TOP STORIES
B&O tax simplification bill gains momentum
Gov. Chris Gregoire’s proposed tax simplification legislation is moving forward in both the House and Senate, but it will require strong support from the business community to overcome opposition from the state’s largest cities. A Senate version, Senate Bill 6176, was introduced Jan. 13, and its companion, House Bill 2490, followed last Monday. The aim of the bills is to make the state Department of Revenue the sole collector of business and occupation taxes, similar to the way sales tax is handled. The change will result in considerable savings in time, money and frustration for employers, especially small businesses. But the cities fear it will cost them money and are pushing back with a host of arguments that state officials have debunked. Speaking at AWB’s Legislative Day lunch, Gregoire said the claim that cities will lose money is flat wrong and she urged employers to help her pass the legislation. For more information, contact AWB’s Amber Carter.

Winter blast fails to stop AWB’s Legislative and Lobby Days
More than 175 people braved the snow last week to attend AWB’s annual Legislative Day in Olympia, and more than a dozen returned the following day – after heavy snow fall overnight – for Lobby Day on the hill. Thanks to everyone for helping make it a great event despite challenging circumstances. Gov. Chris Gregoire delivered the keynote lunch address and helped distribute AWB’s 2012 Better Workplace Awards. The governor called on the business community to help pass her B&O tax simplification bill, a major component of her final legislative agenda and a priority for AWB. Panel discussions revealed the partisan divide over budget talks, showcased the work of some innovative public schools, and previewed possible changes to the controversial and problematic renewable energy law that resulted from Initiative 937. You can view the governor’s address and panel discussions on tax and fiscal policy and employment law on TVW. Thanks again to all who attended, and special thanks to the generous sponsors who made it possible.

AWB names winners of 2012 Better Workplace Awards
Congratulations to the winners of this year’s Better Workplace Awards, AWB’s annual recognition employers that have set the bar for workplace safety, job training and advancement, and innovative benefit and compensation programs. The winners include: Ash Grove Cement Company, Seattle; Fluor Federal Services, Richland; Clark Nuber, Bellevue; Sonderen Packaging, Spokane; Ryan, Bellevue; Wheelabrator Spokane Inc., Spokane; and SKILS’KIN, Spokane.

AWB Institute releases report on state’s manufacturing economy
Rising power costs and the need for skilled workers top the list of concerns for Washington manufacturers, according to a new report from the AWB Institute. The report, “Challenges & Opportunities for Manufacturers in Washington State,” featured the findings from a three-month, six-city tour conducted by the business group, talking with Washington state manufacturers about key issues affecting employment and the general business climate. AWB Institute staff met with 70 small, medium and large manufacturers. “If there’s one thing this tour underscored is the value of this industry to Washington state,” said Amy Johnson, a strategic consultant to AWB and the Institute.

Small business owners will give lawmakers suggestions for improving business climate
Small business owners plan to present lawmakers with a list of practical ways they can improve the state’s small business climate during a press conference tomorrow afternoon. AWB and the National Federation of Independent Business will join the Washington Policy Center in hosting the event, which is scheduled for 2:30 p.m. in the John A. Cherberg Conference Room in the state capitol. Sens. Mike Hewitt, R-Walla Walla, and Janéa Holmquist Newbry, R- Moses Lake, are scheduled to speak along with a group of concerned small business owners. For more information about this event or if you would like to attend, contact AWB’s Brandon Houskeeper.

Check your mailbox for AWB’s We Mean Business campaign
Amidst the snow and ice last week, AWB launched the second phase of its “We Mean Business” campaign, part of the association’s effort to highlight the concerns of private employers in a challenging economy. Last week, two new postcards were distributed to AWB members. Western Washington businesses received a card featuring Lisa Janicki of Janicki Industries in Sedro-Woolley; those in eastern Washington received a card profiling Mark Anderson of Anderson Hay & Grain in Ellensburg. Both cards feature quotes from each AWB member on what it’s like doing business in today’s new economy and what state government could do to close the ongoing budget gap. The campaign will use direct mail, social media and display ads in business journals around the state to help call attention to the concerns of Washington state’s private employers. For more on the campaign, including how to contribute, please visit the AWB website. Our Twitter hashtag for the campaign is #wemeanbusiness.

Cross-border health insurance bills introduced
Legislators in the state Senate and the House of Representatives introduced AWB-request legislation today that would allow the purchase of health care coverage across state lines.Sen. Linda Evans Parlette, R-Wenatchee, and Rep. Joe Schmick, R-Colfax, introduced bills that will allow reciprocal agreements among states so that health care insurance for small employers and individuals can be sold across state lines. The two AWB priority bills (Senate Bill 6440 and House Bill 2687) aim to provide more choice and increase affordability of health care coverage in the state by introducing more competition into the market.For more information, contact AWB’s Donna Steward.

State bank proposal resurfaces
An attempt last year to establish a state bank fizzled, but House Bill 2039 it has resurfaced in the 2012 legislative session – possibly with a warmer, fuzzier name. House Speaker Frank Chopp, D-Seattle, called the idea a top priority for the session, but suggested in a video on his Facebook page that it might need a new name, The News Tribune reported. The reason? People hate banks, Chopp said. And they really hate the state. Hence, the “Washington Investment Trust.”

Capital gains tax idea floated
Democrat Laurie Jinkins of Tacoma has introduced a 5 percent capital gains tax proposal that she says could raise as $650 million depending on the economy. House Bill 2563, which follows on the heels of a 1 percent income tax proposal, is the latest in a string of revenue proposals coming from Democrats in Olympia. Gov. Chris Gregoire continues to push for a temporary half-cent sales tax hike while other lawmakers, led by Sen. Derek Kilmer, D-Gig Harbor, are weighing a $1 billion public works package they say could add 25,000 construction jobs.

Washington state’s connection to the Keystone XL Pipeline
President Obama said no last week to the proposed Keystone XL pipeline, but Congress may have the final say, AWB President Don Brunell writes on Olympia Business Watch. Even though U.S. presidents have historically made executive decisions regarding cross-border pipelines, some analysts have concluded that Congress has the power to weigh in. The debate is an important one for Washington state, which could gain a new crude pipeline and oil export facility just north of our border with Canada.

Gregoire appoints Alaska Air, Boeing execs to UW Board of Regents
Gov. Chris Gregoire has appointed Bill Ayer, chairman and CEO of Alaska Airlines, and Pat Shanahan, vice president and general manager for Airplane Programs at Boeing Commercial Airplanes, to the University of Washington Board of Regents. The governor’s office announced the appointments last week, along with the reappointment of Tacoma business leader Herb Simon.

National Frozen Foods marks its first century
Congratulations to National Frozen Foods, which turned 100 years old this weekend. The company began life in 1912 in Olympia as the National Fruit Canning Company and changed its name in 1987, reflecting the nation’s transition from canned to frozen vegetables, the Columbia Basin Herald reported. It now has plants in Moses Lake, Quincy, Chehalis and Albany, Ore.

AWB Lobby Lunch continues Thursday
Join us again this Thursday for the second AWB Lobby Lunch meeting of the 2012 session. The weekly series offers timely, informative updates from key players in the legislative process. Our guests this week are Sen. Lisa Brown, D-Spokane, and Rep. Larry Springer, D-Kirkland. 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.

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.

PRIORITY LEGISLATION
Legislation introduced to amend I-937 renewable energy law
Following up on comments made during AWB’s Legislative Day, Sen. Kevin Ranker, D-San Juan Island, and Rep. Dave Upthegrove, D-Des Moines, introduced a pair of bills last week that would modify the Energy Independence Act, the renewable energy law approved by voters in 2006 as Initiative 937. Senate Bill 6396 and its companion, House Bill 2654, expand the definition of eligible renewable resources to include some biomass, pulping liquors and hydroelectricity from some facilities. For more information, contact AWB’s Courtney Barnes.

Charter school bills receive hearing
A pair of bills that would allow for the creation of up to 50 charter schools in Washington received their first hearing last week. Senate Bill 6202, prime-sponsored by Sen. Rodney Tom, D-Bellevue, and House Bill 2428, prime-sponsored by Rep. Eric Pettigrew, D-Seattle, would make additional education reforms, including changing the way teachers and principals are evaluated. The charter school element is the most controversial, however, and representatives from the state’s teacher union and other education organizations testified against the legislation. For more information, contact AWB’s Donna Steward.

Comments sought on hazardous waste site cleanup legislation
Sen. Kevin Ranker, D-San Juan Island, has asked AWB to provide feedback on legislation aimed at accelerating the cleanup of hazardous waste sites. Senate Bill 6211 would attempt to ensure that funding generated from the Model Toxics Control Act be used on MTCA-specific projects, among other thing. Members who have specific concerns or issues with SB 6211 may pass them along to AWB’s Brandon Houskeeper. A public hearing on the bill is scheduled for 1:30 p.m. Wednesday in the Senate Environment Committee.

AWB asks Department of Ecology to fully consider impact of fish consumption rules
The Department of Ecology should consider alternatives to rule making - as well as the costs and benefits of implementation of new rules - as it moves forward with development of a new Fish Consumption Rates Technical Support Document. That was one of the requests from Gary Chandler, AWB’s vice president of government affairs, in a Jan. 18 letter to department Director Ted Sturdevant. The department’s review and update of fish consumption rates will carry significant policy and regulatory implications, Chandler said. He called on the department to respond in writing to technical questions, and to take the time necessary to develop regulatory requirements that are “both meaningful and achievable.”

Mandatory ‘safe and sick’ leave bills scheduled for hearing
A pair of bills that would make Washington just the second state in the nation with mandatory paid sick leave could receive hearings this week. Senate Bill 6229, prime-sponsored by Sen. Jeanne Kohl-Welles, D-Seattle, was scheduled for a hearing at 1:30 p.m. tomorrow before the Senate Committee on Labor and Commerce & Consumer Protection. Its companion, House Bill 2508, prime-sponsored by Rep. Mary Lou Dickerson, D-Seattle, was scheduled for a hearing at 1:30 p.m. Wednesday before the House Committee on Labor & Workforce Development. For more information, contact AWB’s Kris Tefft.

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
"It's very important that we balance the budget, as difficult as it may seem to some, within available revenue." ~ Sen. Joseph Zarelli, R-Ridgefield

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