Chamber Position Papers
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SUMMARY OF 2011 LEGISLATIVE ISSUE PAPERS
Energy Production in Washington State
Washington’s economy has been built on abundant, reliable and low cost electric energy. Although Washington relies primarily on inexpensive, zero greenhouse gas emitting hydropower, it also has an abundant source of biomass that is a significant potential source of renewable energy.
Renewable and alternative energy resources, including but not limited to water, wind, nuclear, solar, thermal and geothermal, and biomass all play a very important role in diversifying our state’s electric energy portfolio, provided such resources are obtained and integrated at a reasonable cost. Unfortunately, recently adopted energy policies have not only failed to address rising energy costs, but have contributed to the problem. These increased costs are being passed on to the end users – Washington’s families and businesses. In addition, Washington’s I-937 energy mandates are more restrictive than the laws of neighboring states and places Washington at a competitive disadvantage.
The Legislature must level the playing field and allow Washington State to compete fairly at both the regional and national level by minimizing energy costs on Washington’s families and businesses, and maximizing the opportunity to utilize Washington’s abundant, renewable natural resources.
Preserving Dams on the Columbia and Lower Snake Rivers
The Tri-City Regional Chamber of Commerce recognizes the importance of efforts to encourage the recovery of Salmon and other native species to the Columbia and Lower Snake River. We also recognize the Columbia and Snake River systems are vital contributors to the economies and quality of life for the entire Columbia Basin Region.
Many environmental groups favor dam removal as the solution to Salmon recovery. Dam removal would have devastating and far reaching impacts on the economy and communities of the Mid-Columbia Region and should be off the table. The dams on the Snake and Columbia Rivers supply irreplaceable pollution free low cost electricity and cheap barge transportation that eliminates hundreds of thousands of truck miles (the smallest barge replaces 125 trucks). The dams also provide vital flood control and irrigation for farming.
Over the last few years, and especially 2010, record number of Salmon are returning to the Columbia River system, far surpassing pre-run estimates.
Agriculture Industry
The Tri-Cities Region has a robust Agriculture Industry which leads the nation in the development of innovative new technologies that yield extraordinary varieties of fruit and produce. The majority of our product is shipped into other markets around the world. In fact, less than 2% of our commercial agriculture products are consumed within the state of Washington. Economists agree that a strong and vital agricultural industry will help our trade-dependent state recover from the recession faster than other states in the country. Washington's farm exports have been the mainstay of our economy.
In order to remain globally competitive, our farmers’ costs must remain low and predictable. Several issues threaten our agricultural industry including high labor costs, infrastructure maintenance (roads, railways and marine), and export tariffs. Overly burdensome state regulations are increasing labor costs. Transportation infrastructure (Roads, rail and inland marine) must be well maintained to ensure speedy distribution of goods. Tariffs imposed by other countries on our produce and processed goods have led to major economic losses to area potato and tree fruit farmers and processors.
Wage and Hour Reform
Increasing labor costs and diminishing employer rights hurt our regional business economy. Recently, one of the largest private sector employers in the state of Washington threatened to move operations to another state due to wage and hour laws. Boeing pointed out repeatedly to our legislators that, “Cost matters, and location is our choice.”
Washington employers are bound by the wage, hour, and employment standards requirements of a myriad of state and federal laws, which are often at odds. In 1998, voters overwhelmingly approved an initiative that automatically ties increases in the minimum wage to changes in the federal Consumer Price Index for Urban Wage Earners (CPI-W). As a result, Washington state’s minimum wage automatically increases when the price of goods in larger urban areas increases. The CPI-W index ignores differences in our regional economy’s cost of living compared to larger markets and artificially raises employer’s costs.
Promote consistency between state and federal wage and hour law when there is no clearly articulated, policy-based reason for more restrictive state standards. Limit the liability of Washington employers who rely, in good faith, on federal standards in the absence of comparable state provisions. Reject any attempt to pass any “gag-rule or card check” legislation.
Workers’ Compensation Reform
Washington State’s workers’ compensation system is one of the most high cost and arduous systems within the United States. It is filled with administrative complexity and over the years, has caused the average time loss to increase over 38%. Our State’s auditor has determined that, despite premium increases in the recent past, the state run Department of Labor and Industries (L&I) is at-risk of becoming insolvent.
1. Allow employers, employees and L&I to use final settlement agreements to settle claims.
2. Allow for greater employer assistance in controlling health care costs through provider networks.
3. Redefine Washington’s broad definition of “occupational disease.”
4. Use 100% of state average monthly wage as basis for maximum benefits (as opposed to 120%) and simplify benefit calculations by implementing 52-week averaging with a single flat rate of compensation.
5. Defend the successful retrospective ratings program against proposals that would limit its effectiveness.
6. Eliminate duplication and unnecessary delays by allowing self-insured employers to manage their claims.
7. Prohibit the use of workers’ comp funds for non-comp programs.
8. Open up the market to allow private insurers to compete for Workers Comp Insurance.