Six state-wide initiatives poised for November ballot

The following initiatives have submitted petitions to the Secretary of State’s Office by the July 2 deadline:

• I-1053 – Concerns tax and fee increases imposed by state government. This measure would restate existing statutory requirements that legislative actions raising taxes must be approved by two-thirds legislative majorities or receive voter approval, and that new or increased fees require majority legislative approval. (backed by Eyman and AWB). While the initiative does not directly impact cities, we anticipate significant secondary impacts given the constraints this initiative will place on the state.
• I-1082 – Concerns industrial insurance. This measure would allow private insurers to compete with the state Department of Labor & Industries (L&I) to offer employers workers’ compensation coverage, effective July 1, 2012. The measure would also eliminate the worker-paid share of medical-benefit premiums, shifting those costs to the employer. Washington is one of just four states that do not allow private companies to offer workers' compensation insurance, although employers may self-insure under guidance from L & I.

Proponents of I-1082, critical of L & I’s management of the system, say the added competition would bring about efficiencies and lower workers’ comp premium costs. Opponents, led by organized labor and the trial lawyers’ association, argue that introducing the profit motive to the system would actually drive costs up and result in less protection for injured workers. (backed by Building Industry Association of Washington and supported by business and insurance interests)

• I-1098 – Concerns establishing a state income tax and reducing other taxes. This measure would tax "adjusted gross income" above $200,000 (individuals) and $400,000 (joint-filers), reduce state property tax levies, reduce certain business and occupation taxes, and direct any increased revenues to education and health (backed by labor and Bill Gates Sr).
• I-1100 – Concerns liquor (beer, wine and spirits). This measure would close state liquor stores; authorize sale, distribution, and importation of spirits by private parties; and repeal certain requirements that govern the business operations of beer and wine distributors and producers. (backed by retailers including Costco). For more details, see the Municipal Finance section of this Bulletin.
• I-1105 – Concerns liquor (beer, wine and spirits). This measure would close all state liquor stores and license private parties to sell or distribute spirits. It would revise laws concerning regulation, taxation and government revenues from distribution and sale of spirits. (backed by wholesalers) For more details, see the Municipal Finance section of this Bulletin.
• I-1107 – Concerns reversing certain 2010 amendments to state tax laws. This measure would end sales tax on candy; end temporary sales tax on some bottled water; end temporary excise taxes on carbonated beverages; and reduce tax rates for certain food processors. (backed by the American Beverage Association). The Department of Revenue estimated that revenues from the section of E2SSB 6143, enacted by the Legislature in 2010, that suspend the sales and use tax exemptions for bottled water, candy and gum from June 1, 2010 through July 1 2013 would generate $23.7 million for cities and counties.

The complete text of each initiative is available here.

The Secretary of State now has to verify the signatures on the petitions. How long this takes depends on the method used – either random sampling or verification of each signature.

Generally, the random sample method can be used when a ballot measure sponsor submits a total number of signatures that far exceeds the required minimum (certainly the case for I-1100). A random sample check takes about three days while a full check takes eight weeks.

In the weeks ahead, we will provide more information on these initiatives and their potential impacts to cities.

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