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BUILDING INSIGHT//WWW.BIAW.COM

3

CONTENTS //

Who We Are

The Building Industry Association of Washington is the state’s largest trade association and represents over 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.

2014 Senior Officers President Bob Johnson, CAPS, CGP Skagit/Island Counties Builders Association // GET YOUR GAME ON 5

// MEET REPRESENTATIVE JESSE YOUNG 14

First Vice President Monty Smith, CAPS BIA of Whatcom County Skagit/Island Counties Builders Association Second Vice President Kevin Kartak MBA of King & Snohomish Counties Skagit/Island Counties Builders Association Master Builders Association Pierce

// BILL SUMMARY 8-9

// LID COMING SOON 15

Treasurer Dave Main MBA of King & Snohomish Counties Skagit/Island Counties Builders Association Secretary Patrick Hayes Skagit/Island Counties Builders Association MBA of King & Snohomish Counties Immediate Past President Audrey Borders BIA of Whatcom County Skagit/Island Counties Builders Association

// HOW THEY VOTED 10-13

// PATENT TROLL UPDATE 16

BIAW Staff Executive Vice President Art Castle

PRESIDENT’S PERSPECTIVE

R.O.I.I.® SELECT SUMMARY

Administrative Services Director Jan Rohila

The transformative benefits of R.O.I.I.®

Director of Insurance Programs Frank Romero

BIAW REMODELERS

Government Affairs Director Jan Himebaugh

Snapshot of BIAW activities

4

EVP VIEWPOINT

Some changes you should know about but might not notice

6

10

Celebrate National Remodeler Month

17

Editor’s note: The April Building Insight cover featured House Republican Leader Dan Kristiansen addressing members and guests during the Membership Luncheon at the BIAW Winter Board meeting.

Building Insight questions/comments Communications and PR Director FaLeana Wech, CGP faleanaw@biaw.com Building Industry Association of WA 111 21st Avenue SW Olympia, WA 98501 360-352-7800  •  800-228-4229 www.BIAW.com

MAY ‘14

VOL. 24, ISSUE 5


BIAW ACTIVITIES

PRESIDENT’S PERSPECTIVE

SNAPSHOT OF

4

// BOB JOHNSON    CAPS, CGP PRESIDENT

As I write this article, I’m amazed that the first quarter of the year is over and by the time Building Insight goes to press and arrives in your mailbox—just like that, one-third of the year is gone. When I began my term, I was told by several past presidents how quickly the year will pass and have found this to be absolutely true; I know that I’ve mentioned it before but time sure does fly when you are having fun! If the first quarter is any indication as to how the rest of the year will go, it will continue to speed ahead and 2015 will soon be upon us. As you can imagine, every week presents its own challenges, decisions or actions which need to be addressed on behalf of our members and the association and I’d like to share with you some of the things we’ve been working on the past few weeks.

The first week of March was quite busy considering our annual winter board meeting took place in Olympia, coinciding with the legislature being deep in session. Each year, at this meeting, BIAW hosts a legislative reception which gives members an opportunity to spend some valuable “face-time” with the elected officials who represent us and to covey to them, issues which are of priority to the home building industry. I am happy to report attendance was robust and nearly 50 elected officials and government office holders attended the reception. The number would have been much higher but the Senate, on that day, did not adjourn in time for those members to attend. After the reception, I sent out personally signed letters to all those who attended thanking them for taking time to visit with our members and for their support. BIAW has worked very diligently for the past number of years and I believe that we’ve turned a corner in opening doors and being able to have a dialogue about our priority issues. That being said, the 2014 legislative session was hardly stellar and most of the key pieces we tried to move were unsuccessful. On the upside, BIAW’s advocacy team worked very hard on behalf of members and they were very successful in stopping many “bad bills” which could have harmed the building industry and small business. For complete information on how our legislators voted, take a look at our voter guide on pages 10-14. In the second week of March, the Senior Officers took a road trip to Wenatchee. We went to support the transition of former members of the North Central HBA to the Central Washington HBA; although the turnout was small at this event, the message was well-received and we look forward to rebuilding our relationship with these members and seeing more of them at future gatherings and BIAW events. To ensure a smooth transition, CWHBA with the support of BIAW, is setting up a local office in Wenatchee where there will be staff person on-site to ensure these members needs and concerns are addressed. The third week of March, BIAW held its last LPC conference call to wrap up the happenings of the 2014 Legislative Session and the Senior Officers also held a conference call to discuss BIAW insurance policies and needs. This week also saw the first meeting of the newly formed Finance Committee—the outcome of this meeting was very positive and provided a forward looking approach to ensure BIAW is in compliance with our bylaws and policies. We are excited about the future of BIAW and know that we are on the right path for continued and future success. A finance report and budget will be presented to directors in June at the summer board meeting in Pasco. During the last week of March, there were a variety of operational decisions that were considered and acted upon by your Senior Officers, one of which included an insurance coverage proposal and market summary. Additionally, there was extensive email traffic between the Senior Officers and the newly elected BIAW-MSC Board surrounding the ongoing transition of WBBT and BIAW MSC, you can read more about the transition on page 6. This is just a snapshot of all of the hard work, time and effort that goes into the day to day operations that make BIAW such a great association. I’m happy to be able to be a part of it and honored to serve and work on your behalf. I’m always available should you have any questions—please call me at 360-239-8485.

BUILDING INSIGHT www.BIAW.com


5

BIAW IS LOOKING FOR A FEW GOOD VOLUNTEERS The BIAW Membership Committee has formed two task forces to deal with some very specific and interesting areas and they need your help! Technology This task force formed was formed last summer to explore options for marketing BIAW using digital technology. They undertook a member survey and the results were shared with the Committee at their meeting in March. They will continue with their work and move to the next level by expanding to include additional members on the task force and look at diverse age groups in their study of how BIAW and local associations can best communicate with members. Continued progression/expansion of the scope will address how to identify and determine demographics, the identification of potential non-members and how to best reach those groups. Statewide Recruiter Incentive Program A new task force was formed to explore a statewide membership recruiter incentive program involving cooperative efforts between local associations and participation levels based on their size. The task force will also investigate the cost and advantages of a pilot program for ‘giving away’ a specific number of memberships to one local association during the year and then tracking involvement and renewals. Contact BIAW Administrative Services Director Jan Rohila at 800228-4229, ext. 101 to learn more or participate in either of these groups.

2014 MEMBERSHIP DRIVE RECRUIT - ENGAGE - RETAIN Recruit, Engage, Retain is the theme for NAHB’s 2014 membership campaign and once again provides opportunities to grow your membership and win cash – up to $2500. Participating associations that finish in the top five of their size group will bring home chase prizes in both the spring and fall. NAHB Membership Drives have been expanded again this year. The spring drive is in May (National Membership Month) and the fall drive takes place in your choice of September or October. When your local association participates, all members will earn double or triple spike credits for the new Builder and Associate members they recruit during the 2014 drives. Complete program rules and details are available at nahb.org/2014MembershipDrive.cation for consideration.

BIAW Spike Party Wednesday June 26 7 - 9:30 pm

SAVE THE DATE

Mark your calendar for BIAW’s annual Spike Party. This year’s theme? Sports, sports and more sports. Come dressed in your favorite sports gear and you may win a prize!

HOW DO I GET A TICKET?

BIAW members who have recruited one new member between 5/1/13 and 4/30/14 OR have earned 100+ Spike credits as of April 30, 2014 earn an all-access pass.

IT’S NOT TOO LATE

Haven’t qualified? It’s easy. Just recruit one new member and earn your ticket to the must-attend sporting event of the year. Contact Amanda at 800-228-4229, ext. 114 for more information.

Red Lion Hotel, Pasco

SECTION

VIP

ROW

1

SEAT

12

MAY ‘14

VOL. 24, ISSUE 5


EVP VIEWPOINT

SOME CHANGES

YOU SHOULD KNOW ABOUT BUT MIGHT NOT NOTICE

6 BIAW Member Services Corporation (MSC), the BIAW for-profit subsidiary, had a governance structure change at the November 2013 Board of Directors meetings. Before the change, all BIAW officers and directors were the officers and directors of MSC. Now, the BIAW President along with the First and Second Vice Presidents serve as ex-officio voting members of the MSC Board of Directors. Additionally, there is a BIAW Past President position, nominated by the BIAW // ART CASTLE Past Presidents’ Council, two BIAW BIAW MSC BOARD EXECUTIVE members enrolled in the R.O.I.I.® VICE PRESIDENT Select program and three BIAW Dick Rokes, President members at large. These five MSC BIAW past president directors are nominated by the MSC Board of Directors, Ted Clifton, Vice President but elected by the BIAW Board of Directors and they each R.O.I.I.® program participant serve a 3-year term of office. BIAW is the sole stockholder Monty Smith, Treasurer of MSC. In early 2012, the BIAW Senior Officers met with the Chair and Vice Chair of the Washington Builders Benefit Trust (WBBT), our attorneys, insurance broker and BIAW staff. The question raised was, “If we were to start a retro program today, what structure would we use to operate and manage the R.O.I.I.® program into the future.” Our accounting firm and attorneys reviewed the laws and facts and came back with a recommendation that the BIAW for-profit subsidiary MSC be restructured to be more independent and begin operating and managing the R.O.I.I.® program. The WBBT would then be transitioned to dissolve in the future. Previously, MSC staff actually managed and operated the R.O.I.I.® program and the WBBT managed the funds and distribution of R.O.I.I.® refunds.

BIAW First Vice President, ex-officio

Bob Kagy, Secretary member at large

Hugh Hall member at large

Bob Johnson BIAW President, ex-officio

Kevin Kartak BIAW Second VP, ex-officio

Kevin Patrick member at large

Rob Stewart R.O.I.I.® program participant

Starting with the 2012-13 plan year – this year’s first adjustment, MSC staff will continue to manage and operate the R.O.I.I.® program but will also begin to manage the funds and distribution of refunds for this plan year and those to follow. WBBT will still manage the funds and distribution for the previous plan years and in 2015, after it distributes the third and final adjustment for the 2011-2012 plan year, it will then take action to disband itself. What does this mean to you? Members in the R.O.I.I.® program will notice is that R.O.I.I.® refunds in 2014 and 2015 will be on two separate checks instead of one. While both checks will be from MSC accounts (as in the past), the first adjustment distribution for the 2012-2013 plan year will be on one check and the second and third adjustments of the 2011-2012 and 2010-2011 plan years will be on the other check. This is being done to keep the funds being disbursed from MSC and the WBBT in separate accounts. Beginning in 2016, we anticipate all disbursements to take place again on one check as all funds will be disbursed from MSC. So other than the two checks being distributed in 2014 and 2015 and greater transparency to members and program participants, there likely will be little else to notice. Also, this summer, if the judge approves a pending settlement agreement at a June 6 hearing in the ReSources and Peak Lawsuits; there will be a third check mailed to members who participated in the R.O.I.I.® program between 1994 and 2013. This will be your pro-rata share of the settlement agreement. The funds from these checks not cashed will be distributed to R.O.I.I.® participants with the third adjustment of the 2011-2012 plan year in 2015.

BUILDING INSIGHT www.BIAW.com


7

MAKE REAL CHANGE THE TRANSFORMATIVE BENEFITS OF R.O.I.I.® SELECT

Three years ago, BIAW made changes to the R.O.I.I.® Select program and shifted the focus for participants from the refund bearing benefit, which is great, to highlighting the transformative benefits of the program that can // LARA HASTINGS make companies better. A friend of mine put a quote on R.O.I.I.® SELECT Facebook one time that I’ll have to MARKETING MANAGER paraphrase because I don’t remember it exactly and I can’t find it anywhere on the internet but it goes something like, “Do all the little things that are possible, and eventually, you have done the impossible.” This phrase pops into my head every time I talk to a company that has resisted joining the R.O.I.I.® Select program because they don’t think they can provide light duty jobs, or they aren’t comfortable agreeing to pay wages and benefits for an injured employee as part of having a Kept on Salary policy. Although both practices are becoming more and more common in construction companies around the state, I understand the hesitance. The “little thing” This year’s first that every company adjustment of the can achieve is to 2012-13 plan year is take a look at how comlooking as though it workers’ pensation claims could be one of the are handled and highest percentage consider whether or not there are refunds ever. new ways of doing things that may have benefits outside of refunds. Companies should start by asking themselves: n  Are we careful about hiring the right people and training them with regards to safety in order to avoid claims in the first place? n  Does everyone on staff have a respect for and adhere to safe workplace behavior? Prevention of claims is the key to success—not just for refunds but to keep your L&I Experience Modification Factor (EMR) low as well. The prospect of having a Light Duty and Kept on Salary policy becomes a lot less daunting if you’ve put hiring, safety and claims management systems into place that make either those policies a “worst case scenario” option and not a regular occurrence.

Over the past few years, BIAW has accomplished what many thought was impossible. A mere four years ago when our R.O.I.I.® refunds were at their lowest in the history of the program, many thought we were doomed to fail. Then, through a series of doing the possible: n  Staffing the claims management team with incredibly talented individuals with a proven track record of success, n  Establishing underwriting procedures that go beyond numbers to really get the best companies enrolled in the program, n  Adding Light Duty and Kept on Salary requirements so everyone in the program is doing their utmost to keep claims costs low and n  Emphasizing best hiring and safety practices to participating companies as a way to mitigate the number of claims being filed in the first place. The team at R.O.I.I.® Select® has managed to do what some thought was impossible—survive and thrive. This year’s first adjustment of the 2012-13 plan year is looking as though it could be one of the highest percentage refunds ever. We believe every participant in the R.O.I.I.® Select program can do what they may think is impossible— Return On Industrial Insurance get great ® refunds, drive down their Experience Modification Are you interested in improving your hiring Factors and and safety practices? have no R.O.I.I.® Select will provide claims year you with the tools and after year. To resources to make real change. do this, participants just have to start with what is Applications are now being accepted possible! for the 2014 - 2015 R.O.I.I.® Select plan year. We are For more information, contact: now enrollR.O.I.I.® Select Marketing Manager Lara Hastings 800-228-4229, ext. 171 • larah@biaw.com ing for the 2014-15 plan year which begins on July 1. Download an application online at www.BIAW.com or email me at larah@biaw.com or 800-228-4229, ext. 171.

R.O.I.I. Select Make real change.

MAY ‘14

VOL. 24, ISSUE 5


8 SB 5931 HEALTH EXCHANGE FIX FOR ASSN. HEALTH PLANS [2014] Passed/BIAW Supported

HB 1074 PLAT EXTENSION [2013] Passed/BIAW Supported Extended preliminary plat approvals from nine to 10 years for those approved prior to Dec. 31, 2007. This legislation good piece of legislation provided the opportunity for lots that were approved before the economic downturn and have been sitting stagnant to remain available without having to go through the platting process again. Sponsor: Rep. Jan Angel (R-Port Orchard)

Gov. Jay Inslee signs HB1074 last spring along with then Rep. Jan Angel and Sen. Ann Rivers.

HOW THEY                      VOTED The election season is rapidly approaching and BIAW’s advocacy team has been working yearround with your elected officials to guide and monitor legislation that affects the building industry. As a wrap up of the 2013 and 2014 legislative sessions, and in preparation for the upcoming elections, the advocacy team has prepared a voter guide to provide insight and help inform your decisions and contributions in the fall. If you have questions or would like additional information, please contact BIAW Government Affairs Director Jan Himebaugh at 800-228-4229 ext. 135.

RETREADED BAD LABOR BILLS PASSED OUT OF HOUSE All Failed/BIAW Opposed HB 1313 MANDATORY SICK AND SAFE LEAVE [2014]

Would have required any business with five or more employees to provide sick and safe leave. Sponsor: Rep. Laurie Jinkins (D-Tacoma)

HB 2332 TREBLE DAMAGES FOR WAGE VIOLATIONS [2014]

Would have required treble damages - versus the current double damages, plus attorney’s fees for wage violations by employer. Sponsor: Rep. David Sawyer (D-Tacoma)

HB 2333 ANTI-RETALIATION [2014]

Would have expanded anti-retaliation language to the Minimum Wage Act, Industrial Welfare Act, Wage Payment Act, Prevailing Wage and Wage Deductions Act. This bill would have enabled any employee to file a complaint under any of the aforementioned laws with the presumption that retaliation had occurred if an adverse event such as hour reduction, termination (for any reason), failure to rehire (seasonal employee) occurred within 90 days. Sponsor: Rep. Cindy Ryu (D-Shoreline)

HB 2334 INDEPENDENT CONTRACTOR VERIFICATION [2014]

Would have presumed individuals perfoming labor or services for an employer were employees and placed the burden of proof on employers to show proof that an independent contractor is not an employee through the application of a lengthy list of factors and/or tests. The act could have been enforced administratively by L&I or in a civil action by an aggrieved employee. Sponsor: Rep. Marcus Riccelli (D-Spokane)

BUILDING INSIGHT www.BIAW.com

Clarified the requirements for health plans offered outside of the Exchange and provided necessary clarification to recent legislation regarding large purchasing groups and association health plans like the BIAW and MBA programs. Without this fix, both plans would have been subject to “market rules” that would have made the plans less competitive and less attractive to members. Sponsor: Sen. Jim Hargrove (D-Hoquiam)

Representative Doug Ericksen (R-Ferndale) smartly did not schedule the lower flow toilet bill for a hearing in his committee.

HB 2414 LOWER FLOW TOILETS [2014] Failed/BIAW Opposed Would have required that all toilets sold in Washington exceed Federal toilet standards and use only 1.28 gallons per flush and the amended bill was expanded to include all fixtures and fittings with very few exceptions. Yet again, the Senate thought better than the House and the bill went down the drain. Sponsor: Rep. Joe Fitzgibbon (D-Burien)

HB 2481 MANDATORY COMPOST AND YARD WASTE SPACE [2014] Failed/BIAW Opposed Would have obligated the SBCC to adopt specific codes and required the SBCC to require space to be provided for the collection of food and yard waste for all new R-2 construction, including: apartments, assisted living facilities, boarding homes, dormitories, fraternities and sororities. In essence, once again, the House wanted to go around the SBCC instead of bringing an amendment to the code through the code development process. Maybe the legislature is realizing it needs to take a serious look at how the SBCC operates and adopts code, although usurping the technical vetting and cost analysis is not an ideal way to create building codes. Sponsor: Rep. Tana Senn (D-Mercer Island)


9 HB 2677/SB 6461 IMPACT FEE DEFERRALS [2014] Failed/BIAW Supported Was the answer to Governor Inslee’s veto of BIAW-supported impact fee deferral legislation. These bills would have delayed the payment of impact fees until time of sale or certificate of occupancy/final inspection for the first 30 building permits a builder pulled within a jurisdiction. The pair of bills answered the concern for small school districts being overwhelmed and unprepared for students in the event a large development project was commenced within a district. They also addressed the Governor’s concern that last year’s bill which passed through the House and Senate did not do enough to help small builders. BIAW believed the bills took a balanced approach to builders being able to finance upfront impact fees and provided a cap to ensure school districts were not impacted by delay of payment. Unfortunately, HB 2677, while making it out of committee in the House, never made it to the floor for a vote. The Senate version, SB 6461, was never brought up for a vote by Governmental Operations Committee Chair Sen. Pam Roach (R-Auburn) and thus died in committee. Primed by: Rep. Springer (D-Kirkland) and Sen. Dansel (R-Republic)

Rep. Cathy Dahlquist (R-Enumclaw) co-sponsored impact fee deferrals in both 2013 and 2014.

HB 1652 IMPACT FEE DEFERRALS [2013] Vetoed by Governor Inslee/Passed/BIAW Supported A key legislative priority for BIAW, this bill would have deferred payment of impact fees until the time of closing or certificate of occupancy. Despite this common sense bill passing both chambers, it was vetoed when it landed on the Governor Inslee’s desk. Sponsor: Rep. Marko Liias (D-Mukilteo)

SB 5378 SIX YEAR BUILDING CODE CYCLE [2013] Failed/BIAW Supported Would have created a six-year building code cycle and provided regulatory certainty for the building industry and in addition, saved the state money. This bill did not get out of the house committee. Sponsor: Sen. Don Benton (R-Vancouver) Then Rep. and now Sen. Marko Liias (D-Mukilteo), has been a strong advocate for impact fee deferrals.

Rep. Dean Takko (D-Longview), chair of the House Local Gov. Com. passed impact fee deferrals out of his committee both years.

HB 1473 REPORTING PAYMENT FOR CONSTRUCTION SERVICES [2013] Failed/BIAW Opposed Would have required all companies that pay more than $600 for construction services or materials during a calendar year to submit a “1099” type form to L&I listing the amount paid and the business information of the payee. Sponsor: Rep. Mike Sells (D-Everett)

SENATE PASSES OUT WORKERS’ COMP BILLS

SB 5112 RETRO GROUPS SCHEDULING APPOINTMENTS [2013] Failed/BIAW Supported Would have allowed retro program claim managers, like BIAW’s R.O.I.I.® Select staff, to schedule medical exams and vocational services for injured workers. This legislation would have been beneficial for both the injured workers and employers – getting injured workers medical care and training quickly and efficiently is good for all parties concerned and helps keep claim costs down. Died in House in both 2013 and 2014.

SB 5127 EXPANDING STRUCTURED SETTLEMENTS [2013] Failed/BIAW Supported Would have expanded workers’ compensation settlement agreements and had it passed the House, it would have aligned Washington with most other states and would have saved several hundred millions of dollars in claims costs in the coming years. This bill passed the Senate multiple times during the 2013 and 2014 sessions where it failed in the House, multiple times.

Sen. Janéa Holmquist Newbry (R-Moses Lake) sponsored mulitiple bills to reform workers’ comp.

SB 5128 VOLUNTARY SETTLEMENT AGREEMENTS [2014] Failed/BIAW Supported

SB 5726 GEOGRAPHIC LIMITS ON PAID SICK AND SAFE LEAVE [2013] Failed/BIAW Supported

Would have further simplified the workers’ compensation settlement agreements as well as provided a study and a report back to the legislature regarding settlement agreements. SB 5112, 5127, 5128 sponsored by Sen. Janéa Holmquist Newbry (R-Moses Lake)

Would have placed geographic limits on mandatory sick and safe leave benefits. Sponsor: Sen. John Braun (R-Centralia)

MAY ‘14

VOL. 24, ISSUE 5


2011-12 Cumulative Score

2013-14 Cumulative Score

Retro Groups Scheduling

Expanded Structured Settlements

Health Exchange Fix for Assn. Health Plans

Mandatory Compost & Yard Waste Space

Lower Flow Toilets

Independent Contractors are Employees

Anti-Retaliation

Treble Damages for Wage Violations

Mandatory Sick & Safe Leave

2014 Score

Impact Fee Deferral

Plat Extension

Reporting Construction on Services

Prime Sponsor

2013 Score

*

Geographic Limit on Paid Sick & Safe Leave

Combined votes as Rep. and Senator

6-Year Building Code Cycle

as Representative

Voluntary Settlement Agreements

2014 votes only

Expanding Structured Settlements 1st Special Session

2013 votes only

Expanding Structured Settlements Regular Session

2012 votes only

Retro Groups Scheduling Appointments

10

SB SB 2ESSB 2ESSB ESB ESB EHB SHB ESHB ESHB HB 2SHHB HB ESHB SHB SB 2ESSB SB 5112 5127 5127 5128 5378 5726 1473 1074 1652 1313 2332 2333 2334 2414 2481 5931 5127 5112 Senate 25-24 30-19 27-18 25-24 33-14 29-20 47-0 34-14 46-3 27-22 26-22 Excused/Absent 4E 2E 2A 1E 1E House 51-47 98-0 73-24 52-45 53-45 53-45 51-45 57-41 57-40 93-4 Excused/Absent 1E 2E 1E 1E BIAW Position Y Y Y Y Y Y N Y Y N N N N N N Y Y Y 1 Sen. McAuliffe-D Rep. Moscoso-D Rep. Stanford-D

13% N N N N Y N A 33% Y Y 67% Y Y

N 33% Y N N 18% 45% N 14% Y Y Y Y Y Y Y 20% 42% Y 14% Y Y Y Y Y Y Y 30% 46%

2 Sen. Becker-R 100% Y Y Y Y Y Y Y Y 100% Y Y Y 100% 100% 100% Rep. Alexander-R1 100% N Y Y 100% Rep. G. Hunt-R1 100% N N N N N N Y 100% Rep. Wilcox-R 100% N Y Y 100% N N N N N N Y 100% 92% 3 Sen. Billig-D 13% N N N N N N Y Rep. Ormsby-D 33% Y Y Rep. Riccelli-D 33% Y Y

N 33% Y N N 18% 31% N 14% Y Y Y Y Y Y Y 20% 31% N 14% Y Y Y Y* Y Y Y Y 20%

4 Sen. Padden-R 100% Y Y Y Y Y Y Y Y 67% N Y Y 91% 87% 100% 100% Rep. Crouse-R2 100% N Y Y 100% Rep. Christian-R2 100% N N N N N N Y Rep. Shea-R2 100% N Y Y 86% N N N N N N N 90% 100% 5 Sen. Mullet-D 29% N Y E N N N Y Rep. Magendanz-R 100% N Y Rep. Rodne-R 100% N Y

N 67% Y N Y 40% Y 100% N N N N N N Y 100% Y 100% N N N N N N Y 100% 100%

6 Sen. Baumgartner-R 100% Y Y Y Y Y Y Y Rep. Holy-R 100% N Y Rep. Parker-R 100% N Y

Y 100% Y Y E 100% 82% Y 100% N N N N N N Y 100% Y 100% N N N N N N Y 100% 100% 100% 7 Sen. Smith-R3 100% Y Y Y Y Y Y Y Y Rep. Dansell-R3 100% Y Y Y 100% Rep. Kretz-R 100% N Y Rep. Short-R 100% N Y 8 Sen. Brown-R 100% Y Y Y Y Y Y Y Rep. Haler-R 100% N Y Rep. Klippert-R 100% N Y

Y 100% Y 100%

9 Sen. Schoesler-R 100% Y Y Y Y Y Y Y Rep. Fagan-R 100% N Y Rep. Schmick-R 100% N Y 10 Sen. Bailey-R 100% Y Y Y Y Y Y Y Rep. Hayes-R 100% N Y Rep. Smith-R 100% N Y 11 Sen. Hasegawa-D 13% N N N N N N Y Rep. Berquist-D 33% Y Y Rep. Hudgins-D 33% Y Y 12 Sen. Parlette-R 100% Y Y Y Y Y Y Y Rep. Condotta-R 100% N Y Rep. Hawkins-R 100% N Y 13 Sen. Holmquist Newbry-R 100% Y* Y * Y * Y * Y Y Y Rep. Manweller-R 100% N Y Rep. Warnick-R 100% N Y

Y 100% Y Y Y 100% 100% Y 100% N N N N N N Y 100% 100% Y 100% N N N N N N Y 100% 100%

BUILDING INSIGHT www.BIAW.com

1 2 3

N N

N N N N N N N N N N

Y 100% 100% Y 100% 100%

Y 100% Y Y Y 100% Y 71% N N N N Y Y Y 80% 100% Y 100% N N N N N N Y 100% 100%

Y 100% Y Y Y 100% 100% Y 100% N N N N N N Y 100% Y 100% N N N N N N Y 100% 100% N 33% Y N N 18% 31% N 14% Y Y Y Y Y Y Y 20% N 14% Y Y Y Y Y Y Y 20% 38% Y 100% Y Y Y 100% 100% Y 100% N N N N N E Y 100% 100% Y 86% N N N Y N N Y 90% Y 67% N Y * Y * 91% 91% Y 100% N N N N N N Y 100% Y 100% N N N N N N Y 100% 100%

Rep. G. Hunt appointed to serve in Rep. Alexander’s seat Rep. Christian appointed to serve in Rep. Crouse’s seat Sen. Dansell defeated the appointed Sen. Smith in an election to fulfill the remainder of Sen. Morton’s term Sen. Dansel defeated the appointed Sen. Smith in an election to fulfill the remainder of Sen. Morton’s term


2011-12 Cumulative Score

2013-14 Cumulative Score

Retro Groups Scheduling

Expanded Structured Settlements

Health Exchange Fix for Assoc. Health Plans

Mandatory Compost & Yard Waste Space

Lower Flow Toilets

Independent Contracts are Employees

Anti-Retaliation

Treble Damages for Wage Violations

Mandatory Sick & Safe Leave

2014 Score

Impact Fee Deferral

Plat Extension

Reporting Construction on Services

Geographic Limit on Paid Sick & Safe Leave

6-Year Building Code Cycle

Voluntary Settlement Agreements

Expanding Structured Settlements 1st Special Session

Expanding Structured Settlements Regular Session

Retro Groups Scheduling Appointments

2013 Score

11

SB SB 2ESSB 2ESSB ESB ESB EHB SHB ESHB ESHB HB 2SHHB HB ESHB SHB SB 2ESSB SB 5112 5127 5127 5128 5378 5726 1473 1074 1652 1313 2332 2333 2334 2414 2481 5931 5127 5112 Senate 25-24 30-19 27-18 25-24 33-14 29-20 47-0 34-14 46-3 27-22 26-22 Excused/Absent 4E 2E 2A 1E 1E House 51-47 98-0 73-24 52-45 53-45 53-45 51-45 57-41 57-40 93-4 Excused/Absent 1E 2E 1E 1E BIAW Position Y Y Y Y Y Y N Y Y N N N N N N Y Y Y 14 Sen. King-R 100% Y Y Y Y Y Y Y Rep. Johnson-R 100% N Y Rep. Ross-R 100% N Y

Y 100% Y Y Y 100% 100% Y 100% N N N N N N Y 100% 100% Y 100% N N N N N N Y 100% 100%

15 Sen. Honeyford-R 100% Y Y Y Y Y Y Y Rep. Chandler-R 100% N Y Rep. Taylor-R 100% N Y

Y 100% Y Y Y 100% 100% Y 100% N N N N N N Y 100% 100% Y 86% N N N N N N N 90% 100%

16 Sen. Hewitt-R 100% Y Y Y Y Y Y Y Rep. Nealey-R 100% N Y Rep. Walsh-R 100% N Y

Y 100% Y Y Y 100% 91% Y 71% N N N N Y Y Y 80% 100% Y 86% N N N N Y N Y 90% 92%

17 Sen. Benton-R 100% Y Y Y Y Y * Y Y Rep. Harris-R 100% N Y Rep. Stonier-D 67% N Y

Y 100% Y Y Y 100% 82% Y 100% N N N N N N Y 100% 92% N 29% Y Y Y Y N Y Y 40%

18 Sen. Rivers-R 100% Y Y Y Y Y Y Y Rep. Pike-R 100% N Y Rep. Vick-R 100% N Y

Y 100% Y Y Y 100% 100% Y 100% N N N N N N Y 100% Y 100% N N N N N N Y 100%

19 Sen. Hatfield-D 75% N Y Y N Y Y Y Rep. Blake-D 67% Y Y Rep. Takko-D 67% Y Y

Y 33% Y N N 64% 64% Y 14% Y Y Y Y Y Y Y 30% 61% Y 14% Y Y Y Y Y Y Y 30% 61%

20 Sen. Braun-R 100% Y Y Y Y Y Y * Rep. DeBolt-R 100% N Rep. Orcutt-R 100% N

Y 100% Y Y Y 100% Y 100% E N N N N N Y 100% 92% Y 100% N N N N N N Y 100% 100%

Y Y Y

29% 60% 21 Sen. Shin-D4 29% N N N N E N Y Y Sen. Liias-D4 33% Y N N 50% Rep. Liias-D4 67% Y Y Y * 36% Rep. Ortiz-Self-D4 14% Y Y Y Y Y Y Y 14% Rep. Roberts-D 33% Y Y N 14% Y Y Y Y Y Y Y 20% 38% 22 Sen. Fraser-D 13% N N N N N N Y Rep. S. Hunt-D 33% Y Y Rep. Reykdal-D 33% Y Y

N 33% Y N N 18% 27% N 0% Y Y Y Y Y Y E 11% 31% N 14% Y Y Y Y Y Y Y 30% 23%

23 Sen. Rolfes-D 43% N N E N Y N Y Rep. Appleton-D 33% Y Y Rep. Hansen-D 67% Y Y

Y 33% Y N N 40% 7% N 14% Y Y Y Y Y Y Y 20% 25% Y 14% Y Y Y Y Y Y Y 30% 28%

24 Sen. Hargrove-D 63% N Y N N Y Y Y Rep. Tharinger-D 67% Y Y Rep. Van De Wege-D 67% Y Y

Y 67% Y* Y N 64% 64% Y 14% Y Y Y Y Y Y Y 30% 61% Y 14% Y Y Y Y Y Y Y 30% 61%

25 Sen. Dammeier-R 100% Y Y Y Y Y Y Y Rep. Morrell-D 33% Y Y Rep. Zeiger-R 100% N Y

Y 100% Y Y Y 100% 100% N 14% Y Y Y Y Y Y Y 20% Y 100% N N N N N N Y 100% 100%

38% 26 Sen. Schlicher-D5 38% N N N N Y N Y Y Sen. Angel-R5 100% Y Y Y 100% 100% 100% Rep. Angel-R5 100% N Y* Y Rep. Young-R5 100% N N N N N N Y 100% Rep. Seaquist-D 67% Y Y Y 29% N Y Y Y Y Y Y 40% 77%

4 Rep. Liias was appointed to serve in Sen. Shin’s seat, and Rep. Ortiz-Self was appointed to serve in Liias’ seat 5 Rep. Angel defeated the appointed Sen. Schlicher in an election to fulfill the remainder of Sen. Kilmer’s term and Rep. Young was appointed to serve in Angel’s house seat

MAY ‘14

VOL. 24, ISSUE 5


2011-12 Cumulative Score

2013-14 Cumulative Score

Retro Groups Scheduling

Expanded Structured Settlements

Health Exchange Fix for Assoc. Health Plans

Mandatory Compost & Yard Waste Space

Lower Flow Toilets

Independent Contractors are Employees

Anti-Retaliation

Treble Damages for Wage Violations

Mandatory Sick & Safe Leave

2014 Score

Impact Fee Deferral

Plat Extension

Reporting Construction on Services

Prime Sponsor

2013 Score

*

Geographic Limit on Paid Sick & Safe Leave

Combined votes as Rep. and Senator

6-Year Building Code Cycle

as Representative

Voluntary Settlement Agreements

2014 votes only

Expanding Structured Settlements 1st Special Session

2013 votes only

Expanding Structured Settlements Regular Session

2012 votes only

Retro Groups Scheduling Appointments

12

SB SB 2ESSB 2ESSB ESB ESB EHB SHB ESHB ESHB HB 2SHHB HB ESHB SHB SB 2ESSB SB 5112 5127 5127 5128 5378 5726 1473 1074 1652 1313 2332 2333 2334 2414 2481 5931 5127 5112 Senate 25-24 30-19 27-18 25-24 33-14 29-20 47-0 34-14 46-3 27-22 26-22 Excused/Absent 4E 2E 2A 1E 1E House 51-47 98-0 73-24 52-45 53-45 53-45 51-45 57-41 57-40 93-4 Excused/Absent 1E 2E 1E 1E BIAW Position Y Y Y Y Y Y N Y Y N N N N N N Y Y Y 27 Sen. Darneille-D 13% N N N N N N Y Rep. Fey-D 67% Y Y Rep. Jinkins-D 67% Y Y

N 33% Y N N 18% 46% Y 14% Y Y Y Y Y Y Y 30% Y 14% Y* Y Y Y Y Y Y 30% 54%

83% 89% 28 Sen. Carrell-R6 83% Y Y N/A Y Y Y A E Sen. O’Ban-R6 100% N/A N/A Y N/A N/A N/A N/A N/A Y Y Y 100% Rep. O’Ban-R6 100% N Y Y 100% 100% Rep. Muri-R6 100% N N N N N N Y Rep. Green-D 67% Y Y Y 14% Y Y Y Y Y Y Y 30% 61% 29 Sen. Conway-D 13% N N N N N N Y Rep. Kirby-D 67% Y Y Rep. Sawyer-D 67% Y Y

N 33% Y N N 18% 45% Y 14% Y Y Y Y Y Y Y 30% 38% Y 14% Y Y * Y Y Y Y Y 30%

30 Sen. Eide-D 63% N Y Y N Y Y Y Rep. Freeman-D 50% Y Y Rep. Kochmar-R 100% N Y

N 33% Y N N 55% 64% E 14% Y Y Y Y Y Y Y 22% Y 86% N Y N N N N Y 90%

31 Sen. Roach-R 100% Y Y Y Y Y Y Y Rep. Dahlquist-R 100% N Y Rep. Hurst-D 100% N Y

Y 100% Y Y Y 100% 100% Y 100% N N N N N N Y 100% 100% Y 83% N N N N Y E Y 89% 92%

32 Sen. Chase-D 25% N N N N N N Y Rep. Kagi-D 33% Y Y Rep. Ryu-D 33% Y Y

Y 33% Y N N 27% 36% N 14% Y Y Y Y Y Y Y 20% 61% N 14% Y Y Y* Y Y Y Y 20% 31%

33 Sen. Keiser -D 13% N N N N N N Y N 33% Y N N 18% 45% Rep. Orwall-D 33% Y Y N 14% Y Y Y Y Y Y Y 20% 46% Rep. Upthegrove-D7 67% Y Y Y 67% 46% Rep. Gregerson-D7 14% Y Y Y Y Y Y Y 14% 34 Sen. Nelson-D 13% N N N N N N Y Rep. Cody-D 67% Y Y Rep. Fitzgibbon-D 67% Y Y

N 33% Y N N 18% 27% Y 14% Y Y Y Y Y Y Y 30% 46% Y 14% Y Y Y Y Y* Y Y 30% 31%

35 Sen. Sheldon-D 100% Y Y Y Y Y Y Y Rep. Haigh-D 67% Y Y Rep. MacEwen-R 100% N Y

Y 100% Y Y Y 100% 91% Y 71% N N N N Y Y Y 70% 61% Y 100% N N N N N N Y 100%

36 Sen. Kohl-Welles-D 13% N N N N N N Y Rep. Carlyle-D 67% Y Y Rep. Tarleton-D 67% Y Y

N 33% Y N N 18% 45% Y 14% Y Y Y Y Y Y Y 30% 69% Y 14% Y Y Y Y Y Y Y 30%

37 Sen. Kline-D 13% N N N N N N Y Rep. Pettigrew-D 33% Y Y Rep. Santos-D 67% Y Y

N 33% Y N N 18% 36% N 14% Y Y Y Y Y Y Y 20% 38% Y 14% Y Y Y Y Y Y Y 30% 38%

38 Sen. Harper-D8 38% N N N N Y N Y Y 38% 36% Sen. McCoy-D8 33% Y N N 33% Rep. McCoy-D8 33% Y Y N 31% Rep. Robinson-D8 14% Y Y Y Y Y Y Y 14% Rep. Sells-D 33% Y* Y N 14% Y Y Y Y Y Y Y 20% 46%

BUILDING INSIGHT www.BIAW.com

6 Rep. O’Ban was appointed to serve in Sen. Carrell’s seat and Rep. Muri was appointed to serve in O’Ban’s house seat 7 Rep. Gregerson was appointed to serve in Rep. Upthegrove’s seat 8 Rep. McCoy was appointed to serve in Sen. Harper’s seat and Rep. Robinson was appointed to serve in McCoy’s house seat


2011-12 Cumulative Score

2013-14 Cumulative Score

Retro Groups Scheduling

Expanded Structured Settlements

Health Exchange Fix for Assoc. Health Plans

Mandatory Compost & Yard Waste Space

Lower Flow Toilets

Independent Contractors are Employees

Anti-Retaliation

Treble Damages for Wage Violations

Mandatory Sick & Safe Leave

2014 Score

Impact Fee Deferral

Plat Extension

Reporting Construction on Services

Geographic Limit on Paid Sick & Safe Leave

6-Year Building Code Cycle

Voluntary Settlement Agreements

Expanding Structured Settlements 1st Special Session

Expanding Structured Settlements Regular Session

Retro Groups Scheduling Appointments

2013 Score

13

SB SB 2ESSB 2ESSB ESB ESB EHB SHB ESHB ESHB HB 2SHHB HB ESHB SHB SB 2ESSB SB 5112 5127 5127 5128 5378 5726 1473 1074 1652 1313 2332 2333 2334 2414 2481 5931 5127 5112 Senate 25-24 30-19 27-18 25-24 33-14 29-20 47-0 34-14 46-3 27-22 26-22 Excused/Absent 4E 2E 2A 1E 1E House 51-47 98-0 73-24 52-45 53-45 53-45 51-45 57-41 57-40 93-4 Excused/Absent 1E 2E 1E 1E BIAW Position Y Y Y Y Y Y N Y Y N N N N N N Y Y Y 39 Sen. Pearson-R 100% Y Y Y Y Y Y Y Y 100% Y Y Y 100% 85% Rep. Kristiansen-R 100% N Y Y 100% N N N N N N Y 100% 92% Rep. Scott-R 100% N Y Y 86% N N N N N N N 90% 40 Sen. Ranker-D 25% N N N N N N Y Y 33% Y N N 27% 54% Rep. Lytton-D 67% Y Y Y 14% Y Y Y Y Y Y Y 30% 46% Rep. Morris-D 67% Y Y Y 14% Y Y Y Y Y Y Y 20% 58% 41 Sen. Litzow-R 100% Y Y Y Y Y Y Y Y 100% Y Y Y 100% 82% Rep. Clibborn-D 100% N Y Y 14% Y Y Y Y Y Y Y 40% 61% Rep. Maxwell-D9 33% Y Y N 33% 61% Rep. Senn-D9 14% Y Y Y Y Y Y* Y 14% 42 Sen. Ericksen-R 100% Y Y Y Y Y Y Y Y 67% N Y Y 91% 90% Rep. Buys-R 100% N Y Y 100% N N N N N N Y 100% Rep. Overstreet-R 100% N Y Y 86% N N N N N N N 90% 100% 43 Sen. Murray-D10 13% N N N N N N Y N 13% 36% Sen. Pedersen-D10 33% Y N N 50% 61% Rep. Pedersen-D 67% Y Y Y 61% Rep. Chopp-D 67% Y Y Y 14% Y Y Y Y Y Y Y 30% 61% Rep. Walkinshaw-D10 14% Y Y Y Y Y Y Y 14% 44 Sen. Hobbs-D 71% N Y E N Y Y Y Y 33% Y N N 60% 64% Rep. Dunshee-D 33% Y Y N 14% Y Y Y Y Y Y Y 20% 31% Rep. Hope-R 67% N Y N 100% N N N N N N Y 90% 92% 45 Sen. Hill-R 100% Y Y Y Y Y Y Y Y 100% Y Y Y 100% 82% Rep. Goodman-D 33% Y Y N 14% Y Y Y Y Y Y Y 20% 46% Rep. Springer-D 100% N Y Y 43% Y N Y N Y Y Y 60% 61% 46 Sen. Frockt-D 29% N N N N E N Y Y 33% Y N N 30% 50% Rep. Farrell-D 33% Y Y N 14% Y Y Y Y Y Y Y 20% Rep. Pollet-D 33% Y Y N 14% Y Y Y Y Y Y Y 20% 14% 47 Sen. Fain-R 100% Y Y Y Y Y Y Y Y 100% Y Y Y 100% 82% Rep. Hargrove-R 100% N Y Y 100% N N N N N N Y 100% 92% Rep. Sullivan-D 67% Y Y Y 14% Y Y Y Y Y Y Y 30% 61% 48 Sen. Tom-D 100% Y Y Y Y Y Y Y Y 100% Y Y Y 100% 64% Rep. Habib-D 67% Y Y Y 17% Y Y Y Y Y E Y 33% Rep. Hunter-D 67% Y Y Y 14% Y Y Y Y Y Y Y 30% 58% 49 Sen. Cleveland-D 14% N N E N N N Y N 33% Y N N 20% Rep. Moeller-D 67% Y Y Y 14% Y Y Y Y Y Y Y 30% 54% Rep. Wylie-D 33% Y Y N 14% Y Y Y Y Y Y Y 20% 22%

9 Rep. Senn was appointed to serve in Rep. Maxwell’s seat 10 Rep. Pedersen was appointed to serve in Sen. Murray’s seat and Rep. Walkinshaw was appointed to serve in Pedersen’s house seat

MAY ‘14

VOL. 24, ISSUE 5


14

FROM HOMELESS ON HILLTOP TO THE WASHINGTON STATE LEGISLATURE

Jesse Young, R, Gig Harbor, represents the 26th Legislative District in the state House of Representatives.

For most of my childhood, I was either homeless or close to being homeless. My mom was a single parent who had left an abusive relationship. When I was three she decided to sober up and start over by moving my brother and me to Tacoma. As a result of her income (or lack thereof) we settled in the Hilltop neighborhood. She resisted going on welfare, taking on as many jobs as she could. But they weren’t high-paying jobs and often there wasn’t enough money to pay the rent. So we’d get evicted and have to go to a shelter, or as I got older we’d be forced to split up and find a place to stay with friends. One day, after I’d stood at the bus stop in the snow with my feet getting soaked and frozen due to the holes in my shoes, I asked my mom about Nike Air Jordan shoes. I had friends who I knew were poor like us, but they had Air Jordans. Why couldn’t I get Air Jordans too? She told me they accepted welfare and that’s how they chose to spend their money. She said she didn’t want to do that—she wanted to earn her money. It was an important lesson for me—not to be disdainful of those on public assistance, but to recognize the power and the potential of hard work. I was fortunate not only for having a mom who instilled in me a work ethic, but also because I happened to have the ability to do well in school. In high school I was additionally

BUILDING INSIGHT www.BIAW.com

blessed by my teachers, particularly one counselor who saw potential in me. By the time I was a senior I was on my way to being valedictorian, but mid-year we were evicted again and my brother and I ended up staying in a small trailer in the back of someone’s yard. I was busy working after school at a retirement center to help earn money to get our family back together. My counselor guided me and helped me apply for colleges, even paying my application fees because I couldn’t afford them. Not only was I valedictorian of my class, but I was also appointed a Washington State Scholar by the Legislature and was ultimately accepted into the University of Notre Dame. Once I made it to Notre Dame I was extremely motivated. I—and later my wonderful wife Jennie, who I married between my sophomore and junior years—worked to pay my way through college. There was no time to waste. And there was no way I was going to be homeless again—of that I was sure. Armed with a degree in management information systems, my wife and I set off for California where I started my career in Information Technology. Eventually we moved back up to Washington. We live in Gig Harbor, in a wonderful home with our five beautiful children. I’m a software engineer/technology consultant which means I can do a lot of work from home. It’s hard to describe the sense of peace and gratitude I have giving our kids of the stability and security of a home. It’s priceless, really. In January, one week into the legis-

lative session, I was appointed to the 26th District House seat, replacing Jan Angel who was elected to the state Senate. In addition to being somewhat awestruck and very much humbled by my new position, I also felt blessed to be able to weigh in on issues regarding homelessness. One day I spoke on the House floor in support of a bill to help homeless students do better in school. I shared my story of the counselor who went to bat for me. I also observed how the issue of homelessness can sometimes be used as a political weapon. Legislation to extend a real estate document fee to pay for homeless housing was embroiled in controversy. Sen. Jan Angel was the target of attacks because she wanted to make sure the money wasn’t being siphoned off where it didn’t belong, and that the source of funds could be made more stable in the long term. Sen. Angel was once nearly homeless herself, which made the attacks against her so ridiculous. She persevered, and we ended up with a better bill. The whole episode was a good reminder to be on guard against those who use good issues like homeless housing to pursue other agendas (attacking political opponents). It’s an amazing thing to go from the streets of Hilltop to the floor of the state House. I don’t take anything for granted—not my family, not my faith, not my home, and not the position that’s been entrusted to me. For as long as I’m here, I’ll try my best to be a voice for people who too often are forgotten.


15

LOW IMPACT DEVELOPMENT LID COMING SOON TO A DEVELOPMENT NEAR YOU

Jamie Howsley is a lawyer at Jordan Ramis, PC, a firm representing contractors, suppliers and other building trade professionals.

In August 2012, the Washington Department of Ecology (“Ecology”) announced the final NPDES Phase I permit, implementing prior direction from Washington’s Pollution Control Hearings Board (“PCHB”) to require low impact development techniques (“LID”) where and when “feasible.” Under condition S5.C.5.b of the new permit, // JAMIE HOWSLEY Phase I jurisdictions must “review, LEGAL COMMITTEE revise, and make effective their local development related codes, rules, standards, or other enforceable documents to incorporate and require LID principles and LID best management practices.” Yet both the jurisdictions required to implement the LID requirements and the development community remain wary of implementing such radical changes on a statewide basis without a better understanding of the long term implications, particularly regarding maintenance costs. LID techniques attempt to mimic the natural pre-developed environment by attempting to return much of the rainfall to the ground where it falls, rather than treating it in some other medium and then discharging it to a pipe where it eventually joins a stream, lake, or area where it eventually infiltrates. The 2013 permit specifies preferences for LID techniques in the following order; permeable pavement, bioretention, rain gardens, dispersion and then other methods. However, between the draft permit

circulated for comment earlier in 2012 and the final permit, critical language changed and Ecology neglected to address concerns by the municipal permittees and the private sector, including BIAW and several local associations. This resulted in all of the Phase I permittees (King, Snohomish, Pierce and Clark counties, as well as the cities of Seattle and Tacoma) challenging various aspects of the final permit. The BIA of Clark County, with support from BIAW and NAHB, also filed a challenge seeking modifications to the permit as developers and home builders will ultimately bear the costs for many of the requirements from land use regulations derived from the new permit. Despite various examples of failed permeable pavement projects, including several high profile failures in Clark County and in Bellevue, the PCHB issued its decision in the case March 21, essentially affirming most aspects of the permit. The PCHB deemed permeable pavement a feasible low impact development technique except on “heavily traveled roads.” Ecology must now modify the permit to clarify to which types of roads the permeable pavement requirement will apply. What does this affirmation of the permit mean for the development community? First, it means that the Phase I jurisdictions must submit draft code language implementing LID into their stormwater codes to Ecology for comment by June 30, 2014. By June 30, 2015, Phase I’s must begin implementing LID into their land use regulations. Phase II jurisdictions – those with a population over 10,000 – must imple-

ment LID into their codes by Dec. 31, 2016, coinciding with the next Growth Management Act Comprehensive Plan update. Second, Ecology will modify the permit to address the successful areas of challenge. We expect Ecology to work with the permittees and the BIA in developing the modifications. Snohomish County will pursue an appeal and BIA of Clark County may follow suit as to whether or not stormwater regulations can be vested, an issue initially decided by the PCHB in early summary judgment motions. Finally, it will be fascinating to see how the development process plays out. In their briefing and at oral arguments, Pierce County highlighted emails from Ecology staff stating that the new implementation of LID would be “...a huge leap forward knowing there would be spectacular failures” of stormwater systems. If these failures start occurring and creating liability not only for the public sector, but the private as well, we could see swift legislative action to attempt to reign in some of the regulations. The use of LIDs will not only change the landscape of the built environment, but will also require businesses and developers to change pro-formas to consider the short and long term costs associated with LID. This is made increasingly complex by the fact that some LID techniques may be implemented on individual lots, while functioning to serve the whole development. Builders should start educating themselves fully in all aspects of LID, as it is here and here to stay.

MAY ‘14

VOL. 24, ISSUE 5


16

PATENT TROLL UPDATE

LOCAL ASSOCIATIONS BRING HOUSING HOME

EXPLORING POTENTIAL LEGAL CHALLENGES

A

Over the past few weeks BIAW has been providing members with information and updates regarding a moisture patent troll. Additionally, NAHB has been working with both state and local associations to address this issue including exploring potential legal challenges and supporting federal and state legislative remedies that address this type of patent abuse—read more at NAHB.org. While NAHB does not provide specific legal advice to its members, the association can make certain recommendations as far as how to proceed, see chart below. If you receive a letter from Savannah IP, be sure to seek an opinion from counsel specializing in intellectual property matters and let us know immediately by contacting BIAW Government Affairs Director Jan Himebaugh at 800-228-4229, ext. 135.

Potential Response Do nothing. Do not respond to the letter and do not enter into licensing agreement.

Pros

Cons

The patent holder has no idea what the builder does or does not do on a construction job. Therefore, the patent holder has no idea whether or to what extent the builder has engaged in infringing conduct. Furthermore, as described below, if the builder can prove that s/he has been using the “process” described in the patent as far back as 2002, the patent holder will have a difficult case to make and may simply go away.

Leaves the builder feeling uncertain. May receive another letter asking for a licensing agreement; price may go up. Patent holder may file a lawsuit in the future.

B

A C

By ignoring the letter, the builder does not bring attention to itself.

D A Respond to the letter Provides member some degree of certainty at what would appear to be and enter into the licensing agreement. a relatively low price - $150 per unit.

Patent is enforceable for 20 years! Puts a target on the member’s back, i.e., that they would rather pay than fight. Terms of license agreement favor the Licensor, i.e., the patent holder, and are onerous, subjective and expensive.

Respond to the letter Delays the time for the member to by requesting more agree to license. information about the member’s allegedly infringing activities.

The patent holder has a “fish on the line,” i.e., a member that is concerned that its method of moisture control potentially infringes the patent. A target is on the member’s back. Patent holder may file a lawsuit.

Respond to the letter by threatening litigation under the State’s consumer protection statutes.

Member feels like it is doing “something” in response to the demand letter.

The patent holder may respond to the letter. Patent holder may file a lawsuit.

May compel the patent holder to go away and search for other targets.

If you were building homes prior to 2003 and if you used any sort of moisture remediation processes during construction—whether on your own or as part of an energy efficiency or weatherization program, please let us know by contacting BIAW Government Affairs Director Jan Himebaugh at 800-228-4229, ext 135 or by email at janh@ biaw.com.

BUILDING INSIGHT www.BIAW.com

In March, NAHB members across the country participated in the first NAHB Legislative Conference hosted in-district by local associations. More than 245 meetings occurred across the country during this event where housing’s priority issues were discussed with elected officials. A] Congresswoman Cathy McMorris Rodgers visits with members of the Spokane HBA while touring homes under construction. B] Members of MBA Pierce meet with Rep. Derek Kilmer to discuss housing issues C] Rep. Denny Heck and members of OMB. D] HBA of Tri-Cities Board of Directors present a plaque of appreciaiton to Congressman Doc Hastings thanking him for nearly 20 years of service to the citizens of the 4th District.


17

CELEBRATE NATIONAL REMODELING MONTH In May, during National Home Remodeling Month, NAHB Remodelers launches an annual campaign focused on the benefits of hiring a professional remodeler. Whether it’s tips for why, when and how to choose a professional remodeler or promoting your remodelers council’s directory of remodelers, May is the time to celebrate the remodeling industry. The campaign includes sample social media posts, web banners, press releases, fact sheets and other consumer materials. Members can download government proclamations, articles and op-eds, fact sheets and a how-to kit for implementing a campaign. These materials are easily customizable and can be used however you wish. NAHB has also created a simple step-by-step guide to lead you through the campaign which you can access at www.NAHB.org/ remodelors. Learn more about BIAW Remodelers by visiting www.BIAW.com and clicking on programs then Remodelers or by contacting Brenda Kwieciak at 800-228-4229, ext. 113 or email at brendak@biaw.com.

Quick Tips to Promote National Home Remodeling Month n  Post a new fact about remodeled homes each day on Facebook. Examples include local or national research and statistic about consumer attitudes and trends. n  Connect with members, Realtors®, media sponsors and other advocates on social media and ask them to help spread the word about National Home Remodeling Month in May. n  Hold a seminar about remodeling for aging-in-place at a local senior center or other community organization. Explain the fundamentals of universal design, describe the expertise of Certified Aging-in-Place Specialists and share examples of aging-in-place remodeling projects. n  Ask your Facebook fans to post on your wall what types of remodeling project they would like to have done. n  Create an online photo album with descriptions to showcase your work. n  Build a Pinterest board in which people can select pictures of projects they like and tag them with a tag you create.

WA SUPREME COURT TO HEAR BIAW CASE In September of last year, the Washington Court of Appeals in Utter and Ireland v. Building Industry Association of Washington, granted the BIAW motion for reconsideration of their unpublished opinion issued in October 2012; withdrawing that opinion and substituting a new opinion. This is the case where two former Washington Supreme Court justices, Robert Utter and Faith Ireland, filed suit against BIAW alleging BIAW operated like a political action committee in 2008 during the efforts to provide independent expenditure support for then gubernatorial candidate Dino Rossi.  The trial court judge, Mike Heavey (a former Seattle Democratic State Senator) ruled on BIAW’s behalf and dismissed the case in summary judgment. The Plaintiffs and their attorney, Knoll Lowney, appealed to the Court of Appeals. Their unpublished split-decision handed down in October 2012 ruled essentially:  a parent organization which had a related entity that conducted political activities was required to file as a political action committee and report all revenues and expenditures to the Public Disclosure Commission.  The dissenting judge strongly disagreed with the opinion and stated he agreed with the trial court’s dismissal on summary judgment.  BIAW subsequently filed two motions; one asking the Court of Appeals to reconsider their decision and the second, asking the court to publish their decision. The Washington Association of Realtors® submitted an amicus brief supporting BIAW. Additionally, Dec. 21, 2012 the day that the Mayan calendar ended, another amicus brief was filed with the court by the Washington Education Association, Washington Labor Council and SIEU locals arguing against the unpublished opinion.  In September of last year, nearly 11 months after the initial unpublished opinion, the Court of Appeals withdrew the initial opinion and substituted a published opinion that reaffirmed the trial court’s dismissal of Utter and Ireland’s claims on summary judgment.  The Plaintiffs appealed to the Washington Supreme Court who agreed to hear the case. Oral arguments will be heard May 27 and we expect their decision sometime later this year.

MAY ‘14

VOL. 24, ISSUE 5


18

WA

BUILDING PERMITS US CENSUS BUREAU STATISTICS A

SINGLE MULTI FAM. FAM.

FEB 2014

YTD 2014

FEB 2013

HOUSING STARTS REVERSE WINTER SLUMP

YTD 2013

Census and HUD reported March housing starts were up 2.8 percent from an upwardly revised February. Single-family starts accounted for all of the increase, rising 6 percent to 635,000 on a seasonally-adjusted annual basis. The increase was particularly strong in the hardest hit northern US of the Northeast and Midwest regions where single-family starts increased 39 percent and 29 percent respectively. Housing permits dropped 2.4 percent virtually all in the multifamily apartment sector. Multifamily permits (in buildings with 2 or more units) were 398,000 (on a seasonally-adjusted annual basis), about the same as the fourth quarter of 2013. February was unusually high at 425,000 so the fall in March was an adjustment to an unsustainable level than a reversal in apartment construction. The modest recovery in single-family construction after an unusual winter reflects builders continued caution as the overall economic expansion moves slowly forward. Housing conditions are right for continued growth in housing construction and sales. But consumers’ economic condition and expectations remain uncertain enough that committing to a large and long-lasting purchase like a home remains tentative. Builders, consequently, are reflecting that same caution. In an April survey, the leading reason builders gave for consumer hesitancy was buyers worried about their employment and economic situation at 47 percent of all builders. The share is down from more than 70 percent in 2009. The second leading reason for

BENTON 52 23 75 159 129 243 CHELAN 6 0 6 15 11 20 CLALLAM 11 0 11 20 5 9 CLARK 84 262 346 452 181 512 COWLITZ 4 0 4 13 1 12 DOUGLAS 12 0 12 20 1 1 FRANKLIN 26 16 42 80 61 124 GRAYS HARBOR 1 0 1 5 3 9 ISLAND 18 0 18 28 9 29 JEFFERSON 11 0 11 15 4 10 KING 312 537 849 1,341 891 1,738 KITSAP 10 0 10 39 25 51 KITTITAS 4 0 4 13 5 11 LEWIS 3 0 3 11 5 14 MASON 10 0 10 15 5 9 OKANOGAN 2 0 2 6 3 3 PIERCE 167 117 284 517 225 536 SAN JUAN 5 0 5 9 7 12 SKAGIT 20 0 20 40 20 33 SKAMANIA 3 0 3 4 3 6 SNOHOMISH 176 52 228 394 250 503 SPOKANE 21 65 86 246 50 133 STEVENS 0 0 0 0 0 0 THURSTON 52 0 52 130 58 105 WALLA WALLA 3 0 3 9 2 3 WHATCOM 20 8 28 46 22 42 WHITMAN 2 0 2 57 5 22 YAKIMA 10 0 10 13 8 13 WA STATE 1,045 1,080 2,125 3,697 1,989 4,203

NAHB/FIRST AMERICAN LEADING MARKET INDEX RANK April March Feb

METRO AREA Metro Area

APRIL Permits Prices

Emp

OVERALL Apr March Feb

43

44

49

Wenatchee

.68

1.46

.94

1.03 1.01 1.00

48

42

41

Kennewick

.79

1.29

.95

1.03

75

73

73

Spokane

.62

1.37

.93

.97

.98

.97

85

92

93

Seattle

.58

1.34

.95

.96

.94

.94

1.03 1.04

104

110 111

Bellingham

.28

1.56

.93

.93

.92

.91

161

171 174

Olympia

.36

1.31

.93

.87

.85

.85

165

166 160

Yakima

.39

1.26

.94

.86

.86

.86

166

175 181

Mt. Vernon

.42

1.24

.94

.86

.84

.84

188

187 184

Bremerton

.31

1.29

.92

.84

.84

.84

241

251 244

Longview

.33

1.15

.94

.81

.80

.79

United States

.44

1.24

.95

.88

.87

.86

BUILDING INSIGHT www.BIAW.com

Editor’s Note: In calculating the LMI, NAHB utilizes employment data from the Bureau of Labor Statistics, house price appreciation data from Freddie Mac and single-family housing permits from the U.S. Census Bureau. Visit NAHB’s EyeOnHousing.org for more discussion on economics and housing policy.


19

WA

HOME SALES NORTHWEST MULTIPLE LISTING SERVICE B

NWMLS STATISTICAL SUMMARY BY COUNTIES MARKET ACTIVITY SUMMARY - MARCH 2014

consumer hesitancy is that the prospective buyer cannot sell their existing home, also down significantly from more than 80 percent in 2009 but still high. These top reasons are somewhat circular in that the likely reason current homeowners feel they will have trouble selling their home is their prospective buyer is uncertain about their economic future. Hence, as the employment market continues to improve (NAHB forecasts 1.6 percent increase this year) and consumer confidence continues to improve, these hesitancies will dissipate and housing sales and construction will move forward at a modest pace. NAHB expects a 17 percent increase in construction in 2014.

SF HOMES PENDING MONTHS & CONDOS LISTINGS SALES CLOSED SALES SUPPLY New Total Number Number Average Median This Same Mth Listings Active Pending Closings Price Price Month Year Ago Clallam 93 352 58 37 $212,228 $182,000 9.51 8.28 Clark 59 149 78 42 268,791 245,000 3.55 2.16 Cowlitz 152 447 112 74 157,019 142,650 6.04 4.24 Ferry 2 50 0 1 82,500 82,500 50.0 36.0 Grant 130 424 110 59 150,344 135,000 7.19 10.25 Grays Harbor 148 631 119 85 122,228 102,000 7.42 14.94 Island 214 616 148 93 287,363 243,299 6.62 8.29 Jefferson 76 333 47 38 284,347 264,500 8.76 8.83 King 3,475 4,191 3,621 2,297 462,644 378,000 1.82 1.62 Kitsap 452 1,170 434 259 287,163 225,000 4.52 5.23 Kittitas 104 341 57 42 238,481 220,000 8.12 8.02 Lewis 122 576 119 72 139,201 129,750 8.00 9.98 Mason 141 579 104 68 161,860 134,000 8.51 9.83 Okanogan 59 348 24 18 151,989 147,000 19.33 20.24 Pacific 95 367 42 26 164,920 139,000 14.12 13.48 Pierce 1,568 3,200 1,563 919 240,707 222,950 3.48 2.96 San Juan 91 312 41 25 480,060 400,000 12.48 20.60 Skagit 227 644 200 116 271,083 232,975 5.55 6.13 Snohomish 1,378 2,105 1,481 949 311,314 295,000 2.22 1.58 Thurston 447 1,092 420 246 230,026 222,250 4.44 4.00 Whatcom 396 1,216 311 217 268,731 239,950 5.60 6.55 Others 169 593 94 70 216,926 177,000 8.47 8.36 MLS TOTAL 9,598 19,736 9,183 5,753 $339,466 $274,000 3.43 3.22

NWMLS Four-County Puget Sound Region Pending Sales, SF and Condo     A Only counties reported King, Snohomish, Pierce and Kitsap Counties are represented in state totals. Permit data is most Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Yearly current available as of press time. For a complete listing 2007 4869 6239 7192 6974 7311 6876 6371 5580 4153 4447 3896 2975 66883 of current and archived 2008 3291 4167 4520 4624 4526 4765 4580 4584 4445 3346 2841 2432 48121 building permits, click Online 2009 3250 3407 4262 5372 5498 5963 5551 5764 5825 5702 3829 3440 57863 Resources at BIAW.com            The information proB 2010 4381 5211 6821 7368 4058 4239 4306 4520 4350 4376 3938 3474 57042 vided is published by the 2011 4272 4767 6049 5732 5963 5868 5657 5944 5299 5384 4814 4197 63946 Northwest Multiple Listing 2012 4921 6069 7386 7015 7295 6733 6489 6341 5871 6453 5188 4181 73942 Service (NWMLS), it covers 2013 5548 6095 7400 7462 7743 7374 7264 6916 5951 6222 5083 3957 77015 21 counties in the state of 2014 5406 5587 7099 18092 Washington and is headquartered in Kirkland. Effective with January 2014 reports, NWMLS is calculating months of inventory using closed sales, rather than pending sales.

MAY ‘14

VOL. VOL.24, 21, ISSUE 5


BIAW Hall of Fame: Nominees Wanted If you’d like to nominate a fellow BIAW member (builder or associate) whom you believe is worthy of entry into this revered Hall, please contact Brenda at 800-228-4229, ext. 113 for an application packet or download one from the BIAW homepage at www.BIAW.com

Building Industry Association of Washington 111 21st Avenue SW  •  Olympia, WA 98501 360-352-7800  •  Fax: 360-352-7801 800-228-4229  •  BIAW.com

Presorted Standard U.S. Postage PAID Olympia, WA Permit No. 692

Entry deadline is May 30, 2014.

INNOVATIVE INSURANCE SOLUTIONS BIAW Members: Did you know you can purchase insurance products through the BIAW Building Industry Insurance Program at competitive rates? Check out BiiP today.

BIAW GOLF TOURNAMENT

BIAW Annual Golf Tourney Kick off the BIAW Summer board meeting with a round of golf at the Sun Willows Golf Course in Pasco.

ALL BIAW MEMBERS AND GUESTS ARE WELCOME TO ENTER. Proceeds benefit the BIAW Education Scholarship fund.

Details

$100 per golfer/$400 per foursome Includes: golf, cart, lunch, range balls, raffle ticket and prizes

Wednesday, June 25 BUILDING INDUSTRY INSURANCE PROGRAM BiiP Products Offered Questions?    For more info Risk  about BiiP, contact Karen Hall at l  General Liability 800-228-4229, l  Builders Warranty ext. 137 or visit: www.BIAW.com/ BiiP_Overview.aspx l  Builder’s

For more info about BiiP— scan this code. How YOU can become a BiiP agent— scan this code.

BIAW is not a licensed insurance broker or agent. In referring the user to an insurance company or licensed agent, BIAW is not selling insurance or providing coverage advice or counsel relative to coverage. BIAW does not solicit, take, or process insurance applications, nor does it negotiate or execute insurance contracts. For policy questions, or to obtain insurance, please contact a licensed member agent or broker. BIAW is paid an advertising fee by the participating insurers.

CALL FOR ENTRIES

11:00 a.m. Check in Noon Tee Times Begin 5:30 p.m. Awards and prizes presented at the Red Lion Hotel prior to the EIR Awards reception. Register by June 20 to Brenda at 800-228-4229, ext. 114.

Enter your remodeling projects today! Now is the time to enter your project in the 2014 BIAW Excellence In Remodeling Awards. The EIR awards recognize the state’s best remodeling projects and showcase quality craftsmanship in a variety of categories and price ranges. No job is too big, no job is too small. If you win, you’ll get some serious exposure and platitudes from your peers and homeowners across the state. Award winners will be announced during the EIR Awards reception on June 25 in Pasco and featured in the July issue of Building Insight. For an entry form and complete list of rules and eligibility requirements, visit www.BIAW.com or contact Brenda Kwieciak at 800-228-4229, ext. 113. Hurry, registration ends April 25.

Building Insight May 14  
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