TOP STORIES
Join us in Olympia Wednesday for AWB’s Legislative Day
This Wednesday, AWB members have a unique opportunity to meet one-on-one with legislators and discuss issues facing employers during the 2010 legislative session. Our annual Legislative Day at the Olympia Red Lion is one of your best opportunities to network with other AWB members, elected officials and agency directors. Lawmakers and policy experts will also gather for a series of panels on the budget, labor, health care and the environment. Attorney General Rob McKenna will also join us at lunch to help present the 2010 Better Workplace Awards. The day concludes with a reception, giving members more time to interact with lawmakers. And, there’s still time to register! Contact AWB’s Jennifer Costello toll-free at 800.521.9325.


California’s UI system is in trouble; Washington should pay attention
The California Manufacturing & Technology Association reported recently that California's Legislative Analyst Office has forecast an $18.4 billion deficit for the state’s unemployment trust fund by the end of 2010. To date, California has borrowed $6 billion from the federal government in order to cut unemployment checks, and it will probably borrow more, according to the article. This should be a sobering warning to Washington lawmakers who are considering adding more benefits to a system that's under considerable strain as a result of continued high unemployment. For the moment, Washington's unemployment trust fund is in relatively good shape. It's in the minority of U.S. unemployment funds not already in the red or forecast to soon be broke, according to this analysis by Pro Publica. Washington lawmakers would be wise to protect our state's endangered status. We don't want to end up like either California or Oregon , the latter of which just raised taxes on businesses and individuals to close its budget hole. Read more on AWB’s blog, Olympia Business Watch.


Workers’ comp reform can’t wait – demand a hearing for HB 2950
AWB continues to push for a hearing on HB 2950, a moderate, compromise approach to the issue of workers’ compensation reform. This, despite increasing evidence that organized labor has turned the bill into a litmus test for Democratic lawmakers in the state Legislature. HB 2950 received some notable support last week; The News Tribune published an editorial strongly endorsing the reform effort, and Rep. Lynn Kessler, D-Hoquiam, told AWB members at our Lobby Lunch meeting that she believes the bill deserves a hearing. The Senate Labor, Commerce & Consumer Protection Committee held a work session this morning to discuss creating a task force to study and report on the state’s workers’ comp system, but AWB is not optimistic about this approach — it has been tried before — many times — without results. Contact your representative today to ask House leadership to give HB 2950 a hearing. Without change, the state’s industrial insurance system is facing years of continued rate hikes for the businesses that pay into it, as well as possible insolvency. Workers’ comp reform can’t wait. Contact AWB’s Kris Tefft for more information.


Cross-border competition will lower cost of health insurance
Even though the federal health-care reform has stalled, state lawmakers have a chance this session to help struggling business reign in rising costs. HB 3015, sponsored by Rep. Eileen Cody, D-Seattle, would open up Washington’s health insurance market to out-of-state competition, which would in turn lower cost and increase quality, business owners told the House Health Care & Wellness Committee last week. "I need more choice," said Dean Hartman, president of Capital Business Machines in Olympia. "Right now, it's a monopoly and I don't have that choice," he said, noting that it gets harder every year to continue providing health-care benefits. Let your lawmakers know this bill is important to Washington employers – especially small businesses. Visit our new Washington Business Votes Web site to find your legislator and send them a quick message in support of HB 3015. For more information, contact AWB’s Donna Steward.


Despite lack of public support, Democrats still pushing ahead on health-care overhaul
President Obama’s State of the Union address last week signaled little change in the White House’s support for costly, unpopular initiatives, including climate change legislation and the federal health-care overhaul. Fifty-eight percent of the American public opposes the Democrats’ health-care plan, according to a CNN poll, which means now is the time to start over and begin work on a sensible plan. AWB urges its members to contact Sens. Patty Murray and Maria Cantwell and their House members to work toward more rational — and affordable — legislation.


Americans say ‘yes’ to jobs, ‘no’ to EFCA
A new poll released today by the U.S. Chamber of Commerce shows that Americans fear the “Employee Free Choice Act” or EFCA would hurt job growth. In the nationwide poll, 61 percent of respondents said that EFCA, which seeks to change the rules regarding unionization, would cause more companies to expand abroad rather than create new jobs in America. “America’s message to Congress is crystal clear: ‘yes’ to jobs, and ‘no’ to special-interest union bailouts like Card Check,” said Steven J. Law, the Chamber’s chief legal officer and general counsel. “Voters understand that if we want to put people back to work, Congress needs to stop wasting time with new government mandates and get serious about regulatory and tax relief.”


National economy shows some signs of recovery
The U.S. economy showed a 5.7 percent annual growth rate in the fourth quarter of 2009, the fastest pace since 2003. Growth exceeded expectations in large part due to an increase in business spending on equipment and software. Nevertheless, this is a fragile recovery, and economists expect it to slow later in 2010 after companies finish restocking inventories and as government stimulus programs fade. Many expect U.S. domestic product to grow 2.5 percent to 3 percent during the current quarter and around 2.5 or less for the entire year. This will not affect the high 10 percent unemployment rate. AWB recently invited a trio of state, regional and local economists to talk about where we’re headed in the next issue of Washington Business. Watch for the magazine to arrive in about a week.


Kessler, Kilmer and Kastama talk jobs, innovation, streamlining government at Lobby Lunch
House and Senate Democrats told AWB members they understand the fragile nature of Washington's economy. Speaking at last Thursday's Lobby Lunch, Sens. Derek Kilmer, D-Gig Harbor, Jim Kastama, D-Puyallup, and Rep. Lynn Kessler, D-Hoquiam, all underscored the importance of jobs, innovation and streamlining state government. "Government also has to be innovative. Somehow, we have to start trying to get more out of government with the same money or less," he said. "Innovation has to be a key thing that we pay attention to if we want to be in the game in the future," said Kastama.


Hewitt, Zarelli and DeBolt at AWB’s Lobby Lunch on Thursday
Three of the Legislature’s most important Republican leaders – Senate Minority Leader Mike Hewitt, R-Walla Walla; House Minority Leader Richard DeBolt, R-Chehalis; and Sen. Joseph Zarelli, R-Ridgefield, ranking minority member of the Senate Ways and Means Committee — will speak at AWB’s next Lobby Lunch this Thursday at noon at AWB. If you have not already RSVP’d and you are interested in attending, please do so by 5 p.m. tomorrow. Lunch is $14 per person. Please allow plenty of time to find parking when visiting either AWB or the Capitol. For more information or to register, contact AWB’s Connie Grande.


Weekly Twitter chat on legislative issues each Thursday
Have you checked out AWB’s weekly Web chat on the action in Olympia? AWB is using the popular social media Web site Twitter to lead a weekly discussion of the 2010 Legislature. For those familiar with Twitter, you can follow the chat and participate in it by following AWB, and by setting up a search for the hashtag #walegchat. Join us each Thursday at 4 p.m. Also, you can follow the action in the Legislature any time by tracking the hashtag #waleg. If you need more information about Twitter or how to join the action, contact AWB’s Jason Hagey.


Register now for Friday’s WashACE phone briefing
This Friday, WashACE, the Washington Alliance for a Competitive Economy, will continue its weekly half-hour phone briefings on legislative issues. The call begins at 7:30 a.m. and ends promptly at 8 a.m.. This Friday’s agenda includes a review of the Legislature at midsession and an update on unemployment insurance. Register for Friday’s call online or contact WashACE’s Richard Davis with questions about these briefings.


KEY MEETINGS, HEARINGS
AWB Health Care Committee meeting on Feb. 8
The Health Care Committee will meet Monday, Feb. 8. 9:30-11:30 a.m., at AWB. For more information, contact AWB’s Donna Steward.


PRIORITY LEGISLATION
AWB opposes tax bill
HB 2970, sponsored by Rep. Ross Hunter, D-Medina, purports to close tax loopholes, but is actually a tremendous money grab aimed directly at the pockets of the business community at a time when businesses are struggling to stay afloat in a rough economy. AWB strongly opposes this legislation and will testify against it at 8 a.m. Wednesday before the House Finance Committee. For more information, contact AWB’s Amber Carter.


Bill takes aim at tax privacy protections
SB 5885, sponsored by Sen. Adam Kline, D-Seattle, would remove all tax privacy protections from any business that receives a state tax exemption. Under this legislation, personal information, including salary details, would become public record. AWB testified in strong opposition to this bill before the Senate Ways & Means Committee last Monday. For more information, contact AWB’s Amber Carter.


Hidden Gas Tax: The Sequel – Even Worse than HB 1614
AWB and a coalition of business organizations have been making progress in opposing HB 1614, sponsored by Rep. Timm Ormsby, D-Spokane, that would put a barrel tax on petroleum products to fund stormwater clean-up projects.Now, environmental groups have begun pushing another idea:tripling the state’s hazardous substances tax under the Model Toxics Control Act. This proposal poses the same problems as the barrel tax and adds significant costs for air transportation, agriculture, gas stations and other businesses that pay in the state toxics control account. For petroleum products, it would result in as much as $250 million annually in new taxes – a huge burden in tough economic times.As the equivalent of a 6-cent-per-gallon gas tax hike, it would impair future funding for critical transportation projects around the state. To learn more, or to tell your legislator you oppose this idea, go to http://www.stopwahiddengastaxes.com/. For more information, contact AWB’s Grant Nelson.


Bills would require Department of Commerce to update state energy policy
HB 2658, sponsored by Rep. Phyllis Gutierrez Kenney, D-Seattle, and SB 6515, sponsored by Sen. Jim Kastama, D-Puyallup, seek to restructure and reorganize Washington’s Department of Commerce. As part of that reorganization, these bills, as well as SB 6421 sponsored by Sen. Phil Rockefeller, D-Bainbridge Island, would update the state’s energy policy. While AWB supports an update to the state’s energy policy, AWB has concerns with this legislation as introduced because it pre-determines the state’s energy policy/strategy before interested stakeholders can find an appropriate balance between renewable and traditional energy sources. For more information, contact AWB’s Chris McCabe.


AWB opposes bill that copies California TV energy efficiency standards
HB 2416, sponsored by Rep. Jeff Morris, D-Mount Vernon, would copy California’s recently approved legislation that only allows sales of “energy efficient” television sets. This legislation is expensive and bad for both business and the consumer. A recent study of California’s law projects that such TV regulations will destroy 4,600 jobs that are tied to TV sales, distribution and installation and would cost California $50 million a year in lost tax revenues.For more information, contact AWB‘s Chris McCabe.


Renewable energy bill would hit taxpayers hard
HB 2536, sponsored by Rep. John McCoy, D-Tulalip, requires utilities to offer long-term contracts to purchase power generated from small-scale renewable energy systems. According to the Washington Utility and Transportation Commission, this mandatory power purchase approach, also known as a “standard offer contact” or “feed in tariff,” could cost Washington electricity ratepayers an additional $5 to $27 million annually, assuming one-half of 1 percent of the utilities’ load is served by these small systems. For more information, contact AWB’s Chris McCabe.


OTHER NEWS
DOE releases pilot rulemaking on Children’s Safe Products Act
On Thursday, the Department of Ecology released its notice of pilot rulemaking to implement the 2007 Children’s Safe Products Act along with a draft list of 66 chemicals that importers and manufacturers, including retailers, will be required to report. Click here for additional information or contact AWB’s Grant Nelson.


Seventeen AWB members listed in Fortune’s 100 Best Companies to Work For
Fortune magazine’s 100 Best Companies to Work For is a perennial indicator of employers who are innovative in both what they do and how they treat their employees. This year, 17 AWB member companies are among the list of 100 great workplaces. Read more on AWB’s Member Spotlight. If your company has a good news story to share, contact Paul Schlienz.


GoGreen conference aimed at helping businesses become more sustainable
GoGreen ’10, a one-day sustainability conference next spring in Seattle, will feature more than 45 speakers and 12 different sessions aimed at helping business owners “go green.” Attendees will hear first-hand success stories and join in panel discussions offering turnkey solutions useful to any size business. AWB is a media partner for the conference and AWB members who attend will receive a discount; use the discount code “AWB” when registering. The conference is Wednesday, April 21, 8:30 a.m. – 4:30 p.m., at the Olive 8 at The Hyatt, 1635 8^th Ave., Seattle. To register online, visit GoGreen Seattle.


AWB EVENTS & RESOURCES
Get in compliance for 2010!
Significant changes were made to the required state and federal employment posters in 2009. Order your updated poster set today to ensure your company is in complete compliance with Washington state and federal labor law posting requirements. Contact AWB’s Jennifer Costello to order an updated poster set.


Best Practices Seminar for the Human Resources File Cabinet coming Feb. 11
Learn how to avoid fines, penalties and litigation by adopting “best practices” and maintaining proper employment records on Thursday, Feb. 11 at Baldwin Resource Group in Bellevue. Click here to register or contact Jennifer Costello.


THEY SAID IT
“Obama's big problem is that he cannot deliver more private sector jobs with a health care agenda that will discourage hiring, a global-warming plan that threatens to hobble industry and — despite his too-modest spending "freeze" proposal — huge deficits that have spooked the public.” – Debra Saunders, San Francisco Chronicle


This Week's President's Perspective: Banish the sacred cows