In his wrap-up report on the 2014 session of the Washington Legislature, State Director Patrick Connor lists the wins, losses and near misses for small business.
With seven minutes to spare, the 2014 regular session of the Washington State Legislature limped to a close March 13. This was the first session in recent years to end on time, without the need for a special session (or three) in order for the Legislature to complete its work.
The small-business-friendly Majority Coalition Caucus of 24 Republicans and two Democrats maintained its tenuous grip on Senate control this year, despite a few leadership maneuvers and botched floor votes on amendments that strained relationships among its members during the 60-day session.
Meanwhile, the state House of Representatives and governor’s office remained firmly in Democrat hands. As a result, small business was protected from tax hikes and punitive workplace legislation that passed the House, while bills seeking to improve the state’s business climate that passed the Senate died in Labor-dominated House committees.
Consequently, bills that survived both chambers typically did so by winning strong bipartisan support. This legislative stalemate will be reflected in NFIB/Washington’s 2013-14 Voting Record, due out later this year, which will score key wins and losses on bills affecting small business.
Below is a summary of notable legislative action, and NFIB’s position on those bills, for the recently completed 2014 session.
Overview
- NFIB/Washington tracked 45 bills of interest to small business that advanced out of a committee; of those, we supported 29 (64 percent), opposed 12 (27 percent), and monitored four others that could have been problematic depending upon possible amendments (9 percent)
- All 12 bills we opposed were defeated (100-percent success rate killing bills harmful to small business)
- Six bills we designated as small business priorities have been delivered to Gov. Jay Inslee for his approval
- The state director and NFIB members appeared before legislative committees testifying more than 50 times on bills and issues affecting small business.
Victories
A handful of NFIB-supported bills intended to lessen the regulatory burden on small businesses and other taxpayers have been sent to the governor for his approval.
- House Bill 1224 would allow a few small counties that voluntarily opted into full planning under the state Growth Management Act to instead adopt limited planning requirements. These counties would still be required to designate natural resource lands, designate and protect critical areas, and use “best available science” in those efforts
- House Bill 2146 would lower the bond amount required for a small-business owner to appeal certain citations issued by the Department of Labor & Industries
- House Bill 2192 would require certain state agencies, such as the departments of Agriculture, Ecology, Fish & Wildlife, Labor & Industries, and Natural Resources, to report business permit processing timelines and post assistance materials online
- House Bills 2261 and 2262 would require the departments of Fish & Wildlife and Ecology, respectively, to categorize information the agency relied upon, such as independent peer review, open review, legal and policy documents, or other sources of information, and publish those sources on its website when taking “significant agency actions.” The bills will bring greater transparency to agency decision-making
- Senate Bill 6511 would streamline and simplify the prior authorization process used by health insurers so that small-business owners and the families they support no longer have medical treatment or medication denied or delayed due to unnecessary paperwork hurdles. This is the second time in two years that NFIB and other supporter have won unanimous approval on final passage in both chambers for prior authorization streamlining legislation. Insurance carrier stalling tactics left last year’s taskforce unable to complete its work in time.
NFIB helped defeat several bills harmful to small business this year, including:
- House Bill 1313, which would have required employers to provide paid sick and safe leave. The bill passed the House, but died in the Senate Commerce & Labor Committee
- House Bill 2334 would have redefined “independent contractor,” severely limiting the rights of self-employed sole proprietors. The bill also passed the House, but died in the Senate Commerce & Labor Committee
- House Bill 2618 would have allowed cities with populations of 20,000 or more to perform a larger portion of public works projects in-house, up to 10 percent of the city’s public works budget, rather than using the small works roster or going out to bid. These projects could be as much as $125,000 for multi-trade projects or $60,000 for single-trade jobs and street lighting or signal work. The bill passed the House, but died on the Senate floor calendar without being brought to a vote
- House Bill 2055, requested by Attorney General Bob Ferguson, would have stripped small-business owners of their ability to recover attorney fees and other court costs when successfully defending themselves against lawsuits brought by the state Attorney General’s office under the consumer protection act. However, the bill would have retained the Attorney General’s ability to recover court costs when successfully prosecuting small-business owners under the act. Under existing law, a judge may award attorney fees and court costs to the prevailing party in these cases. The bill was narrowly approved by the House Judiciary Committee, but died in the Houses Rules Committee. NFIB also opposed similar bills requested during former Attorney General Rob McKenna’s tenure.
Defeats
While no bill opposed by NFIB survived the 2014 session, a few NFIB-backed bills that passed the Senate failed to gain traction in the House of Representatives.
- Senate Bill 5540 would have directed the Insurance Commissioner to explore opportunities to allow health insurance policies to be purchased across state lines. In both 2013 and 2014, the bill passed the Senate and was approved by the House Health Care & Wellness Committee, only to be buried in a House Appropriations subcommittee
- Senate Bill 5127 would have expanded the availability of structured settlement agreements to more injured workers trapped in the state-run workers’ compensation system and corrected a board of industrial insurance appeals decision that has bottled up these agreements. The bill repeatedly passed the Senate in 2013, and again this session, only to be ignored by the union-controlled House Labor & Workforce Development Committee
- Senate Bill 5158 would have created a safe harbor in wage and hour disputes for employers relying on written advice from the Department of Labor & Industries regarding wage payment questions. This bill also passed the Senate only to be killed in the House Labor & Workforce Development Committee
- Senate Bill 6179 would have allowed small and mid-sized businesses to group self-insure for workers’ compensation purposes. The House Labor & Workforce Development Committee refused to approve this bill as well.
Finally …
One final issue of note is House Bill 2572, the governor’s health care innovation bill. NFIB supported key provisions of the legislation, specifically an all-payer claims data base and quality metrics designed to provide consumers, policymakers and researchers with tools to analyze health care costs, quality and outcomes. The Legislature eventually approved a watered-down version of the bill, including the NFIB-supported provisions. More about the bill and the impressive media effort NFIB generated about it is available here.
For more information, send an email to NFIB/Washington State Director Patrick Connor, or call him at 360-786-8675.
