TOP STORIES
Be sure to vote Nov. 2 – Deadline to register is today!
Are you registered to vote? How about your employees? The November ballot is loaded with initiatives and candidate races that will greatly impact the state's business climate for years to come, for better or worse. Initiative 1098 (income tax), Initiative 1082 (workers' comp) and Initiative1053 (two-thirds vote to raise taxes) are among the most important issues on the November ballot, and AWB is working hard to ensure that voters know how each of them will impact our state's struggling economy. It’s up to voters to decide, though, and as we were reminded at AWB’s 2010 Policy Summit, mid-term elections are typically low-turnout affairs. A large turnout by the business community can make a real difference. The deadline to register to vote by mail or online is today. Register to vote. Then vote by Nov. 2.


I-1053 – the taxpayer protection Washington needs
“Passing I-1053 would make it more difficult—next to impossible—for the Legislature to raise taxes in order to make up some of the estimated roughly $4.5 billion shortfall in the state budget for the 2011–13 biennium.” That’s the conclusion of the Washington Research Council, which published a policy brief last week advocating for passage of the measure that requires a two-thirds vote of the Legislature to raise taxes. The council called I-1053 a “reasonable restraint on the revenue-raising powers” of the Legislature, a view shared by the Spokane Spokesman Spokesman-Review which editorialized in favor of I-1053. And a new article from Paul Guppy, vice president of research for the Washington Policy Center, pokes holes in the idea that I-1053 would create California-style gridlock. Contribute to I-1053, and follow Yes on I-1053 on Facebook and Twitter.


Tri-City Herald, Dan Evans weigh in against Initiative 1098
Former Gov. Dan Evans and the Tri-City Herald weighed in on Initiative 1098 last week, and both concluded that, if approved, the income tax would likely expand beyond the high-earners that it initially targets. “This initiative comes with no constitutional protections to prevent it from being extended to everyone in the state,” Evans wrote in a guest opinion piece for The Seattle Times. He added, “It is divisive and disproportionately hits the small- and medium-sized businesses we need to create jobs for our citizens. Policymakers should be making tough choices about our priorities. I-1098 delays these decisions indefinitely.” The Tri-City Herald stated flatly: “If approved, I-1098 will inevitably reach more Washingtonians. Even without the threat, voters have plenty of other reasons to reject the measure. We worry that the competitive advantage Washington has as one of nine states without an income tax would be lost, giving potential new businesses one less reason to locate in our state.” Follow the campaign to Defeat 1098 on Facebook and Twitter.


Herald endorses Initiative 1082
Joining other newspaper editorial boards across the state, including the Seattle Times, Everett’s Herald strongly endorsed Initiative 1082, the measure that would end Washington’s state monopoly on workers’ compensation insurance. According to the Herald, “Lowering the cost of doing business is one of the most effective strategies for increasing private-sector hiring in Washington. State government shouldn’t get in the way of it. That’s why business groups wrote Initiative 1082. It would end the state’s monopoly on workers’ compensation insurance, allowing private insurers to compete for that business. Introducing such competition, which is currently allowed in 46 other states, should lower costs for employers by letting them shop around.” Follow the I-1082 campaign on Facebook and Twitter.


No more Department of Revenue letter rulings for undisclosed businesses
The Department of Revenue will soon stop issuing letter rulings for undisclosed businesses. The new policy, which took effect Friday, means that businesses can no longer seek guidance or clarity about the state’s tax code – assistance that has typically been sought via a CPA or attorney – without disclosing their identity. Officials said the change is in response to budget reductions ordered by the governor. Undisclosed tax ruling requests received before Oct. 1 will be processed, as usual, with a 90-business day response time. Undisclosed tax ruling requests received by on or after Oct. 1 will not get a department response, other than the option of disclosing the taxpayer within 10 days, in most cases. Requests for tax rulings for disclosed businesses have not changed. See the DOR website for details. For more information, contact AWB’s Amber Carter.


Ecology pursuing Children’s Safe Products Act legislation
The Department of Ecology has submitted draft legislation to the Office of Financial Management (OFM) amending the Children’s Safe Product Act (CSPA) passed in 2008. AWB and member organizations met with the department last week to express concerns regarding the draft bill, which would severely impact manufacturers and retailers who sell products in the state. The draft bill legislation, which has not yet been approved by OFM or the governor’s office, expands the department’s authority, allowing the agency to ban products manufactured and sold in Washington and imposes fees and new reporting requirements on businesses. AWB is drafting a letter in strong opposition to the draft legislation to the department, OFM and the governor’s office to be sent this Friday. For more information, or to add your company to the opposition letter contact AWB’s Grant Nelson.


McCaslin won’t run for re-election in 2012
After nearly 30 years in the Legislature, Sen. Bob McCaslin, R-Spokane Valley, will not run for re-election when his current term expires in 2012. McCaslin, who consistently scores highly in AWB’s Legislative Scorecard, made the announcement last Wednesday. McCaslin, who experienced health problems during the 2010 legislative session, plans on keeping his other elective office as a city councilman in Spokane Valley.


Passages: Bill Fromhold, former state legislator
Former state Rep. Bill Fromhold, D-Vancouver, died of leukemia last Thursday. Fromhold served in the Legislature from 2001 to 2008. A budget writer, Fromhold served as vice chair of the House Appropriations Committee. He was well known for his strong background and interest in K-12 and higher education.


KEY HEARINGS, MEETINGS
Department of Revenue will discuss new tax at Tax and Fiscal Policy Council meeting, Oct. 13
The Department of Revenue has made changes to its draft tax avoidance rule. The changes clarify that if a taxpayer reports tax pursuant to specific written instructions, a published determination, or other document issued before May 1, 2010, the department will not find tax avoidance to exist, either before or after May 1, 2010. Additionally, the new draft rule eliminates references to the date of Jan 1, 2011, and any impacts derived from that date. Representatives from the department will present this revised draft rule and take your comments at the next Tax and Fiscal Policy Council meeting, Wednesday, Oct. 13, 9:30 a.m. – noon, at AWB. For more information, contact AWB’s Amber Carter.


U.S. Chamber and Washington Health Care Authority to discuss health insurance exchanges
AWB’s Health Care Committee will meet Tuesday, Oct. 19, 10 a.m. at AWB.This meeting will focus on the new federal health-care reform requirement for the development of insurance exchanges.Guests include Katie Hays from the U.S. Chamber of Commerce and Richard Onizuka from the Washington Health Care Authority.For more information, contact AWB’s Donna Steward.


Education and Training Committee meeting rescheduled for Oct. 28
AWB Education and Training Committee meeting, originally scheduled for tomorrow, will instead be held Thursday, Oct. 28, 10 a.m. at the TrueBlue offices in Tacoma. For more information, contact AWB’s Donna Steward.


AWB EVENTS & RESOURCES
Wage and Hour Compliance: Is Your Business Ready? — Oct. 6
In April, the U.S. Department of Labor announced the start of the "We Can Help" nationwide campaign aimed at encouraging employees to report wage and hour disputes to the department. The department's Wage and Hour Division agency is armed with 250 new investigators and plans to have 1,000 on board by the close of FY 2011 — representing an increase of approximately 50 percent over 2008 levels. The Wage and Hour Division is also partnering with other groups to identify and investigate employers on a nationwide versus local basis. Employers of all shapes, sizes, backgrounds and industries must prepare for this growing onset of wage/hour enforcement and litigation. Join us, on Wednesday, Oct. 6, in SeaTac, for this half-day seminar to learn how to avoid the DOL's new employee misclassification crackdown and how to avoid crushing lawsuit errors. Register online or contact AWB’s Chana LaChapelle.


OSHA 10-hour certification course in DuPont – Oct. 12-13
Get current on the latest in safety training and OSHA standards. Classes will be held Tuesday-Wednesday, Oct. 12-13, 9 a.m. – 3 p.m., at the State Farm Education Center in DuPont. At completion of the course, you will receive an official course completion card from OSHA. This card will be useful during an inspection, as it demonstrates your efforts and commitment to voluntary compliance with all OSHA standards and regulations! Register online or contact AWB’s Chana LaChapelle.


Forklift: Train the Trainer workshop – November 4
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 AWB’s Chana LaChapelle.


THEY SAID IT
“In this recession, tax increases impose an additional drag on the economy, adding to the burdens of struggling families and entrepreneurs. The Washington Research Council has repeatedly called on lawmakers to adopt a sustainable budget within existing revenues. Similarly, voters have repeatedly demanded that the legislature clear the higher bar of a supermajority vote before raising taxes. I-1053 imposes a reasonable restraint on the revenue-raising powers of the Legislature, a restraint that has worked well in the past.” – Washington Research Council


This Week's President's Perspective: Government by regulation