TOP STORIES
AWB Legislative & Lobby Days underway tomorrow
Day One of AWB’s annual Legislative & Lobby Days begins Tuesday with our Legislative Day, an event featuring panel discussions with legislators talking about the budget and taxes, energy, labor and workforce and education issues. Gov. Chris Gregoire is our 2012 Better Workplace Awards lunch speaker. The day culminates with our legislative reception, a premier event that will bring legislators and business leaders together at the Red Lion Hotel in Olympia. Online registration has ended, but walk-ins are welcome. Not able to attend? You can follow the action in real-time on Twitter by searching for the hashtag #awbday12. Then join us Wednesday morning for Day Two as we travel to the Capitol to meet directly with legislators for Lobby Day. This is your chance to let your lawmakers know how their decisions impact business. Thank you to generous AWB sponsors for their support this year. More than 70 members contributed to the event. A special thank you to our Platinum Sponsors, BP, Cascade Natural Gas Corporation and Schnitzer. Thanks also to our Better Workplace Awards sponsor Davis Wright Tremaine. Questions? Contact Anne Haller at 800.521.9325. Please note both Legislative Day and Lobby Day will commence as planned, regardless of anticipated weather conditions. Please take your time and travel safely.

B&O streamlining proposal introduced
Legislation aimed at streamlining the reporting and collection of business and occupation taxes was introduced Friday. Senate Bill 6176, which would save businesses money by removing layers of bureaucracy, is the centerpiece of Gov. Chris Gregoire’s strategy to boost small business growth, and it has strong support from AWB. Some of the state’s larger cities oppose the plan, however, because they believe it will cost them millions in revenue, and Seattle officials have been particularly critical. That prompted a detailed response from the Department of Revenue disputing virtually all of Seattle’s claims. For more information, contact AWB’s Amber Carter.

Gregoire calls for new oil tax to fund multi-billion transportation package
Gov. Chris Gregoire announced Tuesday during her State of the State address that she wants to impose a new $1.50 “fee” on every barrel of oil produced in the state in order to fund a 10-year, $3.6 billion transportation package. The proposal, which aims to address critical highway and ferry maintenance needs, was part of the governor’s final State of the State address. Although AWB supports making maintenance of the state’s transportation infrastructure a priority, we are committed to finding alternatives to an oil tax to pay for it. A new oil tax would drive up prices at the pump, hurt refineries, and – because it’s characterized as a fee instead of a tax – be subject to non-transportation uses by future legislatures. Sen. Joe Zarelli, R-Ridgefield, provided the Republican response to the governor’s speech, citing the need for more reforms before taxes, noting “Government can become more efficient and cost-effective — if the Legislature wants it to.”

Charter school, teacher evaluation bills are hopeful signs of change
A flurry of education-related proposals were introduced in the Legislature last week, including bills that would allow charter schools in Washington (House Bill 2428, sponsored by Rep. Eric Pettigrew, D-Seattle; and Senate Bill 6202, sponsored by Sen. Rodney Tom, D-Bellevue) and others aimed at changing the way teachers and principals are evaluated. Those include House Bills 2309 and 2427, both sponsored by Pettigrew. The charter school component is likely to be the most controversial element, The Seattle Times reported, but it’s “well worth the fight,” Pettigrew said at a press conference. AWB is pleased with the direction of the bills that have been introduced so far, said Donna Steward, AWB’s government affairs director for education.

Raha, chief economist, leaving for private sector
Arun Raha, the state’s chief economist and executive director of the Economic and Revenue Forecast Council, is leaving at the end of the month to return to work in the private sector. Raha, who arrived in Washington just as the economy was crashing, developed a reputation for his sharp wit and his ability to explain complex economic terms to the general public. Public radio reporter Austin Jenkins compiled a list of the best “Arun-isms,” that capture the economist’s deadpan style. (It does not, however, include the Osama bin Laden joke that Raha delivered at AWB’s Spring Meeting. To read that one, check out our blog post.) In his new job, Raha will be director of corporate economics for Eaton, a Cleveland, Ohio-based corporation where we previously worked.

DelBene resigns from Department of Revenue to run for Congress
Democrat Suzan DelBene resigned last week as director of the state Department of Revenue to run for Congress in the newly redrawn 1st District. DelBene, a former Microsoft executive, ran unsuccessfully against U.S. Rep. Dave Reichert in 2010, but as a result of the just-completed redistricting process her Medina home is now located in the 1st District, which is being vacated by U.S. Rep. Jay Inslee, who is running for governor. Gov. Gregoire appointed Brad Flaherty to replace DelBene. Flaherty has worked for the Department of Revenue since 1979 and became deputy director in August.

State health exchange bills threaten private market
Lawmakers introduced a pair of bills last week to establish Washington’s first health care exchange. The exchange, a component of the federal health care reform law, is not necessarily a bad idea, but unfortunately the bills as written (House Bill 2319, sponsored by Rep. Eileen Cody, D-West Seattle; and Senate Bill 6178, sponsored by Sen. Karen Keiser, D-Kent) significantly impact the private health insurance market, increasing costs to purchasers and drastically reducing options for coverage. In related news, 30 Democratic state lawmakers signed on to a legal brief asking the U.S. Supreme Court to uphold the federal law, which is being challenged by Rob McKenna, the state attorney general and gubernatorial candidate.

Lawmakers want to make Washington second state in nation with mandatory paid sick
leave
A half-dozen Democratic lawmakers have signed on to a bill that would make Washington just the second state in the country to require employers give workers paid “sick and safe” leave. Senate Bill 6229, prime-sponsored by Sen. Jeanne Kohl-Welles, D- Seattle, seeks to add Washington state to a growing list of mostly local governments mandating paid leave for workers. In September, Seattle became the third city in the country to mandate paid sick leave, joining San Francisco and Washington, D.C. In June, Connecticut became the first state in the country to adopt a paid leave requirement.

Chambers to retire from State Supreme Court
Supreme Court Justice Tom Chambers has announced he will retire from the State Supreme Court at the end of his term this year. At least two candidates have already announced they will run for the position, The Olympian reports: King County Superior Court Judge Bruce Hilyer and former Pierce County Executive John Ladenburg. Former Justice Richard Sanders, who lost his seat in 2010, is also considering a run for the position.

Nickels, former Seattle mayor, considers run for Secretary of State
Greg Nickels, who served as Seattle mayor from 2002 to 2010, is considering a run for Secretary of State, The Seattle Times reports. The current secretary of state, Sam Reed, is retiring and the open seat has already attracted interest from several candidates, including Democratic lawmakers Zach Hudgins and James Kastama, former Democratic state lawmaker Kathleen Drew, and Thurston County Auditor Kim Wyman, a Republican.

U.S. Chamber of Commerce: The state of American business is improving – slowly,
weakly
The nation’s economy is improving, but slowly, weakly and at a pace insufficient to put American’s back to work, U.S. Chamber of Commerce President and CEO Tom Donohue said Thursday during the organization’s annual State of American Business address. Donohue called on President Obama and Congress not to waste 2012 on election-year politics, and he made a vigorous defense of free enterprise, saying economic growth is the only way out of the problems the country faces. The speech coincided with the launch of the Chamber’s new news portal, Free Enterprise.

Program underway to help keep injured workers on the job
The state Department of Labor & Industries launched a new program last week that’s meant to create ways for injured workers to remain at work in light-duty jobs. The Stay at Work program is one element of the workers’ compensation reform measures passed during the 2011 legislative session. Under the program, an employer would create a light-duty or transitional job for an injured worker. The worker would receive wages from the employer instead of time-loss compensation from L&I, and the employer would be reimbursed 50 percent of the worker’s base wage, plus some expenses up to $10,000 per claim.

AWB Lobby Lunch resumes Thursday
Plan to join us Thursday for the first AWB Lobby Lunch meeting of the 2012 legislative session. The weekly series offers timely, informative updates from key players in the legislative process. Our guests this week are Marty Loesch, Gov. Gregoire’s chief of staff, and Marty Brown, state budget director. The lunch meetings begin at noon in AWB’s Large Conference Room.

Get a jump on the next week in Olympia with AWB’s Friday Phone Briefings
Join us again this Friday at 7:30 a.m. for our AWB Friday Phone Briefing, a 30-minute review of the week in Olympia and a look ahead to the next. Each week throughout the session you’ll hear from AWB staff and special guest speakers about what’s happening in the Legislature and what AWB members can do tohave an impact. Listeners will also have a chance to ask questions about legislation or other policy issues. Register online for this Friday’s call; a confirmation email will be sent to you and reminder emails will alert you in the days leading up to Friday’s call. Questions? Contact Jocelyn McCabe, AWB vice president, communications at 360.943.1600.

Department of Ecology extends comment period on fish consumption, water quality report
The Department of Ecology’s report, “Fish Consumption Rates Technical Support Document: A Review of Data and Information About Fish Consumption in Washington,” may play an important role in determining the cleanup standards for Washington’s fish, and shellfish-producing waters. Ecology says new data indicates people eat more fish than previously thought. The amount of fish eaten determines water quality and cleanup standards and therefore whether new controls, restrictions or rules are necessary. The comment period on the draft document was scheduled to end on Dec. 30, but at the request of several interested parties, has been extended to 5 p.m. on Wednesday. Comments may be emailed to fishconsumption@ecy.wa.gov.

Draft 2012 LID technical guidance manual available for review
WSU Extension and the Puget Sound Partnership have released the Draft 2012 Low Impact Development Technical Guidance Manual for Puget Sound. The draft is available for review and comment through Feb. 9. Comments must be submitted online and no late comments will be accepted. For more information, contact AWB’s Brandon Houskeeper.

Deadline extended on Puget Sound Partnership draft Action Agenda, AWB meeting set
The comment period on the Puget Sound Partnership’s recently released the Draft Action Agenda has been extended to Feb. 3. AWB staff will be working the AWB Puget Sound Partnership Subcommittee to develop written comments. Members can help by providing comments to AWB staff as early as possible. Please send comments to AWB’s Brandon Houskeeper.

KEY HEARINGS, MEETINGS
AWB Tax and Fiscal Policy Council to meet Jan. 23
AWB’s Tax and Fiscal Policy will meet from 10 a.m. to noon next Monday, Jan. 23, to discuss Gov. Gregoire’s tax simplification proposal, Senate Bill 6176. The bill, sponsored by Sen. Derek Kilmer, D-Gig Harbor, includes many promising elements, but it is 178 pages long and will require significant review. For more information, please contact AWB’s Amber Carter.

PRIORITY LEGISLATION
Lawmakers propose statewide ban on plastic grocery bags
Lawmakers in the House and Senate introduced bills last week aimed at banning the use of plastic grocery bags throughout the state, including House Bill 2404, sponsored by Rep. Joe Fitzgibbon, D-Seattle. A representative of the nation’s largest plastic bag manufacturer opposes the idea, but it’s divided small and large grocers. The Northwest Grocery Association, which represents Fred Meyer, QFC, Safeway and other large stores, does not oppose moving away from plastic bags.

Proposed ban on flame retardant in kid products is premature
Lawmakers introduced a pair of bills last week that seek to impose costly new requirements for the makers of children’s products. Much of the attention focused on the legislation’s proposed ban of chlorinated Tris in children’s products, but the bills(Senate Bill 6120, sponsored by Sen. Sharon Nelson, D-Seattle; and House Bill 2266, sponsored by Rep. Mary Lou Dickerson, D-Seattle) would also require manufacturers to submit so-called alternatives assessments to the state for a host of chemicals. This would be in addition to a new reporting requirement that goes into effect this summer. Protecting the health and safety of children is paramount, but it does not make sense to add another level of bureaucracy now, before the new reporting requirements rule has been tested. In addition, AWB prefers a unified, federal science-based solution to issues such as this, rather than state-by-state requirements. For more information, contact AWB’s Courtney Barnes.

Shoreline bill would allow project to commence in advance of appeal decision
AWB testified last week in favor of legislation that would allow development of a project outside shoreland areas to continue before final action has been taken on a related appeal. House Bill 2162, sponsored Rep. Dean Takko, D-Longview, would provide some relief to project proponents by allowing the work outside of a shoreline area to proceed during a shoreline appeal. This fix allows for important work to be done in a timely manner. For more information, contact AWB’s Brandon Houskeeper.

SEPA bill would create board to update categorical exemption rule
Lawmakers introduced a bill last week that would create a seven-member board charged with updating the categorical exemptions to the State Environmental Policy Act. House Bill 2253, sponsored by Rep. Joe Fitzgibbon, D-Seattle, would give the Categorical Exemptions Board until Dec. 31 to make the changes, which would include higher default levels and more flexible levels than currently specified. For more information, contact AWB’s Brandon Houskeeper.

AWB EVENTS & RESOURCES
AWB Spring Meeting set for June 12-13 in Spokane
Save the date: AWB’s Spring Meeting will be held June 12-13 in Spokane. The meeting, which is normally held in May, is being pushed back next year so it can include a gubernatorial debate and AWB’s endorsements for governor and attorney general. Those activities have historically occurred at AWB’s Policy Summit in September. Interested in becoming a Spring Meeting sponsor? Contact AWB’s Anne Haller today.

New, low cost 401(k) program for AWB Members!
AWB is pleased to announce a new member service, the BenefitGuard 401(k) Plan. You don’t need to be a Fortune 500 company to have benefits like one! The plan is full-service and low cost and can be tailored to your company’s specific needs. The plan takes care of all the paperwork, plan audit and IRS filings so that your time is spent taking care of your business. To find out how to take advantage of this powerful retirement plan option, please call us toll free at 866.670.4015 or go to http://www.awbbenefitguardplan.com/.

THEY SAID IT
“We passionately believe that it’s time to stop apologizing for the one thing in our society that really works —American free enterprise.” ~ Tom Donohue, president and CEO, U.S. Chamber of Commerce, delivering the State of American Business 2012

This Week's President's Perspective: Our Initiative Process Needs to Change