Tag Archives: employee stock ownership plan

Senate passes Padden bill to benefit employee stock ownership plans

The Senate today unanimously passed Senate Bill 5096, a bipartisan proposal introduced by 4th District Sen. Mike Padden that would aid businesses looking to adopt an employee stock ownership plan (ESOP) corporate structure.

During his floor speech on SB 5096, Padden mentioned the many benefits to employee ownership.

“This bill promotes employee ownership, which I think is a very valuable thing, not only for our employees but for society,” said Padden, R-Spokane Valley. “Studies have shown that employees are happier, they stay in their job longer and they retire in a much better financial position. And the companies are more likely to stay locally.”

Padden added that the bill would help those businesses looking to adopt an ESOP.

“Many current business owners do not have a plan for when they transition out of the business, and employee ownership provides a valuable option.”

SB 5096 specifically would:

  • Create the Washington Employee Ownership Program at the state Department of Commerce to offer technical support and other services to certain businesses considering certain employee ownership structures.
  • Form the Washington Employee Ownership Commission to oversee the program.
  • Provide a business and occupation tax credit for costs related to converting a qualifying business to an employee ownership structure.

The proposal is backed by a very diverse group of supporters, including the Spokane Valley Chamber of Commerce and Schweitzer Engineering Laboratories.

ESOPs are recognized under federal tax law as a qualified defined contribution retirement plan. The ESOP must be designed to invest primarily in qualifying employer securities and meet certain other requirements. The IRS and United States Department of Labor share jurisdiction over some ESOP features.

The bill now goes to the House for further consideration.

Democrats making extreme attempt to expand abortion

Note: The following e-newsletter was sent to Sen. Padden’s subscribers Jan. 26, 2023. To subscribe to Sen. Padden’s newsletter, click here.

Dear friends and neighbors,

One of the most controversial measures before this year’s Legislature received a public hearing Tuesday morning in the Senate Health and Long Term Care Committee.

Senate Joint Resolution 8202, if passed by the Legislature and then by voters statewide, would give constitutional protection to abortion access in Washington.

As someone who is strongly pro-life, I oppose this extreme and overreaching proposal that was requested by Governor Jay Inslee and is sponsored by 16 Senate Democrats. This measure would move our state toward the “abortion anytime, abortion anywhere” goal that many pro-abortion people want to see realized.

Contrary to what our governor might believe, most people have complex and nuanced views on abortion. According to a national Marist Poll last May, only 24 percent of Americans think abortion should be available at any point during a pregnancy, while 68 percent favor some type of restrictions on abortion. This proposed constitutional amendment could open the door for future legislatures in Washington to ease current restrictions on abortions in our state. 

We need to show our humanity and compassion toward the unborn child as well as the mother, and there are proposals this session that reflect this need. For instance, I have sponsored a proposal (Senate Bill 5098) that would ban abortions of unborn children with Down syndrome. One of my colleagues, 7th District Sen. Shelly Short, has introduced a measure (Senate Bill 5227) that would ban abortions based on sex selection – like aborting a girl simply because the parents want a boy.  

There were 622 people who signed up against SJR 8202 while only 325 signed up in favor of it. Among those opposing it was Bishop Frank Schuster of the Archdiocese of Seattle.

Senate Democratic leaders should consider this strong opposition when deciding whether to move their proposal forward.

You can watch TVW’s coverage of the public hearing by clicking here.

Because SJR 8202 is a proposed constitutional amendment, the Legislature cannot enact it alone – the people get the final say. It would require two-thirds approval in the Senate and two-thirds approval in the House to be placed on the statewide ballot for Washington voters to decide in the 2023 general election in November. 

I think most Washingtonians, even those who generally support abortion, would find this proposal too extreme and unacceptable. I’m hopeful the Legislature will not pass SJR 8202, which could result in abortions becoming even more commonplace in our state.

If you have questions about how to participate in state government this year or thoughts to share on anything in this e-newsletter, please give me a call or send me an email.

Thank you, as always, for the honor of serving as your state senator!

Best Regards,

Senator Mike Padden

Committee passes bill helping employee stock ownership plans 

Testifying on SB 5096 before the Senate Business, Financial Services, Gaming and Trade Committee earlier this month.

You might recall that the Senate Business, Financial Services, Gaming and Trade Committee last week held a public hearing on my proposal (Senate Bill 5096) that would aid businesses looking to adopt an employee stock ownership plan (ESOP) corporate structure.

There was good news early this week when the committee approved SB 5096. This measure specifically would:

  • Create the Washington Employee Ownership Program at the state Department of Commerce to offer technical support and other services to certain businesses considering certain employee ownership structures.
  • Form the Washington Employee Ownership Commission to oversee the program.
  • Provide a business and occupation tax credit for costs related to converting a qualifying business to an employee ownership structure.

The bill now goes to the Senate Ways and Means Committee for further consideration.

Committee OKs bill removing red tape for small condominium building construction  

The Senate Law and Justice Committee this morning passed a bill I’ve introduced that would help encourage home ownership in our state by making it easier for smaller condominium buildings to be constructed.

Senate Bill 5058 would exempt buildings with 12 or fewer units that are no more than two stories from the definition of multiunit residential building.

The bill received support from several groups and individuals during its public hearing on Monday, including Spokane Valley City Council member Arne Woodard, who told the committee, “Throughout Washington state, including the Spokane Valley, we need more homeownership opportunities. Condominiums provide a great opportunity for homeownership…To capture homeownership opportunities, we need to change those Washington state laws that are preventing condominiums from being constructed. We need to cut the red tape. Senate Bill 5058 does exactly that for small condominiums with 12 units or less.” 

Other organizations or individuals testifying in favor of SB 5058 included the Building Industry Association of Washington, Master Builders, Washington Realtors and Jim Frank of Greenshore New Beginning Homes. You can watch TVW’s coverage of the bill hearing here.

Spokane teen works as Senate page

It was my honor and privilege to sponsor Spokane resident Alex Lucas as a Senate page this week. Alex, 14, is an eighth-grader at Saint Charles Catholic School. The son of David and Laura Lucas, he is a Boy Scout and enjoys skiing, hunting, fishing and motorsports.

State Supreme Court hears state income tax case today

In 2021, Democratic majorities in the Legislature passed a measure creating a state income tax, despite arguments by Republicans that this proposal was illegal and unconstitutional. Early last year, Douglas County Superior Court Judge Brian Huber ruled that the state income-tax law was indeed unconstitutional, but proponents of the tax appealed in the hope that the state Supreme Court would hear the case and rule in their favor. They are aware that a majority of the nine justices were appointed by Democratic governors who support a state income tax.

The Supreme Court last summer announced that it would consider the appeal. After months of anticipation by those following this contentious issue, the justices are holding its hearing on the state income-tax case today. To watch TVW’s coverage of the hearing, click here. 

Last week, The Seattle Times published an op-ed piece that argued why the state Supreme Court should agree with the Douglas County judge and toss the state income tax out. This part is especially worth reading:

Did you know Washington’s Supreme Court could approve a new “excise tax” that will follow you wherever you go? Did you know that over the past 12 years the state has experienced a 150% increase in tax revenue — from $26 billion to $66 billion? Do you believe that, even with this spectacular increase in revenue that the state Legislature would ever cut “regressive” taxes on sales, gas, soda or liquor?

If you answered no, no, and no, you are not alone.

Next Thursday, Jan. 26, the state Supreme Court will hear arguments about the legality of a new tax. The state Legislature invented this tax in 2021, despite having a $10 billion surplus, under an “emergency” clause. By using the emergency clause, it circumvented the will of Washington state residents who have traditionally had a say on any major tax changes via initiative or referendum. In fact, it is clear the citizens don’t want this excise tax as they rejected it 61% to 39% in a statewide advisory vote in November 2021.

The state also claims that this new tax is a legal “excise tax” on personal income from capital gains. The problem is that an excise tax is typically paid on things like retail sales, gas or liquor and collected where the items are purchased. But this new tax is on your income earned anywhere, which means it’s an illegal excise tax that would follow you wherever you go. Or to put it another way, it’s like Washington state charging you an additional gas tax on gas you bought in Oregon or any other state! 

Meeting with Spokane Conservation District officials

Yesterday morning I met with Brittany Tyler (left) and Vicki Carter (right) in my office to discuss their goal to have a permanent farmers market in the Spokane region. Vicki is the director of the Spokane Conservation District and Vets on the Farm.  We had a good chat. It was nice of Brittany and Vicki to make the long trip to Olympia this week.   

Radio interviews on public safety issues

During a legislative session, radio stations or talk-show hosts in the Northwest reach out to me to comment on bills or issues before the Legislature. The past week was no exception.

After the Senate Law and Justice Committee last week passed my proposal (Senate Bill 5032) to combat impaired driving, KOMO Radio in Seattle aired a story about the committee’s vote to advance it. You can hear my comments from an audio news release that KOMO Radio used for its story.

Earlier this week, Portland-based talk-show host Lars Larson, whose program is carried by many radio stations throughout the Northwest, interviewed me live on the air about bills before the Legislature this session that deal with the possession of hard drugs. You can hear the interview with Lars here.

Contact us!

If you have a question or concern about state government, please do not hesitate to contact our office. During the session we are conducting business from our Senate office in Olympia. We are here to serve you!

Phone: (360) 786-7606

Olympia Office: 215 Legislative Modular Building, Olympia, WA 98504-0404

Email address: Mike.Padden@leg.wa.gov

PLEASE NOTE: Any email or documents you provide to this office may be subject to disclosure under RCW 42.56. If you would prefer to communicate by phone, please contact Sen. Padden’s Olympia office at (360) 786-7606.

To request public records from Sen. Padden, please contact Randi Stratton, the designated public records officer for the Secretary of the Senate and Senate members.

Senate committee passes bill to combat impaired driving

Note: The following e-newsletter was sent to Sen. Padden’s subscribers Dec. 19, 2022. To subscribe to Sen. Padden’s newsletter, click here.

Dear friends and neighbors,

The Legislature is now in the second week of its 2023 session in Olympia. The focus early in this 105-day session is on committee meetings, where many bills that have been introduced so far receive public hearings.

A key issue this session is public safety. While there are several important areas that fall within the public-safety umbrella, one of the most crucial involves the startling increase in traffic fatalities in recent years.

Statistics compiled by the Washington Traffic Safety Commission show Washington road deaths reached a 20-year high in 2021. There were 670 traffic deaths in 2021, including 272 fatalities involving drug-impaired driving and 155 deaths involving alcohol-impaired driving. In 2020, Washington had 574 traffic fatalities, including 214 involving drug-impaired driving and 135 involving alcohol-impaired driving.

The commission has a current preliminary estimate of 745 traffic fatalities in 2022. Figures for traffic deaths involving drug- or alcohol-impaired driving aren’t available yet.

For the third time in three years, the Senate Law and Justice Committee has passed my legislation to combat impaired driving. The committee approved the bill this morning, sending it to the Senate Transportation Committee for further consideration.

Senate Bill 5032 would expand the period for reviewing prior convictions of impaired driving to 15 years, from the 10 years now in state law, when determining whether a new offense of impaired driving is charged as a felony. The proposal would increase the penalty from a gross misdemeanor to a felony offense for any person who has three or more prior DUI offenses within that “lookback” period.

It’s very similar to another proposal I introduced, Senate Bill 5054, which was passed by the Law and Justice Committee and the full Senate during the 2021 and 2022 legislative sessions, including unanimous approval last year. The bill later died in the House both years.

Like its predecessor, SB 5032 has bipartisan sponsorship.

Repeat impaired-driving offenders commit most of the vehicular homicides and vehicular assaults in Washington. This is a measure to try to prevent those horrible, senseless crimes. Four years ago, I was out driving here in Olympia on a weekend on I-5. Right at the Pacific Avenue exit I saw the remains of a crash in which a 17-year-old Hispanic woman from the Tri-Cities was killed. They were changing a tire on the shoulder and a repeat drunk driver crashed into them on the shoulder. 

Many similar traffic fatalities in the state involve drivers who have had as many as eight DUI offenses, but the current 10-year lookback period is not long enough to allow the state to impose stronger punishment against such offenders. It’s common sense to extend the lookback period 15 years instead of the current 10 years.  

This year’s bill also would give offenders a chance to undergo treatment with the hope they eventually will no longer have a problem with alcohol or drugs.

While we can’t blame drunken driving and drug-impaired driving entirely for the alarming increase in traffic deaths over the past few years, preventing impaired driving should be a key goal in our state. We’ve seen too many accidents and fatalities caused by drunk and drug-impaired drivers, especially repeat offenders. This bill should help get the most dangerous drivers off the road and into treatment.

The bill received supporting testimony from several people and organizations, including Gov. Jay Inslee’s public safety policy official, the Washington State Patrol and the Washington Association of Sheriffs and Police Chiefs. 

TVW’s coverage of the public hearing on SB 5032 can be viewed here.

I am optimistic this will be the year the Legislature finally passes this important proposal.

If you have questions about how to participate in state government this year or thoughts to share on anything in this e-newsletter, please give me a call or send me an email.

Thank you, as always, for the honor of serving as your state senator!

Best Regards,

Senator Mike Padden

Bill helping employee stock ownership plans receives committee hearing  

Last Thursday, the Senate Business, Financial Services, Gaming and Trade Committee held a hearing on one of the proposals that I introduced before session even began. Senate Bill 5096 would aid businesses looking to adopt an employee stock ownership plan (ESOP) corporate structure.

The bipartisan proposal aims to do three things. It would:

  • Create the Washington Employee Ownership Program at the state Department of Commerce to offer technical support and other services to certain businesses considering certain employee ownership structures.
  • Form the Washington Employee Ownership Commission to oversee the program.
  • Provide a business and occupation tax credit for costs related to converting a qualifying business to an employee ownership structure.

Last week’s public hearing on SB 5096 went well. You can view TVW’s coverage of my testimony on the bill by clicking here.  Several people from different business-related organizations, including an official with Schweitzer Engineering Laboratories in Pullman, also testified in support of it. TVW’s coverage of their testimony on the proposal can be viewed by clicking here.

The next step is for the committee to approve it. I’m hopeful that will happen sometime in the next few weeks.

During its annual meeting last November, the Spokane Valley Chamber of Commerce held a panel discussion on ESOPs to promote employee ownership of businesses. During the event, I took part in a  discussion on how businesses can implement this policy and possible legislation to help implement ESOPs. Several chamber members who attended the panel presentation said they were enthused by it, which was encouraging.

Meeting with constituents about early childhood education

Last week I enjoyed having a meeting in my Olympia office with two Spokane-area residents to talk about the importance of early childhood education. With me were Tami Boone (left) of Riverside and Rachel DeDomenico (right) of Spokane. Both are family services specialists with the Early Childhood Education and Assistance Program. 

District survey results

About a week before Christmas, our office mailed out a presession survey to households throughout the 4th Legislative District. In the few weeks since the survey was sent out, our office has received about 600 responses from constituents. We appreciate everyone who took time out of their busy lives to answer the questions and mail the survey back to my Olympia office! Here are the results from the survey as of last week:

Question 1: Washington’s revenue forecast indicates a surplus of $3.9 billion for the current 2021-23 biennium and just over $5 billion for the 2023-25 budget cycle. Should taxpayers receive tax relief from the Legislature due to high inflation’s impact on family budgets?

87% said yes.

12% said no.

1% didn’t respond or had a different response.

Question 2: If you think the Legislature should provide tax relief for Washingtonians, what type of tax relief do you most favor?

13% favored a decrease in the state property tax.

7% favored a decrease in the sales tax.

7% favored a decrease in the gas tax.

11% wrote in multiple decreases in taxes.

56% favored decreases in all of the taxes listed above.

5% said none.

Question 3: Recently the majority party in Washington decriminalized fentanyl, meth, heroin and other hard drugs for the first two offenses. What position should the 2023 Legislature take with regard to hard drugs?

11% said possession or use of hard drugs should stay decriminalized in Washington.

86% said possession or use of hard drugs should return to being a felony in Washington.

3% didn’t respond or had a different response.

Question 4: The Legislature in 2021 passed a state law changing the standard for law-enforcement officers to pursue suspects in vehicles from reasonable suspicion to probable cause. This has made it far more difficult for law enforcement to pursue suspected criminals. What do you think?

89% said the Legislature should change state law to again make it easier for law-enforcement officers to pursue suspects.

10% said the current law is fine as it is.

1% didn’t respond or had a different response.

Question 5: The State Building Code Council recently voted to essentially ban the use of natural gas to heat new homes and apartments and instead use heat pumps. What do you think?

12% agreed with the Building Code Council that natural gas should be banned from new homes and apartments.

86% said natural gas should still be allowed to heat new homes and apartments.

2% didn’t respond or had a different response.

Question 6: Many Washington students suffered learning loss due to the COVID-19 pandemic and policies implemented by some school districts that resulted in the closing of schools and reduction in classroom time. What do you think is the best way to help students overcome learning loss?

25% said curriculums need to change.

17% said more or redirected funding (funds follow kids, tutors, alternatives to public school, more teachers, etc.).

8% said we need to keep schools open and end all COVID restrictions and eliminate online classes.

22% said kids need a make up a school year, or that school should be extended through summer, etc.

28% didn’t respond or had very unique opinions.

Two local teens serve as Senate pages

This week I had the privilege of sponsoring two Senate pages from the Spokane Valley: Abby Lind (left) is a freshman at Ridgeline High School. Abby lives in Greenacres, plays the violin, competes in tennis and softball, and is involved in the school orchestra. Hailey Huff (right) is a freshman at University High School. Hailey lives in Mead and is involved in Future Business Leaders of America, Key Club, tennis and youth group. It was nice to meet Abby and Hailey this week!  

Contact us!

If you have a question or concern about state government, please do not hesitate to contact our office. During the session we are conducting business from our Senate office in Olympia. We are here to serve you!

Phone: (360) 786-7606

Olympia Office: 215 Legislative Modular Building, Olympia, WA 98504-0404

Email address: Mike.Padden@leg.wa.gov

PLEASE NOTE: Any email or documents you provide to this office may be subject to disclosure under RCW 42.56. If you would prefer to communicate by phone, please contact Sen. Padden’s Olympia office at (360) 786-7606.

To request public records from Sen. Padden, please contact Randi Stratton, the designated public records officer for the Secretary of the Senate and Senate members.