2021 Chalk Line Issue #3

CHALK LINE

2021 EDITION - ISSUE #3

MAGAZINE

GIVING BACK

Members in the community

INSIDE THIS ISSUE: HOME & GARDEN SHOW

MEMBERS GIVING BACK

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Chalk Line 2021 EDITION - ISSUE #3

Table of Contents

come~ welMembers! ~ New

Joined in Feb & March 2021!

Page 4 MESSAGE FROM OUR 2021 OMB PRESIDENT

Page 5 ACCOLADES & SHOUTOUTS!

Page 7 MESSAGE FROM OUR EXECUTIVE OFFICER

Page 8

2021 GOLF TOURNAMENT PREVIEW

Page 9-11 OMB MEMBERS GIVING BACK!

Thomas Architecture Studios 525 Columbia Street SW 8808 I Olympia, WA (360) 915-8775 sokha@tasolympia.com Sponsor: Nate Schroeder Discount Roofing Marie St. SE I Olympia, WA (360) 401-3322 bailes1@comcast.net Sponsor: Barbara Whitlow Nyco Construction, LLC 10721 Tilley RD S I Olympia, WA (360) 561-0109 nycoadmin@nycoconstruction.net Sponsor: Kai Fyrst

Page 12-14

Sigma Drafting and Design Services 3515 Long Lake Drive SE I Olympia, WA (360) 464-5373 Mcurrier@sigmadrafting.com Sponsor: Jeff Kuster

Page 15

Local Custom House Plans (L.C. House Plans) 2501 NE Kresky Ave I Chehalis, WA (360) 345-6679 info@localhouseplans.com Sponsor: Becky Reiger

GOVERNMENT AFFAIRS

OMB RENEWING MEMBERS

Brian King Agency 1415 Harrison Ave. NW #103 I Olympia, WA (360) 705-0699 bking2@farmersagent.com Sponsor: Jeff Kuster Maplewood Media PO Box 14123 I Tumwater, WA (360) 870-9975 maplewoodmediagroup@gmail.com Sponsor: John Erwin

The 2021 Hire A Pr o Guide!

Visit omb .org for o ur online se archable members hip direc tory.

Berner Law Office, PLLC 5530 78th Ave NW I Olympia, WA (360) 464-2831 daniel@bernerlawoffice.com Sponsor: John Erwin Chalk Line • 3

PRESIDENT’S MESSAGE

FIVE Counties - FIVE Communities THIS ISSUE of CHalk Line IS ONE THAT IS VERY NEAR AND DEAR TO MY HEART, As I have always believed in the power of community involvement.

PRESIDENT JOHN ERWIN

I feel that as business owners and associates, the work we do to support our communities is just as impactful as the work we do to support our clients!

The action of "giving back" can be very powerful for our companies' reputations, increased sales, and overall purpose.

One major benefit of corporate-based community involvement is a proven boost in employee morale. This boost

is even more apparent if you choose to make "corporate donations" or host employee community work days.

Working as a team, to give back to the community, only makes your corporate team that much stronger.

And, in addition to the obvious benefits of donating to and volunteering with local charities, such as tax deductions and increased brand awareness and marketing, we are helping make our communities better places to live. It's good for business.

I hope you take the time to browse the amazing work our OMB members are doing (highlighted on pages 9-11) to give back to our collective communites that span over five counties. And, that you are inspired to get involved as well!

CALl FOR VENDORS! Home Show Vendor Showcase Page vISIT OMB.org Returning Vendors: Registration openED Tuesday, April 27th New Vendors: Registration opens Tuesday, May 18th

4 • Chalk Line

Chalk Line

Official Publication of the Olympia Master Builders 1211 State Avenue NE, Olympia WA 98506 Phone: (360) 754-0912 • www.omb.org The Olympia Master Builders is a professional trade association representing 480 member companies located in Thurston, Lewis, Grays Harbor, Mason and Pacific Counties. Our members come from all sectors of the building trades and are committed to “building strong communities, one home at a time.”

EXECUTIVE COMMITTEE

President - John Erwin First Vice President - John McKinlay Second Vice President - Becky Rieger Treasurer - Jon Jones Associate Vice President - Rusty Ruiz Second Associate VP - Barb Whitlow Secretary - Ken Hassett Immediate Past President - Erik Jensen

ELECTED DIRECTORS - TWO YEAR TERM

Builder Director - Barry Jespersen Builder Director - Jordan Gritton Builder Director - Kirk Haffner Builder Director - John Johnson Builder Director - Mike Koidahl Builder Director - Mike Auderer Associate Director - Scott Woods Associate Director - Bert Jansson Associate Director - Janine Ezzell Associate Director - Kelly Jensen

NATIONAL DIRECTORS - ONE YEAR TERM

National Director - Builder - John Erwin National Director - Builder - Karen McClennen National Director - Associate - Linda Mosier-Vaudt

STATE DIRECTORS - ONE YEAR TERM

State Director - Builder - Chris Winters State Director - Builder - Kai Fyrst State Director - Builder - Karen McClennen State Director - Builder - Jeff Kuster State Director - Builder - John Erwin State Director - Builder - Harv Lillegard State Director - Builder - Andrew Spear State Director - Builder - John Johnson State Director - Builder - Steve Waltemate State Director - Associate - Becky Rieger State Director - Associate - Cari Hill State Director - Associate - Debbi Boyd State Director - Associate - Bob Kagy

BUILDER AT LARGE

Karen McClennen

GRAYS HARBOR CHAPTER OFFICERS

President – Harv Lillegard, Lillegard Construction Vice President – Rusty Ruiz, Hung Right Doors Assoc. Vice President – Ryann Blake, Chimney Techniques, Inc.

LEWIS COUNTY CHAPTER OFFICERS

OMB A Glance & SHOUT OUTS OMBAtaccolades

May is National Pet Month!

Send us pictures of you with your fur-babies and we will post them to social media throughout the month of May to bring awareness to one of our favorite charities, Concern For Animals!!

Submit pictures to Jill at jill@omb.org and include your name and the name of your pet!

We are also hosting a Pet Supply Drive through the month of May for Concern For Animals! Donations can be delivered to the OMB office on Mondays, Tuesdays, Wednesdays and Fridays from 10:00am to 1:00pm between May 3rd and May 31st!

Pictured top is Ken Hassett of Builder's FirstSource with his dog, Paisley and Angela White, with her German Shepard mix, Olive!

GIVE BIG WA 2021 TO BENEFIT OMB EDUCATION FOUNDATION Thank you to all of those who help us raise funds to support the OMB Education Foundation IN the 2021 Give BIG Washington Fundraising Event on May 4-5th.

The OMB Education Foundation is dedicated to educate, foster and stimulate interest in the construction industry, as well as directly funds the Scholarship Program and so much more!

If you missed Give BIG Wa - don't fret you can still donate by contacting jill@ omb.org!

President – John Johnson, Johnson Custom Homes Vice President – Becky Rieger, Environmental Design, LLC Builder Director – Toby Krause, Double Duty Land Management

MASON COUNTY CHAPTER OFFICERS

President – Andrew Spear, Andrew Spear Construction, LLC Ass. Vice Pres. – Julie Nichols, Whitehouse & Nichols Attorneys at Law Assoc. Vice President – Mike Gill, Builders FirstSource

PACIFIC COUNTY CHAPTER OFFICERS

President – Steve Waltemate, SAW Construction Co., Inc.

LEGAL COUNSEL

Teena Williams, Goldstein Law Office, PLLC

ASSOCIATION STAFF

Executive Officer – Angela White Events Director – Brianna Bedell Communications Director – Jill Williams Membership Director – Jenn Wasson Government Affairs Director – Jason Gano Office Administrator – Emily Jaeger

2021 OMB president, John Erwin of John erwin REMODELING, sharing words of wisdom during the Construction Bootcamp graduation.

WorkSource, alongside local community colleagues, partnered with ANEW, to provide individuals in Thurston County a free, 4-week, Pre-Apprenticeship Training allowing them to explore and learn a variety of construction industry careers.

Chalk Line • 5

EXECUTIVE OFFICER’S MESSAGE

Members GIVING BACK I

EXECUTIVE OFFICER ANGELA WHITE

want to start by saying thank you to all of you for continuing to support your Association!

Without your support, this organization would not be as strong as it is today. As an organization, we continue to work on your behalf to support the mission of affordable housing for all economic segments of society.

"Navigating Today's COVID-19 in the Workplace," during this meeting. Your questions will be answered on how to navigate the vaccine, HIPAA and other important workplace items you need to know. OMB's golf tournament will be held on June 4th. We still have space for golfers but it's filling up fast. Visit omb.org to sign up today!

This issue of Chalk Line is focused on community service and what you all are doing to give back to the community. Many of you do so much in the communities that you live and work and we wanted to feature you!

Leadership is also focused on membership growth and retention. If you would like to join in this effort the Membership Committee, led by Karen McClennen, and the Spike Committee led by Linda Moiser-Vaudt have combined forces and meeting times to put forth a meaningful recruitment and retention effort. If you are interested contact Jenn Wasson, OMB's Membership and Sales Director at membership@omb.org for details. This is a great committee to get involved with!

We faced many challenges in the last year, and still continue to work hard to overcome ongoing challenges related to the ongoing pandemic. OMB leadership is focused on bringing meaningful networking and in person meetings back in a safe way, while continuing to track the reopening phases. We recently held our first Beer with a Builder and were glad to have the opportunity to see members again. We will be hosting the first General Membership meeting in 2021 in person on May 20th and will be focusing on,

Keep your eyes open for OMB's bi-weekly electronic newsletter Chalk Talk for other updates on OMB Happenings!

Thank you again for your membership! We have strength together.

May OMB General Membership Meeting THURSDAY, MAY 20, 2021 11:30 AM – 1:00 PM

Indian Summer Golf & Country Club Members: $25 ($30 at the door) Non-Members: $35 ($40 at the door) Please register in advance at omb.org Price includes lunch.

7 • Chalk Line

RSVP'S ARE REQUIRED TO GUARANTEE YOUR MEAL.

Chalk Line • 7

WHAT IS RETRO? Retro is a safety incentive program with a simple goal: eliminate injuries through improvements in 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, can earn a refund.

SAFETY HAS ITS REWARDS THE OLDEST AND LARGEST CONSTRUCTION RETRO GROUP IN THE STATE ROII has returned over $500 million in refunds to companies since 1982.

ALL-INCLUSIVE SERVICES FOR YOUR WORKERS’ COMP NEEDS

You won’t find any other retro group that includes all our in-house services at no additional cost.

PERFORMANCE

If the group and participant have a positive claim performance, they receive a refund.

Participants, on average, earn a 36% refund of their L&I premiums.

ALL-INCLUSIVE, IN-HOUSE SERVICES OUTCOME BASED CLAIMS ASSISTANCE

SAFETY SERVICES

RISK MANAGEMENT

To find out how you can start earning a refund, go to:

RETURN TO WORK

roii.com

OMB MEMBERS & STAFF

Giving back to their communities!

TEENA Williams, Goldstein Law Office, PLLC Ryann Blake I’m on the board for CYS and am also a foster parent through CCS (going on 7 years). My firm, Goldstein Law Office, also does the legal work for Quixote Village, Homes First and provides attorneys for pro bono legal clinic.

CHRIS & AMY WINTERS, CW CONSTRUCTION CW Construction has been involved with Rebuilding Together Thurston County over the years, working on projects and giving monetary donations. Rebuilding Together Thurston County provides free home repairs and handicap modifications for​ low income homeowners and nonprofit facilities. We serve low income homeowners who are elderly, disabled, families with children, and veterans in need.

JANINE Ezzell, Chicago Title Company I’m involved in Habitat for Humanity, I am on their Board of Directors and just accepted the position of vice president starting next month. I’m currently the president for Gateway Rotary. I’ve been a Rotarian for 18 years. We also have done recent work helping the Lacey food bank get their certificate of occupancy and we also help out with All Kids Win which was previously Homeless Backpacks.

Owner at Chimney Techniques, Inc. Grays Harbor Chapter Assoc. Vice President

The Horse Prayer is an equine assisted learning program for children Ages 5-21*, that have cognitive, social, emotional disorders, physical disabilities and limitations. We are located in Hoquiam, Washington and offer programs designed to champion abilities by promoting self-development and personal growth through a connection with our skilled program horses. We provide an atmosphere of hope and support where children can achieve their goals. Human equine bonds are formed that can have a lasting positive impact. Our goal is to provide these opportunities to all, regardless of income. Some of the families served by The Horse Prayer have shared in the joy of seeing their child smile for the first time in a very long while.

“My daughter and I got involved with The Horse Prayer a year and a half ago through a Horsemanship 101 course and have been volunteering weekly ever since. I was recently asked to join the Board of Directors. I can’t say enough great things about this program.”

MERRILEE DEFOREST, Strategy Insurance Brokers, LLC I volunteer my time with The National Alliance, Professional Insurance Agents, BIAW and the Independent Insurance Agents of Washington. IIABW is a non-profit trade association organized for the benefit of independent insurance agents and brokers.

Chalk Line • 9

OMB MEMBERS & STAFF

Giving back to their communities!

BECKY RIEGER, ENVIRONMENTAL DESIGN, LLC JOHN JOHNSON OWNER of JOHNSON CUSTOM HOMES Lewis County Chapter President

Johnson Custom Homes has been working with Hoss Memorial Field in Rochester to get the grounds and buildings back is shape for the baseball season. It had gone into quite a state of disrepair. Teams from Rochester, Tenino, Rainier and Oakville use the fields. Hoss Field is a non-profit organization that relies heavily on volunteers from the community. This year we have supplied labor, materials and signage for the organization.

It involved a lot of cleanup, repairs, painting, and elbow grease.

There was a tremendous outpouring of help from the community and it has done wonders for the area. The major items were completed for the Opening Ceremonies on Saturday, April 17th and it was a great turnout for the event. There is a lot of work to be done yet, but there is a plan now.

I am part of the board of Run Amok (a non-profit running club of friends and community members who enjoy being fit and active) for several reasons. Mainly, it makes me stop working and go walk or run for my sanity. The other is it is nice to see all of our members out and about and working on making themselves healthy.

We become a family and cheer each other on. It is great to see people meet their goals and be able to celebrate with them.

I also serve on the Lewis County Public Health and Social Service Board and I am the SW Washington Septic Designer representative for Washington Onsite Sewage Association.

JOHN ERWIN, JOHN ERWIN REMODELING, INC. We have been supporters of South Sound YMCA for about 15 years, also All kids Win (formally Homeless Backpacks) for a few years now as well. We have done several projects over the years with Rebuilding together Thurston County.

Jill Williams, OMB Communications Director I currently sit on the Board of Directors for Hope Opens Doors, a local non-profit that funds the Mother's Welfare Group in Nigera. I am also on the Executive Committee for the Olympia Chapter of the Surfrider Foundation, that is is dedicated to the protection and enjoyment of the world's ocean, waves and beaches, for all people, through a powerful activist network.

KEN HASSETT, BUILDERS FIRSTSOURCE I am proud to assist with on-going Rebuilding Together projects. We just participated in Rebuilding Day 2021 on May 1 in Tumwater, but this and other projects continue throughout the year.

Chief Banking officer, Jennifer Arnold,

serves on the Habitat Board. OlyFed is the Title Sponsor of this year’s Habitat Women’s Build! We have a team of a dozen OlyFedders who will be volunteering to work a full day on May 7. Jennifer adds, “I love this event because it provides women leaders in our community the chance to work with our hands and learn new skills, while making a meaningful and life-changing impact on the lives of many families who will directly benefit from that stability of home ownership.”

• Emily Kimble, Thurston County Volunteer Legal Services • Lori Drummond, Saint Martin’s University • Kristina Ware, Olympia Salvation Army • Mike Bowen, Olympia School District Education Foundation • Carrie Whisler, Thurston Economic Development Council & South Puget Sound Community College Foundation • Jane Walker, Yelm Chamber of Commerce

County Association of Realtors, Diversity Committee Chair. We are kicking off a Book Club in April for Fair Housing Month, reading Race For Profit, which is about how the real estate communities undermined Black Homeownership. Last year the Book Club read The Color of Law, about the history of inequities in housing. And, I am also on the TCRA Education Committee – that offers annual education: At Home With Diversity for Realtors and Affiliates. TCRA has Annual Community Service Day – this year teaming up with Homes First and Rebuilding Together. Realtor volunteers are serving at multiple sites for folks in need of home repairs, etc.

I started donating blood back in college after a research project for a speech class. I continued donating because it was something that I could do to make a difference that didn’t cost money as a college student. Now, I donate at Bloodworks Northwest because I understand that each donated pint can be the difference between life and death for three people in my community.

Bloodworks Northwest is an independent, non-profit organization harnessing donor gifts to provide a safe, lifesaving blood supply to 95% of hospitals in the Pacific Northwest. Their mission is saving lives through research, innovation, education and excellence in blood, medical and laboratory services in partnership with our community.

• Josh Deck, The Community Foundation of South Puget Sound • Casey Kilborn, South Sound YMCA

serves on the Homes First Board. Homes First manages the Merritt Manor, an affordable housing development in Olympia, and will be doing a new Solar Install – with South Sound Solar. Merritt Manor is an 82 two-and-three-bedroom apartment complex, for families making 60-80 percent of the area’s median household income.

ANGELA WHITE, OMB EXECUTIVE OFFICER

• Amanda Crouthamel, Kokua Services • Ryan Betz, United Way of Thurston County

Ken Pekola, Commercial Lending Director,

Barb Whitlow, OlyFed AVP Residential Relationship Manager, serves as Thurston

Oly Fed employees and the Boards they serve

• Rebecca Bonneville, North Mason Chamber of Commerce & North Mason Resources • Bobbi Kerr, Olympia Downtown Alliance • Lindsey Bamba, Child Care Action Council • Sandy DiBernardo, West Olympia Rotary Foundation • Ken Pekola, Homes First • Alison Densley, Concern for Animals • Barbara Whitlow, Olympia Master Builders

Debbi Boyd, THE REAL ESTATE OF SOUTH SOUND I spend a lot of my volunteer hours supporting All Kids Win (formerly Homeless Backpacks). All Kids Win is a non-profit committed to ending homelessness, by giving teens the help they need so they can focus on school, go on to graduate and become contributing citizens.

We provide food for the weekend to homeless teens in Thurston county.

we

♥ Our members!

Chalk Line • 11

Government Affairs ISSUES IN ACTION - 2021 To-DATE OVERVIEW The pocket Gopher

On-site gopher inspections for 2020 ended October 31. The next gopher inspections are planned to start June 1, 2021. Although gopher inspection season is closed, the County accepts permit applications for projects on gopher soils year-round. They are prescreened in the office to determine if a project even requires full gopher inspection. Some project types, site conditions or situations do not, and may be cleared right away. (In fact, most permit applications don’t require gopher inspections, and will not be affected by these dates.)

For more info please visit: https:// www.thurstoncountywa.gov/planning/Pages/hcp-gopher-reviews.aspx

West Bay drive Development Agreement

On March 30th, 2021, the Olympia City council voted 6 to 1 in favor of the West Bay Yards Development Agreement.

What’s next?

After the development agreement is considered by the City Council, the project applicant may submit a project application to the City for review. All applicable zoning, shoreline and environmental regulations and codes will apply and be considered during the City’s permit review process.

The City will follow its standard public notification process. The City will host a neighborhood meeting for the public early in the review process to discuss the project and answer questions. The 12 • Chalk Line

formal decision on a project application will be made by the Olympia Hearing Examiner after holding a public hearing. Written public comments will be accepted throughout the City’s review process.

A project-level SEPA environmental review will be conducted by the City for the project application. Please see the Site Plan Review Committee’s Presubmission Conference Worksheets listed above for the reports, studies, and code submittal requirements for this project.

For questions on the proposed Development Agreement contact Tim Smith, Planning & Engineering Manager, at 360.570.3915 or tsmith@ ci.olympia.wa.us.

For questions on the planned project, or to receive notice that the application has been submitted and when the neighborhood meeting is scheduled, contact Nicole Floyd, Principal Planner, at 360.570.3768 or nfloyd@ ci.olympia.wa.us.

Permit Process time improvements

OMB is working with multiple building officials in order to improve permit process time. This is a push in multiple counties in order to help streamline the permit process and improve the time it takes to get approval for a permit, while saving the different jurisdictions man hours and money.

If you have questions about what is being done in coordination with your

building official or if you have ideas to help streamline your local process, please reach out to OMB’s Government Affairs Director Jason Gano at Jason@OMB.org

Chehalis Fire Sprinklers

OMB, in coordination with a number of members from the Lewis County Chapter, worked hard to prevent an ordinance in the city of Chehalis that would require fire sprinklers in single family homes, and duplexes. This will save upwards of $7,000 on the cost of new construction.

In Washington state, the median home price is $522,023, requiring a minimum income of $112,295 just to qualify for a mortgage. At this price point, more than 72% of Washington’s roughly 3 million households are priced out already. And for every $1,000 in additional costs, 2,524 more households are unable to qualify for a new mortgage.

Elections Have Consequences

The Affordable Housing Council (TAHC) a political action committee (PAC) has begun the endorsement process for the upcoming election cycle. By contributing $125 to TAHC you become a TAHC trustee, this allows you to help choose which candidates TAHC endorse in local elections, while also making sure your opinions don’t fall on deaf ears. *Paid for by The Affordable Housing Council of Olympia Master Builders (TAHC).

2021 Legislative Victories

The 2021 legislative session ended on April 25. This 105-day session created many challengGUEST COLUMNIST: es.

However, BIAW’s government affairs and BIAW GOVERNMENT lobbying team worked tirelessAFFAIRS DIRECTOR ly to ensure legislators heard our members’ voices and to protect our industry from heavy impacts. Here are just a few of the important legislative wins (along with a few big losses):

JAN HIMEBAUGH

LAND USE WINS

• Protected Vested Rights in GMA: SB 5042 would have overturned the vesting doctrine essential for planning in the Growth Management Act. BIAW and its members were successful in ensuring the legislature did not make it even more difficult to acquire land and apply for permits for currently allowed uses. Vested rights in land use are critical in making land investments for housing.

• Protected “No Net Loss” Standard: HB 1117 would have increased mitigation standards from “no net loss” to “net ecological gain” on certain projects and added a salmon recovery goal to GMA. No net loss on projects is important because the mitigation requirements link to the actual impacts of the projects – a net ecological gain standard is constitutionally questionable (at best) and requires mitigation exactions over and above the impacts of the projects. Adding this kind of standard to public projects will increase the cost of housing. Residential construction already pays its way with infrastructure expansions, but those are still considered public. A NEG standard would increase the costs of sewer, electricity, gas, roads, etc., all needed for homes.

• Protected Further GMA Imbalance: HB 1099 added climate change to the goals and planning requirements of GMA. It also required planning to reduce vehicle miles traveled and recommended downzoning for rural residential density. All of these things upset the balance of the variety of community needs in GMA, most especially housing of all kinds for all economic segments, further driving housing prices higher.

• Ensured GMA Decisions Continue to be Made

by Local Elected Officials: HB 1241 provided for tribal consultation in comprehensive planning over and above the public input that is available to all interested parties and individuals. Tribes can and should be a part of comprehensive plan-

ning. However, this measure elevated their engagement by providing extra consultation without any added responsibilities or liabilities.

Comprehensive plans need to be adopted in an open public manner by locally elected officials.

• Removed Barriers to Condo Development: SB 5024 passed the legislature and streamlines who can do envelope inspections on small condo developments. These projects are built like traditional stick-frame single-family homes and should be a viable path for homeownership.

With the passage of SB 5024, these types of condo projects will have a better opportunity to be built affordably and safely.

Labor wins

• Eliminated costly assessment for foundational public health: Under the original version of SB 5149, legislators proposed a $3.25 per member, per month “assessment” to pay for foundational public health. This assessment was to remain in perpetuity. Based upon current enrollment numbers for BIAW and MBA Health Trusts, the cost per year of the assessment if it had passed was nearly $2 million!

Covered Lives in 2021 BIAW: 15,663 / MBAKS: 34,176 Total Covered Lives: 49,839 49,839 x $3.25 per month = $161,976.75 per month $161,976.75 x 12 months = $1,943,721 per year BIAW/MBAKS health plan participants are already charged a 2% premium tax every year – a tax that is not paid by large, self-insured companies or labor union trusts. The BIAW advocacy team has repeatedly pointed out the inequity in this tax to legislators and did so again in arguing against the proposed assessment contained in SB 5149. In response to pressure from BIAW and other small business groups, there were new proposals floated for a “graduated assessment”, and then a sweetened beverage tax, which also died. Ultimately, the legislature paid for “foundational public health” with the state general fund windfall dollars and some federal COVID recovery funds. Defeating SB 5149 saved BIAW/MBAKS members nearly $2 million PER YEAR! • Protected against costly and redundant direct contractor liability: In a seismic shift of the employer/employee relationship, SB 5278 would have made general contractors liable for all benefits, contributions, and payroll for employees of subcontractors on their projects.

The BIAW advocacy team, along with several BIAW members provided written and verbal testimony against this terribly misguided bill, pointing out several issues.

• It is already against the law not to pay employees. The state has established the De-

partment of Labor & Industries Wage and Hour division to enforce the current law and to ensure employees receive wages for their work. L&I has the legal and administrative tools to enforce the wage and hour laws.

• SB 5278 shifts responsibility over to builders, increasing overhead and administrative costs and absolutely will increase the cost of housing. Contractors will have to either hire or contract out for accounting services to ensure that all payroll records, benefit contributions, etc. have been made on behalf of someone else’s employees.

• SB 5278 will cause subcontractor payment delays. General contractors will not pay subcontractors until a complete audit of payroll and benefits has been completed or risk potentially massive wage/benefit obligations to someone else’s employees.

• The underlying basis of this bill violates due process by creating liability for another’s wrongful act.

Fortunately, SB 5278 never made it out of the Senate Labor, Commerce & Tribal Affairs Committee.

• Removed objectionable legal fees from Health Emergency Labor Standards bill: SB 5115 establishes a presumption of eligibility for workers’ compensation (L&I) coverage for “frontline workers” during a public health emergency. Typically, the burden of proof is on the worker to show that he/she was injured at work.

An early version of the bill also included language that would have, for the first time in Washington, required employers to pay legal fees if they appealed the allowance of an L&I claim and lost. (b) When a determination involving the presumption established in this section is appealed to any court and the final decision allows the claim for benefits, the court shall order that all reasonable costs of an appeal, including attorneys’ fees and witness fees, be paid to the worker or the worker’s beneficiary by the opposing party.

Such a shift in the legal obligations of employers challenging L&I claims would have been disastrous for employers as it would have a “chilling effect” on any employer legitimately questioning the validity of a claim.

Fortunately, this language was removed from the final version of the bill after strong objections by BIAW and other members of the business community. SB 5115 ultimately passed into law, but without the objectionable legal fee language. BIAW’s own retro program, ROII

CONTINUED ON PAGE 14

Chalk Line • 13

estimates this saved our program half a million dollars annually, ensuring that more money can go back to participants and local associations.

• Defeated costly qui tam allowing third-parties to intervene in labor cases: Probably the worst of all of the anti-business bills introduced in 2021, passage of the so-called Qui Tam bill would have been calamitous for every business in Washington.

HB 1076 would have essentially opened the door to a flood of lawsuits against employers for even the smallest of labor, wage and safety violations.

In cases where a state agency, like L&I, declined to prosecute an employer for alleged violations, the bill would have allowed private attorneys, or “relators” to file lawsuits against employers in the name of the state. The costs for employers to defend even the smallest of errors or violations would have been crushing, resulting in numerous settlements for thousands of dollars in order to avoid legal costs, even in cases of innocence or minor errors.

HB 1076 was modeled largely after a similar law in California that has led to disastrous results for employers and has proven to be of little consequence to workers while making attorneys wealthy. BIAW’s advocacy team and strong member involvement in opposing this bill were critical to ultimately defeating this terrible piece of legislation.

Environmental wins

• Removed permitting decisions from new comprehensive health districts: HB 1152 originally would have removed permitting for potable drinking water and septic permitting from local health departments and turned over that decision making to a larger regional comprehensive health district made up of multiple counties. We were successful in making sure local health districts weren’t abolished and permitting will stay at the local level.

• Pushed for additional clarity in the creation of the Environmental Justice Council: SB 5141 was ambiguous and gave a newly created Environmental Justice Council a massive amount of unchecked power over most agency decisions.

Although this bill passed with some major concerns, BIAW was able to narrow the bill’s focus and give clearer direction to the agencies and the regulated community. While this bill requires an environmental justice assessment on significant agency actions, we were able to get permitting removed from this list and limit the scope of the assessment to help limit the fiscal impact to projects and permitting. We were also able to add two members of the business community and a building trades union representative to the council, which is now purely advisory.

• Gave options and cost considerations when replacing shoreline armoring: SB 5273 would

have required all shoreline armoring replacements be replaced with soft armoring instead of cement bulkheads. BIAW was able to amend the bill so that soft armoring isn’t mandatory if the project isn’t technically feasible or if cost is a barrier. This still allows flexibility and options for landowners while prioritizing the environment.

Losses

Expensive carbon policies passed the Legislature: Washington became the second state in the country to pass a cap and trade program (SB 5126). If the state doesn’t link up their cap and trade program with California and Quebec’s for carbon offset credits, it is estimated this policy alone could add up to $2.41 cents a gallon with very little improvement to the environment. The legislature also passed a Low Carbon Fuel Standard(HB 1091) designed to promote fuel alternatives and electric vehicles, adding additional cost to gas and potentially limit carbon emissions.

These policies will no doubt impact the state’s economy and add to the cost of doing business in our state.

Thank you to all our members who participated in this session. Your voices were heard and you all were a huge part of why these bills were not passed. If you have any questions about the results of the 2021 legislative session, please contact BIAW Government Affairs Director Jan Himebaugh at janh@biaw.com.

NAHB Member

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14 • Chalk Line

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OMB Members that Renewed ~ ! s r in FEBRUARY & e b m e ~RENEWING M MARCH 2021!

ONE YEAR Controlled Rain

2-4 YEARS Kevin Hayward - State Farm Insurance Agent West Coast Plumbing Pumps & Filtration, LLC DK Boos Glass, Inc. Epic Realty R4 Contractors, LLC John L Scott - Lacey Sound Native Plants, Inc. A+ Septic & Plumbing Service The Rants Group - Evergreen Olympic Properties Ascend Roofing Company, LLC Michael's Roof Service

5-9 YEARS Olsson Insulation Kifer Construction Gruhn Homes Sandrini Restoration, LLC Knutson Plumbing Johnston Construction RW, LLC Seabrook Construction Phillips Burgess, PLLC John Easter Roofing and Gutters Inc.

10-14 YEARS EnviroTech Contractor Services, LLC South Sound Solar/Sustainable Electric C.T. Building, Inc. Active Enterprise, Inc.

15-19 YEARS Olympic Iron Works, LLC J T S General Contractor, LLC Pape Machinery, Inc. Plumb Line Plumbing Snell Crane Service, Inc. OSG Dozing, LLC Capital Heating & Cooling G & G Heating House Brothers Construction, Inc. Martin & Martin Construction, LLC Washington Business Bank MDK Construction, Inc.

20-24 YEARS Mixx 96.1 KXXO Skyline Pump & Machine Co, Inc. 2-10 Home Buyers Warranty Brown Building Contractors Precision Pipe Fabricators

25 YEARS John's Plumbing & Pumps, Inc. Boistfort Valley Water Lakeside Industries, Inc.

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