2023 Washington State Legislation of Note

LEGISLATION OF NOTE

Government Affairs Director Bob Battles has an update on these bills that directly affect employers:

Personnel records: House Bill 1320 has died after failing to move out of the Senate Ways & Means Committee last week. AWB opposed this bill, which would have been especially burdensome for small business. It would have required employers to provide an employee’s complete personnel file within 14 days of a request without allowing for reasonable redactions to protect other employees. It also included a private right of action, which AWB opposes.
Paid family and medical leave: Two bills to help stabilize and support the state’s PFML system are moving forward. Senate Bill 5586 would allow employers to access certain employee paid family and medical leave data so the employer can administer claims on paid time off and other HR functions. Senate Bill 5286 implements a bipartisan plan that AWB helped negotiate to stabilize the state’s Paid Family and Medical Leave program. Of particular importance is re-allocating $350 million (initially funded last year) to help set up a PFML reserve fund.

Emily Shay, government affairs director for tax and fiscal policy and manufacturing, is watching a number of bills, including:

Clean manufacturing: Senate Bill 5269 passed the House 95-2 on Thursday. AWB supported the bill, which includes a study of how the transition to net-zero emissions will impact the manufacturing sector. The bill directs the state Department of Commerce to develop an independent assessment strategy of new and emerging industries to meet emissions targets and strengthen the state’s manufacturing base.
B&O tax credit for employee ownership: Senate Bill 5096 has unanimously passed the Senate and is awaiting a vote on the House floor. AWB supports the bill, which provides a business and occupation tax credit for companies that switch over to an employee ownership structure. Studies show that employee ownership increases employee wages, wealth, satisfaction and retention, and encourages businesses to stay locally owned.
Local tax increment financing program: House Bill 1527 has moved to the Senate floor for a vote. The bill makes technical corrections to tax increment financing areas and requirements. AWB supports the bill, which fixes the definition of real property to ensure private investments on publicly owned land are included in the increment value and that government-owned facilities are eligible projects. Tax increment financing is an important economic development tool that also preserves property tax principles.

Peter Godlewski, AWB’s lead on energy and environmental issues, is tracking a number of issues, including:

Energy siting: House Bill 1216, which aims to make it easier to site clean energy facilities, passed the Senate 30-18 on Saturday. AWB remained supportive of the bill, but we were disappointed it didn’t go further to address some of the low-hanging fruit on permitting decisions. The bill should have provided increased certainty for project proponents to receive a faster permit decision. Currently it takes far too long for projects to receive a decision, which is a strong disincentive to attract the projects our state needs. Additionally, while AWB was pleased that energy-intensive, trade-exposed industries (EITEs) were included in the bill, we believe the language is far too restrictive. The state is requiring EITEs to reduce their emissions and AWB firmly believes that a process that provides a certain permitting pathway should be made available to projects to help these industries decarbonize and help meet the state’s overall climate goals.