House Democrats Kill Small Business Health Insurance Reform
E2SHB 2572, as amended and approved by the Senate by an overwhelming 42-5 margin, was stripped back to its original form by the House Democrats in the last days of session. Citing a procedural technicality, on a party-line vote, they removed the amendments to the premium assistance for low income employees that would have provided a B&O tax deduction for the costs of health care paid by small employers, rating changes to make health savings accounts less expensive, and the opportunity for insurers to create one health plan that does not contain all of the expensive legally mandated benefits. Contact AWB’s Mellani McAleenan at (360) 943-1600 or MellaniM@awb.org.

Money for Dams Approved 
Just before adjourning, the Legislature authorized $200 million to investigate potential dam sites for water storage. With state help, the federal Bureau of Reclamation is exploring 15 canyons, depressions and other sites in Eastern Washington where dams might be used to store water in winter and spring. Two-thirds of the water would go on crops, and the last third would cool the Columbia in the depths of summer when the river's temperatures grow lethal for salmon. The most expensive dam envisioned could cost $4 billion. It is a start, but lots more money will be needed for construction. Contact AWB’s Chris McCabe at (360) 943-1600 or ChrisM@awb.org.

On-Site Septic Systems Legislation is Signed by Governor
This week Gov. Gregoire signed HB 1458, which addresses failing septic systems located near marine waters. AWB’s Government Affairs Director Grant Nelson, who attended the bill signing ceremony, said “AWB has supported this legislation because of the economic impacts to the shellfish industry caused by poor water quality and failing septic systems. The bill requires local governments and Ecology to provide financial and technical assistance to homeowners to repair septic systems that are degrading shellfish growing areas. $6.5 million in the operating budget and $2.5 million in the capital budget have been appropriated to implement the bill.” Contact AWB’s Grant Nelson at (360) 943-1600 or GrantN@awb.org.

Streamlined Sales Tax Dies in House of Representatives
Governor requested legislation SSB 6594, which would have brought Washington’s sales tax rules in line with the federal agreement, died in the House of Representatives. The Streamline Sales Tax (SST) Project is a national effort to simplify sales and use tax administration, to ease the burden on businesses operating in multiple states, and to create incentives for remote sellers to voluntarily collect sales and use tax.  Washington state will no longer hold a voting position with the Streamline Sales Tax Project as it is not a conforming state. The Legislature adopted many SST provisions in 2003 with the exception of the “sourcing” rule. Under SST, sales tax is to be sourced-based on the destination (where the consumer takes possession) of the product or service. Washington uses origin-based sourcing that is not consistent with SST. A mitigation account to compensate cities for lost revenue is expected to be funded through the new revenues gained from voluntary collection of remote sales with no supplemental reporting requirements. The bill passed the Senate earlier this session by a vote of 48-0, and on March 4, Republican House Minority Leader Richard DeBolt sent a letter to Speaker Chopp that requested a vote for SB 6594 and stated the legislation "will make Washington a more business friendly state," and that he "personally supports the bill." Going into session there was agreement between cities, counties, retailers and general business. AWB lobbied hard for passage of this bill in the 2006 session and is extremely disappointed that Speaker Chopp chose not bring the bill to the floor for a vote. Contact AWB’s Amber Carter at (360) 943-1600 or AmberC@awb.org.

Stadiums, Stadiums and No Arena or Race Track 
While Gov. Gregoire and lawmakers postponed action on a NASCAR track near Bremerton and Seattle’s Key Arena for the Sonics, they put $7 million for minor league ballpark improvements in Tacoma, Everett, Spokane, the Tri-Cities and Yakima. Tacoma’s Cheney Stadium would get $2.5 million of that. Tacoma asked for $10 million to upgrade the stadium built in 1960. Randy Lewis, the City of Tacoma lobbyist, told the Tacoma News Tribune “getting the $2.5 million is a great start and Tacoma will be back asking for more next year.” Meanwhile, students at Washington State University are pondering whether to pay extra to expand Martin Stadium.