Washington Business Fall 2018 | Legislative Review & Vote Record

washington business “The Washington Legislature will pick up Monday pretty much where it left off when last year’s record 193-day session ended. It’s not unusual for lawmakers to use the shorter 60-day sessions that follow budget years to tie up loose ends. But this session’s ends are looser than usual, and there are more of them. Along with typical legislative business, lawmakers will have work ahead to meet a deadline for their solution for the state K-12 education funding crisis and complete unfinished work to pass a state capital budget and resolve a water rights issue that blocked that budget.” — The Everett Herald (4) “The Washington State Legislature has just begun its 2018 session. Though the session is short, there are two things lawmakers can do this year to significantly help rural communities across the state. First, the Legislature must address a flawed 2016 state Supreme Court decision that has made it extremely difficult for property owners to obtain permits to drill small, household wells. Some counties have shut down rural development projects all together. The case — Whatcom County v. Western Washington Growth Management Hearings Board, often called the Hirst decision — created an unfunded mandate for counties and a double layer of bureaucracy. Counties and rural landowners deserve clarity. While Democrats and Republicans could not agree on a way forward to address Hirst last year, it sounds like a compromise bill is now moving, and that is a good thing. The Legislature should also quickly pass legislation that both chambers approved last year, which would have lowered the business and occupation (B&O) tax rate by 40 percent for some 10,000 manufacturing firms across the state. The legislation would have given those manufacturers — mostly small- and medium-size companies — the same rate granted to Boeing and other aerospace companies. … The Puget Sound region’s economy is booming. But across the state, the post-recession economic recovery has been uneven. Much of rural Washington is still struggling, with higher rates of unemployment and comparatively modest economic gains. Fixing Hirst and delivering tax relief to manufacturers will help expand our state’s prosperity to rural counties.” — The Wenatchee World (5) “Washington’s legislative Democrats, in control of both houses after a special election last fall, promised that they would deal with necessary matters such as education and water rights, and then adjourn on time. They pretty much followed that script in the 60-day session that ended last week, with a giant assist from a booming state economy that filled state coffers w ith unexpected revenue. The Democrats’ narrow majorities — 50-48 in the House and 25-24 in the Senate — curbed the party’s seemingly innate tendencies toward raising taxes even amid rising revenues. A carbon tax — which likely would unduly hit agricultural interests — fell by the wayside, though amid the specter of a ballot initiative that could prove more onerous than what was proposed. A capital gains tax — an income tax in disguise — never gained traction. So while the 60 days saw its share of shenanigans, it was mostly a safe and sane session with a notable — and bipartisan — exception. Legislators’ efforts to exempt themselves from the Public Records Act prompted a statewide outcry over a process that was just as odious as the policy.” — The Yakima Herald-Republic (6) Sources: (1) “Rural/urban economic gap should be addressed by state,” March 1, 2018; (2) “Lawmakers’ mixed report card,” March 14; (3) “Equal footing for economic growth,” Feb. 9, 2018; (4) “State lawmakers have a lot to prove and get done,” Jan. 7, 2018; (5) “Support rural Washington,” Jan. 12, 2018; (6) “Legislature gets some things done – on time,” March 15, 2018. special edition 2018 7

Washington Business Fall 2018 | Legislative Review & Vote Record | Page 9