Bill Summary – FastDemocracy

H-0817.1
                           SUBSTITUTE HOUSE BILL 1045
     State of Washington         68th Legislature       2023 Regular Session
     By House Human Services, Youth, & Early Learning (originally
     sponsored by Representatives Berry, Peterson, Ryu, Simmons, Goodman,
     Bateman, Reed, Ramel, Pollet, Street, Senn, Doglio, Macri, Mena,
     Wylie, Gregerson, and Ormsby)
     READ FIRST TIME 01/26/23.
      AN ACT Relating to creating the evergreen basic income pilot
  program; amending RCW 74.04.005, 43.216.1368, 43.185C.220, 74.04.805,
  26.19.071, and 70.170.060; reenacting and amending RCW 10.101.010;
  adding a new section to chapter 43.216 RCW; adding a new chapter to
  Title 74 RCW; and creating a new section.
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     NEW SECTION.    Sec. 1.    The legislature finds that economic
 inequality continues to widen the gap between the top few earners and
 working and low-income families, and between white Washingtonians and
 Washingtonians of color. The 2021 "Labor Market and Economic Report"
 produced by the Washington state employment security department
 paints a grim picture: Corporate profits increased by over 500
 percent from 2000 to 2021. While everyday Washington residents filed
 more unemployment claims than ever with the onset of the COVID-19
 pandemic, corporate profits in Washington grew by 23 percent between
 2020 and 2021. The average monthly wage for black Washington workers
 in 2021 was 76.9 percent of what it was for Washington workers
 generally. Average pay for Asian Pacific Islanders in 2021 was 69.2
 percent of the average for Washington workers generally; for Latino
 or Hispanic workers, the figure was 68.3 percent. In 2021, women
 workers in Washington made 65.7 percent of men's income. A guaranteed
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 basic income would help Washingtonians struggling under the weight of
 historical inequities and present-day disparities.
     The legislature further finds that 22 percent of Washington's
 adult population has a disability, and more than a quarter of a
 million of Washington residents have impairments related to mobility,
 cognition, dressing, and bathing that may prohibit participation in
 the workforce. A 2021 report generated by the centers for disease
 control and prevention about disability in Washington state urged
 that "everyone can play a role in supporting more inclusive state
 programs to help people with, or at risk for, disabilities."
     The legislature also finds that certain major life transitions or
 conditions are associated with high economic instability, including
 being pregnant or a parent of a young child; experiencing
 homelessness; being an immigrant, refugee, or asylee; exiting from
 the foster care system, the juvenile justice system, or the criminal
 justice system; exiting a relationship or living situation due to
 domestic violence; or having a disability or behavioral health
 disorder. These priority populations disproportionately experience
 poverty.
     The legislature further finds that climate change will spread
 disease faster than in the past, creating a new normal where
 interruption of the labor market, quarantines, and mass-disabling
 events like those seen during the COVID-19 pandemic become more
 common place.
     Therefore,   the   legislature  declares   that  all   Washington
 households deserve basic financial security and that it is the goal
 of the state to ensure economic sustainability for all families. In
 1997, the state legislature created WorkFirst, Washington's temporary
 assistance for needy families program, to aid the state's struggling
 families. Then in 2009, it created the working families' tax credit
 to provide additional assistance to Washington residents and then
 funded the program in 2021. These measures were taken because direct
 cash assistance is a proven way to support people and households
 struggling to cover essential expenses.
     The department of social and health services recently completed a
 basic income feasibility study pointing strongly to the conclusion
 that Washington residents excluded from social and economic well-
 being would benefit from a statewide basic income program. The
 legislature finds that a direct cash assistance program with no
 restrictions or requirements for how recipients use the funds would
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 help   Washington   residents   struggling   under   the   weight   of
 unprecedented income inequalities.
     NEW SECTION.    Sec. 2.    The definitions in this section apply
 throughout   this  chapter   unless   the  context  clearly  requires
 otherwise.
     (1) "Board" or "board of directors" means the board of directors
 established in section 4 of this act.
     (2) "Department" means the department of social and health
 services.
     (3) "Disability" has the same meaning as "disabled" in RCW
 74.62.030(1)(a)(iii)(C).
     (4) "Fair market rent" means the fair market rents for a two-
 bedroom dwelling unit as published by the United States department of
 housing and urban development.
     (5) "Federal poverty level" means the federal poverty guidelines
 updated periodically in the federal register by the United States
 department of health and human services.
     (6) "Homelessness" means without a fixed, regular, and adequate
 nighttime residence.
     (7) "Pilot" or "pilot program" means the evergreen basic income
 pilot program established under section 3 of this act.
     (8)(a) "Resident" means a person who currently lives in
 Washington and:
     (i) Intends to reside in the state, including persons without a
 fixed address;
     (ii) Entered the state looking for a job; or
     (iii) Entered the state with a job commitment.
     (b) A person does not need to live in the state for a specific
 period of time prior to meeting the requirements in this subsection
 before being considered a resident.
     NEW SECTION.    Sec. 3.    (1) The evergreen basic income pilot
 program is established within the department.
     (2) No later than January 1, 2025, the department shall begin
 providing 24 monthly payments to participants who:
     (a) Are at least 18 years of age or an emancipated minor;
     (b) Are a resident of Washington state;
     (c) Have reported gross income that does not exceed 200 percent
 of the federal poverty level;
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     (d) Are experiencing at least one of the following major life
 transitions or conditions associated with high economic instability:
     (i) Are currently pregnant;
     (ii) Are the parent of at least one child under the age of five;
     (iii) Are experiencing homelessness;
     (iv) Are an immigrant, refugee, or asylee;
     (v) Are exiting from the foster care system;
     (vi) Are exiting the juvenile justice system, or the criminal
 justice system and are referred by a law enforcement entity, the
 department of corrections, or the department of children, youth, and
 families;
     (vii) Are exiting a relationship or living situation due to
 domestic violence as defined in RCW 7.105.010;
     (viii) Have a disability; or
     (ix) Have a behavioral health disorder as defined in RCW
 71.05.020;
     (e) Meet the eligibility requirements as established by the board
 of directors; and
     (f) Are selected for participation in the pilot program.
     (3) The board may modify eligibility requirements only if it will
 expand eligibility, provide more equitable participant representation
 in the pilot program, or respond to emergent trends or needs. Any
 changes to the eligibility requirements may only be made with public
 feedback.
     (4) The monthly payment for pilot participants must be equal to
 100 percent of the fair market rent in the county in which the
 participant lives at the time of application. Payment options must be
 available to both banked and unbanked participants.
     (5) No more than 7,500 eligible participants may be selected for
 the pilot program. If the number of qualified applicants exceeds
 7,500, participants shall be drawn using a stratified random sample
 from the pool of qualified applicants, using strata to align
 participants per region with the share of people living in poverty in
 Washington state that reside in that region. Additional strata based
 on eligibility criteria for the pilot program may be used to
 facilitate subgroup analysis in the pilot program evaluation, if
 recommended by the department and contracted evaluator entity or
 entities.
     (6) Qualified applicants in excess of the limit in subsection (5)
 of this section may serve in a control group for data collection
                                     p. 4                         SHB 1045
 purposes. Control group participants will be compensated at a rate of
 $25 per hour up to a maximum of $250 per person.
     (7) The board of directors shall establish a simple and low-
 barrier application process that allows for self-attestation of
 income and life transition or condition. The application must be
 available in multiple languages and formats, including paper, online,
 and in-person assistance.
     (8) The board of directors may not exclude participation in the
 pilot program due to, or request information regarding, a person's
 immigration status, citizenship status, or place of birth, except
 that an applicant qualifying for the pilot program based on
 subsection (2)(d)(iv) of this section may be required to indicate on
 the application that the applicant meets the criteria.
     (9) The department shall provide funding to tribal entities and
 community-based organizations that serve and are substantially
 governed by marginalized populations to pay the costs associated with
 program outreach, assistance completing applications, and related
 activities that directly support the goal of encouraging application
 and participation by people of color.
     (10) The department shall contract with a third-party vendor to
 process and approve applications and provide all aspects of
 operations, including: Eligibility determination, enrollment, cash
 dispersion, administration of control group participant compensation,
 and reimbursement of public benefits lost due to participation in the
 pilot program. The third-party vendor shall share administrative data
 on pilot program operations with the contracted evaluator entity or
 entities to support the program evaluation.
     (11) The pilot program shall offer participants ongoing benefit
 counseling that includes an analysis of whether and how any other
 public benefits may be impacted and ensures informed consent.
     (12) The pilot program shall reimburse any pilot participant for
 the loss of other public benefits due to participation in the pilot.
     (13) The pilot program shall develop easy, efficient, and clearly
 communicated reenrollment plans for participants to immediately
 reenroll in any benefits lost due to participation in the evergreen
 basic income pilot program.
     NEW SECTION. Sec. 4. (1) A board of directors is established as
 a collaboration of the state, tribal nations, and community partners
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 to administer the evergreen basic income pilot program. The board is
 responsible for:
     (a) Providing strategic direction, oversight, and accountability
 of the evergreen basic income pilot program;
     (b) Establishing policies for all phases of the pilot, including
 design, development, outreach, eligibility, enrollment, and data
 collection and use;
     (c) Coordinating with the pilot program's management and
 administrative team, regional directors, evaluation team, and
 community partners for the operation, coordination, and evaluation of
 the pilot program;
     (d) Providing financial and other support to the network of
 community-based   organizations  that   possess  the   knowledge  and
 expertise to best serve their residents;
     (e) Upholding a targeted universalism approach and ensuring
 benefits reach the priority populations;
     (f) Managing public and private resources to maximize the impact
 of a basic income benefit for recipients; and
     (g) Reviewing and approving the final report required under
 section 6(2) of this act.
     (2) The board of directors must consist of at least 18 members
 appointed by the secretary of the department of social and health
 services as follows:
     (a) Two representatives of the department of social and health
 services, one of whom must be a tribal liaison for the department;
     (b) At least one representative of a federally recognized tribe
 from each of the four regions established by the department's office
 of Indian policy;
     (c) One representative of a federally recognized tribe whose
 reservation is largely urban;
     (d) One representative of a federally recognized tribe whose
 reservation is largely rural; and
     (e) Ten representatives from community-based organizations, with
 at least one representative from each of the priority populations
 identified in section 3(2)(d) of this act.
     (3) The board of directors must select a chair from among its
 members.
                                     p. 6                         SHB 1045
     NEW SECTION.   Sec. 5.   (1) To ensure statewide distribution of
 participants in the pilot program, each of the following regions must
 be allotted a maximum number of eligible participants:
     (a) The Salish region comprised of Clallam and Jefferson
 counties, the reservations of the Hoh, Jamestown S'Klallam, Lower
 Elwha Klallam, Makah, and Quileute tribes, and the portion of the
 Quinault Indian Nation that is located within the borders of
 Jefferson county;
     (b) The Thurston-Mason region comprised of Kitsap, Mason, and
 Thurston counties, the reservations of the Nisqually, Port Gamble
 S'Klallam, Skokomish, Squaxin Island, and Suquamish tribes, and the
 portion of the Confederated Tribes of the Chehalis Reservation that
 is located within the borders of Thurston county;
     (c) The great rivers region comprised of Cowlitz, Grays Harbor,
 Lewis, Pacific, and Wahkiakum counties, the reservations of the
 Cowlitz and Shoalwater Bay tribes, and the portions of the
 Confederated Tribes of the Chehalis Reservation and the Quinault
 Indian Nation that are located within the borders of Grays Harbor
 county;
     (d) The north sound region comprised of Island, San Juan, Skagit,
 Snohomish, and Whatcom counties and the reservations of the Lummi,
 Nooksack, Samish, Sauk-Suiattle, Stillaguamish, Swinomish, Tulalip,
 and Upper Skagit tribes;
     (e) The southwest region comprised of Clark, Klickitat, and
 Skamania counties and the portions of the Confederated Tribes and
 Bands of the Yakama Nation and Cowlitz Indian Tribe located within
 the boundaries of Clark and Klickitat counties;
     (f) The King and Pierce region comprised of King and Pierce
 counties and the reservations of the Muckleshoot, Puyallup, and
 Snoqualmie tribes;
     (g) The north central region comprised of Chelan, Douglas, Grant,
 and Okanogan counties and the portion of the Confederated Tribes of
 the Colville Reservation located within the boundaries of Okanogan
 county;
     (h) The greater Columbia region comprised of Asotin, Benton,
 Columbia, Franklin, Garfield, Kittitas, Walla Walla, Whitman, and
 Yakima counties and the portion of the Confederated Tribes and Bands
 of the Yakama Nation located within the boundaries of Yakima county;
 and
                                     p. 7                         SHB 1045
      (i) The Spokane region comprised of Adams, Ferry, Lincoln, Pend
  Oreille, Stevens, and Spokane counties, the reservations of the
  Kalispel and Spokane tribes, and the portion of the Confederated
  Tribes of the Colville Reservation located within the boundaries of
  Ferry county.
      (2) The maximum number of eligible participants per region is to
  be determined according to the share of people living in poverty in
  Washington state that reside in that region.
     NEW SECTION.    Sec. 6.   (1) The department must collect data
 directly from participants in the pilot program and control group.
 Data collected may include such topics as: Age, gender, race,
 ethnicity, geographic location, life transitions or conditions the
 participant   is   experiencing,   household  composition,   health,
 education, caregiving, work participation, income, assets, household
 spending, power and autonomy, belonging, mobility, and economic
 success. The department may not collect data or request information
 or proof regarding a person's immigration status, citizenship status,
 or place of birth except as allowed under section 3 of this act.
 Participants and control group members must have access to any of
 their individual data collected. Directly collected data shall be
 used for program monitoring and evaluation purposes by the department
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