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2011 Legislative Review

Sep 21, 2011

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.

For more information on the legislation recorded here, link to the State Legislature's Bill Information website at: http://www.apps.leg.wa.gov/billinfo/

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:

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.
Eliminates the fiscal year 2012 cost-of-living adjustment with no catch-up, and delays the first cost-of-living adjustment.
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.
Requires permanent total disability awards to be offset by prior permanent partial disability (PPD) awards and eliminates interest on unpaid PPD awards.
Establishes in statute Safety and Health Investment Projects grants.
Creates an Industrial Insurance Rainy Day Fund.
Requires the Department of Labor and Industries to apply certain best practices to address employer, worker, and provider fraud.
Requires the Joint Legislative Audit and Review Committee to conduct a performance audit of the workers' compensation claims management system.
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:

http://www.lni.wa.gov/ClaimsIns/Providers/ProjResearchComm/OHS/default.asp#6

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 21^st 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:

can be accomplished within current resources;
should receive top priority for additional investment; and
could be phased-in over the next 10 years.

The working group must examine at least the following issues:

proposed changes to high school graduation requirements and ways to assure that students continue to have opportunities to pursue CTE pathways;
the relationship between CTE courses and the Common Core Standards;
ways to improve access to high quality CTE in a variety of school settings;
ways to improve the transition from K-12 to college;
methods for replicating innovative middle and high schools; and
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:

provide assistance to school districts in meeting the educational needs of American Indian and Alaska Native students;
facilitate the development and implementation of curricula and instructional materials in native languages, culture and history, and the concept of tribal sovereignty;
provide assistance to districts in the acquisition of funding to develop curricula and instructional materials in conjunction with Native language practitioners and tribal elders;
coordinate technical assistance for public schools that serve American Indian and Alaska Native students;
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;
facilitate the inclusion of Native language programs in school districts' curricula; and
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.

2010 Legislative Review

Apr 28, 2010

Washington State Building and

Construction Trades Council, AFL-CIO

Legislative Review 2010

Introduction
The short, 60-day 2010 Legislative Session, that extended into an additional thirty-day “special session”, was fraught with challenges for Legislators and lobbyists with 1,534 new pieces of legislation introduced plus the 1,995 bills which remained active from the 2009 Session. The state was also struggling with a multi-billion dollar budget deficit that Legislators were constitutionally bound to balance. The Washington State Building & Construction Trades Council, AFL-CIO entered the 2010 Session aware that business would push for both workers' compensation and unemployment insurance "reform", and succeeded in protecting and maintaining benefits for Washington workers. In addition to this defensive work, Washington Union construction workers are experiencing severe unemployment levels that have not been seen since the Great Depression, so our legislative agenda has focused on job creation from start to finish.

The Underground Economy Task Force in the Construction Industry has finished as an official group, but the Building Trades are dedicated to continued efforts toward the elimination of the underground economy including worker misclassification, contractor registration and proper prevailing wage payments.

Overall the 2010 legislative session has been a success thanks to the efforts of engaged Affiliates and our Labor lobbying partners. I would like to thank all Affiliates that were able to participate this year through phone calls and emails to Legislators, attending legislative committee hearings and those that testified in committee. The many legislative successes detailed below could not have been achieved without your help and personal contributions.

Off-Site Prefabrication

EHB 2805 (PASSED) Represents the culmination of several years of negotiations between stakeholders and legislators to reach agreement to temporarily require and allow access to out of state documentation for off-site prefabricated items provided for the construction of Washington public works projects. EHB 2805 requires all public works contracts estimated to cost over $1 million must contain a provision requiring contractors and subcontractors to submit information regarding any off-site, prefabricated, nonstandard, project specific items produced under each contract produced outside Washington. Information that must be provided includes: the estimated cost of the public works project; the name of the awarding agency and the title of the public works project; the contract value of the off-site, prefabricated, nonstandard, project specific items produced outside Washington; and the name, address, and federal employer identification number of the contractor that produced the items. The information will be submitted by the contractor or subcontractor who directed for the items. Failure to submit the information does not constitute a violation of Washington prevailing wage requirements. "Off-site, prefabricated, nonstandard, project-specific items" means products or items that are: made primarily of architectural or structural precast concrete, fabricated steel, pipe and pipe systems, or sheet metal and sheet metal duct work; produced specifically for the public work and not considered to be regularly available shelf items; produced or manufactured by labor expended to assemble or modify standard items; and produced at an off-site location. The Department of General Administration (GA) must develop standard contract language regarding these requirements and post the language on the agency's website. GA must transmit information collected and submit it on an annual basis for annual review to the Capital Projects Advisory Review Board. In order to meet the responsible bidder criteria and qualify to be awarded a public works project, a bidder on a public works subject must not have violated these requirements more than once as determined by the Department of Labor and Industries. The provisions apply to contracts entered into on or after September 1, 2010, and the law expires December 31, 2013. The Department of Transportation and local transportation public works are exempt from this law.

HB 1992 (NOT PASSED) Would require the payment of prevailing wages when the equivalent of public dollars were used in "public/private partnership" construction projects. The equivalent of public dollars includes: tax incentives, loans provided by a public entity, or public land or property that is sold or leased at below market value. HB 1992 was introduced in the 2009 legislative session, received a public hearing in the House Commerce and Labor Committee, but moved no further that year. This year the bill repeated from the beginning with a public hearing before the House Commerce and Labor Committee where concerns were vetted from representatives of port districts. The bill passed out of Commerce and Labor and advanced to the House Ways & Means [fiscal] Committee for further public hearing from a fiscal perspective. Labor met with the port representatives who agreed that they could support the bill as long as communications and negotiations continued toward mutually agreeable language before the House Floor vote. However, HB 1992 proceeded no further than the House Ways & Means Committee where the bill was “put down” and passage was not considered by the committee. The issue of public/private partnerships will remain a legislative priority for the Building Trades.

The Underground Economy in Construction Task Force

SHB 2789 (PASSED) Allows the Departments of Labor and Industries, the Employment Security, and Revenue to apply for and obtain a superior court order authorizing a subpoena in advance of its issuance. The power to issue subpoenas grants these departments increased power to pursue unscrupulous contractors that cheat their workers and the state by avoiding workers compensation and unemployment insurance taxes. The application must: state that an order is sought pursuant to the authority granted; specify the records, documents, or testimony; and declare under oath that an investigation is being conducted for a lawfully authorized purpose and that the documents or testimony are reasonably related to an investigation within the L&I, the ESD, or the DOR's authority, as appropriate. Where the application is made to the satisfaction of the court, the court must issue an order approving the subpoena. No prior notice to any person is required.

2SSB 6575 (VETOED) Would have established a dedicated account to enforce penalties for unregistered contractors. Affiliates joined the lobby team and UECTF members to amend the bill to include worker misclassification language that has been a registered priority goal of labor reps over the four years of the task force. Yet, after final negotiations with hold out stakeholders (AGC) that extended through interim work and ran into session, an agreement was reached and reflected in the public testimony on SSB 6575. Our communication with Legislators to this fact and tabulated vote count indicated sufficient support for final passage without amendments of the misclassification section; the stakeholder’s organization sabotaged the message of their agreement during final floor action on two amendments that removed both the section on worker misclassification section and the class C felony penalty. Information has been retained on the “vote counts” of Legislators who claimed their understanding and support to both vote to retain the misclassification section and passage of the bill, and those Democratic Legislators who worked to defeat this section - given their opportunity to speak up during the years of work of the task force and during our many meetings with them individually to advance solutions. This background now counts heavily in the overall 2010 labor grade of individual Legislators for Affiliate review come election season. Governor Gregoire’s veto of the diluted bill is relevant in this budget cycle, and her message “Narrowing the underground economy is a laudable goal, and one that should be pursued with stronger legislation,” indicates her disappointment in the version the Legislature passed to her desk. As we move forward in 2010 and 2011, eliminating Washington's underground economy is a high priority issue for the WSBCTC and Affiliates.

Affiliate Sponsored Legislation

SHB 2546 (PASSED) Increases the number of classroom hours required to renew an electrical training certificate from 16 to 32 hours beginning on July 1, 2011; and from 32 to 48 hours beginning July 1, 2013. Upon request, the Department of Labor and Industries must provide information to legislative committees on the implementation of the new trainee education standards by December 1, 2012.

SHB 2555 (PASSED) Allows the Director of Labor and Industries or the Director's representatives to issue subpoenas to enforce the production and examination of any information needed to enforce the law surrounding electrical installations and electricians if there is reason to believe a violation has taken place. The subpoena may only be issued if the person to which the electrician and electrical installation law applies fails to provide the requested information. The subpoena and the request for information must describe the possible violation, cite relevant law, and explain how the information being requested or subpoenaed is reasonably related to the possible violation. The Superior Court is authorized to enforce such a subpoena.

SHB 2745 (PASSED) Anticipating enforcement of federal law, SHB 2745 was passed to update certification requirements for individuals that deal with lead-based paint. Individuals involved in modification of homes, child care facilities and schools, built before 1978, must now meet the requirements for training and certification similar to those individuals currently involved in lead-based paint activities such as inspections, risk-assessments and abatement activity. Work practice standards must include all lead-based paint activities. The Department of Commerce is authorized to issue badges with photo identification for workers who are involved in renovation and dust sampling activities involving lead-based paint. The Department may assess a fee to process the application.

2SHB 2551 (PASSED) Creates the Washington Vaccine Association (WVA) a nonprofit corporation to facilitate universal purchase of vaccines for children and assess health carriers and third-party administrators for the cost of vaccines for certain children under the age of 19. Members of the WVA Board of Directors are provided immunity from liability for lawful actions taken in the performance of their duties. The Board includes five representatives from the licensed health carriers with the most covered lives in Washington; four third-party administrators, two representing the Taft-Hartley health benefit plan with the most covered lives in Washington, and two representing private self-funded health care purchasers; two health care providers, including one board certified pediatrician; and the Secretary of the Department of Health as an ex officio member. Beginning November 1, 2010 and annually thereafter the WVA Board must establish the amount of the assessment and the assessment payment plan. Payments are deposited in the Universal Vaccine Purchase Account established in the State Treasury. The assessment amount is determined by multiplying the ratio of the number of covered children (non-VFC children under 19 years old) to the total number of Washington residents under 19 years old and by the total non-federal program costs for the vaccines. Each participant must be assessed in proportion to their number of covered children. The initial assessment is calculated to reflect the anticipated total non-federal program cost for the upcoming calendar year, as well as the anticipated non-federal program cost for May through December 2010. Participants may deposit voluntary assessments into the Account prior to December 31, 2010 that will be credited to the total assessment due. Advance notice of the assessment due must be provided by November 15 of each year, and initial payment must be deposited within 90 days.

HB 3086 (NOT PASSED) Would have provided that the state and federal courts have concurrent jurisdiction over an action: brought against a surety to recover for costs of labor, materials, or improvements, including an action involving a claim for delinquent contributions to a benefit plan; and, to foreclose a lien for labor, materials and taxes on public works, including an action involving a claim for delinquent contributions to a benefit plan.

Construction Jobs

ESSB 6789 (PASSED) A sales and use tax exemption provides for eligible server equipment and power infrastructure for eligible computer data centers in rural counties. The exemption expires on April 1, 2018. In order to qualify, a data center must: be located in a rural county; have at least 20,000 square feet dedicated to housing servers; and have commenced construction between April 1, 2010, and before July 1, 2011. Commencement of construction means the date that a building permit is issued under the building code for construction of a computer data center. Construction of a data center includes the expansion, renovation, or other improvements made to existing facilities, including leased or rented space. Eligible server equipment is the original server equipment installed in a data center after April 1, 2010, and replacement server equipment which replaces servers originally exempt under this law and is installed prior to April 1, 2018. Several companies have indicated that with the tax exemption provided in this legislation, data centers will be built in Washington (construction jobs and revenue that may have gone to other states).

SSB 6889 (PASSED) Allows the Washington State Convention and Trade Center in Seattle to operate as a Public Facilities District increasing financial autonomy from the current limitations with the Center account linked to the state budget. With increased financial authority, the Convention Center can move forward with expansion plans to attract much larger venues to the center and state, create thousands of construction jobs both directly and indirectly through future hotel development; and provide opportunity for other family waged occupations in Seattle. The new PFD is governed by a nine-member board of directors. Three members are appointed by the Governor, three by King County, and three by the City of Seattle. One of the city’s appointments must be a representative of organized labor. At least one of the Governor’s appointments and one of the county appointments must be a representative of the lodging industry. The initial board of the PFD is made up of the nine-member board of the Center. The Governor must designate which of the initial board members must serve two-year terms and which must serve four-year terms. Four of the initial nine board members must serve two-year terms of office. The new PFD is authorized to impose lodging taxes on hotels, motels, and similar facilities with at least 60 units; the rate is 7 percent in Seattle and 2.8 percent in the rest of King County. The new PFD may impose a 2 percent lodging tax in Seattle that credits against the state sales tax rate.

EHB 2561 (PASSED) Advances a construction jobs referendum to the people of Washington to vote into law this November. If passed in November, over 30,000 construction jobs will be created through state funds for energy efficiency upgrade retrofits for public schools, state universities and other public facilities. If passed by the voters, the State Finance Committee is authorized to issue $505 million in general obligation bonds to create jobs by constructing capital improvements to public facilities for energy costs savings. The Department of Commerce, in consultation with the Department of General Administration and Washington State University's (WSU) Energy Program, must administer the Jobs Act. The GA must develop guidelines for the implementation of energy savings performance contracting projects by December 31, 2010. Related projects are projects that must be completed in order for the energy efficiency improvement to be effective. The Department of Commerce must consult with the GA and the WSU Energy Program to establish a competitive process and evaluate applications. The Department of Commerce determines the final grant awards.

ESSB 6468 (PASSED) Is a common sense expansion to address necessary structural repair needs based on last year’s residential weatherization law designed to save energy, lower resident energy bills, and provide local job and training opportunities. The Department of Commerce must prioritize weatherization and structural rehabilitation projects to facilitate funding from federal energy efficiency programs such as Weatherization Assistance, Energy Efficiency and Conservation Block Grants, residential energy efficiency aspects of the State Energy Program and the retrofit ramp-up program. Workers engaged in weatherization works that encounter structural deficiencies, including the presence of asbestos, lead and mold hazards in the course of their work to repair or otherwise solve the encountered problem. Service providers, not programs, that receive funding must report to the department at least quarterly the number of homes repaired, rehabilitated, and weatherized.

SSB 6712 (PASSED) Increases the application deadline for the six-year property tax and leasehold excise tax exemptions for new or expanded manufacturing facilities producing alternative fuels from December 31, 2009, to December 31, 2015. This extension will encourage the construction of additional manufacturing facilities in Washington.

HB 3181 (NOT PASSED) The proposed Clean Water Act of 2010 was supported by a wide coalition of labor, environmentalists, cities, counties and state agencies that would have provided construction jobs around the state to mitigate egregious locations where road polluted storm water runoff enters sensitive waterways and catch basins. We expect this issue will be reintroduced in 2011.

Education

SSB 6357 (PASSED) Will lead to policies that allow academic credit for a variety of “life experiences” including pre apprenticeship and apprenticeships. The College Board, in consultation with the Higher Education Coordinating Board (HECB), the Council of Presidents, the Workforce Training and Education Coordinating Board, representatives from Washington institutions of higher education, representatives from two- and four-year faculty, representatives from private career schools, and representatives from business and labor must develop policies for awarding academic credit for learning from work and military experience, military and law enforcement training, career college training, internships and externships, and apprenticeships. The policies must address issues regarding verification, accreditation, transfer of academic credit, licensing and professional recognition, and financial aid. Policies developed by the College Board, along with recommendations, are submitted to the appropriate committees of the Legislature by December 31, 2010.

E2SHB 2630 (PASSED) Requires that colleges give priority in the use of Worker Retraining funds to programs in construction, aerospace, health care, long-term care, advanced manufacturing, renewable energy industries, and high-demand occupations in strategic industry clusters as identified by the state and local comprehensive workforce development plans developed by the Workforce Education and Training Coordinating Board and the local Workforce Development Councils. The State Board for Community and Technical Colleges is encouraged to develop a single website for the purpose of advertising the availability of funding for the Worker Retraining, Opportunity Grant, Opportunity Internship programs, training programs approved by the commissioner of the Employment Security Department, training programs prioritized by industry, and training programs administered by labor and management partnerships. The Opportunity Express Account is created and stipulates that funding may be used for certain training programs and administrative costs up to $88,844,000.

Unemployment Insurance

SSB 6524 (PASSED) Addresses unemployment insurance penalties and contribution rates for employers who are not “qualified employers.” Starting in 2011 the delinquent tax rate for employers without an approved agency deferred payment contract will be 1 percent higher than the rate would have been had the employer not been delinquent. If the employer is delinquent for a second or more consecutive year, the rate must be 2 percent higher than it would have been had the employer not been delinquent. If the delinquent employer enters an approved agency-deferred payment contract within 30 days of the date the Employment Security Department (ESD) sent its first tax rate notice, one-half of 1 percent must be deducted from the delinquent tax rate. Starting January 1, 2011, an employer that knowingly fails to register with ESD and obtain an employment security account number is subject to a quarterly penalty of $1,000 or two times the taxes due, whichever is greater. The penalty will not apply if the employer can prove that it had good cause to believe it was not required to register with ESD.

SHB 2649 (PASSED) Corrects references to unemployment insurance statutes concerning employer experience rating accounts and contribution rates. Corrections are made to references of the Employment Security Act that were amended and restructured in 2009. Corrections are also made to references to a definition section that was alphabetized in 2009.

Transportation

ESSB 6392 (PARTIAL VETO) Allows bond proceeds, backed by revenue generated from tolls on the SR 520 corridor, to be used for any project within the SR 520 bridge replacement and high occupancy vehicle (HOV) program, including projects beyond the replacement floating bridge. However, $200 million in bond proceeds must be used only to fund the west side of the corridor program, and may be used for effective connections for high occupancy vehicles and transit for SR 520. The corridor program must include the following elements, consistent with the (1) legislatively identified total project cost of $4.65B, (2) legislative intent to keep cost savings within the corridor, and (3) opening of the bridge to vehicular traffic in 2014:

a minimum carpool occupancy of 3+ persons on the SR 520 HOV lanes;
HOV lane performance standards;
a work group to study alternative transit connections to the university link light rail line;
a work group to make recommendations regarding options for planning and financing high capacity transit through the corridor;
a mitigation plan for the Washington Park Arboretum;
a work group to make recommendations regarding design refinements to Washington State Department of Transportation's (WSDOT) preferred alternative; and
an account into which civil penalties for failing to pay tolls on the corridor are deposited, to be used for any project within the corridor, including mitigation.

ESSB 6392 contained a height limit of no more than 20 feet from the water; however, in an effort to ensure that the best designs be considered, the Governor vetoed the requirement.

ESSB 6499 (PASSED) addresses tolling authority and the use of tolling technology for the Department of Transportation.

The toll collection account uses are expanded to allow for operations that benefit multiple toll facilities cleared through this account. At least monthly, operating activities and interest earnings must be distributed to the appropriate toll facility

HB 1591 (PASSED) clarifies that a transportation improvement means, in addition to any project contained in the transportation plan of the state or regional transportation planning organization, any project contained in the transportation plan of a city, county, or any jurisdiction eligible to be included in a Transportation Benefit District (TBD). Transportation Benefit Districts are authorized to impose impact fees for transportation improvements within the district that are constructed by any entity, not only for those improvements constructed by the TBD itself. Transportation Benefit Districts that initially impose a voter-approved sales and use tax after July 1, 2010, are authorized to impose the sales and use tax beyond the 10-year limitation if the tax revenues are dedicated to the repayment of general obligation bonds.

Others Bills

SHB 2527 (PASSED) Expands the cite certification authority of the Energy Facility Site Evaluation Council (a "one-stop" siting process for major energy facilities in Washington) and ultimately lays the groundwork for Washington nuclear energy expansion.

SB 6401 (PASSED) Establishes an alternative process for selecting subcontractors for GC/CM projects. The process may only be used for the selection of a mechanical subcontractor, an electrical subcontractor, or both, and when the anticipated value of the subcontract will exceed $3 million. To use the process, the public agency and the GC/CM must determine that using the process is in the best interest of the public. A hearing must be conducted for the purpose of receiving comments and the hearing notice must be published in a legal newspaper at least 14 calendar days before the hearing. Notice of the public solicitation of proposals must be provided to the Office of Minority and Women's Business Enterprises. A public solicitation of subcontractor proposals must include a complete description of the project, including problematic, performance, and technical requirements and specifications; the reasons for using the alternative selection process; a description of the minimum qualifications of the firm; a description of the evaluation process; the form of the contract, including any preconstruction services; the estimated maximum allowable subcontract cost; and bid instructions for finalists. Evaluation factors include, but are not limited to:

the ability of the firm's professional personnel;
the firm's past performance on similar projects;
the firm's ability to meet time and budget requirements;
the scope of self-performed work and the firm's ability to perform that work;
the firm's proximity to the project location;
the firm's capacity to successfully complete the project;
the firm's approach to executing the project;
the firm's approach to safety on the project;
the firm's safety history;
if selected as a finalist, the firm's fee and cost proposal; and
the firms plan for outreach to minority and women-owned businesses.

A committee is formed to evaluate the proposals and must include at least one representative from the public body. Final proposals will be requested from the most qualified firms. The firm submitting the highest scored final proposal must be selected. If the GC/CM is unable to negotiate a satisfactory maximum allowable subcontract cost with the selected firm that is deemed to be fair, reasonable, and within available funds, negotiations with that firm must be formally terminated and negotiations will begin with the next highest scored firm. The GC/CM may contract with the selected firm to provide services during the design phase of a project. The maximum allowable subcontract cost must be used to establish a total subcontract cost for purposes of a performance and payment bond, and must be negotiated when the construction documents and specifications are at least 90 percent complete.

HB 2575 (VETOED) Membership on the CPARB would have been expanded to 24 members. The additional member passed by the Legislature would have sat a regional transit authority representative as a local public owner.

Opposed Bills Labor Worked to Defeat

The bills listed prior are the result 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 often more difficult and time consuming 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.

SB 6438 Would have radically altered the calculation of prevailing wages for public works projects. The new equation would use an average rate calculation across a given craft and shift to using the entire county, rather than the most populated city in the county, for determining that average. This method would significantly decrease prevailing wages across the entire state.

HB 2879 Would have allowed private insurance companies to participate in Washington’s industrial insurance system and established a task force dedicated to eliminating our state-funded worker’s compensation system.

HB 3149 Attempted to comprehensively rewrite workers’ compensation law. In addition to more than a hundred pages of replacement statute language, the bill would take the industrial insurance fund from Labor and Industries and have it managed by the Office of the Insurance Commissioner.

SB 5462 Was a workers’ compensation bill that altered the calculation of benefits paid. The “simplification” proposed in the bill would have cut benefits for many recipients from now forward.

HB 2950/ SB 6638 Would have authorized voluntary medical provider networks and voluntary settlement agreements and stated that the workers' compensation system would only be responsible for costs due to workplace injuries.

HB 2920/SB 6587 Would have limited employer contribution rates for unemployment insurance with a maximum flat tax. The current UI system requires that employers’ payments into the UI fund be calculated based on a rating that factors in the amount of layoffs a given company has, this calculation was proposed by business during a previous session. Given the economic climate and wide proliferation of layoffs, now is the time to ensure that the UI fund is solid and not the time to allow business to back down from their commitment.

HB 3103 Was another bill introduced to reduce unemployment taxes for employers, that we did not support placing a strain on the UI trust fund when UI numbers are high over long periods of time and without increasing relief to the unemployed – for the BTs that would be to return the multiplier to 4.0 from 3.85.

SB 6585 Attempted to remove part six from the seven part test that defines an employer for Washington. The bill would remove the requirement that the “individual is maintaining a separate set of books or records that reflect all items of income and expenses of the business which the individual is conducting.”

HB 6376 Would have shifted oversight of contractor licensing from Labor and Industries to the Department of Licensing. A seven panel board of contractors would then be established to oversee and enforce all rules relating to contractor licensing.

SB 5021 Would have reduced or eliminated regulations relating to electrical work for all renewable energy construction projects.

HB 3077/SB 6573 Would have removed the sales tax exemption for coal used at coal-fired power plants. This legislation would have had dire consequences for the Centralia power plant and led to further unemployment in that already economically depressed region.

The 2011 Legislative Session is an important election cycle away. Off presidential election years experience a reduced turnout of voters. Don’t let this be the case for our Building Trades Affiliates and families! The November 2, 2011 ballot will have important issues and candidates for us. In particular, we know we’ll wage a ballot war to fight against private industrial insurance interests moving into Washington State. We will vote on the Jobs Act of 2011 to retrofit our public schools and structures to save energy and provide apprenticeship opportunities with local schools; more information will be transmitted on both issues as we move into the election cycle. Keep connected in your communities to speak to candidates running for office, ask them about their positions on misclassification of workers, and educate them about prevailing wages, and seek their support for our work to pass laws to that strengthen our Washington building and construction trades professionals and our signatory contractors who support and help educate our local communities.

Six Years of Legislative Action

Aug 28, 2009

Washington State Building & Construction Trades Council, AFL-CIO
Select Legislative Outcomes from 2004-2009

2004

HB 2546 provides a tax exemption for the construction of High Tech and biomedical buildings.

HB 3045 allows expansion of the South Seattle Community College campus without which several apprenticeship classes hosted there would have been displaced.

Many bills were opposed during the session, below are a few examples.

SB 5378 would have cut injured workers' benefits.

SB 6395 would have required employers to report worker compensation claims not allowing workers to report claims to their doctor.

SB 6394 was a compromise and release bill

2005

HB 2255 (Unemployment Insurance) reinstates "liberal construction" language (a judge must find in favor of the worker unless the employer proves their case beyond doubt) and two-quarter averaging with a 3.85 multiplier for unemployment insurance calculations, though containing a sunset after two years.

SB 6103 provides a 9.5 cent gas tax that helped fund much needed transportation projects across the state and generated thousands of construction jobs.

SB 5097 (Apprenticeship Utilization) codifies Governor Locke's executive order 00_01 requiring 15 percent apprenticeship utilization, by apprentices enrolled in a state approved apprenticeship training program, on General Administration construction projects estimated to cost more than one million dollars.

HB 1541 creates the Transportation Innovative Partnerships Act allowing WSDOT to enter public/private partnerships for the construction of transportation facilities, maintaining WSDOT prevailing wage requirements.

Many bills were opposed during the session, below are a few examples.

HB 1905 would have repealed an injured worker’s right to challenge his or her L&I time-loss rate determination if a subsequent “change of circumstances” warranted reexamination.

SB 5793 was a compromise and release bill.

2006

SB 6885 removes the sunset under HB 2255 and permanently restored two quarter averaging with a 3.85 multiplier and "liberal construction" language for unemployment insurance calculations.

SB 6480 advances apprenticeship utilization requirements to include WSDOT construction. The requirement was phased in and now requires 15 percent apprenticeship utilization, by apprentices enrolled in a state approved apprenticeship training program, on all projects estimated to cost more than two million dollars.

HB 2789 (Running Start to the Trades) directs the Washington State Apprenticeship and Training Council to conduct an educational outreach program with individual state-approved apprenticeship programs and the Office of the Superintendent of Public Instruction directed at middle and secondary school students, parents, and educators to teach that construction apprenticeship is a viable career opportunity now and in the future.

HB 2939 establishes the Energy Freedom Program in the Department of Agriculture that offers up to five million dollars in loans to companies for construction of facilities for purposes such as bio-fuel production that will create construction jobs and require payment of prevailing wages,

2007

HB 1244 (hour banks) modifies the statutory definition of wages used to calculate workers' compensation benefits to include an employer's payment (payment from of a Building Trades Member’s wage) or contributions for health care benefits unless the employer continues ongoing and current payment or contributions for these benefits at the same level as provided at the time of injury.

SB 5920 L&I creates a vocational rehabilitation pilot program that will run from January 1, 2008, until June 30, 2013. The pilot allows up to $12,000 for voc rehab costs and two options to pursue; the worker may participate in the vocational plan implemented by L&I or a self-insurer or opt-out of the plan and receive six months of time-loss paid in bi-weekly payments.

HB 2010 establishes a definition of responsible bidder for contractors applying for public works contracts.

HB 1370 establishes that governmental employee wages will not be included in surveys to determine prevailing wage rates.

SB 5373 completes the Unemployment Insurance Task Force work begun in 2006 by establishing reporting requirements and penalties regarding UI data submission.

SB 5926 created the Joint Legislative Task Force on the Underground Economy in the Construction to examine and make recommendations relating to Washington's underground economy in construction.

HB 1898 advances apprenticeship utilization requirements to include school district public works projects. The requirements are still being phased in. Currently 12 percent apprenticeship utilization, by apprentices enrolled in a state approved apprenticeship training program, is required for projects estimated to cost two million dollars or more; by January 1, 2010 15 percent apprenticeship utilization will be required on projects estimated to cost one million dollars or more.

HB 1968 requires that a sprinkler fitter must possess a journey-level or residential certificate, trainee certificate, or temporary permit to install sprinkler systems.

HB 2171 required L&I to establish crane certification standards and qualified crane operator requirements.

HB 1506 establishes that public bodies may not evaluate or disqualify proposals for a GC/CM contract based on the terms of a collective bargaining agreement. Also a GC/CM may not violate or waive the terms of a collective bargaining agreement in preparing subcontract bid packages.

SB 5443 prohibits employers from engaging in claim suppression and established penalties for employers guilty of the offense.

SB 5676 revises provisions for receipt of temporary total disability by establishing that prior closure of such a worker’s compensation claim, or the receipt of permanent partial disability benefits, does not affect the rate at which loss of earning power benefits are calculated upon reopening the claim.

HB 1876 modifies HVAC/R certification requirements and established a HVAC/R board to conduct proceedings for denying applications, suspending or revoking certificates, and imposing penalties.

2008

HB 3122 (Underground Economy Task Force bill) creates a test for determining whether a construction worker is a covered worker or uncovered independent contractor for purposes of unemployment and industrial insurance laws.

SB 6732 (Underground Economy Task Force bill) is an omnibus bill that applied a number of recommendations from the Underground Economy Task Force.

SB 6751 established an additional "good cause" quit for receiving unemployment insurance covering individuals who left work to enter an apprenticeship program approved by the Washington State Apprenticeship Training Council.

HB 3139 (benefits on appeal) allows an injured worker to receive workers comp benefits while decisions about their claim are on appeal, whether their employer is self-insured or contributes to the state fund at L&I.

SB 6694 increases filing fee for prevailing wage intents and affidavits from $25 to $40. Among other administrative needs, the fee will provide two additional FTEs for compliance and outreach, and fund outreach, education, training and marketing expenses for prevailing wage compliance.

HB 2639 allows Public Utility Districts to Enter into Limited Liability Corporations and requires that construction projects resulting from the LLC status pay prevailing wages.

HB 2893 adds a Labor Representative Position to the Forest Practices Board.

SB 6377 promotes skill centers and pre-apprenticeship education and training to connect public education to JATCs.

2009

HB 1906 provides economic stimulus by increasing unemployment insurance benefits by $45 for the period of May 3, 2009 through January 3, 2010. The minimum weekly benefit for this same period is raised to $155.

HB 1402 limits ex parte contact with medical providers after appeals have been filed under industrial insurance.

SB 5873 advances apprenticeship utilization requirements to include four-year institutions of higher education. The requirement will be phased in beginning January 1, 2010 and will be in full effect by January 1, 2012, when projects estimated to cost $1 Million or more will require 15 percent of the labor hours be performed by apprentices enrolled in a state approved apprenticeship training program.

HB 1355 establishes the Opportunity Internship (pre apprenticeship) Program for high school students. The program, that includes a definition of pre-apprenticeship, will provide incentives for local organizations to build educational and employment pipelines for low income high school students for high demand occupations in targeted industries.

HB 1328 allows public technical colleges to offer degrees that prepare students to transfer to certain bachelor of applied science degree programs. The bill will allow BA degree options for qualified JATC programs, very similar to the AA degree option those JATCs utilize currently.

HB 1555 (Underground Economy Task Force) the omnibus bill addresses several elements of the underground economy regarding contractor registration, workers’ compensation education and outreach, liens on public works retainage and unemployment record keeping

SB 5613 allows the Director of L&I to issue a stop work order if an investigation finds that a contractor has failed to pay industrial insurance and does not qualify as a self insurer.

SB 5904 addresses the misclassification of workers as independent contractors employed across Washington’s construction industry in an attempt to avoid payment of prevailing wages and UI taxes.

SB 5768 provides the final design for a deep bore tunnel replacement of the Alaska Way Viaduct representing more than four billion dollars of transportation development.

HB 1978 allocates $341 million of federal stimulus dollars to WSDOT for a number of improvement, preservation, and traffic operations projects.

HB 2211 authorizes the administration and collection of tolls on the SR 520 corridor.

HB 1113 allots $133 Million in state general obligation bonds to the School Construction Assistance Grant Program.

HB 2289 expands the Energy Freedom Program to include state efforts to promote, develop and encourage renewable energy, energy efficiency, and innovative energy technology markets in Washington. Projects seeking funds from the program will be given priority if they employ apprentices from state approved apprenticeship programs.

SB 5649 creates an energy efficiency assistance program within the extension energy program of Washington State University. Projects financed will pay prevailing wages and require use of apprentices.

HB 2214 enables the funding mechanism for a large consolidated rental car facility at SeaTac, retaining the 500 jobs anticipated for construction.

HB 1481 directs the Puget Sound Regional Council (PSRC) to seek federal or private funding for the planning of an electric vehicle infrastructure that would generate jobs.

SB 5903 clarifies what constitutes residential, as opposed to commercial, construction for public works contracts.

HB 2227 establishes the Evergreen Jobs Act to create a skilled green jobs work force through targeted use of existing education and training funds and anticipated federal appropriations.

HB 1532 creates construction jobs by allowing water-sewer districts to develop and operate systems of water reclamation for furnishing the district with reclaimed water.

HB 1055 requires workers to have licenses, certificates, or permits in their possession when performing electrical, plumbing, or conveyance work.

SB 5492 allows binding arbitration for commercial nuclear power plant employees.

Many bills were opposed during the session, below are a few examples.

HB 1896 would have allowed importation of labor under an "essential worker program"

HB 2269 would reform the unemployment insurance system dramatically to serve business interests and disqualify workers from receiving assistance.

SB 5021 would undermine certification and other safety requirements on construction of renewable energy projects.

Ongoing efforts

Bills dropped last session to be continued next year.

HB 1992 was introduced to clarify that prevailing wage requirements should be applied to projects that involve tax incentives, state-supported low interest loans, or where public land or property is sold or leased for less than market value. In these instances, public dollars are being indirectly used to support or finance construction and should therefore pay prevailing wages to support local workers and contractors.

EHB 1836 dealt with off-site prefabrication for public works projects. On public works projects over $1 Million all contracts for the production of off-site, prefabricated, nonstandard, project-specific items entered into by the contractor or any subcontractor with an out-of-state contractor would require the out-of-state contractor to submit a certified list of any off-site, prefabricated, project-specific items produced under the contract outside the state.

HB 1837 required listing subcontractors on public works projects as a means to reduce bid shopping. A prime contractor could not substitute a listed subcontractor except under certain conditions. In order to facilitate prosecution of contractors guilty of bid shopping the phrase “in furtherance of bid shopping” was removed from law since legal proceedings charging contractors for bid shopping were finding it nearly impossible to prove the contractor’s intent. The House bill made it to Senate Rules where time ran out before cut off.

2009 Legislative Review

Jul 14, 2009

Washington State Building Trades Council

Legislative Review 2009

At the conclusion of the first regular 105 day Legislative Session April 26, 2009, the number of Washington’s unemployed workers continues to climb to heights not experienced since the early 1980’s and the state budget faces an $8+ Billion shortfall, both placing tremendous pressure on the 2009 Legislature to provide basic services, attract federal stimulus infrastructure dollars and maintain an adequate emergency reserve without raising taxes on hard pressed citizens less able to support a tax increase. The 2009 Legislative Session accomplished successes for Building Trades Members with unemployment insurance stimulus dollars for 2009, furthered apprenticeship utilization requirements for higher education projects, advanced our cause against Washington’s underground economy in construction, and positioned Washington to be able to increase state and federal investments and development of the green economy that will create construction jobs and new educational opportunities across our state and region. Jobs and a more promising economy are on the horizon as the state prepares to replace the Alaska Way Viaduct with a $4.2 Billion deep bore tunnel project, $341 Million in federal stimulus dollars are allocated for state transportation projects, $133 Million to stimulate school construction and retrofits and a funding structure through tolling authority established to repair the SR 520 floating bridge designed to include mass transit capacity as well.

UNEMPLOYMENT INSURANCE & WORKERS’ COMP LEGISLATION

EHB 1906 (PASSED) was Governor Gregoire’s request legislation she asked Labor and Business to lobby the Legislature to enable her to sign into law temporary assistance for unemployed citizens and provide “pass through” economic stimulus. Labor representatives on the hill did respond to help secure swift passage of the temporary additional $45 to UI recipients for all benefit claims. The bill has an effective date of May 3, 2009 through January 3, 2010. The minimum weekly benefit for this same period will be raised to $155. EHB 1906 broadened the eligibility requirements for the training benefits program for claims filed beginning September 7, 2009 and established reporting requirements for receipt of these benefits. These increases in UI benefits will not be charged to a business’s experience rating. Unemployed workers will receive the temporary extra benefit without negatively impacting employers. EHB 1906 passed the House with 93 yeas, 2 nays, 0 absent and 2 excused. The bill passed the Senate 43-4-0-2.

SSB 5963 (PASSED) Even though Business is not charged, and will be recipients of the temporary stimulus UI dollars spent locally by unemployed workers, only Labor responded to the Governor’s request to get the bill swiftly to her desk for enactment. For our good deed, EHB 1906, a temporary weekly stimulus lasting seven months was tagged as “Labor’s” UI bill. This played into the Business Lobby’s ploy to incorrectly promote SSB 5963, the permanent UI “fix” for conformity, as the Business UI bill. Claiming the conformity bill as their own, Business used this argument to lobby the Legislature and ultimately to convince the Senate not to concur with the House to stave off two original UI requests Building Trades and the Labor Lobby raised to be included in the permanent UI conformity “fix” bill which were: return the multiplier to 4.0 that was maintained fairly for 35 years prior to the 2005 negotiations; and to allow the ESD Commissioner’s discretion on voluntary quits. As the last bill addressed by the Legislature prior to the 12:30 AM Sine Die, the Senate refused to concur with these two valuable House amendments. SSB 5963 was the last bill passed; Labor was crucial in their lobby to save the language in the bill that allows Washington’s unemployed who have exhausted all UI benefits to receive a federal extension. At the end of session the House receded their position, thereby killing the two critical labor amendments.

SHB 1402 (PASSED) limits ex parte contact with medical providers after appeals have been filed under industrial insurance. Restrictions are placed on employers (and their representatives) and L&I with injured workers’ attending and treating medical providers, and on contact by workers with IME providers after receipt of a notice of appeal. Without written authorization, communication must be either in writing, sent simultaneously to all parties with a distinct notice to the provider that any response must be in writing; in person, by telephone, or by video conference with the worker given the opportunity to participate; or by deposition. Detailed information on the effects of SHB 1402 will be available in a workers’ compensation workshop at the next WSBCTC convention. SHB 1402 passed the House with 56 yeas, 41 nays, 0 absent and 1 excused. The bill passed the Senate 29-18-0-2.

APPRENTICESHIP UTILIZATION AND EDUCATION

SSB 5873 (PASSED) provides an increase in apprenticeship opportunities with the addition of new AU requirements to public works contracts on 4-year institutions of higher education. Parallel to the original phase in for public projects administered through General Administration, SSB 5873 will require contracts advertised for bid on or after:

January 1, 2010 estimated to cost $3 Million or more no less than 10% of the labor hours be performed by apprentices enrolled in a state approved apprenticeship training program;
January 1, 2011, estimated to cost $2 Million or more no less than 12% of the labor hours be performed by apprentices enrolled in a state approved apprenticeship training program; and
January 1, 2012, estimated to cost $1 Million or more no less than 15% of the labor hours be performed by apprentices enrolled in a state approved apprenticeship training program.

SSB 5873 increases L&I’s authority to hold contractors accountable for compliance. A contractor determined out of compliance by the WSATC, within a year of the bid, working apprentices out of ratio, without appropriate supervision, or outside their approved work processes could be found ineligible to bid on any project that requires apprenticeship utilization including GA, WSDOT, OSPI and now Higher Education public works projects. A contractor could be barred from bidding on these public works contracts if the contractor is found to have committed two of the aforementioned violations within the past five years. SSB 5873 passed the Senate with 28 yeas, 18 nays, 2 absent, and 1 excused. The bill passed the House 63-34-0-1.

2SHB 1355 (PASSED) establishes the opportunity internship (pre apprenticeship) program for high school students. The Opportunity Internship Program, that includes the definition of pre-apprenticeship, will provide incentives for local organizations to build educational and employment pipelines for low income high school students for high demand occupations in targeted industries. The opportunity internship program offers outreach, internships, pre-apprenticeships, counseling and up to one year of financial aid through the State Need Grant, and the promise of a job interview if the student completes a postsecondary program of study. The program also provides a $2,000 incentive payment to an organization for each Program graduate who completes a postsecondary program of study and obtains and retains employment in a high demand occupation for at least six months. This law will assist JATCs that participate in out reach to schools, running start to the trades, skills centers and individual students with whom their connection to an apprenticeship program may be structured through pre apprenticeship while in high school. 2SHB 1355 passed the House with 65 yeas, 32 nays, 0 absent and 0 excused. The bill passed the Senate 29-18-0-2.

SHB 1328 (PASSED) allows public technical colleges to offer degrees that prepare students to transfer to certain bachelor of applied science degree programs. Passage of SHB 1328 will allow BA degree options for qualified JATC programs, very similar to the AA degree option those JATCs utilize currently. Community colleges offer both technical degrees and academic degrees designed to transfer to baccalaureate institutions. Technical colleges are now able to offer transfer degrees that prepare apprentices and students for professional bachelor's degrees in fields such as construction management. SHB 1328 passed the House and Senate unopposed with five members excused during the Senate vote.

2SSB 5676 (PASSED) removes the limitation that a middle school offering Career and Technical Education receives an enhanced funding allocation only within funds appropriated for the purpose. The CTE program must be in science, technology, engineering, or mathematics (STEM) to qualify for the enhancement. Affiliates who will be working with school districts to promote a pre apprenticeship program should understand this change and approach your local STEMS math and science teachers to incorporate talented pre apprentices and to utilize segments of the Construction Math Tool Kit. 2SSB 5676 passed the Senate with 34 yeas, 14 nays, 0 absent and 1 excused. The bill passed the

House 69-29-0-0.

ADDRESSING UNFAIR BUSINESS PRACTICES IN THE UNDERGROUND ECONOMY IN CONSTRUCTION

Three bills passed recommended by the Underground Economy Task Force to improve state agency enforcement authority when confronting unlawful practices by construction contractors.

SHB 1555 (PASSED) The omnibus bill addresses several elements of the underground economy regarding contractor registration, workers’ compensation education and outreach, liens on public works retainage and unemployment record keeping by establishing that:

A contractor must have a list of all direct subcontractors and a copy of their certificate of registration available for inspection by L&I;
A penalty is created for employers who fail to keep and preserve unemployment insurance records. The penalty may not exceed $250 or 200 percent of the quarterly tax for each offense, whichever is greater;
A city, town, or county may verify that the person is registered and may report violations to L&I before issuing a business license required for registration as a contractor;

L&I will conduct education and outreach to employers o workers’ compensation requirements and premium responsibilities, including independent contractor issues. L&I must work with new employers on an individual basis, and establish mass education campaigns.

The Underground Economy in the Construction Industry Task Force is extended until December 15, 2009. The scope and composition of the Task Force will be expanded to include all underground economy business activities, no longer exclusively focusing on the construction industry. The new Task Force must report to the Legislature by December 1, 2009. SHB 1555 passed the House with 95 yeas, 1 nay, 0 absent and 2 excused. The bill passed the Senate 31-16-0-2.

SSB 5613 (PASSED) allows the Director of L&I to issue a stop work order if an investigation finds that a contractor has failed to pay industrial insurance and does not qualify as a self insurer. If a stop work order is issued, L&I representatives will visit the site to post notice in a conspicuous location, and work must halt. In addition to serving a jobsite order, the Director may also issue a stop work order on an employer, in which case the order is effective on all employer worksites that are out of compliance.

Contractors that violate a stop work order will be fined $1,000 for each day out of compliance. A stop work order remains in effect until the Director:

Releases the order upon finding the employer has come into compliance and paid any premiums, penalties and interest owing under industrial insurance, or

Issues an order of conditional release. Provisions are available for reconsideration of a stop work order and penalties are effective against any successor corporation or business entity that has one or more of the same principals or officers as the employer under the stop work order, and which are engaged in the same or equivalent trade or activity.

The new law also provides a means to pursue contractors that change their company name and UBI number attempting to dodge liability. Stop work orders and penalties are effective against any successor corporation or business entity that has one or more of the same principals or officers as the employer under the stop work order, and which engaged in the same or equivalent trade or activity. SSB 5613 passed the Senate with 31 yeas, 17 nays, 0 absent and 1 excused. The bill passed the House 60-38-0-0.

SSB 5904 (PASSED) addresses the misclassification of workers as independent contractors employed across Washington’s construction industry in an attempt to avoid payment of prevailing wages and UI taxes. A seven part test is established that clarifies whether a worker can be deemed an independent contractor for the purposes of paying prevailing wage. The seven part test is:

The individual has been and is free from control or direction over the performance of services;
The service is outside the usual course of business for the contractor for whom the individual performs services;
The individual is customarily engages in an independently established trade;
The individual is responsible for filing paperwork with the Internal Revenue Service;
The individual has an active and valid certificate of registration with the Department of Revenue for the business the individual is conducting;
The individual maintains separate books and records; and
The individual has a valid contractor registration or license if the nature of the work requires registration or licensure.

If ALL of the above conditions are true for a worker, then the employer is not required to pay that employee prevailing wages. SSB 5904 passed the Senate with 27 yeas, 15 nays, 0 absent and 7 excused. The bill passed the House 63-34-0-1.

TRANSPORTATION INVESTMENTS

SB 5768 (PASSED) closed debate over the design for the Alaska Way Viaduct replacement project. The existing elevated viaduct running from the Seattle sports stadiums to Aurora Avenue will be replaced with a deep bore tunnel. This $4+ Billion project will provide thousands of Building Trades jobs, pay prevailing wages and a safe, viable community for Seattle’s waterfront. ESSB 5768 passed the Senate with 39 yeas, 9 nays, 0 absent and 1 excused. The bill passed the House 53-43-0-2.

ESHB 1978 (PASSED) Washington had the first state legislation in the nation signed by its Governor granting authority for the allocation of federal stimulus dollars. $341 Million has been allotted to WSDOT for a number of improvement, preservation, and traffic operations projects. Half of the money must be appropriated within 120 days after receiving the funds and the remaining funds must be obligated within one year. Priority projects for these stimulus dollars include Nickel or TPA projects that have otherwise been scheduled or delayed due to funding or other constraints. WSDOT receives federal authority to reallocate funding as necessary to facilitate completion of projects on the list with the highest priority, or to maintain maximum eligibility for federal funding. WSDOT is required to report to the Legislature and OFM on the status and funding of the projects on June 30, August 31, and December 1, 2009. ESHB 1978 passed the House with 67 yeas, 28 nays, 0 absent and 2 excused. The bill passed the Senate 45-4-0-0.

ESHB 2211 (PASSED) authorizes the administration and collection of tolls on the SR 520 corridor. The tolling authority is required to set a schedule of toll rates to maintain travel time, speed and reliability in the corridor and support the issuance of bonds. Dollars gained from tolls along the SR 520 corridor are to be spent on construction of the replacement floating bridge. The tolling policy may be reconsidered if there is a significant impact on nearby facilities; and federal stimulus dollars must be sought to augment state funding if possible. A workgroup consisting of the Governor and Legislators from the districts containing the SR 520 corridor is established for the purpose of developing a finance plan, in conjunction with WSDOT, based on a total cost of $4.5 Billion for all projects along the corridor. Recommendations and design options from the workgroup must be submitted to the Legislature by January 1, 2010. ESHB 2211 passed the House with 52 yeas, 43 nays, 0 absent and 3 excused. The bill passed the Senate 32-16-0-1

JOB CREATION THROUGH INFRASTRUCTURE AND ENVIRONMENTAL INVESTMENTS

HB 1113 (PASSED) The Legislature invested in school construction projects to create jobs and fuel the economy by creating safe, energy efficient school buildings. $133 Million in state general obligation bonds are allotted to the School Construction Assistance Grant Program. Similar federal stimulus dollars are anticipated to be available for all levels of the public educational system to assist states taking the initiative to manage energy retrofits. HB 1113 passed the House and Senate with the support of every Legislator, though two were absent from the Senate vote.

ESHB 2289 (PASSED) expands the Energy Freedom Program to include state efforts to promote, develop and encourage renewable energy, energy efficiency, and innovative energy technology markets in Washington. This law represents many similar bills introduced promoting alternative energy technology. When reviewing applications for energy efficiency improvements, renewable energy improvements, or innovative energy technology, applicants may be awarded grants or loans if the project or program:

Will result in increased access to energy efficiency improvements, renewable energy improvements, or innovative energy technologies;

Demonstrates technical feasibility and assists in moving a project into the marketplace for use by Washington citizens;

Does not require continued state support; or

The federal government has provided funds with a limited time frame for use.

Such legislation will pave the way for an improved energy infrastructure that will create construction jobs and help the economy recover with a focus on renewable energy and green economy considerations. ESHB 2289 passed the House with 92 yeas, 4 nays, 0 absent and 2 excused. The bill passed the Senate 45-0-1-3

E2SSB 5649 (PASSED) creates an energy efficiency assistance program within the extension energy program of Washington State University. Projects financed will pay prevailing wages and require use of apprentices and the hire of individuals from the community where the program is located as well as provide employment opportunities for veterans and members of the National Guard. E2SSB 5649 addresses disbursement of funds from the low-income weatherization assistance account, federal funding for weatherization projects, weatherizing homes occupied by low-income earners, training programs for energy efficiency jobs, farm energy assessments, and unemployed workers enrolled in community and technical colleges. E2SSB 5649 passed the Senate with 30 yeas, 17 nays, 1 absent and 1 excused. The bill passed the House 63-34-0-1.

SHB 2214 (PASSED) enables the funding mechanism for a large consolidated rental car facility at SeaTac, retaining the 500 jobs anticipated for construction. The bill establishes how an airport can earn money from a car rental facility financed by the airport. SHB 2214 passed the House with 94 yeas, 1 nay, 0 absent and 2 excused. The bill passed the Senate 48-0-0-1.

2SHB 1481 (PASSED) directs the Puget Sound Regional Council (PSRC) to seek federal or private funding for the planning of an electric vehicle infrastructure. The future installation of electrical plug in equipment to charge electric automobiles presents a growing opportunity for Building Trades Affiliates in residential and commercial structures across the state. In addition to the study 2SHB 1481 establishes that, by December 31, 2015, the state must, to the extent practicable:

Install charging outlets in each of the state's fleet parking and maintenance facilities;
Install charging outlets in all state-operated highway rest stops; and
Install or lease space for installation of a battery exchange and charging station in appropriate state-operated highway rest stops.

2SHB 1481 passed the House with 65 yeas, 29 nays, 0 absent and 4 excused. The bill passed the Senate 35-14-0-0.

SB 5903 (PASSED) clarifies what constitutes residential, as opposed to commercial, construction for public works contracts. The definition of "residential construction" is construction, alteration, repair, improvement, or maintenance of single family dwellings, duplexes, apartments, condominiums, and other residential structures not to exceed four stories in height, including basement, when used solely as permanent residences. The term "residential construction" does not include the utilities construction (water and sewer lines), or work on streets or other structures. If the hourly minimum rate of wage stated in the contract specifies residential construction rates and is later determined to be commercial, the awarding agency must pay the difference between the residential rate stated and the true commercial rate. The difference must be paid by the awarding agency to the contractor, subcontractor, or other person doing or contracting to do the work. SB 5903 passed the Senate with 46 yeas, 0 nays, 0 absent and 3 excused. The bill passed the House 97-0-0-1.

E2SHB 2227 (PASSED) establishes the Evergreen Jobs Act to create a skilled green jobs work force through targeted use of existing education and training funds and anticipated federal appropriations. E2SHB 2227 was passed in part from the work completed this past interim defined by HB 2815 from the previous session. Building Trades representatives have and will continue to be represented as a major force in the preparation for education and construction of every aspect of green economy construction. Federal and state policies include significant new investments in green industry research and development, green energy production incentives, green energy installation and energy efficiency retrofits.

The Washington Evergreen Jobs Initiative is established to:

Create 15,000 new green economy jobs by 2020;
Target 30 percent of these jobs to veterans, National Guard members, and low-income and disadvantaged populations;
Coordinate state agencies to secure and deploy federal funds in a focused, effective way;
Prepare the workforce to take full advantage of green economy job opportunities;
Attract private sector investment for job creation and expansion;
Make the state a net exporter of green industry products and services;
Empower green job recruitment and training by local workforce development councils (WDCs) and associate development organizations (ADOs); and
Capitalize upon existing partnership agreements.

The Workforce Training Board and the Department of Community, Trade and Economic Development will develop plans that direct existing and new workforce training program funding streams to ADOs and WDCs in a coordinated and efficient manner; lead to a credential, certificate or degree in green economy jobs; and, increase capacity for ADOs and WDCs to respond to future priority projects and green job recruitment opportunities. CTED and the Workforce Training Board will work with the Washington State Board of Community and Technical Colleges, the Employment Security Department, Labor and Business to develop a process and criteria for soliciting and evaluating Evergreen Jobs Act Priority Projects. Projects paying prevailing wage and operating with 15 percent apprenticeship utilization will receive priority status when funding is allocated. The Green Industries Jobs Training Account from HB 2815 from last year is renamed the Evergreen Jobs Account. Funds deposited in the Account may include public or private gifts, grants, or endowments. The allowable uses of grant funds distributed on a competitive basis by the State Board for Community and Technical Colleges from the Account are expanded to include coordination of outreach by higher education institutions and WDCs. The Apprenticeship Council must evaluate existing training programs that could lead to jobs performing energy audits and efficiency services, and may prioritize green economy programs, including in forestry. The SBCTC and the WTB are authorized to prioritize workforce training programs that lead to a credential, certificate or degree in green economy jobs. E2SHB 2227 passed the House with 76 yeas, 22 nays, 0 absent and 0 excused. The bill passed the Senate 34-14-0-1.

SHB 1532 (PASSED) creates construction jobs by allowing water-sewer districts to develop and operate systems of water reclamation for furnishing the district with reclaimed water. This authority includes the power to fix rates and charges for all water reclamation services. SHB 1532 passed the House with 92 yeas, 0 nays, 0 absent and 5 excused. The bill passed the Senate 36-9-0-4.

HB 2283 (DID NOT PASS/Work in Progress) would provide tax incentives for eligible data centers located in rural counties and includes prevailing wage and apprenticeship utilization requirements. This legislation suffered due to the state budget crisis, but will remain a priority throughout the 2010 legislative session.

SB 5330 (DID NOT PASS/Work in Progress) represented a step forward as the state addresses the logistics and financing for the Columbia River Crossing project. The bridge project remains in the early planning stages, but has been identified as critical to the transportation infrastructure of Washington and will continue to be pursued over the next few years. Current plans indicate that the bridge will consist of twelve lanes, including public transportation lanes, promising to be a massive project that will generate many construction jobs in the south of the state.

SHB 2334 (DID NOT PASS/Work in Progress) would authorize the State Finance Committee to issue $3 billion in general obligation bonds for the purpose of creating jobs by constructing capital improvements for the safety, health, and energy efficiency of public facilities. The legislation would not displace funding in state capital and operating budgets, but would use funds made available through a referendum to the people. The $3 billion dollar investment would also make available billions of federal dollars matching investment in energy efficiency. The bill will be pursued in 2010.

TRADE-SPECIFIC LEGISLATION

SHB 1055 (PASSED) requires workers to have licenses, certificates, or permits in their possession when performingelectrical, plumbing, or conveyance work. L&I personnel visiting a job site may request to see certification from a worker enabling better detection and enforcement for certification rules. SHB 1055 passed the House with 95 yeas, 0 nays, 0 absent and 2 excused. The bill passed the Senate 33-15-0-1.

SB 5492 (PASSED) allows binding arbitration for commercial nuclear power plant employees. The interest arbitration provisions of the Public Employees' Collective Bargaining Act now apply to operating and maintenance employees working at a commercial nuclear power plant by a joint operating agency. SB 5492 passed the Senate with 33 yeas, 15 nays, 0 absent and 1 excused. The bill passed the House 64-34-0-0.

CAPITAL PROJECTS ADVISORY REVIEW BOARD LEGISLATION

The following two bills were a result of considerable effort by Building Trades representatives working through the Capital Projects Advisory Review Board process of review. Board members were unable to come to a consensus on the bills after extensive debate and, therefore not endorsed by CPARB. Instead CPARB subcommittees continued to work the issues into session in an attempt to reach agreement. Time constraints of session and lobby efforts against the proposals confused the issue and ultimately, after work to advance the bills, Labor’s proposals were put down for this session.

EHB 1836 (DID NOT PASS) dealt with off-site prefabrication for public works projects. On public works projects over $1 Million all contracts for the production of off-site, prefabricated, nonstandard, project-specific items entered into by the contractor or any subcontractor with an out-of-state contractor would contain require the out-of-state contractor to submit a certified list of any off-site, prefabricated, project-specific items produced under the contract outside the state. The list would be submitted to the awarding agency and to L&I within ten days of delivery of the item and would include a general description of the time; the name and address of the contractor, subcontractor, or employer; and the name, address, and federal employer identification number of the contractor, subcontractor, or employer that produced the item. Penalties were established allowing one reporting failure without punishment. The bill made it from the House, but in the final Senate floor action the legislation failed by one vote.

HB 1837 (DID NOT PASS) required listing subcontractors on public works projects as a means to reduce bid shopping. A prime contractor could not substitute a listed subcontractor except under certain conditions. In order to facilitate prosecution of contractors guilty of bid shopping the phrase “in furtherance of bid shopping” was removed from law since legal proceedings charging contractors for bid shopping were finding it nearly impossible to prove the contractor’s intent. The House bill made it to Senate Rules where time ran out before cut off.

ONGOING EFFORTS TO CLARIFY PREVAILING WAGE APPLICATIONS

HB 1992 (DID NOT PASS) was introduced to clarify that prevailing wage requirements should be applied to projects that involve tax incentives, state-supported low interest loans, or where public land or property is sold or leased for less than market value. In these instances, public dollars are being indirectly used to support or finance construction and should therefore pay prevailing wages to support local workers and contractors. HB 1992 did not pass, but will remain a priority as we enter the 2010 legislative session.

Bills Opposed

Offense and defense is required when lobbying either Capitol. The issues listed above are the result of diligence and an aim to create good legislation; either that which we drove or participated in to shape laws that promote opportunity for our Affiliates. The second form of success, and often times most valuable, is developing defensive strategies for legislation promoted by others that is detrimental to Building Trades Members. Below are a few examples of particularly toxic bills that Building Trades lobbyists fought to put down or neutralize. Remember, any bill introduced this session is eligible for consideration next year, along with the onslaught of newly introduced legislation.

None of the following bills passed during the 2009 Legislative Session.

HB 1896 would require the Employment Security Dept. to petition the U.S. Congress for creation of an essential worker visa classification, and to implement an essential worker pilot program. HB 1896 defines an "essential worker" as an alien who is issued a nonimmigrant visa and admitted to the United States to perform seasonal, peak need, or project-related labor for one or more employers.

SSB 5760 the Boards of Regents for the UW and WSU would be granted specific authority for public works projects whenever the revenue source for the projects does not include state appropriated funds. The authority granted allows the universities to award public works projects using a small works roster process for projects with an estimated cost of up to $1 Million, and using the DBB, DB, or GC-CM construction methods for projects with an estimated cost in excess of $1 Million.

HB 2144/SB 5466 seek to circumvent the Brinks decision by redefining the word employ for the calculation of minimum wage. "Employ" and "work" would not mean or include 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, when the use of that vehicle for travel is within the normal commuting area for the employer's business or establishment and the use of the employer's vehicle is subject to an agreement on the part of the employer and the employee or representative of the employee.

HB 2176/SB 5463 would limit the liability of employers for failing to pay minimum wages or overtime compensation when the employer acted in “good faith” and in conformity with a rule, policy, or practice of the Department of Labor and Industries.

HB 2236 would establish new, lower calculation parameters for employers’ payment into the unemployment insurance trust fund.

HB 2269 would reform the unemployment insurance system dramatically to serve business interests and disqualify workers from receiving assistance.

SB 5021 would undermine certification and other safety requirements on construction of renewable energy projects.

SB 5243 declares that rules adopted by state agencies are problematic for Washington’s citizens and would seek to undermine rule making authorities beginning with L&I, restricting rule making activity until July 1, 2011.

SB 5462 would reform the workers’ compensation system fundamentally to reduce payments to injured workers.

SB 5465 would direct L&I to develop and maintain a registry system to record workers compensation final settlement agreements in the interest of developing a compromise and release system for Washington.

SB 5844 would increase bid limits for a variety of public entities.

SB 5635 would require WSDOT to initiate a pilot project for evaluation of electronic traffic flagging devices potentially costing flaggers their jobs.

HB 1386/SB 5464 expenditures from the industrial insurance accident and medical aid funds would be made only for purposes related to the payment of benefits or the administration of industrial insurance programs.

HB 1652 would eliminate the requirement that certain ferry vessels be constructed within the boundaries of Washington.

2008 Legislative Review

May 01, 2009

2008 Building Trades Priority Bills as Passed the Legislature

ESHB 3122: Underground Economy, Employer/Worker Definition: The Underground Economy Task Force recommended that different definitions of covered worker and employment exceptions used by the agencies be blended into one consistent definition in the 2008 Legislative Session to provide a consistent test for Labor and Industries and the Employment Security Department to differentiate workers, employers and independent contractors. ESHB 3122 creates a test for determining whether a construction worker is a covered worker or uncovered independent contractor for purposes of unemployment and industrial insurance laws. This bill is a substantial move forward towards collecting lost revenues due the state, and providing the construction industry and the public a clear definition of a worker. ESHB 3122 passed from the House with 92 yeas, 2 nays, 0 absent and 4 excused. The bill passed the Senate 33 yeas, 16 nays, 0 absent and 0 excused.

2SSB 6732: Underground Economy, Education, Outreach and Compliance: At its final meeting in 2007, the Task Force developed a list of recommendations for Legislative and Budgetary action during the 2008 Legislative Session. 2SSB 6732 is the result of those recommendations and will accomplish the following:

Applicants for registration as a contractor must submit a unified business identifier (UBI) number. L&I must deny an application for registration as a contractor and suspend an active registration if the applicant has falsified information on the application or the applicant does not have an active and valid certificate of registration with the Department of Revenue (DOR). Additionally, a person who submits false information on an application for registration is subject to a penalty of up to ten thousand dollars.
A contractor is prohibited from bidding on public works projects for one year if, within a five year period, he or she commits two violations of any of the following: willfully violates contractor registration laws; knowingly misrepresents the amount of his or her payroll or employee hours to L&I; engages in business without a certificate of coverage under the industrial insurance provisions; or commits a second violation of the contractor registration laws.
Employers must keep records of the compensation paid to contractors and electricians with whom they contract. Government agencies may disclose records between themselves if the agencies would be otherwise permitted to obtain that information.
L&I must add staff to the Fraud Audit Infraction and Revenue contractor fraud team and both L&I and Employment Security Department must hire additional auditors. If funds are available, funding must be dedicated to the Office of the Attorney General for contractor compliance cases.
An expanded social marketing campaign must be created to warn consumers of the risks and potential consequences of hiring unregistered contractors.
A pilot project must be established between L&I and local jurisdictions to explore ways to improve the collection and sharing of building permit information.
The term of the Task Force is extended to December 31, 2008.

2SSB 6732 passed the House 94 yeas, 2 nays, 0 absent, 2 excused. The Senate passed 47 yeas, 0 nays, 1 absent and 1 excused.

SSB 6751: Unemployment Insurance for Commissioner-Approved Apprenticeship Programs: Prior to 2003, apprentices were eligible for UI benefits as they entered state-approved apprenticeship programs and met the requirements of Commissioner Approved Training (CAT). Unintended consequences of UI changes in 2003 created roadblocks for apprentices to transition into these programs. Under Washington's unemployment compensation law a person is eligible to receive unemployment benefits if the circumstances of their departure fall under one of several “good cause” categories. SSB 6751 establishes an additional "good cause", covering individuals who left work to enter an apprenticeship program approved by the Washington State Apprenticeship Training Council. The bill passed from the House amended 62 yeas, 32 nays, 0 absent and 4 excused. The concurrence vote from the Senate was 32 yeas, 16 nays, 0 absent and 1 excused.

E2SHB 3139: Benefits on Appeal: One of the priorities of the Building Trades this session was benefits on appeal. E2SHB 3139 insures fairness and just treatment for injured workers navigating the workers compensation system by allowing workers who have lost their ability to earn wages and to provide for their families due to worksite injuries by providing benefits while decisions about their claim are on appeal whether their employer is self-insured or contributes to the state fund at L&I.

E2SHB 3139 provides that an order awarding industrial insurance benefits becomes due on the date issued unless the Board of Industrial Insurance Appeals orders a stay.
Provides that a motion for a stay must be filed within 15 days of an order granting an appeal. The Board must conduct an expedited review of the claim file as it existed on the date of the Department order. Within 25 days of the filing of the motion or the order granting appeal, whichever is later, the Board must issue a decision. The Board must grant a motion to stay if the person seeking the stay demonstrates that it is more likely than not to prevail on the facts as they existed at the time of the order. The Board must not consider the likelihood of recoupment of benefits as a basis to grant or deny a stay.
Creates a worker-funded account that will reimburse employer and state fund overpayment costs.
Requires the Department of Labor and Industries to establish procedures for self-insured employers to recoup overpayments from state fund claims.
And requires the Department of Labor and Industries to study workers' compensation appeals and the impacts of the legislation.

E2SHB 3139 passed the Senate 35 yeas, 14 nays, 0 absent and 0excused. The bill passed the House 62 yeas, 35 nays, 0 absent, and 1 excused.

ESB 5831: HVAC/R: After considerable effort put forward in the 2007 session and prior the certification of heating, ventilation and refrigerator mechanics appeared to be favorably placed for passage this session; however, over the course of the session, despite the countless meetings already held between Labor and business, business continued to vehemently resist elements of the legislation that Labor required. Ultimately the bill was reduced to task force status, but it is the intention of the Building Trades and the many lobbyists involved in the HVAC/R process to continue negotiations, participate in the task force and maintain involvement until certification is realized. ESB 5831 was modified to include the task force while in the Senate so the following votes were cast on the task force version of the bill: In the House 95 yeas, 2 nays, 0 absent, and 1 excused; and in the Senate 40 yeas, 9 nays, 0 absent, and 0 excused.

SB 6694/EHB 3381: Prevailing Wage Compliance: The Department of Labor and Industries is responsible for establishing prevailing wage rates and ensuring that employers on public works projects pay prevailing wage. SB 6694 amends RCW 39.12.070 to increase the filing fee for prevailing wage intents and affidavits from $25 to $40 to, among other administrative needs, provide for 2 additional FTEs for compliance and outreach, and fund outreach, education, training and marketing expenses. SB 6694 was dropped by the house and the increased fee provisions were attached to EHB 3381. EHB 3381 passed from the House with 55 yeas, 39 nays, 0 absent and 4 excused.

SHB 2639: Allows Public Utility Districts to Enter into Limited Liability Corporations: The issue of PUDs entering into LLCs first came to our attention during the White Creek wind project. The project had initially been planned to include prevailing wage language; however, during the planning process the PUD decided to enter into a LLC at which point they circumvented the use of prevailing wage rates. The Building Trades worked with PUD representatives during the session and supported SHB 2639 when prevailing wage language was included in the bill. The Senate passed the bill 46 yeas, 2 nays, 0 absent and 1 excused. Upon concurrence the bill passed the House 93 yeas, 0 nays, 0 absent and 5 excused.

SHB 2893: Adds a Labor Representative Position to the Forest Practices Board: The Forest Practices Board of Washington was created in order to integrate the laws, rules, and programs governing forest practices and hydraulic projects. The Governor will appoint a representative of the timber products union to the Forest Practices Board from a list of three names submitted by a timber labor coalition affiliated with a statewide labor organization representing a majority of the timber products unions in Washington. Labor has sought representation on the Forest Practices Board since its inception 34 years ago and shall now have an opportunity to assist in decisions related to the future of related hydraulic projects and the forest industry. SHB 2893 passed the House 90 yeas, 4 nays, 0 absent and 4 excused. The bill passed the Senate 48 yeas, 1 nay, 0 absent and 0 excused.

2SSB 6377: Regarding Secondary Career and Technical Education: The Building Trades have forged renewed partnerships to support apprenticeship in the Trades with the career and technical education community through Governor Gregoire’s efforts in Washington Learns and Running Start to the Trades to work closely with the Office of the Superintendent of Public Instruction, the State Board of Education, the State community College Board and within our role as members of the Washington State Apprenticeship & Training Council at Labor and Industries. Highlights of the bill:

Requires all approved preparatory career and technical education (CTE) programs to lead to industry certification or allow students to earn dual high school and college credit.
Directs development of model CTE Programs of Study, patterned after requirements in the new federal Carl Perkins Act.
Requires identification of and provides grants to high demand programs that prepare students for apprenticeships or degrees with substantial employment opportunities.
Allows skill centers to enter agreements to offer diplomas and to offer CTE courses to students who have graduated but need to complete industry certification.
Directs the Office of the Superintendent of Public Instruction (OSPI) to conduct an ongoing campaign to increase awareness about rigorous CTE programs.
Directs the OSPI to support school districts in adopting CTE and academic course equivalencies, including providing grants to increase the academic rigor of CTE courses.
Creates a pilot grant to integrate instruction in CTE, academic, and English language and an In-Demand Scholars Program to attract students to careers that require one to three years of postsecondary education or apprenticeship.
Adds CTE to the list of priority endorsements for Future Teachers' Scholarships.

2SSB 6377 passed the House 93 yeas, 0 nays, 0 absent and 5 excused. Following an amendment made in the House 2SSB 6377 the Senate concurred 48 yeas, 0 nays, 0 absent, and 1 excused.

SB 6938/ HB 3337: Clarification Applying Prevailing Wages on Construction Projects: Introducing this prevailing wage legislation was the initial step to prepare for next session. The legislation is intended to define that prevailing wage requirements include construction, alteration, repair, or improvement, other than ordinary maintenance, that involves tax incentives established by the state or any county, municipality, or political subdivision created by its laws; loans provided by said authorities; sales of public land or property to a private entity for less than fair market value by said authorities; or leases of public land or property to a private entity by said authorities. Informing elected officials and the public on the public value and investment of prevailing wage is necessary. California successfully passed legislation clarifying the application of prevailing wage during the 2000-2001 Legislative session with SB 975 and the Washington State Building & Construction Trades intends to follow suit.

For a fast paced 60 day Legislative Session this report represents a substantial legislative effort. On behalf of the Washington State Building & Construction Trades Council, AFL-CIO I would like to personally thank all of the Building Trades lobbyists, our Affiliate Members, as well as the entire Washington State Labor Council, AFL-CIO who sent emails, placed phone calls to Legislators, and traveled to Olympia to communicate as constituents to lobby these priority bills. Our success could not have been accomplished without our combined efforts to raise our collective voice.

David Johnson, Executive Secretary

Washington State Building & Construction Trades Council, AFL-CIO

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Bills and Budgets Online

Legislation:

· Go to http://www1.leg.wa.gov/legislature/

· In the left column titled: Inside the Legislature, click “Bill Information”

· The “Bill Information” page contains links to useful legislative information; to find a bill enter either the bill number or a search term such as “unemployment insurance”, a list of relevant bills should appear. Above the search box tabs allow you to specify the year to search.

Budgets:

· Go to http://leap.leg.wa.gov/leap/budget/default.asp

· Budgets can be found by committee or select “2008 Supplemental Budget Proposals” which will present the budgets by type, “Capital, Operating and Transportation” for the House, Senate and Governor. The confirmed budget is at “final enacted budgets”.

Page Last Updated: Sep 21, 2011 (10:08:00)

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