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State Legislative Report
Annual Meeting April 22-24, 2009
Duke Schaub

1216/    House & Senate Capital Budgets

5222    Both budgets are essentially drafted. The plan is for the Senate to pass their version first; when the House receives the Senate budget, they will strip and amend the House version to the bill and pass it back. At that point, they will enter conference committee. At this point, the language submitted by the WSCMC is still intact in the House version. We will work to keep the language as agreed upon with OFM.

“For the 2009-2011 biennium, a life-cycle 10 cost analysis shall be calculated on a comparative basis with all other 11 options for each capital project undertaken or contemplated by a state agency over 5,000 square feet or $2,000,000. A life-cycle cost analysis is a projection of initial and ongoing costs of operation and ownership for an item, system, facility, or site over its useful life, 15 including financing, construction, operating, maintenance, and replacement.”

5854    Climate Pollution in the Built Environment
The bill mandates the use of the 2006 Energy Code immediately as a baseline for further efficiency improvements, a reduction of emissions by built environment by 70 percent by 2031. Directs CTED and Building Code Council to determine how to achieve this reduction but provides “off-ramps” that would delay implementation if the agencies determine that any regular code update is unfeasible or uneconomical. Awaiting signature of the Governor

(7) "Embodied energy" means the total amount of fossil fuel energy consumed to extract raw materials and to manufacture, assemble, transport, and install the materials in a building and the life-cycle cost benefits including the recyclability and energy efficiencies with respect to building materials, taking into account the total sum of current values for the costs of investment, capital, installation, operating, maintenance, and replacement as estimated for the lifetime of the product or project.

5735    Reducing Greenhouse Gas Emissions
The Governor’s original request bill would have implemented an emission “cap and trade” system. This provision has been dropped but the continued emphasis on reduction of vehicle miles traveled by all vehicles remains a high level concern. Creates a new stakeholder process that will meet in the interim.
Passed the Senate and House; back to Senate on concurrence calendar

NEW SECTION. Sec. 7. FINANCIAL INCENTIVES FOR FORESTRY.

The Department of ecology, in consultation with the forest practices board, the department of natural resources, and the forest carbon working group, shall develop and deliver to the legislature by December 1,2010, legislation to implement a financial incentives program for forestry and forest products that will recognize activities such as: And
…(4) The use by developers and builders of wood building materials instead of more intensive fossil fuel products such as concrete and steel.


BUSINESS REGULATIONS

5873    Apprenticeship Quotas
SB 5873 would extend quota requirements to Higher Education Apprentice regulations as elements in both determining bidder responsibility as well as a possible prevailing wage “strike” for bidding eligibility purposes. The bill was amended to remove the requirement that applies the quotas by trade and craft; and requires the Apprenticeship Council to adopt rules protecting due process and strengthen accountability for apprentice committees which aren’t enforcing program standards. The bill has passed the Legislature; is on the way to the Governor.

5963    Unemployment Insurance
The construction industry agreed with the Senate when it passed a bill with increased benefits for workers with federal stimulus money. We had expected the Legislature to then pass a bill that reduced most employers tax rates and retained current voluntary quits language. Unfortunately, the House Commerce & Labor Committee voted to increase unemployment benefits to workers yet again and strip the bill of language that would have resolved “voluntary quits” issue. Lower tax rates for employers remain in the bill but employer tax payments will go up to cover the increased benefits. Passed the Senate & House; back to the Senate to resolve disputed language. Awaiting final concurrence.

1402    Restricts Contact with Medical Providers
Prohibits communication between Dept. of L & I or the employer or employer represent- tive with the claimants health care provider once an appeal is filed. Rep. Condotta tried to add an amendment for business community that would have lessened the impact of the prohibition that was defeated.
Passed the House and the Senate; awaiting governor’s signature.

5613    Stop Work Orders
The bill would allow L&I to issue stop work orders if contractors have not secured workers compensation coverage. The construction industry secured changes which allow stop work orders only when contractors are conducting business without securing the required workers compensation coverage.
Passed both Chambers; on the way to the Governor’s desk.

1555    Underground Economy
Implements changes recommended by the Task Force on the Construction Underground Economy, including expanding the Task Force work to include all aspects of the under- ground economy beyond just construction. Also strengthens local government respon- sibilities to detect contractors operating without proper registration.
Passed House and Senate.

PUBLIC WORKS CONTRACTING

5760    UW and WSU Contracting Procedures
This bill would authorize the UW and WSU to create any alternative contracting procedure they choose if the funding for a capital project is not “state appropriated”. The bill further authorizes the use of prequalification of contractors beyond the normal pre-qual available under current alternative procurement statutes and the limiting of the number of proposers on a project. Senate has refused to concur.

1195    Payment of Undisputed Claims
The bill would require that for additional work beyond the scope of the contract, the state or municipality must issue a change order within 30 days of satisfactory completion of all or a portion of the additional work. If a change order is not issued within 30 days, the agency must pay interest at a rate of one percent per month. Passed the Legislature; to the Governor.

1196    Increasing Dollar Limit for Small Works Roster Projects
The bill is a CPARB request bill that increases the dollar limit for small works roster projects to $300,000 per project. Passed Legislature; signed by Governor. Chap. 74, Laws of 2009.

OTHER

2377    Referendum Increasing State Sales Tax
Reps. Pettigrew and Dickerson have introduced this bill which would increase the state sales tax by 3/10 of one percent until Dec. 31, 2012. The measure would appear as a referendum to the people at the next general election in fall of 2009. If approved, 21.6 percent of the revenues generated would be used to fund the “working families tax exemption for low-income persons”; the remainder would be deposited in a new “health care trust account” created to fund the basic health plan, long-term care and nursing homes, hospitals, mental health care, health care for children, healthy options health care program and public health services. Fiscal note available in the near future. Referred to House Committee on Health & Human Services Appropriations

5531    Expansion of the state’s Consumer Protection Act (CPA) by: Eliminating the repetition requirement for CPA claims; Overturning decades-old case law; Creating incentive to file more lawsuits more easily; Placing an additional liability burden on Washington businesses and service providers; Increasing the treble damages limit by 250%. This legislation was initially directed at the residential homebuilding industry but later included the commercial construction industry as well. It is currently awaiting a vote on the House floor.

2211    SR 520 Bridge Replacement
Imposes tolls on SR 520 bridge to finance construction of critical safety projects including bridge pontoons and to finance associated projects in 520 corridor. Caps expenditures for the bridge replacement at $4.65 billion. Awaiting signature by the Governor