TOP STORIES
State deficit nears $9 billion
State tax collections are expected to be another $552 million lower over the next 28 months according to the Washington State Economic Revenue and Forecast Council, bringing the overall shortfall to nearly $9 billion. During last Thursday’s official March forecast, the state’s chief economist, Dr. Arun Raha, reported the U.S. and Washington economies will be in recession for most of this year, flattening out sometime late in the third quarter. Growth will remain flat in the first half of 2010, and improve only in the second half of the year. Job losses will continue even after the economy is in recovery. Watch the full forecast announcement here. You can also download WashACE’s latest budget brief.


KEY HEARINGS, MEETINGS

Senate hearing set for workers' comp "Ex parte" bill
The Senate Committee on Labor, Commerce and Consumer Protection will take up HB 1402, sponsored by Rep. Brendan Williams, D-Olympia, at 1:30 p.m. this Tuesday, March 24. AWBopposes this measure because it introduces more adversarial legal process into the state's workers' comp appeals system.It is designed to prevent effective communication between employer representatives and claimant medical providers by channeling those contacts through the claimant's attorney. For more information, contact AWB’s Kris Tefft.


Retro "reform" bill headed for House hearing
A bill imposing several new regulations on the workers' compensation retrospective ratings program — SB 6035, sponsored by Sen. Jeanne Kohl-Welles, D-Seattle — is now set for a hearing in the House Committee on Commerce and Labor at 10 a.m. on Tuesday, March 24. AWB believes this measure is an unnecessary and regrettable politicization of a very successful workers' comp program. For more information, contact Kris Tefft.


AWB-supported stormwater bill scheduled for Senate hearing
AWB’s stormwater legislation, HB 2222, sponsored by Rep. Brian Blake, D-Aberdeen, will be heard in the Senate Committee on Environment, Water and Energy. 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. For more information, contact Grant Nelson. 10 a.m. Tuesday


Bill could be used to revive county utility tax
AWB is tracking SB 5433, sponsored by Sen. Debbie Regala, D-Tacoma, because lawmakers could use it to resurrect the county utility tax proposal, which did not survive cutoff. AWB will oppose any amendments to this bill. A hearing is set for is Tuesday, March 24 at 8 a.m. For more information, contact Amber Carter.


Lobby Lunch #9: Conway and Condotta discuss economy, budget, commerce and labor issues
Rep. Steve Conway, D-Tacoma, chair of the House Committee on Commerce and Labor and Rep. Cary Condotta, R-East Wenatchee, that committee’s ranking minority member, spoke to AWB members at last week’s Lobby Lunch. Commenting on the state’s serious budget problems, Condotta said, “This is not the time to introduce divisive legislation like the Worker’s Privacy Bill. This is not the time to play politics with the Retro Bill. This is the time to sit down and find a way to get out of this crisis.”


Linville and Alexander at AWB’s Lobby Lunch on March 26
The next Lobby Lunch will be this Thursday, March 26, beginning at noon at AWB. This week’s guests are two top House budgeters: Rep Kelli Linville, D-Bellingham, and Rep. Gary Alexander, R-Olympia. Attendees should RSVP by 5 p.m. on Tuesday, March 24. Individual lunches are $14. For more information, contact AWB’s Connie Grande.


PRIORITY LEGISLATION
Tell House to pass conformity bill as is
Last week, AWB testified in favor of SSB 5963, sponsored by Sen. Jeanne Kohl-Welles, D-Seattle. This important bill will revise the state’s unemployment insurance tax structure and reinstate voluntary quit provisions. This is priority legislation for AWB, and we want this bill passed as it is right now. Contact House Speaker Frank Chopp, D-Seattle, and let him know that the business community needs this bill to pass the House without amendment. For more information, contact AWB’s Donna Steward.


AWB priority wellness legislation heard in House
The House Committee on Health Care and Wellness heard SB 6019, sponsored by Sen. Karen Keiser, D-Des Moines. AWB testified in favor of this bill, which provides small employers with incentives to develop long-term wellness programs. Urge your representatives to support this important bill. For more information, contact Donna Steward.


AWB Health Care Committee member testifies on health care reform
AWB member Don Conant of Valley Nut and Bolt provided public testimony before the House Committee on Health Care and Wellness on SSB 5945, sponsored by Sen. Karen Keiser, D-Des Moines. Conant shared an important small employer perspective on this measure which aims to revise the health care coverage system in our state into a state-run system funded through an employer tax equivalent to $23 billion dollars in the first two years of operation. The impact of such an effort on employers during these difficult economic times is of great concern. AWB appreciates Don’s efforts to share an employer’s perspective on how this policy would affect a small business owner.AWB remains opposed to this measure. For more information, contact Donna Steward.


Gov. Gregoire’s greenhouse gas reduction bill heard in Senate
Gov. Gregoire’s greenhouse gas reduction legislation, SB 5735, sponsored by Sen. Phil Rockefeller, D-Bainbridge Island, was heard in the House last week. The bill requires the Department of Ecology to report back to the Legislature in 2010 with recommendations and alternatives to meet the state’s greenhouse gas emissions targets established last year. The report must also include an economic analysis that estimates the program’s impact to Washington businesses and citizens of the state and the increased costs for food, housing, energy, transportation and other expenses. While the current bill has improved considerably compared to when it was first introduced, AWB is asking for additional improvements, including a recognition that Washington state should not act on its own in trying to solve a global emissions issue; ensuring emissions offsets are not limited to Washington state and allowing industries to be able to achieve 100 percent of their emissions reductions through the purchase of offsets. A revised version of the bill is expected by tomorrow. For more information, contact AWB’s Grant Nelson.


AWB opposes onerous toxics bill
Last week, AWB and member organizations testified in opposition to HB 1180, sponsored by Rep. Mary Lou Dickerson, D-Seattle. HB 1180 bans the use of a chemical known as Bisphenol A (BPA), which is necessary in the manufacturing of all polycarbonate products. Despite a consensus of regulatory agencies in the U.S., Canada, Europe and Japan stating that BPA does not pose a risk to human health, environmental advocates are hoping that Washington state will be the first place on the planet to pass such a ban to help pave the way for other states to enact similar legislation and bolster class action lawsuits that are being filed against manufactures using the chemical. For more information, contact Grant Nelson.


Hearing scheduled for damaging home warranty legislation
On Thursday, March 26, the Senate Labor, Commerce and Consumer Protection Committee will hear E2SHB 1393, sponsored by Rep. Larry Springer, D-Kirkland. This bill, aspassed by the House by a 52-45 vote, is a “double whammy” for residential contractors. This measure requires all contractors to provide an express, “off-the-shelf” warranty which uses FHA/VA-backed loan warranties as a basis, and simultaneously prohibits waiver of the implied warranty of habitability. Unfortunately, many small contractors will likely have difficulty qualifying for and obtaining these warranties. In addition, the measure establishes an Office of Consumer Education for Home Construction in the Office of the Attorney General to handle and expedite consumer complaints. AWB will continue to work with Rep. Springer and the Senate to create additional protections for consumers without breaking contractors during this difficult time for the construction market. For more information contact Chris McCabe.


Renewable energy bill in state of flux, will be head in House
Members of the House Committee on Technology Energy and Communications Committee, will take up ESSB 5840 at 8 a.m. on Wednesday, March 25. Also referred to as the renewable energy standards bill, ESSB 5840 changes the requirements set forth in Initiative 937. Last week, Gov. Chris Gregoire assembled a wide range of stakeholders to discuss her views on I-937 and what she would like to see in the bill. Committee Chair Rep. John McCoy, D-Tulalip, and the bill’s sponsor, Sen. Chris Marr, D-Spokane, are working with stakeholders this week on a possible striking amendment. The contents of this bill are a work in progress that continues to change on an almost daily basis. AWB is closely monitoring this situation. For more information contact Chris McCabe.


Check JobMakers for the latest on legislation and how it affects the economy
Jobmakers.com is an excellent online database of legislation affecting the creation of jobs in Washington state. Visit today and find out what your lawmaker is doing to support economic development in our state. This site will be regularly updated throughout the 2009 legislative session.


OTHER NEWS
Telephone scammers target state businesses
Scammers posing as Washington Department of Revenue employees are calling businesses, directing them to a bogus international phone number and charging them for the call. The automated phone calls state that the Department of Revenue has been trying to reach the business about its tax account and to call 1-800-431-4028. When the taxpayer calls that number, another recording prompts them to call 1015158000 and pay a charge of $5.49 plus undisclosed administrative fees. A 101 number indicates an international call. “This is just a scam to mislead callers into paying a phone charge,” said Revenue Director Cindi Holmstrom. “Don’t fall for it.” If you receive such a call, notify the department at 1-800-647-7706.


New group organized in support of Snake River dam removal
A new group, the Snake River Salmon Society Political Action Committee, has been created in support of Snake River dam removal. “The citizens of the Northwest overwhelmingly oppose tearing out the four Snake River Dams,” said U.S. Rep. Doc Hastings, R-Pasco, the ranking minority member on the House Natural Resources Committee. “We can recover fish runs and protect our dams. It’s time we again stand up and speak out against dam removal as an extreme action that won’t help fish but will increase energy prices, hurt our economy and cost us jobs.”


Update for COBRA employers
The American Recovery and Reinvestment Act went into effect last month. It contains new compliance mandates for COBRA employers — health plan sponsors with 20 or more employees. Certain assistance eligible individuals will only have to pay 35 percent of their regular COBRA premiums for up to nine months. The federal government will subsidize the remaining 65 percent. COBRA employers must provide notice within 60 days to assistance eligible individuals. Read more here and here.


Wal-Mart Foundation and One Economy offer free tax preparation and filing services
The Wal-Mart Foundation and One Economy are offering free tax preparation and filing services to consumers across the country through their Mobile Tax Center vans and online services. Eligible consumers – those making less than $56,000 per year – can file their taxes free of charge online and learn about their potential to qualify for the Earned Income Tax Credit. Learn more about the program, Mobile Tax Center locations and how to file online at http://www.myfreetaxes.com/.


AWB is now on Twitter
AWB recently joined the microblogging site, Twitter. This allows us to post brief (140 characters) updates about AWB events, ask members quick questions, share breaking news and link to resources. Twitter is the third most popular social networking application on the Internet, right behind MySpace and Facebook. Learn more about the site and start following AWB on Twitter today!


AWB EVENTS & RESOURCES
AWB holding issues briefings in Puget Sound region
AWB President Don Brunell will continue his legislative briefings Tuesday, March 24 (Redmond); Wednesday, March 25 (Mountlake Terrace and Seattle); and Wednesday, April 15 (DuPont). View the entire briefing schedule online or RSVP to AWB’s Bonnie Millikan.


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.


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.


AWB Community Service Awards now accepting nominations!
We invite you to nominate your company or other AWB members who have made efforts to improve their communities. These important awards recognize our members’ volunteerism and contributions which make our communities better places to live and work. AWB will present its Community Service Awards at a special dinner held in conjunction with its Annual Spring Board Meeting in Spokane on May 19. Submit your applications before Friday, April 10. Download a nomination form or contact Jennifer Costello.


THEY SAID IT
"Our budget problem is serious, but manageable with existing revenue. Let's not forget that the state may have more revenue to use in the next budget cycle than it does in the current one. It is a matter of restructuring state government and focusing on priorities such as education, public safety and the protection of our most vulnerable populations. I believe we can do these things.” – Rep Barbara Bailey, R-Oak Harbor.


This Week's President's Perspective: Solution to state budget found in what’s already on the table