Short legislative session, long list of wins for hospitality

The 2022 legislative session was a short 60-day sprint to the finish that had a huge impact on hospitality businesses in Washington. Our message to lawmakers this year was clear: The businesses that define your community are hurting, and recovery is going to be a long, slow process. Members drove that point home, and in the first 60 days of the year, 440 members made three or more engagements with their lawmakers. Here are some of the biggest wins our industry worked together to achieve.

We fought hard to secure relief funding for hospitality businesses through legislation and the state budget including: • $100 million in grant funding for the hospitality industry, $15 million of which is specifically reserved for hotels that were impacted by the eviction moratorium and suffered losses in the form of unpaid stays, legal fees and room damage. • $7 million in relief by reducing liquor license fees by 50% through Dec. 31, 2023.

$200 million providing unemployment insurance relief

This bill extends last year’s relief by capping the social tax at 0.5%, which will provide savings for every business. ESD will reissue rate notices to take effect prior to first quarter payments. The bill also caps the social tax calculation at rate class 7 for small businesses with fewer than 10 employees.

Paid Family and Medical Leave accountability

ESD shared some surprising news early in session by revealing the Paid Family and Medical Leave program would become insolvent without a direct legislative appropriation, which they did receive. We worked to insert significant accountability measures into SB 5649. The bill as passed requires an immediate actuarial audit, creates a temporary taskforce, establishes permanent actuaries inside ESD, and requires an in-depth audit to the Joint Legislative Audit and Review Committee.

Thanks to your engagement...

We defeated HB 1837 regarding ergonomics.

This bill would have lifted the 20-year prohibition on the Department of Labor and Industries’ ability to adopt rulemaking on ergonomics in the workplace. Implementing the last ergonomics rule passed by the legislature cost businesses hundreds of thousands of dollars, leading to a 2003 initiative which overturned it. HB 1837 was amended to directly target the lodging industry by exempting many professions but leaving housekeeping staff eligible under the bill. Defeating this bill was a tough battle. It was a priority for some large interest groups, and it was the topic of an all-night floor debate. Our members played a crucial role in stopping this bill by engaging with legislators on this issue. We expect to see it again next year.

We stopped SB 5371 imposing a sugary beverage tax.

This bill would have added a $.0175-per-finishedfluid-ounce tax on sugary beverages (soda products, juices, etc.) to fund public health services and health equity initiatives. This tax would have almost doubled the cost to purchase a five-gallon bag of soda concentrate and our members made the harmful effects of this bill clear by writing legislators in the Senate Health Care Committee where the bill died.

We defeated HB 1698, which would have banned latex gloves in food establishments.

Another bill that we can expect to see again in the future is HB 1698 which would have prohibited the use of latex gloves in food establishments starting January 2024. The bill failed to move out of committee, but we are working to find a solution to this issue in the interim. Notably, the updated state Food Code makes it easier for businesses to apply for waivers to allow bare hand contact with ready-to-eat foods. This could save your business money and avoid disruption to your operations should a bill like this eventually pass.

We defeated SB 5903 concerning multimodal transportation for drive up establishments.

SB 5903 would have required operators with a drive-thru to allow pedestrians, bicyclists and other nonmotor vehicle modes of transportation to use the drive-thru. This would present liability for our members who would be forced to build a second drivethru for these guests under the bill if the existing drive-thru lane were deemed unsafe. We stopped it this year and are preparing for a similar fight next year.

As this summary demonstrates, we have one of the most talented government affairs teams in the state. But they’ll be the first to say they wouldn’t be able to be as effective in their jobs without the support and engagement of our members.

Many people believe their voice doesn’t matter when it comes to politics and policy making. Nothing could be further from the truth. Time and time again we see just how important your voice is in influencing public policy.

This was a short 60-day session. Legislation moved quickly, which meant we needed to move quickly as well to support the policies that benefited our industry and oppose the bills that would do harm. Your willingness to respond to our action alerts made a huge difference in those efforts.

The 2022 legislative session could have resulted in a diversion of lodging tax revenue away from tourism, new ergonomics rules that would have cost lodging properties millions and a ban on latex gloves. Each of these measures was defeated in large part because of your messages to lawmakers.

While we should take time to celebrate these victories, the work doesn’t end here. These issues, and many others, are likely to return during the 2023 session. Your GA team is already working with lawmakers and stakeholders on strategies to address these issues next year. The time will come once again when your engagement with lawmakers will be crucial to protecting our industry.

Thank you for answering the call and engaging in the legislative process. Your voice truly does make a difference!

More wins and more defeated bills

SB 5513 – Expanding flexibility of existing lodging taxes for affordable workforce housing

Local government were back again this year looking to raid needed local tourism funding for general government purposes and again we were able to block the attempts. After SB 5513 was introduced early in session, we sent out an action alert and members acted quickly by sending a strong message in opposition to the bill. We were then able to meet with the sponsor of the bill to identify other funding sources (contained in SB 5868), to protect local tourism funds. SB 5868 expands the use of a local taxing option for economic development for the infrastructure for affordable workforce housing. We supported the alternative approach and the bill passed.

Qui tam

2SHB 1076 would have allowed thirdparty “relators” to bring a lawsuit against a business for any alleged labor violation, rather than utilize the current Labor and Industries Agency.

Consumer data privacy

2SHB 1850 would have included a private right of action as well as significant fees that would have impacted our industry. We opposed the bill and it failed to pass this year. This policy will likely be introduced next year as well.

Foodservice packaging

SB 5658 would have required foodservice packaging, like clamshells and single-use cups, to meet a recycled content standard by 2030. The association spent significant time on this during the interim and will continue to monitor as this issue will likely return next year.

Workers’ compensation

SB 5801 would have required employers who appeal an L&I ruling to pay for all attorney and witness fees on behalf of the employee if the court ruled in favor of the employee, creating barriers to an employer’s ability to appeal a decision.

In-home kitchens

E2SHB 1258 would have allowed food businesses that are considered a microenterprise to prepare, cook and sell food out of a home. This bill would have also allowed these small businesses to operate a food business with exemptions from the food code. ■