2008 Building Trades Priority Bills as Passed the Legislature
ESHB 3122: Underground Economy, Employer/Worker Definition: The Underground Economy Task Force recommended that different definitions of covered worker and employment exceptions used by the agencies be blended into one consistent definition in the 2008 Legislative Session to provide a consistent test for Labor and Industries and the Employment Security Department to differentiate workers, employers and independent contractors. ESHB 3122 creates a test for determining whether a construction worker is a covered worker or uncovered independent contractor for purposes of unemployment and industrial insurance laws. This bill is a substantial move forward towards collecting lost revenues due the state, and providing the construction industry and the public a clear definition of a worker. ESHB 3122 passed from the House with 92 yeas, 2 nays, 0 absent and 4 excused. The bill passed the Senate 33 yeas, 16 nays, 0 absent and 0 excused.
2SSB 6732: Underground Economy, Education, Outreach and Compliance: At its final meeting in 2007, the Task Force developed a list of recommendations for Legislative and Budgetary action during the 2008 Legislative Session. 2SSB 6732 is the result of those recommendations and will accomplish the following:
- Applicants for registration as a contractor must submit a unified business identifier (UBI) number. L&I must deny an application for registration as a contractor and suspend an active registration if the applicant has falsified information on the application or the applicant does not have an active and valid certificate of registration with the Department of Revenue (DOR). Additionally, a person who submits false information on an application for registration is subject to a penalty of up to ten thousand dollars.
- A contractor is prohibited from bidding on public works projects for one year if, within a five year period, he or she commits two violations of any of the following: willfully violates contractor registration laws; knowingly misrepresents the amount of his or her payroll or employee hours to L&I; engages in business without a certificate of coverage under the industrial insurance provisions; or commits a second violation of the contractor registration laws.
- Employers must keep records of the compensation paid to contractors and electricians with whom they contract. Government agencies may disclose records between themselves if the agencies would be otherwise permitted to obtain that information.
- L&I must add staff to the Fraud Audit Infraction and Revenue contractor fraud team and both L&I and Employment Security Department must hire additional auditors. If funds are available, funding must be dedicated to the Office of the Attorney General for contractor compliance cases.
- An expanded social marketing campaign must be created to warn consumers of the risks and potential consequences of hiring unregistered contractors.
- A pilot project must be established between L&I and local jurisdictions to explore ways to improve the collection and sharing of building permit information.
- The term of the Task Force is extended to December 31, 2008.
2SSB 6732 passed the House 94 yeas, 2 nays, 0 absent, 2 excused. The Senate passed 47 yeas, 0 nays, 1 absent and 1 excused.
SSB 6751: Unemployment Insurance for Commissioner-Approved Apprenticeship Programs: Prior to 2003, apprentices were eligible for UI benefits as they entered state-approved apprenticeship programs and met the requirements of Commissioner Approved Training (CAT). Unintended consequences of UI changes in 2003 created roadblocks for apprentices to transition into these programs. Under Washington's unemployment compensation law a person is eligible to receive unemployment benefits if the circumstances of their departure fall under one of several “good cause” categories. SSB 6751 establishes an additional "good cause", covering individuals who left work to enter an apprenticeship program approved by the Washington State Apprenticeship Training Council. The bill passed from the House amended 62 yeas, 32 nays, 0 absent and 4 excused. The concurrence vote from the Senate was 32 yeas, 16 nays, 0 absent and 1 excused.
E2SHB 3139: Benefits on Appeal: One of the priorities of the Building Trades this session was benefits on appeal. E2SHB 3139 insures fairness and just treatment for injured workers navigating the workers compensation system by allowing workers who have lost their ability to earn wages and to provide for their families due to worksite injuries by providing benefits while decisions about their claim are on appeal whether their employer is self-insured or contributes to the state fund at L&I.
- E2SHB 3139 provides that an order awarding industrial insurance benefits becomes due on the date issued unless the Board of Industrial Insurance Appeals orders a stay.
- Provides that a motion for a stay must be filed within 15 days of an order granting an appeal. The Board must conduct an expedited review of the claim file as it existed on the date of the Department order. Within 25 days of the filing of the motion or the order granting appeal, whichever is later, the Board must issue a decision. The Board must grant a motion to stay if the person seeking the stay demonstrates that it is more likely than not to prevail on the facts as they existed at the time of the order. The Board must not consider the likelihood of recoupment of benefits as a basis to grant or deny a stay.
- Creates a worker-funded account that will reimburse employer and state fund overpayment costs.
- Requires the Department of Labor and Industries to establish procedures for self-insured employers to recoup overpayments from state fund claims.
- And requires the Department of Labor and Industries to study workers' compensation appeals and the impacts of the legislation.
E2SHB 3139 passed the Senate 35 yeas, 14 nays, 0 absent and 0excused. The bill passed the House 62 yeas, 35 nays, 0 absent, and 1 excused.
ESB 5831: HVAC/R: After considerable effort put forward in the 2007 session and prior the certification of heating, ventilation and refrigerator mechanics appeared to be favorably placed for passage this session; however, over the course of the session, despite the countless meetings already held between Labor and business, business continued to vehemently resist elements of the legislation that Labor required. Ultimately the bill was reduced to task force status, but it is the intention of the Building Trades and the many lobbyists involved in the HVAC/R process to continue negotiations, participate in the task force and maintain involvement until certification is realized. ESB 5831 was modified to include the task force while in the Senate so the following votes were cast on the task force version of the bill: In the House 95 yeas, 2 nays, 0 absent, and 1 excused; and in the Senate 40 yeas, 9 nays, 0 absent, and 0 excused.
SB 6694/EHB 3381: Prevailing Wage Compliance: The Department of Labor and Industries is responsible for establishing prevailing wage rates and ensuring that employers on public works projects pay prevailing wage. SB 6694 amends RCW 39.12.070 to increase the filing fee for prevailing wage intents and affidavits from $25 to $40 to, among other administrative needs, provide for 2 additional FTEs for compliance and outreach, and fund outreach, education, training and marketing expenses. SB 6694 was dropped by the house and the increased fee provisions were attached to EHB 3381. EHB 3381 passed from the House with 55 yeas, 39 nays, 0 absent and 4 excused.
SHB 2639: Allows Public Utility Districts to Enter into Limited Liability Corporations: The issue of PUDs entering into LLCs first came to our attention during the White Creek wind project. The project had initially been planned to include prevailing wage language; however, during the planning process the PUD decided to enter into a LLC at which point they circumvented the use of prevailing wage rates. The Building Trades worked with PUD representatives during the session and supported SHB 2639 when prevailing wage language was included in the bill. The Senate passed the bill 46 yeas, 2 nays, 0 absent and 1 excused. Upon concurrence the bill passed the House 93 yeas, 0 nays, 0 absent and 5 excused.
SHB 2893: Adds a Labor Representative Position to the Forest Practices Board: The Forest Practices Board of Washington was created in order to integrate the laws, rules, and programs governing forest practices and hydraulic projects. The Governor will appoint a representative of the timber products union to the Forest Practices Board from a list of three names submitted by a timber labor coalition affiliated with a statewide labor organization representing a majority of the timber products unions in Washington. Labor has sought representation on the Forest Practices Board since its inception 34 years ago and shall now have an opportunity to assist in decisions related to the future of related hydraulic projects and the forest industry. SHB 2893 passed the House 90 yeas, 4 nays, 0 absent and 4 excused. The bill passed the Senate 48 yeas, 1 nay, 0 absent and 0 excused.
2SSB 6377: Regarding Secondary Career and Technical Education: The Building Trades have forged renewed partnerships to support apprenticeship in the Trades with the career and technical education community through Governor Gregoire’s efforts in Washington Learns and Running Start to the Trades to work closely with the Office of the Superintendent of Public Instruction, the State Board of Education, the State community College Board and within our role as members of the Washington State Apprenticeship & Training Council at Labor and Industries. Highlights of the bill:
- Requires all approved preparatory career and technical education (CTE) programs to lead to industry certification or allow students to earn dual high school and college credit.
- Directs development of model CTE Programs of Study, patterned after requirements in the new federal Carl Perkins Act.
- Requires identification of and provides grants to high demand programs that prepare students for apprenticeships or degrees with substantial employment opportunities.
- Allows skill centers to enter agreements to offer diplomas and to offer CTE courses to students who have graduated but need to complete industry certification.
- Directs the Office of the Superintendent of Public Instruction (OSPI) to conduct an ongoing campaign to increase awareness about rigorous CTE programs.
- Directs the OSPI to support school districts in adopting CTE and academic course equivalencies, including providing grants to increase the academic rigor of CTE courses.
- Creates a pilot grant to integrate instruction in CTE, academic, and English language and an In-Demand Scholars Program to attract students to careers that require one to three years of postsecondary education or apprenticeship.
- Adds CTE to the list of priority endorsements for Future Teachers' Scholarships.
2SSB 6377 passed the House 93 yeas, 0 nays, 0 absent and 5 excused. Following an amendment made in the House 2SSB 6377 the Senate concurred 48 yeas, 0 nays, 0 absent, and 1 excused.
SB 6938/ HB 3337: Clarification Applying Prevailing Wages on Construction Projects: Introducing this prevailing wage legislation was the initial step to prepare for next session. The legislation is intended to define that prevailing wage requirements include construction, alteration, repair, or improvement, other than ordinary maintenance, that involves tax incentives established by the state or any county, municipality, or political subdivision created by its laws; loans provided by said authorities; sales of public land or property to a private entity for less than fair market value by said authorities; or leases of public land or property to a private entity by said authorities. Informing elected officials and the public on the public value and investment of prevailing wage is necessary. California successfully passed legislation clarifying the application of prevailing wage during the 2000-2001 Legislative session with SB 975 and the Washington State Building & Construction Trades intends to follow suit.
For a fast paced 60 day Legislative Session this report represents a substantial legislative effort. On behalf of the Washington State Building & Construction Trades Council, AFL-CIO I would like to personally thank all of the Building Trades lobbyists, our Affiliate Members, as well as the entire Washington State Labor Council, AFL-CIO who sent emails, placed phone calls to Legislators, and traveled to Olympia to communicate as constituents to lobby these priority bills. Our success could not have been accomplished without our combined efforts to raise our collective voice.
David Johnson, Executive Secretary
Washington State Building & Construction Trades Council, AFL-CIO
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Bills and Budgets Online
Legislation:
· In the left column titled: Inside the Legislature, click “Bill Information”
· The “Bill Information” page contains links to useful legislative information; to find a bill enter either the bill number or a search term such as “unemployment insurance”, a list of relevant bills should appear. Above the search box tabs allow you to specify the year to search.
Budgets:
· Budgets can be found by committee or select “2008 Supplemental Budget Proposals” which will present the budgets by type, “Capital, Operating and Transportation” for the House, Senate and Governor. The confirmed budget is at “final enacted budgets”.
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