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The Gristle

The winter of our discontent

Wednesday, February 6, 2013

THE WINTER OF OUR DISCONTENT: Beneath a pavement of endless asphalt, the twisted remains of a brutal hunchbacked tyrant were exposed last week. (Oh, and the skeleton of Richard III was identified buried in a parking lot in Leicester.)

The Building Industry Association of Washington (BIAW)—”once the biggest, baddest, best-financed conservative political organization in the state,” as political commentator David Goldstein notes—suffered another crippling blow last week when a state appeals court not only upheld a lower court ruling that found BIAW guilty of skimming millions of dollars from members’ trust funds, but overturned the lower court ruling that BIAW was not responsible for repaying skimmed interest. As a result, the trade association must ultimately repay members hundreds of thousands of dollars more than it would have had BIAW not appealed.

Be careful when you ask for a reconsideration. You might get it.

BIAW members pay into a collective insurance pool, a program that returns a rebate to members when they are able to improve worker safety and reduce injury. For years, the BIAW was skimming 20 percent of this rebate to wage a corrosive political war against the state’s environmental and growth laws.

Members had sued the BIAW for skimming $20 million in “marketing fees” and using the money to fund political campaigns, including more than $8 million spent on behalf of Republican Dino Rossi’s 2008 campaign for state governor.

“Eight small companies filed lawsuits seeking to hold BIAW accountable for breach of trust and to require the BIAW to return wrongful profit back to over 10,000 BIAW members who participated in the BIAW’s retrospective rating (‘retro’) program,” Seattle attorney Knoll Lowney explained. “Under retro, BIAW members earned hundreds of millions of dollars in tax refunds and the State of Washington paid all these refunds to the BIAW. The BIAW agreed to hold these refunds ‘in trust’ for its member participants, but instead commingled the trust funds with its own moneys and skimmed interest and principal from the trust for its own use.”

The state court agreed with the reasoning in 2010, but did not require BIAW to repay monies skimmed from the fund. The organization filed an appeal. The appeals court agreed with the lower court, except on one point: Interest from skimmed funds needs to be repaid, in the amount of approximately $400,000. The decision also awarded hundreds of thousands of dollars in attorney fees to the builders who brought the original suit.

Weakened by the collapse of the building industry in 2008 and again through a series of lawsuits, BIAW operatives intend to demonstrate that even a decapitated tyrant can still carry disease.

In November, the organization launched a counter­offensive against efforts to prevent the trade association from engaging in brutal, bruising politics, including local elections. The BIAW asked the state Court of Appeals to publish a ruling the court issued in October that found the organization might be considered a political action committee, subject to all the stringent reporting requirements imposed by the state Public Disclosure Commission.

By publishing the unpublished decision, the court would add the ruling to the canon of state law, and it would apply to every organization that raises money to elect politicians. Every trade association, every environmental and political-activist group, and every labor union that operates its own PAC could be required to provide a full accounting of its activities to the PDC.

That bit of sour grapes mischief triggered a wave of friendly supporting briefs from strange bedfellows, four of the state’s most politically active labor organizations, joining BIAW to overturn the court’s opinion on what constitutes a PAC.

The reversals and reprisals serve as reminders of the long and costly damage the reactionary warfare against reasoned land-use and environmental policy has done—and continues to do—to communities across the state like Whatcom County.

The war is financed by deep pockets like the BIAW and Realtors PACs; organized into shadow movements like Wise Use and the Citizens’ Alliance for Property Rights (CAPR). Its footsoldiers are the aggrieved moms-and-pops, elderly property owners with a “nest egg” to protect, their retirement bound up in some ill-advised property purchase with an upzone understood as trigger to the “investment.” These footsoldiers are essential, lending a sweet face to a realm that is frequently bitterly at odds with public opinion. Its dual weapons are the upzone and the vesting privilege—the first, imposed by political mischief, creates artificial wealth where none existed; the second, protected by the courts, locks in the wealth, so that fraud granted in political heat and election backlash cannot be ungranted.

The weapons yield the illusion of permanence, that “it’s always been this way,” and that the hardheaded response of county policymakers to the state’s 20-year-old growth management laws represent somehow a principled and sacrosanct natural order. No; 90 percent of the compliance issues have come into focus since that law has passed, were introduced in defiance of that law, and violations need to be rolled back in accordance with that law.

It’s what prompted Kathy Kershner, president of the Whatcom County Council, in an otherwise intelligent inter­view on KGMI a few weekends back, to mourn the loss of property value as investments to people who had no expectation of an upzone under current law. They had, in other words, no right or reason to expect that county government would violate state law to grant them personal wealth.

It’s what prompted Kershner’s dimwitted amateur host to afterward read from Mein Kampf, the screed of tyrant Adolf Hitler, as though that provided insight or parallel to Whatcom County. Better, perhaps, might’ve yielded Richard III:

“And thus I clothe my naked villany
With odd old ends stolen out of holy writ;
And seem a saint, when most I play the devil.”

SVCR Don McLean
Past Columns
Washington v. Trump, 2

February 15, 2017

Washington v. Trump

February 8, 2017

Between East and West

February 1, 2017

Beachhead

January 25, 2017

Stormin’ ORMA

January 18, 2017

Stormwater Rising

January 11, 2017

Knockout Blows

January 4, 2017

Continental Divide

December 28, 2016

Auld Lang’s Decline

December 21, 2016

A tale of two commissions

December 14, 2016

Jack’s Attack

December 7, 2016

Lawless

November 30, 2016

Forever Protecting

November 23, 2016

YOYO vs. WITT

November 16, 2016

REDMAP

November 2, 2016

Civil War

October 26, 2016

Twice Zero

October 19, 2016

Convergent Streams

October 12, 2016

Blockadia

October 5, 2016

A Stitch In Time

September 28, 2016

Events
Today
KMRE broadcaster receives citizen journalism award

5:00pm

17th annual Bellingham Human Rights Film Festival

10:00am|Whatcom County

New documentary focuses human rights film festival

7:52pm

Farm-to-Table Trade Meeting

8:30am|Bellingham Technical College

Community Preparedness

2:00pm|Bellingham Public Library

Baker Backcountry Basics

6:00pm|REI

All-Paces Run

6:00pm|Fairhaven Runners

Putting the kick in cross-country

6:00pm

Dressings, Sauces and Stocks

6:30pm|Ciao Thyme Commons

Prawn Particulars

6:30pm|Community Food Co-op

Tides

7:00pm|Village Books

Books on Tap

7:00pm|North Fork Brewery

MBT Rovers Trove
Tomorrow
KMRE broadcaster receives citizen journalism award

5:00pm

17th annual Bellingham Human Rights Film Festival

10:00am|Whatcom County

New documentary focuses human rights film festival

7:52pm

Community Coffee and Tea

9:00am|East Whatcom Regional Resource Center

Ukulele for Everyone

4:00pm|Everson Library

Garden Design Class

4:00pm|Blaine Library

Handmade Pasta Class

5:30pm|Semiahmoo Resort

Group Run

6:00pm|Skagit Running Company

Kombucha and Kefir

6:30pm|Cordata Community Food Co-op

Frankie Gavin

6:30pm|Leopold Crystal Ballroom

Unsettlers

7:00pm|Village Books

Nothing simple about it

7:00pm

Mike Allen Quartet

7:00pm|Unity Spiritual Center

Panty Hoes

9:00pm|Rumors Cabaret

Bellingham Farmer’s Market Bellingham Technical College
Thursday
KMRE broadcaster receives citizen journalism award

5:00pm

17th annual Bellingham Human Rights Film Festival

10:00am|Whatcom County

New documentary focuses human rights film festival

7:52pm

Incognito

6:00pm|Ciao Thyme

Pasta Faves

6:30pm|Community Food Co-op

Arsenic and Old Lace

7:00pm|Claire vg Thomas Theatre

Ubu Roi

7:30pm|Sylvia Center for the Arts

Between Two Worlds

7:30pm|Make.Shift Art Space

Into the Woods

7:30pm|Whidbey Playhouse

Up the Down Staircase

7:30pm|Squalicum High School

see our complete calendar »

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