Legislature leaves a cup half full; Mixed-bag session invests in future, doesn't deliver health-care help

BYLINE: Dave Gallagher

THE BELLINGHAM HERALD

With the economy in relatively good shape these days, it appears Washington state legislators focused on investing for the future when it came to business-related issues.

This year's session, which ended April 22, saw a variety of programs that will impact Whatcom County, including funding for small business development, economic development councils, tourism and agriculture. Some issues, including health-care coverage for employees, weren't completely dealt with.

"It was one of those sessions where some things were done that businesses should be pleased about, while there were other issues that were kicked ahead for next year's session," said Don Brunell, president of the Association of Washington Business.

Democrats, who controlled the House, Senate and Governor's Office this session, set the tone. Rep. Kelli Linville, D-Bellingham, said investing in business development programs and setting aside a rainy day fund were important parts of this session.

"We still have some work to do with streamlining and eliminating programs that just don't work, but overall I'm pleased with this session," said Linville, who was able to get several bills she sponsored passed.

Some local Republicans contend it was more of a mixed-bag session, particularly for small-business owners.

"In the end, there wasn't anything done to kill small-business owners, but not much was done to help them, either," said Rep. Doug Ericksen, R-Ferndale. "I think there is some concern about the size of this year's budget."

Here are some of the business-related issues that did - and did not - get addressed.

·Family Leave Act.

The bill that passed will give new parents five weeks paid leave at $250 a week, starting in 2009. Several local legislators did not support it because of uncertainty on how it would be funded.

"Right now, we have no way to pay for it," Linville said. "I believe in paid family leave, but I felt we needed to prioritize more for health care, and I didn't think this specific bill was well-thought out."

Sen. Dale Brandland, R-Whatcom County, said the bill is expected to be the first step of an expanded family leave act.

"This started as something that would be funded by employees, and now it's being studied," Brandland said. "My concern is that in the long run it will be the employers that bear the brunt of the costs."

The act is not yet law. Gov. Chris Gregoire hasn't taken action on it.

·Small business and economic development.

Some bills funded economic development, but the one with the most local impact was $695,000 for Western Washington University's Small Business Development Center. Much of the funding, which covers a two-year period, will go toward helping other centers across the state, and training and infrastructure development, said Tom Dorr, SBDC director.

"It is basically an expansion of what we've already been doing," Dorr said. "If an SBDC counselor in a different part of the state needs research, they can send us a request and we can provide the information we have or track it down. We'll be doing this for 25 other EDC areas without having to divert resources from what we are doing in Whatcom County."

This is the first time Washington state has given funding to the local SBDC, which usually relies on federal money.

"What this says to me is that the state is recognizing the value of small businesses, and rather than invent a new program, they are supporting the ones already in place," Dorr said. "It is significant for us because this can open the door to other funding so that we can be of further assistance to small-business owners."

·Tourism.

The state has set aside more money to market Washington state as a tourism destination and is giving industry leaders more of a say about it. That's good news to Drew Schmidt, president of Victoria San Juan Cruises.

"It's fantastic. For years we've been around 48th out of 50 states when it comes to marketing tourism, so it's a boost that is needed," Schmidt said.

He also is happy about a matching-fund program in the bill, in which the private sector will contribute to the program and have more of a say about marketing, particularly after the state's "Say Wa?" slogan didn't work out.

"I think there was a situation that developed where the state was coming up with grandiose ideas about how to market Washington, when there are some simple ways to increase tourism to this area," Schmidt said.

·Sales tax.

One key bill that will benefit local businesses was Senate Bill 5089, which changes how sales tax is collected for online purchases. Under the new law, which goes into effect next year, the local sales tax rate will be based on where the customer receives the product. Currently, the sales tax rate is based on the business location.

·Agriculture.

Several agriculture bills were passed. One that will have an impact locally is making wholesale sales of unprocessed milk exempt from the state business and occupation tax. Linville sponsored the bill.

She said the exemption was fair, particularly since other agricultural commodities, such as wheat and oats, have the same exemption.

·Health-care coverage.

This is one of those issues that wasn't addressed, which was particularly frustrating to Brandland.

"Not having this resolved will really hurt our economy," Brandland said. "The state needs to make sure there are health plans available that small businesses can afford, and we are not doing that. Right now there is just too much head-butting going on, and there hasn't been any negotiation."

Ericksn agreed, saying some fundamental differences remain between Republicans and Democrats on how to solve the problem.

"I believe the majority party wants a state-run system, where we want to tackle the problem through reforms," Ericksen said.

HOW THEY VOTED

Here is a look at how our local state legislators voted on some business-related bills in the latest session:

Senate Bill 5659 (family leave)

·Yes: Harriet Spanel, Jeff Morris, Dave Quall.

·No: Dale Brandland, Doug Ericksen and Kelli Linville.

Status: Sent to Gov. Chris Gregoire.

House Bill 2171 (establishing a crane safety certification program)

·Yes: Brandland, Spanel, Ericksen, Linville, Morris and Quall.

Status: Signed by Gregoire.

House Bill 1289 (creating driver's license to use for crossing border)

·Yes: Brandland, Spanel, Ericksen, Linville and Quall.

·Morris did not vote.

Status: Signed by Gregoire.

House Bill 1276 (tourism partnership)

·Yes: Brandland, Spanel, Ericksen, Linville, and Quall.

·Morris did not vote.

Status: Gregoire scheduled to take action on this bill Monday.

House Bill 1549 (unprocessed milk)

·Yes: Brandland, Spanel, Ericksen, Linville, Morris and Quall.

Status: Signed by Gregoire.