TOP STORIES
Former Gov. Gary Locke nominated for U.S. commerce secretary
Pending approval of the U.S. Senate, former Washington Gov. Gary Locke, who served from 1997 to 2005, will join President Obama’s cabinet as the next U.S. Department of Commerce secretary. “The nomination of Gary Locke as secretary of Commerce is good for Washington and good for our country. Washington state is the nation’s leading per capita exporting state and Gary Locke, as governor, formed many important trade bonds with countries such as China, Korea and Japan,” said AWB President Don Brunell in a statement last week. “Locke also understands the importance of keeping American businesses competitive. During his two terms as Washington’s governor, he relied heavily on the competitiveness council he formed to make our state more attractive for companies to re-invest and invest in. That translated into new jobs and additional economic opportunities.”


AWB submits briefs in two business cases
Last week, AWB filed friend-of-the-court briefs in two cases involving important business issues. The first, Hutton v. F5 Networks, Inc., involves the appropriate standard a court will require a company’s shareholder to meet before filing a derivative lawsuit on behalf of the corporation. AWB’s brief urges the court to follow the national trend toward a strict demand standard in order to preserve longstanding principles of corporate governance and limit companies’ exposure to frivolous litigation. The second, Durand v. HMCI Corp., involves an employers’ liability for wage claims when its business is undergoing financial duress, and is pending in Division II of the Court of Appeals. AWB’s brief urges the court to apply sensible rules when assessing whether a struggling firm has “willfully withheld wages” for purposes of laws imposing punitive damages and personal liability. For more information, contact AWB’s general counsel, Kris Tefft, at (360) 943-1600.


House and Senate committee cutoffs for policy and fiscal bills approaching
Today is day 50 of the 105-day legislative session, and is the cutoff for bills exiting the House and Senate fiscal committees. Policy and fiscal bills impacting the state budget must be reported out of the House and Senate by Thursday, March 12.


KEY HEARINGS, MEETINGS
Lobby Lunch No. 6: Upthegrove discusses cap and trade, Puget Sound Partnership
During last week’s Lobby Lunch, Rep. Dave Upthegrove, D-Des Moines, chair of the House Ecology and Parks Committee, discussed the impact of the state’s budget crisis on the Puget Sound Partnership and the current state of play of Gov. Chris Gregoire’s cap and trade legislation. On the PSP, Upthegrove said: “One of the big challenges is how you pay for the things that need to be done. I’m convinced there’s a way to do more with less.”


Arun Raha at AWB’s Lobby Lunch on March 5
The next Lobby Lunch will be this Thursday, March 5, beginning at noon at AWB. This week’s guest is Arun Raha, executive director of the Economic and Revenue Forecast Council. Attendees should RSVP by 5 p.m. on Tuesday, March 3. Individual lunches are $14. For more information, contact AWB’s Connie Grande at (360) 943-1600.


PRIORITY LEGISLATION
ALERT: Urge senators to pass AWB priority UI legislation
AWB priority legislation revising our unemployment insurance tax structure, SB 5963, sponsored by Sen. Jeanne Kohl-Welles, D-Seattle, which also includes measures to reinstate voluntary quit provisions, passed from the Senate Labor, Commerce and Consumer Protection Committee intact and is now in the Senate Rules Committee.The measure must pass from the Senate to the House of Representatives by Monday, March 9. AWB urges members to contact their senator and urge passage of this measure in its current form!For more information, contact Donna Steward at (360) 943-1600.


ALERT: Tell your legislators to oppose the employer gag rule bill
The employer gag rule bills, HB1528, sponsored by Rep. Mike Sells, D-Everett, and SB 5446, sponsored by Sen. Margarita Prentice, D-Renton, moved out of their respective policy committees last week. You can view AWB’s opposing testimony here. Tell your legislators to oppose this violation of employers’ free speech rights! Your voice is needed to keep this bill from coming up for a House or Senate floor vote. Read more on AWB’s blog, Olympia Business Watch. For more information, contact Kris Tefft at (360) 943-1600.


Gov. Gregoire’s climate change bill now in House Rules Committee
Gov. Gregoire’s greenhouse gas cap and trade legislation, HB 1819, sponsored by Rep. Dave Upthegrove, D-Des Moines, and SB 5735, sponsored by Sen. Phil Rockefeller, D-Bainbridge Island, remain active. HB 1819 moved to the House Rules Committee and SB 5735 is now in the Senate Ways and Means Committee. AWB continues voicing strong concerns over potential job losses and costs to businesses and consumers that would likely result from this legislation. AWB prefers national climate change solutions to regional efforts like this one, which will make Washington less competitive in relation to other states. For more information, contact Grant Nelson at (360) 943-1600.


Concerns remain over Initiative 937/green energy bill and additional costs to employers
SSB 5840, sponsored by Sen. Chris Marr, D-Spokane, would amend Initiative 937 and is the Senate Rules Committee. Although SSB 5840 is much more reasonable than the now dead HB 1133, sponsored by Rep. John McCoy, D-Tulalip, AWB is still concerned about SSB 5840, including a new renewable energy standard of 21 percent by 2025. AWB will remain engaged in the process to ensure sufficient consideration and inclusion of existing renewable resources without additional cost burdens being placed on AWB member ratepayers or utilities. . Contact your legislators and urge them to vote “no” on this bill! For more information, contact AWB’s Chris McCabe at (360) 943-1600.


AWB working to improve green building legislation
Both HB 1747, sponsored by Rep. Christine Rolfes, D-Bainbridge Island, and SB 5854, sponsored by Sen. Derek Kilmer, D-Gig Harbor – environmental community priority legislation for 2009 – survived last week’s policy committee cutoff and were referred to fiscal committees in the House and Senate. HB 1747 was heard by the House Ways and Means Committee and is scheduled for possible executive session today. SB 5854 has not yet been heard in the Senate Ways and Means Committee. Although AWB strongly supports energy conservation and increased energy efficiencies, we oppose these bills because of mandatory increased standards in the state energy code of 40 percent by 2013 to 70 percent by 2031 for new residential and commercial construction. These mandatory increased standards do not consider the significant increased costs of compliance during an ailing housing and construction market, or whether technology or materials even exist to meet these graduated increases. Moreover, this legislation unfairly places additional liability on residential and commercial contractors and building owners. AWB continues to work with Sen. Kilmer and Rep. Rolfes on an approach that will work to create more energy efficient new and existing homes and buildings. For more information, contact Chris McCabe at (360) 943-1600.


VOTE NO: Transit-oriented development and the GMA
Environmental community priority SHB 1490, sponsored by Rep. Sharon Nelson, D-Maury Island, passed the House Local Government and Housing Committee on Feb. 20 and the House General Government Appropriations Committee on Feb.26, where it was then referred to the House Rules Committee. Its companion, SSB 5687, sponsored by Sen. Chris Marr, D-Spokane, passed the Senate Government Operations and Elections Committee on Feb. 23 and was heard in the Senate Ways and Means Committee on Feb. 26. To survive fiscal committee cut-off, SSB 5687 must be voted out by today or it will die. Both bills amend Washington’s Growth Management Act to require local governments to, among other things, establish land use and transportation patters that support existing greenhouse gas emission reductions. AWB remains opposed to amending the GMA with these requirements because of the mandatory burdens place on local governments and business, and the corresponding land use litigation and appeals that will result, stifling an already ailing housing and construction market. Contact your legislators and urge them to vote “no” on these bills! For more information, contact Chris McCabe at (360) 943-1600.


AWB-supported stormwater legislation now in House Rules
AWB’s stormwater legislation, HB 2222, sponsored by Rep. Brian Blake, D-Aberdeen, is now in the House Rules Committee. The bill will improve the health of Puget Sound and other waters of the state by clarifying the methods businesses can use to comply with stormwater permit requirements; allowing flexible alternatives to comply with permit requirements; giving the Department of Ecology one additional year to develop stormwater permit requirements for state waters needing special attention; and improving technical assistance, education and enforcement activities that will promote permit compliance. AWB is currently negotiating with Ecology and the environmental community over this bill. For more information, contact AWB’s Grant Nelson at (360) 943-1600.


AWB supports state transportation stimulus package
AWB supports HB 1978, sponsored by Rep. Judy Clibborn, D-Mercer Island, and SB 5458, sponsored by Sen. Chris Marr, D-Spokane. These economic stimulus transportation bills are a good first step toward creating jobs and developing crucial infrastructure our state needs to grow the economy and keep Washington moving forward. “The proposals will allow our state to access key federal stimulus funds that will generate new jobs and help keep people working. And, by using existing priority projects, we will increase the likelihood these efforts start and finish on time and on budget,” said Amber Carter, AWB government affairs director for tax and fiscal policy. Read more here. For more information, contact AWB’s Amber Carter at (360) 943-1600.


House Transportation Committee hears street utility tax legislation
HB 1947, sponsored by Rep. Geoff Simpson, D-Covington, was heard in the House Transportation Committee last week. AWB opposes the bill based on constitutional concerns, increased administrative burdens, unreliable data to establish tax rates and the inability for Washington citizens to absorb any tax increases in a recession.Send an e-mail to your legislator and ask them to oppose HB 1947. For more information, contact Amber Carter at (360) 943-1600.


Digital goods tax bill a work in progress, merits further discussion
Last week, AWB testified in the House Finance Committee with concerns regarding HB 2075, sponsored by Rep. Ross Hunter, D-Medina, which establishes greater clarity in the tax code on electronically delivered products in light of previous task force work, agency and legislative actions and changes in the streamlined sales tax agreement. The bill has since been revised and addresses many of the concerns raised during that public hearing. AWB looks forward to continuing discussions on the revised measure with key stakeholders in the coming days and weeks. For more information, contact AWB’s Amber Carter at (360) 943-1600.


Misguided retro "reform" bill moves out of committee
Last week, a bill imposing several new regulations on the workers' compensation retrospective ratings program — SB 6035, sponsored by Sen. Jeanne Kohl-Welles, D-Seattle — moved out of the Senate Labor, Commerce and Consumer Protection Committee and appears headed toward the Senate floor. AWB opposes this bill as an unnecessary and regrettable politicization of a very successful workers' comp program. For background, analysis and a link to AWB's testimony, see AWB’s blog, Olympia Business Watch. For more information, contact Kris Tefft at (360) 943-1600.


Workers’ comp reform bills die in committee; "Ex parte" bill moves
After last week's committee cutoff, prospects for any real workers' compensation reform this session dimmed as AWB-supported bills prohibiting the diversion of workers' comp trust funds for non-workers' comp programs failed to move, as well as bills that would have modernized the cumbersome manner that Labor & Industries calculates benefits and allow workers, employers and the Department to settle industrial insurance claims in a manner similar to other insurance claims. Meanwhile, HB 1402, sponsored by Rep. Brendan Williams, D-Olympia, the trial lawyer supported "ex parte" bill, which interferes with ongoing case management when a claim goes on appeal, and tilts the appeal in the claimant's favor, moved out of committee toward floor action. For more information, contact Kris Tefft at (360) 943-1600.


Legislators miss opportunity to help wage and hour compliance
At last week's deadline for committee work, two AWB-supported wage and hour reform bills received hearings but were not moved out of committee. The bills, HB 2176, sponsored by Rep. Steve Conway, D-Tacoma, and SB 5463, sponsored by Sen. Janéa Holmquist, R-Moses Lake, would have created a good faith defense for employers subject to wage and hour lawsuits if the employer demonstrated compliance with published policy or guidance from the Department of Labor & Industries. The bills were in part an effort to address the spike in wage and hour lawsuits. Unfortunately, in the face of severe labor union opposition, House and Senate labor committee chairs chose not to move the bills. For more information, contact Kris Tefft at (360) 943-1600.


AWB priority wellness legislation moves forward
SB 6019, sponsored by Sen. Karen Keiser, D-Des Moines, which provides small employers with incentives to develop long-term wellness programs, was amended to include health maintenance organizations and passed out of committee the next day.It is now in the Senate Rules Committee and will hopefully be brought before the entire Senate for a vote very soon. For more information, contact AWB’s Donna Steward at (360) 943-1600.


Major expansion of manufacturer products liability clears committee
Last week, SB 5964, sponsored by Rep. Joe McDermott, D-Seattle, cleared the Senate Labor, Commerce & Consumer Protection Committee over AWB opposition. This trial-lawyer supported bill retroactively overturns two landmark 2008 Supreme Court cases in the area of asbestos liability and imposes a broad duty on manufacturers to warn of potential dangers not merely in their own products, but in the products of other manufacturers that may have contained or use asbestos. If passed, Washington would be the only state in the nation where manufacturers could face products liability like this for products they didn't actually manufacture. For more information, contact Kris Tefft at (360) 943-1600.


Harmful M&E Sales and Use Exemption Legislation in House and Senate
Legislation on manufacturing sales and use tax incentives had public hearings last week. In the House, HB 1719, sponsored by Rep. Bob Hasegawa, D-Seattle, would establish a partial sales and use tax refund on certain renewable energy machinery and equipment. The bill requires companies to use prevailing wages and the use of apprentice labor hours. AWB opposes HB 1719 because of its harm to manufacturers’ competitiveness and believes lawmakers should incentive economic development through bills like HB 2130, sponsored by Rep. Tim Probst, D-Vancouver, which would leave the existing M&E credit in place and create a B&O credit for capital investment in renewable energy manufacturing. In the Senate, AWB testified in opposition to SB 6029, sponsored by Sen. Craig Pridemore, D-Vancouver, which would eliminate the M&E incentive for non-renewable energy manufacturers and extend it to renewable energy manufacturers instead. AWB opposed this bill and reminded the committee of the benefits of the underlying M&E incentive for creating jobs, increasing personal income and growth in state revenues. AWB will remain vigilant in our protection of manufacturing jobs. Ask your lawmakers to oppose HB 1719 and SB 6029 and to support HB 2130. For more information, contact Amber Carter at (360) 943-1600.


RFID bill now set for House floor debate
HB 1011, sponsored by Rep. Jeff Morris, D-Mount Vernon, is now on the calendar for House debate. AWB worked closely with Rep. Morris to remedy the majority of members’ concerns. We anticipate passage in the House soon. For more information, contact AWB’s Grant Nelson at (360) 943-1600.


AWB EVENTS & RESOURCES
AWB holding issues briefings throughout the state
AWB President Don Brunell will continue his legislative briefings on Tuesday, March 10 (Tacoma); Wednesday, March 11 (Spokane); Tuesday, March 24 (Redmond); Wednesday, March 25 (Mountlake Terrace and Seattle); and Wednesday, April 15 (DuPont). View the entire briefing schedule online or contact AWB’s Bonnie Millikan at (360) 943-1600 to RSVP.


Mitigating 401(k) plan fiduciary liability workshop
Join us for this FREE two hour workshop exclusively for AWB members on Tuesday, March 24 at AWB. As an employer and sponsor of a 401(k) plan, your company shoulders a significant responsibility. Fiduciaries can be held personally responsible for the plans they oversee, making it critical that you take appropriate steps to reduce potential liability. This educational workshop will provide a best practices review and overview of ERISA fiduciary responsibilities that will help you optimize your company’s 401(k) plan. For additional details or to register, please click here or contact Jennifer Costello at (360) 943-1600.


Forklift: Train the Trainer workshop - Wednesday, March 25
Proper forklift safety training will make your company a safer place to work — and keep you in compliance with the law. Attendees who complete the course will receive a certificate of completion, a CD of workshop materials and a PDF manual they can reproduce to train their own employees on proper forklift safety. Register online or contact Jennifer Costello at (360) 943-1600.


THEY SAID IT
“I'd love to be able to tell readers of The News Tribune how much progress is being made by the Legislature in its efforts to tackle an $8 billion budget shortfall. But it's all still secret. And legislators think that's OK.”
- Tacoma News Tribune Reporter Joe Turner on legislative progress to date.



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