Killing the B&O tax hike is small businesses’ top legislative priority for 2019.
State Director Patrick Connor reports from Olympia on the legislative week ended January 18
The first week of the 66th Washington State Legislature’s 2019 session closed, with NFIB in the thick of negotiations on several legislative and regulatory proposals.
But first, NFIB’s Small Business Day at the Capital program is coming together. NFIB is pleased to announce the new House Finance chairwoman, Rep. Gael Tarleton, will be joining small-business owners to talk about tax proposals. Liz Smith, the Department of Labor & Industries’ (L&I) deputy director, and her team will brief us on several rules being developed by that department. The governor’s chief health care policy advisor, Jason McGill, will be on hand to explain the proposed “public option” exchange health plan, all-payer claims database (APCD) statutory revisions, and progress addressing the opioid crisis. Former NFIB Washington leadership council member and newly minted Rep. Kelly Chambers will give our keynote luncheon address. The majority Senate Democrats will also be sending one of their members to discuss their legislative priorities for the session. If you haven’t already done so, you can register for Small Business Day 2019 here.
NFIB testified three times and submitted written comments on another bill. NFIB is also working with agency staff on several issues.
Tax & Fiscal
- NFIB testified in support of a bill extending the state Department of Revenue’s (DOR) filing deadline for annual returns, hoping to make life a little easier for about 205,000 small-business owners who often don’t receive their 1099s by the current deadline.
- NFIB testified against the governor’s proposed new capital gains tax and B&O tax increase on services. Killing the B&O hike is our top legislative priority this year.
- NFIB also went on the record opposing the governor’s budget proposal and fish-passage improvement plan, both of which rely on new or higher taxes to fund it.
Labor
- NFIB noted its concerns in testimony that Rep. Gina Mosbrucker’s latest bill seeking to leverage the workplace to address domestic violence doesn’t give the proposed task force adequate time to learn and review any existing requirements, identify deficiencies, or develop meaningful recommendations for future legislation. NFIB is identified by name in the bill as a task force member. If enacted, the legislation most likely wouldn’t take effect until the end of July, yet a final report would be required by December 1, giving the panel a scant four months to do its work.
- NFIB participated in a stakeholder meeting to discuss L&I request legislation allowing the director to increase the bond required of certain residential contractors. We reiterated our concerns, shared with the department several times over the past many months, that the proposed task force is inadequate, and the “one strike, you’re out” approach they envision may not be the best means of identifying poor-performing contractors or protecting homeowners.
- NFIB Leadership Council Chairman Kerry Cox and Vice Chairwoman Lois Cook joined the NFIB State Director Patrick Connor in meeting with L&I staff to discuss our concerns with the department’s proposed new administrative policy about how to determine whether a worker is “Washington-based” or based in another state for minimum wage act purposes. As Kerry and Lois explained, there needs to be clear guidance for determining whether a worker is entitled to Washington’s minimum wage, overtime rules, and paid sick and safe leave, or if the laws and rules of the state in which most of the work is performed apply. The payroll and benefit costs are substantially different between Washington and Idaho, for example, and employers shouldn’t face sanctions from two states due to conflicting determinations about which state’s rules apply.
Environment
- NFIB is on record again opposing a costly Low Carbon Fuel Standard (LCFS) proposal that would drive gasoline and diesel prices ever higher.
- NFIB is also publicly opposed to legislation mandating the elimination of all fossil fuel sources from the state’s energy supply by 2030. Until hydropower is again recognized as a clean, renewable, carbon-free energy source, the only way to be completely “green” is massive additional investments in wind, solar, or experimental energy sources.
Health Care
- At the request of the governor’s office, NFIB convened the All Payer Claims Database (APCD) #transparencyWA coalition for a briefing January 18 on statutory changes needed to transition the program to oversight by another agency, along with a new lead organization to run it. NFIB led this coalition, which secured enabling legislation during the 2015 session. The goal of a fully functional APCD is to provide consumers with information about the cost and quality of medical procedures and providers so they can make better-informed purchasing decisions. Legislation is expected to be introduced next week.
- NFIB communicated its reservations about HB 1087, legislation to establish a fully worker-paid payroll tax to fund a long-term care benefit for eligible individuals. Basically, the bill would provide a lifetime benefit of $36,500 that could be used for a variety of home-care, medical assistance, and other support services primarily for the elderly. The market for long-term care insurance in Washington state appears to be in a death spiral. Some 90 or so insurers have left the market over the past several years, and more than 90 percent of Washingtonians do not have long-term care insurance. An actuarial report indicated significant cost savings to state taxpayers could result from such a program. The bill’s sponsor tasked advocates with addressing NFIB’s concerns. In addition to ongoing conversations with the advocates, NFIB met with the governor’s office and Employment Security Department (ESD) to discuss potential amendments. NFIB will meet with the bill sponsor, Rep. Laurie Jinkins, January 21 to discuss progress and next steps.
Regulatory
- NFIB’s Small Business Bill of Rights proposal has been shared with the governor’s office, DOR, ESD, and L&I for their feedback and suggested changes. NFIB members Rep. Andrew Barkis and Sen. Guy Palumbo have offered to prime sponsor companion bills; Rep. Mike Chapman and Sen. Lynda Wilson have agreed to be lead co-sponsors. The Code Reviser is drafting the bills, which should be available early next week. NFIB will continue working the governor’s office and agencies to reach agreement on a bill that affords our members better certainty and protection in their interaction with state regulators.
Previous Legislative Report
January 11—Washington State Legislature Opens for Business January 14
