2022 Legislative Update: Session Wrap Up

Bellevue Chamber of Commerce End of 2022 Session Report

At 11:35pm on March 10th, the legislature adjourned the 2022 legislative session, Sine Die. The 2022 Washington State legislative session was a short session, which means it lasted for just 60 days and moved at a rapid pace as legislators worked diligently to pass bills, budgets, and end on time. The session adjourned on time for the fifth year in a row.

Given the ongoing COVID-19 pandemic and the omicron surge that intensified right as the 2022 session was about to start, the 2022 session was convened in a hybrid fashion. Committee hearings, stakeholder, and constituent meetings with legislators all took place through virtual platforms, while floor debates and votes were conducted in a hybrid manner with some legislators in-person (they had to be masked and take regular COVID tests) and other legislators participating through virtual platforms. In the latter half of session as the omicron surge eased, more legislators were permitted in-person and the House and Senate galleries were eventually opened to the public.

A total of 303 bills passed the legislature during the 2022 session. The average number of bills passed in a short session is about 315. Some of the main issue areas this session included police reform, behavioral health, housing and homelessness, economic recovery, and stabilization efforts (such as K-12 stabilization).

Bills that passed the legislature now go on to the Governor for consideration. Bill signing schedules and the list of bills that have been signed can be found here. As a reminder, any bill sent to the Governor’s desk within the last five days of session has 20 days (not counting Sundays) for him to take action. To date, the Governor has signed 64 bills into law and at this point no bills have had a partial or full veto.

In addition to the work done to pass policy bills, this session also included the business of writing the 2022 supplemental operating, transportation, and capital budgets. Given the extensive resources available due to a higher than projected quarterly economic & revenue forecast, the budgets were much larger than typical for a supplemental year. The operating and capital budgets made historic levels of investments for a supplemental year. And a new 16-year transportation revenue package also passed and provided significant increases in transportation programs and projects.

Operating Budget

The supplemental budget increases spending by $3.2 billion to address educational funding needs, struggles in the behavioral health, long-term care, and developmental disability workforces, and to expand access to childcare. The supplemental spending increases the two-year operating budget to $64.1 billion. It also included transfers of $2 billion to transportation and $737 million to the capital budget. Some of the large areas of investment include:

• K-12 Education: $808 million
• Children, Youth & Families: $245 million
• Homelessness & Housing: $318 million
• Public Health & Health Care: $837 million
• Economic Supports & Human Services: $211 million
• Behavioral Health: $277 million
• Long-Term Care and Developmental Disabilities: $1.2 billion
• College and Workforce Development: $283 million
• Public Safety, Legal Aid & Corrections: $215 million
• Natural Resources: $620 million

In addition, the operating budget transfers $2 billion to the state transportation budget to fund Move Ahead WA transportation package, and $650 million is transferred to the state Capital Budget for housing, homelessness, and other construction programs.

The budget includes no new taxes and retains $4.2 billion in reserves over the 4-year outlook period.

Operating Budget Documents:

• Budget Bill
• Summary Highlights (Overview, Four-Year Outlook, Revenue Bills, Fund Transfers)
• Statewide Summary & Agency Detail

Capital Budget

The final 2022 supplemental capital budget spends $1.5 billion in total funds. The capital budget was focused on investments in projects that create jobs and stimulate economic growth, emphasizing racial equity in all parts of the capital budget, and making sound investments with one-time General Fund and federal Infrastructure Investment and Jobs Act (IIJA) money.

The largest fund sources for the capital budget are:

• $107.3 million in available bond capacity
• $650 million from a General Fund-State transfer into the Capital Community Assistance Account (CCA)
• $328.6 million in IIJA grants
• $232.8 in Water Pollution and Drinking Water Assistance Accounts
• $120.7 million from the Public Assistance Account
• $63 million in all other

Some of the key capital budget investments are in the areas of:

• Housing: $440 million
• Water: $251 million
• Infrastructure: $200 million
• Broadband: $100 million
• School Seismic: $100 million
• Behavioral Health and Crisis Stabilization: $98 million
• Natural Resources: $271 million
• Local & Community Projects: $64 million

Capital Budget Documents:

• Capital Budget Bill (SB 5651) - budget bill
• Highlights (highlights, balance sheet, some project lists)
• Additional Capital Budget Documents (links to all project lists can be found here)

Transportation Budget

Move Ahead WA Transportation Proposal

The Legislature passed a new 16-year $16.9 billion transportation funding package funded from Washington’s new carbon-pricing system, transfers from the operating budget, federal dollars, fee increased and funding from the public works trust account. The Move Ahead WA transportation package makes large investments in highways, ferries, transit, and bike and pedestrian corridors.

Notable investments include:

• $5.4 billion toward carbon reduction and multimodal
• $3 billion for maintenance and
• $3 billion for public
• $2.4 billion to fund fish passage barrier
• $1.3 billion in active transportation, including Safe Routes to School and school-based bike programs.
• $836 million to build four new hybrid-electric
• $50 million for walking and biking infrastructure in underinvested communities, and more.

Full revenue and project lists can be found here.

2022 Supplemental Transportation Budget

The 2022 supplemental transportation budget adjusted the original $11.8 billion appropriation by $200 million. The $200 million in savings came from vacancy related savings across all transportation departments and shifting funding of projects to the Move Ahead WA transportation package.

Budget and project lists can be found here.

Stand Alone Budget Items That Were Funded
Budget items are sorted by agency

2022 SUPPLEMENTAL OPERATING BUDGET

Homeless & Housing

Department of Commerce

• Right of Way Response & Outreach: $45.05 million total
  Funding is provided to administer grants to local governments and nonprofits for costs to transition individuals currently living on public rights of way to permanent housing.
  Funding is also provided for regional coordination staffing to work with state agencies, local governments, and other community partners; and staffing for program oversight and management. (General Fund-State; Coronavirus State Fiscal Recovery Fund-Federal) (Custom)
• Homeless Service Provider Stipends: $55 million total
  Funding is provided for stipends to address immediate economic needs for certain employees of entities with whom state agencies or local governments grant or subcontract to provide homeless services. Stipends are limited to employees making 80 percent or less of the area median income. (Coronavirus State Fiscal Recovery Fund- Federal) (One-Time)
• Foreclosure Assistance: $4.5 million GFS
  The 2021-23 budget assumed the use of $13.0 million in federal funds provided under the American Rescue Plan Act (ARPA) Homeowner Assistance Program for legal foreclosure assistance. Federal guidance caps the amount of federal funds that may be used for this purpose at $8.5 million. State funding is provided to maintain a total funding amount of $13.0 million for this purpose. (General Fund-State) (One-Time)
• Eviction Prevention Rental Asst.: $45 million total
  Funding is provided for the Eviction Prevention Rental Assistance Program established in RCW 43.185C.185. (Coronavirus State Fiscal Recovery Fund-Federal) (One-Time)
• Utility Assistance: $100 million total
  Funding is provided for grants to public or privately-owned utilities to address electric, natural gas, water, sewer, and garbage utility arrearages for low-income households. (Coronavirus State Fiscal Recovery Fund-Federal) (One-Time)

Land Use

Department of Commerce

• Greenhouse Gases/Building: $3.2 million
  Funding is provided to implement the provisions of Senate Bill 5722 (greenhouse gases/buildings). (General Fund-State) (Custom)
• GMA: Local Implementation Grants: $20 million
  Funding is provided for grants to local governments for costs to update and implement comprehensive plans as required under the Growth Management Act, including for implementation costs relating to Chapter 254, Laws of 2021 (E2SHB 1220). (General Fund- State) (Ongoing)
• GMA: Middle Housing Grants: $7.5 million
  Funding is provided for grants to local governments amending their comprehensive plans in the 2024 cycle who take certain actions regarding zoning to allow middle housing types on at least 30 percent of lots currently zoned for single-family residences. (General Fund- State) (Custom)
• GMA: Cost Evaluation/Jurisdictions: $250,000
  Funding is provided for Commerce to conduct an evaluation of the costs for cities and counties to review and revise their comprehensive plans as required under the Growth Management Act, with a report due to the Legislature by December 1, 2022. (General Fund-State) (One-Time)
• Affordable Housing Needs Assessment: $250,000
  Funding is provided for Commerce, in coordination with the Affordable Housing Advisory Board, to produce the Five-Year Housing Advisory Plan required under RCW 43.185B.040. (General Fund-State) (One-Time)

Economic Development

Department of Commerce

• Small Business Resiliency Network: $15 million
  Funding is provided to expand the state Small Business Resiliency Network and to establish a Credit Repair Pilot Program. (Coronavirus State Fiscal Recovery Fund-Federal) (One-Time)
• Small Business Development: $1 million
  Funding is provided for a business center that provides confidential, no-cost, one-on-one, client centered assistance to small businesses. (General Fund-State) (Ongoing)
• Small Business Disaster Recovery: $20 million
  Funding is provided to administer a small business disaster recovery financial assistance program. Of the total funds, $10.0 million must be provided to businesses located in northwest Washington. (Coronavirus State Fiscal Recovery Fund-Federal) (One-Time)
• Small Business Innovation Fund: $34.5 million
  Funding is provided to establish a Small Business Innovation Fund to award funding to non-profit organizations with relationships with small businesses for the purposes of encouraging small business recovery, startups, and growth. (Coronavirus State Fiscal Recovery Fund-Federal) (One-Time)

2022 SUPPLEMENTAL TRANSPORTATION BUDGET

The following projects are funded in the 48th district under the Move Ahead WA Transportation Proposal:

• I-405/SR 167 Corridor Improvements: $380 million
• Rapid Flashing Beacon on State St at 7th Avenue S: $150,000
• Eastrail Multi-use corridor through Bellevue: $18 million
• Mountains to Sound Greenway Trail “Bellevue Gap”: $6.9 million
• Sidewalk on E Side of 116th Ave NE from NE 73rd to North of NE 75th Place: $500,000
• SR 520 & 148th Ave NE bicycle/pedestrian crossing: $8 million
• The Transportation Commission is required to review toll revenue performance on the I- 405/SR 167 corridor and adjust I-405 tolls as appropriate to increase toll revenue to provide sufficient funds for payments of future debt.

Priority Bills That Passed
If there was a companion bill, the bill that passed is listed first. Under status, some bills don’t specify that the Governor has signed yet, which just means that bill is still awaiting signature.

ESHB 2037 - Modifying the standard for use of force by peace officers.
Prime Sponsor: Rep. Goodman
Status: Passed Legislature

Summary of Original Bill: Modifies the standard for use of physical force by peace officers by allowing an officer to use physical force, subject to the requirement to exercise reasonable care, to the extent necessary to: protect against a criminal offense when there is probable cause that the person has committed or is committing the offense; prevent a person from fleeing a temporary investigative detention; or take a person into custody when authorized or directed by statute. Defines "physical force," "deadly force," "necessary," and "totality of the circumstances" with respect to the standard for use of physical force and deadly force by peace officers.

Summary of Latest Version of Bill: The substitute bill defines "physical force" and modifies the definition of "necessary" by specifying that, under the totality of the circumstances, the type and "amount" of force must be reasonable to effect the legal purpose intended (rather than the type and "degree" of force must be reasonable to effect the legal purpose intended). The substitute bill also authorizes a peace officer to use physical force to the extent necessary to protect against a criminal offense when there is probable cause that the person is about to commit the offense (in addition to when there is probable cause that the person has committed or is committing the offense). The substitute bill authorizes a peace officer to use physical force to the extent necessary to prevent a person from fleeing or stop a person who is actively fleeing a lawful temporary investigative detention, provided that the person has been given notice that he or she is being detained and is not free to leave (rather than authorizing a peace officer to use physical force to the extent necessary to prevent a person from fleeing a temporary investigative detention).

HB 1719 - Concerning use and acquisition of military equipment by law enforcement agencies.
Prime Sponsor: Rep. Bronoske
Status: Passed Legislature

Summary of Original Bill: Removes the prohibition on the use and acquisition of ammunition of .50 caliber or greater by law enforcement agencies. Narrows the prohibition on the use and acquisition firearms of .50 caliber by law enforcement agencies to apply only to rifles of .50 caliber or greater.

Summary of Latest Version of Bill: No changes have been made to the bill.

ESSB 5758 – Condo conversions
Prime Sponsor: Sen Gildon
Status: Passed Legislature

Summary of Original Bill: Requires the Housing Finance Commission to implement a condominium conversion tenant-to-homeowner program focused on opportunities for first-time homeownership and designed to assist tenants in multifamily buildings that are being converted to condominium ownership. Requires the Affordable Housing Advisory Board to review and report on certain issues associated with the conversion of multifamily buildings to condominium ownership.

Summary of Final Version of Bill: Expands membership of the AHAB to include a representative of a condominium association or common interest community association.

Budget Impact:

• Department of Commerce:
  Condominium Conversions: $200,000
  Funding is provided to implement the provisions of Engrossed Substitute Senate Bill 5758 (condominium conversions). (General Fund-State) (One-Time)

HB 1769 – Concerning community municipal corporations
Prime Sponsor: Rep Duerr
Status: Passed Legislature

Summary of Original Bill: Provides that the terms of existence of a community municipal corporation is four years after its authorization, or 30 days after the effective date of the bill, whichever is sooner. Repeals provisions allowing the creation of a community municipal corporation following annexation of an unincorporated area or the consolidation of two or more cities. Repeals provisions related to the membership and powers of the community councils of community municipal corporations as of January 1, 2023.

Summary of Final Version of Bill: Same as above.

E2SHB 1241 – Planning under the growth management act.
Prime Sponsor: Rep Duerr
Status: Passed Legislature

Summary of Original Bill: Increases review and revision cycle for comprehensive plans and Shoreline Master Plans from eight to 10 years. Requires cities and counties with more than 7,500 population to produce an annual work program for implementing the comprehensive plan. Requires counties and cities to submit an implementation progress report with certain required information to the Department of Commerce five years after reviewing and revising a comprehensive plan

Summary of Final Version of Bill: Increases the review and revision cycle for comprehensive plans under the Growth Management Act from eight to ten years. Extends the deadline for the next comprehensive plan update for King, Kitsap, Pierce, and Snohomish counties, and for the cities within those counties, from June 30, 2024, to December 31, 2024. Requires certain counties and cities to submit an implementation progress report with certain required information to the Department of Commerce five years after reviewing and revising a comprehensive plan, and, if any action needed to implement changes in the most recent comprehensive plan update has not occurred at the time of the report, to create a work plan to take any needed actions within two years.

SHB 1732 – Delaying the implementation of the long-term services and supports trust program by 18 months.
Prime Sponsor: Rep Sullivan
Status: Passed Legislature

Summary of Original Bill: Delays the collection of premium assessments under the Long-Term Services and Supports Trust Program (Trust Program) until July 1, 2023. Delays the availability of approved services under the Trust Program until July 1, 2026. Allows persons born before January 1, 1968, who do not meet the 10-year minimum for paying Trust Program premiums to receive partial benefits based on the number of years of premium payments.

Summary of Final Version of Bill: Delays the start date for the premium assessments under the Long-Term Services and Supports Trust Program (LTSS Trust Program) from January 1, 2022, to July 1, 2023. Delays the date benefits become available under the LTSS Trust Program from January 1, 2025 to July 1, 2026. Allows individuals born before January 1, 1968, who do not meet the LTSS Trust Program's vesting requirements, to receive partial benefits based on the number of years of premium payments. Requires employers to refund employees any LTSS Trust premiums collected before July 1, 2023.

ESHB 1733 – Establishing voluntary exemptions to the long-term services and supports trust program for certain populations.
Prime Sponsor: Rep Paul
Status: Passed Legislature

Summary of Original Bill: Establishes exemptions from the payment of premiums under the Long-Term Services and Supports Trust Program for certain veterans, spouses and registered domestic partners of military service members, nonimmigrant temporary workers, and employees who work in Washington and maintain a primary residence outside of Washington.

Summary of Final Version of Bill: Same as above.

Bills That Did Not Pass
If there was a companion bill, the bill that made it furthest in the process is listed first and the summary of the latest version is based on the one that made it furthest in the process.

E2SHB 1099 – Improving the state's climate response through updates to the state's comprehensive planning framework.
Prime Sponsor: Rep Duerr
Status: Senate Passed Conference Report (Dead)

Summary of Original Bill: Adds a goal of climate change mitigation to the listed goals of the Growth Management Act (GMA). Adds a climate change and resiliency element to the list of elements that must be included within the comprehensive plans that certain counties and cities must adopt under the GMA. Requires the climate change and resiliency element of the comprehensive plan of certain counties and cities to result in reductions in greenhouse gas emissions and vehicle miles traveled within the city or county adopting the comprehensive plan. Requires the climate change and resiliency element of the comprehensive plan of certain counties and cities to address the adverse impacts of climate change on people, property, and ecological systems. Requires the Department of Commerce (Commerce), in consultation with other state agencies, to publish guidelines that specify proportionate greenhouse gas emissions reductions associated with passenger cars and light trucks that must be made in certain areas of the state in order to achieve statewide greenhouse gas emissions reductions set forth in state law. Specifies the process by which the greenhouse gas emissions reduction sub- element of the climate change and resiliency element takes effect. Requires Commerce to adopt guidance that creates a model climate change and resiliency element. Requires certain Regional Transportation Planning Organizations to adopt a regional greenhouse gas emissions and vehicle miles traveled reduction plan. Requires the Department of Ecology to update its Shoreline Master Program guidelines to require Shoreline Master Programs to address the impact of sea level rise and increased storm severity.

Summary of Final Version of Bill: Adds a climate change and resiliency goal to the list of goals of the GMA. The land use element of comprehensive plans is amended to provide that it should: give special consideration to achieving environmental justice; and reduce per capita vehicle miles traveled within the jurisdiction. A climate change and resiliency element is added to the list of elements that must be included in a comprehensive plan adopted under the GMA. The climate change and resiliency element must be designed to result in reductions in overall greenhouse gas emissions and that must enhance resiliency to and avoid the adverse impacts of climate change. Commerce, in consultation with specified state agencies, must publish guidelines that specify a set of measures that counties and cities have available to them to take through updates to their comprehensive plans and development regulations that have a demonstrated ability to reduce GHG emissions in order to achieve statewide GHG emissions reductions required by the state Clean Air Act Updates to guidelines must include an evaluation of the impact that locally adopted climate change and resiliency elements have had on local GHG emissions and per capita vehicle miles traveled reduction goals, as well as on zoned housing capacity. Updates must also include estimated impacts on future reduction goals, as well as impact on zoned housing capacity. Provides that Commerce may include recommendations for what additional measures cities and counties should take to make additional progress on local reduction goals, including any measures that increase housing capacity and middle housing capacity within UGAs. Planning counties and cities are authorized to establish real estate excise tax (REET) density incentive zones. A REET density incentive zone is an area within an urban growth area where the city or county adopts zoning and development regulations to increase housing supply by allowing construction of additional housing types as outright permitted uses. Upon establishing an incentive zone, the local government receives a portion of the state REET imposed for sales of qualified residential dwelling units within the incentive zone.

ESHB 1660 – Concerning accessory dwelling units.
Prime Sponsor: Rep Shewmake
Status: S 2nd Reading (Dead)

Summary of Original Bill: Prohibits an owner-occupancy requirement from being imposed on a lot with an accessory dwelling unit unless an accessory dwelling unit on the lot is being used for short-term rental, and sets deadlines for local jurisdictions to comply with this prohibition.

Summary of Latest Version of Bill: Requires cities and counties fully planning under the Growth Management Act to allow for the construction of accessory dwelling units (ADUs) within urban growth areas (UGAs), and prohibits such cities and counties from imposing certain ADU regulations, by the time of their next comprehensive plan update. Removes the exemption allowing fully planning cities to require off-street parking for ADUs within a quarter-mile of a major transit stop under certain circumstances.

Prohibits governing documents applicable to homeowners' associations, condominium associations, associations of apartment owners, common interest communities, and restrictive covenants created after the effective date of the act from prohibiting ADUs within UGAs.

SHB 1782 – Creating additional middle housing near transit and in areas traditionally dedicated to single-family detached housing.
Prime Sponsor: Rep Bateman
Status: H Rules (Dead)

Summary of Original Bill: Requires cities planning under the Growth Management Act to authorize middle housing types or average minimum densities near transit based on the population of the city. Requires the Department of Commerce to provide technical assistance to cities authorizing middle housing types or average minimum densities and to develop model middle housing ordinances.

Summary of Latest Version of Bill: Requires cities planning under the Growth Management Act to authorize middle housing types or average minimum densities based on the population of the city. Requires the Department of Commerce to provide technical assistance to cities that authorize middle housing types or average minimum densities and to complete an evaluation on the costs to revise comprehensive plans.

Requires the land use element of the comprehensive plan to include a built environment subelement. Adds additional requirements to the housing element of the comprehensive plan related to increased economic and racial integration, antidisplacement measures, and middle housing. Adds additional requirements to the land use and capital facilities plan elements related to middle housing. Allows the Department of Commerce to grant cities an implementation timeline extension when certain infrastructure deficiencies are identified. Precludes new declarations and governing documents of a common interest community or homeowners' association within a city subject to the middle housing and density requirements from prohibiting such middle housing and density requirements.

E2SSB 5155 – Concerning prejudgement interest.
Prime Sponsor: Sen Kuderer
Status: H 2nd Reading (Dead)

Summary of Original Bill: Starts interest running on a judgment for tortious conduct, other than medical malpractice claims, from the date on which the cause of action accrues. Starts interest running on a judgment for a medical malpractice claim from the date of written notice of the claim to the insurer or health care provider, or the date of the filing of the civil action, whichever occurs first.

Summary of Latest Version of Bill: Applies prejudgment interest to judgments founded on the tortious conduct of public agencies, individuals, and other entities by modifying interest accrual date from the date of entry of judgment to the date the cause of action accrues. Provides that judgments founded on tortious conduct that occurred while plaintiff was a minor bear interest from the date the action is commenced or the date the minor turns 18 years old, whichever is earlier. Limits prejudgment interest to arbitration awards and judgments entered following trial of the matter.