Building Insight June 2019

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WISHA VIOLATIONS

L&I REVERSES UNFAIR PRACTICE L&I AGREES WITH BIAW’s POSITION ON GENERAL CONTRACTOR LIABILITY

Congratulations to BIAW’s legal team who convinced the Washington Department of Labor & Industries (L&I) that general contractors should not be cited for Washington Industrial Safety and Health Act (WISHA) violations caused by their subcontractors if they had no reason to know about the violation. Late last year, L&I held the stance that general contractors were always accountable for WISHA violations committed by subcontractors. Upon review of a point that BIAW made in a recent amicus brief about general contractors, L&I responded and agreed with our position that general contractors // JACKSON MAYNARD should not be held liable General Counsel when the general contractor // HANNAH MARCLEY was unaware of a violation Associate Counsel and had no reason to know a violation had occurred. It is now L&I’s position that a general contractor is responsible for a subcontractor’s WISHA violation ONLY if they knew or could have known about the unsafe condition by exercising reasonable diligence. We will be reaching out to the agency to get clarification as to how this change will be enforced in the field and what steps our members should take if they are held to the previous standard of strictly accountable.

able efforts, then you cannot be cited for a subcontractor’s WISHA violation. This is an exciting change that we hope is an indication L&I will be open to more practical solutions to BIAW members’ problems in the future. For more information, contact us at (360) 352-7800 or legal@biaw.com. BIAW - Quarter Page Ad 2019.ai 1 2/21/2019 2:47:55 PM

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WHAT DOES THIS MEAN TO YOU

In the meantime, what does this mean for you if a subcontractor on your worksite receives a WISHA citation? n  Did you, the general contractor, know about a non-compliant condition on your worksite created by a subcontractor or subcontractor’s employee? n  Could you have known through exercising reasonable diligence? If you could not have known, in spite of your reason-

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the biaw health insurance program proudly serves members of the building and construction industries by providing top-notch employee benefit plans at competitive rates.


//BUILDING INSIGHT  |  BIAW.COM

CONTENTS // // L&I CHANGES ITS WAYS 2

// HIRING TEEN WORKERS 5

WHO WE ARE

The Building Industry Association of Washington is the state’s largest trade association and represents nearly 8,000 member companies in the home building industry.   Known as the “Champions of Affordable Housing,” BIAW is dedicated to ensuring and enhancing the vitality of the building industry for the benefit of its members and the housing needs of citizens.

2019 SENIOR OFFICERS President Rick Hjelm, CGR MBA of Pierce County First Vice President Sherry Schwab MBA of King & Snohomish Counties Second Vice President Chris Lockhart MBA of Pierce County Treasurer Tracy Doriot BIA of Clark County

// PATH TO HOMEOWNERSHIP 10

// LEGISLATIVE WRAP UP 12

Secretary LouAnne Neill HBA of Tri-Cities Immediate Past President Kevin Russell, CGP North Peninsula Building Association BIAW STAFF Executive Vice President Greg Lane

// ELECTION PREVIEW 14

PRESIDENT’S PERSPECTIVE HIRE A TEEN BUILDERS: Offer a path to a career in the industry

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// STACK ‘EM UP 15

EVP VIEWPOINT

HOUSING FORUM Event aims to raise awareness of attainable housing challenges

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Government Affairs Director Jan Himebaugh General Counsel Jackson Maynard Administrative Services Director Jan Rohila R.O.I.I.® Select Director Mark Shaffer Communications & Public Relations Director Jennifer Spall

On the Cover: Liberty Snodgrass takes a turn “driving” a dozer during Dozer Day® Where Kids Drive! Central Washington Home Builders Association is a sponsor of the annual event designed for kids, but also to help educate parents and the community about exceptional career opportunities available in the industry.

CONTACT THE EDITORIAL STAFF

Want to submit an article for publication? Have a story tip or suggestion? For consideration, please email communications@biaw.com

JUNE ’19

VOL. 29, ISSUE 6


PRESIDENT’S PERSPECTIVE

HIRE A TEEN

BUILDERS: OFFER A PATH TO A CAREER IN THE INDUSTRY

4 For many of us, our first taste of building a home started with picking up scrap wood, nails, and trash. There was even a time when instead of taking the leftover plywood and lumber to recycle we actually burned it onsite (don’t tell the Governor). I recall roasting hotdogs with my brothers and friends after the fire burned down to coals. We learned (and hated) how to use a shovel and dig trenches for utilities. We helped set forms, lugged rebar and tied wire. We // RICK HJELM eventually mastered the art of balancing a wheelbarrow of concrete, PRESIDENT gravel, and dirt. We all did our share of hauling lumber and plywood and placed it where it was needed. We carried roofing material up ladders and showed what we were made of by carrying two sheets of drywall before tearing off the end paper. I’m not writing this for the purpose of walking down memory lane, but to remind us that we all started in this industry at the bottom of the learning curve. We eventually either learned to love the smell of cement and lumber and be part of the creative process, or we quickly knew that it wasn’t in our blood. For some, it was the family business and you didn’t have a choice. If not, then someone else decided to give you a chance and see if you knew how to work. So now it’s our turn. The state of Washington allows teens, aged 16- and 17-year-olds, to perform certain tasks in our industry. The law is administered by the Washington Department of Labor and Industries (L&I) and although the rules have many limitations, they also provide many opportunities for teens to get the taste (and smell) of what we do.

HOW TO HIRE A TEEN: STEPS A BUSINESS MUST FOLLOW

1. Obtain a Minor Work Permit endorsement through your Business License Application prior to hiring a minor. You must post your Business License with current minor work permit endorsement and renew it annually. 2. Before permitting a minor to work, you must have the minor’s parent or legal guardian complete the appropriate authorization form. If employers are hiring youth during the school year, you will also need the school to fill out the appropriate authorization form. 3. Obtain proof of minor’s age. You must keep proof of age on file. Examples include a copy of a birth certificate, driver’s license, baptismal record, or a notarized statement from the parent or legal guardian.

The minimum wage for 16- and 17-year-old workers is the same for adults—$12 per hour in 2019. For non-agricultural jobs during non-school weeks, 16-17 We eventually either learned year-olds can work up to 8 hours per day, 48 hours per week, 6 days in a week. Teen workers are also entitled to rest and lunch breaks. (See to love the smell of cement more information on limitations on page 5.)

and lumber and be part of the creative process, or we BE AN INSPIRATION Yes, there are limitations, BUT teens can carry lumber and plywood. quickly knew that it wasn’t in Teens can clean up the job site—just no burning. Teens can learn to use our blood. a shovel and a wheelbarrow. There is an entire list of safe things teens can do, and if we do it right and make it kind of fun at the same time, maybe, just maybe, we’ll find the next great young adult who can imagine their future in the home building and remodeling industry. They just need a mentor and a chance. To learn more about hiring teen workers, go to: www.lni.wa.gov/WorkplaceRights/TeenWorkers

See PATH on page 13 //

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POTENTIAL WORKFORCE

HIRING TEEN WORKERS TAKING THE EXTRA STEPS REQUIRED TO HIRE A TEEN WORKER CAN PAY OFF IN THE LONG TERM

It’s no secret the home building industry faces a workforce shortage. With many teens and young adults now taking a second look into skilled trade careers as an alternate path rather than the traditional four-year college route, it is important to give them early exposure to our industry. One option for BIAW members is to hire teens for summer or part time work. Teen workers can be given meaningful tasks—but it’s up to employers to follow the rules on teen workers set by the Washington Department of Labor & Industries (L&I). Like BIAW President Rick Hjelm mentioned in his article (see page 4) maybe, your summer-time teen worker will develop a liking to the industry and turn their part-time job into a lifelong career.

GET THE RULES

L&I has an entire section dedicated to hiring teen workers on their website. It covers all the basics—from required forms and publications to everything in between. (More detailed steps to take before hiring a teen are on page 4. ) Check out these additional resources—how to hire a teen at www.lni.wa.gov/WorkPlaceRights/TeenWorkers— and FAQs at www.lni.wa.gov/ipub/700-022-000.pdf.

PROHIBITED TASKS FOR MINORS Washington state and federal laws spell out what type of jobs are prohibited for all minors under 18. The following are some construction and related industry tasks that are prohibited. THIS IS NOT A COMPLETE LIST. Refer to WAC 296-125-030 for more details. n Roofing: all work on or around a roof n Working at heights greater than 10 feet off the ground or floor level n Driving, or working near, a forklift n Wrecking and demolition n Hoists and cranes n Flagging and work on roadways n Trenching or excavating n Boilers or in engine rooms n Power-driven woodworking or metal-forming machines n Earth-moving machines or working in proximity to earth-moving machines n Logging and sawmill work n Manufacturing of brick, tile and similar products n Jobs where exposures require the use of respiratory protection or hearing protection

JUNE ’19

VOL. 29, ISSUE 6


EVP VIEWPOINT

HOUSING FORUM

EVENT AIMS TO RAISE AWARENESS OF ATTAINABLE HOUSING CHALLENGES

6 HOUSING FORUM JULY 8

While the results of progress were mixed this legislative session, it is true that the issue of housing affordability has risen to be a priority for both political parties. Momentum is building for real solutions and BIAW has plans to keep these issues at the forefront during the legislative interim. BIAW partnered with unlikely allies, including Futurewise and Wash// GREG LANE ington Low Income Housing Alliance, to pass both condo reform and urban density legislation. But much was left on the table and we must EXECUTIVE VICE PRESIDENT continue to educate and raise awareness on the issues facing our industry to shape legislation for the next session and beyond. At the recent 2019 Housing Summit, hosted by the Master Builders Association of Pierce County, National Association of Home Builders Chief Economist Robert Dietz told the crowd, “It is widely understood that a lack of inventory—particularly a dearth of new construction at affordable price points—is the primary cause of today’s housing challenges.” Governor Inslee echoed that message at the bill signing ceremony for HB 1923, legislation pushed jointly by BIAW and Master Builders Association of King and Snohomish Counties. Governor Inslee declared, “If you care about ending homelessness, build more houses.” The lack of housing that is attainable is the focus of a day-long the Housing Forum scheduled for July 8 in Bellevue. The Association of Washington Business has organized the forum, with partnership from BIAW, Association of Washington Cities, Washington State Association of Counties, Seattle Metropolitan Chamber of Commerce, and many others. Topics to be addressed include permitting, land availability, regulation costs, and supply. For more information and registration, please visit www.AWB.org/1/?cid=611. As one of the leading industries in our state’s economy, home builders and remodelers have a unique viewpoint to share on this topic. From what consumers are looking for, to the cost of regulation on home construction, BIAW is dedicated over the coming months to share that story with lawmakers and regulators.

R.O.I.I.® SELECT AND SUMMER EVENTS

I am very much looking forward to getting back out around the state this summer to visit with local associations, especially as they prepare to deliver R.O.I.I.® Select refund checks and host member appreciation barbecues. R.O.I.I.® Select will return nearly $24 million dollars to member participants this year, which included a 43% first-year adjustment, a 41% second-year adIt is widely understood that a justment, and a 36% third-year adjustment. These returns consistently lack of inventory—particularly beat the other retro programs in our industry. In other words, if you a dearth of new construction at want to receive one of the highest retro refunds possible, you need to be enrolled in R.O.I.I.® Select at BIAW. affordable price points—is the R.O.I.I.® Select is proud of the refunds our member participants primary cause of today’s housing have earned over the last few years. These refunds are the result of our member participants’ commitment to reducing workplace injuries challenges. by implementing a safety culture within the workplace. Just anoth—NAHB Chief Economist Robert Dietz er reason why R.O.I.I.® Select is still Washington’s largest and most successful retro program.

BIAW SUMMER BOARD MEETING | JUNE 19-21 | YAKIMA CONVENTION CENTER

BUILDING INSIGHT BIAW.com

BIAW held a very successful retreat in May with our strategic planning committee and are excited to have the final draft of the BIAW Strategic Plan presented for comment and approval at the board meeting. BIAW will also host a cornhole tournament and our annual Spike Party: A Night at the Movies—come dressed as your favorite movie character. Get all of the details at www.BIAW.com/Board_Meetings.


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JUNE ’19

VOL. 29, ISSUE 6


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BUILDING BETTER COMMUNITIES

BUILDERS GIVING BACK LOCAL ASSOCIATIONS TEAM UP

ANNUAL RAMPATHON FOSTERING CAREER OPPORTUNITIES Each year, Master Builder Association of King and Snohomish Counties (MBAKS) members and community volunteers head to homes throughout King and Snohomish counties to build wheelchair access ramps to individuals and families in need, for free.

(l to r) The Anderson family, Kirk, Wren and Emmy, with members of Rampathon 2019 Team Downbuilt. Wren Anderson has a rare genetic disorder that requires her to use a wheelchair.

This year, MBAKS constructed 40 ramps as part of Rampathon 2019. Since 1993, MBAKS members have provided more than 500 ramps. One of this year’s beneficiaries was 5-year-old Wren Anderson. Since birth, Wren has experienced an extremely rare genetic disorder resembling cerebral palsy. Among other symptoms, it causes muscle weakness, especially in the lower limbs. Wren gets around by crawling or using her wheelchair. As she grows and gets older, it’s difficult to lift her in and out of the house. MBAKS member Dowbuilt volunteered to construct her much-needed ramp.

BUILDING INSIGHT BIAW.com

It is no secret the home building industry faces a labor shortage, particularly in specialized trades. In an effort to help bolster workforce development, the Kitsap Building Association (KBA) has created the Builder Grant Program which will provide internship opportunities to young adults in the home building industry.

(l to r) KBA Executive Officer Russ Shiplet and Builder Grant program mentor Jerry Bird look on as KBA First Vice President Ellen Ross-Cardoso delivers a check to the Builder Grant Program’s first internship recipient Joseph Meyer.

Internship opportunities will focus on carpentry, electrical, plumbing, painting and coating, and the HVAC trades. Selected recipients receive $1,000 ($500 initial, $250 at 3 months and $250 at 6 months) in grant funds to purchase tools, safety equipment and gear, as well as attend trade-related courses and earn certifications. Interns will team up with a trades mentor, working full time over a six-month period in their designated field. The Builder Grant program focuses on workers in the 18-to-24 year-old range. “KBA created this program to provide grant funds to individuals wanting to start a career in the home building trades,” said KBA Executive Officer Russ Shiplet. “The core of the program is to recognize that we as an industry are really hurting for a skilled workforce. We’re kind of training our own, if you will,” Shiplet added. The first beneficiary of the program is Joseph Meyer of North Kitsap. Meyer will be working in the electrical trade with KBA member Jerry Bird of Bird Electric, where he will be mentor to Meyer for a six-month period. For more information on the program, visit KitsapBuilds.com.


Photo courtesy of Rick Wong Photography

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Master Builders BA of King and Snohomish Counties members who recruited at least three new members qualified to attend the MBAKS Spring Spike Incentive Trip to Sana Cruz, CA. Above, recruiters and guests enjoy a fun-filled, but chilly day on a catamaran.

The Building Industry Group, Building Industry of Association of Clark County’s political action committee, held their annual Auction for Political Action last month in Vancouver. The event raises funds that will be used to help get business-friendly and pro-housing candidates elected. to the legislature. Above (l to r): BIACC member Paul Willocks, Representative Brandon Vick and wife Darci, Senator Lynda Wilson, Sherry Hunzeker, and BIAW Treasurer Tracy Doriot take a quick time out for a photo.

The Central Washington Home Builders Association proudly sponsors the annual Dozer Day® Where Kids Drive! The event provides funding for children’s charities while putting kids in the driver’s seat of real dozers, excavators, cranes, fire engines, an ambulance, and much more. In addition to educating Liberty Snodgrass, “dozer operator-in-trainthe public about all the ing, ” gives the thumbs up signal with event career opportunities in volunteer Cheyanne Berkes during the the home building and annual Dozer Day® held at the Yakima County Fairgrounds. construction industry, Dozer Day also offers police and fire department experiences.

Congratulations to BIAW and Building Industry Association of Clark County (BIACC) member David Millar, Millar Construction, for their award-winning entry into the Hazel Dell Parade of Bands last month. The co-branded Millar Construction and BIACC float was awarded with the parade’s highest honor—the Grand Marshal Award. Congratulations BIACC and Millar Construction!

Congratulations to BIAW and Spokane Home Builders Association (SHBA) member Hayden Waston, Chairman of Hayden Homes. Hayden Watson was awarded the 2019 HearthWatson was stone BUILDER Humanitarian Award for his lifetime commitment to making communities better. awarded the 2019 Hearthstone BUILDER Humanitarian Award for his lifetime commitment to making the communities he builds—better. Hayden’s charity, First Story, arranges 30-year, no interest, no down payment loans that offers lower monthly mortgage payments to help prospective hardworking families attain affordable homeownership. Additionally, ten percent of his yearly profits are committed to charitable causes, which includes .125 percent of every Hayden home sold. Nearly half of Hayden’s 211 employees make a charitable contribution through a regular payroll deduction which is in turn matched in full by Hayden. His “Give As You Go” commitment has resulted in more than $18.5 million donated in charitable giving.

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HABITAT FOR HUMANITY

PATH TO HOMEOWNERSHIP PASSION FOR ATTAINABLE HOMEOWNERSHIP CREATES UNIQUE PARTNERSHIP WITH COMMUNITY

The Spokane Home Builders Association (SHBA) and Viking Homes have taken the lead on construction of a new home for Habitat for Humanity-Spokane with partner Janessa and her family as part of Habitat for Humanity’s Home Builders Blitz. Janessa partnered with Habitat-Spokane after learning about the homeownership program through another local non-profit. She was accepted into the program based on her need, ability to pay an affordable mortgage, and willingness to partner with Habitat. As part of that partnership, Janessa will complete 500 hours of sweat equity, which includes building her own home and the homes of her future neighbors, working in the Habitat for Humanity store and completing home buyer readiness courses.

Future Habitat for Humanity homeowner Janessa with her family, Viking Homes owner Ryan Olson, Viking Homes Project Manager Kelly Harju, Habitat for Humanity CEO Michelle Girardot, and SHBA Executive Officer Joel White break ground on Janessa’s new home.

We share the same passion for affordable homeownership as Habitat for Humanity, and we are very excited that Viking Homes has stepped up and made this project a reality. —Spokane Home Builders Association Executive Officer Joel White “I’m really proud to be here on behalf of Spokane Home Builders Association and our 750 members to serve this community,” SHBA Executive Officer Joel White said. “We share the same passion for affordable homeownership as Habitat for Humanity, and we are very excited that Viking Homes has stepped up and made this project

BUILDING INSIGHT BIAW.com

a reality.” SHBA member and Viking Homes owner Ryan Olson said he got involved with the project because it aligns with his family’s values. “My father worked his entire life to help as many people as he could to achieve the dream of homeownership,” Ryan said. “We are honored to have the opportunity to do this with SHBA and Habitat for Humanity.” When asked what she is most looking forward to after purchasing her Habitat home Janessa said, “Not having to live in small apartment with all my kids. Just having space for my kids to grow and thrive. Being able to make our home our own and knowing we won’t have to move.” Viking Homes and SHBA’s partnership with Habitat for Humanity-Spokane means the house will be built at no cost to Habitat. Sales of Habitat for Humanity homes go back into a revolving fund to build more Habitat homes for future qualified home buyers.


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We have been very pleased with the assistance and support R.O.I.I.® SELECT has given our company with L&I claims and other material. Your staff has helped guide us through the challenges of managing 150 employees and we are grateful for your knowledge and resources. —Brian Reeder, CPM, RPA, Reeder Management, Inc.

Retro is a safety incentive program with a simple goal: eliminate injuries through improvements in workplace safety and preventive strategies. If an employee is injured, help them get better quicker with a successful return to work experience. Companies that do this, earn a refund.

WHAT IS RETRO?

WE TAKE THE HASSLE OUT OF WORKERS’ COMP WE ARE THE OLDEST AND LARGEST CONSTRUCTION RETRO GROUP IN THE STATE

WE OFFER ALL THESE ADDITIONAL SERVICES AT NO EXTRA COST:

TRANSPARENCY AND AFFORDABILITY

n  Outcome-based Claims Assistance n  Superior Safety Services n  Risk Management Strategies n  Return to Work Options n  Investigations and Litigation n  L&I Audit Assistance

MEMBERS CAN RECEIVE A REFUND

PERFORMANCE IS THE KEY TO SUCCESS R.O.I.I.® Select’s strict enrollment criteria and innovative approach to workers’ comp ensures maximum group performance.

TAKE THE NEXT STEP We are currently accepting applications for quarterly enrollment. Get started with R.O.I.I.® SELECT today and see how much you could have earned.

R.O.I.I.® SELECT GROUP REFUND

42% 36%

34%

Competitors’ Averages

Competitors’ Averages

2012

25%

31% Competitors’ Averages*

2015

2014

36

%

Competitors’ Averages

37%

40%

2013

(360) 352-7800 Enroll@BIAW.com BIAW.com/roii

As the oldest and largest construction retro group in the state, BIAW’s R.O.I.I.® Select program has returned over $500 million in refunds to participating members since 1982.

JUNE ’19

VOL. 29, ISSUE 6


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LEGISLATIVE SESSION WRAP UP B I A W

S U C C E S S E S

B I AW P R I O R I T Y B I L L S PA S S E D

CONDO LIABILITY REFORM—SB 5334 This bill helps revise overreaching condo warranty liability from the 90s, which will allow for new condo construction in Washington state. It’s not a silver bullet to the housing crisis in our state, but it is another option for consumers seeking a path to affordable homeownership, by increasing supply and options for families of all sizes and incomes.

URBAN CAPACITY—HB 1923 This bill encourages cities to choose from a menu of “get to yes” options on projects. Options include up zones, cluster lot development, form-based codes and planned actions, among others. Newly adopted ordinances would be protected from appeal. In addition, the bill provides transportation SEPA appeals protection for individual projects that are consistent with the underlying transportation plan.

H A R M F U L B I L L S K I L L E D b y B I AW CONTRACTOR LIABILITY—HB 1395 This legislation would have made general contractors liable for benefits, contributions, and payroll of subcontractors’ employees. WHISTLEBLOWER CLAIMS—HB 1965 Trial lawyers pushed for a qui tam bill that would have allowed anyone to sue and recover damages as a whistleblower. MORE STRINGENT ENERGY CODES—HB 1257/SB 5293 Legislation would have allowed local governments to increase energy codes, creating a patchwork of new pricey rules across the state and adding unnecessary costs to the price of a home.

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SESSION IS OVER

Governor Inslee has signed the last of bills from one of the worst sessions for the business community in decades. We’ve prepared a final wrap up, with some wins, with many of the harmful bills we killed, we’ll see again next year. ENVIRONMENTAL JUSTICE—HB 1109 A task force was tucked into the budget requiring the study of the impact of development on minority communities. BIAW will work with the governor’s office with regard to the mission and makeup of this committee to ensure our industry is represented. A similar, more problematic bill (SB 5489), passed the House and Senate in different forms but the chambers were unable to reach a compromise. WHALE-WASHED—HB 1579 “An act relating to implementing recommendations of the southern resident killer whale task force related to increasing Chinook abundance.” This whale-washed bill has been around for years, but add in a reference to an orca and it passes. The requirement that the Department of Fish and Wildlife issue a hydraulic project approval (HPA) within 45 days for single-family bulkhead projects was repealed. This means WDFW can now deny an HPA application even when the project has been approved by a local See OVER on page 13 //


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TA X I N C R E A S E S A H E A D

The greatest disappointment of the session, however, was the majority party’s approach to taxes and spending. Despite the state receiving $6.2 billion in new revenue–a 17 percent increase—House and Senate Democrats decided this was the year to double down on dramatic spending increases. The business community was not spared and was hit with corresponding tax increases. In the end, the legislature passed 11 tax and revenue bills raising $2.6 billion in new, additional taxes over the next two years, $7.9 billion over the next four years, and more than $26 billion over the next 10 years. What didn’t make the tax hike cut? The proposed capital gains tax. Ruled by the IRS and multiple courts as an income tax, unconstitutional in the state of Washington, lawmakers failed to pass it. However, millions of dollars have been allocated to the Department of Revenue for the implementation of new taxes, as well as to study ways to make Washington state’s tax code more “fair.”

HOUSING COSTS ON THE RISE TA X I N C R E A S E S = $ 2 3 B I L L I O N O V E R 1 0 - Y E A R P E R I O D Taxes (*All figures in millions) Bill

2-Year 4-Year 10-Year

Payroll Tax for Long-Term Care Levy Lid Lift — Property Tax B&O Tax Increase — Services Graduated Real Estate Excise Tax MTCA (hazardous substance)

---- $1,422 $380 $244 $165

HB 1087 SB 5313 HB 2158 SB 5998 SB 5993

TOTAL

$2,090 $2,976 $945 $598 $361

$8,930 $8,661 $3,009 $1,884 $1,075

$2,211 $6,970 $23,559

Source: Washington State Office of Financial Management 10 Year Tax & Fee Costs Analysis

// OVER from page 12 jurisdiction and is compliant with their shoreline master plan.

S TA L L E D B I L L

SHORT PLATS — SB 5008 Generally, short subdivisions remain defined as the division of land into four or fewer lots. Under SB 5008, jurisdictions not planning under the Growth Management Act (GMA) may now, by local ordinance, increase the number of lots, tracts or parcels to nine. Jurisdictions planning under the GMA may create short subdivisions of up to nine lots, tracts or parcels, and, by ordinance, increase the number to 24 within a Urban Growth Area (UGA). Unfortunately, this bill did not pass this year, but BIAW will continue to work with lawmakers on this issue next session.

B&O TAX INCREASE—HB 2158 The home building industry was not immune to the legislature’s B&O tax increase. Lawmakers voted to impose a 20 percent surcharge on current rates for income from services and other activities of select businesses. Businesses taxed include architecture, engineering, insurance, telecommunications, interior/industrial design, insurance agents, legal agents, accounting, and more.

Jan. 1, 2020. Current REET is 1.28%. Transaction Amount Rate Up to $500,000 1.10% $500,000 - $1.5 M 1.25% $1.5 M - $3.0 M 2.75% $3.0 M and Above 3.0%

LEVY LID LIFT—SB 5313 The legislature also unraveled the McCleary fix, the K12 lawsuit requiring the state to fund basic education to address local educational inequalities. Unfortunately, on the last day of GRADUATED REET—SB 5998 session, lawmakers passed the “levy The Real Estate Excise Tax (REET) lid lift” bill that will allow districts structure was restructured. BIAW atto raise local school levies. The state tempted to work with lawmakers and should expect to find themselves in educate them about the complexity a McCleary-type lawsuit once those of greenfield projects and how parlevies are bargained into teacher cels are divided and sold, but to no salaries, only this time it’ll be even avail. The new REET rates take effect more expensive.

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CANDIDATE PROFILES

TO

ELECTION PREVIEW BEARD

OR NOT TO BEARD?

The deadline for candidates to file for office passed May 17, creating several interesting races for the primary election, August 6 and the general election November 5.

Guy Palumbo

Legislative District 1 Senator Guy Palumbo’s (D-Maltby) resignation to return to his former employer, Amazon, took place after candidate deadline. This allowed Democratic party leaders in the 1st district, which spans King and Snohomish counties, to nominate three people to both county councils for approval. The councils then pick one of those choices to fill out the last year of Palumbo’s term in office.

Legislative District 13 In District 13, the House seat vacated by Matt Manweller (R-Ellensburg) earlier this year, was filled by Republican Alex Ybarra of Quincy. Ybarra has filed for election and will face chair of the Kittitas County Democrats Steve Verhey of Ellensburg in the November election. The 13th district includes all or part of Grant, Kittitas and Lincoln counties. Alex Ybarra

Liz Lovelett

Legislative District 40 In District 40, Senator Kevin Ranker (D) resigned his seat earlier this year. Former member of the Anacortes City Council Liz Lovelett, Democrat, selected to fill his vacancy, has filed for election in order to serve out the remainder of Ranker’s term, which ends in 2020. Also, seeking the position are Greta Aitken and Carrie Blackwood (both prefer Democrat Party) and Daniel Miller (prefers Republican Party). The 40th district includes San Juan County as well as portions of Whatcom and Skagit counties.

BIAW’s political action committee, the Washington Affordable Housing Council, will continue to monitor these races and reach out to Senator Palumbo’s replacement during the summer interim. BIAW encourages our members stay engaged in city, county, and judicial races and the recommendations of your local home builders association.

BUILDING INSIGHT BIAW.com

Ever wonder what SkagitIsland County Home Builders Association member and Washington Affordable Housing Council (WAHC) Chair Gary Wray looks like under that beard? We do, too! So, we presented a challenge to Gary—which he graciously accepted! If BIAW members and friends can raise $10,000 for BIAW’s political action committee, WAHC, by the BIAW summer board meeting scheduled for June 21, Gary says he will shave off his beard! Watch live while Gary gets a shave during the board meeting!

PLEDGE TODAY! CONTACT: BIAW Government Affairs Director Jan Himebaugh (360) 352-7800 ext. 135 janh@biaw.com

Regulatory and Government Affairs Manager Josie Cummings (360) 352-7800 ext. 163 josiec@biaw.com


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SUMMER WEATHER TRIGGERS OUTDOOR HEAT EXPOSURE RULE

Workers can experience severe illness from doing construction outside in hot weather. Heat-related illnesses (HRI) can result in heat cramps, heat stroke, and more severe symptoms and can lead to injuries from falls and other accidents on the job site. Employers are required to provide training to workers under the Outdoor Heat Exposure Rule (WAC 296-62-095), which goes into effect from May 1 to September 30 every year when exposures are above a certain temperature. Employers must have a written HRI policy in place, conduct training, and must ensure drinking water is available at the worksite. For more information, visit www.lni.wa.gov/Safety/topics/ atoz/heatstress.

STACK ‘EM UP!

BIAW wants to see your stacks, piles, or even mountains of paperwork from your latest build or remodeling projects. On rare occasions, builders or remodeler are able to share stories

where a permit was completed and issued in a timely manner. New construction, remodeling, decks - you name it, we want to see it! This gem was shared with us by BIA of Clark County member and BIAW Treasurer Tracy Doriot in Clark County. Help us educate lawmakers, send your photos and stories to communications@biaw.com.

Do you want to

GET PAID CASH for products you already use?

BIAW’s builders and remodelers can earn cash rebates from over 60 of the country’s leading manufacturer brands, regardless of your volume.

1

Register: Go to HBArebates.com and register. Registering tells them where to mail your rebate check.

2

to determine what you can claim and deadlines to submit your rebate claim form.

3

Rebate Claim Form: Every quarter, if you completed a home, remodeling project, or multi-family unit that used participating manufacturers’ products, submit a rebate claim form.

4

Calendar & Deadlines: View the HBArebates.com calendar

Receive Your Rebate: View the claims process link on

HBArebates.com for details when you can expect your remittance statement and quarterly lump-sum rebate check.

a FREE membership benefit of BIAW earn cash rebates from leading manufacturers

QUESTIONS?

Contact Karen Hall at BIAW (360) 352-7800 x137

JUNE ’19

VOL. 29, ISSUE 6


SAVE THE DATE!

2019 EIR Awards

Building Industry Association of Washington 111 21st Avenue SW  |  Olympia, WA 98501 (360) 352-7800  |  BIAW.com |

June 19 | 7pm

Holiday Inn, Yakima Come out and celebrate the best of the best remodeling projects from around the state during the Excellence in Remodeling awards reception. This annual event highlights quality craftsmanship performed by our members. Suggested attire: smart casual

OPEN TO ALL | DRINKS HORS D’OEUVRES #EIR2019

E FUN!

S TH DON’T MIS

WRITTEN INSURED

New Home Warranties

TOURNAMENT JUNE 20 | 4 PM | PRIZES! SUMMER BOARD MEETING Yakima Convention Center

Mark your calendar for BIAW’s fourth annual cornhole tournament. Come and enjoy the competition or better yet get in the game for $10 (includes a drink). Sign up at the board meeting.

THANK YOU SPONSORS AAA KARTAK Glass & Closet Phase II General Contractor

• Wide variety of warranty programs including customized state, remodeler and building systems • FHA/VA Approved • Insurer Rated A-(Excellent) by AM Best • General Liability Insurance available

John Felbaum

800.247.1812 ext. 2633 sales@rwcwarranty.com www.rwcwarranty.com/WAInsight

A solid foundation for your business!


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