2005 Legislative Session Ends – AWB Scores Significant Victories in a Difficult Political Environment
On Sunday, the 2005 legislative session was finally adjourned. Despite a political environment in Olympia, which was often less than sympathetic to business’s concerns, AWB’s top-notch lobbying team was able to score some important victories in 2005. AWB played an instrumental role in stopping “pay or play” health care, which would have forced businesses with 50 or more employees to pay for employee health insurance or pay an expensive tax to enroll them in the state’s Basic Health Care Plan. AWB helped stop the onerous family leave bill and blocked protectionist offshore outsourcing legislation that would have hurt Washington’s trade dependent economy. After it was decreased last year, AWB successfully pushed to return the research and development tax incentive rate to 1.5 percent over the next four years. In addition, AWB played a leading role in passing HB 1625, which will finally allow employers to give honest employee references without fear of lawsuits. Finally, we also helped pass a transportation package that makes big strides toward paying for the transportation infrastructure this state so desperately needs in order to remain competitive. When AWB speaks, Olympia still listens…even in a difficult political environment.
Final State Budget Emerges – State Spending Will Climb by 12 Percent
As the Legislature wound down this weekend, lawmakers settled on increases of 60 cents a pack for cigarettes and $1.33 a liter on hard liquor at liquor stores and reinstating the death tax to fund the $26 billion operating budget and transportation funding plan. Even though our state will generate seven percent more revenue in the next two years, state spending will climb by 12 percent. AWB requested that the Legislature work harder to find additional state spending cuts in place of the tax increases adopted. The $26 billion question: “Can we sustain this type of spending without a major tax increase in 2007?” Contact AWB’s Tom McBride at (360) 943-1600 or TomM@awb.org.
Bill to Kill UI Reforms Signed by Governor – Washington State Takes a Big Step Backwards
Last week Gov. Gregoire signed legislation to reverse the 2003 unemployment insurance reforms. Although AWB lobbied hard to kill EHB 2255, we were unable to get enough Democrats to buck union pressure and allow the 2003 UI reforms time to work. AWB is very disappointed that the governor signed this bill, which is a major setback for Washington’s business competitiveness. In fact, new estimates show that this legislation will likely drain as much as or more than $200 million from the UI Trust Fund over the next few years. “We're shifting the transmission in reverse and slamming on the accelerator!" Rep. Luke Esser, R-Bellevue, commented on this regressive bill. We better hope the economy doesn’t go sour or employers could see UI tax increases like they did in 2003 and 2004. Contact AWB’s Mellani Hughes McAleenan at (360) 943-1600 or MellaniM@awb.org.
UI Study in the Offing - AWB Officers to Help Decide Business Representatives
EHB 2255 sets up a study of the state’s unemployment system. If we read the legislation correctly, it appears as though AWB is to submit the recommendation for the four business representatives. We will confirm that later this week. If that is the case, we will submit the list of interested parties to our officers to help narrow the candidates to the final four to submit to Gov. Gregoire. Contact Mellani Hughes McAleenan at (360) 943-1600 or MellaniM@awb.org.
Legislature Settles on Transportation Plan – Gregoire Expected to Approve
Under the transportation plan passed by the Senate last week, the gas tax, now 28 cents per gallon, would be increased 9.5 cents over four years – by 3 cents this summer, another 3 cents next summer, 2 cents the following year, and 1.5 cents in 2008. The package also includes new weight fees on cars and passenger trucks and higher driver's license fees and tolls. Motorists in congested King, Snohomish and Pierce counties would be asked to pay more to finance transportation mega-projects. The full gas tax increase would cost most motorists an extra $57 a year, and a new vehicle weight fee would add $10 to the annual car-tab fee. Gov. Gregoire is expected to sign the legislation. AWB worked hard to help pass a transportation package that would fund major transportation infrastructure improvements needed by this state. This plan is a major step forward in addressing that goal. Contact Tom McBride at (360) 943-1600 or TomM@awb.org.
Big Victory for AWB – Gregoire Signs Reference Check Bill Into Law
Last week, Gov. Gregoire signed HB 1625, which protects employers who give honest employee references from lawsuits. AWB worked on this legislation for a long time, and we are pleased that it passed with wide bipartisan support. Contact AWB’s Kris Tefft at (360) 943-1600 or KrisT@awb.org.
California Emissions Bill One Step Away From Becoming Law – Tell Governor “NO!”
Last week HB 1397, the California emissions standards bill, was sent to the governor’s desk after the House concurred with the Senate’s amendments of this bill. The California emissions standards will spike the cost of new cars by $3,000 but won’t improve Washington’s air quality in any meaningful way. Even though the governor supports it, go to www.awb.org, contact her and urge her to veto it. Contact AWB’s Grant Nelson at (360) 943-1600 or GrantN@awb.org.
Governor Signs Employer Notification Bill Into Law – Other Workers’ Comp Bills Expected to Be Signed!
HB 1918, the bill that requires L&I to provide greater notification to employers about workers’ comp claims being filed, was signed by Gov. Gregoire last week. AWB supported this legislation and worked with organized labor to reach agreement on language. AWB believes that by passing HB 1918, communication between the employer, employee, provider and department will increase. With increased communication, workers have a better chance for return-to-work options, and employers have greater opportunities to address safety problems that caused the workers injuries in the first place. The bill also provides the opportunity to decrease litigation since the employer will be informed of the claim earlier in the process. Other workers’ comp bills that AWB supported are also expected to make their way to the governor’s desk for approval. These bills include HB 1856, which requires annual independent financial audits of the workers’ compensation system. AWB believes this bill will provide for greater confidence in the workers’ compensation ratemaking process at L&I. AWB also worked with labor and the trial attorneys to successfully negotiate language on other workers’ compensation bills such as HB 1732 relating to Social Security offsets, HB 1917 relating to rate stabilization, and HB 2185 on residence modifications. Contact AWB’s Amber Carter at (360) 943-1600 or AmberC@awb.org.
AWB Members Contribute over $150,000 to the Session Ad Campaign…Executive Committee Says Continue It!
Over 300 AWB members contributed to the ad campaign designed to keep our state competitive, stop tax increases, prevent the Legislature from adding new costs onto business, and to save the 2003 UI reforms. In all, the campaign spent $300,000 and was helpful in killing some bad business bills. At its spring meeting, AWB’s Executive Committee said: “Keep the effort going this year.” It was a joint effort between AWB, the Washington Roundtable and the Coalition of Washington Business Organizations (COWBO). You can still contribute. Contact AWB’s Don Brunell at (360) 943-1600 or DonB@awb.org.
Border County Competitiveness Study Almost Complete…Will be Unveiled in Spokane at Annual Spring Meeting
As part of our competitiveness effort, the Washington Alliance for a Competitive Economy (WashACE) sponsored a border county competitiveness study aimed at comparing the costs of doing business in Washington, Idaho and Oregon. Dick Davis, Washington Research Council, led the study effort. It’s near completion and will be unveiled at our Annual Spring Board Meeting in Spokane on May 24-25. Make plans to attend the meeting. Contact AWB’s Amy Johnson at (360) 943-1600 or AmyJ@awb.org.
Weyerhaeuser’s Steve Hill is New Health Care Authority Chief
Steve Hill, retired Weyerhaeuser senior vice president of human resources, is the new head of the state’s Health Care Authority. Steve is very capable, and AWB looks forward to working with him. Last Friday, he met with AWB President Don Brunell in Olympia.
Santos & Woods at Final Lobby Lunch – Previewed August NCSL Conference in Seattle
At the last Lobby Lunch of 2005, Rep. Sharon Tomiko Santos, D-Seattle, and Rep. Beverly Woods, R-Kingston, previewed the National Council of State Legislatures (NCSL) convention to be held in Seattle in August.
Remember – AWB Has Returned to Regular Office Hours, Monday-Friday, 8 a.m.-5 p.m.
Engler and Weeks to Speak at Spring Board Meeting – Register Early!
Former Michigan Governor John Engler, the new president of the National Association of Manufacturers, will be keynote speaker on May 24 at AWB’s Annual Spring Board Meeting at the Davenport Hotel in Spokane. On May 25, new L&I director Gary Weeks will speak. Mark your calendars and make your reservations. Contact Amy Johnson at (360) 943-1600 or AmyJ@awb.org.
Do You Know Someone Who Should Be on AWB’s Board? Nominations are Being Taken!
AWB’s Annual Spring Board Meeting is coming soon. At the meeting we will be choosing new members of AWB’s Board. If you know of an AWB member you think should be on our board, please send us that person’s name in nomination form. Deadline: May 23. Contact AWB’s Dick Walter at (360) 943-1600 or DickW@awb.org.
Make Your Hotel Reservations for Policy Summit – “Capitol Steps” Are Coming!
No one satirizes national politics better than the Capitol Steps, the entertaining musical parody group from Washington, D.C. AWB is proud to announce that the Capitol Steps will be the Thursday night entertainment at the Policy Summit on Sept. 22 at the Semiahmoo Resort. Make your hotel reservations now by calling (800) 770-7992 or e-mail: Hotel@semiahmoo.com.
AWB’s HealthChoice – A Great Health Care Alternative!
Looking for affordable, quality health insurance for you and your employees? If so, AWB HealthChoice could be the right choice. Plans offered have deductibles ranging from $250 to $1000, and three Health Savings Account (HSA) options are also available. Companies with a minimum of two employees qualify for coverage. For benefit information, contact Helen Siggins at (866) 448-9577.
AWB Considering Regional Board Meetings in November to Adopt Legislative Positions…Your Thoughts?
AWB will ask our Board to consider canceling its December Board meeting and institute a series of six regional meetings of Board members from those areas during early November to discuss and adopt our legislative program for 2006. The Executive Committee would then meet to finalize the legislative positions in mid-December. Like the idea? Let us know. The Executive Committee will be making that recommendation to the Board on May 25 in Spokane. Contact Don Brunell at (360) 943-1600 or DonB@awb.org.
Does Your Business Have an Updated Leave Policy? AWB is Dusting Off Its Flexible Leave Policy for You!
This year labor unions pushed a mandatory five-week paid family leave bill. It died but will be back. It is part of a nationwide effort to provide paid leave for births and sick children, parents and relatives. The bill would set up a new bureaucracy at L&I to the tune of more than $70 million a year and add 70 to 80 new inspectors to make sure you comply with the law and collect the payroll assessments from your workers. AWB argued that many employers have flexible leave policies which allow the employer and employee to sit down and solve problems. Over the years, AWB developed some flexible leave programs which we are dusting off and will share with our members. Addressing this issue through flexible leave policies may avert another mandatory program at L&I. Contact AWB’s Debra Brown at (360) 943-1600 or DebraB@awb.org.
Washington Business Magazine Going to Press This Week…Look for it in YOUR Mailbox in Early May
The May-June issue of Washington Business Magazine is going to the printer this week. Look for it in your mailbox in early May. Contact AWB’s Ron Dalby at (360) 943-1600 or RonD@awb.org for information.
Labor Law Posters Available – Order Now!
State and federal regulations require various postings be available in a common area regularly visited by employees where they have an unobstructed opportunity to read them. Recently, legislation amended the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) requiring employers to post a new notice providing information about the rights of military service personnel to job reinstatement and other benefits. Posting this information has been mandatory since March 10, 2005. Contact Amy Johnson at (360) 943-1600 or AmyJ@awb.org to order your labor law poster. In the meantime, before you order and receive your AWB labor law poster, you may download, print and post a temporary USERRA-compliant poster from the U.S. Dept. of Labor at www.dol.gov/vets/programs/userra/poster.pdf.
“High UI Benefits Require Workers to Contribute” - See this week’s President’s Perspective at www.awb.org.
