The Legislative Review

WA S H I N GTO N

RESTAURANT The

July 2011

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Formerly The Front Burner

Legislative Review

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Inside 5

WRA Government Affairs Committee co-chairs reflect on a session of success

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Hill Climb & Taste Our Best: Bringing together restaurateurs and lawmakers

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Recounting the biggest wins of the 2011 legislative sessions

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How a bill becomes a law: Examining the meal tax legislation

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Round two: Special session yields some of 2011’s strongest wins

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Legislative Heroes: Celebrating the legislators who stood up for the restaurant industry this session

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Legislative Report Card: How your legislators voted

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Calendar & New Members

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Marketplace

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PAC, GAC and Grassroots: Fueling our efforts

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EDITORIAL STAFF Anthony Anton, Publisher Lex Nepomuceno, Executive Editor Camille St. Onge, Contributing Editor Heather Donahoe, Managing Editor Lisa Ellefson, Art Director WRA BOARD OF DIRECTORS Bret Stewart, President Center Twist Jim Rowe, Vice Chair Consolidated Restaurants Robert Bonina, Secretary/Treasurer Washington Athletic Club Steve Simmons, Past Chair S & S Hospitality, Inc. Naja Hogander, WRAEF President Daniel’s Catering WRA EXECUTIVE TEAM Anthony Anton President and CEO Teran Petrina VP Internal Operations Bob Decker Director of Membership Bruce Beckett Director of Government Affairs Camille St. Onge Director of Marketing & Media Relations Lex Nepomuceno Director of Member Info & Resources Lyle Hildahl Director of Education Victoria Olson Director of Business Development 510 Plum St. SE, Ste. 200 Olympia, WA 98501-1587 T 360.956.7279 | F 360.357.9232 www.WRAhome.com

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From the GAC Co-chairs Thank you, GAC Members, PAC contributors and the WRA for a fantastic legislative session Wow…what a spectacular ride for the hospitality industry in this prolonged legislative session that ran from early January until just before Memorial Day. So, just how spectacular was this ride, you ask?

Well, each and every one of our businesses will benefit substantially from the legislative outcomes.

Consider:

The vast majority of restaurants received a 50% or better reduction

in their unemployment insurance taxes for 2011. And these tax savings continue in future years. Simply put, these savings equate to thousands of additional dollars for your business.

Restaurants will no longer be required to pay sales and B&O tax on the value of meals they provide free of charge to their employees.

Liquor prices to licensees will be reduced by 8%-11% (depending on the product).

Liquor license fees will be reduced by 10% from 2009-2010 levels.

Spirits, beer and wine restaurant licensees now have a new product to consider offering to their customers—growlers of beer to-go.

Businesses considering nightclub licenses will no longer be constrained by outdated occupancy requirements.

Private clubs are relieved of antiquated limits on visitor use of their facilities.

In King County, the 0.5% sales tax on purchases in restaurants, bars and taverns to fund re-payment of bonds for Safeco Field will sunset later this year when the bonds are retired.

Restaurants now have a clear definition of a “service animal,” which will be useful when customers arrive with questionable animals.

Restaurants now have the option of entering into agreements with local wineries to promote tourism by reducing or eliminating corkage fees.

The WRA team also fended off proposals to raise taxes based on the amount of street usage by our customers, and defeated amendments on bills that could have hindered the WRA’s ability to offer a competitive Retrospective Rating program.

Additionally, the WRA worked with the entire business community in advocating for a state budget that is balanced without reliance on new business taxes or “one-time” revenue. And, finally, major reforms of Washington’s workers’ compensation system will deliver relief from expected increases in workers’ compensation premiums.

GAC co-chairs letter continued on next page July 2011 | 5

Three Keys to Success WRA member engagement and involvement WRA members made the difference. On January 24, more than 180 business owners met with legislators to discuss hospitality industry issues at Hill Climb and joined in visiting with lawmakers and administration officials at the WRA’s annual Taste Our Best reception. These visits have a huge impact on lawmakers, and that impression resonates through to the end of session and beyond.

Another driving force behind the WRA GA team’s efforts is the Government Affairs Committee, of which we serve as co-chairs. The guidance, advice and counsel of the GAC sets the agenda for the legislative session from beginning to end, participating in weekly conference calls during session and weighing in on strategy changes as the legislative process unfolds. For those who are an active voice on the GAC each week, thank you! For those interested in being part of the process, please let us know. The WRA cannot succeed without your counsel.

Finally, we cannot express enough thanks to those WRA members who ventured to Olympia to testify before committees on bills important to our industry. You all succeeded in educating lawmakers on the challenges and opportunities, in our sector, and made the difference on a number of important issues. Thank you.

Jim Rowe, Government Affairs Committee Co-Chair, Consolidated Restaurants

WRA Political Action Committee (WRA PAC) The WRA’s GA team had the opportunity to educate legislative candidates on issues important to our industry during last year’s election cycle. And it worked! Lawmakers entered the session with an understanding of our key issues, having become wellacquainted with the GA team that represents the interests of the restaurant industry.

The WRA PAC is the bridge that connects the WRA to political candidates and is the reason the team was able to achieve the outcomes that will benefit all of our businesses.

Please learn from this success and consider additional contributions to the WRA’s PAC—it pays off for your business.

Teamwork makes it possible Finally, what an amazing team effort took place this session. WRA members can be proud of the teamwork exhibited by every department of the WRA organization. The GA team cannot work in isolation; it must have the reinforcement of the entire WRA team. We want to express our deep appreciation and thanks to each and every member of the WRA team. All of you contributed to helping our members succeed in this legislative session. Please accept our heartfelt thanks.

Phil Costello, Government Affairs Committee Co-Chair, Owner of Stop N Go Drive-in and Zips Drive-in

Sincerely, Jim Rowe and Phil Costello, GAC co-chairs

GA team: To learn more about our talented GA team visit wra.cc/wraga

Bruce Beckett, Government Affairs Director 6 | www.WRAhome.com

Josh McDonald, State and Local Government Affairs

Julia Clark, Government Affairs Manager

Denny Eliason, Kim Clauson-Hoff, Alliances Northwest Alliances Northwest

Hill Climb and Taste Our Best

Connecting restaurateurs and lawmakers Hill Climb 2011 gave more than 180 WRA members the opportunity to meet one-on-one with their legislators. Restaurateurs spoke with lawmakers during more than 100 scheduled appointments on the Hill.

Afterward, politicos and industry professionals mixed and mingled at the fabulous Taste Our Best reception, showcasing the state’s best food, wine and beer.

Running a businesses isn’t always easy, and state lawmaking can sometimes make it even more difficult. That’s why the WRA organizes Hill Climb each year. This annual event gives restaurant operators an opportunity to interact one-on-one with legislators. Throughout the day, business owners meet with lawmakers in Olympia from their district to discuss business outlook, special challenges and to communicate the state of this industry. The WRA government affairs team does all the work, from setting appointments with legislators to providing simple-to-read talking points for WRA members to use during their meetings. It’s the perfect way to ensure your legislator knows exactly what you need to be successful.

Rep. Condotta listening to WRA member priorities.

Sen. Holmquist Newbry hearing concerns from restaurateurs.

The WRA thanks every member and legislator who took part in this important event.

Rep. Eric Pettigrew speaking with WRA member Joe Fugere.

WRA members greeted by Rep. John Ahern.

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Major wins for restaurants in 2011 This year’s legislative sessions were fraught with challenges, but that didn’t prevent the WRA from achieving major wins for your business. The WRA government affairs team was right in the middle of the action the whole way, beginning at the start of regular session on January 10. This team delivered a historic number of victories for YOUR business.

Here is an overview of the most significant efforts for you in Olympia this session.

VICTORY Unemployment insurance tax relief

The WRA scored a major victory for our members in February when the Legislature enacted EHB 1091, which significantly reduced unemployment insurance (UI) taxes for nearly all WRA members. Despite persistently high unemployment, Washington’s UI trust fund has remained healthy and continues to provide benefits in excess of most states in the nation. However, in the last two years, employers have endured large increases in their UI taxes, in large part because of the UI benefits being paid to workers whose employers are no longer in business, hence not paying into the trust fund. In UI parlance, these are called socialized costs because all employers pay a portion of their tax to cover these types of benefits. Under EHB 1091, socialized taxes are reduced substantially, particularly for employers with a low incidence of layoffs.

The WRA began working on this bill last fall when a number of our members agreed to allow their businesses to be modeled by the Employment Security Department.

Minority Leader Richard Debolt (R-20) and Speaker Frank Chopp (D-43) taking time to speak before a vote.

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The modeling was done to examine the effect of possible changes to the UI system, specific to the restaurant industry.

The data derived from the modeling helped shape the tax and benefit components of the bill. The data also proved useful in educating lawmakers on how the bill would impact both small and multi location businesses.

EHB 1091 also included two additional important features: 1.) It provided a temporary $25/week benefit increase for recipients to assist in this difficult economic climate 2.) It expanded eligibility for individuals to receive benefits while enrolled in approved training programs. The cost of this additional benefit is capped within the system, and qualifies the state to receive an additional $98 million in federal unemployment benefit funds to augment the state’s resources.

In order for the benefits of the UI tax change to assist businesses in 2011, the bill needed to pass by the first week of February, so that the Employment Security Department could reissue first quarter tax statements to all businesses in the state. That goal was achieved.

The WRA is pleased to have been singled out on the floor of the Senate during the final debate on the bill. Senators acknowledged the restaurant industry’s work in developing a bill that worked for the employer community, Labor and the Employment Security Department.

Liquor privatization and distribution

After I-1100 narrowly failed in November’s election, a number of bills were introduced this session to privatize the sale and distribution of liquor in Washington state; however, none of the proposals were brought up in committee for public hearings. As the House was in the late stages of preparing their proposed budget, an investment group out of New York brought forward an idea to securitize revenues from the sale of liquor in Washington state by providing an upfront payment of $300 million to the state in exchange for a 20-year contract to operate the warehouse and distribution system to supply state liquor stores. Although no bill was introduced, the House booked $300 million in revenues from the proposal in their budget.

The WRA opposed the House approach because all of the risks to fund the contract would have fallen to liquor store customers including licensees. Additionally, the WRA objected to the approach on the basis that adding a new monopoly to be the supplier of the state’s retail monopoly does not create competition or efficiencies in the system.

The Senate took an entirely different approach. They did not book any revenue. Instead, Minority Leader Mike Hewitt (R-16) and Sen. Joe Zarelli (R-18), with the full support of Ways and Means Chair Ed Murray (D-43), introduced SB 5942 to authorize the Office of Financial Management to put out a request for proposal to seek bids for operating the state’s liquor distribution and warehousing system. The WRA was successful in amending the bill to include protections against future cost increases to customers. The bill also was amended to allow for WRA involvement in determining the performance standards of any such contract. The WRA requested that the emergency clause be removed from the bill. By including the emergency clause, the number of bidders will be reduced, and the state may not receive the maximum number of Senate Ways and Means Committee Chair Ed Murray and Majority Leader Sen. Lisa proposals as it could otherwise. Despite objections from a number of groups, the Brown conversing on the Senate floor.

Legislature adopted SB 5942 in the late Claims management authority for stages of the special session, and the governor chose not to Retrospective Rating programs veto the emergency clause.

A number of organizations that offer Retrospective Rating programs developed HB 1487 to provide additional claims In the midst of the debate over the liquor distribution system, Costco, the WRA, the Northwest Grocers Association management authority for Retro programs. The bill would allow Retro programs to schedule medical examinations and a number of distributors concluded a lengthy and and vocational assessments, and to close short term deliberative process to develop a new approach to privatizing the sale and distribution of liquor in Washington medical claims. As introduced, the bill was designed to assist in lowering the cost of claims management for Retro state. The proposal, SB 5933, was introduced with biprograms. partisan sponsorship by Sen. Rodney Tom (D-48) in the latter stages of the regular session. It addresses the concerns The WRA was concerned about any bill related to Retro of voters who rejected I-1100 last year, and reflects the being debated in the Legislature this year because of the interest of state and local governments to retain and grow difficult debates over Retro in the two previous sessions. resources. Despite a favorable fiscal analysis by the Office of Even so, the WRA remained neutral on HB 1487 in Financial Management, SB 5933 did not have the benefit of recognition of its intended objective. However, the bill was a public hearing in either the regular or special session. amended on the floor of the House to add new oversight and review processes that could have adversely impacted all Nonetheless, SB 5933 is the basis for a new ballot initiative Retro programs. Fortunately, all the groups that offer Retro to the people, I-1183, which aims to privatize the sale and programs aligned to advocate with the Senate to amend the distribution of liquor in the state. Both The Seattle Times and bill in a way that achieves its original objective. The Senate The Herald in Everett cited the initiative when they called Commerce and Labor Committee, however, opted not to for the governor to veto SB 5942 as an inappropriate way to have a public hearing on the bill and, accordingly, failed to approach liquor privatization. move it to the floor for further consideration.

July 2011 | 9

The WRA will join with other Retro groups to examine options for the 2012 session.

Restaurants and wineries now able to waive corkage fees Last year, Jar Arcand, owner of Santiago’s Gourmet Mexican Restaurant in Yakima, created a program in which he waived corkage fees if customers brought in a bottle of wine from a local winery, along with proof they had purchased it that day. The program encouraged those in town visiting wineries to eat at his restaurant and generate additional revenue in his local economy.

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Gov. Gregoire signs HB-1227

Unfortunately, the Liquor Control Board issued a cease-anddesist letter because the co-promotion violated tied house laws. Jar subsequently reached out to his lawmakers, Rep. Charles Ross (R-14) and Sen. Jim Honeyford (R-15), and HB 1227 was drafted.

The WRA worked with Jar throughout the legislative and governor-approval process, including two hearings and numerous meetings with lawmakers. This is a great success story of what can happen when restaurateurs engage in the legislative process.

Alcohol Omnibus Bill offers relief from regulation

This year, liquor licensees will see relief come in many forms—not only in tax relief from unemployment insurance reform, the exemption of free employee meals and relief from the cost of liquor prices, but also relief from easing some onerous regulatory laws. Over the last few years, the WRA and other stakeholders representing liquor interests, along with the Liquor Control Board, worked to make technical and policy changes to Washington state’s prohibition-era laws and regulations that are an obstacle to conducting business. When issues are non-controversial among the group, and the Liquor Control Board agrees there are no public safety issues at risk, they are rolled into an omnibus bill. Since the bill has broad consensus and agency approval, it tends to move

WIN

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quickly through the legislative process. This bill includes some specific features for businesses: Restaurants gain ability to sell “growlers” Until this year, only microbreweries, tavern licensees and beer and wine restaurants licensees had the option to sell growlers—or half gallon sized containers of tap beer for off-premise consumption. While spirits, beer and wine restaurant licensees can sell kegs to go, the option to add growlers was simply never pursued until this year. SB 5788, this year’s Alcohol Omnibus Bill, contains the provision that will allow spirits, beer and wine licensees to sell growlers togo. This legislation takes effect July 22, 2011.

Private clubs will decide member benefits Private club licensees, until now, have been restricted to 40 non-member events per year. For certain private club licensees, a non-member event could have been interpreted as a club member’s wedding, a club member hosting a dinner or luncheon, or a charity event where non-members were present. Being restricted to the number of events could pose a threat to the way these clubs are allowed to operate, or even harm the communities and organizations many of these events benefit. SB 5788 removes limitations on non-member events.

NWFSS will be able to showcase new product SB 5788 will allow a new product to be showcased at trade shows—drink mixers! Until this year’s Omnibus Bill, a special license did not exist, and the Liquor Control Board simply did not have the authority to grant a license for manufacturers of drink mixers to sample their product with liquor. This posed a problem for drink mixer companies

that wished to showcase their product at the Northwest Food Service Show, as well as for restaurateurs who wanted to sample the final product before offering to customers.

The passage of SB 5788 will now allow for the Liquor Control Board to issue this special license.

Liquor license fees rolled back The task for lawmakers this year to balance a $5 billion budget shortfall proved to be very difficult. Without the ability to increase taxes, the legislature was forced to reassess programs, efficiencies, and make drastic cuts. Several bills were introduced this year under the guise of a “fee”—which the legislature had the authority to impose with a majority vote—but were in fact actually taxes. HB 2014, prime sponsored by Rep. Sam Hunt (D-22), was one of those.

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In 2009, the legislature approved a 10.5% increase in liquor license fees. The WRA Government Affairs Committee voted to remain neutral on the issue for a number of reasons. First, the increase was slated to sunset in 2011. Second, the 10.5% increase was directed to fund administration of licensing, education and enforcement.

Lastly, liquor license fees had not been increased for many years, and this 10.5% increase was the only amount allocated back to the administration of the licenses.

HB 2014, would have maintained the temporary 10.5% increase and added an additional 10% onto the fee.

The revenue from the additional 10% increase would be allocated to the Department of Commerce to fund substance abuse prevention and to OSPI for drug abuse education.

The WRA aggressively opposed this additional 10% increase on licensees to further increase funding for drug abuse programs, because license fees are already dedicated to education and abuse prevention. Currently, only the 10.5% increase approved in 2009 is directed to the liquor revolving account for license administration. Nearly 90% of the remaining funds go to DSHS. Beyond that, $150,000 is directed annually to DUI investigations and just a little more than 10% is dedicated to the University of Washington and Washington State University for drug abuse treatment research.

While the programs arguably served the participants of the drug abuse program, the “fee increase” was clearly a tax, therefore requiring a two-thirds majority.

HB 2014 was heard in committee and passed out the same day. The bill never made it to the floor for a vote, and died in the House.

Liquor Control Board bill delivers relief for nightclub licensees This year, the Liquor Control Board put forward a bill that would add some technical corrections and regulatory relief for restaurants.

Contained in the legislation were two important changes.

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First, was a removal of the 100-person minimum capacity for a nightclub license. An establishment no longer has a minimum capacity to qualify for a nightclub license.

Major wins continued on page 26 Gov. Gregoire signs SB-5788 July 2011 | 11

How a bill becomes a law

Step by step through the WRA’s employee meal tax bill

by Julia Clark

This year, the WRA Government Affairs Committee (GAC) directed the GA team to take on an aggressive agenda. Among our proactive goals this year was to pursue a tax exemption, which can be nearly impossible to achieve even in the best of years. Considering the state’s unprecedented budget gap this year, this objective was a tall order to say the least. Accordingly, the meal tax exemption we achieved this session is all the more remarkable.

If you’ve ever wondered about the lawmaking process— how a bill is actually transformed into a law—wonder no more. This bill is a great example of how the WRA uses multiple strategies and resources to accomplish beneficial results for the restaurant industry. It is by no means as simple as asking legislators to consider a proposal. Here’s a look at how the WRA GA team achieved this employee meal tax relief for Washington’s restaurants.

Receiving direction from GAC Every issue the WRA government affairs team advocates for is first determined by the GAC. While many decisions are recommended and made at the advice of the lobby team, WRA members ultimately make the final decision. Pursuing a tax exemption for meals provided free of charge was an idea that emerged at a GAC meeting. Knowing that the 2011 Legislature had to balance a $5 billion budget shortfall, the GA team was admittedly very wary of tackling this issue.

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Political Action Committee, candidate interviews After the GA team’s direction on this issue was clear, the groundwork was laid through conversations with legislative candidates. During each election cycle, the government affairs team travels around the state to meet with legislative candidates to hear what their priorities in office would be if elected and share major concerns and priorities for our industry. As one of the largest business PACs in the state, we have this unique opportunity. It was during these interviews that the GA team was able to discuss the employee meal tax as one of many obstacles that make it difficult to do business in Washington.

WRA members Joe Fugere, Shawn O’Donnell and Bret Stewart testify before the House Ways and Means Committee on HB1498.

Advocacy with state agencies Our next move was to find out what the fiscal impact would be to the state if we were to pursue this tax exemption.

Knowing that the Legislature would again be tasked with balancing a budget with unprecedented deficits, this would be key to getting a gauge on the probability of passing legislation. The WRA reached out to the Department of Revenue, who was tasked with collecting this revenue from restaurants. The WRA worked constructively with them to develop an estimated fiscal impact to the state.

WRA source of industry information Initial fiscal statements from the Department of Revenue were around $7 million—an insurmountable obstacle in this budget climate. The WRA examined the first fiscal estimate and thought it might need examination. We were able to survey our membership to determine that a few fundamental components of the fiscal estimate needed to be adjusted. After recalculation, a fiscal note came back at just slightly more than $1 million.

Finding a champion for the issue With assistance from the DOR, we developed bill language that was acceptable for the WRA and DOR. We also knew the bill had a reasonably sized fiscal note. At this point, we were ready to find a sponsor for the bill. During committee week, traditionally a week in December when the Legislature comes to Olympia in preparation of the upcoming session, we began meeting with every member of both the House and Senate Ways and Means Committees— the committees the legislation would have to pass through—to educate them on the topic, and to seek out a bill sponsor. It was then we asked Sen. Ed Murray (D-43), Chair of the Senate Ways and Means Committee and previous WRA Legislative Hero and Sen. Mark Schoesler (R–09), Republican floor leader and small business advocate, to sponsor the bill for us. In the House, we asked Rep. Eric Pettigrew (D-37), caucus chair, who also is the representative with the second most restaurants in the state; and Rep. Ed Orcutt, (R-18) assistant ranking minority member of the House Ways and Means Committee. We were confident these bill sponsors would carry the issue for our industry among their caucuses. Fortunately, we were right.

Using our strength—you The House version of the bill, HB 1498, was introduced the same day as 2011 Hill Climb, when we had 180 WRA members in town to meet with their elected officials. The timing was ideal. Restaurants in Washington are the state’s largest private employer, and our industry is comprised of over 13,000 businesses. Undoubtedly, our strength is found in the number of people we employ in businesses across the state—a fact that is clearly demonstrated at our annual Hill Climb event. We were able to discuss our industry in personal terms when WRA members met with their legislators and discussed the struggles of operating a business in this economic climate, the need for relief and our ability to offer this critical free meal benefit to our employees.

Soon after, HB 1498 and SB 5501 were scheduled for public hearings in their respective committees— an important first step that many bills do not even receive.

The public hearing was our chance to share our side of the story alongside any possible opponents. For this important task, we again turned to our strength—our members.

We called upon WRA member and board president, Bret Stewart, who is a franchisee of Auntie Anne’s Pretzels; along with Joe Fugere, owner of Tutta Bella Neapolitan Pizzeria; and Shawn O’Donnell, of Shawn O’Donnell’s Restaurant. Each had a different perspective to share with the committee and as a result, the bills were shortly moved out of committee.

Sponsors champion for bills After the bills passed out of committee and made their way onto the floor, our bill sponsors were champions for the issue in their caucuses, advocating for the legislation to move forward. In the House, the bill moved out of the full chamber with a vote of 96-1. In the Senate, the bill passed unanimously—true testament to the work done by WRA members and the political strength of the bills’ sponsors.

Governor signs SB 5501: WRA once again delivers results to restaurants and their employees After both bills passed from their respective chambers of origin, the sponsors negotiated which version of the bill would be the ultimate vehicle to pass. It was decided the Senate version of the bill would continue. It again went through the committee process and headed to the House floor, where it was passed out again by a near unanimous vote and headed to Gov. Gregoire’s desk for her signature.

The governor signed SB 5501 on April 13, and the bill took effect earlier this month.

In the end, SB 5501 was one of only 8 revenue reducing bills to pass this year out of hundreds introduced. In the most economically challenging time in recent history, the WRA was not only able to defend the industry against increased taxes and costs to doing business, but was able to find relief for businesses across the state. 

Gov. Gregoire signs SB 5501

July 2011 | 13

Round Two

Special session yields some of 2011’s biggest changes 2011 – 2013 Budget: One of the most challenging since the Great Depression Normally, lawmakers enter a new biennium WIN brimming with ideas for new programs and ways to allocate state resources. This year was an exception. Legislative leaders and the governor entered the 2011 session with one overarching goal in mind: to balance the state’s $5 billion budget deficit without the option of raising new revenues. The voters overwhelming approval of I-1053 last November, which requires a two-thirds majority vote of both the House and Senate to increase taxes, set the foundation for how lawmakers approached the budget challenge.

Combined with the fact that one-time money from the federal government would not be available, lawmakers were forced to accomplish a very difficult task—balance state spending with current revenues.

Gov. Gregoire set the stage with her proposed 2011-2013 budget in December.

Although the governor did transfer some funds within state government, her budget relied on prioritizing spending, making some painful cuts to some popular programs and not relying on new revenues to balance expenditures. The governor’s budget was a stern reminder to the new leaders of both the House and Senate fiscal committees that their task would be difficult and fraught with stakeholders expressing outrage over favored programs being reduced or eliminated.

In her “State of the State” speech to lawmakers at the outset of the session, the governor alerted legislators that they would encounter the same difficulties she endured in writing her budget.

Thousands of bills later, it was evident that the governor’s warning to lawmakers was accurate. The overwhelming majority of bills that had any adverse impact on state revenues were rejected. In this environment, it is remarkable that lawmakers overwhelmingly adopted the WRA’s proposal to create a sales tax exemption on free meals provided to employees.

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The House and Senate emerged with their budget proposals very late in the regular session. In the Senate, however, an entirely new political alliance was formed when, for the first time in memory, their budget was the result of a truly bi-partisan process, and adopted with substantial bi-partisan support. Although the same dynamic did not occur in the House, the commitment of the Senate to a bi-partisan approach created a dramatically different political climate in which to forge a final agreement during the special session.

Sen. Joseph Zarelli (R-18) being interviewed by TVW. Because the two chambers did not have time to iron out their differences during the regular session, the governor had to call a special session so work could be completed on the 2011-13 biennial budget. After 105 days of regular session and 30 days of special session, a final 2011-2013 operating budget was approved by both the House and Senate. Similar to the governor’s proposal, the budget relies on prioritizing state services, difficult reductions in many state programs (including K-12 and higher education) and some fund transfers. The Legislature and the governor did exactly what was needed and should be commended for their work. They wrote a budget that does not rely on onetime federal money or gimmicks that could jeopardize our state’s financial stability in future biennia. What’s more, it is a budget that begins to put the state on a path toward a sustainable spending and revenues. The WRA commends the bipartisan process that emerged, in particular, the leadership of Sen. Ed Murray (D-43), Sen. Joe Zarelli (R-18), Rep. Ross Hunter (D-48) and Rep. Gary Alexander (R-20) for their efforts to work across the aisle.

Liquor prices: The WRA delivers relief to licensees In 2009, the Legislature chose to sweep the funds in the Liquor Revolving Account into the general

Y VICTOR

budget to help balance the 2009-2011 biennial budget.

The Legislature then directed the Liquor Control Board to replenish the $80 million account by increasing the price of liquor or increasing efficiencies. The WRA worked with members of the Legislature to ensure that if the LCB chose to raise prices, it would not apply to licensees. Two members of the Legislature participated in a procedural motion on the floor of the House called a “colloquy” to clarify that if the LCB chose to increase prices, any price increase would not apply to licensees. The LCB chose to ignore the colloquy and instituted an across-the-board price increase to all customers, increasing the mark-up from 39% to 51% (in effect raising product prices by 8-11%).

the state could derive as much as $2 billion over a biennium if video lottery terminals were allowed at the same level as Oregon. In 2010, a number of lawmakers took a keen interest in the idea and requested preliminary estimates of potential state revenues from fiscal staff and the Lottery Commission. At that time, it was estimated the state could receive $400-$500 million per year.

In 2010, the WRA was successful in amending the supplemental budget to direct the LCB to roll back the price increase on licensees. Again, the Legislature was concerned about the impact of the price increases on jobs and economic activity in the hospitality industry. Unfortunately, the governor vetoed that section of the budget, and licensees have continued to pay the increased 8-11% in liquor prices.

The price increase put into effect by the LCB in 2009 achieved its intended goal—it was successful in replenishing the Liquor Revolving Account. Not surprisingly, the Legislature again opted to use funds from the liquor account to balance the 2011-2013 budget, essentially creating a situation where the 2009 price increase must remain in

Rep. Ed Orcutt (R-18), Rep. Paul Harris (R-18), and Rep. Cary Condotta (R-12) place. Hence, the WRA worked with budget writers to again include language in the budget that the price hike adopted in 2009 would not apply to licensees, and that the increase would be rolled back to pre-2009 levels during 2011. Despite objections from the LCB and spirits manufacturers, the final budget passed by the Legislature includes direction to roll back prices on licensees and will take effect this month.

Authorizing increased gaming in restaurants Recognizing the ongoing fiscal challenges facing the state, the WRA began introducing lawmakers to the idea of authorizing restaurants, bars and taverns to install and operate video lottery terminals (VLTs) in the liquor license areas of their businesses—a system akin to the approach taken in Oregon for many years. Initial estimates suggested

Rep. Kevin Parker (R-6) and Rep. Dan Kristiansen (R-39) Unfortunately, the tribal community is adamantly opposed to any expansion of gaming outside of tribal casinos.

Therefore, prior to the 2011 session, the WRA worked to refine an approach that could include the tribes in the management of an expanded video lottery terminal system.

Additionally, the WRA spent considerable effort educating legislative leaders, agency staff, fiscal committee staff, the governor’s office and budget writers on the potential benefit of an expanded video lottery system. Despite these efforts, the tribal community remained adamantly opposed to any expanded gaming.

Concurrently, the Recreational Gaming Association (RGA) analyzed and developed an approach to authorize additional VLTs in business locations currently permitted for gaming in Washington. In addition to providing the state with much needed revenue, the RGA approach would limit the “footprint” to only those permitted locations. The RGA introduced HB 2044 with bi-partisan sponsorship during the regular session.

Unfortunately the bill never received a public hearing.

A public hearing would have provided an excellent opportunity to outline the benefits of such a system in Washington state, while creating a chance to offer ideas on how to meld the WRA and RGA approaches for the benefit of the state and our businesses.

The WRA will continue to work with stakeholders and the RGA to pursue this idea as the state enters the second year of the biennium in 2012.

Cigar lounge bills unsuccessful…for now In 2005, voters passed Initiative 901, which expanded a ban on smoking in public places to include schools, bars, taverns, bowling allies, casinos, reception areas, the majority July 2011 | 15

of sleeping quarters in hotels and motels and places of employment. Unfortunately, unlike other states that passed smoking bans around the same time, Washington state’s initiative did not recognize and protect authorized cigar lounges as an exception to the ban. To fix this issue, a group including the Cigar Association of Washington, restaurants and cigar enthusiasts stepped forward this session to introduce HB 1683/SB 5542, establishing special license endorsements for cigar lounges and retail tobacconist

Gov. addresses the Legislature shops. Recognizing that an authorized cigar lounge should be a legitimate, professionally run part of a business, the authors of the legislation included rigorous standards. These provisions focused on air quality/ventilation, job protection for employees who choose not to work in the lounge, appropriate signage to clearly denote the cigar lounge and significant per year fees of $17,000 for restaurants and $6,000 for tobacconist shops.

Public hearings for the cigar lounge legislation consisted of public health advocates arguing that this allowance would weaken our smoking ban and put people at risk.

Concurrently, business owners and cigar aficionados made the case that cigars are very different from cigarettes and should be exempted from the smoking ban, if done so in a carefully controlled environment. The debate continued through the entire session and took many twists and turns through various committees until it finally passed on the Senate floor. Unfortunately, SB 5542 did not get to a full House vote before the end of the 2011 legislative session. A significant amount of work was put into this legislation and therefore we fully expect to see a similar bill return next year for the Legislature’s consideration.

King County Stadium Tax set to expire In 1995, the Legislature approved a number of temporary taxes to fund the construction of Safeco Field in Seattle. The WRA was an active participant in those discussions, and we agreed as an industry to a 0.5% food and beverage sales tax on restaurant meals in King County. Industry leaders agreed to this approach because the tax was to be used to increase tourism and visits, which would benefit our industry. The tax was authorized until 2015, or until the bonds were paid off, whichever was sooner.

16 | www.WRAhome.com

Over the years, there have been several attempts to make this tax permanent and to redirect funds for other programs.

A number of lawmakers have proposed using any funds generated between the time the bonds were paid off and 2015 for a number of programs unrelated to our industry.

The WRA has been adamantly opposed to these proposals.

We have, however, always participated in discussions to use the tax for projects that have a direct connection to our industry. Six years ago, the WRA Government Affairs Committee strategically gave the WRA the flexibility to negotiate this issue, provided any deal reached would honor the 1995 agreement that the tax expire in 2015.

Going into the 2011 session, there were a number of proposals being considered, because it was projected that the bonds to fund Safeco Field would be paid off at the end of 2011. That meant there would be a four-year period of time between the bond retirement and the end of 2015.

During this time, the restaurant tax could raise in excess of $80 million. Several influential groups were urging legislative leadership to use those funds for public health services.

The WRA adamantly opposed these proposals, as they were not keeping with the original agreement, and would create a bow wave of spending that would put great pressure to continue the tax after 2015.

The restaurant industry’s many years of work on this issue paid off and an alternative approach emerged, led by King County Executive Dow Constantine. Under his proposal, the food and beverage tax would sunset in 2015, and the revenue from the tax would have been invested in

Rep. Ross Hunter (D-48), Rep. Jeannie Darneille (D-27), and Rep. Bruce Dammeier (R-25) expansion of the Washington State Convention Center and an increased focus on promoting tourism in King County (the measure also included a modest level of funding for workforce housing aimed at workers in our industry).

The WRA embraced this approach and supported the subsequent legislative proposals during both sessions.

2011 was a year where lawmakers were leery of any tax proposals. Many legislators argued that the deal struck Special session continued on page 20

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2011 Legislative Heroes

Saluting the lawmakers who stood up for the restaurant industry this session At the close of each year’s legislative session, the WRA recognizes those lawmakers who demonstrated their support for the restaurant industry. These legislators worked on issues of importance to the industry, worked within their caucuses to champion restaurant industry issues and assisted on bills of keen importance to the industry. We applaud each of them for their leadership this session.

agreed to be the prime sponsor of the WRA’s employee meal tax legislation. He recognized that this tax was harming both people working in the industry and the businesses that employ those people.

House: Rep. Larry Springer (D-45) Rep. Springer, who has been recognized previously as a Hero for his unwavering support of the hospitality industry, again deserves recognition for the new and different role that he played during the 2011 session. In addition to being a member of the House Democratic leadership team, Springer served as the liaison and advocate within the House Democratic Caucus to the business community.

He convened weekly, and often more frequent, meetings with the business community to listen to concerns with bills, gain insight into business community priorities and provide a Rep. Larry Springer (D-45) “sounding board” to his leadership team. Rep. Springer played a key role in bringing the stakeholders together on the extraordinarily difficult unemployment insurance and workers’ compensation issues, and provided an important role to surface specific issues related to other controversial bills.

Rep. Eric Pettigrew (D-37) and Sen. Derek Kilmer (D-26) Rep. Pettigrew managed this important bill in the House Ways & Means Committee and was the key champion for the bill with his caucus, as well as on the floor of the House.

His thoughtful approach, careful work and credibility with members on both sides of aisle were vital to the success of the effort.

Rep. Cary Condotta (R-12) Rep. Cary Condotta is a repeat Hero for his tireless work on behalf of business and, in particular, restaurateurs. As the ranking minority member on the House Labor & Workforce Development Committee, Rep. Condotta was the lead negotiator in the House on the major changes enacted to Washington’s unemployment insurance tax system and for the dramatic reforms to Washington’s workers’ compensation system.

The WRA appreciates how difficult Rep. Springer’s role was, and the outcomes of this session reflect the skill and ability he demonstrated in communicating to both his leadership team and caucus the issues of importance to the hospitality industry, and business in general.

Rep. Eric Pettigrew (D-37) Rep. Pettigrew has emerged over the last few years as a key leader within the House Democratic Caucus because of his passion for health and human service issues, engagement on fiscal issues and his ability to work across the aisle. His legislative district is also home to second largest number of restaurants in a legislative district in the state. Rep. Pettigrew 18 | www.WRAhome.com

Rep. Bruce Dammeier (D-25) and Rep. Cary Condotta (R-12) These achievements alone warrant recognition. But Rep. Condotta, who is also a restaurateur in Wenatchee, is the

leader in the Republican Caucus on alcohol related issues.

When the House reorganized its committees and assigned those issues to the House State Government and Tribal Affairs Committee, Rep. Condotta asked to be assigned to the Committee in order to provide his expertise and knowledge on these important issues. After being assigned to the Committee, Rep. Condotta was the prime sponsor of the WRA’s bill to allow growlers to-go to be offered in spirits, beer and wine licensees’ restaurants. He also led the successful effort to defeat proposals to increase liquor license fees.

Rep. Richard DeBolt (R-20) House Minority Leader The role of the minority leader is never easy, but this session created particularly unique challenges for Rep. DeBolt. Often the role of the minority leader is to simply create a sounding board for the principals important to his/her members, and to look ahead to upcoming elections. But Rep. DeBolt had some unique opportunities this session to demonstrate leadership and achieve some very positive outcomes. First,

Rep. Charles Ross (R-14) and Rep. Richard DeBolt (R-20) he assembled a great team of ranking members to lead their caucus in the policy committees. The number of bi-partisan outcomes in many policy areas is reflective of the skill and ability of the team that DeBolt assembled.

Additionally, as the critical unemployment insurance and workers’ compensation issues evolved in the session, DeBolt positioned the caucus to (1) maintain a focus on those outcomes that would assist in generating business activity in the state and, (2) work with the majority party in a constructive, problem-solving manner. It worked—Rep. DeBolt’s wise positioning of his caucus on these and other important issues created an environment that gave business concerns relevance throughout the session.

The WRA also acknowledges the keen interest of Rep. DeBolt’s leadership team on hospitality industry issues and his ongoing concern for the vitality of this and other businesses in Washington state.

Senate: Sen. Janéa Holmquist Newbry (R-13) Sen. Holmquist Newbry has emerged as a thoughtful, passionate and knowledgeable leader in the Senate on labor, workforce and commerce issues. Sen. Holmquist Newbry was recognized last year as a Hero, and her work this year on behalf of the business community and restaurateurs is deserving of recognition again.

Sen. Holmquist Newbry is the ranking minority member of the Senate Labor, Commerce and Consumer Protection Committee, which has jurisdiction over unemployment insurance, workers’ compensation and liquor related issues. Her work on unemployment Sen. Janéa Holmquist Newbry (R-13) insurance and workers’ compensation set the stage for successful outcomes on both complicated issues. She led the effort in the Senate to reach an agreement on lowering unemployment insurance taxes and reached out across the aisle to gain support for the approach from a large number of Senate Democrats.

Not only was her work successful on unemployment insurance, but she used a similar approach to pass legislation authorizing voluntary settlements in Washington’s workers’ compensation system.

That work set the stage for the ultimate outcome on workers’ compensation, which, over time, will benefit every employer in Washington state.

Sen. Doug Ericksen (R-42) Sen. Ericksen, who is serving his first term in the state Senate after a number of terms in the House, proved to Heroes continued on page 30

Sen. Doug Ericksen (R-42) July 2011 | 19

Special session continued from page 16 in 1995 to fund the construction of the stadiums with temporary taxes should be honored and that the food and beverage tax should be allowed to expire. In the end, these arguments prevailed. The votes did not exist in the Senate to extend the temporary taxes.

Accordingly, the 0.5% tax on food and beverage sales in King County will expire when the SAFECO Field bonds are retired at the end of this year.

Workers’ compensation package addresses future rate increases Reform of Washington’s workers’ compensation system evolved into a “go home” issue for the Legislature because of bi-partisan pressure to achieve reform and, ultimately, the insistence of Gov. Gregoire that the Legislature take action. Here’s why:

WIN

The workers’ compensation

funds are depleting at an alarming rate. Washington employers received an average 7.6% rate increase in 2011; however, double digit future rate increases are projected just to keep the funds solvent.

Approximately 8% of the claims drive a very high proportion of the costs in the system. These are long term claims that often end up becoming permanent pensions.

A group of bi-partisan lawmakers aligned around the need for serious reform of the system with two goals in mind: 1.) reverse the trajectory of escalating rate increases on employers, and 2.) restore solvency to the workers’ compensation funds.

Although it was difficult, the Legislature and governor responded with a package of policy changes that should help alleviate large increases in future rates, assist workers in getting necessary care and move toward simplifying the system. The package includes: Medical provider networks—The Legislature reached agreement on SB 5801, to establish a single statewide provider network for treatment of injured workers.

Many details will be worked out in rulemaking, but the policy guidance is to have employees injured on the job seek medical treatment from established and recognized medical provider networks. Accordingly, even though an injured worker may have a first visit with a non-network provider, if the injury is certified as a workers’ comp injury, the employee must choose a provider from within the network who subscribes to

20 | www.WRAhome.com

certain treatment guidelines and best practices. It is estimated this change alone will save the state about $219 million over the next five years.

Settlement Agreements—The most controversial element of the workers’ compensation package was authorizing workers to voluntarily enter into settlement agreements on their claims. One of the reasons that so many claims become full time pensions in Washington is that workers don’t have this option. Despite vigorous opposition from organized labor, the Senate passed a bill during the regular session authorizing settlements.

After protracted negotiations during the special session, HB 2123 passed, allowing voluntary structured settlements under certain conditions.

Additionally, the bill contains these important features: Provides for Sen. Ed Murray (D-43) and Rep Ross a 50% wage Hunter (D-48) subsidy to employers who bring injured employees back to work in light duty or transitional work. Doing so does not impact an employer’s experience rating.

Requires completion of an independent study of occupational disease claims.

Suspends cost of living increases for one year.

Creates a “rainy day fund” to help mitigate future premium increases by capturing excess reserves.

Directs the Joint Legislative Audit & Review Committee (JLARC) to audit state fund claims management, including an analysis of Retro vs. non-Retro claims management. The report is due on June 30, 2015, with progress reports due by Dec. 1, 2012 and 2013.

Increases safety and health investment grants to organizations applying for prevention of workplace injuries, illness and fatalities; creation of early return-to-work programs and reduction of longterm disability claims.

The entire package of reforms is estimated to save the workers’ comp system about $519 million in 2012 alone and $1.1 billion between 2012-2015. 

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House of Repres Bill Number 2123 5566 5181 5501 1087 1091 1227 1728 5788 entatives WRA’s Position S S S S S S S S S Voting Records Senator Party District Counties Served Votes % House of Representatives Baumgartner, Michael R 6 Spokane Y VotingY Records Y Y Y Y Y Y Y 100 Baxter, Jeff R 4 Spokane Y Y Y Y N ** Y Y Y 88 Becker, Randi R 2 Pierce, Thurston Y Y Y Y Y Y Y Y Y 100 Benton, Don R 17 Clark N Y EBill Number Y E Y Y Y Y 86 2078 2123 Represe Brown, Lisa D 3 Spokane Y Y Y Position Y Y Y YBill Number Y Y 100 5181 WRA’s ntative Party 5501 2078 2123 5181 5501 1087 1091 1227 1728 5788 1087 District Counties O 1091 Ahern, John 1227 1728 Carrell, Mike R 28 Pierce Y Y E Y N YS Y Position Y 88 S Served WRA’s SY O R 5788 S S S S S 6 S S S SS Spokane Chase, Maralyn D 32 Alexande King, Snohomish N Representative N Y Y N Y Y Y Y 67 S r, Gary Party District Counties Served S R Votes S Votes N 20 Lewis, % YY Conway, Steve D 29 Anderso Piercen, Glenn N NAhern, Y YR Y Y 78 Thurston YY John Spokane YY R Y Y NN N N6 5Y King E Y %Y Y YY 88 YN Angel, Jan Delvin, Jerome R 8 Benton Y Y YR N Y 78 E Alexander, YY Gary 20 Lewis, Thurston YY YY R Y Y YN NN E 26Y Kitsap, Y 88Y Y Y Y 89 YY Eide, Tracey R 30 Appleton King , Sherry N Pierce Y YR Y Y 89 Y Anderson, EY Glenn King YE EY D Y E YN NE E5 23Y Kitsap Y 89Y Y Y Y78 83 YN Ericksen, Doug D 42 Armstron Whatcom Y Angel,YJan YR N Y Y g, Mike YY Kitsap, YY Pierce YY R Y Y YE EE Y26 12Y Chelan, Y 83Y Y Y Y89 100 EY Asay, Katrina Fain, Joe D 47 King Y Douglas* Y Y N Y Y Y Appleton, YY Sherry D 23 Kitsap Y Y R Y E Y YY Y Y N 30N King N Y 100Y Y Y Y78 88 YY Fraser, Karen D 22 Bailey, Thurston Y Y Y Y Y Barbara Armstrong, Mike YY R Chelan, YY Douglas* Y Y R Y Y YN NN N 12 10 Y Island, Y 88 Y Y Y78 Y 89 YY Billig, Andy Skagit* Hargrove, James D 24 Clallam, Grays Harbor* Y Y Y Y N Y N Y Asay, Y Katrina R 30 King Y Y D Y Y YN N N Y N 3 N Spokane Y 89 Y Y Y78 Y 89 YY Blake, Brian Harper, Nick D 38 Snohomish N Barbara Y Y Y Y Y Bailey, Y Y R Island, YY Skagit* Y Y D Y Y Y N 89 Y N N Y 10 N 19 Cowlitz, Y Y Y100 Y 89 Hatfield, Brian R 19 Buys, Cowlitz, Grays Harbor* Y YBillig, Y Harbor* Y Y Y Y Y Grays Vincent Y Y Andy D Spokane YY Y Y R N Y Y Y 89 Y Y Y Y 3 42 Whatcom Y Y Y100 Y Y Y 78 Haugen, Mary Margaret R 10Carlyle, Island, Skagit* D Y YBlake, Brian Y Y Y Y Reuven Y Y D Y Y Y Y Y YY Y Y Y Y 78 Y N 19 YCowlitz, Grays Harbor* 36 King Y Y Y 100 Y 89 Hewitt, Mike D 16Chandler Benton, Columbia* Y Y Vincent Y Y Y Y , Bruce Y Y Buys, RY Y Y Y Y N NY R Y Y Y N 89 Y Y 42 YWhatcom 15 Clark, Klickitat* Y Y Y 89 Hill, Andy R 45 Chopp, King Frank Y Carlyle, Y Reuven Y N Y Y Y 89 Y Y Y Y Y DY Y Y D Y Y Y 89 Y Y Y Y Y N 36 YKing 43 King Y Y Y 89 Hobbs, Steve R 44 Clibborn Snohomish Y Chandler, Y Y Y E Y Y Y Y 100 Y , Judy Bruce RY Y Y D Y Y N 89 Y N N Y Y Y 15 YClark, Klickitat*Y 41 King Y Y Y 89 Holmquist Newbry, Janéa D 13 Cody, Grant, Kittitas*D Y Y Y N Y Y Y Y Y Y 89 Y Chopp, Eileen Frank DY Y Y Y Y 89 Y Y Y Y Y Y Y 43 YKing 34 King Y Y Y Condotta 89 Honeyford, Jim D 15 Clark, Klickitat* Y Y Y Y N Y Y Y Y Y 89 Y Clibborn, , Cary Judy DY R Y Y 89 Y Y Y Y Y Y Y Y Y 41 Y King 12 Chelan, Y Y Y 89 Kastama, Jim D 25Crouse, Pierce Y YDouglas* Y Y Y Y Y Y Y Y 100 Y Cody, Larry Eileen DY N 34 King R Y Y 89 Y Y Y Y Y Y Y Y 4 Y E Dahlquis Y 88 t, Cathy Keiser, Karen R 33 King NSpokane N Y Y Y Chelan, Y Y Douglas* Y Y Y Y 78 Y Condotta, Cary RY E 12 R Y E Y Y N 88 Y N N Y Y 31 King, Pierce Y Dammei Y Y 89 er, Bruce Kilmer, Derek D 26 Kitsap, PierceR Y Y Y Y E Y E Y Y 100 Y Crouse, Larry RY N 4Y Y Spokane N E Y Y E Y E Y N 89 Y 25 Pierce Y Darneille E Y 80 , Jeannie King, Curtis D 14 Yakima Y Dahlquist, Y Y Y Y King, Y Pierce Y Y Y Y 100 Y Y Cathy RY N 31 D Y N N Y Y E Y Y N 80 Y 27 Pierce Y Y DeBolt, Y 89 Y Richard Kline, Adam R 37 King N Dammeier, N Y Y Y Pierce Y Y Y Y E Bruce RY Y 25 R NY Y 75 Y N Y Y Y Y N 89 Y 20 Lewis, Thurston Y Y Y 89 Kohl-Welles, Jeanne D Dickerso 36 n, Mary King Lou Y Darneille, N Jeannie Y Y Y Pierce Y Y YY Y 89 Y DY N 27 D YY Y Y Y Y Y Y Y Y 89 Y 36 King Y Y Dunshee Y 89 Litzow, Steve R 41 King Y DeBolt, Y Richard Y Y N Y Lewis, E Y Thurston YY Y Y 88 Y , Hans R 20 Y D N Y N Y Y Y Y N 89 Y 44 Snohom Y Y Y Y 89 ish McAuliffe, Rosemary D 1 Eddy, King,Deb Snohomish N N Mary Lou Y Y N KingY Y YY Y 78 Y Dickerson, DY Y 36 D YYY N Y Y Y Y Y Y 89 48 King Y Y Y Y Fagan,Ferry, 78 Morton, Bob D 7 Lincoln* Y Dunshee, Y Y Y Y Snohomish YY NY Y 89Y Susan Hans DY Y 44 R Y YY Y Y Y Y Y Y 9 Y 78 Y Y Adams, Y Y 89 Asotin Murray, Ed D 43 Finn, KingFred N NEddy, Deb Y Y Y KingY Y YY Y 78Y DYN 48 D Y YY Y Y Y Y 35 Grays Harbor, Y Y Y 89 Y Y Y Fitzgibbo Y Y 89 Nelson, Sharon D 34 King N N Kitsap* E YY Asotin YY Y 75Y n, Joe Fagan, Susan RYY 9Y Adams, D N YY Y N Y Y 34 King Y Y N89 Y E Y Y Frockt,Chelan, 88 E Parlette, Linda Evans R 12 Y YFinn, Fred Y YY Grays YY Harbor, YY Kitsap* Y Y 100 David Douglas* DYY 35 D YY Y Y Y Y 46 King Y Y Y88 Y Y N Y 78 Pflug, Cheryl R Goodma 5 n,King Y Fitzgibbon, Y N NN KingYN YY Y 78Y Roger Joe DYY 34 D YYY N Y NN 45 King Y Y Y78 Y Y Y Y 67 Green, Prentice, Margarita D 11 King E N E YY KingYY YY Y 86Y Tami Frockt, David DYY 46 D YYY Y Y YY 28 Pierce YY Y 67 Y Y Y N Y Haigh, 89 Y Pridemore, Craig D 49 Clark Y Goodman, Y Y Y KingYN N Y 89 Kathy Roger DY 45 Y D YYY N Y NY Y 35 Grays Harbor, YY Y89 Y Y Y Y Y 67 Haler,San Y Y Ranker, Kevin D 40 Juan, RSkagit* N N Kitsap* Y Y 78 Larry Green, Tami DYY 28Y Pierce YY YYY Y Y YY 8 YY Y67 Y Y Benton Y Y Y 89 Y YY Harbor, Regala, Debbie D Hargrove 27 ,Pierce Y N Y N 78 Mark Haigh, Kathy DNY 35Y Grays EY Kitsap* R YYY Y Y YY 47 King EY Y 89 Y Y Y Y Y 88 Harris,King, Y YY Roach, Pam R 31 Y Y Y N 78 Paul Pierce Haler, Larry RNY YY 8N Benton R NY Y N Y YY 17 Clark YY N 88 Y Y Y Y Y 89 Y EY Rockefeller, Phil D Hasegaw 23 a,Kitsap Y Hargrove, Y Y Y Y 100 Bob Mark RNY YY 47Y King D N N Y EY 11 King YY N 89 Y Y Y N Y Y 88 Y YN Schoesler, Mark R 9Hinkle, Adams, Y Y Y Y 89 Harris, Bill Asotin* Paul RYY YY 17Y Clark R NY N N YY 13 YY N 88 Y Y Y N Y Y 78 Hope, Y88 NY Sheldon, Tim D 35 Grays Kitsap* Grant, Y Kittitas* Y E Y Y Mike Harbor, Hasegawa, Bob DY YY 11N King R Y N N NY 44 Snohom YY Y 78 Y YY Y Y YE Y Y 67 Y80 Y E Kittitas* Shin, Paull D Hudgins, 21 Zack Snohomish E ish YHinkle, Bill E Y N Y R Y E 13 Grant, D N Y N Y N Y 11 King E N 67 Y Y Y Y Y Y Y 88 Hunt, Sam Y89 YY Stevens, Val R 39 King, Skagit* Y Y Y Y Y Hope, Mike Y YY 44N Snohomish D N Y YR 22 Thurston Y YY N 88 Y YN E NY Y Y 88 E100 YY Hudgins, Swecker, Dan R Hunter, 20 Ross Lewis, Thurston Y Y Y Zack YY N Y 11 King D Y Y Y N YD Y 48 King Y N 88Y Hurst, Christop Y YY Y N Y Y 67 Y100 Y Y her Hunt, Sam Tom, Rodney D 48 King E Y YY Y Y 22Y Thurston D Y Y Y N YD Y 31 King, YPierce Y 67Y Y YY Y Y Y Y 78 Jacks, Y 78 Y Y Jim Hunter, White, Scott D 46 King N Y Ross YY Y Y 48Y King D YY Y Y YY Y Y ND Y 49 Clark N 78Y Y Y Y Y Y 89 Y Y Pierce Hurst, Christopher Zarelli, Joseph R Jinkins, 18 Laurie Clark, Cowlitz Y A **D Y Y Y100 YY Y Y Y Y 31Y King, D YY Y 27 PierceY 89Y Y YN ** Y Johnson, Norm Y Y 100 Y ** Jacks, Jim Y** ** 49 Clark R = Supports * More counties listed on WRAhome.com = Opposes Y** 100 ** ** WRA’s position YD 14 Yakima ** Y Y** Y YWRA’s Nposition Y ** 100 Kagi, Ruth Y Jinkins, Laurie N D YN 27 Pierce Y D **Y 100Y Y Y **?

32 King, E = Excused Y YY Y Y Y Y Kelley, Troy A = Absent Snohom 78 Y Y Johnson, ish Norm Y R YY 14 D Yakima Y YY N Kenney, Phyllis Y 28 Pierce 78N Y YN Y Y Y Y 89 Gutierrez Y Kagi, Ruth N D Y JulyY2011 |Y Y23 Y Y 32 D King, Snohomish YY Y 46 King 89 Y Y Y Y Y Y Kirby, Steve Y 89 Y Y Kelley, Troy Y D YY Y 28 D Pierce YY Y Y 29 Pierce 89 Y Y N Y N Y Y Y 100 Y Kenney, Phyllis Gutierrez YY Y 46 YKing Y Y 100Y Y Y D N * More countie 24 | www.WRAhome.co Y Y Y N Y Y Y 78 Y s listed onKirby, Steve YN D 29 NPierce Y m Y Y 78 Y Y WRAho N Y Y Y **? me.com Y Y Y 67 Y Y = Supporlisted Y * More counties ts WRA’s 67 on WRAhome.com position = Supports WRA’s = Opposes WRA’s position position = Oppose 24 | www.WRAhome.com * A = Absent s WRA’s *?

The following voting record shows how legislators voted on important WRA legislation during the 2011 regular and special sessions of the Legislature. Voting records can be useful tools in understanding how lawmakers vote on specific issues and their tendencies in some general areas (e.g. – business, environment, labor, etc.), but it is important to understand how these records are developed, what they contain and how to interpret them.

How was this voting record developed?

The voting record includes all legislation the WRA sponsored, legislation the WRA took a leadership role in passing or defeating and key business bills the WRA worked with business coalitions to support or defeat. A description of each of the bills included in the voting record can be found in earlier sections of this legislative review or below.

How is the voting record presented?

The voting record is shown in two ways in order to draw attention to a number of critically important votes that impact the WRA and the entire business community. : Traditional scoring—legislators’ votes on specific bills are tallied, and the percentage of times they voted with the WRA’s position is shown. Because the WRA succeeded in passing a large number of bills with very strong, nearly unanimous votes, the overall scores across all lawmakers are high.

Colors—The voting record is also presented visually, 22 | www.WRAhome.com

E = Excused

A = Absent

position E = Excused

with shades of green and red depicting legislators’ votes for, or against, the WRA’s position. This creates the opportunity to distinguish some critically important votes on workers’ compensation reform, a challenge to I-1053 (the requirement for a two-thirds vote to impose new or increased taxes), unemployment insurance reform and debt reduction. Because of the strategic importance of these bills, these votes are shown with brighter colors, so that one can readily see how lawmakers voted on these vital, controversial issues.

What bills are contained in the voting record?

All of the bills included in the voting record are described in earlier pages, except the following: HB 2078—This bill was essentially a challenge on the floor of the House to I-1053, which requires a two-thirds vote of both legislative chambers to enact new or increased taxes. The bill would have led to increased taxes on banks to fund early childhood education programs. Although it received a majority vote on the floor of the House, it failed to overcome the two-thirds requirement.

SB 5566—This bill made major reforms to Washington’s workers’ compensation system by authorizing voluntary settlement agreements for certain long term claims. The bill passed the Senate and set the stage for HB 2123 to pass in the final days of the special session. The voting record includes votes on both bills since each vote was of vital importance to achieving meaningful reform.

HB 1087—The WRA opted to include the state operating budget bill in this year’s voting record for a number of reasons. First, the budget moves the state in the direction of a sustainable budget, because it does not rely on onetime federal money or tax increases and limits the number of transfers used to balance the budget. Secondly, it includes a key provision lowering liquor prices to licensees, a priority for the WRA’s licensee members. And finally, it was developed in a bi-partisan fashion in the Senate.

Although House Republicans opted to oppose the budget because it did not align with their priorities, it is a budget that sets a positive course for the state’s fiscal direction.

3 rd Re Wo ading rke rs’ & F i n com al P pen assa 3 rd sat Rea ion ge d Wo sys rke i n g & tem rs’ com Final P a p s ens 3 rd atio sage Re n Sta ading te d ebt & Fina l st a 3 rd tuto Passa R ry l g Tax eadin imi e atio g t n o & Fin f em a plo l Pass 3 rd R yee ag e me e Ope ading a ls ratin & Fin a g2 009 l Pass a -11 3 rd R & 2 ge e 011 Une ading -13 & mpl oym Final P en t ass a insu 3 rd R ranc ge e e pr Res ading og. & taur ant Final P cor a s s kag 3 rd R e fe age e es Ser ading & vice anim Final P als/ assa g bus 3 rd R i n es e ead ses ing Liqu & or l aws Final Pas sag e

Senate Voting Records

Bill Number 2123 WRA’s Position S Senator Party District Counties Served Baumgartner, Michael R 6 Spokane Y Baxter, Jeff R 4 Spokane Y Becker, Randi R 2 Pierce, Thurston Y Benton, Don R 17 Clark N Brown, Lisa D 3 Spokane Y Carrell, Mike R 28 Pierce Y Chase, Maralyn D 32 King, Snohomish N Conway, Steve D 29 Pierce N Delvin, Jerome R 8 Benton Y Eide, Tracey D 30 King Y Ericksen, Doug R 42 Whatcom Y Fain, Joe R 47 King Y Fraser, Karen D 22 Thurston N Hargrove, James D 24 Clallam, Grays Harbor* Y Harper, Nick D 38 Snohomish N Hatfield, Brian D 19 Cowlitz, Grays Harbor* Y Haugen, Mary Margaret D 10 Island, Skagit* Y Hewitt, Mike R 16 Benton, Columbia* Y Hill, Andy R 45 King Y Hobbs, Steve D 44 Snohomish Y Holmquist Newbry, Janéa R 13 Grant, Kittitas* Y Honeyford, Jim R 15 Clark, Klickitat* Y Kastama, Jim D 25 Pierce Y Keiser, Karen D 33 King N Kilmer, Derek D 26 Kitsap, Pierce Y King, Curtis R 14 Yakima Y Kline, Adam D 37 King N Kohl-Welles, Jeanne D 36 King Y Litzow, Steve R 41 King Y McAuliffe, Rosemary D 1 King, Snohomish N Morton, Bob R 7 Ferry, Lincoln* Y Murray, Ed D 43 King N Nelson, Sharon D 34 King N Parlette, Linda Evans R 12 Chelan, Douglas* Y Pflug, Cheryl R 5 King Y Prentice, Margarita D 11 King E Pridemore, Craig D 49 Clark Y Ranker, Kevin D 40 San Juan, Skagit* N Regala, Debbie D 27 Pierce Y Roach, Pam R 31 King, Pierce Y Rockefeller, Phil D 23 Kitsap Y Schoesler, Mark R 9 Adams, Asotin* Y Sheldon, Tim D 35 Grays Harbor, Kitsap* Y Shin, Paull D 21 Snohomish E Stevens, Val R 39 King, Skagit* Y Swecker, Dan R 20 Lewis, Thurston Y Tom, Rodney D 48 King Y White, Scott D 46 King N Zarelli, Joseph R 18 Clark, Cowlitz Y

5566 S

5181 S

5501 S

Y Y Y Y Y Y N N Y N Y Y N Y N Y Y Y Y Y Y Y Y N Y Y N N Y N Y N N Y Y N Y N N Y Y Y Y Y Y Y Y N Y

Y Y Y E Y E Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y E Y N E Y Y Y Y Y Y E E Y Y E Y A

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

* More counties listed on WRAhome.com = Supports WRA’s position * * Did not serve full term in office A = Absent E = Excused

1087 1091 S S Votes Y Y N ** Y Y E Y Y Y N Y N Y Y Y N N Y Y N N N Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y E N Y Y N Y Y Y Y Y Y Y Y Y Y Y Y N E Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y Y N Y Y Y Y N N Y E E N Y Y Y Y Y Y Y Y Y

1227 S

1728 S

5788 S

Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y N Y Y Y Y Y Y N Y Y Y Y Y

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y E Y Y Y Y Y Y Y Y Y Y Y N N Y Y Y Y Y Y Y Y Y

Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

= Opposes WRA’s position

% 100 88 100 86 100 88 67 78 78 89 78 89 78 78 78 100 100 100 89 100 89 89 100 78 100 100 75 89 88 78 89 78 75 100 78 86 89 78 78 78 100 89 88 80 89 100 100 78 100

July 2011 | 23

Fin al Cha Passa g llen ge e to I Fin -10 al 53 Wo Passa rke g e rs’ com Fin pen al P sat ion Sta assa te d sys ge tem ebt sta Fin tuto al P ry l Tax assa imi atio ge t no f em Fina plo ye e lP Ope assag me als r a tin e g2 0 Fina 09-1 lP 1& Une assag 201 mpl e 1-13 oym ent insu Fina ranc lP e pr Res assag taur og. e ant c o r k ag Fina lP e fe es Ser assag vice e anim als/ Fina bus lP ines Liqu assag ses e or l aws

House of Representatives Voting Records

Bill Number 2078 WRA’s Position O Representative Party District Counties Served Ahern, John R 6 Spokane N Alexander, Gary R 20 Lewis, Thurston N Anderson, Glenn R 5 King E Angel, Jan R 26 Kitsap, Pierce E Appleton, Sherry D 23 Kitsap Y Armstrong, Mike R 12 Chelan, Douglas* N Asay, Katrina R 30 King N Bailey, Barbara R 10 Island, Skagit* N Billig, Andy D 3 Spokane Y Blake, Brian D 19 Cowlitz, Grays Harbor* Y Buys, Vincent R 42 Whatcom N Carlyle, Reuven D 36 King Y Chandler, Bruce R 15 Clark, Klickitat* N Chopp, Frank D 43 King Y Clibborn, Judy D 41 King Y Cody, Eileen D 34 King Y Condotta, Cary R 12 Chelan, Douglas* N Crouse, Larry R 4 Spokane E Dahlquist, Cathy R 31 King, Pierce N Dammeier, Bruce R 25 Pierce N Darneille, Jeannie D 27 Pierce Y DeBolt, Richard R 20 Lewis, Thurston N Dickerson, Mary Lou D 36 King Y Dunshee, Hans D 44 Snohomish Y Eddy, Deb D 48 King Y Fagan, Susan R 9 Adams, Asotin N Finn, Fred D 35 Grays Harbor, Kitsap* Y Fitzgibbon, Joe D 34 King Y Frockt, David D 46 King Y Goodman, Roger D 45 King Y Green, Tami D 28 Pierce Y Haigh, Kathy D 35 Grays Harbor, Kitsap* Y Haler, Larry R 8 Benton N Hargrove, Mark R 47 King N Harris, Paul R 17 Clark N Hasegawa, Bob D 11 King Y Hinkle, Bill R 13 Grant, Kittitas* N Hope, Mike R 44 Snohomish N Hudgins, Zack D 11 King Y Hunt, Sam D 22 Thurston Y Hunter, Ross D 48 King Y Hurst, Christopher D 31 King, Pierce N Jacks, Jim D 49 Clark ** Jinkins, Laurie D 27 Pierce Y Johnson, Norm R 14 Yakima N Kagi, Ruth D 32 King, Snohomish Y Kelley, Troy D 28 Pierce N Kenney, Phyllis Gutierrez D 46 King Y Kirby, Steve D 29 Pierce Y

24 | www.WRAhome.com

2123 S

5181 S

5501 S

Y Y Y Y E Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y N Y N Y Y Y Y N N Y Y N N Y Y ** Y Y Y Y N N

Y Y E Y Y Y Y Y Y Y Y Y Y Y Y Y Y E Y Y Y Y Y Y Y Y Y N Y N Y Y Y E Y N Y Y Y Y Y Y ** N Y Y Y Y N

Y Y E Y Y Y Y Y Y Y Y Y Y Y Y Y Y E Y Y Y Y Y Y Y Y Y Y Y Y Y E Y Y Y Y E Y N Y Y Y ** Y Y Y Y Y Y

1087 1091 S S Votes N Y N Y N Y E Y Y Y N Y N Y N Y Y Y Y Y N Y Y Y N Y Y Y Y Y Y Y N Y N Y N Y N Y Y Y N Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y N Y N Y N Y Y Y N Y N Y Y Y Y Y Y Y Y Y ** Y Y Y N Y Y Y Y Y Y Y Y Y

* More counties listed on WRAhome.com = Supports WRA’s position * * Did not serve full term in office A = Absent E = Excused

1227 S

1728 S

5788 S

E Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y E Y Y Y Y Y Y Y Y Y Y Y E Y Y Y Y Y Y Y Y Y Y Y

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y E Y E Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y ** Y Y Y Y Y Y

% 88 89 83 100 88 89 89 89 78 89 89 89 89 89 89 88 89 80 89 89 89 89 78 89 89 88 78 67 89 67 89 88 89 88 78 67 88 88 67 78 89 100 100 78 89 89 100 78 67

= Opposes WRA’s position

Representative Party Klippert, Brad R Kretz, Joel R Kristiansen, Dan R Ladenburg, Connie D Liias, Marko D Lytton, Kristine D Maxwell, Marcie D McCoy, John D McCune, Jim R Miloscia, Mark D Moeller, Jim D Morris, Jeff D Moscoso, Luis D Nealey, Terry R Orcutt, Ed R Ormsby, Timm D Orwall, Tina D Overstreet, Jason R Parker, Kevin R Pearson, Kirk R Pedersen, Jamie D Pettigrew, Eric D Probst, Tim D Reykdal, Chris D Rivers, Ann R Roberts, Mary Helen D Rodne, Jay R Rolfes, Christine D Ross, Charles R Ryu, Cindy D Santos, Sharon Tomiko D Schmick, Joe R Seaquist, Larry D Sells, Mike D Shea, Matt R Short, Shelly R Smith, Norma R Springer, Larry D Stanford, Derek D Sullivan, Pat D Takko, Dean D Taylor, David R Tharinger, Steve D Upthegrove, Dave D Van De Wege, Kevin D Walsh, Maureen R Warnick, Judy R Wilcox, J.T. R Wylie, Sharon D Zeiger, Hans R

District 8 7 39 29 21 40 41 38 2 30 49 40 1 16 18 3 33 42 6 39 43 37 17 22 18 21 5 23 14 32 37 9 26 38 4 7 10 45 1 47 19 15 24 33 24 16 13 2 49 25

Fin al Cha Passa g llen ge e to I Fin -10 al 53 Wo Passa rke g e rs’ com Fin pen al P sat ion Sta assa te d sys ge tem ebt sta Fin tuto al P ry l Tax assa imi atio g t no e f em Fina plo ye e lP Ope assag me als r a tin e g2 009 Fina -11 lP &2 Une assag 011 mpl e -13 oym ent insu Fina ranc lP e pr Res assag taur og. e ant cor Fina k ag lP e fe es Ser assag vice e anim als/ Fina bus lP ines Liqu assag ses e or l aws

House of Representatives Voting Records

Bill Number 2078 WRA’s Position O Counties Served Benton N Ferry, Lincoln* N King, Skagit* N Pierce Y Snohomish Y San Juan, Skagit* Y King Y Snohomish Y Pierce, Thurston E King N Clark Y San Juan, Skagit* Y King, Snohomish Y Benton, Columbia* N Clark, Cowlitz N Spokane Y King Y Whatcom N Spokane N King, Skagit* N King Y King Y Clark Y Thurston Y Clark, Cowlitz N Snohomish Y King N Kitsap Y Yakima N King, Snohomish Y King Y Adams, Asotin* N Kitsap, Pierce Y Snohomish Y Spokane N Ferry, Lincoln* N Island, Skagit* N King Y King, Snohomish* Y King Y Cowlitz, Grays Harbor* Y Clark, Klickitat* N Clallam, Grays Harbor* Y King Y Clallam, Grays Harbor* Y Benton, Columbia* N Grant, Kittitas* N Pierce, Thurston* N Clark Y Pierce N

2123 S

5181 S

5501 S

Y Y Y N N N Y Y E N Y Y N Y Y N N Y Y Y Y E N N Y N Y Y Y N N Y Y N Y Y Y Y N Y Y Y Y N Y Y Y Y N Y

Y Y Y Y N Y Y N E Y Y Y N Y Y N Y E Y Y N Y Y N Y Y Y Y Y N Y Y Y N Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y E Y ** Y

1087 1091 S S Votes N Y N Y N Y Y Y N Y Y Y Y Y Y Y E Y Y Y Y Y Y Y Y Y N Y N Y Y Y Y Y N Y N Y N Y Y Y Y Y Y Y Y Y N Y Y Y N Y Y Y N Y Y Y Y Y N Y Y Y Y Y N Y N Y N Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y Y N Y N Y N Y ** ** N Y

1227 S

1728 S

5788 S

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y E Y Y ** Y

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y ** Y

Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y ** Y

% 89 89 89 78 56 78 89 78 100 89 89 89 67 89 89 67 78 88 89 89 78 88 78 67 89 78 89 89 89 67 78 89 89 67 89 89 89 89 78 89 89 89 78 78 89 88 88 89 33 89

July 2011 | 25

Special session continued from page 11 This license was created for businesses that wanted to serve liquor, but did not want to operate as a restaurant or meet the minimum food requirements.

Additionally, the food requirements for an establishment to receive a spirits, beer and wine license were removed from statute and instead will be developed in rule by the Liquor Control Board. As business models change and adapt, these food requirements can be adjusted at the board level, rather than needing a legislative change in the future.

Service animals defined

For years, the grocery and restaurant industries have tried and failed to pass laws reforming the state’s regulations around service animals. The definition of what a service animal is has been vague and confusing, resulting in daily issues of customers bringing in pets of all kinds (snakes, cats, parrots and monkeys, among others) and claiming the animal provides some type of service to the person’s disability, including simply comforting them.

WIN

With this year’s passage of HB 1728, which the grocery, restaurant and disability communities all supported, Washington’s definition of a “service animal” will now mirror the federal government’s recently adopted definition of “any dog that is individually trained to do work or perform tasks for the benefit of an individual with a disability, including a physical, sensory, psychiatric, intellectual or other mental disability.” The only exception is for miniature horses which, if professionally trained, also will be recognized as service animals. The law becomes effective in mid-July, and the WRA will be communicating with all members regarding the specifics of the new law, as well as provide resources for understanding and referencing the law.

Lyle Hildahl, WRA Education Foundation director and leader in food safety training, and Josh McDonald delivering testimony 26 | www.WRAhome.com

The WRA would like to thank prime sponsors in the House and Senate, Rep. Deb Eddy (D-48) and Sen. Nick Harper (D-38th).

Pursuing new options for food worker card training

One of the most frequent food inspection violations in every city/county health department jurisdiction is nonexistent or invalid food worker cards. There are many reasons for this, but it is largely because only local health departments (or an outside contractor if that health department approves) can offer food worker card training, testing and certification. Local health departments try their best but have limited resources and cannot always meet the new and reissuing food worker card demands of the foodservice industry. The WRA’s Education Foundation, as the Association’s food safety leaders, recognized this need and stepped forward this session to offer a solution.

HB 1583, which would have opened up the food worker card training market to the State Department of Health approved privately run food safety programs while leaving the current training programs offered by our local health departments completely intact. HB 1583 received a hearing in the House Health Care and Wellness committee but was not voted out of committee before the required cutoff date. Lyle Hildahl, the WRA Education Foundation director and leader in food safety training, gave a passionate and compelling testimony on the need for more options in basic food safety training for our employees. Although the WRA is disappointed that HB 1583 did not get a chance to become a larger public debate in 2011, the WRA already is working on how to position the bill for success in 2012. The GA team would like to thank Rep. Derek Stanford (D-1st) for his willingness to be our prime sponsor for HB 1583.

Street utility tax bill fails to advance this session

DEFENDED

For the past several years the Association of Washington Cities has come to Olympia asking the Legislature to give local governments the option to create a new utility that would tax residents, governments and businesses based on the amount of trips generated in a given time frame. The Association of Washington Cities’ introduced HB1929, legislation giving local governments the ability, by a vote of the people, to institute a street maintenance utility on residents, businesses and government entities. The bill was introduced and heavily debated in the House Transportation Committee and passed out of that committee, but did not move beyond the House Rules Committee prior to the end of the legislative session. The business community was united in opposition to the bill, and many showed up during the committee hearing on the bill to speak to the danger of adding new costs to businesses during this recession. 

Feeding dreams.

Building futures.

Sysco Food Services “One Stop & Shop” Groceries • Desserts • Fresh Produce • Frozen Food • Fresh & Frozen Meats • Fresh & Frozen Poultry • Fresh & Frozen Seafood • Equipment & Supplies • Chemicals & Janitorial Supplies • Paper Goods / To Go Containers

BEvEraGE ProGraMS - Coffee - Juice - Tea & Cocoa

CHEF ELI DALAGER

• Sous Chef at Harbor Crest Retirement Community • American Culinary Federation 2011 Chef of the Year Washington state • Prostart Graduate and Industry Volunteer

- Dish Machine - Bar / Glass Machine - Laundry Services

Value Added Services -

Credit Card Processing Secret Shopper Pest Control Business insurance - Consulting & Menu analysis restaurant Design operations Preview - Menu Design -

Chef Eli is a graduate of the Ferris High School ProStart program in Spokane. According to Eli he didn’t have a lot of direction at the time he started ProStart, but as soon as he was introduced to the culinary arts and was asked to compete, he was hooked.

Today he volunteers with his local ProStart program and for the WRA Education Foundation.

Complete Equipment and Service Program

WarEWaShinG ProGraM

Sysco Portland, Inc. www.syscoportland.com 503-682-8700

advertising & Marketing Point-of-Sale Machines hostess Pager Systems Labor & Food Cost review

Sysco Seattle, Inc. www.syscoseattle.com 206-622-2261 206-721-5750

Sysco Spokane, Inc. www.syscospokane.com 208-777-9511

You can feed a dream and build a future hire or mentor a ProStart student.

Visit www.wrahome.com.

July 2011 | 27

INDUSTRY CALENDAR

Visit www.WRAhome.com/calendar for a full list of events.

Training | Meetings | Events | July & August Events

Training

July 13 Aug. 3 Aug. 16 Aug. 16

July 21 Aug. 2 Aug. 8 Aug. 15 Aug. 15 Aug. 24

Webinar: New Technology, New Expectations Seattle Restaurant Alliance Afternoon Social Golf FORE! Education Toasting the Finest

ServSafe®, Tacoma ServSafe®, Seattle ServSafe®, Kent ServSafe®, Everett ServSafe®, Post Falls, ID ServSafe Alcohol Train the Trainer, Seattle

Meetings July 12 July 19 July 24

Spokane Chapter Meeting Finance Committee Meeting EF Board of Director’s Meeting

July 25 – 26

WRA Board of Director’s Meeting

Aug. 2

Executive Committee Meeting

Aug. 9

Spokane Chapter Meeting

Aug. 10

Retro Investment Workgroup

Aug. 10

Retro Trustee Meeting

NEW MEMBERS

NEW ALLIED MEMBERS

At the Station Bistro, Auburn

Bell-Anderson Insurance Andy Hoven 600 SW 39th St., Ste. 200 Renton, WA 98057-4911 425.291.5200 andyh@bell-anderson.com www.bell-anderson.com

Penny’s Salsa Inc Ryan Hershey 4718 B St. N.W. # 102 Auburn, WA 98001-1750 253.850.1856 ryan@pennyssalsa.com www.pennyssalsa.com

Bell-Anderson is a full service insurance agency helping small and medium businesses with their business, medical and personal insurance needs.

Penny’s Sales, servicing Seattle-Tacoma since 1996, provides sales, chips, guacamole, over 200 fresh cut produce items and bulk produce.

Belltown Pub, Seattle BKK Company LLC, Spokane Bogart’s Airport Way, Seattle Boom Noodle University Village, Seattle Cousins Restaurant, Cannon Beach Farrell’s Bar & Grill, Nine Mile Falls Hungry Goose Bistro, Puyallup Le Grand Bistro, Kirkland Little Caesars, Spokane Lorenzo’s Coffee & Wine House LLC, Vancouver Moose Creek Barbecue, Arlington Old School Grill, Carson Paddy Coynes Corporate, Tacoma Pastiche Wine Bar, Tacoma Peaks Frozen Custard, Seattle Pezzo Di Pazzo, Seattle Pizzeria Napoletana, Seattle Popeyes, Vancouver Rendezvous Wine & Brew LLC, Enumclaw Scotch and Vine, The, Des Moines Strenua Group, LLC Tall Timber Restaurant & Lounge, Randle Tavern Law, Seattle Wagon Wheel Cafe LLC, Tacoma 28 | www.WRAhome.com

Bell-Anderson Insurance - Spokane Neil Muller 8306 N Wall St., Ste. A Spokane, WA 99208-6169 509.465.1133 neilm@bell-anderson.com www.bell-anderson.com Bell-Anderson is a full service insurance agency helping small and medium businesses with their business, medical and personal insurance needs.

Blue Ribbon Linen Supply Dave Floyd PO Box 798 Lewiston, ID 83501-0798 208.535.8271 floydster@comcast.net Linen, uniforms, mats, dustmops, healthcare and chemical cleaning supplies.

LyfeBank Randy Ray PO Box 697 La Conner, WA 98257-0697 360.466.9100 randy@lyfesystems.com www.lyfesystems.com LyfeBank offers a new approach to healthcare for the restaurant industry.

The employer determines what they can pay to workers, not the insurance company.

Reliable Construction Cathy Nishikawa 3210 162 Pl. S.E. Bellevue, WA 98008-5739 425.865.8646 reliable-construction@comcast.net Construction.

Snapfinger Jeff Peterson 4205 158th Ave. S.E. Bellevue, WA 98006-4523 206.949.6063 jpeterson@snapfinger.com www.snapfinger.com This company is based out of Atlanta and has been around since 2003.

Company helps restaurants get new customers through on line advertising.

80% of the orders now come through mobile apps.

Xenex Merchant Services Brett Kotcher 455 Central Ave. Cedarhurst, NY 11516-2008 888.918.4409 BKotcher@goxenex.com www.goxenex.com Xenex Merchant Services is a merchant service company that specializes in cash advances. We are able to provide businesses with additional cash flow to help business owners take their company to another level.

Marketplace DOWNTOWN SEATTLE CAFÉ FOR SALE

SELLING OR BUYING?

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Contact Jean Klein, CPA. www.smallrestaurantspecialist.com or (206)795-4443

Thinking about selling or buying an existing restaurant, or adding a new location? Call Allan Boden, Sunbelt restaurant specialist at 206.229.4717, or email a.boden@sunbeltnetwork.com. Sunbelt has been serving clients since 1982 with offices nationwide. http://seattle1.sunbeltnetwork.com

CONSULTATION, PLANNING, AND CONCEPT DEVELOPMENT

Thinking about opening up a new restaurant, moving into an existing, or re-modeling? DYNAMIK will provide a complimentary initial consultation to review your project. Email Melanie@dynamikspace.com to determine a plan for your concept, design, schedule, and construction.

FREE LABOR LAW POSTERS

Take advantage of your WRA membership and get your FREE labor law posters today! Call 800.225.7166 for more information.

SERVSAFE®

The WRA Education Foundation holds ServSafe food safety courses throughout Washington. Visit www.wrahome.com/training-education/training-schedule/ for schedule information. Fee is $125 for members and includes the text, class and exam.

SERVSAFE MANAGER

ADVANCED FOOD SAFETY TRAINING

www.servsafe.com

July 2011 | 29

Heroes continued from page 19 be a true champion on some vital issues for the WRA. First, Sen. Ericksen prime-sponsored legislation to ease visitor limitations on private clubs. Although Sen. Ericksen’s bill did not receive a hearing, he skillfully worked to include the provision in SB 5788, the Liquor Omnibus Bill, which was ultimately passed and signed into law. Sen. Ericksen’s willingness to bring the issue to the forefront, and then find an appropriate legislative vehicle, demonstrates his skill and understanding of the legislative process.

Secondly, as the issues related to liquor distribution and privatization developed late in the regular and special sessions, Sen. Ericksen emerged as a key supporter and voice within his caucus for a market-based, free enterprise system. He worked to amend legislation related to liquor distribution to protect customers, including restaurants, from price increases. He also was a lead sponsor of SB 5933 to fully privatize the state’s liquor distribution and sales system.

During his tenure in the House, Sen. Ericksen proved to be a tireless champion for business. The WRA welcomes his passion and expertise and looks forward to working with him for many years to come.

Sen. Jeanne Kohl-Welles (D-36) Sen. Kohl-Welles chairs the important Labor, Commerce and Consumer Protection Committee in the Senate. All issues related to workers’ compensation, labor, unemployment insurance, liquor and consumer protection must be heard and passed from Sen. KohlWelles’ committee. Not only is her role vital on many hospitality sector issues, but this year proved even more challenging, with the House reassigning liquor-related issues to a new committee of members who were mostly new to the issues.

Accordingly, Sen. KohlWelles’s committee and her leadership were vital to anything liquorSen. Jeanne Kohl-Welles (D-36) related.

The WRA applauds Sen. Kohl-Welles’ efforts on these issues.

She sponsored the WRA’s bill on growlers to-go and to allow manufacturers of mixers to sample their products with alcohol at trade shows. She encouraged the development of SB 5788, the Liquor Omnibus Bill, that incorporated these and other important features into one piece of legislation.

She then ensured that it wended its way successfully through the Senate. Further, the WRA is grateful for Sen. Kohl Welles’ 30 | www.WRAhome.com

keen interest in the health and vitality of restaurants, and appreciates her commitment to working with the industry on these challenging issues.

In her role as chair, Sen. Kohl Welles also is the leader on the vitally important unemployment insurance and workers’ compensation issues. She listened carefully to all sides of these debates. Her support for HB 1091, the unemployment insurance reform bill, and HB 2123, to authorize voluntary settlement agreements for some workers’ compensation claims, was crucial to gaining Senate passage on both key issues.

Sen. Ed Murray (D-43) Sen. Murray, who has been a long-time champion for the hospitality industry, took on the difficult role of chair of the budgetwriting Senate Ways and Means Committee.

Early on, Sen. Murray made an important and crucial decision to reach across the aisle and work with Sen. Joseph Zarelli (R-18) to fashion a budget that both Democrats and Republicans could support. At the outset, most political pundits, Sen. Ed Murray (D-43) lobbyists and legislators felt that Murray and Zarelli would not be able to reach a compromise and, indeed, the traditional “majority party rules” would prevail. Sen. Murray, who enjoys majority party status, stuck with his commitment and, ultimately put forward a final budget that garnered the strongest bi-partisan vote in the Senate in recent memory. That budget makes substantial structural changes to Washington’s finances that will assist in moving toward a sustainable long-term fiscal situation, without reliance on one-time money or new tax revenue.

Additionally, Sen. Murray was the prime sponsor of SB 5501, which provides a sales and B&O tax exemption on meals provided free of charge to employees. Despite the modest fiscal impacts of the bill to state revenues, Sen. Murray did not hesitate in sponsoring the bill and ensured it received an early hearing and vote in the Senate. Ultimately, SB 5501 passed both legislative chambers and was signed into law before the end of the regular session— a remarkable accomplishment in light of the state’s fiscal situation.

Special Recognition The WRA is grateful for Sen. Murray’s leadership in developing a truly bi-partisan budget agreement and for his willingness to prime sponsor the meal tax bill on behalf of the restaurant industry.

The WRA would also like to extend sincere gratitude to the following elected officials for their efforts during the 2011 session. We commend these leaders for keeping an open door to our industry throughout the legislative process.

Thank you!

Gov. Chris Gregoire Gov. Gregoire took the message from the voters last November to heart.

She fashioned a budget proposal in December that initiated the difficult process of restructuring state government without reliance on one-time federal money or new revenues. The WRA applauds the governor for her leadership on this profoundly difficult issue, and Gov. Chris Gregoire for her wisdom when she warned lawmakers in January of the difficult task that was before them. Additionally, the WRA recognizes the governor’s leadership in gaining a truly remarkable agreement on unemployment insurance tax reform, and for her unwavering commitment to making meaningful changes to Washington’s workers’ compensation system.

Sen. Joseph Zarelli (R-18) Sen. Zarelli, who serves as the ranking member on the Senate Ways and Means Committee, opted early in the session to work with Sen. Ed Murray, Chair of the Ways and Means Committee, on fashioning a bi-partisan budget agreement. The WRA can attest to the long hours Sen. Zarelli spent working with members on both sides of the aisle Sen. Joseph Zarelli to reach an agreement, and the budget that ultimately emerged from the Senate (R-18) was supported strongly from both sides of the aisle. It takes courage, tenacity and commitment to achieve what Sen. Zarelli accomplished in the budget. All citizens and businesses in Washington state will benefit from his efforts to work in a bi-partisan manner.

Rep. Ross Hunter (D-48) Rep. Hunter took on the challenging role of House Ways and Means Committee chair. This committee was charged with developing a budget and working on hundreds of bills with fiscal impacts to the state. Rep. Hunter worked with the WRA to bring forward the legislation to exempt meals provided free of charge Rep. Ross Hunter (D-48)

to employees from sales and B&O taxes. And, in the final budget, he agreed with provisions to roll back liquor prices to liquor licensees. Putting together a budget that can gain support from a majority of House members is particularly challenging—that is the nature of the House. Hunter proved his ability to work with his caucus in this difficult session in a constructive and problem-solving manner.

Sen. Derek Kilmer (D-26) At the beginning of the session, Sen. Kilmer accepted one of the most daunting positions in Olympia, vice chair of the Ways and Means Committee, and the result was impressive. With tremendous pressure to fix the budget with gimmicks, one-time transfers and sending tax increase proposals to voters in November, Sen. Kilmer stood firm in the principle that the state must stop Sen. Derek Kilmer spending more than it receives. And in (D-26) the 2011-2013 operating budget, he and the other budget writers did just that. In addition, the WRA worked closely with Sen. Kilmer on the monumental effort to reform both the unemployment insurance and workers’ compensation systems in Washington state. In doing so, significant amounts of money were returned to restaurant owners and operators to spend on maintaining and perhaps even growing their businesses. Finally, Sen. Kilmer teamed with Sen. Linda Parlette (R-12) to pass a bill reducing our state’s debt limit—a strong step in the right direction for our state’s long term financial recovery. The WRA applauds Sen. Kilmer for his understanding that the key to our economy’s recovery is through job retention and growth in the private sector.

Rep. Kevin Parker (R-6) Rep. Parker is a perfect example of how a restaurateur can make a difference in Olympia. As a leader in the House Republican Party Caucus and a WRA member, with three Dutch Bros locations, Rep. Parker knows first-hand the struggles of the foodservice industry and brings that experience to Olympia. His leadership and willingness to ask the tough questions while serving on both the House Ways and Rep. Kevin Parker (R-6) Means Committee and the Business and Financial Services Committee this session served our industry extremely well. Kevin continues to be a rising star in his party and in Olympia, and we are hopeful his success will motivate more restaurant owners to make the jump into public office. 

July 2011 | 31

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Full Course Business Solutions Card Processing • Gift Marketing • Payroll Services • Check Management To learn more about how this movement can help revolutionize your restaurant, visit GoFullCourse.com and call 866.941.1HPS (1477) x150. © Copyright 2010 National Restaurant Association. All rights reserved. © 2010 Heartland Payment Systems, Inc.

July 2011 | 33

PAC, GAC, Grassroots Fueling our efforts

The WRA Political Action Committee The WRA Political Action Committee (PAC) is one of the leading political action committees in Washington state today. As representatives of the state’s hospitality industry, we know how important it is that your voice be heard in Olympia.

About the Government Affairs Committee The Government Affairs Department is directed by the Government Affairs Committee. Every major decision regarding legislation and WRA official positions, as well as every PAC dollar and donation is approved by the Government Affairs Committee.

The WRA PAC’s purpose is to: Educate candidates on hospitality industry issues while they are on the campaign trail Support candidates who take the time to understand and work with our industry Leverage your numbers and resources to affect change

The GAC meetings are run according to Roberts Rules of Order and occur quarterly when the Legislature is not convening and weekly when the Legislature is in session.

We recognize how hard it is to be a business owner in Washington, and we fight everyday to keep your interests at the top of our legislators’ minds. Our successes in Olympia directly impact your bottom line.

To pay $1,000 in taxes a restaurant must earn $20,000 in sales.

The WRA knows that restaurants can’t afford more taxes, and we’re committed to defending you against them.

The PAC helped shape the political outcome on our key issues for restaurants in Washington by educating lawmakers.

In addition to this years savings, the WRA fought to improve restaurateurs’ bottom line in recent years:

Saved $72 million in liquor discounts Safeguarded $7.7 million in pop syrup B&O tax credits Protected WRA Retro members’ $3.8 million in Retro refunds

The WRA PAC is reliant on all of our members to support our yearly funding goal. Simply make a voluntary 20 percent additional PAC contribution when you renew your WRA membership. The amount is already calculated for you on your renewal form.

SUPPORT YOUR WRA PAC TODAY! Easy online donation using your credit card: www.WRAhome.com/PAC OR Mail your check to: WRA PAC 510 Plum Street S.E., Ste. 200 Olympia, WA 98501

34 | www.WRAhome.com

Any dues paying member of the WRA is eligible to vote as long as they have attended two of the previous four GAC meetings.

The GAC is co-chaired by two WRA members. One chair is the vice president of the Association, and the other chair is appointed by the outgoing President of the Association. All efforts are made to ensure the two chairs represent different segments of the industry. This year, the GAC co-chairs are Jim Rowe, president of Consolidated Restaurants; and Phil Costello, owner of Stop N Go Drive-in and Zips Drive-in.

Grassroots Network The WRA is proud to have one of the most sophisticated and effective grassroots networks in Olympia, but it wouldn’t be possible without the dedication of our members.

The WRA depends on working collaboratively with members on the front lines of our government affairs efforts. Allowing our legislators to hear directly from business owners in this industry is one of the most effective tools we have in protecting the hospitality sector.

Our grassroots network is made up of members representing all aspects of the industry, all willing to make a minimal time commitment for the good of restaurateurs in Washington.

Grassroots volunteers vary in time commitment and duties, ranging from a grassroots Ambassador to a grassroots phone contact.

While our lobby team works closely with state legislators and agencies throughout the year, it is crucial to remind our elected officials who we represent: real people and real business operators. Nothing is more effective than putting a constituent before an elected official and allowing a dialogue to take place. If you’re interested in joining the grassroots effort, contact Julia Clark at Julia@wrahome.com. .

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