TOP STORIES
House Republicans release stand-alone education budget
Legislators in the House Republican Caucus are trying to prioritize education spending as the state’s number one priority.Last week they introduced legislation requiring the legislature to establish a standalone education budget (HB 2533), as well as the first proposed education budget (HB 2770). The budget would preserve the 180-day school year, retain levy equalization and spend $580 million more on K-12 education than Gov. Chris Gregoire’s budget proposal, but it’s not expected to receive a hearing. House Bill 2533, known as the Fund Education First bill, did receive a hearing, but it doesn’t appear to be going anywhere. Rep. Ross Hunter, D-Medina, chairman of the House Ways & Means Committee, and Senate Majority Leader Lisa Brown, D-Spokane, both criticized the plan, and Rep. Kathy Haigh, D-Shelton, a co-sponsor of HB 2533 and Chair of the House Education Appropriations, said she would kill it.

Legislature approves redistricting plan
The plan to revamp the state’s congressional and legislative boundaries has been approved by the Washington state Senate. On Feb. 1, lawmakers voted 44-4 on Engrossed House Concurrent Resolution 4409 to finalize the new maps, which include Washington’s new 10th Congressional District, encompassing most of Thurston County and many of the major population centers in Pierce County. From Olympia, the new district’s approximate center, the boundaries extend northeast into Fife, Sumner, Edgewood and Puyallup — and then west to Shelton. The appearance of more than a million new Washington residents in the 2010 census data gave the state an additional congressional seat, thus necessitating the re-districting process.

State’s credit rating takes a hit
Citing the state’s ongoing structural budget problems, both Moody’s Investors Service and Fitch Ratings downgraded Washington’s debt ratings from stable to negative. Moody’s specifically singled out Washington’s revenue shortfall as part of its rational for the downgrade, as well as the state’s ongoing reliance on sales tax. Fitch similarly cited “challenges faced by the state in addressing a sizeable budget gap that developed after the adoption of the current biennial budget.” The statement continued, noting “the state is operating in an environment of significantly constrained revenue raising and spending control flexibility.”

Cities fighting hard to stop B&O tax simplification
It’s no longer just the five biggest cities with a business and occupation tax opposing Gov. Chris Gregoire’s proposed tax simplification measure, which has strong support from AWB. The Association of Washington Cities has joined Seattle, Tacoma, Everett, Bellingham and Bellevue in opposing the plan. Help keep the issue alive this session by contacting your lawmaker and voicing support for HB 2490/SB 6176. Consolidating the collection of B&O taxes at the state level just makes sense. It will reduce bureaucracy and save time and money for small businesses. It works well for the sales tax, and it will work for B&O taxes, as well. For more information about the issue and how you can get involved, contact AWB’s Amber Carter.

Labor unions pushing package of bills to undermine last year’s workers’ comp gains
Employers won a major victory last year with the passage of workers’ compensation reform, but labor unions and trial lawyers are trying to undermine some of the gains this year with a package of seemingly small changes that are advancing in the Legislature. At least eight of these workers’ comp-related bills emerged from their respective committees last week, including HB 2359, HB 2431, SB 6302, SB 6415, SB 6505, HB 2622, HB 2407 and SHB 2701. Employers must act now to ensure these bills, which range from unnecessary and irritating to undermining recent reform efforts, fail to advance. For more information, contact AWB’s Kris Tefft.

Is it time to work on the budget yet?
The frustration that Republicans are feeling over the lack of progress on the state budget was on display at last week’s AWB Lobby Lunch meeting when Sen. Mike Hewitt, R-Walla Walla, welcomed everyone “to the first day of session.” Other issues, he said, have taken time away from the main issue that lawmakers should be tackling during a short, 60-day session. Reps. Richard DeBolt, R-Chehalis, and Joel Kretz, R-Wauconda, also spoke. Full video of the meeting is available online.

KEY HEARINGS, MEETINGS
AWB Workers’ Comp Coalition to meet Tuesday
AWB’s Workers’ Compensation Coalition will meet tomorrow from noon to 1:30 p.m. at AWB for a brown bag discussion of the series of bills that emerged from committee last week. For more information, contact AWB’s Kris Tefft.

PRIORITY LEGISLATION
AWB members testify in support of cross-state health insurance plan
A half dozen AWB members joined other employers last week by testifying in favor of Senate Bill 6440, a measure that would allow for the purchase of health insurance across state lines. The cost of health care to small employers is simply not sustainable, they said. Currently, there are only three carriers in the state and small businesses are often forced to choose between laying off workers or not providing health care. Passage of this measure would give employers more choice and increase affordability. For more information about the bill or how you can help support it, contact AWB’s Donna Steward.

Costly, over-reaching health exchange bills advance
Legislation further defining Washington’s first health exchange advanced last week.Unfortunately, despite concerns voiced by AWB, the bill includes the creation of yet another government program, separate from the exchange, to serve most of the very same individuals the exchange is meant to serve.The idea of a health exchange is not inherently bad, but SHB 2319 and SSB 6138 – which both passed out of committee – go far beyond federal requirements and include provisions that create a new federally defined Basic Health option, without any means to pay for either the exchange or the new public program, both of which will require significant new state budget appropriations. AWB encourages all members to contact their lawmakers and encourage them to oppose these bills. For more information about the legislation or how you can help, contact AWB’s Donna Steward.

Charter schools, other education reform bills fall by the wayside
A number of promising education reform bills died in committee last week, including charter school legislation that AWB supported. SB 6202/HB 2428 both received hearings last month, but failed to move out of committee before Friday’s cutoff. Other bills related to teacher performance and assessment met a similar fate, including HB 2427/SB 6203, HB 2334/SB 6317 and HB 2309/SB6278. It was a disappointing outcome for an issue that just a couple of weeks ago appeared poised to make significant progress. “Many thought the moment for true progress had come in the Senate,” The Seattle Times wrote in a weekend editorial blasting lawmakers for letting the bills stall. Sen. Rodney Tom, D-Bellevue, the prime sponsor of the Senate charter school bill, has indicated he isn’t done working on the issue, however, and will look for other ways to advance portions of it. For more information, contact AWB’s Donna Steward.

Mandatory paid sick leave, workplace bullying bills fail to advance
Legislation that would have made Washington the second state in the country to require employers to provide workers with paid sick and safe leave is apparently dead after failing to advance out of committee. Senate Bill 6229, prime-sponsored by Sen. Jeanne Kohl-Welles, D-Seattle, would have been a huge administrative burden to employers at best, and a costly new mandate at worst. Fortunately, it missed last week’s cutoff for non-fiscal bills to pass out of their committee of origin, as did HB 1928/SB 5789, another unnecessary workplace proposal related to workplace bullying.

Major I-937 plan fails to advance, but some pieces could still emerge
Don’t look for any significant changes to the I-937 renewable energy law to come out of the Legislature this year. House Bill 2654/Senate Bill 6396, legislation that proponents described last month at AWB’s Legislative Day, both failed to advance out of their committees of origin last week. That’s bad news for the state’s competitiveness, which will take a hit in the coming years as electricity prices rise as a result of the law. Sen. Kevin Ranker, D-San Juan Island, prime sponsor of the Senate bill, said he still hopes to move forward with some elements. One example of a smaller reform is Senate Bill 5575, which would include biomass fuels in the list of eligible renewable resources. The bill, prime-sponsored by Sen. Brian Hatfield, D-Raymond, was passed to the rules committee last week. For more information, contact AWB’s Courtney Barnes.

‘Precautionary principle’ a bad idea for SEPA
AWB testified last week against Senate Bill 6369, a piece of legislation that seeks to establish a so-called “precautionary principle” regarding the State Environmental Policy Act. The bill, prime-sponsored by Sen. Maralyn Chase, D-Shoreline, would require the state to move forward with measures aimed at protecting people or the environment, even in cases where science has failed to prove with certainty what poses the threat. Passage of the measure would add unnecessary costs to employers and add regulatory uncertainty, AWB’s Brandon Houskeeper told members of the Senate Environment Committee.

Children’s products legislation on the verge of stalling
One of the bills aimed at requiring manufacturers of children’s products containing certain chemicals to complete so-called alternatives assessments failed to advance out of committee last week, and another one appears stuck, as well. House Bill 2266, prime-sponsored by Rep. Mary Lou Dickerson, D-Seattle, failed to move out of its committee of origin and Senate Bill 6120, prime-sponsored by Sen. Sharon Nelson, D-Seattle, has not advanced out of the Senate Ways & Means Committee. AWB supports safe products for children, but believes this legislation would create an unnecessary layer of bureaucracy and take funds from an account intended to pay for industrial clean-up in order to fund it. For more information, contact AWB’s Courtney Barnes.

Pesticide drift bill is unworkable, but moving
A bill that purportedly aims to protect farm workers and other from drifting pesticide by imposing new restrictions on crop dusting advanced out of committee last week, despite warnings from AWB and others that it is unworkable as written. As it is written, House Bill 2413, prime-sponsored by Rep. Chris Reykdal, D-Tumwater, would not protect public health, but it would harm efforts to control the spread of pests and disease, causing huge problems for the agriculture industry. For more information, contact AWB’s Kris Tefft.

Industrial stormwater bill would remove numeric standard
House Bill 2651, prime-sponsored by Rep. Larry Springer, D-Kirkland, advanced out of committee last week, giving hope to industrial stormwater permit holders that relief is on the way. The bill is AWB-request legislation aimed at helping employers who are struggling to comply with 2009 legislation requiring stormwater general permits to have a numeric limit for fecal chloroform contamination. In some cases, permit holders are struggling to meet the standard because of background pollutants, such as birds, rodents or other animals. The bill would allow the Department of Ecology to substitute a narrative standard, rather than a numeric standard, in the earlier law. The switch will protect public health and help industry comply with regulations. For more information, contact AWB’s Courtney Barnes.

Transportation bill includes local option gas tax
AWB testified last week against a proposal that would allow local governments to enact their own gas tax, warning that cash-strapped cities and counties could easily divert the money from transportation projects to general government budgets. Senate Bill 6582, prime-sponsored by Sen. Mary Margaret Haugen, D-Camano Island, would also give local governments the ability to impose their own motor vehicle excise tax, up to 1 percent of the value of a vehicle, with voter approval. AWB doesn’t necessarily oppose this element of the proposal, but voters have a long history of rejected MVET taxes. For more information, contact AWB’s Amber Carter.

Vehicle fees, property, utility taxes all part of benefit district proposal
A bill aimed at giving local governments a host of new ways to raise fees and taxes received a hearing last week in the House Ways & Means Committee. AWB testified against House Bill 2728, sponsored by Rep. Sam Hunt, D-Olympia, a measure that would increase the portion of the $100 vehicle fee that a transportation benefit district may raise without voter approval from $20 to $40. The bill would also allow for higher sales and use taxes, property taxes and utility taxes. For more information, contact AWB’s Amber Carter.

OTHER NEWS
Disaster relief offered for non-farm small business
Small, nonfarm businesses in 35 Washington counties are now eligible to apply for low-interest disaster loans from the U. S. Small Business Administration (SBA). These loans offset economic losses because of reduced revenues caused by the combined effects of excessive rain, flooding, below normal temperatures, high winds, frosts and freezes occurring January 1 through July 31, 2011, according to the SBA’s disaster field operations center – west. The counties included in this program are Clallam, Clark, Franklin, Island, Jefferson, King, Kitsap, Klickitat, San Juan, Skagit, Snohomish, Stevens, Wahkiakum, Whatcom and Yakima. Small, nonfarm businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private, nonprofit organizations of any size may qualify for Economic Injury Disaster Loans (EIDLs) of up to $2 million to help meet financial obligations and operating expenses which could have been met had the disaster not occurred. For more information visit the Small Business Administration website or call 800.659.2955.

Thursday’s Lobby Lunch focuses on transportation
Transportation and perhaps more importantly, transportation funding, will be the focus of this week’s upcoming Lobby Lunch. Joining AWB this Thursday will be Sens. Mary Margaret Haugen, D-Camano Island, and Curtis Kind, R-Yakima, along with Rep. Judy Clibborn, D-Mercer Island, and Mike Armstrong, R-Wenatchee. Can’t make it to lunch? Check out Olympia Business Watch that afternoon for more on their visit.

Legislative bill tracking available to members
Sign up to receive in-depth reports about bills moving through various legislative committees this session. Our weekly reports, crafted by AWB’s government affairs directors, give the latest news about bills affecting everything from education and health care to the environment, workplace safety, the environment, tax and fiscal and more. Contact Connie Grande at 800.521.9325 to be added to the weekly distribution of these reports, which are based on issue areas.

Friday Phone Briefings: 30 minutes and you’re up to speed!
Need a quick recap of what’s happening in Olympia? Join AWB each Friday at 7:30 a.m. during session for the Friday Phone Briefing. Find out what’s happening in the Legislature and how it will affect employers. Listeners will also have a chance to ask questions about legislation or other policy issues. If you haven’t yet done so, register online for this Friday’s call; a confirmation email will be sent to you and a reminder e-mail will alert you the day before and one hour before each Friday’s call. Questions? Contact Jocelyn McCabe, AWB vice president, communications, at 360.943.1600.

Nominations open for 2012 Environmental Excellence Awards
AWB is currently seeking nominations for its Environmental Excellence Awards, marking the 20^th anniversary of the program. The program, sponsored by Tupper Mack Wells PLLC, is a showcase for companies successfully implementing programs that demonstrate initiative in the area of environmental protection. Award categories include: Sustainable Communities & Green Building, Green Enterprise & Technology, Resource Conservation and/or Pollution Prevention, Leading Environmental Practices and Environmental Innovator. The awards focus on actions that create a better environment, products that help environmental quality, actions to prevent or reduce environmental problems as well as conserve resources and processes; including education and business operations that improve the environment. Awards will be presented June 12 in Spokane at the Davenport Hotel and Tower, in conjunction with the AWB Spring Meeting. Download a nomination form today; entries must be submitted by Feb. 22. For additional information contact Karlee Glasgow at karleeg@awb.org at 800.521.9325.

Put the spotlight on your company’s achievements with AWB’s Community Service Awards
Nominations are underway for AWB’s Community Service Awards, which honor members for their volunteerism and the contributions that make our communities better places to live and work. Tell us about projects that support education, youth organizations, community beautification, 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 and Tower in Spokane in conjunction with AWB’s spring meeting. Don’t miss this opportunity to be recognized for your contributions to your community. Deadline is February 22. Apply now. For more information, contact AWB’s Karlee Glasgow

Draft 2012 LID technical guidance manual available for review
Don’t forget: The 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.

AWB EVENTS & RESOURCES
Seattle's Paid Sick/Safe Leave Seminar, March 6 in Seattle
The City of Seattle’s new ordinance requiring employers to provide paid sick/safe time to employees takes effect Sept. 1. The law imposes new obligations on employers related to paid sick/safe time accrual, usage, carry-over, and notice requirements.Join us March 6 from 9:30-11:30 a.m. at The Columbia Center in Seattle to learn about the new law and how it will affect your existing policies and practices. Selena Smith, an attorney at Davis Grimm Payne & Marrra, will present hypothetical scenarios to illustrate how the law is applied and provide guidance for compliance.Register online or contact Karlee Glasgow at 800.521.9325.

2012 Wage & Hour Boot Camp, March 20 in Seattle
Join us for a half-day seminar, A Guide to Combating Wage & Hour Liability, and learn why employers should care about wage and hour compliance. The panel of seasoned attorneys from Littler will address significant wage and hour risks faced by employers today, including minimum wage and overtime basics, meal and rest periods, off-the-clock work, continuous workday issues, and employee misclassification. It takes place March 20 from 8 a.m. to noon at the Seattle Airport Marriott. Cost is $95 for AWB members, $145 for non-members. Register online or contact Karlee Glasgow at 800.521.9325.

Get Ready for the Elections with the AWB Spring Meeting, June 12-13 in Spokane
Employers can get a leg up on the 2012 elections this spring by attending AWB’s Spring Meeting, featuring two key debates between the candidates for attorney general and governor. The debates will be held at the historic Bing Crosby Theater and we are fortunate to again host our meeting at the beautiful Davenport Hotel and Tower. If you are interested in becoming a Spring Meeting sponsor, contact AWB’s Anne Haller at 800.521.9325.

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
“In light of the (Supreme Court) decision, education’s not what you want to put on the ballot.” ~ Senate Majority Leader Lisa Brown, D-Spokane, regarding a possible vote this spring on a proposed sales tax increase to restore state budget cuts

This Week's President's Perspective: When it Comes to Taxes, Keep it Simple