Joe Nicholson/The Olympian
Fred Kiga, a financial adviser to Gov. Gary Locke, answers a question at a small-business lobby luncheon at the Phoenix Inn on Wednesday.

Small-business owners feel burdened by regulations

AMIRAV DAVY, THE OLYMPIAN

Originally published Thursday, January 31, 2002

OLYMPIA -- Small-business owners from across Washington gathered Wednesday to voice concerns about the effects government regulations are having on them.

"Businesses have to deal with 16,000 rules and regulations," said Sen. Pat Hale, R-Kennewick. "This must change."

Small companies encounter thousands of pages of regulations and spend thousands of dollars complying with them, according to the National Federation of Independent Business.

Such a climate makes it difficult to hire employees and expand, the group said.

"The Legislature needs to take a more aggressive approach on limiting regulation," said Carolyn Logue, leader of the federation's state chapter. "The message this year is that we have to keep businesses in business."

Members also said they don't want to be the target of proposed budget cuts or have any tax increases in what is already a difficult economic year.

Loosely-based audits

Business owners have shifted much of their ire this year toward the ergonomics regulations adopted by the Department of Labor and Industries. L&I requires all employers to assess the work zone of their employees.

If such a zone is deemed hazardous, the employer must eliminate the hazard, according to economic and technical considerations.

However, Gov. Gary Locke's Blue Ribbon Commission has yet to make recommendations -- guidelines for performing the ergonomics audits, according to the NFIB.

Rep. Richard DeBolt, R-Chehalis, told business owners Wednesday afternoon that House Republicans introduced a bill on the floor to delay the regulations for another two years, in order to get more clearly defined guidelines.

Democrats blamed

DeBolt blamed Democrats for slowing down attempts at small-business reform.

"We wanted to enact the small-business reform act that the competitiveness council came out with, but we got no help from the other side of the aisle," DeBolt said. "Part of the problem is that we have a governor that does not care about his agencies' stepping over businesses boundaries."

Hale has drafted a number of bills to ease small-business regulations. Senate Bill 6431 requires state agencies to notify businesses about new rules so they can figure out in advance how to comply. Senate Bill 6564 forces any major policy rules enacted by government agencies to go through a full legislative session for dissection through debate.

Hale also heads a committee known as the "job squad."

The squad will grade every single bill for its impact on Washington's business climate, Hale said.

Fred Kiga, Locke's financial adviser, told association members that the governor cares about them because Locke's father was a small-business owner.

Kiga said Locke is exploring safe harbors for small businesses so they can avoid the negative impacts of agency rules.

"You help drive the economic engine," Kiga told business owners. "Let's see how we can comply with the rules without being a burden on businesses."

Employee retention

George Madsen, who has owned a commercial roofing company in Lacey for 20 years, said he finds it difficult to retain employees because of the regulations placed on his business by L&I.

Madsen said Locke's administration doesn't pay enough attention to the small-business environment, even though it provides roughly 80 percent of the state's jobs.

Business owners already are paying too many taxes and shouldering too much responsibility for the actions of their employees, Madsen said.

The Olympian Copyright 2002

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