LEGISLATIVE REPORT - LegLink #2
The Washington Self-Insurers Association’s Weekly Legislative Report
Monday, April 5, 2010
2010 Legislative Session
Issue #2
Welcome to WSIA's legislative update. This is the SECOND and FINAL REPORT of the 2010 Legislative session. Only two reports this session, because things were on a short timeline during this short session.
On Thursday, March 11, 2010 the regular legislative session came to an end.
Unfortunately, despite our best efforts (including the hiring of a second lobbyist and the starting up an issues-based website), the Employer Coalition’s “mini-reform” bills (HB 2950 in the House, SB 6638 in the Senate) did not get serious consideration. We worked with other employer groups to put develop these bills that would help reduce costs in workers’ compensation without reducing benefits. They would have provided for employer sponsored medical provider networks, clarified the definition of occupational disease and allowed voluntary final settlement offers. We put our heart and soul into this bill and were extremely disappointed when Democrat leadership decided not to hear the bill in either house. Read more about this issue under HB 2950 and SB 6638.
But that is not the REST of the story! Legislators were called back into a Special Session that began March 15th because they still have not settled on budget adjustments (cuts in services and tax increases) to close a $2.8 billion additional shortfall between expenditures and revenues. They were expected to conclude their efforts within a week, but are now well into the third week of the Special Session. The House and Senate have agreed on spending levels and priorities, but arestuck on which tax increases each legislative body is willing to live with. The Senate wants to raise the sales tax temporarily The House has gone for more indirect tax increases, including increases in the taxes on tobacco and businesses. They are considering a separate bill that would increase the tax on petroleum products to fund stormwater cleanup. They have until April 13. If they don’t get a budget and tax package by then, the Governor has said she won’t call them back until they have a firm agreement. Watch your TV, listen to your radio, and read your newspapers and blogs for the exciting conclusion to this tough Special Session.
Here’s what did (and did not) happen in workers’ compensation during the 2010 Legislative Session …
BILLS AFFECTING WORKERS’ COMPENSATION SIGNED INTO LAW
HB 3061 is WSIA’s bill to address a few concerns with the self-insured Insolvency Trust Fund. The first change charges pensions (which would otherwise be charged off to the Second Injury Fund) against a defaulted/insolvent employer’s surety, then socialize any remaining costs in the Insolvency Trust Fund after the surety has run out. The second change allows the Department of Labor & Industries to socialize any remaining surety from a defaulted/insolvent employer, after a period of 10 years with no open claims, thus offsetting the socialized liability of the employers paying into the Insolvency Trust Fund. HB 3061 passed the Legislature and was signed into law by the Governor. The effective date is June 10, 2010.
ESHB 1679 provides access to catastrophic disability medical insurance under LEOFF 2, allowing that increased health care costs would be offset by the LEOFF retirement system, requiring enrollment in Medicare Part A and Part B for there to be reimbursement, and allowing for reimbursement of COBRA premiums. In the House version, the change was temporary and expired July 1, 2011. However, in the version that passed the Legislature, there is no sunset of this bill; the change is on-going. SHB 1679 passed the Legislature and was signed into law by the Governor. WSIA did not take a position on SHB 1679. The effective date is June 10, 2010.
EHB 2519 increases the death benefit for public safety employees (those covered under LEOFF and the Washington State Patrol) from $175,000 to $214,000, with a built in inflator that will not exceed 3% per year. The bill removes: the 10-year service requirement in LEOFF 2 and Washington State Patrol Plan 2 for survivors of duty-related deaths to qualify for a survivor annuity; and removes the actuarial reduction for a joint and 100 percent survivor option applied to annuities under LEOFF 2 and WSPRS 2. The bill also provides a minimum survivor annuity in those plans of 10 percent of final average salary to survivors of duty-related deaths. Extends the time for receiving workers’ compensation benefits upon remarriage when the death is duty-related from 24 months to 36 months. Requires (rather than permits) waiver of tuition and other costs from state higher education institutions for children and surviving spouses. The original bill would have changed the workers’ compensation benefit to provide on-going benefits to surviving spouses for the length of their lives (including retrospectively to those who have already received a benefit in the form of a lump sum) and those spouses who remarry. This provision was deleted in the Senate. That provision would have cost the State Fund over $1 million and self-insurers $1.1 million in one-time costs, and approximately $75,000 per biennium after that. EHB 2519 passed the Legislature and was signed into law by the Governor. WSIA opposed EHB 2519 because of the remarriage provisions in the original bill. The effective date is June 10, 2010.
SHB 2789 grants the Department of Labor & Industries, the Employment Security Department, and Department of Revenue a process to seek a judicially authorized subpoena to carry out their responsibilities. The subpoenas are relatively narrow in scope, and came out of the Task Force that was looking at the underground economy. SHB 2789 passed the Legislature and was signed into law by the Governor. The effective date is June 10, 2010.
ESHB 2876 requires all the medical specialty boards to develop and adopt uniform guidelines on the use of opiates for the management of pain. The guidelines will cover chronic, non-cancer pain. They will not cover pain from injury or surgery. A physician or other provider must consult a pain management specialist if he/she wants to exceed the guidelines. There will be exceptions for on-going stable treatment plans and exceptional circumstances. The provider can demonstrate minimum training that will exempt him/her from the requirement to consult a pain management specialist. Although this bill did not amend the industrial insurance statutes, it will be helpful in controlling costs for industrial insurance cases. ESHB 2876 passed the Legislature and was signed into law by the Governor. However, the Governor did veto Section 8 of the bill – a provision that would have required legislative review of proposed rules – because she doesn’t want to cede executive branch authority to the legislature. The effective date is June 10, 2010.
SSB 6239 addresses a cleanup of gender-based terms, including in the workers’ compensation statute. There is no substantive policy position implicated by the bill. SSB 6239 passed the Legislature and was signed into law by the Governor. The effective date is June 10, 2010.
ESSB 6349 establishes a farm internship program. The bill requires development of rules to adopt a special risk classification for farm intern labor. An amendment added Section 5 to the bill to ensure funding from the state’s General Fund, and not the State Fund. SSB 6349 passed the Legislature and was signed into law by the Governor. However, the Governor vetoed out the General Fund provision. The Department indicates they will try to implement it without additional funding The effective date is June 10, 2010.
PRIORITY AND GOOD BILLS THAT DIED THIS YEAR
These bills were either WSIA priority bills, Employer Coalition bills, or bills that were considered to be generally “good” for the workers’ compensation system.
HB 2950/SB 6638 were WSIA’s and the Employer Coalition’s number one priority bills. The proposals included provisions allowing for Voluntary Settlement Agreements, the establishment of Medical Provider Networks, and for a slightly narrower definition of “occupational disease.” The proposals do not impact benefit levels, or who would be eligible for benefits under current law. Despite great efforts in trying to obtain a hearing and move the bills along, HB 2950 and SB 6638 died in their respective House and Senate Commerce & Labor Committees without a hearing. WSIA strongly supported HB 2950 and SB 6638.
HB 2879 would have created a joint legislative task force on industrial insurance privatization. The task force would be charged with proposing legislation by December 1, 2010 that would eliminate the State Fund, and would open up workers’ compensation to a competitive funding and claims management environment. HB 2879 died in House Commerce & Labor without a hearing. WSIA has not taken a position on HB 2879.
HB 3149 would have allowed for privatization of the worker’s compensation system in Washington, including spinning off the State Fund into a competitive market-driven entity. HB 3149 died in House Commerce & Labor without a hearing. WSIA has not taken a position on HB 3149.
SB 6799 would have required privatization of the worker’s compensation system in Washington, including spinning off the State Fund into a competitive market-driven entity. SB 6799 died in Senate Labor, Commerce & Consumer Protection without a hearing. WSIA has not taken a position on SB 6799, though there are concerns with this proposal.
OTHER BILLS THAT DIED THIS YEAR
These bills were introduced this year, and didn’t become law.
HB 2482 would have recognized relationships from those states that authorize same-sex marriages as domestic partnerships under Washington state’s laws – including for workers’ compensation. Passage of Referendum 71 provided the equal application of Washington’s laws to registered domestic partnerships (including workers’ compensation), but did not address what happens in those instances where a same-sex couple was legally married in Massachusetts or Iowa, but then moved to Washington state. HB 2482 died on the House Floor Calendar. WSIA did not take a position on HB 2482.
HB 3153 would have established a one year window for retired members of the Fireman’s Relief and Pension System of 1955 to actuarially reduce their benefits and designate a spouse married on or after July 26, 2009 as a survivor beneficiary. This is to fix a problem with legislation that passed in 2009. HB 3153 died on the House Floor Calendar. WSIA did not take a position on HB 3153.
SB 6585 would have clarified who is and isn’t an independent contractor for purposes of workers’ compensation and wage and hour enforcement. SB 6585 died in Senate Labor, Commerce & Consumer Protection without a hearing. WSIA has not taken a position on SB 6585.
SB 6699 would have required the Department of Labor & Industries to notify employers by November 1st of each year as to the rate that will take effect on January 1 of the succeeding year. More importantly, the bill also eliminates the ability of the Department to adjust rates other than on an annual basis (i.e. – no mid-year corrections of rates). SB 6699 died in Senate Labor, Commerce & Consumer Protection without a hearing. WSIA has not taken a position on SB 6699.
SSB 6775 would have created a task force to study and report on long-term disability claims and pensions in workers’ compensation, and then report the findings back to the Legislature by December 1, 2010. The Department would be required to convene the task force to: 1) improve the coordination and provision of quality, timely medical treatment; 2) improve outcomes for, and short the duration of, long-term disability claims; and 3) refine and resolve systemic liabilities and long-term pension trends. The bill was amended to include someone from the Governor’s office, but does not include any legislators on the task force. SSB 6775 died on the Senate Floor Calendar. WSIA opposed SSB 6775, feeling that we’ve studied workers’ compensation problems enough and that now is the time for action on even modest proposals – such as HB 2950/SB 6638.
BEGINNING PLANNING FOR THE 2011 LEGISLATIVE SESSION
The WSIA Legislative Committee will be meeting soon (April 22, 2010) to begin planning for the 2011 Legislative Session, and in anticipation of a potential initiative on the ballot that would provide for private underwriting of workers’ compensation insurance. A notice for the meeting will be sent out shortly.
In a change of policy, the Legislative Committee has been opened up to ALL members of WSIA (no longer just employers, TPA’s and attorneys). If you are interested in serving on the WSIA Legislative Committee, please email Dave Kaplan at dave.kaplan@wsiassn.org and let him know you’d like to be added.
as of 4/5/2010, 12:00pm
LABOR PERSPECTIVE ON WORKERS' COMPENSATION LEGISLATION
To see the position of the other side on workers' compensation issues, go to this webpage ... http://www.wslc.org/legis/index.htm
TRIAL LAWYER'S PERSPECTIVE ON WORKERS' COMPENSATION LEGISLATION
To find out which bills the Washington State Association for Justice tracks, go to this webpage ...
http://www.washingtonjustice.org/WA/index.cfm?event=showPage&pg=AgendaForJustice
COMMITTEE MEMBERS
Curious as to who is serving on the policy committees? Here you go!
House Commerce & Labor Committee
http://www.leg.wa.gov/House/Committees/CL/membersstaff.htm
Senate Labor, Commerce & Consumer Protection Committee http://www.leg.wa.gov/Senate/Committees/LCCP/MembersStaff.htm
USEFUL INFORMATION
To find the text or bill reports for any of the legislation listed above, you can go to www.leg.wa.gov and click on Bill Information.
As with all legislative hearings, you can listen to them live at www.tvw.org. Visit their Audio & Video page for links to LIVE legislative hearings, on-demand media archives, Podcasts and more.
If
you have any questions, please don’t hesitate
to contact us:
WSIA Legislative Chair Donna Egeland
donna.egeland@alaskaair.com,
or (206) 392-5072
WSIA
Executive Director Dave Kaplan
dave.kaplan@wsiassn.org,
or (800) 736-7296
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