What don't you understand about the unemployment benefits business agreement in SB 5963? By Jan Teague, President/CEO
After nearly two years of arguing over subsidizing seasonal workers in our rates, this year all business groups came to an agreement. It is considered fragile, however. If rates go up because of new benefits being added, then the stable industries again are in the business of significant subsidy for seasonal employers. This is largely due to the fact that their rates are capped so while benefits might go up, they won't be paying them.
Legislators in the Senate seemed to understand and were committed to resisting the temptation to add a Christmas tree of new benefits to SB 5963. Governor Gregoire reached into the tax reserve and gave a one-time increase in benefits worth $200 million dollars and a weekly increase of $45. This had some impact on the rate schedule, but only in terms of hitting a threshold sooner where a surcharge would be needed to keep the fund solvent. The benefit increase was not to impact individual business rates.
But now the House Commerce & Labor Committee may consider amendments to SB 5963 that could increase rates. This seems like a lack of understanding towards the agreement with the business community to pass a conformity bill that would provide relief to all rate classes for the last volley of increased benefits for seasonal workers in 2005.
Now my recollection of the outcome of that 2005 year was that the federal government agreed that seasonal businesses were being subsidized by the rest of the business community. As much as some elected officials wanted to test that decision, it happened and there was no way out but to deal with conformity regarding rates. So what was asked of business was to get together and come up with an agreement on rates. We understood that there would be Legislative support for our agreement and we also understood there would be no interference from labor.
But that understanding could evaporate. Labor officials came to the UI hearing on SB 5963 in the House Commerce & Labor Committee with a list of new things they wanted. Today, in a meeting with Representative Steve Conway who chairs the committee, he indicated amendments could be considered that would increase benefits. Representative Conway laughed a number of times and said for us to keep talking. He smiled and said that dialogue was good and that he expected to have a good floor debate on the bill.
This development is far from the earlier gesture that Governor Gregoire made for business, which was to offer a one-time flat rate reduction. She wanted to call it a stimulus for business.
This latest news moves from a message of business support to a message of union support. I guess what is clear about this latest possibility is that some will consider ignoring agreements unless they are the ones in charge of brokering the agreement, namely the unions, who at the hearing said they were "locked out of the discussions."
Retro bill is unconstitutional, a legal analysis concludes
Attorneys for the law firm Davis Wright Tremaine have determined that a Retro reform bill under consideration by the Legislature is unconstitutional.
In a letter to House Commerce and Labor committee chairman Steve Conway, D-Tacoma, attorneys Bruce E. H. Johnson and Ambika K. Doran urged the committee and Legislature to reject ESSB 6035. To read the entire letter, visit WRA's Website, www.retailassociation.org and click on the Retro headline under the "news" banner.
Sections of the bill violate First Amendment free speech rights and would unlawfully interfere with existing workers compensation contracts between companies and associations that administer the programs.
The Washington Retail Association opposes the bill and has argued it would create an unnecessary and costly bureaucracy to account for how insurance premium refunds are spent. Refunds to companies are generated if they maintain safe workplaces and hold down worker injuries.
WRA further has faulted the bill for being a political attempt to silence the Building Industry Association of Washington, which legally uses some Retro fund to contribute to political campaigns.
"The First Amendment affords corporations the same speech rights as it does individuals," Johnson and Doran wrote in an analysis they provided for WRA, the Association of Washington Business, Associated General Contractors of Washington, the Washington Restaurant Association, the Washington Farm Bureau and the BIAW.
The lawyers further found the bill serves no compelling state interest.
"Distribution of funds to employer members is not a compelling interest, because members voluntarily join the group," the lawyers wrote. "Nor is there a compelling interest in 'restoring public confidence' (the bill's language) where there is no demonstrated lack of confidence."
The bill would require association to obtain prior written authorization to retain refunds.
"Other less restrictive alternatives likely exist, and render the proposed legislation subject to serious constitutional concerns," the lawyers wrote.
The bill also troubled the lawyers because it would interfere with existing contracts between associations and companies. This would violate the Contract Clause of the U.S. and Washington State Constitutions, the lawyers wrote.
"We urge the committee to seriously consider, investigate and if necessary, reject ESSB 6035," the lawyers concluded.
Should the state be in the business of selling drink mixers and wine glasses? WRA says No By Mark Johnson, Vice President Government Affairs
HB 2321 was introduced March 23 as an attempt by the Legislature to raise additional revenues to plug a fast-growing revenue shortfall. This is a companion bill to SB 5877 heard earlier this session and passed over by the body.
The bill would allow Washington State-controlled liquor stores to offer for sale "liquor related items" that incidentally are not defined in the bill. This would include ice, swizzle sticks, wine glasses, mixers, corkscrews, gift baskets, and anything else that could be argued to be "liquor related". The estimate is that this will raise $3.2 million for cash-strapped state and local governments in the next biennium.
So why is this a bad idea?
Because the $3.2 million would come directly from sales lost by private retailers.
Think about the small local wine shop. It already unfairly has to compete with the state-run liquor stores for wine sales. This bill threatens to take still more business away for wine glasses, corkscrews, decanters, bottle stoppers, etc. What about the independent beer store that offers beer steins, coolers, ice, etc. Consider the thousands of small convenience stores that sell pop and mixers, how will this impact them?
Retailers are already struggling through the most difficult financial times since the Great Depression. Consumers are foregoing many non-essential items. Increasing the already unfair advantage the state has over private companies is counterproductive and will further push retailers towards their demise.
The Legislature should reject HB 2321.
Labor's ex parte bill comes with heavy price tag
Employers and workers in Washington would pay dearly if the Legislature passes the labor-backed SHB 1402. It would restrict ex parte contact with a physician once a worker's compensation case appeal had been filed.
The estimated fiscal impact of this bill would be $1,153,000 in the 2009-2011 biennium for the Department of Labor and Industries, and an additional $956,744 in costs per biennium in the Attorney General's Office.
Employers and workers in the state would pay these extra costs through their premiums.
An analysis of the bill by the Washington Self-Insurers Association foresees undesirable outcomes from the bill. It predicts an increase in hiring attorneys and more appeals and depositions that will increase costs and lengthen outcomes of workers compensation cases. It would add nearly $500,000 per year in Attorney General's Office expenses for increased staff time to contact doctors and take depositions, the analysis showed.
It also would require additional L&I training and policies and a computer system upgrade estimated to take two years to complete. The analysis also predicted that the additional costs caused by the bill would be passed from Labor and Industries to employers and employees.
Under the current bill, Labor and Industries is being treated differently than self-insured administrators. This will result in proportionately higher costs for self-insured employers, said Tammie Hetrick, Vice President Retail Services for the Washington Retail Association.
Just as badly, the bill would cause confusion for physicians and result in delays in claims management. Hetrick said physicians would likely become afraid to speak with employers or administrators if they were unclear about breaking the law.
"If physicians become tentative in their communications with patients or employers, we will see delays in early return to work and time loss benefits as physicians will require all communications in writing," said Hetrick.
The Washington Retail Association is working to defeat this bill because it would add costs to state government, which already is strapped with a $9 billion shortfall in revenues, and because it is unnecessary. The bill does not propose to fix any problem that can't be addressed through legal channels already in place, Hetrick said.
The business community is solidly against this bill and has been joined by the Washington Academy of Family Physicians.
"The last thing employers and workers need is an increase in premiums so that trial attorneys can get more clients," Hetrick said.
Legislature nearing three quarter pole
Thursday of this week marks the 74th day of the current 105-day Washington Legislative session.
Legislators have privately been discussing whether to propose tax increases to balance the next budget as the state confronts its growing revenue shortfall, currently at an estimated $9 billion.
Before those details come forward, the Washington Retail Association has been tracking several issues and bills of importance to members.
Issues and bills include:
*Important upcoming dates. Monday, March 30 is the last day to read in committee reports from the opposite house, except House fiscal committees and Senate Ways & Means and Transportation committees. Monday, April 6 is the last day to read in opposite house committee reports from House fiscal committees and Senate Ways & Means and Transportation committees.
*SB 5735: greenhouse gas emissions The bill passed the Senate 29 to 19 and is awaiting possible House action while Governor Christine Gregoire lobbies to impose costly new environmental requirements on businesses. Under business pressure, the bill has been amended from a mandatory to voluntary emissions reduction program and gives the Department of Ecology until the 2011 Legislative session to recommend whether the state should proceed with required emissions reduction standards. More details may come next week.
*HB 1127: securing credit and debit card information Mark Johnson, Vice President Government Affairs, testified on a favorable amendment that would limit personal data on receipts to protect customers from identify theft.
*HB 1180: BPA ban. Johnson testified in hopes of making the bill more specific. It would ban the chemical bisphenol A including from baby bottles and "other containers." The Senate bill, which has been approved, is more specific about the types of containers affected.
*HB 1338: unemployment insurance penalties and fees. WRA supports the bill that would give the Employment Security Department director discretion to forgive companies that are late making insurance payments. Johnson reports the bill has a good chance of passing.
U.S. Chamber points out faults in Obama budget proposal
The U.S. Chamber of Commerce has prepared a report reviewing numerous anti-business faults in President Obama's proposed federal budget for fiscal year 2010.
Some of Obana's Democratic colleagues have joined the chorus of critics who have found fault with the proposal, which would pass on dramatic new taxes on businesses and create a host of expensive new government programs.
Source: National Association of Wholesale Distributors
WRA meets about boosting the economy, real estate market
The Washington Retail Association joined with real estate officials and Gov. Gregoire's office this week in a meeting aimed at strengthening the state economy by jump starting the flagging real estate market.
Mark Johnson, Vice President Government Affairs, attended the meeting with Marty Brown, Gregoire's Director of Legislative Affairs.
Proposals backed by Washington Realtors would improve the ability of first-time buyers to qualify for a mortgage. Economists generally agreed that an economic recovery from the recession will not be possible without a revived real estate market.
The legislative package Realtors favor would include a $24 million state loan that could be used for down payments by first-time buyers. Realtors also favor passage of Senate bill 5452, which would increase the authority of the Housing Finance Commission to issue bonded indebtedness from its current $5 billion to $7 billion. Federal law allows state housing finance agencies to issue tax-exempt revenue bonds to fund low-cost housing assistance.
An analysis by the Washington Research Council concludes that helping first-time buyers qualify for mortgages would help to spark a statewide economic recovery.
"It's the first-time purchaser who sets off a chain reaction," a Research Council report concludes. "The person selling the home then makes a purchase, and on and on."
One study has concluded that the sale of 9,000 homes to first-time buyers would generate $140 million in additional state and local government revenues in the form of sales, business and occupation and property taxes.
SB 5452 passed the Senate early in March in a 37 to 10 vote.
Anti tax rally planned for Capitol on April 15
A rally on the Capitol steps to oppose tax increases to balance the state budget has been organized at noon, on April 15.
The event is being organized by the Evergreen Freedom Foundation in Olympia.
The foundation maintains the budget can be balanced through reduced spending as opposed to asking voters to approve tax increases. It further points out a 50 percent growth in state spending the past six years as the prime contributor to the current estimated $9 billion shortfall in budget revenues for the coming biennium.
Majority Democrats in the Legislature have hinted at the possibility of a public vote on taxes later this year, but have been unwilling to discuss specific ideas so far.
WRA board member Hildreth appointed to Tumwater council
Washington Retail Association board member Ed Hildreth has been appointed to a seat on the Tumwater City Council.
He will serve this year's unexpired term of Karen Valenzuela, who has been appointed to the Thurston County commission. Hildreth has announced he plans to run for election to his seat on the Tumwater council.
Hildreth has served on the WRA board since October of 2003. He will remain on the board until his current term expires in July.
Hildreth is the former owner of Sound Janitorial Supply, which he closed in February. He was appointed to the city's planning commission in 1993 and served for a time as its chairman. He also has served on several city committees, is a board member of the Washington State Employees Credit Union and the Thurston County Fair Board, and is former lieutenant governor for the Pacific Northwest Kiwanis.
Sources include The Olympian
New scam can lead to bogus phone bill
State businesses have become targets of a phone scam that attempts to collect revenues for international telephone calls.
The automated calls state that the Department of Revenue has been trying to reach the business about a tax account. It then relays a toll-free number through which callers are asked to make an international call, including a $5.49 charge plus undisclosed administrative fees.
"This is just a scam to mislead callers into paying a phone charge," said Revenue Director Cindi Holmstrom. "Don't fall for it."
The Revenue Department operates a legitimate, toll-free telephone assistance number at 800-647-7706. Holmstrom said it is difficult to prosecute telephone scammers because they usually are based overseas.
When she issued her announcement last week, Holmstrom said she was unaware that anyone had paid for the international phone call. Businesses calling a Department of Revenue phone number would not be redirected to a second number that charges a fee, Holmstrom said.
"Most people do the smart thing and hang up, and you should, too," Holmstrom said.
Source: Department of Revenue
Gregoire certifies 138 projects for stimulus funds
Gov. Christine Gregoire has certified 138 transportation projects that will be eligible from $551 million in federal economic stimulus funds.
Overall, the state expects to receive $4.5 billion in federal stimulus funds to modernize the state's infrastructure, including highways and water systems, according to an announcement by Gregoire.
Tuesday is disaster assistance application deadline
Residents who suffered damage from January's severe winter storms have until Tuesday, March 31 to apply for federal and state disaster assistance.
To register with the Federal Emergency Management Agency (FEMA), call 1-800-621-3363 (FEMA). Phone lines are open seven days a week from 8 a.m. to 8 p.m.
Once registered, applicants can track the status of their cases by calling the FEMA helpline or visiting the Website.
Residents in the following counties are eligible to apply for financial assistance: Benton, Cowlitz, Clallam, Grays Harbor, King, Kittitas, Lewis, Mason, Pacific, Pierce, Skagit, Snohomish, Thurston, Wahkiakum and Whatcom.
Source: FEMA
The Washington Retail Association, WRA, is a 501 C 6 trade association formed to advocate for Washington State’s retailers at the local, state and national level. Since 1987, the WRA has protected Washington's retailers from unreasonable taxes, fees, regulations and legislation. The efforts of the WRA benefit all Washington state retailers and help fuel statewide economic growth.
