2009 Legislative Session Summary
During the 105-day legislative session, 2,578 bills were introduced, of which 582 were passed by the legislature. Below is a summary of the issues of most importance to AELC.
LIABILITY
Residential Construction Liability (SHB 1393/SSB 5895 – DIED) AELC Rating: -H. These bills address residential construction liability through statutory warranties, alternative dispute resolution, increased consumer education, and licensing of contractors and tradesmen. Each bill would have created very damaging liability and insurance issues for design professionals doing residential design, and the final version of SHB 1393 included a provision removing the six-year builder limitation statute on all construction for cases alleging fraud.
Consumer Protection Act Expansion (SSB 5531 – PASSED) (Chapter 371, Laws of 2009) AELC Rating: -L. This bill raises the dollar limit for treble damages available in a consumer protection act lawsuit from $10,000 to $25,000 and lowers the threshold for proving a violation is subject to the consumer protection act.
GOVERNMENT CONTRACTING / A&E SELECTION
UW/WSU Alternative Contracting Methods (SSB 5760/HB 1916 –DIED) AELC Rating: -H. This bill would have exempted the University of Washington and Washington State University from state procurement laws by allowing the schools to develop their own public contracting rules, including the ability to pre-qualify bidders for public works contracts.
WSDOT Procurement/Contracting Out: In late March, the International Federation of Professional and Technical Engineers Local 17 undertook a letter-writing campaign to the Governor and members of the legislature urging the rejection of contracting out on WSDOT projects. The effort was based on a flawed 2007 study entitled Value Subtracted: The High Cost of Contracting Out WSDOT Engineering, which was reintroduced by the IFPTE in early 2009. The American Council of Engineering Companies of Washington and the Washington Construction Industry Council responded with letters to the governor and legislature refuting the erroneous claims in the report and reiterating the benefits of contracting out design work to private firms.
LICENSING
Landscape Architecture Practice Act (SSB 5273 – PASSED) (Chapter 370, Laws of 2009) AELC Rating: +L. The American Society of Landscape Architects was successful in seeking the passage of a practice act for the landscape architecture profession.
Architecture Practice Act Update (SHB 1634/ESSB 5529 – DIED) AELC Rating: +L. The American Institute of Architects/WA Council made progress in advancing an update to the architect licensing law but the bill was held up in the final week of session.
Land Surveyor Licensing Update (HB 1391/SB 5584 – DIED) AELC Rating: +L. The Land Surveyors Association of Washington faced opposition to amending the land surveyors act.
Other. Proposals to license soil and wetland scientists (SSB 5698) and interior designers (HB 1608/SB 5514) were once again unsuccessful. AELC opposed these measures.
TAXES/FEES
Construction Resale Certificates (SB 6173 – PASSED) (Chapter 563, Laws of 2009). The bill changes the resale certificate for sales tax exempt wholesale purchases to a seller’s permit to increase sales tax collection. AELC joined others in the construction industry in strenuously opposing the bill before it was amended to remove a provision requiring contractors to pay the sales tax prior to receipt of payment from the owner.
Document Recording Fees (HB 2331 – PASSED) (Chapter 462, Laws of 2009) AELC Rating: -L. The measure authorizes an increase of $20 on document recording fees, including surveys, for four years to benefit homeless programs.
Intangible Property Tax (HB 2350 – DIED). The bill would create a tax on intangible property.
Sales Tax Increase (HB 2377 – DIED). Upon approval of voters, the bill would have allowed a temporary sales tax increase of 0.3 percent for three years to pay for certain health care services.
Income Tax on High Earners (SB 6147 – DIED). The bill would levy an income tax on individuals with income above a certain threshold.
REGULATORY ISSUES
Changes to Vesting Laws (SB 5148 – DIED) AELC Rating: -H. Introduced for three years now, the bill would significantly alter land use regulations pertaining to vesting.
Association Health Plans (HB 1714 – DIED) AELC Rating: -M. The bill brings association health plans under the existing regulatory requirements of the small group health insurance market.
