2009 Legislation that may Impact Washington’s Businesses

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Related Agency       Bill # Description Effective Date Type of Change Small Business Industry Impacted     Possible Impact to Businesses
L&I 1055 Requiring workers to have licenses, certificates, or permits in their possession when performing work in certain construction trades 07/26/09 Licensing/Registration Construction

Individuals certified to do work in the electrical, plumbing and elevator trades must carry a copy of their state certification and an official government-issues photo I.D.

 

 

SEC, ESD & DOL 1067 Creation of the new Washington Uniform Limited Partnership Act 07/26/09 Licensing/Registration All

Creates new entity structure option as the LLLP. The structure extends limited liability protection to general partners, not just limited partners.

 

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SEC 1068 Revises provisions of the WBCA 07/26/09 Business Operating Procedures All

Internal action adjustments for business, not related to filing.

 

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OMWBE 1087 Relating to improving the effectiveness of the Office of Minority and Women’s Business Enterprises 07/26/09 Procurement Opportunities All Minority and women business enterprise expenditure reporting by agencies to OMWBE; identification of ways to increase participation of minority and women business enterprises in providing services to the state. *Signed with partial veto.
SEC 1119 Uniform Prudent Management of Institutional Funds Act 05/11/09 Business Operating Procedures All Concerning the management of funds held by nonprofit institutions. The UMIFA is repealed and replaced with the Uniform Prudent Management of Institutional Funds Act. Internal action adjustments, not related to filing.
OMWBE 1166 Relating to allowing loans to community development financial institutions under the linked deposit program 07/26/09 Financial Assistance All Provides additional source of financing for minority and women business enterprises.
OMWBE 1167 Relating to the linked deposit program 07/26/09 Financial Assistance All Reduces amount of the preference to ensure the effective interest rate on the deposit is not less than zero percent. *Signed with partial veto.
SEC 1264 Allows government entities to be registered agents 07/26/09 Registration All

Statutes governing the formation and operation of business entities, including nonprofit corporations, partnerships, and limited liability companies, require those entities to designate and maintain a registered agent. The registered agent is an agent of the entity for the purposes of receiving service of process or other notices on behalf of the entity. A registered agent may be an individual resident of Washington, a domestic corporation or nonprofit corporation, or a foreign corporation or nonprofit corporation authorized to do business in Washington. The statutes governing general partnerships and limited liability companies also allow limited liability companies to serve as a registered agent.

 

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ESD 1338 Qualifying for good cause for filing late reports or taxes 07/26/09 Taxes All

Expands industries that can avoid delinquent tax rates by having good cause for late reports or payments.

 

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L&I 1366 Making technical changes to boiler and unfired pressure vessel statutes 07/26/09 Regulation Commercial Building Owners Extends the inspection interval for boilers in facilities that are publicly owned, and private buildings occupied by public sector tenants. Mostly commercial buildings (large variety of office, retail, banks, real estate, etc.), apartment buildings with 6 families or more and schools, churches (places of public assembly) that would use this type of low pressure boilers for building heat.
L&I 1402 Restricting contact with medical providers after appeals have been filed under industrial insurance 07/26/09 Regulation All

Under specific circumstances, limits contact with medical providers involved in a workers' comp claim. Please select adjoining link and review information about HB 1402 for details.

 

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LCB 1415 Wine at the Legislative Gift Center 07/26/09 Licensing/ Regulation Retail The gift center located in the Legislative Building may sell wine produced in Washington by a licensed winery for off-premises consumption. Wine may be sold only to individuals 21 years of age or older for personal use, and must be purchased from a licensed wine distributor or manufacturer. The gift center must collect and remit applicable taxes to the Department of Revenue. To select wines for sale, the gift center is directed to consult with the Washington Wine Commission, which must consider award-winning wines in assisting the gift center.
LCB 1435 Cigarette/Tobacco Licensing 07/26/09 Licensing Retail LCB is given administrative authority to approve, deny, revoke or suspend cigarette and tobacco licenses.
LCB 1441 Agreements between suppliers and distributors 07/26/09 Regulation Retail The production threshold for excluding malt liquor manufacturers from the definition of "supplier" is changed.
L&I, ESD & DOR 1555 Addressing the recommendations of the joint legislative task force on the underground economy in the construction industry 07/26/09 Regulation Construction

Affects retainage requirements on public works projects, requires construction contractors to maintain an on-site list of subcontractors.

 

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DOR 1579 Relating to a business and occupation tax exemption for nonprofit organizations that provide legal services to low-income individuals 07/26/09 Taxes Non Profits B&O Tax Exemption for nonprofit organizations.
SEC 1592 Registering Businesses with the SOS 07/26/09 Registration All

LLCs can reinstate up to 5 years after admin dissolution (was 2 years). More consistent with requirements on corporations. All foreign and domestic LLPs must have a registered agent in WA. No more Corporation Sole entity types. No new filings. Existing Sole entities will have to file annual reports. Was mostly used by religious Organizations.

 

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DFI 1749 Regulating the business practices of mortgage brokers for compliance with the secure and fair enforcement for mortgage licensing act of 2008 07/26/09 Regulation Mortgage Regulates the business practices of mortgage brokers for compliance with the secure and fair enforcement for mortgage licensing act of 2008.
LCB 1812 Wine Labels 07/26/09 Regulation Wine Standards are placed on the use of the appellation of origin "Washington" claimed or implied anywhere on a wine label.
ESD 1906 Economic Security Act - Unemployment Compensation (enhancing the Shared Work Program; providing benefit charge relief for Training Benefits and State Stimulus Payments) 04/05/09 Benefits & Taxes All

Expands the Shared Work Program so more small employers are eligible to participate and avoid layoffs. Also provides unemployment tax relief for employers whose workers receive State Stimulus increased benefits or Training Benefits.

 

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LCB 2040 Work of joint select committee on beer and wine regulation 07/26/09 Regulation Beer & Wine The following tied-house categories are affected: financial interest/ownership; money's worth; price post & hold; and minimum mark-up.
DOR 2075 Relating to the excise taxation of certain products and services provided or furnished electronically 07/26/09 Taxes All

Change to when tax is collected or not collected on digital products; requirement to file electronically.

 

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DOR 2122 Related to reducing the business and occupation tax burden on the newspaper industry. 07/01/09 Taxes Newspaper

Reduced B&O tax on newspapers; requirement to file electronically.

 

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ORA 2223 Exempting applicants who operate commercial motor vehicles for agribusiness purposes from certain commercial driver's license requirements 07/26/09 Licensing Agriculture Current law requires first time commercial motor vehicle (CMV) driver license applicants to show they have completed an approved driver training course or have an employer's certification of skills and training at time of license issuance. Enacted to help promote public safety and in anticipation of Federal rule-making. DOL rules currently include an agribusiness industry exemption of training and employer certification of skills and training, due to expire January 2, 2010. This bill will exempt drivers in the agribusiness industry from the driver training and employer skills and training certification requirements through June 30, 2011. Such an exemption creates a gap that unscrupulous drivers and employers may use to bypass commercial driver license requirements that apply to all other CMV operators.
ESD 2227 Enacting the evergreen jobs act 07/26/09 Increase jobs Energy/Construction This bill includes several components. It establishes the Evergreen Jobs Initiative to create 15,000 new green economy jobs by 2020 and target 30 percent of the jobs to veterans, National Guard members and low-income and disadvantaged populations; encourages green economy projects at the state and local levels; requires the identification of skills/qualifications needed to perform green jobs and the establishment of relevant educational programs; and authorizes agencies to give funding priority to programs that lead to a credential, certificate, degree or apprenticeship program in green economy jobs.
ESD, DOR & L&I 2331 Document recording surcharge -- services for the homeless 07/26/09 Taxes/Fees All delinquent employers Increases the recording fee through FY2013 for property liens to collect on delinquent taxes.
LCB & DOL 2358 Liquor License Fees Increased 07/26/09 Licensing Restaurant
Retail - Grocery stores, Mini Marts, etc.
According to testimony, small businesses will be hurt by having to pay 10% more for a liquor license the next two years.
ESD 5009 Providing charge relief for unemployment benefits paid due to a returning reservist or National Guard member 07/26/09 Employee Benefits All

Provides unemployment tax relief for employers who must lay off a replacement worker when the regular worker returns from active duty.

 

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L&I & SEC 5042 Providing a waiver of penalties for first-time paperwork violations by small businesses 07/26/09 Regulation All This bill allows state agencies to waive fines, civil penalties, or administrative sanctions for first-time paperwork violations for businesses. Does not apply to revenue collection or public safety matters. There is no impact to Employment Security. L&I Division of Occupational Safety & Health already waives penalties for first-time general safety violations by small business owners, although penalties will still apply for violations that pose an imminent safety hazard.
LCB 5050 Manufactured wine and beer (home brew) 07/26/09 Regulation Beer & Wine Home-made beer and wine need not be consumed in the home where it was produced. Up to 20 gallons of home-made beer and wine may be removed from the home by an adult for private consumption. Use of home-made beer and wine at organized affairs, exhibitions, or competitions is considered private consumption.
LCB 5110 Wine served at wedding boutiques and art galleries 07/26/09 Regulation Catering Wedding boutiques and art galleries may offer one glass of wine or beer without charge to customers at least 21 years of age for on-premise consumption. Wine or beer served must be purchased from a licensed retailer at full retail price. Boutiques and art galleries cannot advertise the service of complimentary wine or beer and employees involved in the service of wine or beer must complete an approved limited alcohol server training program. "Art gallery" and "wedding boutique" are defined.
LCB 5340 Internet and mail order tobacco sales 07/26/09 Taxes Retail Person may not ship tobacco products, other than cigars weighing more than three pounds for 1,000 units, purchased by mail or through the internet to anyone in Washington other than a licensed wholesaler or retailer. A person may not, with knowledge, provide substantial assistance to someone violating this tobacco shipping restriction.
LCB 5367 Nightclub liquor license 07/26/09 Licensing Restaurant May open the industry to some smaller businesses that couldn’t afford to operate as a ‘restaurant’ as the current liquor laws require. Creates a new liquor license for nightclubs - primary business is providing entertainment and the sale & service of alcohol.
DOR 5571 Relating to requiring the use of electronic methods for taxes administered by the Department of Revenue, including filing of taxes, payment of taxes, assessment of taxes, and other taxpayer information 07/26/09 Taxes Monthly tax filers

Requirement for all monthly taxpayers to file and pay taxes electronically to the department.

 

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L&I 5613 Authorizing Labor and Industries to issue stop work orders for violations of certain workers' compensation provisions 07/26/09 Regulation Construction

Allows L&I to issue a stop work order to a construction contractor that has employees and is not registered for workers' compensation insurance.

 

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ESD, L&I & SEC 5688 Expanding the rights and responsibilities of state-registered domestic partners 07/26/09 Employee Benefits All

Expands eligibility for unemployment benefits in family-related situations and modifies requirements on family employment. * On hold subject to Referendum 71. Expands eligibility for workers' compensation benefits when the injured worker has dependents. Expands eligibility for unemployment benefits in family-related situations and modifies requirements on family employment.

 

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GA, OFM, DIS, Printer 5723 Relating to providing support for small business assistance 07/26/09 Business Support All Creates definition of Washington small business to include those with up to $7M in gross revenue + 50 or fewer employees. Creates posting requirements for products and services in a common vendor registration/bid notification system. Requires development of policies/processes that encourage/facilitate purchases from Washington small businesses.
L&I 5793 Concerning a single-occupancy farm conveyance 07/26/09 Regulation Agriculture

Single-occupancy farm conveyances used by a farm operator & farm operator's family members are exempt from L&I permit and inspection requirements. (Single-occupancy farm conveyances are hand-powered counterweighted conveyances that travel vertically in a grain elevator and are located on farms that do not accept commercial grain.)

 

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LCB 5834 Regarding alcoholic beverage regulation 07/26/09 Regulation Restaurant Allows beer/wine specialty shops to sell kegs; private clubs to sell bottled wine for off-premises consumption; creates a winery warehouse for domestic wineries to store and distribute their products; amends the definition of authorized representatives; creates three new tied house exceptions; allows retailer-to-retailer products transfers of 20 cases of wine per year; amends the electronic fund transfer requirements.
L&I 5873 Regarding apprenticeship utilization 07/26/09 Workforce Development Construction Affects requirements for using apprentices on public works construction projects.
L&I 5903 Regarding public works contracts for residential construction 07/26/09 Regulation Construction

Further defines the responsibility of a public agency to determine whether a prevailing wage project is residential or commercial.

 

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L&I 5904 Defining independent contractor for purposes of prevailing wage 07/26/09 Employee Benefits Construction

Defining independent contractor for purposes of prevailing wage that is consistent with the definition of independent contractors for purposes of workers' compensation and unemployment insurance.

 

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ESD 5963 Amending unemployment benefit charging provisions and reducing unemployment tax rates 07/26/09 Taxes All

Corrects a discrepancy with federal law but offsets that cost with tax rate reductions. * Effective 01/01/10 for Tax Rate Year 2010

 

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DOR 5976 Relating to extending tire replacement fees 07/26/09 Taxes & Fees Tire Dealers

Eliminates the expiration date of the $1 tire fee.

 

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ORA 6104 Addressing state agency hours of operation 07/01/09 Business Support All Reduce times available for business owners to conduct business with the state in person.
L&I & ESD 6158 Delaying the implementation of the Family Leave Insurance program 07/26/09 Employee Benefits All

Delays the Family Leave Insurance Program for three years. Benefits are payable beginning October 1, 2012 instead of 2009. Annual reports must be submitted to the Legislature beginning September 1, 2013 instead of 2010.

 

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DOR 6170 Relating to environmental tax incentives 07/26/09 Taxes All This bill provides tax incentives for selected environmental activities and repeals the sales and use tax exemption for hybrid vehicles. * Most parts are effective 07.01.09
DOR 6173 Replacement of Resale Certificates with new, Department issued Resellers Permits 07/26/09 Taxes/Permits All

Will need to obtain department issued Reseller Permit to purchase goods for resale without paying sales tax. Will need to update customers files if they have current blanket resale certificates on file. * Effective 01/01/10

 

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