TOP STORIES
Time's running out in Olympia — legislators need to hear from employers!
Lawmakers in Olympia now have just four days to resolve their budget differences before the regular session concludes on Thursday. Over the weekend, the state Senate narrowly approved a tax package that raises $890 million through a combination of sources, including a three-tenths-of-a-cent sales tax increase, a $1-per-pack increase in the cigarette tax, new taxes on bottled water and taxes on service businesses. The House, which has proposed a plan that does not include a sales tax hike, must now approve its version before the two chambers can attempt to resolve their differences. As lawmakers wrestle with a solution, it’s becoming increasingly clear that voters do not like what they’re seeing. A whopping 64 percent surveyed in a recent poll said they did not believe the Legislature should have suspended Initiative 960, a move that cleared the way for tax increases, writes reporter Austin Jenkins in today’s Crosscut. E-mail your legislators or call them toll-free at 1.800.562.6000. Tell them that when employers succeed, the state prospers. Don’t make things more difficult for employers by increasing the cost of doing business. And be sure to share how your business has changed to survive in this difficult economy. Your input is critical as lawmakers head into the final days of session.


Income tax now on table as possible budget fix
In a surprise move, the Senate Ways and Means Committee rushed through a bill last week that would ask voters to decide in November whether to institute an income tax on people making over $200,000 per year and lower sales taxes. The bill, SB 6250, sponsored by Sen. Rosa Franklin, D-Tacoma, was declared an “awful idea” by the Seattle Times. AWB believes an income tax is an issue of great magnitude that needs to be carefully studied as to how it would affect different industries before any legislation to change our tax system is considered. What is not needed is a rushed bill with little public input or time for careful consideration. For more information, contact AWB’s Amber Carter.


A ghost bill that turned into a monster
HB 3191, sponsored by Rep. Ross Hunter, D-Medina, began life as a ghost – a title-only placeholder bill. Now this “ghost” bill has morphed into a monstrous tax measure that raises everything from business and occupation rates for certain industries to raising the price of cigarettes and candy; overturns court decisions; and ends various tax exemptions. This bill, now awaiting passage by the House, is a monument to the Legislature’s unwillingness to consider making needed cuts instead of raising taxes. For more information, contact AWB’s Amber Carter.


President Obama pushes Congress to approve health-care legislation through budget reconciliation
Congress’ health-care overhaul legislation sprang back to life last week with President Obama’s push to move it through Congress through an arcane process called reconciliation. The process, intended for budgetary bills, allows the Senate to pass bills by 51 votes, bypassing any possibility of a filibuster that could only be stopped with a 60 vote supermajority. The bill under consideration is essentially the same bill passed late last year by the Senate, and has much opposition in the House, even from some Democrats. Health-care reform is needed, but the current bill does not embrace a market-oriented approach, including medical liability reform and allowing individuals to purchase insurance across state lines. Urge your senators and members of Congress to oppose pushing this legislative effort. It’s time to scrap this bill and start over with real health-care reform.


Sonntag: State must look at big picture when it comes to money
Washington State Auditor Brian Sonntag shared his ideas for running state government more efficiently at AWB’s final Lobby Lunch meeting last Thursday. Sonntag noted with surprise that that Washington has no chief financial officer, and he shared his belief that the state's finances will not return to pre-recession levels any time soon. "We're going to be in a different place," said Sonntag. "State government needs to recognize that and do things differently."


Southeast Washington employers urge government to fix economy
Last week AWB President Don Brunell met with AWB members in Walla Walla and the Tri-Cities. Their message was overwhelming that instead of expanding expensive federal programs, Congress and the Obama administration needs to work hard on restoring economic vitality. On the state level, they are especially concerned with skyrocketing costs related to workers’ compensation insurance rates.


Will Washington lag in the Race to the Top?
The U.S. Department of Education announced 15 states and the District of Columbia as finalists last week for Round 1 of the competition for the Race to the Top education grants. While Washington sat out the first round, to be awarded in April, it is in competition for Round 2, to be awarded in June. The Legislature is currently debating education reform initiatives aimed at meeting the grant objectives, but the legislation brought forward thus far, E2SSB 6696, includes only modest attempts to address such issues as teacher and principal evaluation, school accountability and assistance to poorly performing schools. Glaringly absent is the ability for the development of charter schools, a specific component of Race to the Top evaluation criteria. Upon review of the applications of Round 1 finalists, absent stronger solutions in the above-mentioned areas, it is highly unlikely Washington will be in the running for any of the Race to the Top funding. For more information, contact AWB’s Donna Steward.


Catch up on the week in Olympia with Friday’s WashACE phone briefing
Join us this Friday for what may be the last of our weekly WashACE phone briefings on legislative issues with policy experts. The call begins at 7:30 a.m. and ends promptly at 8 a.m. Register for Friday’s call online or contact WashACE’s Richard Davis to suggest a topic for the briefing.


PRIORITY LEGISLATION
Legislature passes AWB-supported tax and fiscal bills
AWB is pleased that the Legislature approved two sensible tax and fiscal bills. SB 2620, sponsored by Rep. Ross Hunter, D-Medina, was the AWB-supported digital goods legislation; HB 3066, sponsored by Rep. Kevin Parker, R-Spokane, creates uniformity in the annual tax reporting survey. Both bills are on their way to the governor for her signature. For more information, contact AWB’s Amber Carter.


AWB-supported shorelines bill approved by Legislature
On Tuesday, the Senate passed HB 1653, sponsored by Rep. Geoff Simpson, D-Covington. This is an important bill that protects existing businesses and uses on Washington’s shorelines. AWB worked hard to reach agreement with a wide variety of stakeholders including counties, cities, ports and the environmental community on a plan to protect existing structures and uses on Washington’s shorelines. The bill now goes to the governor for her signature. For more information, contact AWB’s Chris McCabe.


AWB opposes $100 million new stormwater tax – tell the House to “vote no”
HB 3181, sponsored by Rep. Timm Ormsby, D-Spokane, more than doubles the tax on petroleum and other products to pay for stormwater cleanup projects. While AWB agrees that addressing impacts caused by stormwater is important for Puget Sound and the economy of Washington state, adding $100 million in new taxes on our state’s businesses and citizens at a time when our economy is still trying to recover is a bad idea. HB 3181 will lead to lost jobs, an increase in the price of fuel at the pump and may be challenged in court under the 18^th Amendment, which requires taxes on fuel to be used for transportation. Instead, AWB supports using part of the $240 million in the Model Toxics Control Act (MTCA) account over the next two years for stormwater projects; prioritizing existing and future stormwater funding based on the Department of Ecology’s stormwater study (to be completed this summer). AWB also supports convening a “stormwater summit,” as proposed by the Puget Sound Partnership, to develop a broad-based, long-term funding source to address stormwater pollution. For more information, contact AWB’s Grant Nelson.


Economic vitality now must be considered in transportation plans
Economic vitality is one of the factors that the state must now consider in transportation planning thanks to SB 6577, sponsored Sen. Jim Kastama, D-Puyallup, AWB believes this is just plain common sense and is pleased with the bill’s passage in the House on Wednesday. SB 6577 now awaits the governor’s signature. For more information, contact AWB’s Amber Carter.


Legislature passes AWB priority SEPA streamlining bill
On Saturday, the Legislature passed AWB’s priority land use bill for 2010, ESHB 2538, sponsored by Rep. Dave Upthegrove, D-Burien. ESHB 2538 creates incentives for higher building densities within urban growth areas for residential and mixed-use developments, stimulates economic development and will create jobs. The bill now heads to the governor for signature. For more information, contact AWB’s Chris McCabe.


AWB-supported wage and hour bill heads to governor’s desk
The Senate has passed SHB 3145, sponsored by Rep. John McCoy, D-Tulalip, which strengthens penalties and enforcement for wage payment complaints. AWB worked collaboratively with the Department of Labor & Industries and worker advocates, including Columbia Legal Services, to craft a compromise that is fair to employers and workers.The bill awaits the Governor’s signature. For more information, contact AWB’s Kris Tefft.


Water rights processing bill passes House with fee opposed by AWB – contact your senator
The House passed an amended version of the Department of Ecology’s water right processing bill last week that, unfortunately, includes an amendment that significantly increases fees for processing water rights applications. AWB supports the underlying version of E2SSB 6267 sponsored by Sen. Phil Rockefeller, D-Bainbridge Island. The underlying bill seeks to streamline the water right application process without the need for mandatory new fees. With the House amendment, the fee for a new water right application and a transfer or change of an existing water right will increase dramatically: The minimum fee would now be $1,000 and the maximum $35,000. Even with this higher cost, there is no guarantee for the existing 7,000-plus water right applicants or for new applicants that water right application processing will be done any faster. Please contact your state senator and tell them to vote no on concurrence to E2SSB 6267. Instead, tell them to send E2SSB 6267 back to the House and ask for the removal of this amendment. For more information, contact AWB’s Chris McCabe.


House approves wrongful death liability bill; back to Senate for concurrence
Bad news for employers: SB 6508, sponsored by Sen. Darlene Fairley, D-Shoreline, passed the House on Friday and is headed back to the Senate for concurrence.At issue is an amendment raising fees on court filings and traffic tickets to create a fund that reimburses local governments from the increased liability costs of the bill. AWB opposes this bill, a priority item for trial lawyers, because it unjustifiably expands liability and unnecessarily increases costs for private and public entities.The new amendment raising fees to help fund the increased liability makes it worse. For more information, contact AWB’s Kris Tefft.


Legislature passes private sector unionization bill
Last week, the Legislature passed SSB 5046, sponsored by Sen. Jeanne Kohl-Welles, D-Seattle.This unfortunate and unnecessary bill puts a group of private sector employers under the jurisdiction of the Public Employment Relations Commission for purposes of enforcing union organizing and collective bargaining. While the bill, as passed, applies only to small symphony orchestra employers, AWB believes that organized labor intends to seek its gradual expansion to all industries in the future. For more information, contact AWB’s Kris Tefft.


Educational leave bill does not survive Senate cutoff
HB 2444, sponsored by Rep. Brendan Williams, D-Olympia, sought to expand the state Family Leave Act to require that all employers give workers time off to attend a child’s educational events. AWB argued this bill is completely unnecessary and adds confusion to our state’s already complicated laws governing leaves of absence.The bill appears dead, having failed to emerge from the Senate by last Friday’s cutoff.For more information, contact AWB’s Kris Tefft.


AWB supported copper brake pad legislation passes legislature goes to governor
SB 6557, sponsored by Sen. Kevin Ranker, D-San Juan Island, passed the House on Thursday and the Senate earlier today. The bill now goes to the governor, who is expected to sign the measure into law. SB 6557 limits the use of copper and other materials in vehicle brake pads that are thought to be harmful to aquatic species, provided alternatives are available and they do not create financial hardships for brake pad and vehicle manufacturers, and they do not compromise safety. Lawmakers reached agreement on the final bill through a collaborative process involving AWB, vehicle manufacturers, dealers, retailers and brake pad industry representatives. For more information, contact Grant Nelson.


AWB supported greenhouse gas reporting bill heads to governor’s desk
SB 6373, sponsored by Sen. Kevin Ranker, D-San Juan Island, cleared its final hurdle on the Senate floor today and heads to the governor’s desk where she is expected to sign the measure into law. AWB supports this legislation because it will bring Washington state greenhouse gas reporting requirements more in line with those adopted last year by the Environmental Protection Agency and eliminate reporting requirements for vehicle fleets and minor sources of emissions. For more information, contact AWB’s Grant Nelson.


House makes tort judgment interest bill (slightly) better
AWB has opposed ESB 6764, sponsored by Sen. Randy Gordon, D-Bellevue, a bill that undoes one of the few pieces of tort reform this decade and raises the interest rate on court judgments in tort cases from 2 percent over the current Treasury bill to the near-usurious level of 12 percent.This rate applies only to private sector entities; the public sector is exempted.The bill thus unfairly interferes with the right of private sector defendants to appeal adverse judgments. When it passed the House last week, the bill was amended to keep the Treasury bill rate for public entities, and impose a 2 percent over prime rate on private entities.The amendment improves the bill slightly, but continues the basic unfairness of treating the public and private sector differently.The bill is back in the Senate this week for concurrence. For more information, contact AWB’s Kris Tefft.


OTHER NEWS
Governor to appoint Threedy as chairman of Board of Industrial Insurance Appeals
Gov. Gregoire is expected to announce this week the appointment of Dave Threedy as the next chairman of the Board of Industrial Insurance Appeals, the independent state agency that oversees appeals of workers’ compensation and workplace safety claims.Threedy, a 25-year veteran of the agency, currently serves as its executive secretary. He replaces outgoing chairman Tom Egan. The chair is a position appointed by the governor on the basis of a joint appointment by AWB and the Washington State Labor Council, representing the public interest on the board. Threedy will serve a six-year term and will go to work pending confirmation by the state Senate.


Annual manufacturing and wholesale survey needs your input
The AWB Institute, in partnership with RSM McGladrey, is hosting an annual manufacturing and wholesale distribution survey. The survey focuses on key areas within the industry dealing with condition of business, growth strategies, global economy, supply chain, operational effectiveness, margin improvement, innovation, health care, tax strategies, information technology, risk management and workforce. The survey is open until Friday, April 2. For more information, contact AWB Institute’s Grant Gilmore.


Register now for Partners in Emergency Preparedness Conference, April 6-7
Don’t miss this opportunity to join with emergency management planning professionals from the private and public sectors and share lessons in emerging topics in preparedness. The Partners in Emergency Preparedness Conference takes place April 6 – 7, at the Greater Tacoma Convention and Trade Center. Call 866.986.8083 or 253.238.8000 for lodging registration at the Hotel Murano. For more information, contact Dana (Schlenker) Colwell at 253.445.4575.


Win $10,000 for your small business with Office 2010 video contest
Any business with seven or fewer full-time employees in Washington state is eligible to enter the Greater Seattle Chamber of Commerce and Microsoft Corporation’s “It’s Time for Business with Office 2010 Video Contest. Participation is easy. Download a FREE trial version of Office 2010 and use it in your business. Then create a short video about your positive experience with Office 2010. Finally, complete the video contest submission form at ItsTimeForBusiness.com before Thursday, April 22. Submissions will be judged on five criteria: originality, creativity, concept, information, and overall presentation. Prizes include $10,000 (Best Video/Grand Prize Winner), $1,000 (Best Foreign Language Video) and $1,000 (Best Video by a Woman-Owned Business). No purchase is necessary but participants must meet all contest rules and eligibility requirements. Click here for more information.


Safeco’s $3.5 million art collection coming to a museum near you
Washington state’s art lovers have reason to celebrate thanks to Safeco Insurance’s gift of a $3.5 million art collection to the Washington Art Consortium (WAC). The donation is a major event in the Northwest art world. Safeco’s donation includes works of art from internationally known Northwest artists including Dale Chihuly and Jacob Lawrence. The Wright Exhibition Space in Seattle will exhibit a portion of the donated artwork in April. In 2011, all seven WAC member museums will display artwork from the collection. If you have a good news story about your company that you’d like to see in Member Spotlight, contact AWB’s Paul Schlienz.


AWB EVENTS & RESOURCES
AWB Spring Meeting- May 11 – 12
Join us for our annual spring meeting at the historic Davenport Hotel in Spokane on May 11 – 12. Keynote speakers includeDr. Elson Floyd, Washington State University president; David Allen, executive vice president of McKinstry Co.and Dr. Arun Raha, executive director of the Washington State Economic and Revenue Forecast Council.The event also features the presentation of AWB’s annual Community Service and Environmental Excellence Awards. As part of the afternoon program on the 11th, AWB government affairs staff will be leading issue discussions and providing an overview of the 2010 legislative session. Register online or contact AWB’s Jodi Martinez.


Get recognition for your company’s achievements with AWB’s Community Service Awards
AWB’s Community Service Awards recognize members’ volunteerism and contributions that make our communities better places to live and work. Entries may be submitted for projects that support education, youth organizations, community beautification projects, community organizations that help people in need or programs recognizing volunteerism. There’s also a special general category for projects that mobilize communities into action. Awards will be presented at the Davenport Hotel in Spokane, in conjunction with AWB’s Spring Meeting May 11-12. If you would like us to fax or mail a nomination form to you, contact AWB’s Jodi Martinez.


AWB Environmental Excellence Awards – Now accepting nominations
AWB’s Environmental Excellence Awards recognize companies demonstrating initiative, innovation and outstanding achievements in environmental compliance, protection and conservation. Award categories include resource conservation and pollution prevention, sustainable communities and green building, leading environmental practices, and green enterprise and technology. Click here for more details.


Reminder: We need your nominations for AWB Board
AWB is seeking nominations for its Board of Directors. Please send the name and contact information of your nominees to Dick Walter, AWB vice president of operations, by Friday, April 30.


Legislative wrap-up Webinar — Tuesday, March 23
Important new employment and human resource bills were introduced and considered in 2010 session of the Washington State Legislature, including changes to the state’s unemployment insurance system, workers’ compensation system, paid family leave and workplace relations. Join us for a free 60-minute webinar to find out what laws passed, how they will affect your operations and what bills are still alive for next year. We will also talk about how to prepare for possible future changes to our state’s employment laws. Register online or contact AWB’s Jodi Martinez.


Employee handbooks and personnel policies: Are you in compliance?
Given the growing legal and practical importance of personnel policies in today's workplace, many employers are turning to the use of employee handbooks to implement and communicate the details of the employer/employee relationship. A carefully prepared and customized handbook can be an employer's biggest weapon against labor and employment litigation, if properly crafted and utilized. This seminar on May 4, 8 a.m. – noon, at the Holiday Inn Seattle-SeaTac Airport (17338 International Blvd., SeaTac) will offer helpful advice on what to include in your employee handbook so that you can maximize communication and minimize your liability. For more information, contact AWB’s Jodi Martinez.


THEY SAID IT
“The man who vowed to undo Washington's wicked ways has directed the Congress to ram Obamacare through, by one vote if necessary, under the parliamentary device of ‘budget reconciliation.’ The man who ran as a post-partisan is determined to remake a sixth of the U.S. economy despite the absence of support from a single Republican in either house, the first time anything of this size and scope has been enacted by pure party-line vote. Surprised? You can only be disillusioned if you were once illusioned.” – Charles Krauthammer


This Week's President's Perspective: Start over is not code for stonewalling health-care reform