2019 Legislative Summary

The 2019 legislative session ended up as an overall positive session. It began with a myriad of rather scary legislative ideas and agendas from Gov. Inslee, the Senate, and some House Democrats. Generally, the bad things died, and some good things passed. Here are the highlights:

Ag Slavery Bill (SB 5693): This bill caught the ire of farmers statewide. Supporters of SB 5693 accused farmers of slavery and human trafficking, something that we vigorously and aggressively argued against. The bill would have required certain Washington retailers and manufacturers of agricultural products to make annual disclosures on their websites’ homepages about their efforts with respect to their product supply chains to eradicate slavery and human trafficking and to ensure compliance with the employment laws. The bill died in the Senate.

Brand Inspections (SB 5959): This issue was a hard, painful slog. There is a two-page detailed summary for producers to review, since there are significant changes to the processes and fees associated with brand and livestock inspection. This bill passed both chambers and was signed into law.

Dairy Milk Assessment Fee (HB 1429): This bill extends until 2025 a dairy milk assessment fee that was due to expire next year.  That fee, paid by milk processors, pays for the inspection services that are required for Washington milk to comply with the “Grade A” Interstate Pasteurized Milk Ordinance – the national standard for milk sanitization. The bill passed both chambers and was signed into law.

Environmental Justice (SB 5489): The bill would have created a task force at Department of Health to develop guidance for state agencies to use when adopting rules. This guidance would have included use of a cumulative impact analysis and application of the precautionary principle (i.e., the rejection of a project or action unless the proponent can prove no harm), providing another powerful tool for state agencies to use to deny permits. The bill passed the Senate but died in the House.

Farm Vehicle Weight Flexibility (SB 5883):  authorizing vehicles carrying farm products to exceed total gross weight limits: This bill allows a vehicle or combination of vehicles carrying farm products from the field to exceed weight limits by up to 5 percent on public highways in Washington. Violations are tracked per driver, and each driver may receive up to two warnings each calendar year before a citation is issued. This bill passed both the Senate and House and was signed by Gov. Jay Inslee.

Graduated Real Estate Excise Tax (SB 5998): A new graduated real estate excise tax will replace the state’s current flat tax of 1.28 percent on all sales. Under the new structure, a 1.1 percent tax would apply to property sales up to $500,000, a 1.28 percent tax would apply to sales between $500,000 and $1.5 million, a 2.75 percent tax to sales between $1.5-3 million. Agricultural and timber lands are exempt from the tax rate increase and will continue to pay the current base rate of 1.28 percent. Business property not enrolled in a current use property tax program will be subject to the new graduated tax. This bill passed both chambers and was signed into law by the governor.

Gravel and Sediment Management (HB 1579): We were able to include in the Orca and Salmon bill (“Implementing recommendations of the southern resident killer whale task force related to increasing chinook abundance”) a provision to allow some experimentation in gravel and sediment management in three counties. While the bill passed both houses, unfortunately the governor vetoed this section. We continue to hear from producers impacted by rivers that are currently completely unmanaged for sediment and erosion. We will not stop trying to find solutions to allow us to intelligently manage rivers to prevent disastrous loss of farmland.

H-2A Fees (SB 5438): The original language in this bill would have required users of the federal H-2A program to pay additional application and per worker fees to the Employment Security Department for state administrative costs associated with the H-2A program. Users already pay federal fees to use the program. These inappropriate state fees were removed from the bill, and the amended bill establishes the office of Agricultural and Seasonal Workforce Services and an advisory committee to address labor issues in agriculture. The bill passed the Legislature and was signed by the governor.

Long-Term Services and Supports Trust Program (HB 1087): The Legislature created a new long-term care insurance program to employees in Washington. Beginning on January 1, 2022, employers must begin collecting premiums for the new Long-Term Services and Supports Trust Program. Premiums will be paid entirely by employees through a 0.58% payroll tax remitted to the Employment Security Department. ESD will use the Paid Family and Medical Leave Program as a model to establish the Long-Term Services and Support Trust Program’s collection and reporting process. Benefits will begin for eligible employees on January 1, 2025. To become eligible, Washington residents will have to work three years within the previous six years or a total of 10 years with at least five years of uninterrupted work. In addition, a person will have to work at least 500 hours in a year for that year to count towards eligibility. To qualify for the benefit, an individual must need help with at least three daily living tasks, as determined by Washington’s Department of Social and Health Services. The maximum lifetime benefit will be $36,500 per person, with future increases tied to the consumer price index. Individuals who have purchased long-term care insurance can opt out of the program.

Pesticide Application Safety (SB 5550): This bill was a negotiated response to pesticide drift/notification bills from previous sessions. It creates a committee (similar to the old PIRT panel) that will meet at least three times each year and must provide an annual report to the Legislature. The first priority of the committee is to explore how state agencies collect and track pesticide incident data. An advisory work group is created to collect information and make recommendations to the full committee on topics requiring unique expertise and perspectives on issues within the jurisdiction of the committee. In addition to fund the committee, the budget granted WSDA $250,000 in one-time funding to expand training for pesticide handlers and air-blast sprayer operators. The bill passed the Legislature and was signed into law.

Qui Tam Whistleblowers (HB 1965): This bill would have allowed anyone to bring actions on behalf of the state for violations of workplace protections. The “qui tam” legal actions would mean that any individual could act when a state agency chooses to not move forward with an enforcement action against an employer. Opening this door would likely result in an increase in frivolous legal actions against employers. The bill died in the House.

Wage and Salary Information (HB 1696): This bill prohibits employers from seeking the wage or salary history of job applicants. It requires employers with 15 or more employees to provide job applicants the minimum wage or salary for the position upon request after an employment offer is made to the applicant. Also, employers with 15 or more employees are required to provide the wage scale or salary range of the new position when an employee is offered a transfer or promotion and requests the wage information. The bill passed both chambers and was signed into law.

Wage Liens (HB 1514): This bill would have created procedures for establishing, foreclosing, extinguishing, and prioritizing wage liens for claims on unpaid wages. These changes would have altered the priority of liens on real property even if the other parties holding a lien were not a party to the wage dispute. The bill died in the House.

Budget: There were several notable successes, usually a specific program or a regionally important win.

  • Carbon and Conservation: A small budget note was inserted in the final budget that directs WSDA and the Conservation Commission to evaluate all existing needs for Conservation. This started as an attempt to push forward legislation (SB 5947) to establish a large farm carbon reduction program at WSDA. Our concern was that carbon reduction is good, but if it leaves other important Conservation activities without enough funding then farmers will get praised for reducing carbon and flogged for not doing enough to improve soil, water, and air quality. Efforts to improve water quality for shellfish farms, the Voluntary Stewardship Program, and salmon and wildlife habitat should be complementary and integrated rather than competing for scarce conservation incentive dollars and technical assistance funding for the Conservation Districts. The evaluation will be done this summer and should allow us to show what the real need is to implement all the existing conservation expectations as well as add carbon reduction activities to the mix. 
  • Chehalis Valley Habitat and Flood: The capital budget provided $79 million to continue the work in the Chehalis Valley to work on salmon habitat and to finish the permitting and final environmental evaluation of a flood control dam in the Upper Chehalis Valley. A flood control structure would prevent the catastrophic damages like those suffered by many of the 30 dairy farms in 2007. The fish recovery work will hopefully prevent a listing of the Spring Chinook salmon in the Chehalis Basin. (The Chehalis Basin is the only river in our state without an ESA listing.)
  • Dairy Nutrient Innovation Grants: An additional $1 million was added to the $5 million in dairy nutrient innovation grants that were funded in the previous biennium. These funds should complete an advanced distillation system in Northwest Washington to process dairy manure into dry or very think slurry, approximately 13 million gallons of clean water per year and produce a new product from manure – an ammonia water product that has already been certified in Texas as an organic pure nitrogen fertilizer that looks like it will be of interest to organic grain, vegetable, and greenhouse farms.
  • Environmental Justice: An Environment Justice Work Group will receive $390,000 to recommend strategies for incorporating environmental justice principles into how state agencies discharge their responsibilities. This language is vastly superior to the what was in the standalone bill (SB 5489), which died.
  • Soil Health Initiative: WSU was allotted $500,000 for new soil health research and extension activities to develop, evaluate and incentivize best management practices for agricultural. Some activity must be conducted at the research and extension center in Mount Vernon.
  • Wage and Hour Investigations: L&I received $1.26 million from workers’ comp dollars to initiate and conduct targeted, company-wide investigations where it appears (e.g. based on investigation of an individual worker complaint) other workers may not be receiving the wages, breaks, and/or paid sick leave they are owed.
  • Yakima Integrated Plan: The capital budget provided $30 million for continued work on the Yakima Integrated Plan that will increase water storage to improve reliability and drought supply for the Yakima irrigation system.

2018 Legislative Session Summary

Legislative Building in Olympia

During our Regional Dairy Meetings earlier this year, we provided information about key ideas, efforts, and bills during the first part of the legislative session. With the election of Sen. Manka Dhingra in a special election last November, Democrats controlled both legislative chambers this year. As the session continued, many tax and policy efforts died, while others were modified and enacted into law. The 60-day 2018 legislative session came to an end March 8.

Washington State Dairy Federation reviews thousands of bills as they are introduced and tracks hundreds of bills during session. Now that session is over, we are recapping the issues important to the dairy industry. Below are key issue categories with bill specifics in each one.

Environment and Energy

Jay Gordon speaking with Sen. Dean Takko and Rep. Jim Walsh

Carbon Tax (SB 6203): There were numerous carbon tax bills, and all would have increased farm production costs and transportation costs, hurting farmers and rural communities. Gov. Jay Inslee’s initial proposal would have hit dairy farms with about $9,000 per year in added carbon taxes from highway fuel, electric cost, and trucking milk and feed. WSDF opposed these bills. In the end, the carbon tax died on the Senate floor. However, a coalition of environmental, tribal, and labor groups filed a carbon tax initiative. Proponents must collect 260,000 signatures by July 6 to qualify for the Nov. 2018 ballot.

Greenhouse Gas Standards (HB 1144): This bill would have made the state’s greenhouse gas emission reduction limits even more stringent than they currently are. WSDF opposed this bill, which passed the House 50-48 but died on the Senate floor.

Low Carbon Fuel Standard (HB 2338): Similar to a carbon tax, this bill would have increased the cost of fuel. WSDF opposed this bill, and it died in the House Rules Committee.

Renewable Natural Gas (HB 2580): This bill, which WSDF supported, directs WSU to evaluate and report to the Legislature how to increase production of renewable natural gas (RNG). It reestablishes tax incentives on property and equipment necessary to collect clean biogas and inject in transmission lines as pipeline quality natural gas, and it includes a process to establish uniform gas quality standards. RNG production could replace as much as 20 percent of current diesel use in Washington. Dairy farms are the second largest potential source of RNG (potential for over 22 million gallons of diesel equivalent sourced RNG per year) after landfill gas (122 million gallons diesel equivalent potential). This bill passed the Senate 47-1 and the House 98-0. The governor is expected to sign the bill.

Fiscal

Capital Budget (SB 5965): The Legislature began with two initial goals – pass a Hirst fix and pass a biennial capital budget. Legislators accomplished these goals in mid-January. The capital budget funded several key projects for the dairy industry: WSU Animal Health Building, dairy nutrient extraction innovative technology grants via the Conservation Commission, and state cost share for conservation activities.

Dairy ambassadors at Dairy Day 2018

Capital Gains Tax (HB 2967): This bill, opposed by WSDF, was a thinly veiled income tax, as it would have imposed a tax of 7 percent on long-term capital gains. It died in the House Rules Committee.

Supplemental Operating Budget (SB 6032): Amazingly, the 2018 legislative session did not result in new taxes. With increased revenue of $1.3 billion, legislators were hard-pressed to raise taxes. Instead, a simple majority of legislators diverted $700 million for property tax relief before the money went into the state’s Rainy Day Fund, where it could only be accessed by a supermajority vote. The final vote, largely along party lines, on the supplemental operating budget was 54-44 in the House and 25-24 in the Senate.

Labor

Employee Anti-Retaliation (SB 5528): This bill would have created a presumption that an employer retaliated against an employee for certain actions such as discharging, threatening, failing to rehire a worker after a seasonal interruption, or engaging in unfair immigration-related practices. Under this bill, employers would be guilty until they could prove their innocence. SB 5528, which WSDF opposed, was given a hearing in the Senate Labor & Commerce Committee, but it did not move from committee.

Gender Pay Equity (HB 1506): This bill updated the terminology in the state’s existing Equal Pay Act, prohibits discrimination in providing employment opportunities based on gender, and prohibits retaliation for certain workplace discussions about wages and other matters. It provides employees with administrative and legal remedies. The bill did not include language to make it the only statewide standard on this issue, meaning that local governments can enact more stringent regulations than this law. The Senate passed the final version of this bill 36-12, and the House passed it 70-28. Gov. Inslee is expected to sign the bill.

Model Policies Regarding Sexual Harassment (SB 6471): This bill creates a work group at the Human Rights Commission to develop model policies and best practices for creating workplaces that are safe from sexual harassment. This collaborative approach includes business and labor stakeholders, including grower and farmworker representatives. The bill passed both chambers unanimously and is expected to be signed by the governor.

Prohibiting Employers from Asking About Arrests or Convictions (HB 1298): This bill, also called the Washington Fair Chance Act or the “Ban the Box” bill, prohibits employers from asking orally or in writing about arrests and convictions on job application forms or before an applicant is determined otherwise qualified for a position. It allows employers to confirm arrest records before initial interviews. The state attorney general’s office will enforce this act. The bill passed the Senate 33-16 and the House 52-44 and was signed by Gov. Inslee.

Wage Payment Violations (SB 5249): This bill, which WSDF opposed, would have increased damages for wage payment violation by employers from double to triple damages. The bill died in Senate Rules.

Mental Health

Gov. Inslee signs Second Substitute House Bill No. 2671, March 15, 2018. Relating to improving the behavioral health of people in the agricultural industry. Primary Sponsor: J.T. Wilcox

Improving Behavioral Health of People in the Ag Industry (HB 2671): This legislation creates a task force to review options available to improve the behavioral health status and to reduce suicide risks within the ag industry. The impetus for the bill was a national report from the federal Centers for Disease Control and Prevention that showed suicide rates in agriculture are five times higher than the rest of the population. The task force will review data related to behavioral health of agricultural workers, including factors that affect suicide risk, and review options for improving behavioral health and reducing suicide risk in Washington. The state Department of Health will establish a pilot program to assist people working in agriculture. WSDF supported this bill, which passed the Legislature unanimously and was signed into law by Gov. Inslee.

Pesticides

Pesticide Application Safety (SB 6529): The original version of this bill would have required four-day notification of pesticide application by fumigation, aerial, or air blast methods. It also would have required licensed applicators to report their spray records each month to a publicly available database at the state Department of Health. This bill was uniformly opposed by grower advocates, including WSDF. Due to the makeup of the Legislature, stopping the bill was an unlikely outcome. Instead, the bill was changed to require a pesticide application safety work group of legislators, agency officials, and stakeholders to meet during the next several months. The final version of the bill passed the Senate 45-2 and the House 57-41, and it was signed by the governor.

Transportation

Gov. Inslee signs Senate Bill No. 6180, March 9, 2018. Relating to defining the planting and harvest dates for purposes of exemptions for agricultural transporters. Primary Sponsor: Steve Hobbs

Redefining Planting and Harvest Dates for Ag Transportation (SB 6180): This bill expands the state’s designated planting and harvest dates from 10 months to year-round, which is the standard in our neighboring states. As a result, the ag exemption from the “hours of service” drive time and log book regulations is also expanded to the full year. The bill passed the Senate 47-0 and the House 97-1, and Gov. Inslee signed the bill. WSDF supported this measure.

Water

Hirst Fix (SB 6091): We advocated for a legislative fix to the state Supreme Court’s Hirst ruling limiting the use of exempt wells for residential use. We were mindful this ruling could spread to livestock watering if not resolved. A legislative compromise, SB 6091, was passed and signed by the governor. Depending on which basin you are in, there are different rules. Building permits are once again being issued for houses that rely on permit exempt wells, with one exception. The “fix” did not solve the exempt well/building permit issue in the Upper or Lower Skagit/Samish basins. (Those WRIA’s are subject to a separate Swinomish v. Skagit County decision). The main aspect of the Hirst fix did not touch the other three exemptions in RCW 90.44.050 (non-commercial yards, small commercial, and stock-watering uses). To find out which watershed you are in, see this map.

Joint Legislative Task Force on Skagit Water Supply (SB 6095): A joint legislative task force is established to review surface water and groundwater needs and uses as they relate to agricultural uses, domestic potable water uses, and instream flows in Skagit River water resource inventory areas 3 and 4, and to develop and recommend studies. $2 million is provided for studies identified by the task force in the Supplemental Capital Budget.

Skagit River Water Study (SB 6095): $500,000 of the Supplemental Capital Budget was provided to the departments of Agriculture, Fish & Wildlife, and Ecology to jointly pursue studies to evaluate instream flow needs and existing and future out-of-stream water use demands within Skagit River water resource inventory area 4 (Upper Skagit) regulated by chapter 173-503 WAC. These studies must be completed and reported to the appropriate legislative committees and task force by December 1, 2019.

Water Rights Compliance (SB 6095): $625,000 of the Supplemental Capital Budget was allocated for Ecology staff to focus on water rights compliance to address illegal water use. Actions will include technical assistance, informal enforcement, and formal enforcement actions.

Changes in the Legislature

Several legislators announced they are leaving the Legislature this year. So far, the list includes the following:

  • Michael Baumgartner, R-Spokane, 6th District
  • Judy Clibborn, D-Mercer Island, 41st District
  • Larry Haler, R-Richland, 8th District
  • Ruth Kagi, D-Seattle, 32nd District
  • Dan Kristiansen, R-Snohomish, 39th District
  • Joyce McDonald, R-Puyallup, 25th District
  • Kristine Lytton, D-Anacortes, 40th District
  • Terry Nealey, R-Dayton, 16th District
  • Liz Pike, R-Camas, 18th District
  • Jay Rodne, R-Snoqualmie, 5th District
  • Melanie Stambaugh, R-Puyallup, 25th District

Rep. J.T. Wilcox was elected by House Republicans to be their new leader due to Rep. Kristiansen’s departure.

2017 Legislative Session Recap

After a regular 105-day session followed by three 30-day special sessions, the Legislature called it quits for 2017 (so far). These special sessions come as no surprise, as over the past several years the divided Legislature has typically needed special sessions to resolve its business. However, 2017 set a record for the number of days the Legislature was in session.

During the regular session, lawmakers agreed on a bipartisan 2017-19 transportation budget. They reached agreement on the biennial operating budget hours before a June 30th deadline, averting a state government shutdown. Included in that budget package was an education funding plan designed to meet the Supreme Court’s McCleary mandate primarily through a state levy swap. A reduction of the B&O tax rate on manufacturers that was included in the budget deal was subsequently vetoed by Gov. Jay Inslee, instilling further acrimony into an already bitterly divided and opaque budget process. Continue reading

Hazardous Substances Tax

HB 2182 would generally increase the hazardous substances tax from 0.7% to 0.9% on wholesale prices from purchaser of first possession of a hazardous substance includes fuel, fertilizer and pesticides. It passed the House 50-47 on April 12. It had a public hearing in Senate Ways and Means on April 19. It currently sits in House Rules.