferry system.
HB 1531 adjusts the minimum wage rate based on changes in consumer prices.
SB 5624 redefines the term employ to exclude the use of an employer's vehicle for travel by an employee and activities performed by an employee that are incidental to the use of such a vehicle for commuting, in contradiction to the Brinks legal decision.
HB 1535 requires business payment contracts containing a personal guarantee by the representative of a business entity to include a separate signature line with a notice that the signer that he or she is personally guaranteeing sums due under the agreement.
SB 5088/HB 1300 authorizes a public agency to charge a person making a public records request for personnel costs incurred in responding to such a request.
SB 5358 removes prevailing wage requirements for public building service maintenance contracts.
HB 1433 reduces the time for filing a complaint on nonpayment of prevailing wages.
HB 1872 modifies the definition of occupational disease for purposes of industrial insurance to require that the disease arise out of and in the course of the particular employment and authorizes compromise and release regarding any or all aspects of industrial insurance claims under certain conditions.
HB 1964 requires wage simplification in the calculation of workers' compensation benefits.
HB 1971 greatly diminishes the time a contractor can protest during the construction bid process.
HB 1970 authorizes state agencies or municipalities to waive certain payment and performance bond requirements and retainage requirements for public works projects with a total contract amount of five thousand dollars or less.
HB 1242 prohibits purveyors from conducting annual backflow preventer inspections and tests required by rules adopted by the State Board of Health. Purveyors must develop and maintain a list of local people or firms who are qualified to conduct annual backflow preventer inspections and tests.
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