Dear WH&LA Lodging Member:

WH&LA currently has 105 bills (actually close to double, as many have companion bills in the other house) on our WH&LA State Issues Tracker, of which 90 are still "live" until session ends in the coming weeks. What this means is that we can only highlight a fraction of those we watch or engage in within our Capitol Insider, so we try to focus here on the issues that we feel we have more than a few members interested in.

Next week, Thursday, Feb. 18, is the last day of regular session for the State Assembly. To get as much accomplished as possible in remaining days, the Assembly is meeting right now today, and will be in session Tuesday, Wednesday and Thursday of next week - each time addressing dozens of bills with different depths of partisan and bi-partisan discussion on each. After Feb. 18, the Assembly leadership has the right to call members back into a "Special Session" if they deem necessary to address issues specified in advance. Other than that option, any bills not passed by the Assembly before adjournment become a moot point for the State Senate, as a bill must pass both houses (in the same identical language) before it can go to the Governor to sign into law. The Senate is not planning to adjourn until sometime in March, possibly even into early April, so they are taking a more paced approach.

WH&LA's Action Day will be next Wednesday, Feb. 17 - the day before the Assembly adjourns and well before the Senate adjourns, which means many issues will still be under "live" consideration. Appointments for Assembly Representatives will provide a unique view into the work they do as attendees will either meet with their key staff or have an opportunity to have their Representative step off the floor right outside the Assembly Chamber to talk about key issues - something most people do not get to experience in visiting the Capitol! Our Contract Lobbyist Kathi Kilgore is working hard to schedule appointments with our attendees, and has said that she thinks she can still get members in if they register by tomorrow (Friday).
Register now online!

 

Now for an overview of just some of our top "live" issues:

Joint Employer Exclusion (SB 422/ AB 578)
This bill excludes a franchisor from being considered an employer of a franchisee or their employees relating to worker's compensation, unemployment insurance, discrimination, minimum wage or wage payment violations, unless the franchisor has agreed in writing to assume that role. This offsets concerns with a recent ruling at the federal level that created new liability for franchisors that could have dramatically impacted the structure of the franchisor/franchisee relationship. Passed the senate Feb. 9, waiting for Assembly Committee vote before an Assembly floor vote is possible.

Liquor License Quotas (SB 535/ AB 612)
This bill expands Class B Liquor License quotas for: 1) a contiguous municipality that is below their quota that sells to another municipality in perpetuity up to 3 additional licenses for a fee not less than $10,000 each and 2) adds up to 2 additional licenses in areas designated as a "Premier Economic Development District" with specified requirements and a fee of not less than $30,000 for each added license. This also includes a new prohibition agains any refunds or rebates of the $10,000 minimum license fees from now on, and revises the 300 seat restaurant exception to the quota to only apply to permanent indoor seating, from now on. Passed unanimously this week in the Senate after passing the Assembly in January, and now goes to the Governor for approval.

Residential Dwelling Rentals (SB 446/AB 583) 

Incorrectly touted as an Airbnb bill, this bill was pursued by the Realtor's Association with two original components aimed to increase the market value of homes and investment homes: 1) exempt properties fitting a broad "residential dwelling" definition from state licensing, safety inspections & fees and 2) preventing municipalities and counties from imposing ordinances that prohibit or overly restrict the rental of residential dwellings of over 7 consecutive days in duration. However, the second portion does allow for ordinances that require local inspections & inspection fees, local licensing & fees, the collection of local room tax, and related "nuisance" ordinances. The WH&LA negotiated an amendment with the sponsor that removes part 1) completely, meaning that these properties would continue to need to be licensed & inspected & pay fees controlled by the state - as the most onerous part of the proposal to our entire industry. Amendment #1 passed the Assembly on Feb. 9, with a second amendment that enables municipalities & counties to restrict these rentals if they exceed 6 consecutive months in any way - unless they are monthly rentals only. The bill was held back from a planned Senate Committee vote this week to address some concerns before voting, but they have a few weeks to go through process - provided it is identical to the Assembly final version.

Room Tax
Two separate bills are currently under consideration; one that we support and one that we strongly oppose!

SB 578/AB 714 on Tourism Entity Changes to the Room Tax law is the bill we support to help WACVB and WMC- Chambers of Commerce organizations receive clarity that existing CVB's and Chambers of Commerce currently receiving room tax revenue for tourism promotion and tourism development can be considered Tourism Entities under the revised room tax statutes. In addition, for Tourism Entities serving a zone (multiple communities) a component allows them to have on their Board a minimum of 4 lodging representatives instead of requiring one per municipality, due to the logistical challenges. This bill passed out of both the Assembly and Senate committees and is scheduled for an Assembly vote on Feb. 16, with a Senate vote yet to be scheduled. It is hopeful that no amendments are pursued during floor votes to ensure no other changes are included at this time.

SB 516/AB 655 on Enabling Room Tax Revenue for Tourism to Instead Go To Economic Development is a bill that threatens the use of local room tax revenue for tourism promotion and tourism development by allowing the tourism portion to be spent on a loosely defined economic development without any requirement to leave any money for actual tourism promotion and tourism development. WH&LA strongly opposes this bill. With no public hearing scheduled in either the Senate or Assembly committees and so little time left in session, we believe that our voices against this concept have stopped this bill, however we continue to watch for any last-minute movement.

Owner's Rights with Pest Infestations (AB 857)
This bill was just introduced late last week and while not specifically mentioned in the summary, it would also cover bed bug infestations at lodging properties. This would require DATCP (formerly DHS oversight) inspectors to request permission of an owner to inspect their property when infestation is suspected. If the owner declines, a warrant would be necessary. It also states that DATCP, when finding infestation, must ask the owner to treat the property and if the owner disagrees they have a right to appeal instead of current practice where DATCP may order the treatment if the owner refuses to comply and the owner must pay for the service. DATCP may not proceed with treatment until the appeal is resolved. No hearing is scheduled yet, so it appears unlikely this bill can move fast enough in the Assembly, but we will monitor over the coming days.

Increase in Tourism Marketing Funding (SB 524)
This bill would increase the state Tourism Marketing Budget by $3 million each of the next 2 years ($ 6 million total). Unfortunately, no hearing has been scheduled to date, and no Assembly companion bill has been introduced, so it appears this will likely not move forward.   

WH&LA will continue to try to update you in the coming weeks on these and other bills. The latest information will be provided to Action Day participants next Wednesday,