Tag Archives: Senate Bill 5096

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.

Committee backs bills to hold felons, corrections officers accountable

Note: The following e-newsletter was sent to Sen. Padden’s subscribers Feb. 3, 2023. To subscribe to Sen. Padden’s newsletter, click here.

Dear friends and neighbors,

Officers who work in Washington’s correctional facilities are part of the law-enforcement community just as much as the officers who patrol our communities and investigate crimes. Like all the other people we entrust to administer justice, corrections officers must be held to a high standard, especially considering the unique level of authority they have over people in custody.

The crime of first-degree custodial sexual misconduct is already a Class C felony, but that unfortunately does not seem to be having the appropriate deterrent effect. I introduced Senate Bill 5033 to reclassify this crime as a Class B felony, which would allow a prison term of 10 years instead of the current five-year maximum.

The Law and Justice Committee heard testimony about the bill on Monday, as reported by KING-TV in Seattle (click here to view the report). The committee unanimously passed SB 5033 yesterday. I expect it will be sent to the Senate Rules Committee, which acts as a final gatekeeper before bills that have been passed by other Senate committees can reach the Senate floor.

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

Panel hears bill requiring pursuit of community-custody violators

One of the problems with Washington’s criminal-justice system is the state Department of Corrections’ failure to prioritize the pursuit of felons who have violated terms of their community supervision, which leaves them free to commit more crimes.

Senate Bill 5226 aims to address that problem. It would require the Department of Corrections to prioritize staffing to pursue active warrants for community-custody violators. In doing so, my bill tries to refocus the agency on its highest duty, which is public safety – because that duty is not being carried out if arrest warrants are going unserved.

This proposal resulted from a 2016 Senate investigation into the premature release of about 3,000 prisoners from the Department of Corrections. Information related to that investigation can be viewed here.

Offenders who have warrants out on them are more prone than others to reoffend. By serving these warrants, we can see some positive changes, including the possibility that these people will not reoffend.

Spokane County Prosecuting Attorney Larry Haskell, Spokane County Sheriff John Nowels and Spokane Police Chief Craig Meidl testified remotely from Spokane in favor of the proposal. Their willingness to offer support is greatly appreciated; that testimony can be seen here.

DUI ‘lookback’ bill clears
second committee hurdle

The Senate’s 12 policy committees have until Feb. 17, or a little more than two weeks from now, to act on Senate bills. When a bill passed by a policy committee has a budget component, it almost always goes before a fiscal committee as well. That means more work for the Senate’s two fiscal committees, which is why they are given an additional week to decide which bills move ahead.

My Senate Bill 5032, known at the Capitol as the DUI “lookback” bill, received the Senate Transportation Committee’s endorsement on Monday. It aims to reduce impaired driving in Washington, and had already been approved at the policy level, by the Senate Law and Justice Committee.

The Senate’s 12 policy committees have until Feb. 17, or a little more than two weeks from now, to act on Senate bills. When a bill passed by a policy committee has a budget component, it almost always goes before a fiscal committee as well. That means more work for the Senate’s two fiscal committees, which is why they are given an additional week to decide which bills move ahead.

My Senate Bill 5032, known at the Capitol as the DUI “lookback” bill, received the Senate Transportation Committee’s endorsement on Monday. It aims to reduce impaired driving in Washington, and had already been approved at the policy level, by the Senate Law and Justice Committee.

SB 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.

Transportation is a fiscal committee, and ordinarily a bill that has received fiscal-committee approval proceeds directly to the Senate Rules Committee. For some reason – perhaps because it would increase the prison population, which costs money – SB 5032 is instead headed for Ways and Means, the Senate’s other budget committee. Considering half of the sponsors of this bill are also members of Ways and Means, this added stop should not be a roadblock.

Other bills still moving:

  • Senate Bill 5218, which would provide tax relief to people who require specialized, medically prescribed equipment such as custom wheelchairs — “complex rehabilitation technology products,” as the legislation puts it. SB 5218 is scheduled for a public hearing Feb. 7 before the Senate Ways and Means Committee, after receiving approval from the Senate Health and Long Term Care Committee.
  • Senate Bill 5096, which would aid businesses looking to adopt an employee stock ownership plan (ESOP), is also before the Senate Ways and Means Committee after being passed last week by the Business, Financial Services, Gaming and Trade Committee. Ways and Means has through Feb. 24 to take action.

Washington has a shortage of homes that people can afford to buy – especially those looking for their first home – and the staggering cost of regulations is a big reason why. The Building Industry Association of Washington recently compiled the latest numbers showing how the cost of a home is inflated by a variety of government-controlled factors. I am a co-sponsor of Senate Bill 5027, to promote housing affordability and home construction; it has received a public hearing before the Senate Housing Committee, a new panel for 2023.

West Valley student
serves as Senate page

It is a joy to see young people from across our state come to the Capitol to serve as pages for the Legislature. This week I had the honor of sponsoring Hadassah Duff as a Senate page. She is the 15-year-old daughter of Jaime Colds-Duff and Rocky Duff of Spokane, and a sophomore at West Valley High School. Hadassah is involved in cross country and track, National Honors Society, and is the president of her school’s HOSA (Health Occupation Students of America) club. 

Celebrating and honoring
Americans of Chinese Descent

Those of us serving in the Legislature know January as the month that our annual sessions begin, as specified in Washington’s constitution. If Senate Bill 5000 becomes law, January will also become “Americans of Chinese Descent Month” in our state.

The Senate passed SB 5000 unanimously this week, with the prime sponsor – Sen. Keith Wagoner, R-Sedro-Woolley – noting how the designation is a perfect fit for Washington, as Americans of Chinese descent make up the largest percentage of Asian-Americans in our state.

This bill also would encourage public schools to remember and honor the many contributions and achievements made by the Chinese-American community, and designate time for appropriate activities in commemoration of our state’s complicated history with the Chinese community – “the good and the bad,” as Senator Wagoner put it.

There’s a heartwarming tie between this bill and our legislative district, as I noted when speaking in the Senate chamber prior to our vote (click here to view my remarks). In January, Central Valley High School student Lucy He received a legislative certificate of appreciation for winning the Chinese American History Month national essay contest, sponsored by Asians for Equality – a group that also testified in support of SB 5000 at the committee level.

The connection became deeper when Dr. John Parker, the Central Valley School District’s new superintendent, also spoke in favor of the legislation, with a compelling recollection of the three years he and his wife, Ashley, spent at Shanghai Community International School in Shanghai, China.

The Senate unanimously passed a version of this legislation in 2022, but it was not brought to a vote in the House. Hopefully SB 5000 will become law this year, so we can mark Americans of Chinese Descent Month in 2024; either way it was uplifting to hear senators offer their respect to those in the Chinese-American community before passing the bill.

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.

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.