[PPT] - Legislative Update M u n i c i p a l C l e r k s A s s o c i a t i PowerPoint Presentation

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Legislative Update

M u n i c i p a l C l e r k s A s s o c i a t i o n M a r c h 1 5 , 2 0 1 8

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2018 Legislative S ession

60-day short session ended March 8
Change of control of S

enate after November 2017 elections

Capital budget and Hirst / Fost er water compromise passed January 18
Capital budget included funding for Public Works Assistance Account

proj ects for first time in several years

S

upreme Court order on McCleary education funding – phased implementation for teacher salary increases did not fully comply by S eptember 2018 deadline

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AWC 2018 priorities – progress on several priorities in session

S

trengthen city tools to address housing conditions in our communities

Direct funds to mental health, chemical dependency, and social safety

net programs

Enhance economic development tools and programs that foster

business development in cities

Preserve state-shared revenues with cities and increase law

enforcement training funds

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Finance Issues

ESSB 6032 - Supplemental operating budget – passed

S

tate-shared revenues - left fully funded

includes additional $18 m marij uana revenues to cities and counties based on February

2018 revenue forecast

Basic law enforcement academy – one additional class in 2019 and one locally

funded class in 2018

Mental health – additional $55.1 m
Opioid treatment and prevention funding – additional $14.4 m
Budget proviso for state tax structure study
Transportation budget proviso for Joint Transportation Committee study to assess the

current state of city transportation funding, identify emerging issues and recommend funding sources to meet current and future needs

Report to the Legislature due by June 30, 2019

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Finance Issues

SHB 2597 – Local option to extend state exemptions to levy lid lifts – passed

Gives local government s t he opt ion t o exempt qualifying senior cit izens,

persons ret ired due t o disabilit y, and vet erans suffering from a t ot al service- relat ed disabilit y from propert y t axes on a local levy lid lift EHB 2006 – Local revenue flexibility – did not pass

Removed the supplanting language for 0.1%

mental health sales tax and levy lid lifts

Expanded authority for $0.50 criminal j ustice levy to all counties
currently limited to counties under 90,000

HB 1113 – Restoring growth in liquor revenue – did not pass

Increased the local distribution of liquor revenues by $2.5 million each year until FY 2024

when revenues would have returned to their historical distribution formula

60%
f the revenue would have been directed to public safety
Funds would have been split at the current ratio: 80%

to cites and 20% to counties

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Finance Issues

2SHB 2015 - Lodging tax on short-term rentals - passed

Applies the hotel motel tax on lodging with less than 59 units, including short-term

rentals less than 30 days (AirBnB, etc)

Applies the King County convention center tax on lodging to lodging premises with

59 or fewer units, including short-term rentals

SB 6043 – Ridesharing companies – did not pass

Established statewide regulatory authority for transportation network companies

(Uber, Lyft)

Department of Licensing would have done background checks and licensing
City ability to regulate drivers and vehicle operational requirements would have

been preempted

$0.10 per ride fee to fund program
Remainder distributed to local governments based on proportional number of rides per

j urisdiction

Budget proviso for JTC study to recommend regulatory framework

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Finance Issues

SB 6587 – Utility billing – did not pass

Would have required local utility districts with 10,000 or more customers to disclose

state and local tax rates, if any, on each billing statement beginning on S eptember 1, 2018

Would have required local utility districts with 5,000 - 10,000 customers to begin

disclosing tax information by the earlier of their next billing system update or January 1, 2023

When no billing statements are issued, would have required tax rates to be made

available upon request

SB 6143 – Unit-price contracts – passed

Allows cities to use unit-price contracts for public works for recurring or on-call

business or operations needs

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Housing/ Homelessness Issues

HB 1570 – Document recording fee – passed

Makes permanent and increases recording fee from $40 to $62
Funding goes to counties for programs and housing to address homelessness

HB 2667 – Housing support eligibility for permanent disability- passed

Continues eligibility for housing supports for recipients of housing supports through

the Housing and Essential Needs (HEN) program for temporary disability when their disability becomes permanent and they move to the Aged, Blind and Disabled program

Previously, this transition would have resulted in loss of eligibility for housing

supports, contributing to homelessness

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Housing/ Homelessness Issues

HB 2437 – Local option housing sales tax credit – did not pass

Optional authority for up to 0.3%

sales tax credited against the state sales tax for affordable or supportive housing

Use of authority required a local match

SHB 1797 – Local option housing revenue tools – did not pass

One-time sales tax credit against state sales tax for purchase or development of

affordable housing

Would have extended mental health sales tax authority to counties with 1.5 million

population and the cities within

City or county could have used up to $100,000 or 25%
f REET II for affordable

housing until June 30, 2022

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S

cial S

afety Net Issues

HB 1047 - Medicine takeback – passed

Provides statewide program for safe drug disposal in every community, funded by

pharmaceutical industry

HB 2892 - Mental health field responders - passed

Creates mental health field responder pilot program to help city police departments

hire and utilize mental health professionals in partnership with their police

Programs will help connect individuals with services and care rather than defaulting

into the criminal j ustice system

Provides WAS

PC $1m to fund eight grants per fiscal year

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General Government

ESSB 6002 - Voting Rights Act – passed

Allows an individual to file a lawsuit against a local government alleging that the

election method (at-large or primary-only districts) dilutes their voting preference

similar to S

ec 2 challenges under Federal Voting Rights Act of 1965

allows court to impose remedies, including district-based elections at general election
Requires 180-day notice to local government for good faith process to change system

with remedy, including district -based elections, to address potential violation

Establishes a four-year safe harbor from further legal challenge for changes imposed

by the court or implemented in response to a notice and approved by the court

Review of notice-based changes requires court to consider facts favorable to challenger and creates

rebuttable presumption of invalidity of local government remedy

Authorizes local governments to create voting districts and district-based elections

at the general election, to address a potential violation

Includes cities, counties, school districts, fire districts, ports, public utility districts
Exemption for cities less than 1,000 and school districts with student population less than 250

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Public S afety

HB 2262 – Wrongful death – did not pass

Expanded liability for wrongful death tort claims by expanding eligible claims for

parents of adult children and the scope of damages

HB 2263 – Preempting marijuana regulation – did not pass

Required voter approval prior to a marij uana ban
Established general legal principle that state law preempts city ordinances or

regulations pertaining to recreational and medical marij uana

HB 2687 – Indigent defense funding – did not pass

Required the state to increase public defense services funding to cities and

counties by ten percent every year, with full funding provided by 2028

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Public safety

I-940 and HB 3003 – Police deadly force – passed

2017-18 task force on police use of force
I-940 – initiative to Legislature filed at start of 2018 session
HB 3003 effective contingent on passage of I-940 and after 90-day referendum period
Legal challenge
Creates a new good faith standard for police use of force
Requires additional law enforcement training on de-escalation and mental health
Requires law enforcement to provide or facilitate first aid to inj ured persons at a scene

controlled by law enforcement, at the earliest safe opportunity

HB 1783 – Legal financial obligations – passed

Changes how legal financial obligations (LFOs) are imposed on convicted defendants.
Eliminates interest accrual on the non-restitution portion of LFOs and revises standards for

reduction or waiver of interest.

Limits sanctions to willful failure to pay LFOs; not willful if the offender is indigent,

homeless, or mentally ill.

Grant funding provided in budget to address court impacts

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HR & Pensions

HB 2633/SB 6314 - Presumptive occupational disease – did not pass

Expanded presumption of occupational diseases for public safety
Added 5 infectious diseases for fire and law enforcement, 9 additional cancers for

fire personnel, and heart disease for law enforcement

SB 6214 – PTSD presumptive disease – passed

Creates presumption for a post-traumatic stress for law enforcement officers and

firefighters who have served at least 10 years

PERS 1/TRS 1 pension COLA – passed

Provides a one-time, permanent increase of 1.5%

with maximum increase of $750

HB 1298 – Ban the box - passed

Prohibits employers from making inquiries related to criminal records until after

initially determining the applicant is qualified

Exceptions for law enforcement, federal requirements, positions serving

vulnerable persons

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Telecommunications

SB 5935 – Small cell telecommunications/rural broadband – did not pass

Would have required cities above a certain size to update or adopt policies relating

to small cell technology in certain circumstances

Would have established an office for rural broadband in the Governor’s office and

provided funding for expansion of broadband in underserved rural areas

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Other workgroups

EHB 2005 – Business license model threshold & engaging in business

AWC workgroup of cities
Draft language adapted from B&O tax model ordinance
S

urvey to cities

maj ority do not have a threshold
58%

preferred $1000 annual gross revenues per city

Threshold
Only applies to general business licenses, not regulatory licenses
Allows cities to require registration with no fee for businesses under the threshold – BLS

will treat as “ discounted” rate

Would not apply to businesses with a location in the city
Drafted by July 1
Adopted by January 1, 2019 by all business license cities
BLS

cities 75-day notice of fee change to DOR in October 2018

Requires report to the Legislature by December 31, 2018 on adoption by cities

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Other workgroups

EHB 2005 – B&O tax service income two-factor apportionment

DOR task force of cities and business representatives
Requires report to the Legislature by October 31, 2018
Task force will recommend changes to simplify the two-factor service income

formula in RCW 35.102.130

using a market-based model and
methods that rely on information typically available and captured by common

business recordkeeping systems

Current two-factor test in RCW 35.102.130 includes a payroll factor and a service

income factor

the first prong of the formula for allocating service income is based on the

maj ority of physical contacts with customers

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Other issues

Lodging tax reports

2017 lodging tax expenditure reporting to JLARC
Reports due by May 30, 2018
system is now open
leg.wa.gov/ JLARC/ Pages/ Lodging-Tax.aspx

GMA Ruckelshaus Study

Meetings around the state for input on almost 30-year-old GMA
Report due June 2019

I-1433 - Implementation of paid sick leave

Took effect on January 1
AWC webinar & MRS

C information

Paid family leave – implemented in last year’s budget

Rulemaking underway – comments were due March 13

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