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Home / Washington Business - July/August 2004 / Missed Opportunities in 2003 and 2004: Will the Legislature Miss Them Again in 2005? |
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Missed Opportunities in 2003 and 2004: Will the Legislature Miss Them Again in 2005? |
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Written On: July/August 2004 |
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Last year AWB urged the Legislature to pass liability or tort reform, bring the minimum wage into line with the national average, provide the means for small business to provide their employees with affordable health insurance, and overhaul Washington’s broken workers’ compensation system. Unfortunately, the Legislature missed its opportunity to make any of these reforms. Making matters even worse, the Legislature also missed these same opportunities in 2004.
Many of these missed opportunities were passed by the Senate, but killed by House leadership. AWB was disappointed in the House’s refusal to tackle these important issues and create a better business climate in our state. Will the same legislative opportunities be missed in 2005?
2004’s missed legislative opportunities included:
Minimum Wage
At $7.16 per hour, Washington’s minimum wage is the highest in the nation. And we are only one of two states that have an automatic escalator applied to the minimum wage on an annual basis. Not surprisingly, our state also has the second highest unemployment rate in the nation. Many of our industries are suffering. A case in point is Washington’s asparagus industry, which cannot compete against Idaho’s minimum wage of $5.15 per hour, much less Peru’s minimum wage of $5 per day. SB 5697 sought to control the automatic yearly increase of the minimum wage rate by allowing increases only for those months when Washington’s unemployment rate is lower than the national average.
Tort Reform
Physicians are finding Washington an increasingly difficult state to practice medicine due to the constant threat of exorbitant medical malpractice damages. SB 5728 would have brought needed tort reform to our state by limiting non-economic health care damages to $350,000. In addition, SB 5728 would have done much more than cap medical malpractice damages. Indeed, this legislation would have limited liability for the construction industry, governments and social workers in addition to other tort reforms. SB 5728 was opposed by trial lawyers and their supporters in the Legislature.
Small Group Insurance
One of the difficulties of doing business in Washington is finding health insurance if you’re a small company. HB 2460 would have allowed health insurance companies to offer limited health plans to small employers, instead of the current requirement that the insurer offer a plan comparable to individual plan requirements. Although the bill was passed by the Legislature, it did not include a provision that would have benefited small employers by allowing limited health plans.
Workers’ Compensation
The Legislature’s performance on workers’ compensation was very disappointing. As in 2003, lawmakers failed to address key court decisions which are major cost factors for employers. With workers’ compensation rates skyrocketing, the Legislature must act on this issue in 2005 in order to make Washington more competitive for business.
AWB remains supportive of these legislative goals. We will push hard to re-introduce each of these bills in the 2005 legislative session. We are determined that 2003 and 2004’s missed opportunities will become 2005’s legislative triumphs.
HB 2460 Small Group Insurance Passed by the Legislature. Governor vetoed portions of bill allowing limited health plans for small employers.
HB 2779 Reference Checks Passed in the House, died in Senate Rules.
SB 5378 Wage Simplification Passed in the Senate, died in House Commerce & Labor.
SB 5697 Minimum Wage Passed in the Senate, died in House Commerce & Labor.
SB 5728 Tort Reform Passed in the Senate, died in House Judiciary.
SB 6734 Water Right Relinquishment Died in Senate Natural Resources, Energy & Water.
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