NFIB Still Opposed to Revised Independent Contractor Bill

Date: February 23, 2019

Amending the measure into a task force does nothing to alleviate the major worries

State Director Patrick Connor reports from Olympia on the legislative week ending February 22

The end of Week 6 marked the deadline for policy committees to approve bills originating in their respective legislative body. It looks like 20 of the 86 bills NFIB has been tracking so far died at Friday’s cut-off. We opposed 14 of those, so that’s good news. You might be interested to know we’ve already testified nearly two dozen times and registered our position, supporting or opposing bills, on roughly 60 other bills that received a public hearing.

Independent Contractors

House Bill 1515, which would make it tougher for independent contractors not to be classified as employees, was amended into a task force. The revised bill would have the Association of Washington Business name five business representatives to the workgroup. That’s better. But AWB’s policy is to only appoint AWB members to these types of committees.

Although a sister business association, the positions of NFIB and AWB are not always in alignment, such as with AWB’s support of the last massive gas tax increase, a minimum wage and paid sick and safe leave deal, establishing the Paid Family & Medical Leave program and payroll tax to fund it, and, most recently, a new payroll tax to fund a long-term care benefit. AWB’s penchant for making a “less bad” deal benefitting its Big Business board members typically leaves small businesses stuck with the bill. If AWB is once again picking the negotiators, you can bet independent contractors, booth renters, and other self-employed entrepreneurs will be worse off tomorrow than they are today.

The senate version of HB 1515, Senate Bill 5513, is dead. So too are the “universal worker rights” bills HB 1601 and SB 5690. 

Small Business Bill of Rights

Reps. Andrew Barkis, a former NFIB leadership council member, and Mike Chapman introduced House Bill 2093 at NFIB’s request. The bill drew an astounding 39 co-sponsors, including Barkis and Chapman. Unfortunately, leadership referred the bill to the House State Government & Tribal Relations Committee, which did not have time to schedule a public hearing before the cut-off. NFIB extends a special thank you to Reps. Steve Kirby and Brandon Vick, who, along with Barkis and Chapman, pleaded our case with leadership to assign the bill to their Consumer Protection & Business Committee. Chairman Kirby had made time on the committee’s schedule to consider the bill had it been sent to his panel.

Meanwhile, NFIB alumni Sens. Guy Palumbo, Lynda Wilson (herself a former NFIB leadership council member), and Mark Mullet deftly maneuvered the senate version, SB 5948, which has a dozen co-sponsors, into the Senate Financial Institutions, Economic Development & Trade Committee. Mullet is the committee chairman and Wilson is the panel’s ranking Republican. It was remarkable that the bill was introduced Friday, February 15, yet received a public hearing and was approved Thursday, February 21, thanks to Mullet and Wilson. But it wasn’t as smooth sailing as we had hoped. Despite two months working with them on the bill, the governor’s office sent the committee a letter raising concerns; Labor & Industries (L&I) testified about essentially those same concerns. The departments of Financial Institutions and Social & Health Services piled on in testimony. Chairman Mullet and Senator Wilson helped dodge another complaint, and a potentially fatal fiscal note, from the Department of Revenue with a pair of amendments made to the bill during executive session. NFIB will be meeting with the governor’s office and interested agencies February 25 in our continuing effort to craft language the agencies can live with – that actually does something to help inform small-business owners of their rights when subject to agency actions. Senator Wilson’s opening remarks about the bill, the agency testimony, and Sen. Doug Ericksen’s questioning of those agency officials is worth watching.

Taxes
  • NFIB supported House Bill 1738, increasing the filing B&O tax filing threshold.
  • We opposed Senate Bill 5810, providing a “working families” tax rebate.
  • NFIB will again oppose the transportation funding package that includes a carbon tax and gas tax increase when it is heard next week.
Labor
  • We opposed House Bill 1445, providing unemployment benefits to workers who quit due to child- or elder-care issues.
  • NFIB supported House Bill 1770, seeking to reduce unnecessary occupational licensing requirements.
  • We won an amendment to House Bill 1930 clarifying that employers would not have to make structural changes to create private areas for workers to pump breastmilk.
  • NFIB opposed House Bill 1965, allowing bounty-hunter lawsuits against employers for a variety of workplace complaints.
  • We won an amendment to Senate Bill 5090 that would avoid double-jeopardy penalties for employers facing complaints related to wage and salary history.
  • NFIB supported L&I’s Senate Bill 5795, creating a task force to review contractor bonding requirements or other methods of better protecting homeowners from unregistered or unscrupulous contractors.
Environment
  • NFIB opposed House Bill 1110, a low carbon fuel standard.
  • We opposed House Bill 1112 and Senate Bill 5426, eliminating hydrofluorocarbons, which are used in commercial air conditioning and refrigeration.
  • NFIB opposed Senate Bill 5293, allowing a patchwork of local energy code requirements and mandating electric vehicle charging stations at newly constructed buildings.
Health Care
  • NFIB testified about its concerns with Senate Bill 5526, the senate version of the so-called “public option” bills. In reality, the bill as introduced would change the number and types of health insurance policies available through the state Health Benefit Exchange. We explore this legislation more here. Sen. David Frockt amended his bill to address the concerns NFIB raised in testimony. We are reviewing the changes and hope to support the revised version.
  • We went on record supporting Senate Bill 5741 to change the agency oversight of the state’s All-Payer Claims Database (APCD) from the Office of Financial Management to the Health Care Authority. This should facilitate selection of a more appropriate lead organization to administer the APCD, giving policymakers and the public better information about health care cost and quality.
  • NFIB opposed Senate Bill 5805, enshrining much of the federal Affordable Care Act into state law.
  • We also opposed Senate Bill 5822, seeking to establish a “universal health care system” in the state.
  • NFIB supported Senate Bill 5887, streamlining prior authorization requirements for certain treatments that get workers back to work quickly.
Previous Reports From the State Capitol

February 18—A Public Option That Really Isn’t

February 15—Legislative Work Buried Under Snowmaggedon

February 8—NFIB Digs in for Fight Against Harmful Labor Bills

February 1—Barbers Cosmetologists Mobilize Against Bill-Win

January 25—Latest Bill Draft Still a Tangled Mess for Hairstylists

January 18—NFIB Plunges Into Thick of Legislative Action

January 11—Washington State Legislature Opens for Business

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