TOP STORIES
With session more than one-third done, cutoffs loom
The first of several cutoff dates is coming up at the end of this week in Olympia: Friday is the final day for policy bills to pass out of their committee of origin in the Legislature. The next cutoff will come Feb. 7 when fiscal bills must pass out of committee, and Valentine’s Day, Feb. 14 is the cutoff for bills to pass their house of origin.

State of the Union speech overlooks job creation
The leaders of the nation’s largest business groups gave poor reviews of last week’s State of the Union address from President Obama. Tom Donohue, president of the U.S. Chamber of Commerce, called it a “political speech” that was full of talk about taxes, regulation and stimulus, but lacking in specifics about how the country will create jobs. Jay Timmons, president of the National Association of Manufacturers, said the president deserved credit for highlighting manufacturing on a national stage, but said he missed an opportunity to go beyond rhetoric and offer a bold manufacturing agenda.

Employers testify against paid sick leave mandate
Representatives from businesses large and small spoke out last week against a proposal that would make Washington just the second state in the country to require employers to provide workers with paid sick leave. For small employers with narrow profit margins, Senate Bill 6229, prime-sponsored by Sen. Jeanne Kohl-Welles, D-Seattle, would add significantly to the cost of doing business, forcing some to eliminate other benefits. For large businesses, it would be a huge administrative burden and could conflict with labor union contracts. For more information, contact AWB’s Kris Tefft.

Lobby Lunch: Springer, Frockt report progress on budget
Sen. David Frockt, D-Seattle, and Rep. Larry Springer, D-Kirkland, told AWB’s Lobby Lunch audience last week that lawmakers are making progress on the state budget, despite charges from critics that they have been distracted by other issues such as abortion and same-sex marriage. Most of the work is occurring behind closed doors, however. Check out Olympia Business Watch for more on their visit, including comments on school funding and changing the renewable energy law. And join us again this Thursday at noon for another Lobby Lunch. This week’s invited guests are Sen. Mike Hewitt, R-Walla Walla, and Reps. Richard DeBolt, R-Chehalis, and Joel Kretz, R-Wauconda.

B&O Tax Simplification Webinar Wednesday
Lawmakers in Olympia are considering legislation that would simplify the filing of local and state B&O taxes. Senate Bill 6176 and its companion, House Bill 2490, would make the state Department of Revenue the sole collector of business and occupation taxes, similar to the way sales tax is handled. The change is designed to result in a considerable savings in time, money and frustration for employers, especially small businesses. Join AWB’s tax and fiscal policy director, Amber Carter, at 7:30 a.m. Wednesday, for this one-hour overview of the proposed legislation and what it might mean for your business. To register, contact Karlee Glasgow at 360.943.1600.

Washington rates poorly in U.S. Chamber report comparing state employment policies
Despite passing badly needed reforms to the state workers’ compensation system last year, the Legislature still has a long way to go when in it comes to repairing Washington’s labor and employment-law climate. That’s the conclusion from a recent report by the U.S. Chamber of Commerce ranking the impact of state employment policies on job growth. Washington was rated “poor” in the report, in part because of numerous labor and employer mandates that exceed federal standards, a high wage ceiling for income subject to unemployment insurance tax, a minimum wage in excess of the federal minimum wage and no right-to-work protections.

State Health Exchange moving in the wrong direction
The Legislature is once again over-reaching in its development of the federally required state-based exchange. Both the House (HB 2319) and Senate (SB 6138) versions of the exchange expand the program far beyond federal requirements and insert provisions that infringe upon health care coverage provided in the private market.In addition, both houses intend to create additional, exceedingly expensive programs aimed at the same target audience Congressional leaders intend the exchange to serve. AWB encourages all members to contact their state legislators and encourage them to oppose these bills. For more information, please contact AWB’s Donna Steward.

Tax preference bill calls for five-year sunset
A bill aimed at strengthening the review process for the state’s tax preferences received a hearing last week before the Senate Committee on Ways & Means. Senate Bill 6088, prime-sponsored by Sen. Craig Pridemore, D-Vancouver, would require bills proposing new or expanded tax preferences to include language regarding their intent, making it easier for the Joint Legislative Audit and Review Committee to determine whether the tax preference is effective or not. AWB supports that part of the proposal, but doesn’t believe the bill’s call for a five-year sunset of new tax exemptions provides enough time for businesses to recoup investments. For more information, contact AWB’s Amber Carter.

Loss of M&E exemption would cost Washington thousands of jobs, billions in output
How much does Washington gain from its retail sales and use tax exemptions for machinery and equipment? A new policy brief from the Washington Research Council places the value at more than 7,400 jobs. That’s how many jobs the state would lose immediately without the M&E exemption, the report concludes. After five years, the figure would total 22,300 jobs, $365 million worth of annual investments in equipment and software, $2.3 billion in manufacturing output and $1.6 billion in personal income. The brief follows the release of AWB’s manufacturing report, which identifies key areas of concern among the state’s manufacturing businesses.

KEY HEARINGS, MEETINGS
AWB Health Care Committee meeting Wednesday
AWB’s Health Care Committee will meet at 10 a.m. Wednesday at AWB for a work session regarding the state health exchange. For more information, contact AWB’s Donna Steward.

PRIORITY LEGISLATION
AWB firmly opposed to state bank proposal
Legislation to establish a state bank runs contrary to AWB’s No. 1 policy principle and the state constitution, Amber Carter, AWB’s government affairs director for tax and fiscal policy, wrote last week in an email to members of the Senate Financial Institutions and Housing and Insurance Committee. The bills, Senate Bill 6310, prime-sponsored by Sen. Karen Keiser, D-Kent, and House Bill 2434, prime-sponsored by Rep. Bob Hasegawa, D-Seattle, run counter to the principle, which states: “Public policy should promote a healthy, free-market and globally competitive business climate that allows the private sector to prosper and expand without interference from non-private sector entities that directly compete with private enterprise.” For more information, contact AWB’s Amber Carter.

Cross-border health insurance bill to receive hearing
AWB-request legislation that would allow for the purchase of health insurance across state lines will receive a hearing at 1:30 p.m. Thursday in the Senate Health Care Committee. Senate Bill 6440, prime-sponsored by Sen. Linda Evans Parlette, R-Wenatchee, and its companion, House bill 2687, prime-sponsored by Rep. Joe Schmick, R-Colfax, will provide additional choice for consumers and increase affordability of health coverage. AWB small employer members are encouraged to attend and testify at the hearing. Please contact AWB’s Donna Steward for more information on the hearing and the opportunity to provide testimony on this important piece of legislation.

Legislature hears charter school bills
A pair of bills that would allow for charter schools in Washington, Senate Bill 6202, prime-sponsored by Sen. Rodney Tom, D-Bellevue, and House Bill 2428, prime sponsored by Rep. Eric Pettigrew, D-Seattle, each received hearings in their respective legislative committees. The bills represent a reasoned approach to allowing this very important option for communities across the state. Also included in each bill is a requirement for private contractors to assume control of persistently failing schools in to improve educational outcomes, another positive step for students in our state. For further consideration, at least one of the bills must pass from committee by Feb. 3. For more information, contact AWB’s Donna Steward.

Biomass energy bill passes out of Senate committee
Members of the Senate Committee on Agriculture and Water & Rural Economic Development voted week last to pass out a bill that would expand the list of eligible renewable resources under Initiative 937 to include biomass fuels. Senate Bill 5575, prime-sponsored by Sen. Brian Hatfield, D-Raymond, represents a small but positive step in the effort to amend the voter-approved renewable energy law. For more information, contact AWB’s Courtney Barnes.

Hazardous waste site cleanup bill moves forward
AWB testified last week in favor of a proposed substitute bill that would spur the cleanup and reuse of industrial land that has been contaminated with hazardous waste. Senate Bill 6211, sponsored by Sen. Kevin Ranker, D-San Juan Island, would use money from the state Toxics Control Account to establish a trust fund for state funding of cleanup activity within designated areas. It’s is a good proposal, not only because it accelerates the cleanup of communities and encourages economic development, but also because it ensures that money collected from the Model Toxics Control Act is used for its intended purpose. For more information, contact AWB’s Brandon Houskeeper.

Hearing scheduled for bill requiring laws, even when science is lacking
A hearing is scheduled Wednesday on a bill that 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. Senate Bill 6369, prime-sponsored by Sen. Maralyn Chase, D-Shoreline, seeks to establish a so-called “precautionary principle” with respect to environmental threats. A hearing is scheduled for 1:30 p.m. Wednesday in the Senate Committee on Environment. For more information, contact AWB’s Brandon Houskeeper.

Bill seeks to make employment status a protected status
AWB testified last week against a bill that seeks to ban employment discrimination based on someone’s employment status. Senate Bill 6228, prime sponsored by Sen. Karen Keiser, D-Kent, would give employment status the same legal protection as race, gender, disability or national origin. The legislation is a response to the continued high unemployment rate; supporters claim that some people have been passed over for jobs because they are unemployed. But it would create one more avenue for disgruntled ex-employees to file legal complaints against small businesses, adding to the state’s already high cost of doing business. For more information, contact AWB’s Kris Tefft.

Fiscal note shows children’s products bill would cost more than half a million
A bill that would require manufacturers of children’s products containing certain chemicals to complete so-called alternatives assessments wouldn’t just be costly to employers. A recently released fiscal note shows that Senate Bill 6120 would cost the state $501,564 per biennium by the time it’s fully implemented. The note proposes taking the money from the State Toxics Control Account, a fund that’s intended to be used for environmental cleanup projects. Although well-intentioned, AWB believes this specific piece of legislation is an ill-timed, costly and unnecessary layer of bureaucracy that proposes to take money from a fund that should be used for its intended purpose. For more information, contact AWB’s Courtney Barnes.

OTHER NEWS
Judy Coovert recognized as business advocate
Congratulations to Judy Coovert, the recipient of the Business Advocate award from the Southwest King County Chamber of Commerce. Coovert, who had an AWB award named after for her volunteer work, received the recognition for demonstrating outstanding commitment to advocacy on behalf of business rights, according to the Tukwila Reporter.

Tax Foundation business ranking good news – as far as it goes
A new report by the Tax Foundation ranks Washington the seventh best business tax climate in the country, up one spot from last year’s eighth-place ranking. The report is mostly good news, but it’s worth noting that Washington’s lack of a state income tax skews the results. Richard Davis, president of the Washington Research Council, offers a good explanation of what it all means. “There’s room for improvement,” Davis writes. “And there are some things we’re getting right.”

AWB releases new Washington Business Week video
AWB has just released a new video to help launch the 37th summer program of Washington Business Week, a remarkable series of one-week camps that teach young people about the world of business and free enterprise. The program started at AWB in 1976 and has expanded several times over the years. It now includes camps at Western, Central, Gonzaga and Pacific Lutheran universities; Alaska Business Week, a joint venture with the Alaska State Chamber of Commerce; and Poland Business Week.

Sign up for weekly legislative tracking updates
AWB members can sign up to receive in-depth reports about bills moving through various legislative committees this session. These 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.

Get a jump on session with AWB’s Friday Phone Briefings
Join us again this Friday at 7:30 a.m. for the 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. 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 email 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.

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 with 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.

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
“Manufacturing in the U.S. is the engine that has largely pulled not only the U.S. economy out of the ditch, but the world economy as well.” ~ Michael Newkirk, director of Global Manufacturing & Supply Chain Product Marketing for SAS, in a Jan. 26 op-ed for IndustryWeek

This Week's President's Perspective: What a relief: power’s back on