They’re Out of Here with a Record-Setting Budget.  The Question is: Can the Economy Sustain It?
Shortly before midnight on Sunday, the Washington State Legislature completed its business for 2007 within the 106-day limit. A two-year state budget that spends about twice as much as projected revenues was passed. “It is the first time a two-year budget exceeded $30 billion,” AWB President Don Brunell said.  The operating budget is $33.4 billion leaving $724 million in reserves. “We hope our revenues will keep pace with spending. The test will come when our economy weakens. Since our tax system is heavily weighted to business, we’re hopeful we do not end up in a situation like 1993 when the Legislature raised taxes on business. 

2007 Legislative Session is Mixed Bag for Business
“It was a mixed bag,” AWB President Don Brunell said. “On a positive note, several bills which AWB considered priorities passed and some of the bad stuff was kicked ahead until next year.” AWB was pleased that a rainy day fund was established but disappointed more funds were not added to it. The paid family leave bill was set up, but implementation was kicked ahead to a task force.  The Legislature was cautious about major health care changes, a plus from AWB’s perspective. Watch for our legislative wrap-up and voting record in the next issue of Washington Business. Check our Olympia Business Watch blog at www.awb.org. 

Health Care Bill Goes to Governor – Big Missed Opportunity
E2SSB 5930, which implements the recommendations of the Blue Ribbon Commission on Health Care Cost and Access, included vital reforms to the small group market that would have allowed lower cost, more flexible health plans for small businesses when it unanimously passed the Senate. Unfortunately, the small group reforms were removed from the bill in the House, and the bill is now a blueprint for a massive and expensive expansion of government involved health care. This measure, which does little to make health care more affordable for small business and may even add costs, was approved by the Legislature and is now on its way to the governor, who is expected to sign it. Contact AWB’s Mellani McAleenan at (360) 943-1600 or MellaniM@awb.org.

Paid Family Leave Bill Approved by Legislature – On its Way to Governor’s Desk
The Paid Family Leave Bill (SB 5659), granting five weeks of paid leave at $250 per week for maternity or bonding leave, was approved by the Legislature, and is on its way to the governor’s desk. A task force of legislators, labor, and business was set up to figure out how to finance and administer the program before it begins in October 2009. According to the fiscal note, L&I will be adding 83 new employees to make the program work. L&I says it is a “conservative” estimate. These folks need a place to work and the fiscal note gives us some office expenses, including 83 “task chairs” at $600 each. That’s in addition to 83 workstations – “systems furniture” – at $6,500 each. Then there’s the $27.7 million set aside for information technology.  There’s more. That two cents may have to stretch a bit – there’s a lot of bureaucracy to cover. Of the $67 million the program is estimated to cost over a two-year period, about 43 percent goes to the new bureaucracy.  So just over half goes to people receiving $250 a week for paid family leave.  AWB opposed this burdensome measure and is disappointed in its passage. Contact AWB's Kris Tefft at (360) 943-1600 or KrisT@awb.org.

Puget Sound Partnership Approved by Legislature
SB 5372, which creates a new state agency called the Puget Sound Partnership, was approved by the Legislature and sent to the governor. At the last moment, there was an attempt to attach SB 6011, which would have created the Maury Island Aquatic Reserve. Fortunately, this amendment was defeated and the final language of the Puget Sound Partnership bill remained, which was negotiated by AWB. Contact AWB’s Chris McCabe at (360) 943-1600 or ChrisM@awb.org.

Maury Island Aquatic Reserve Bill Dead This Session
SB 6011 would have created the Maury Island Aquatic Reserve and prohibited Glacier Northwest’s proposed barge transportation dock on the island. A majority of legislators agreed with AWB that having the Legislature step in and second guess state and federal regulators that have approved the project was a bad idea. Additionally, this bill would have greatly increased construction costs for the region’s public works and compounded our state’s traffic congestion problems by requiring sand and gravel to be transported by truck from much farther distances. Contact AWB’s Grant Nelson at (360) 943-1600 or GrantN@awb.org.

Needed Tax Bill Passes Legislature
SB 5434 is a Department of Revenue request bill that will put into law current agency practice on the taxation of sales of goods in import and export commerce. DOR is concerned that without this legislation, Rule 193C would be found invalid resulting in costing importers more than $60 million a year in taxes. Without this bill, our state’s reputation as a leader in international trade would suffer; import business would go to ports outside the state; and the cost of goods to Washington businesses and consumers would increase. AWB appreciates the bi-partisan support by the House. Contact AWB’s Amber Carter at (360) 943-1600 or AmberC@awb.org.

Remember: AWB’s Normal Office Hours of 8 a.m. to 5 p.m. Resume Today

Do You Know Someone Who Should Be on AWB’s Board?  Nominations are Being Taken! 
Send us that person’s name and contact information by May 11. Contact AWB’s Dick Walter at (360) 943-1600 or DickW@awb.org. 

AWB Files Brief in Important Wage & Hour Case
AWB filed a friend of the court brief on behalf of Brink’s Home Security, an AWB member, in their defense of a class action lawsuit alleging wage payment for time workers spent commuting between home and the first and last worksite in a company-owned vehicle as part of a voluntary program where workers could check out company trucks rather than have to drive to the company location each morning.  This is another area where state and federal employment law may differ, creating jeopardy for Washington employers.  The case is at the Supreme Court with arguments taking place May 17. Contact Kris Tefft at (360) 943-1600 or KrisT@awb.org. 

Governor Signs Eminent Domain Abuse Protection Bill
HB 1458, which addresses the inadequate notice issue raised in Central Puget Sound Regional Transit Authority v. Miller, requires at least 15 days of public notice prior to any public meeting that will make a final decision on property condemnation. Notices must be sent to impacted property owners by certified mail and published in local newspapers. Failing to provide sufficient notice would void condemnation decisions affecting the specific individuals who were not properly notified. This bill has passed the Legislature and has been signed by Gov. Gregoire. AWB supported HB 1458 and believes this is a common sense measure to protect property owners from eminent domain abuses. Contact AWB’s Chris McCabe at (360) 943-1600 or ChrisM@awb.org.

Debra Senn Files Declaration in Support of AWB’s Suit Against Insurance Commissioner 
Former Washington Insurance Commissioner Debra Senn filed a declaration in support of the lawsuit filed by Associated Industries and AWB, claiming current Insurance Commissioner Mike Kreidler overstepped his authority by issuing a “technical assistance advisory” directing insurance carriers to rate all association sponsored health plans the same. What Kreidler wants is “community rating.” We contend the law does not allow him to implement that directive. Having Senn, the insurance commissioner when association health plans were developed by Gov. Lowry and the Legislature, agree with our contention is very important. Hopefully, this issue will be decided early this summer. Contact Debra Brown at (360) 943-1600 or DebraB@awb.org.

Climate Change Measure Approved by Legislature – Now on Governor’s Desk
SB 6001, which codifies the governor’s climate change executive order goals and places new greenhouse gas performance requirements on utilities, has been passed by the Legislature and now awaits the governor’s signature. AWB opposed earlier versions of the bill, arguing that it is premature to implement substantive greenhouse gas policies ahead of the climate stakeholder process discussions currently underway, especially given Washington’s relatively low greenhouse gas emissions. AWB members representing industrial customers and utilities were able to reach a compromise on the final bill, minimizing potential impacts to the economy. Contact AWB’s Grant Nelson at (360) 943-1600 or GrantN@awb.org.

Electrical Transmission Measure Approved by Legislature – Delivered to Governor
HB 1037 creates an opt-in provision for applicants seeking Energy Facility Siting and Evaluation Council (EFSEC) jurisdiction over multi-jurisdictional electrical transmission facilities of at least 115 kilovolts. AWB supported this legislation following the passage of Initiative 937 (Renewable Energy Mandates) last fall. This bill will provide additional electricity transmission capacity for wind, hydro and other forms of power in rural parts of the state to the urban centers where more power is needed. This measure was approved by the Legislature and has been delivered to the governor. Contact Chris McCabe at (360) 943-1600 or ChrisM@awb.org.

AWB, U.S. Chamber and AG Initiate Anti-Counterfeiting Campaign
When U.S. Chamber of Commerce President Tom Donohue comes to Spokane to address AWB’s annual Spring Meeting, we will launch a cooperative effort with Attorney General Rob McKenna to improve our state’s anti-counterfeiting and piracy statutes.  Counterfeiting and piracy cost our economy between $200 and $250 billion per year and 750,000 jobs.

Ed Schweitzer to Receive Briggs Award
Edmund O. Schweitzer III, founder of Schweitzer Engineering Laboratories Inc., is the winner of AWB’s 2007 Bruce Briggs Community Service Award. AWB will present the award at its annual Spring Board Meeting on May 22. "Ed is a self-made man who has a strong commitment to helping the community. He’s passionate about science, math and education and puts his own resources into improving schools," said AWB President Don Brunell. Schweitzer donates generously toward building a variety of projects in the Pullman area. For more details, see www.awb.org/cgi-bin/absolutenm/templates/?a=1468&z=2.

Brunell Scholarship Available - AWB Members With Students Heading to College Should Apply 
This is a $1,500 scholarship for a Business Week graduate who is going on to a university, college or technical school. We are now accepting applications for the scholarship. Contact AWB’s Mike Hudson at (360) 943-1600 or MikeH@awb.org.

Spring Meeting in Spokane - Sign Up Today
AWB’s Spring Board Meeting will be held at Spokane’s Davenport Hotel, May 22-23. Hear a Keynote Address from Tom Donahue, president and CEO of the U.S. Chamber of Commerce, and enjoy the presentation of the Community Service Awards. To register, contact AWB’s Jennifer Costello at (360) 943-1600 or JenniferC@awb.org, or log onto www.awb.org/events/MayBoard.asp.

Learn How to Increase Sales With Your Web site
AWB has partnered with ThomasNet to create a seminar for our members to help leverage your Web site to increase sales. Please mark your calendar and register today for a half-day seminar at the Radisson Hotel, 18118 International Blvd., SeaTac, 9 a.m.-Noon, with registration and complimentary breakfast at 8 a.m. There is no cost, but space is limited, so please reserve your seat(s) by May 4. To register, visit www.thomasnet.com/seminars/seattle.html. Contact Mike Hudson at (360) 943-1600 or MikeH@awb.org.

Knockoffs Knocking Down the U.S. Economy and Jobs - See This Week's President's Perspective at www.awb.org

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