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2003 Legislative
Session
WSIADA Legislative Report
Compiled by TK Bentler and Theresa Gamble
During the 1st Special Session the Legislature passed the Budget
with a “Liquor Markup” which really is a tax that raises
$14 million in new revenue. It
was the only new revenue increase the Senate Republicans gave on.
Otherwise, it was the Senate Republican
Caucus and some Senate Democrats
that held the line on any new taxes at a time when the state collected
about $216 million in new revenue
from the previous biennium, despite
what you heard in the press. Governor Gary Locke really set the
tone for a no new tax budget
and living within our means that
drove the budget debate. The legislature repealed and amended most
initiatives that obligated the state to
more than it had, despite the political
pressures from the teachers union, health care advocates, and the
SEIU health care workers.
The first Special Session adjourned
at midnight on June 10, 2003 and had to be immediately called back
to to pass unemployment insurance
reform and the tax incentive package
for Boeing. Both Chambers recessed at 5:30 a.m. because of differences
in the unemployment insurance
legislation. They reconvened at
2:00 p.m. and later adjourned that afternoon when the House receded
from their amendment and accepted
the Senate’s version of UI reform. The next legislative session
is scheduled for January 12, 2004.
SHB 2215
Brief Description: Vehicle
dealers are authorized to charge
a documentary service fee of up
to $35 per vehicle sale or lease.
In order to charge the document
service fee, vehicle dealers must
observe the following conditions:
-The service fee must be disclosed in writing before the execution
of a purchase and sale or lease agreement;
-The service fee is not represented
to the buyer as a fee or charge required
by the state to be paid by either the dealer or the
buyer;
-The service fee must be separately designated from the selling
price of the vehicle and from any
other taxes, fees or charges; and
-Dealers must disclose in any advertisement that a document service
fee of up to $35 may be added to
the sale price of a vehicle.
Sponsors: By Representatives Murray and Simpson.
Status: Governor Signed. Effective
7/27/03.
ESHB 1853
Brief Description: This
legislation was introduced to allow
Kitsap County to create a public
transportation benefit area to
continue a passenger only ferry
system. It allows a local option
tax on the following: (1) Up to
a .4% motor vehicle excise tax
(WSIADA was successful in exempting
vehicle dealers from having to
collect the tax); (2) Up to a .4%
sales and use tax; (3) Tolls for
passengers and packages and, where
applicable, parking; and (4) Charges
or licensing fees for advertising,
leasing space for services to ferry
passengers, and other revenue-generating
activities. Taxes may not be imposed
without an affirmative vote of
the majority of the voters within
the boundaries of the area voting
on a single ballot proposition
to both approve a passenger-only
ferry investment plan.
Sponsors: By Representatives Rockefeller, Woods,
Haigh, Morris, Quall and Lantz.
Status: Governor
Signed. Effective Date 4/23/2003.
SB 5659
Brief Description: Authorizes
local governments to impose a .3%
sales tax on cars by a vote of
the electorate. The House of Representatives
exempted new cars from the sales
tax, but not “used” cars.
When the bill went back to the
Senate for concurrence, several
question were raised by Senator
Roach (R-Auburn) and Senator Benton
(R-Vancouver) whether amendments
added in the House of Representatives
was within the scope and object
of the bill. Lt. Governor Brad
Owen ruled that some provisions
were outside the scope and object
of the bill so the Senate voted
to NOT Concur with the House Amendments
and insisted that the House recede
from their amendments. In the final
hours of session the House of Representatives
never acted on the bill.
During the Special Session, the bill was brought up in the Senate
when Senator Lisa Brown (D-Spokane) informed the Senate Republican
Leadership that the Democrats had the votes to procedurally bring
the bill up for action. The Senate Republicans agreed to pull
the bill from the Senate Rules Committee for a floor vote. Senator
Joyce Mulliken (R-Moses Lake) and Margarita Prentice (D-Seattle)
prime sponsored an amendment to exempt used cars from the .3%
sales tax (new cars were exempted in the proposed striker). While
the Senate was under the Call of the President (Senators can’t
leave nor talk with lobbyists/constituents), Senator Mulliken
and Shirley Winsley agreed on an amendment that would allow taxing
both new/used vehicles, but leave it up to the local jurisdiction
to decide to exempt them. It passed the Senate with their amendment.
In the House of Representatives, Representative Doug Ericksen
(R-Bellingham) had an amendment to exempt all vehicles from the
.3% sales tax and it passed on a voice vote. The Senate quickly
concurred on the bill and sent the bill to the Governor for his
signature.
Sponsors: Senators Winsley, Kastama, Oke, Franklin,
Swecker, Rasmussen, Regala and
Kohl-Welles.
Status: Governor
Signed Partial Veto Effective
Date: July 1, 2003.
SSB 5117
Brief Description: A
person is guilty of a gross misdemeanor
if he or she knew or reasonably
should have known that an air bag
he or
she installs or reinstalls in a
vehicle for compensation, or distributes
as an auto part, is a previously
deployed air bag that is part of
an inflatable restraint system.
Earlier version penalized you even
if you had no knowledge there was
a faulty airbag. The penalty is
a fine of five thousand dollars
or a year in jail, or both. Whenever
an air bag is part of a previously
deployed inflatable restraint system
and is replaced by either a new
air bag that is part of an inflatable
restraint system or a nondeployed
salvage air bag that is part of
an inflatable restraint system,
the air bag must conform to the
original equipment manufacturer
requirements and the installer
must verify that the self-diagnostic
system for the inflatable restraint
system indicates that the entire
inflatable restraint system is
operating properly.
Sponsors: By Senators Eide and Kohl-Welles.
Status: Governor
Signed. Effective date 7/27/2003.
SSB 5228
Brief Description: Many
vehicles are being used as meth
labs traveling up and down I-5
and dumping the vehicle when they
are through. Legislators tried
to address this issue by requiring
the Department of Licensing to
make a notation on the titles of
contaminate vehicles or mobile
homes deemed unfit for use. The
concern with this legislation is
that if you took in a trade in
from a private party and it was
supposed to be disclosed and wasn’t
a business would be subjected to
a violation under the Consumer
Protection Act with treble damages
up to $10,000 and attorney’s
fees and costs. To protect the
auto dealer, language was added
that would have required the department
of health to determine if a car
was unfit for use and if so the
department of licensing had to
be notified by the department of
health.
When a local health official notifies the department that the
official has found a vehicle
titled under this chapter, or
a mobile home as defined in RCW 46.04.302, to be unfit for use
under RCW
64.44.030, the department shall
make a notation on the record,
if one exists, maintained by the department for that vehicle or
mobile home. The notation must
indicate that the vehicle has
been found to be unfit for use due
to chemical contamination.
The department would be required
to issue to a registered owner,
legal owner, purchaser, or lessee a unique certificate of ownership
and certificate of license registration.
Each certificate of ownership
associated with a vehicle issued
after receipt of a release for
reuse document must conspicuously
display across its front the
following words: "Decontaminated/Reusable." Each
certificate of registration associated
with the vehicle must include a notation
to the same effect. This model
is similar to homes that have
contaminated by meth labs.
Even if the vehicle was cleaned and listed as decontaminate/reusable,
the vehicle would be very difficult to sell or would dramatically
devalue the vehicle. At the very least vehicle dealers would hopefully
be protected from carrying such inventory. It is the private party
sales that will be left with these vehicles.
Sponsors: By Senators Regala, Winsley, Rasmussen,
Schmidt, Haugen, Kastama and
Franklin.
Status: Died.
ESB 5450
Brief Description: Providing
incentives to reduce air pollution
through the use of neighborhood
electric vehicles. NEVs are defined
as four-wheeled motor vehicles
that are self-propelled and electrically
powered that reach a speed between
20 and 25 miles per hour and conform
to federal regulations. Drivers
and passengers of NEVs must wear
seatbelts and comply with the state’s
child restraint system requirements.
Sponsors: Senators Horn, Jacobsen, Finkbeiner,
Eide, Swecker, Reardon, Regala,
Fairley, Kline, Fraser, Haugen, Keiser, Kohl-Welles.
Status: Governor
Signed. Effective 8/1/03.
SSB 5501
Brief Description: Directs
the Washington association of sheriffs
and police chiefs to create and
facilitate the Washington state
auto theft task force program.
Provides that, for the first violation
of RCW 9A.56.070(2), taking a motor
vehicle without permission in the
second degree, the minimum sentence
that the court shall order is thirty
days of home detention. During
testimony the proponents stated
that in the future they may want
a fee on vehicle registrations
to pay for the auto theft task
force.
Sponsors: By Senators Roach, Kastama, Brandland
and Keiser.
Status: Died.
SSB 5585
Brief Description: The
law governing transportation benefit
districts is expanded. TBDs may
only be formed in areas outside
of a county with a population
greater than 1.5 million and any
adjoining counties with a population
greater than 500,000. Jurisdictions
with authority to initiate a TBD
include counties and cities. However,
port districts and transit districts
may participate in the establishment
of a TBD. In addition to the revenue
options available to TBDs under
current law, a TBD may implement
the following revenue measures:
(1) local option sales and use
taxes; (2) local option vehicle
license fees; (3) parking taxes;
(4) local option fuel taxes; (5)
employer excise taxes; and (6)
vehicle tolls. Revenues imposed
without voter approval are subject
to voter referendum. Revenue rates,
once imposed, may not be increased.
Sponsors: Senators Swecker, Jacobsen, Oke, Spanel,
Prentice, Haugen, Rasmussen, Parlette, Mulliken, Zarelli, Hale,
Finkbeiner, Deccio and Horn.
Status: Died.
SB 5704
Brief Description: If
you have an employee on the State’s
Basic Health Care Plan, this bill
would have required your businesses
to pay an amount equal to the amount
its employees pay in premiums to
the basic health plan.
Sponsors: Senators Keiser, Fairley, Thibaudeau
and Kohl-Welles.
Status: Died.
ESB 6063
Brief Description: To
help cover the costs of regulating
business activities related to
motor vehicles under the Department
of Licensing the bill would have
increased the following fees: motor
vehicle dealer renewal fee from
$250 to $500; motor vehicle dealer
permanent subagency renewal fee
from $25 to $50; motor vehicle
dealer location change fee from
$25 to $100 and would have created
a new motor vehicle dealer name
change and address change fees
of $100.
Sponsors: Senators Horn, Haugen, Swecker, Jacobsen,
Finkbeiner, Spanel and McCaslin.
Status: Died.
HB 1002
Brief Description: The
purpose of the legislation is to
phase out mercury-added products.
A prohibition on the sale and installation
of certain mercury-containing thermostats
and motor vehicles containing an
automotive mercury switch takes
effect on January 1, 2006. Items
that are prohibited from sale are
still allowed to be transported
through the state or stored within
the state for later distribution
elsewhere. By November 30, 2003
retailers shall not knowingly sell
fluorescent lamps that contain
mercury with out labeling. The
manufacturer is responsible for
labeling fluorescent lamps.
Sponsors: By Representatives Hunt, Berkey, Cooper,
Romero, Linville, Chase, Kagi,
Wood, Simpson, Morrell, Rockefeller,
Ruderman.
Status: Governor
Signed. Effective 7/27/03.
SHB 1074
Brief Description: If
a person is arrested for driving
while their driver’s license
is suspended or revoked, the vehicle
may be impounded. However, if it
is found that the driver under
arrest is not the owner of the
vehicle; the police officer must
attempt to contact the owner before
the vehicle is impounded and may
release the vehicle to them, provided
that the subject vehicle is a commercial
vehicle. The release of a vehicle
to its owner under these circumstances
shall be allowed to occur only
one time.
Sponsors: By Representatives Bush, O’Brien,
Shabro, Kirby, Armstrong, Mielke,
Pearson, Anderson, Campbell, Miloscia, Sullivan and Carrell.
Status: Governor
Signed. Effective 7/27/03.
HB 1441
Brief Description: Exempts
the purchase or acquisition of
a new motor vehicle from retail
sales and use taxes, if the purchase
or acquisition takes place at a
dealership within the state, and
if the vehicle’s average
gas mileage is at least twice the
national average.
Sponsors: Representatives Linville, Chase, Nixon,
Sullivan, Anderson, Wood, Morrell.
Status: Died.
SHB 1445
Brief Description: Manufacturers
may own an interest in a dealership
for up to two years when the manufacturer
is assisting a new owner or a person
in a dealer ownership diversity
program to establish a dealership
and that person will make a substantial
capital investment in the dealership
within those two years. A manufacturer
may not cancel or fail to renew
a dealer’s franchise because
the dealer owns or attempts to
buy another dealership which sells
another brand of automobiles, or
because the dealer sells two or
more brands of automobiles from
the same dealership. Manufactures
may include a "right of first
refusal" in a franchise agreement.
If a manufacturer elects to assert
the right, the manufacturer must
notify the dealer within 45 days
of the dealer receiving an offer
to purchase the dealership. The
manufacturer must agree on terms
and conditions at least as favorable
as those in the offer the dealer
received, and must reimburse the
dealer and prospective purchaser
for any costs incurred. A manufacturer
may not assert the right of first
refusal if it has already approved
the buyer, or if the buyer is a
family member of the current owner
or a management employee of the
dealership. A stepchild is included
in the definition of a family member.
Dealers must submit any claims
for reimbursement for warranty
work to the manufacturer within
one year of the date the work was
performed. A dealer may submit
a claim for an incentive program
reimbursement for up to one year
after the incentive program ends.
The manufacturer must pay an incentive
program claim within 30 days of
receiving it, but may audit and
re-adjust past incentive claims
for up to one year. Washington
is established as the venue for
any franchise agreement legal actions.
Sponsors: By Representatives Conway, Chandler,
Kenney, Fromhold and Clements.
Status: Governor
Signed. Effective Date 7/27/2003.
ESHB 1705
Brief Description: The
fee imposed on the retail sale
of replacement tires is reinstated,
made applicable to used tires,
and reduced to 75 cents. The seller
must collect the fee and remit
90 percent to the Department of
Revenue. Of the 75 cents collected,
25 cents must be distributed to
the Department of Transportation
for road maintenance. Revenue is
authorized to deduct 2 percent
of the funds collected for administration
costs. The remaining amount is
deposited into the Vehicle Tire
Recycling Account, which is created
within the state treasury, and
is available to the Department
of Ecology, which must concentrate
expenditure of the funds in the
account on communities that have
the most severe problems with waste
tires.
Sponsors: By Representatives Simpson, Chandler,
Cooper, Newhouse, Skinner, Romero, Hankins, Hatfield, Mastin,
Delvin, Lovick, Campbell, Wood, Sump, Grant, Hudgins, Dunshee,
Rockefeller, Moeller and Linville.
Status: Died.
EHB 2030
Brief Description: This
was a big win for the business
community by eliminating cities
from taxing businesses outside
their city limits that conduct
business within the city limits.
Directs the department of revenue
to conduct a study of the net fiscal
impacts and report to the legislature
by December 31, 2004.
Sponsors: Representatives Kessler, Cairnes,
Talcott, McDonald, Schindler, Shabro, Pearson and Holmquist; by
request of Governor Locke.
Status: Status:
Governor Signed. Effective
Date 7/27/2003.
HB 2087
Brief Description: Modifying
the definition of "small employer" or "small
group" under chapter 48.43
RCW to make it easier to purchase
health insurance. Small employers
include self-employed individuals
or sole proprietors who derive
at least 75 percent of their gross
income from one or more trades
or businesses.
Sponsors: Representative Benson.
Status: Died.
HB 2231
Brief Description: The
transportation funding bill raises
the following taxes: Increases
the gas tax by five cents a gallon
on July 1, 2003; On July 1, 2003
imposes .3% sales tax on the sale
of a vehicle; and on August 1,
2003 imposes a 15% gross weight
fee on vehicles over 10,000 pounds.
Sponsors: By Representatives Murray, Wallace,
Cooper.
Status: Governor
Signed. Effective 7/27/03.
2004 Legislative Session
WSIADA Legislative Report
Compiled by TK Bentler and Theresa
Gamble
Legislation of interest that passed the Legislature:
HB 2453 exempts
new car dealers
from business
and occupation
tax on wholesale
sales of new
motor vehicles
to other new
car dealers making sales
of new
motor vehicles
of the same make.
ESHB 2460 authorizes health carriers to
offer a limited health plan
that features a limited schedule of covered health care services.
Health carriers are not required
to offer small employers a
benefit plan identical to the Basic
Health Plan. The definition
of small employer is changed to an establishment
employing between two and 50 employees.
However, existing groups
of one
will be grand fathered. The Governor
vetoed sections 5, 11, 13,
15, & 16. Section 16 repealed
the requirement that carriers
offer conversion health plans to group enrollees who lose coverage
in the private insurance market.
Unfortunately this is another
mandate that continues to make
health insurance expensive.
Section 5, 11, 13 & 15 would have amended related statutes
to ensure that they were consistent with
the repeal of conversion health
plans. The remaining bill goes into effect on June 10, 2004
ESHB
2474 This bill funds several
DOL projects and bills that will
have an impact on titling and
licensing procedures. Included
in the bill are funding appropriations
for: Laser Printers to be installed
in agents and subagents offices
and for a digital license plate
printing system.
SHB 2475 requires
DOL to delay renewing the vehicle
license for violators of the
Narrows toll bridge or other toll facilities,
until proof of payment is provided.
The bill allows for photo enforcement,
photos taken of the vehicle and
plate only.
SHB 2476 requires
DOL to supply owner information
for violators of the Narrow Toll
Bridge or other toll facilities, and to
a company or its agents operating
a toll facility or other applicable
authority requiring names, address
and vehicle information of motor
vehicles registered owners to
identify toll violators.
HB 2519 authorizes small counties under
90,000 to impose a new multi-year
regular property tax of 50 cents per thousand dollars
of assessed property value, subject
to approval by a super majority
of voters, for criminal justice
purposes. It also provides that
the new taxing authority is not subject to the same aggregate
rate limitation imposed on other
junior and senior taxing districts,
but that the new authority
must be reduced if the 1 percent
constitutional limitation on
regular levies is exceeded. The
Governor has signed the bill
and
it takes effect July 1.
SHB 2908
states that a physical examination
is required for vehicles declared
totaled or salvage under Washington law. The physical
examination is also required
for salvage vehicles from other
states that have not been rebuilt
or repaired within the jurisdiction
of that state. An inspection
must verify that the vehicle identification number is genuine
and agrees with the number shown
on the original documents supporting
the vehicle purchase or ownership.
Provides that a Washington state
patrol VIN specialist must ensure
that all major component parts
used for the reconstruction of
a salvage or rebuild able
vehicle were obtained legally.
Provides that a vehicle presented
for inspection must have all
damaged major component parts
replaced or repaired (including
air bags) to meet RCW and WAC
requirements before inspection
of the salvage
vehicle by the Washington State
Patrol. HB 2908 goes into effect
on June 10, 2004.
3SSB 5412 increases
civil liability for committing
identity theft in the first or
second degree from $500 to $1,000 or actual
damages, whichever is greater.
The Department of Licensing (DOL)
must implement a highly accurate
biometric fingerprint matching
system by January 1, 2006. This
voluntary system is to be used
only to verify the identity of an applicant for
renewal or issuance of a duplicate
license or identicard. The Governor
signed the legislation and takes
effect on July 1, 2004.
SB 6141 exempts vehicles carrying exempt
licenses from property
taxation. It will become effective
on June 10, 2004.
SB 6614 removes
the $50-a-day minimum from a
court judgment for loss of use
of the vehicle during an improper impound. Signed
by the Governor and becomes effective
on June 10, 2004.
SSB6676 allows
customers the option to retain
their current standard issue license plates
(same number/letter combination)
on the sale or transfer of a
vehicle and transfer that plate
to another eligible vehicle requiring
the same plate type. Also increases
the current five dollars transfer
plate fee to ten dollars. Effective
June 10, 2004.
Other legislation of interest
to WSIADA that did not pass included:
HB
2638 provides that, for purposes
of taxes imposed under RCW 82.14.030
only, a retail sale consisting solely of the sale of a motor
vehicle shall be deemed to have
occurred at the address of the
person who is to be the registered
owner of the vehicle. This bill
did not pass.
HB 2656 extends
from three to five days the period
before a dealer must, without
renegotiation, accept or reject a contingent
offer to purchase or lease a
motor vehicle. This bill did
not pass.
SB 6698 allows an accrual
basis taxpayer to use the cash
basis method for excise tax purposes
upon a showing of substantial
hardship. This bill did not pass.
EHB
1615 would have required vehicle
sound system components, such
as stereo speakers, to be securely fastened to the vehicle.
Failure to do so was a traffic
infraction. This bill did not
pass.
HB 2759 declares that "residence address" means
the street address of the primary
residence of a person within the
state of Washington. This bill
did not pass.
HB 3097 provides
that, for consumer protection
purposes, vehicle ownership documents
should disclose whether motor vehicles have been
previously used under circumstances
that allowed the vehicle to be
operated by multiple drivers
or damaged in a collision. This
bill did not pass.
HB 1868/HB
1979/SB 5791/SB 5876/SB 6122 and SB
6231 would have prohibited
smoking in public places to varying
degrees…local option or statewide. One of the
bills would have prohibited anyone
from smoking on your car lot
or building. This bill did not pass.
ESHB 2021 required that when
a vehicle is sold between two
private parties, the owner must
disclose to the buyer, if the
vehicle was originally equipped
with air bags and if so, if it
has the same number of operational
air bags as was originally equipped.
This bill did not pass.
HB 2531 would let Pierce, King and Snohomish
counties impose a regional vehicle
excise tax and a gas tax as high as six
cents a gallon—with voter approval—to
pay for road, light rail and
transit projects in the region.
This bill did not pass.
SHB 2941 authorizes cities that contain
a city transportation
authority to enforce a special
motor vehicle excise tax levied
by the city transportation authority.
This bill did not pass.
HB 3044 provides that, when the department
sends a vehicle license renewal
notice, it shall also provide notice of the requirement
for proof of meeting the financial
responsibility requirements in
order to renew the license. This
bill did not pass.
SSB 6001 authorizes
a combination consisting of a
motor vehicle weighing more than
four thousand pounds unladen, a travel trailer,
and a trailer designed for hauling
a boat, snowmobiles, or nonhighway
vehicles. This bill did not pass.
ESB
6063 fees are increased to cover
the cost of regulating business
activities related to motor vehicles: RTTO annual tow
truck fee; motor vehicle dealer
renewal fee; motor vehicle dealer
permanent subagency renewal fee;
motor vehicle dealer name change
and address change fees; vehicle
manufacturer original license
fee; transporter original license
and renewal fees; vehicle wreckers
original license and renewal
fee; and hulk hauler original
license and renewal fees. This
bill did not pass.
SB 6116 states
the Washington State Auto Body
and Glass Repair Customer Bill
of Rights prohibits insurers from requiring that
a motor vehicle be repaired at
a specific repair shop or auto
glass dealer. An insured claimant
may expressly request a recommendation
regarding where to go for repairs.
Insurers cannot limit
or discount the reasonable repair
costs based on charges that
would have been incurred at the
insurer's preferred shop instead.
This bill did not pass.
SB 6151 requires that headlights, and
all other lights required for
different classes of vehicles, must be on when windshield wipers
are used. This bill did not pass.
SSB
6400 states that a public
facilities district created by
a city, town, or county after
July 1, 2005, but before June
30, 2007, may impose a sales
and use tax for the construction,
improvement, or rehabilitation
of a regional center. This bill
did not pass.
SB 6590 would have
required installation of seat
belts on school buses. This bill
did not pass.
2005
Legislative Session
WSIADA Legislative Report
The Washington Legislature concluded its 105-day session April
24 by passing new taxes and other
bills necessary to implement a state record-high budget. They
raised taxes even though state
revenue increased 7% for the
next biennium.
In 1993 voters passed I-601 that required a 2/3
majority vote of the Legislature
to increase any taxes or fees.
In order for the Democrat majority to raise taxes
this session they first had to
amend by simple majority Initiative 601. The Democrat majority
in
the House and Senate did this
by passing SB 6078 and it was
then signed by Governor Gregoire.
Senate Bill 6078 allowed for
simple-majority tax votes instead
of 2/3 approval and it changed
the spending growth limit to
match a 10-year-average personal
income growth rather than population
growth and inflation. (The Washington
State Farm Bureau is suing the
State alleging that passage of
SB 6078 was unconstitutional.) The simple-majority change was
followed by excluding Republicans
from the operating budget negotiations
and passing new taxes generally on a party-line
vote.
Outcome of the changes provided
for passage of HB 2314 increasing “sin taxes” on smoking
and liquor along with taxing
extended warranties (removing
the sales tax exemption) and reinstituting increased vehicle tabs
also abolished by a previous
initiative. Car tabs will rise
by between $10 and $30 a year depending
on vehicle weight.
These taxes
were topped by a four-year, 9.5-cent
per gallon gas tax in the transportation
bill after Gov. Gregoire threatened
the House with a budget veto
if it did not support the tax.
This 16-year transportation package
is estimated at $8.5 billion
with billions going to the Alaskan
Way Viaduct, ferries, rail and
mass transit projects. Three
cents of the 9.5 cents goes to
the Alaskan Way Viaduct alone.
Vehicle
changes will be felt by all Washington
residents. Estimated numbers
by legislators were $60 to $170 more per vehicle
per year in gas tax and car tabs,
but it would seem that some will
see far higher costs than that.
These tax increases also were accompanied by ESB 6096 reinstituting
the “death tax” on
estates, a measure abolished
at the federal level.
Besides
all the taxes, the most disappointing
outcome this session was the House and Senate Transportation
Committees’ lack of interest (not even a courtesy public
hearing) on requiring tow truck
operators to notify lien holders (auto dealers) by certified mail
when an authorized vehicle has
been impounded. The problem WSIADA
ran into was that the tow truck operators inundated legislators
with opposition. Now is the time
to sit down and write or call
your legislators and ask for their support for HB 1111 next session.
If the legislators are members
of the Senate or House Transportation
Committees ask them to request that the chairperson hear the bill
and take executive action on
the legislation next year.
Once again the “Bushing Bill” (HB 1827) didn’t
gain traction this session and died in the House Rules Committee.
The watered down version included the following:
- Applied when the contract was signed by the buyer or lessee;
- Didn’t affect the right of a dealer to take legal
action against a buyer or lessee who is not truthful about
income, employment, or debt in applying for a financing
or lease (unless dealer was involved in deception); and
- Applied when dealer was seeking financing from a bank
or other financial institution or the dealership.
The RV dealers introduced HB
2056 that would have allowed
them to hold RV shows with
greater restrictions than auto
dealers currently have. Unfortunately
their
bill brought auto dealers into their legislation. The legislation had to be
redrafted and redrafted until it was clear that auto dealers were not part
of their more
restrictive RV dealer show legislation. The bill died in the Senate Transportation
Committee.
House Transportation Chairman Ed Murray (D-Seattle) introduced
HB 2248 that would have extended
Seattle’s monorail tax
to new cars. It is estimated
the bill would have “added
$146 to the cost of a new Toyota
Echo, $265 to the cost of a
new Hyundai Sonata, $515 to
a new 6-cylinder Ford Explorer
and $765 to the
cost of a Cadillac Escalade”. (Seattle P-I on 3/1/05) The bill died in
his Committee.
Both SB 6016 and HB 1989 would have allowed local option funding
for transportation projects. Both bills had an entrée of tax options
for local government that would have added to the cost of vehicles and created
differential taxes
throughout the state. Both bills died in their respective policy committees.
SB
5710 & HB 1710 would have prohibited the sale of all new vehicles with
automotive mercury switches by January 1, 2006. Auto Manufacturers strongly
opposed this legislation. SB 5710 passed the Senate on a 35-13 vote and
died on the House
Floor Calendar.
SB 5181 by Senator Rasmussen (D-Spanaway) will require all
used vehicle parts to have original invoices from a vehicle wrecker or
a comparable
business
in the jurisdiction outside Washington State where the major component
part was
purchased. If it was purchased from a private individual it must have
title to the vehicle from which
the parts were taken, except for car collectors.
The bill
of sale from a private individual must be notarized. The law becomes
effective on 7/24/05.
SB 5177 by Senator Dan Swecker (R-Chehalis)
will allow Transportation Benefit
Districts to impose an annual vehicle fee, not to exceed
one
hundred dollars
per vehicle registered in the district as long as the voters within the
TBD approve the annual vehicle fee by a majority of votes at a general
or special
election.
SB 5177 has been delivered to the Governor for her consideration.
Future
changes in vehicle costs also
are in store via ESHB 1397, which
adopts the California emissions standards, the toughest in the
world.
But the effective
date of this was made dependent on Oregon’s adoption and implementation
year… probably 2009 or 2010. Some legislators believe parts of
the bill are illegal and vulnerable to court challenges.
Passage of EHB
1241 provides that a motor vehicle subject to initial or renewal registration
must not be registered to a person unless the
person
has an
unexpired Washington State driver's license. They are exempt from this
requirement if
they certify that they do not operate a motor vehicle on the public
roads or they
are already exempt under current law. This certification is one more
document that auto dealers will be required to have the customer sign
before the
sale of a vehicle. Failure to register a vehicle in Washington before
operating on the highways is changed from a misdemeanor to a traffic
infraction fine
of $529.
For shared or joint ownership, the Department of Licensing (DOL) will
establish procedures to verify that all owners meet these requirements.
The DOL may
adopt rules necessary to implement these provisions, where a person
may be
exempt
if they show evidence satisfactory to the DOL that they have a valid
and compelling reason for not being able to meet these requirements.
A person
falsifying residence
is guilty of a gross misdemeanor punishable by a fine of $529. This
applies to
registrations due or that become due on or after January 1, 2006.
There
is a saying in Olympia that “No bill is dead until Sine
Die”.
SB 5515 never passed the Senate, but on the final days of the session
it was brought to the Senate
Floor Calendar for Second Reading. SB 5515 would have banned
the sale of fire retardant materials (PBDEs). This legislation included
car materials. All session the
WSIADA lobbyist watched this bill to make sure that it included
an exemption for vehicles. When amendments surfaced by Senate Republicans
an exemption was not included;
but, the environmentalists’ striking
amendment did exempt cars. Fortunately
the bill died on the Senate Floor Calendar.
In the area of employment
law,
HB 1625 has been signed by the
Governor. An employer who discloses
information about a former or
current employee to
a prospective
employer or employment agency at the request of the employer or employment
agency is presumed to be acting in good faith and is immune from civil
liability for
the disclosure if the information relates to the following: (1) the
employee's ability to perform his or her job; (2) the employee's diligence,
skill,
or reliability in carrying out job duties; or (3) illegal or wrongful
acts committed
by the
employee when related to job duties. An employer is advised to keep
a written record of the identity of persons or entities to whom the
disclosure
is
made for a period of two years. If a written record is made, the record
must be
included in the employee's personnel file, and the employee has a right
to inspect the
record.
The bill that drew the most fire from the business community
was EHB 2255 changing the Unemployment
Compensation reform of two years
ago to allow
for two-quarter
wage averaging instead of four-quarter averaging. The change returns
$100-200 per week in benefits to seasonal workers. Some concessions
were made to
agriculture and the issue is to be reconsidered again in two years.
In the meantime some
industries will be compelled to pick up the socialized cost for other
industries.
Both Minimum Wage reform (SB 5747) and “Tip Credit” (SB
5774) proposals went down in defeat, failing to make it out of the
Senate Labor and Commerce.
Major employers who employ 100 or more
employees in the state's 10 largest
counties are required to implement
commute trip reduction programs. Under
the program,
employers are allowed a business and occupation or public utility
tax credit if they provide financial incentives to their employees
for
ride sharing
in car pools, using public transportation, using car sharing, and
non-motorized commuting
(CTR incentives). ESB 6003 was passed stating that no tax credit
deferrals may be used after June 30, 2008.
Several industrial insurance
bills were sent to the Governor.
SHB 1731 increases workers' compensation benefits if the Social
Security
Administration
makes a retroactive reduction in a worker's federal social security
benefits for periods when time-loss or pension benefits were also
paid to the
worker and for which L&I or self-insurer also offset benefits
to account for social security benefits.
SHB 1856 states that beginning
in 2006, the State Auditor must conduct
annual audits of the state fund, which must be coordinated with
other L&I audits
that the State Auditor conducts. EHB 1917 relieves some of the business
community’s
concerns relative to rate setting prior to the 2006 audit. This says
that L&I,
in setting industrial insurance premium rates, must set rates designed
to attempt to limit fluctuations in premium rates, in addition to
maintaining actuarial
solvency of the medical aid and accident funds. Finally, SHB 1918
says L&I
must develop an alternative reporting system where an injured worker
reports an accident directly to his or her employer. L&I is also
to do an outreach campaign, educating both workers and employers
about the importance of prompt
reporting of injuries.
SB 5793 allowing employers and employees in
a workers’ compensation claim
to enter into a final settlement agreement at any time rather than
running through a long line of appeals and litigation failed to
make it out of Senate Labor & Commerce
Committee. Also dead in committee was SB 5825 which would have
eliminated the ability of injured workers to apply for an increase
in their
rate of time-loss
compensation or pension benefits for a “change of circumstances” such
as a new child in the family.
Fortunately, the Democrats’ attack
on the Building Industry of Washington's retro program failed
this year. They introduced SB 5842/HB 1875 adding bureaucratic
and costly restrictions (politically called accountability measures)
to all retrospective rating programs run by private organizations
and associations, like the new car
dealers program. Retro programs allow employer groups to get
a
refund from L&I
premiums if they keep their worker injuries and time loss low.
The Senate approved but the House declined a family leave insurance
program in SB 5059 that would have taxed employees two cents
per hour. Those
receiving benefits
would have been able to draw $250 per week for up to five weeks.
It would have been mandatory for companies of 50 or more employees
and
optional
below that.
Also dead was SB 5637 requiring large firms to pay
a fee for all employees and beginning
January 1, 2006, the fees collected
would
be used to
cover 80 percent
of the cost of Basic Health Plan coverage for any employee
who works at least 86 hours per month for an employer who pays
the
fee, and
who chooses
to obtain
such coverage. A low wage employee of a small employer not
paying the fee could obtain assistance through the BHP to pay
for his
or her share
of
the premium
for health insurance provided by his or her employer. Small
employers not paying the fee also could apply for group coverage
and receive
a subsidy
through the
BHP. Cost to employers was estimated at $1.6 billion.
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