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The Latest from Olympia

April 4, 2011

IN THIS ISSUE
Budget, Finance & Taxes
General Government
Human Services, Health & Housing
Labor & Pension
Land Use
Natural Resources & Environment
Public Safety
Transportation & Public Works

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WSAC News Corner 

The Legislature Reaches Another Deadline 

Friday, April 1, was the cutoff for fiscal committees in the opposite house.  The next cutoff is Tuesday, April 12, for bills to pass the opposite house. Usually there is a lot of activity in each fiscal committee during the last couple of days.  Not this year, with so few bills, the House did not even meet on Friday. Additionally, the Senate finished early in the afternoon.  The Senate Ways and Means committee was missing a couple of members from the majority party when it came time to exec bills out of committee and several key bills did not have enough signatures.  One of them is King County's bill that would extend the stadium taxes in order to continue paying for several arts and culture programs; housing programs and the convention center.

 

Operating & Capital Budgets

For WSAC's Budget Highlights Comparison - Click Here

 

Operating Budget 

The House released their proposed operating budget at noon today and by in large part protected key local government programs and fund sources.  The budget contains $4.4 billion in cuts and reductions.  They filled the $5.1 billion budget hole by cutting $3.2 billion out of current levels of state spending and enacting cost-saving reforms and foregoing $1.2 billion of planned increases for things like I-728 and I-732 and drawing from $514 million from fund transfers and other resource changes.
 

Examples of cuts include:
 

  • $482 million reduction to higher education institutions (offset, in part, by increased tuition)
  • $362 million from automatic increases to Plans 1 state employee retirement plans
  • $216 million from K-4 class-size enhancement
  • $177 million from a cut in state employee salaries
  • $141 million in hospital rates and related changes
  • $108 million from changes to the Basic Health Plan
  • $100 million in reduced Disability Lifeline cash grants
  • $97 million for reduced personal care hours for long term care and developmentally disabled clients.

Capital Budget
The proposed capital budget released today includes key funding for counties.

 

Major components include:
 

  • $330.8 million for the Public Works Board
  • $97.9 million for drinking water
  • $5 million for the Community Economic Revitalization Board
  • $43.4 million for various local community projects
  • $60 million for the Housing Trust Fund and weatherization
  • $50 million for the Washington Wildlife and Recreation Program
  • $60 million for salmon and other species recovery efforts
  • $181 million for various toxic cleanup and prevention programs
  • $4 million for forest board land purchases in southwest WA
  • $47 million for Columbia River water


Legislative Steering Committee

The Legislative Steering Committee met in Olympia on March 31st.  The committee received an update on key legislation affecting counties.  They agreed to continue working on the document recording fee bill that would extend funding for certain low income housing programs.

 

LSC will hold its next and possibly final meeting during the regular session on Thursday April 14 in Olympia at the WSAC building.

 

Please note, on the evening of Wednesday April 13, WSAC will host the Secretary of the Department of Health as well as the Secretary of the Department of Social and Health Services for an informal roundtable discussion.  This meeting will begin at 5pm at the WSAC building.  Please RSVP Brad Banks if you plan on attending.

Budget, Finance & Taxes

Fiscal Relief Legislation (SHB 1478)
The Senate Government and Operations passed out the fiscal relief bill with a couple of amendments.  The major changes are changing the future GMA and SMA updates to eight years.  Reducing the buildable land review from 5 to 4 years.  We have drafted an amendment that would require the buildable lands report due one year prior to the major update.  We think we have buy in from all parties.

 

Stormwater - The Phase II NPDES permit would have their current permit extended another year until summer of 2013. Ecology would continue their process of updating (and adding new requirements) this permit and stay on track to adopt it in the summer of 2012. That permit would be on "hold" through the 2013 legislative session and would not take effect until the session was over. This leaves open the opportunity for the legislature to evaluate the new permit and provide input before it takes effect.

  • Shorelines Master Program updates - Most counties and cities are poised to update local Shorelines Master Programs over the next three years. A few have already done so. The process is time consuming and expensive. Once the updates are locally adopted, they have to be sent to Ecology for review and approval. That approval can take time, sometimes a lot of time. With over 200 communities in the queue for adoption in the coming few years, it's important that Ecology conduct and finish their review and approval process in a timely manner.
  • Frequency of GMA/Shorelines updates - Under current law, every city and county must review and update their growth management and shorelines plans and regulations on an "every seven year" cycle. The bill change that to every 8 years following the next round of local updates.
  • Delaying until 2018 the mandate to convert local government fleets to use biodiesel or electricity. This mandate is not attainable and would be very expensive.
  • Delaying the adoption of new rules from Ecology on the use of reclaimed water - something many counties and cities want to do, but depending upon the requirements, might find impossible to fund.
  • Changing the "buildable lands" data collection and analysis in King, Pierce, Snohomish, Kitsap, Thurston and Clark Counties from 5 years to 4 years.
  • Allowing those who collect impact fees on new development to accumulate them for capital projects for up to 10 years instead of the current limit of six years.

Flexibility for Expenditure of Local Real Estate Excise Taxes (REET) (HB 1953)
HB 1953 is in Rules awaiting floor action.  The bill does the following:

  • Enables cities and counties to use the first- and second-quarter REET for operations and maintenance of eligible REET categories, including streets, sidewalks, and parks. The first-quarter REET may also be used for recreational facilities, law enforcement facilities, fire protection facilities, libraries, judicial facilities, and flood control projects. (Under current law local governments can only use REET to purchase or finance capital facilities or projects, not to operate or maintain them).
  • Allows all cities and counties to use the greater of $100,000 or 35 percent of available funds, not to exceed $1 million per year.
  • Enables the second-quarter REET to be used for debt service purposes.

These provisions would sunset December 3, 2016.

General Government 

Public Records
There are three public records bills still alive.  They will need to be acted upon by either the house or the senate prior to April 12th:

  • Allow for Good Faith (HB 1899)
     
    HB 1899 allows the court the discretion to award no daily penalties for a public records violation, without increasing the maximum penalty.
  • Limiting Penalties for Inmates (SB 5025)
    SB 5025 prohibits a court from awarding penalties for an agency's failure to provide records to a person serving a criminal sentence, unless the records were denied in bad faith.
  • Exempting Youth Information (SB 5098)
    SB 5098 exempts personal information about participants in community programs from public disclosure.
Human Services, Health & Housing 

Reimbursing Counties for Providing Judicial Services Involving Mental Health Commitments (SB 5531)

This bill sets up a process for counties with Evaluation and Treatment beds to apply for reimbursement of costs of providing judicial services associated with commitments for involuntary mental health treatment. Under the substitute bill passed out of the Ways and Means committee, funds would be allocated from funding from Regional Support Network (RSN) annual allocations and a process would be set up between RSNs to bill for county cost per commitment based on the county of residence. The rate would be determined based on an average of the expenditures for judicial services within the county over the past three years and prohibits the imposition or collection of a filing fee for civil commitment cases subject to reimbursement.

 

The bill has been passed to the Rules Committee for second reading.


Concerning the use of Moneys Collected from the Local Option Sales Tax to Support Chemical Dependency or Mental Health Treatment Programs and Therapeutic Courts (SB 5722)

This substitute bill would allow additional flexibility beyond the current supplant authority for counties. The bill would allow counties with a population greater than 25,000, to use up to 50 percent of monies collected to supplant funding for existing services with a ten percent scale back in supplant authority over the next five years.  A county with a population less than 25,000, may use up to 80 percent of monies collected to supplant funding for existing services with a twenty percent scale back on the supplant authority over the next five years.  Funding used to support the cost of a judicial officer and support staff of a therapeutic court would be exempt from supplant restrictions.
 
This bill passed out of the House Ways and Means Committee with an amendment that would allow further flexibility for the funds for counties that have already passed the tax by extending the timeline in the bill to apply to all counties.  The bill has been placed on the second reading calendar by the Rules Committee.  

 

Concerning Triage Facilities (HB 1170)

This bill was brought forward by Snohomish County and is supported by WSAC. The bill would allow development of a facility for a law enforcement officer to take an individual for assessment and stabilization. The Triage facility option would give counties a lower cost alternative to Evaluation and Treatment Centers and Crisis Stabilization Units for individuals in crisis.
 
This bill passed out of the Senate Human Services and Corrections Committee and has been referred to the Rules Committee for second reading.

Labor & Pension

Workers' Compensation "Fixes"
Earlier this month the Senate passed SSB 5566, which included an option to make lump-sum payments for permanently disabled workers - a major priority for the business community. However, the chair of the House Labor & Workforce Development Committee has indicated he will not hear the bill.  When they heard the bills below, most of the supporters of the Senate expressed support for the bill even though there wasn't a hearing it.

 

A package of House bills that covers several aspects of the workers' compensation system has been introduced. The package is not a major overhaul, but a series of nips and tucks to save money and streamline the process. Overall, House leadership says the bills would save about $150 million during the next five years.

 

The Governor offered another idea late on Friday and at the time of this article, complete details were not available.

  • ESHB 2002 would authorize State Fund employers to receive a wage subsidy and reimbursements for employing an injured worker at light duty or transitional work. The bill passed the Senate Labor, Commerce & Consumer Protection Committee with an amendment that would remove provisions in the bill requiring the Department of Labor & Industries to obtain a statement confirming light duty work from the medical provider before the start of light duty work. It also eliminates other language changes to the return-to-work section, leaving existing law unchanged.
  • HB 2023 would require permanent total disability industrial insurance awards to be offset by any prior permanent partial disability awards for the claim or claims.
  • HB 2025 would freeze industrial insurance cost-of-living adjustments for fiscal year 2012.

Pensions
Governor Gregoire introduced HB 2021 to limit the future annual cost of living adjustments for PERS 1.  Currently each plan member automatically gets an increase annually.  The fiscal note estimates a savings of $197 million in the 2011-13 biennium and $272 million in the 2013-15 biennium for local governments.

 

WSAC, AWC and the Governor's office testified in support of the bill last week.  The House Transportation budget assumes the savings in their budget.

 

The bill has the following components in it:

  • Eliminates further increases of Public Employees' and Teachers' Retirement Systems Plan 1 (PERS Plan 1 and TRS Plan 1) benefits through the annual increase, or "Uniform COLA" above the amount in effect on July 1, 2010, unless a retiree qualifies for the minimum benefits.
  • Permits members of PERS Plan 1 and TRS Plan 1 that qualify for the basic minimum benefit formula in the plans to continue to receive the Uniform COLA.
  • Reduces the minimum employer contribution rates for the PERS Plan 1 unfunded liability from 5.75 to 3.5 percent, and for the TRS Plan 1 unfunded liability from 8.0 to 5.75 percent.
Land Use

There was only one land use bill impacted by last week's fiscal committee cutoff, and as a result it was a quiet week in this area. 


The legislation that provides an optional process for counties in addressing the application of critical area ordinances to agricultural lands, as is recommended by the stakeholders who have been negotiating this issue at the Ruckelshaus Center (HB 1886) was moved out of the Senate Ways and Means Committee.


WSAC staff worked to craft an amendment to the section of the city and county fiscal relief bill (HB 1478) that deals with the buildable lands report.  As the bill came out of the Senate committee, it would increase the frequency of the buildable lands report to once every 4 years.  The WSAC proposal is that the buildable lands report occur one year prior to a county's statutorily mandated review of its comprehensive plan.  We are hopeful that this amendment will be adopted when the bill reaches the floor.

 

Senate Committee Scales Back Pre-emption for Small-Scale Renewable Energy Project Permitting (ESHB 1081)
This bill passed the Senate on Friday with three amendments.  The first amendment added in a null and void clause.  So, if the bill isn't funded in the final budget, the bill goes away.  The second amendment now requires counties to consider the model ordinances.  And, the final amendment makes the ordinances exempt from an appeal to the Growth Management Hearing Board.  These amendments improved the bill and we thank the Senate for working with us to improve the bill.  It now goes back to the House for concurrence.

 

The current version directs state agencies to prepare a variety of model siting ordinances for counties and cities. In cities, these models would allow siting of solar, wind, or other types of renewable generating systems capable of producing no more than 3.5 kW of power (enough to power one or two typical homes). Counties have similar requirements in urban areas and all but agricultural and forest lands in rural areas, where wind facilities of up to 5 MW of generation must be allowed.

 

It requires both to address or update local siting regulations during the next round of GMA updates starting in 2014 (or a bit later if provisions in HB 1478 are enacted).

 

Limiting Densities in Certain Unincorporated Areas (HB 1265)
This bill was narrowly crafted to affect a single parcel of land in Snohomish County commonly referred to as Point Wells.  The land is surrounded by the town of Woodway and the city of Shoreline.  Shoreline had expressed concerns about the potential traffic impacts from the project.  Both jurisdictions filed a petition for review with the Growth Management Hearing board.  They also were pursing legislation that would have amended the State Environmental Policy Act (SEPA) to allow them to be co-lead.

 

The bill passed the House and the Senate Government and Operations committee held a hearing on the bill.  The hearing was more like a local government land use hearing with all sides expressing their concerns.

 

Thanks to Sen. Pridemore for his leadership and ability to have both parties sit down and reach an agreement.  A part of the agreement keeps the bill in committee which we appreciate because of the narrow focus in the bill.

Natural Resources & Environment

As with land use bills, there were very few natural resources & environment bills that were referred to fiscal committees, so this was a quiet week in this area too.

 
One big development was that the Senate approved WSAC request legislation (HB 1582) dealing with applications for forest practices on lands that are being converted to another use.  However, as the Senate amended the bill in committee, the House still must concur in the amendment.  We do not anticipate problems with this.  The bill has been championed by Representative Lytton, Senator Ranker, and Senator Haugen and they have all played instrumental roles.

 

The Senate Natural Resources & Marine Waters Committee moved forward a proposal (SB 5862) that makes significant changes to the Department of Fish and Wildlife's hydraulics program, and Department of Natural Resources forest practices program.  Among other substantive changes, the bill imposes a new fee for hydraulics applications, and increases fees for forest practices permits. 
The Department of Natural Resources request bill (HB 1421) that allows the agency to create a non-fiduciary trust with the purpose of acquiring forest land that is at risk of conversion was approved by Senate Ways & Means.

 

Similarly, HB 1186, which establishes a "vessel of opportunity" system to respond to oil spills in Washington waters that would be funded by tank vessel operators was approved by Ways & Means.  The bill also increases penalties for vessel operators that discharge oil into state waters.

Public Safety 

Medical Cannabis (E2SSB 5073)
The medical cannabis legislation passed out of the House Ways & Means Committee yesterday on a 14-to-13 vote. The bill had been amended in the House Health Care & Wellness Committee last week and was further amended by the Ways & Means Committee. The bill now goes to the House Rules Committee for further consideration. 


The current version of the bill contains planning provisions that are problematic to counties.  The bill allows the state to preempt county planning by requiring counties to coordinate jurisdictions within a county so that the county meets the licensed dispenser allocation established by the department of health.  WSAC staff will be working with House members to amend the bill on the floor to eliminate the state preemption.


Below is a summary of the other provisions in the bill:

 

  • Establishes arrest protection for those who participate in the voluntary registry.
  • Provides protection from being taken into custody and booked into jail for qualifying patients and providers who are not registered, but present valid documentation.
  • Eliminates the requirement that licensed dispensers be nonprofits.
  • Exempts law enforcement from having to pay a fee to access the Department of Health registry.
  • Lowers the number of plants allowed in an unregulated collective garden from 99 to 45 and the amount of useable cannabis from 150 ounces to 72 ounces.
  • Directs the Department of Health to establish a maximum number of dispenser licenses that may be issued in each county, based upon the number of qualifying patients and designated providers in the registry.
  • Prohibits dispensers from being located within 500 feet of a community center, child care center, elementary or secondary school, or another dispenser.
  • Grants immunity to governments and their employees if they are acting in good faith and within the scope of their duties.


Public Safety Bills Ready for Floor Action 

  • Driving with a Suspended License.  SB 5195 would free up court costs and indigent defense costs by allowing the prosecutor discretion to divert cases prior to filling criminal charges.
  • Prohibiting the Use of Felony Bail Schedules.  HB 1194 requires that bail for class A and B felonies continue to be determined on an individualized basis by a judicial officer.  There are several counties that may be impacted by this legislation.  It was amended by Senator Kline in the Senate Judiciary Committee and currently includes several provisions pertaining to the regulation of the bail 
  • Collecting DNA Samples.  HB 1153 passed out of committee last week and was referred to the Senate Rules Committee.  This bill expands the fee for collection of a biological sample for DNA identification to misdemeanors, gross misdemeanors, and juvenile offenses that require collection of a DNA sample, which is good, because we are already mandated to do this, we just weren't allow to collect a fee. 

Jail Booking Photo Failed to Meet Cut-Off

HB 1689 stipulates that each county and city jail include booking photographs as part of its jail register after charges have been filed upon that individual.  This bill was not passed out of the Senate Judiciary Committee.

Transportation & Public Works 

Congestion Reduction Charge to Fund Transit Agencies (SSB 5457)
The House Transportation Committee amended the bill and passed it out committee to Rules.
The amended version now includes King County Metro and Community Transit in Snohomish County.

 

It also requires the governing body of a public transportation benefit area in such counties to: (1) Complete a congestion reduction and connectivity plan; (2) ensure that the congestion reduction and connectivity plan is consistent with the public transportation benefit area's existing transit development plan and long-range transit plan; (3) convene a regional task force to advise on the creation of the congestion reduction and connectivity plan; and (4) expend at least 10% of the proceeds of the congestion reduction charge in a manner consistent with the congestion reduction and connectivity plan.


It also prevents the expenditure of the proceeds of the congestion reduction charge until after the congestion reduction and connectivity plan is completed and approved by the governing body of the public transportation benefit area and the director of the public transportation division of the Washington State Department of Transportation. 

 

Electric Vehicle Registration Fee (SSB 5251)
The bill passed the Senate after a ruling by the Lt. Governor that the proposed fee doesn't violate I-1053.  The bill imposes an additional fee of one hundred dollars at the time of initial vehicle registration and annual registration renewal for electric vehicles.  Once the account reaches a balance of $1 million, the state will share 30 percent of the excess with local governments.

 

State Ferry System Revenue (SB 5742)

This bill is currently on the Senate 2nd Reading calendar.
Provides funding and cost-saving measures for the Washington state ferry system. Abolishes the marine employees' commission and transfers its powers, duties, and functions to the public employment relations commission.


Requires the transportation commission to impose a vessel replacement surcharge of twenty-five cents on every ferry fare sold.


Provides a sales and use tax exemption on fuel purchased by the Washington state ferry system for use in a state-owned ferry after June 30, 2013.  There is a floor amendment to provide county ferry systems with the same exemption.


Modifies provisions relating to public works contracts and collective bargaining.


Creates the capital vessel replacement account. 

 

 

Regarding Underground Utilities, aka "Dig Law" (ESHB 1634)
The bill is on the Senate 2nd reading calendar.

 

ESSHB 1634 passed off the floor as a "work in progress." No floor amendments were allowed. It is closer to the originally introduced bill and is a step backwards for local governments-particularly for older jurisdictions. Both AWC and WSAC and providing comments and trying to improve the bill to meet our needs.

 

Concerning Financing Local Government Infrastructure (SSB 5844)
This bill is in the Senate Rules Committee. It calls for a report to the Legislature, prepared by the Public Works Board, by November 1, 2011. The report would outline an implementation plan to create a reformed state system for providing assistance for local infrastructure. The new system must have the following characteristics: transparency, accountability, efficiency, performance, and policy-focused investments. Each of these characteristics is described in more detail in Section 2 of the bill.

 

The bill would also authorize the Office of the State Treasurer to underwrite contingent loan agreements to reduce the cost of private market financing for local government projects.
We continue to work with the Legislature to create a public works financing system for the 21st century that meets the needs of counties.

 

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