State Advocacy Update - February 2023

Article written and contributed by Rod Kauffman.

Bills BOMA Supports in the Current Legislative Session

HB 1404/SB 5117 – Reforms to Building Code Council

• Reforms the State Building Code Council.
• This bill would look at trying to reform the board, define its authority and create legislative oversight.

HB 1391 – Energy in Buildings

• Directs Commerce to contract with one or more administrators to establish a Statewide Building Energy Upgrade
• Navigator Program (Navigator Program) by March 1, 2024.
• Requires the administrator(s) of the Navigator Program to provide outreach and deliver energy services to residences, commercial buildings under 20,000 square feet, and multifamily buildings, and to develop community workforce agreements.
• Requires Commerce, by December 2023, to convene a technical advisory group to provide ongoing guidance to the Navigator Program, and to report to the Legislature.

SB 5056 – Habitual Property Offender

• Creates a special allegation for a habitual property offender.
• Requires a person found beyond a reasonable doubt to be a habitual property offender to be sentenced to an additional 24 months in total confinement for a Class B felony, and an additional 12 months for a Class C felony.
• All habitual property offender enhancements are mandatory and must be served in jail.

HB 1065/SB 5062 – Online Marketplaces Consumer Theft and Safety Protection

• Requires online marketplaces to obtain and verify banking, contact, and tax info from high-volume third-party sellers; discloses contact and business info for such sellers; and provides a mechanism for consumers to report suspicious activity.
• Provides for enforcement through the Consumer Protection Act; grants the Attorney General enforcement authority; and authorizes the Attorney General to develop certain implementing regulations.
• Preempts local requirements for online marketplaces to verify or disclose information from high-volume third-party sellers.

HB 1456 – Changing the Definition of Theft

• Currently concealing property for the purpose of stealing is not a crime and needs to be added to the definition.
• Amends the definition of "theft" to include concealing the property of another intending to deprive the other person of its use or benefit.
• Allows for enforcement of theft before someone has left the store if they are concealing property.

SB 5160 – Organized Retail Theft Crime

• A person is guilty of organized retail theft in the 2nd degree if the person commits theft of property with a cumulative value of at least $750 from a mercantile establishment:
• With no less than two accomplices, and
• Each accomplice enters the mercantile establishment within five minutes of the other seeking participation in the theft.

SB 5259 – Creating an Organized Retail Theft Task Force

• Creates the Washington state organized retail theft task force.
• Establishes a business and occupation tax credit for physical security improvements to mercantile establishments.
• Reduces the cannabis excise tax for physical security improvements to cannabis retail establishments.
• Prohibits certain retail establishments from disciplining an individual who intervenes in investigating or questioning the ownership of the merchandise at a mercantile establishment.
  

HB 1527/SB 5539 – Technical Changes to Tax Increment Financing (TIF)

• Provides Technical Corrections for Tax Increment Financing
• Defines the term real property as it relates to local tax increment financing areas.
• Clarifies that an increment area takes effect on June 1st following the adoption of the ordinance designating the increment area.
• Provides local taxing districts the authority to increase their property tax levy capacity for increases in assessed value in certain situations

HB 1117 – Power Supply Adequacy

• Requires Commerce and the Utilities and Transportation Commission to convene energy resource adequacy meetings through the calendar year 2031.
• Requires the 2023 energy resource adequacy stakeholder meeting to address the risk of rolling blackouts and inadequacy events, discuss how proposed electrification laws and regulations may require new state policies for resource adequacy, and identify incentives to enhance and ensure resource adequacy.

 
 
Bills BOMA Opposes in the Current Legislative Session
 
HB 1628 – Highest State REET Tax in America on Properties Over $5 Million

• This would create a new tier in the state-graduated REET Tax that would be the highest REET Tax in America on sales over $5 million.
• The REET Tax would be 4% of the selling price that is greater than $5 million, beginning January 1, 2025.
• The REET Tax shall be split as follows:
• 30% to the Washington housing trust fund created in RCW 43.185.030;
• 30% to the apple health and homes account created in RCW 43.330.184;
• 15% to the developmental disabilities trust account created in the bill
• 24% to the affordable housing for all accounts created in RCW 43.185C.190 for operations, maintenance, and service cost for permanent supportive housing as defined in RCW 17 36.70A.030.
• This bill has not yet been scheduled for a hearing.

HB 1589/SB 5562 – Banning Natural Gas through Gas Companies

• Prohibits gas companies serving more than 500,000 retail natural gas customers in Washington from extending gas service after June 30, 2023.
• Requires a large gas company to file a gas decarbonization plan as part of a multi-year rate plan on or after January 1, 2026, and every four years thereafter, with the aim to achieve the company's proportional share of greenhouse gas emission reductions required under state law.
• Requires a combination utility to file an electrification plan as part of a gas decarbonization plan on or after January 1, 2026.
• Directs the Utilities and Transportation Commission to establish cost targets for gas decarbonization and electrification plans, approve plans that are in the public interest, and adopt depreciation schedules, and a single energy rate base in certain instances.
• Encourages electric utilities to work with large gas companies providing gas service within their service areas to identify opportunities for electrification and providing energy peaking service.

SB 5335 – Capital Gains

• This bill would increase the overall capital gains tax rate from 7 to 8.5% to include
  real estate transactions.
• A universal healthcare bill