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2006 Legislative Report Card |
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Written On: July/August 2006 |
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Compiled by AWB Governmental Affairs Staff
Each year, shortly after the legislative session ends, the Association of Washington Business rates the governor and legislators on the way they voted on bills that have the potential to affect the state’s business community.
AWB’s Governmental Affairs Council compiles the legislative voting record from a list of bills considered most important by Washington’s business community. Each legislator receives a rating based on how he or she voted in relation to AWB’s position, either supporting or opposing significant bills and amendments. Many of Washington’s voters will use this record to base their endorsements at the polls in November.
AWB records votes on either the final passage of a bill or—in some cases—only on an amendment, depending on its significance. Often, AWB tabulates the votes of legislators on an amendment without including the final passage of a bill. Such amendments are included when they have a substantial impact on the business community.
AWB ultimately determines whether it supports or opposes
legislation by referencing its legislative objectives, which AWB members draft and approve prior to the start of each legislative session. After compiling a comprehensive list of legislative objectives, AWB looks for bills or amendments that fit with the recommended needs of the business community.
Sorting
In order to make it easier to locate a particular legislator within the table, AWB sorts the tables by chamber—one for the Senate and one for the House of Representatives—and then sorts legislators alphabetically using their last name. To sort the voting record by voting percentage or by district, please visit AWB’s Web site at www.awb.org.
ENVIRONMENTAL
3SHB 1458 On-Site Sewage Disposal Systems in Marine Areas Passed / AWB Supported
This legislation addresses failing septic systems located near marine waters. AWB supported this legislation because of the economic impacts on shellfish-harvesting companies caused by pollution from failing septic systems. The bill requires local governments and the Department of Ecology to provide financial and technical assistance to homeowners to repair septic systems impacting shellfish growing areas.
E2SHB 1488 Prohibiting Polybrominated Diphenyl Ethers Failed / AWB Supported
This bill addressed PBDE flame retardants, which include the chemicals penta-BDE, octa-BDE and deca-BDE. While the first two are no longer manufactured for commercial use, deca-BDE continues to be the safest, most cost effective, and highest-performing flame retardant available for some products. In its original form, the bill would have banned all three types of PBDEs, despite the best available scientific information. The House wisely agreed with AWB and exempted deca-BDE from prohibition.
ESHB 2738 Renewable Fuel Requirements Failed / AWB Opposed
This bill acted as the companion bill to Senate Bill 6508. Like its counterpart, this bill attempted to impose alternative fuel mandates on diesel fuel sales. An amendment introduced by Rep. Doug Ericksen, R-Ferndale, would have shifted the 2 percent volume metric biodiesel sales mandate from special fuels licensees to government agencies, but it failed. AWB sought an incentive-based approach, rather than mandates, in implementing an alternative fuel market in Washington. For this reason, AWB opposed this legislation.
SHB 2815 Best Available Science and Critical Areas Failed / AWB Opposed
This bill provided that cities and counties would include best available science by indicating the specific policies and regulations along with the sources of scientific information. The bill also created a lengthy, detailed procedure for public comment and final adoption of written management recommendations by the Department of Community Trade, and Economic Development, which local government could choose to follow. In doing so, local governments would receive safe harbor protection from legal challenges. This "top down" approach was contrary to the "bottom up" intent of the Growth Management Act and created an unnecessary and lengthy bureaucratic procedure. AWB was successful in blocking the passage of this legislation.
E2SHB 2860 Columbia River Basin Water Resource Management Passed / AWB Supported
This law will provide new appropriations of water from the Columbia River based on new storage, conservation and voluntary regional agreements between the Department of Ecology and individual stakeholders. AWB strongly supported this historic piece of legislation.
ESSB 6151 Protecting Odessa Aquifer Levels Passed / AWB Supported
This bill protects non-used water in the Odessa sub-area from relinquishment laws due to the conditions of drought or low flow as set forth under existing law for a 15-year period. If water right holders meet certain conditions, maintain withdrawal facilities in good operating condition, and if the Columbia Basin Project has not issued a superseding standby or reserve water right permit, Ecology considers the unused water as a standby or a reserve water supply.
ESSB 6508 Renewable Fuel Requirements Passed / AWB Opposed
Under this bill, special fuel licensees must provide evidence that 2 percent of annual diesel fuel sales are biodiesel. It takes effect either when the director of the Department of Agriculture determines that feedstock grown in Washington can satisfy the requirement, or on Nov. 30, 2008, which-ever happens earlier. A similar provision also exists for ethanol use. AWB supports the production, development and use of alternative fuels, but AWB opposed this legislation because of it created mandates rather than economic incentives.
HEALTH CARE
E2SHB 2572 Small Employer Health Insurance Passed / AWB Opposed
E2SHB 2572 created the Small Employer Health Insurance Partnership Program, a premium assistance subsidy for low-income employees. The program requires the employer to pay for 40 percent of a Basic Health Plan equivalent plan, with the state and the employee picking up the other 40 percent. This program will probably help some employees obtain health coverage during the short-term, but the Legislature missed the opportunity to take meaningful steps toward reducing the costs of health care for Washington’s employers. Those opportunities came in the form of various Senate amendments that the House Democrats subsequently rejected. Washington’s employers have continually asked for and been denied tax incentives, flexibility in plan design and other means of controlling out-of-control costs.
ESHB 2942/2493 Health Care Providers Passed / AWB Opposed
The business community widely opposed both of these bills, known as "any willing provider" legislation, because they would have limited employers working with health insurers to negotiate only with the most qualified providers in the community. These bills would have destroyed an employer’s ability to use volume to drive prices necessary to make health care dollars go further. These bills also would have prevented carriers from only contracting with providers delivering the best outcomes for patients by disallowing the ability to terminate provider contracts in certain circumstances and restricting the use of network selection processes.
HUMAN RESOURCES
SHB 2537 Establishing a Workers’ Compensation Pilot Program Passed / AWB Supported
The Department of Labor and Industries requested this bill, which establishes a pilot program to allow employers to assist injured workers in reporting their injuries and applying for workers’ compensation benefits. This contrasts with the current method of reporting, which occurs exclusively through the worker’s physician. AWB believes that reporting claims through the employer, as is done in the other 49 states, will be a faster and more efficient way to handle claims, and will result in faster benefits for workers and more employer involvement in workplace safety.
SHB 2538 Authorizing L&I to Request Warrants for Safety Inspections Passed / AWB Supported
This bill clarifies L&I’s right to enter workplaces under the Washington Industrial Safety and Health Act for safety investigations. The bill requires inspectors to seek consent to enter private property as well as entering said property only at a designated safe entry point, but also authorizes the agency to seek an administrative search warrant if an employer denies entry. This approach brings the WISHA program into conformity with the federal OSHA inspection program regarding search warrants.
SHB 3185 Concerning Violations of Wage Payment Requirements Passed / AWB Supported
This bill provides L&I with authority to investigate claims of wage payment violations and issue citations and notices of assessment to employers who have violated wage payment requirements. The bill contains several key procedural protections and safeguards to ensure that honest employers are not affected. This bill is the result of multi-year negotiations between AWB, allied employers organizations, L&I and labor.
UNEMPLOYMENT INSURANCE
ESSB 6885 Reforming Unemployment Insurance Laws Passed / AWB Supported
AWB strongly opposed this bill as it originally passed the Senate because it reinstated high benefits, but misdirected supposedly offsetting tax breaks toward the wrong targets, thus creating tax increases for some businesses and decreases for others. Due to tireless negotiations between business, labor, and legislators, the final version of the bill was greatly improved. While the business community lost some of the vital reforms acquired in 2003, they also retained several. Employers may even see tax decreases as long as the UI Trust Fund balance remains high.
TAX & FISCAL
E3SHB 1484 Property Taxes for School Levies Failed / AWB Opposed
This bill attempted to change the structure of property tax levies for school funding and would have authorized schools to use voter approved school levies for cost of living adjustments for teachers. While the bill did pass the House on a mostly party line vote, AWB was able to block them from passing the Senate.
HB 2671 Excise Tax Relief Passed / AWB Supported
This bill rolled back legislation from 2003 that created a new 5 percent penalty and shortened the period for paying taxes. AWB strongly supported the removal of the assessment penalty and the subsequent rollback of the reporting date. The bill passed unanimously through both houses and the governor signed it into law.
SSB 6594 Streamlined Sales and Use Tax Failed / AWB Supported
This bill would have brought Washington’s sales tax rules in line with the Federal Streamlined Sales Tax Project. The project is a national effort to simplify sales and use tax administration to ease the burden on businesses operating in multiple states and to create incentives for remote sellers to collect sales and use taxes voluntarily. AWB lobbied hard to seek passage of this bill and considers this a missed opportunity of the 2006 session.
SSB 6781 Tax Classification for Environmental Remediation Failed / AWB Supported
This bill re-enacted the law establishing a tax classification for environmental remediation activities, providing a sales and use tax exemption and a preferential business and occupation tax rate of 0.471 percent until July 1, 2010. This bill was a priority during the 2006 session and the employer community actively lobbied legislators for support. The bill passed through both the Senate and the House, but Gov. Gregoire vetoed it. AWB was discouraged when learning of Gov. Gregoire’s unwillingness to sign a bill that helps the environment.
ESSB 6896 State Funding Stabilization Failed / AWB Opposed
Unfortunately, the Legislature passed ESSB 6896 without the key amendments necessary to ensure a sustainable budget. This bill was included in the voting record twice because the final version omitted two key amendments. The first would have deleted two sections amending Initiative 601 and adjusted the state expenditure limit. The other would have made the bill contingent with voter approval of a resolution establishing a required rainy day fund be added to the state constitution. Unfortunately, lawmakers repeatedly legislated around the requirements of voter approved Initiative 601, which negated the effectiveness of spending limits, and the bill passed without these key amendments.
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