Retirement Plan Bills Threaten Bureaucratic Havoc 

Date: January 26, 2024

Will Apple stop opposing right-to-repair legislation it green-lighted in California? Also, will the underground economy task force see daylight? 

State Director Patrick Connor reports from Olympia on the small business agenda for the legislative and political week ending January 26 

Legislative policy committees spent more time this week in executive sessions where they amend and approve bills before sending them on to either a fiscal committee or the chamber’s Rules Committee. Wednesday, January 31, is the deadline for policy committees to complete their work on bills referred to them. Those bills not receiving executive action by that cut-off are dead for the session. 

NFIB is tracking more than 120 bills that could impact small businesses if enacted.  

Small Business Day

NFIB will hold its annual Small Business Day at the Capitol on Tuesday, February 20, at the DoubleTree by Hilton. The hotel is located at 415 Capitol Way North, Olympia, Washington, 98501, near the Farmers Market. The registration link is now live. 

The Legislature

This week, NFIB focused on the following bills: 

  • HB 1893, SB 5777, Unemployment insurance for striking workers
    This bill would have all employers subsidize unemployment benefits for striking workers, relieving or at least heavily reducing union obligations to fund strikes from their own war chests. The Senate bill is eligible for a floor vote at any time. NFIB issued a press release and deployed an Action Alert asking members to contact their senators and urge a NO vote. The House Labor Committee amended its version of the bill to delay benefit eligibility until the second Sunday after a strike begins. The committee took executive action January 26. NFIB opposes both bills.
  • HB 2035, Work hours for 16- and 17-year-olds enrolled in training programs 
    NFIB supports this legislation directing the state Department of Labor & Industries (L&I) to update its rules to allow 16- and 17-year-olds to work the same number of hours during the school week as they can during summer or school holidays, so long as the student is enrolled in college or a career or technical training program. The bill received a public hearing but has not been scheduled for executive action.
     
  • HB 2244, SB 6069 & HB 2437, small business retirement plans
    The House Consumer Protection & Business Committee heard dueling bills January 23 that would establish new “voluntary” retirement plans for employees of small businesses. HB 2437 proposes an opt-in approach that would allow small-business employees to choose among offerings in a multiple employer (pooled) investment program, which could allow employer contributions if 401(k)-type plans are selected. HB 2244 would enroll workers in either a traditional or Roth IRA with the ability to opt-out of the program; employer contributions would not be permitted. Neither bill would repeal the state’s existing small-business retirement marketplace. Both House bills are scheduled for executive session January 30. Over in the Senate, the Ways & Means Committee heard SB 6069. It is scheduled for executive session on February 2. (Senate Ways & Means is a fiscal committee subject to a different deadline than policy committees.) NFIB has proposed amendments to companion bills HB 2244 and SB 6069. We are concerned that the passage of 2244/6069 and 2437 could result in three different retirement programs, governed by two different boards and administered by different state agencies.
     
  • HB 2266, SB 6107, Concerning sanitary conditions for construction workers who menstruate or express milk
    NFIB joined several construction industry groups opposing HB 2266 during its January 26 hearing. The bill would require employers to provide a private, secure facility for menstruating or lactating workers. Employers would also be required to provide sanitary hygiene products for menstruating workers and refrigeration for breast milk pumped on site. NFIB and others are concerned about the likelihood of complaints from workers if the wrong type or brand of personal care products are provided, as well as the difficulty of maintaining uninterrupted refrigeration – particularly in remote locations or where workers are moving from site to site during a work shift. The House bill is scheduled for executive session on either January 30 or 31; the Senate bill is slated for public hearing on January 30. NFIB opposes the bills.
     
  • HB 2430, NFIB’s Business Licensing Service penalty waiver
    Our bill received a public hearing January 26 in the House Consumer Protection & Business Committee. The bill would allow the Department of Revenue to waive penalties and charge a lower application fee for a late renewal of a business license resulting from a government closure order issued due to a natural disaster or declared emergency. The committee had a bit of fun at bill sponsor Rep. Larry Springer’s expense, asking a multitude of questions and challenging the premise of the bill since this was the first time in his nearly 20-years of service in the House that Springer has appeared before this particular committee. All testimony and sign-ins were in favor of the bill; there was no opposition. The bill is scheduled for executive action on Wednesday, January 31.
     
  • SB 6085, resurrecting the construction industry underground economy task force
    NFIB testified that establishing a legislative task force would be duplicative of efforts underway for years through L&I’s Construction Underground Economy Advisory Committee (CUEAC). That panel, composed of business and labor representatives, including NFIB’s state director and immediate past Leadership Council Chair Kerry Cox, regularly receives briefings from L&I, Employment Security, Revenue, and the Attorney General’s Office. CUEAC provides feedback on agency initiatives and has supported agency requested legislation on this topic. Appointing a new task force that includes legislators and other new members threatens to delay or derail CUEAC efforts as agency staff and resources would almost certainly be redirected to the new task force. Nonetheless, the bill has been scheduled for executive session on January 30. The sponsor indicated a change in the task force membership could be made to harmonize its efforts with CUEAC, but no amendments have so far been submitted. NFIB remains concerned about the bill.
     
  • SB 6276, Right to repair
    NFIB testified in favor of the Senate companion to HB 1933 this week. A substitute bill was heard in the Senate committee that would exclude provisions applying right-to-repair requirements to agricultural and other off-road equipment. The state Dairy Federation and other agricultural interests objected to that proposed change. Meanwhile, HB 1933 appears bogged down in the House Consumer Protection & Business Committee, but negotiations with tech groups opposed to the bill are continuing. Strangely, the bills’ primary opponent, Apple, agreed to the same language and supported the bill that passed in California. NFIB supports the legislation, preferring the original draft to the substitute. 

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