2012 Legislative Session
Read legislation from 2011, 2010, 2009, 2008 or 2007.
Legislation Impacting Multiple Divisions or Agency-Wide
3ESHB 2127 – Making 2011-2013 fiscal biennium supplemental operating appropriations
- Effective immediately
- Section 131 (5)
(5) $23,000 of the general fund--state appropriation for fiscal year 2013 is provided solely for the office of regulatory assistance to implement the following:
(a) Coordination of an agency small business liaison team to assist small businesses
with permitting and regulatory issues. The small business liaison team, as part of the biennial report submitted by the office of regulatory assistance, must provide recommendations for improvements to inspection and compliance practices and ways to improve customer service for regulatory agencies. The office must work with regulatory agencies to: (i) Assure that additional violations or corrective actions that could have been discovered and noted in the original violation or correction notice are not subsequently added and to provide a single list of any violations discovered during the regulatory visit or inspection; (ii) provide notice about when the business may expect the results of a technical assistance or regulatory visit; (iii) provide information about how the business may provide anonymous feedback regarding a technical assistance or other regulatory visit; and (iv) provide information regarding the role of the agency's small business liaison as a neutral party within the agency, as well as contact information for the liaison.
(b) In coordination with regulatory agencies, development of an anonymous customer service survey that regulated entities may complete after an inspection or a technical assistance visit under chapter 43.05 RCW, or a consultative visit under RCW 49.17.250. The survey must include questions addressing the points in this subsection (b) but may be designed in a way that best serves the needs of the multiple agencies and customers that will be using the survey. The survey must provide a way of identifying the agency that performed the inspection, and if possible within the resources allowed, provide a means of identifying the inspector who provided services. Questions should address the following topics:
(i) Whether staff were helpful, friendly, listened to the regulated party, used professional judgment, and communicated clearly;
(ii) Whether the inspector viewed the customer as a partner, worked on a cooperative relationship, and worked on innovative solutions;
(iii) Whether the inspector informed the customer why the customer received a site visit or inspection, described the site visit or inspection process, answered questions about the process, and explained regulatory requirements; and (iv) Whether the inspector was knowledgeable about the businesses operations and provided useful technical information.
The survey must be available on the office web site. The results of the surveys must be summarized, by agency, in a report and forwarded to the agency director, the governor, and the appropriate committees of the legislature. Each agency shall receive a copy of all relevant survey information. No identifying information may be included that would reveal the identity of the respondent.
- Section 131 (7)
(a) The office of financial management shall determine if cost savings can be achieved by the state through contracting for interpreter services more effectively. The office of financial management must work with all state agencies that use interpreter services to determine:
(i) How agencies currently procure interpreter services;
(ii) To what degree brokers or foreign language agencies are used in the acquisition of interpreter services; and
(iii) The cost of interpreter services as currently provided.
(b)
The office of financial management, in consultation with the department of enterprise services, must also examine approaches to procuring interpreter services, including using the department of enterprise services' master contract, limiting overhead costs associated with interpreter contracts, and direct scheduling of interpreters. The report must include recommendations for the state to procure services in a more consistent and cost-effective manner.
(c)
The office of financial management, in consultation with the department of labor and industries, must determine the impact that any alternative approach to procuring interpreter services will have on medical providers.
(d) The report must include:
Analysis of the current process for procuring interpreter services;
Recommendations regarding options to make obtaining interpreter services more consistent and cost- effective; and Estimates for potential cost savings.
(e)
The office of financial management must report to the fiscal committees of the legislature by December 1, 2012.
- Section 935
It is the intent of the legislature that regulatory agencies receiving appropriations in this act work with the office of regulatory assistance to:
(1) Establish a small business liaison team to assist small businesses with permitting and regulatory issues.
(2) Take action to assure that additional violations or corrective actions that could have been discovered and noted in the original violation or correction notice are not subsequently added and to provide a single list of any violations discovered during the regulatory visit or inspection;
(3) Provide notice about when the business may expect the results of a technical assistance or regulatory visit;
(4) Provide information about how the business may provide anonymous feedback regarding a technical assistance or other regulatory visit; and
(5) Provide information regarding the role of the agency's small business liaison as a neutral party within the agency, as well as contact information for the liaison.
2SHB 2452 – Procurement reform (DES)
- Effective date January 1, 2013
- Centralizes within one agency the authority and responsibility for the development and oversight of policies related to state procurement and contracting.
- Ensures the highest ethical standards, proper accountability and transparency for agency expenditures.
- Encourage agencies to purchase from small businesses.
2SSB 5355 – Regarding notice requirements for special meetings of public agencies
- Effective date June 7, 2012
- Amends the Open Public Meetings Act, by requiring the department to notify stakeholders within 24 hours of a special meeting.
- The agency is required to: Send information to local newspapers and local radio or television stations (already required); Post on the agency's website; and Displayed at the main entrance of the department's building and the meeting site.
- The department is exempt from these requirements if: A member submits written waiver of notice with the clerk or secretary of the governing body; or a member is actually present at the time the meeting convenes.
SSB 6354 – Requiring state agencies to offer electronic filing for business forms
- Effective date June 7, 2012
- A state agency that requires a business to submit a document, form, or payment of fee in paper format must, with limited exceptions, provide the business with an option to submit such materials electronically. Unless otherwise obligated, a business may authorize a second party to submit such filing requirements on its behalf.
- Exceptions to the electronic filing requirement apply where there is a legal requirement for materials to be submitted in paper format or when it is not technically or fiscally feasible or practical or in the best interest of businesses for such materials to be submitted electronically.
- If applicable, the director of an agency or the director's designee must, within existing resources, establish and maintain a process to notify the public as to what materials have been exempt from electronic filing.
- Agencies must add the capability for electronic submissions of existing documents, forms, and fees as part of their normal operations. In addition, any new documents, forms, or fees required of a business must be capable of electronic submission within a reasonable time following either their creation or the implementation of the new requirement.
- Agencies must document how they plan to transition from paper to electronic forms.
2ESB 6378 – Reforming the state retirement plans.
- Effective July 9, 2012
- Closes alternate early retirement benefits to new members of the Public Employees' Retirement System (PERS), the Teachers' Retirement System (TRS), and the School Employees' Retirement System (SERS).
- Creates a new subsidized early retirement benefit for members joining PERS, TRS, or SERS Plans 2 and 3 on or after May 1, 2013, that provides a 5 percent per year reduction in benefits from age 65 for members retiring with 30 or more years of service.
- Changes the investment rate of return assumption used for calculating contribution rates in the state retirement systems on July 1, 2013, to 7.9 percent, on July 1, 2015, to 7.8 percent, and on July 1, 2017, to 7.7 percent.
- Requires the Select Committee on Pension Policy in coordination with L&I, to study risk classifications of employees in the Washington state retirement systems that entail either high degrees of physical or psychological risk.
Division of Occupational Safety and Health
EHB 2509 – Blueprint for Safety
- Vetoed on March 30, 2012.
- Expands the "Blueprint for Safety" Program to 1 additional L&I Region
- Does not allow 608/609 funds to be used
- Must be implemented within existing resources
- The program shall supplement, but not replace existing consultation or inspection programs.
Specialty Compliance Services
SHB 1057 – Farm Labor Contractor Account
- Effective date June 7, 2012
- Codified the Farm Labor Contractor Account created in the 2012-14 Operating Budget
HB 2305 – Changing authority for contracts with community service organizations for public improvements
- Effective date June 7, 2012
- Authorizes port districts to contract with community service organizations for certain public works services without regard to competitive bidding laws.
- Authorizes community service organizations to make improvements under such contracts to port habitat sites.
- Authorizes community service organizations to enter into contracts for maintenance services for a facility or facilities as an "environmental stewardship project."
EHB 2328 – Addressing job order contracting
- Effective date June 7, 2012
- Removes the restriction limiting work orders of $350,000 to two per contract year.
- Expands the use of job order contracting to include the regional universities, The Evergreen State College, and Sound Transit. This will allow a higher percentage of work to be self-performed by the prime contractor on a JOC and modifies dates for public bodies to provide reports to the Board.
- The bill also eliminates the limitation on the number of work orders a public body may issue within a twelve-month period and changes department references to "general administration" and "enterprise services."
SHB 2673 – Addressing transportation workforce development (WSBT Apprenticeship Bill)
- Effective date June 7, 2012
- Requires the Department of Transportation to coordinate with Washington State Apprenticeship Training Council (WSATC) to expend federal funds received under 23 U.S.C. Sec. 140(b) to increase diversity in the highway construction workforce and prepare individuals interested in entering the highway construction workforce.
SSB 5412 – Providing remedies for whistleblowers in the conveyance work industry
- Effective date June 7, 2012
- Provides a remedy for workplace reprisal or retaliatory action for whistleblowers employed by elevator contractors.
SB 6133 – Requiring training for eligibility for certain electrician certifications
- Effective date July 1, 2013
- An applicant for a journeyman certificate of competency or a specialty electrician certificate of competency must complete a minimum of 24 to 96 hours of classroom training, depending on the number of work hours required for certification, to be certified.
SSB 6421 – Addressing the affidavit of wages paid on public works
- Effective date June 7, 2012
- A contractor may file an affidavit on behalf of a subcontractor if the contractor had a contractual relationship with the subcontractor and the subcontractor has ceased operations or failed to file an affidavit as required.
- An affidavit filed on behalf of a subcontractor may be accepted no sooner than 31 days after the acceptance date of the public works project.
- A contractor filing on behalf of a subcontractor must accept responsibility for any unpaid wages owed by the nonresponsive subcontractor. Intentionally filing a false affidavit on behalf of a subcontractor subjects the filing contractor to a civil penalty and disbarment for a period of one year.
Fraud, Prevention, and Compliance
SHB 1552 – Concerning garnishment
- This bill takes effect June 7, 2012; except for section 8, relating to the notice of garnishment sent to the debtor, which takes effect January 1, 2018.
- Modifies the forms used in garnishment proceedings.
- Increases the exemption for wages and specifies that certain public employee pensions are exempt from garnishment.
- Increases the minimum and maximum amounts that may be collected for the garnishment attorney fee.
- Makes other changes to garnishment laws, including: (1) adding accrual of estimated interest in the writ of garnishment; (2) amending provisions applicable to garnishee defendants; and (3) eliminating the multiple envelopes and forms the creditor is required to provide the garnishee defendant.
2011 Legislative Session
Legislation Impacting Multiple Divisions or Agency-Wide
HB 1150 – Extending the time in which a small business may correct a violation without a penalty
- Effective date 7/22/2011
- Extends from two business days to seven calendar days the time an agency must provide a small business to correct a violation before the agency imposes a fine, civil penalty, or administrative sanction.
EHB 1248 – Authorizing emergency rule making when necessary to implement fiscal reductions
- The bill contains an emergency clause and takes effect immediately.
- Permits agencies to adopt emergency rules to implement requirements or reductions in budgets enacted for the 2011-13 fiscal biennium.
SHB 1384 – Public improvement contracts involving certain federally funded transportation projects
- Effective date 7/22/2011
- Exempts public highway, road, and street contracts funded by federal transportation funds from the "contract retainage" requirement.
- States that the contract bond must remain in full force until, at a minimum, all claims filed in compliance with contractor's bond requirements are resolved.
SSB 5067 – Changing the certified and registered mail requirements of the department of L&I and ESD
- Effective date 7/22/2011
- Changes specified mailing methods, including certified and registered mail for various notices sent by the Department of Labor and Industries and the Employment Security Department to a method by which the mailing can be tracked or delivery confirmed.
ESSB 5931 – Reorganizing and streamlining central service functions, powers, and duties of state government
- Effective date 10/1/2011
- Combines central service functions (GA, DOP, State Printer, and portions of OFM) into a new agency - the Department of Enterprise Services (DES).
- Replaces the Department of Information Services (DIS) with the new Consolidated Technology Services agency (CTS).
- Creates the Office of the CIO within OFM.
- Requires state agencies to locate all existing and new computer servers in the new State Data Center (SDC) - unless they secure a waiver from the Office of the CIO. The timeline for moving the existing servers currently located in L&I facilities is unknown. The schedule will be directed by OFM and the Office of the CIO.
- Requires state agencies to use the services of the new CTS agency.
Division of Occupational Safety & Health
ESSB 5068 – Addressing the abatement of violations of the Washington industrial safety and health act during an appeal
- Effective date 7/22/2011
- Provides that an appeal of certain Washington Industrial Safety and Health Act violations does not stay abatement dates or requirements.
- Allows an employer to file a motion for a stay of abatement with the BIIA and sets standards for granting or denying motions.
ESSB 5594 – Regulating the handling of hazardous drugs
- Effective date 7/22/2011
- The Legislature intends to require health care facilities to follow rules requiring compliance with a National Institute for Occupational Safety and Health (NIOSH) alert on preventing occupational exposures to antineoplastic and other hazardous drugs in health care settings.
- Requires L&I to adopt rules for handling certain hazardous drugs in health care facilities.
Specialty Compliance Services
ESHB 1055 – Streamlining of contractor appeals
- Effective date 7/22/2011
- Changes the time period to appeal contractor infractions from 20 to 30 days.
- Eliminates the separate appeal period for the penalty.
HB 1290 – Mandatory overtime for certain health care employees
- Effective date 7/22/2011
- State or local correctional institutions that provide health care services to adult inmates are added to the list of health care facilities covered under the prohibition on mandatory overtime for certain registered and licensed practical nurses.
SHB 1502 – Concerning manufactured housing and mobile homes
- Effective date 7/22/2011
- The MH Account is repealed. The $15 fee collected on title transfers is deposited in the Installation Training Account for use by the L&I for the state administrative agency function and the Installation Program. Any residual balance in the MH Account must be transferred to the Installation Training Account.
SSB 5070 – Records requests relating to prevailing wage investigations
- Effective date 7/22/2011
- Prohibits a contractor or subcontractor from using records requested by the L&I to challenge a prevailing wage determination if the records are not provided within 60 days of a request.
SSB 5538 – Exempting certain conservation corps program participants from minimum and prevailing wage requirements
- Effective date 7/22/2011
- Participants in certain conservation corps programs are exempt from minimum and prevailing wage requirements when performing environmental and trail maintenance work conducted pursuant to the conservation corps program.
SB 5584 – Conforming of apprenticeship program standards to federal labor standards
- Effective date 7/22/2011
- Changes state apprenticeship law to conform to federal apprenticeship regulations by transferring rule-making authority for apprenticeship from the Washington State Apprenticeship and Training Council to L&I.
Insurance Services
ESHB 1311 – Creating a collaborative to improve health care quality, cost-effectiveness, and outcomes
- Effective date 7/22/2011
- Establishes a collaborative to identify and review certain high-variation or high-utilization health care services and develop best practices guidelines related to those services and strategies to promote the use of those guidelines.
- L&I's medical director will participate as a member of the collaborative.
ESHB 1367 – For hire vehicles and for hire vehicle operators
- Effective date 1/1/2012 - Except section 3, which becomes effective 7/22/2011.
- Requires mandatory industrial insurance coverage for certain for hire vehicle operators, and creates penalties for failure to pay premiums.
ESHB 1725 – Administrative efficiencies for the workers' compensation program
- Effective date 7/22/2011
- Clarifies that medical billing or payment policies associated with the fee schedule are not "rules".
- Allows L&I to send notices electronically when requested by the worker, employer, or other person affected. Electronic correspondence is considered received on the date sent. Closing orders must also be sent via US Mail.
- Where registered or certified mail was required, allows the department to use another method for which receipt can be confirmed or tracked (similar to changes in SSB 5067 for other programs).
- Requires L&I to report to the Legislature by December 1, 2011 on statutory changes needed to ensure an injured worker may receive care from a direct primary care provider and that the worker is not paying directly for medical services related to their claim. Ensures that employers that pay for direct care services for their employees can participate in the retrospective rating program.
HB 1726 – Addressing the recommendations of the vocational rehabilitation subcommittee for workers' compensation
- Effective date 7/22/2011
- Clarifies that workers suffering the loss of two major limbs or total eyesight can receive vocational services, but are not eligible to select Option 2 benefits.
- Clarifies that vocational plan development or implementation does not begin until a determination is made following a vocational dispute. These dates begin the timeframe for the employer to make a valid job offer or for the worker to select an option.
- Allows L&I to extend the time by 10 days for a worker to select Option 2 vocational rehabilitation benefits and for an employer to make a valid return-to-work offer under certain circumstances.
- Allows Option 2 benefits to be assessed as an overpayment when claim closure is not appropriate following the worker's selection.
EHB 2123 – Addressing the workers' compensation system
- Effective date 6/15/2011
- Creates the Stay-at-Work program, authorizing State Fund employers to receive a wage subsidy and reimbursements for employing an injured worker at light duty or transitional work.
- Eliminates the fiscal year 2012 cost-of-living adjustment with no catch-up, and delays the first cost-of-living adjustment.
- Authorizes claim resolution structured settlement agreements effective January 1, 2012 for workers age 55 or older, then age 53 or older beginning in 2015, and age 50 or older beginning in 2016. Agreements are only allowed on accepted claims that are at least 180 days old. Requires agreements to be approved by the Board of Industrial Insurance Appeals, and includes minimum and maximum periodic payments.
- Requires permanent total disability awards to be offset by prior permanent partial disability (PPD) awards and eliminates interest on unpaid PPD awards.
- Establishes in statute Safety and Health Investment Projects grants.
- Creates an Industrial Insurance Rainy Day Fund.
- Requires L&I to apply certain best practices to address employer, worker, and provider fraud.
- Requires the Joint Legislative Audit and Review Committee to conduct a performance audit of the workers' compensation claims management system.
- Requires L&I to contract for a study of occupational disease.
E2SSB 5073 – Concerning the medical use of cannabis
- Effective date 7/22/2011
- Governor signed with section vetoes (Chapter 181, Laws of 2011) 4/29/2011.
- Provides certain protections for patients and designated providers.
- Clarifies state purchased health care, health carrier or health plan authority including L&I for state fund and self-insured workers, can establish coverage/non-coverage decisions.
- Clarifies expectations for prescribers of medical marijuana.
- Authorizes studies on medical cannabis.
ESSB 5091 – Delaying the Implementation of the Family Leave Insurance Program
- Effective date 8/24/2011
- Implementation of the family leave insurance program is delayed for three years. Benefits are payable beginning October 1, 2015 (instead of October 1, 2012).
- The ability to loan from the workers' compensation supplemental pension fund to the family leave insurance account expired on July 1, 2009, and was not extended by the legislation.
SB 5278 – Addressing information contained in rate notices under the industrial insurance laws
- Effective date 7/22/2011
- Rate notices must include an accounting that clearly identifies all programs and services that are financed in whole or in part by state fund premiums or self-insurers' administrative assessments.
SSB 5801 – Establishing medical provider networks and expanding centers for occupational health and education in the industrial insurance system
- Effective date 7/1/2011
- Requires L&I to establish an industrial insurance health care provider network for state fund and self-insured injured workers. Requires participating providers to meet network standards.
- Requires L&I to convene an advisory group of employer, worker, and medical provider representatives from the Industrial Insurance Medical and Chiropractic Advisory Committees to advise the department on implementation of the network.
- Requires workers to receive care from a network provider once a network is established in the worker's geographic area, except for the first visit.
- Requires L&I to establish additional best practice standards, and financial and nonfinancial incentives, for second tier providers.
- Requires L&I to establish additional Centers for Occupational Health and Education (COHEs) so that all workers have access to a COHE provider by 2015.
Crime Victims Compensation
SSB 5691 – Streamlining the crime victims compensation program
- Effective date 7/1/2011
- Eliminates the payment awards provided as permanent partial disability benefits given to victims of criminal acts.
- Eliminates the benefits provided for home and vehicle modifications given to victims of criminal acts.
- Moves statutory provisions relating to the Crime Victims Compensation Program from the Industrial Insurance Act (relating to the workers' compensation program) to the Crime Victims Compensation Act.
Fraud Prevention and Compliance
SHB 2017 – Relating to the master license service program
- Effective date 7/1/2011
- Transfers the Master License Service (MLS) from Department of Licensing to the Department of Revenue to improve customer service.
- Insurance Services/Fraud/SCS assume that the Department of Revenue will utilize the same process therefore there would be no business impact.
- Information Services will test the data feeds for Insurance Services and Fraud and make any necessary system changes.
Administrative Services
SHB 1899 – Relating to penalties for public records violations
- Effective date 7/22/2011
- Changes the range of the monetary penalty that may be assessed against an agency under the Public Records Act from a minimum of $0 up to a maximum of $100 for each day the agency has unlawfully failed to provide requested records.
- Removes the previous minimum dollar amount of $5.
Office of Human Resources
HB 1625 – Addressing the default investment option available to new members of the plan 3 retirement systems
- Effective date 7/22/2011
- The default investment option for new members of the Plans 3 of the Public Employees' Retirement System, the Teachers' Retirement System, and the School Employees Retirement System is changed from shares in the common pension fund invested by the State Investment Board to an offered retirement strategy fund with the retirement date closest to the retirement target date of the member.
HB 1981 – Addressing public employee postretirement employment and higher education employees' annuities and retirement income plans
- Effective date 7/1/2011 - Except sections 10 and 19, which become effective 1/1/2012.
- Eliminates Public Employees' Retirement System (PERS) and Teachers' Retirement System (TRS) Plan 1 provisions permitting retirees to receive benefits while employed in retirement system-covered positions for up to 1,500 hours per year.
- Adds positions covered by the Higher Education Retirement Plan (HERP) to those included in the postretirement employment pension restrictions for PERS, TRS, the School Employees' Retirement System, and the Public Safety Employees' Retirement System.
- Limits the employees to which state institutions of higher education may offer the HERP, instead of PERS Plans 2 or 3, to faculty and senior academic administrator employees.
- Eliminates the HERP Supplemental Benefit for employees that enter the plan July 1, 2011, and provides the new employees the option of joining the TRS Plan 3 or PERS Plan 3.
- Requires higher education institutions responsible for payment of HERP supplemental Benefits to contract with and provide data to the Office of the State Actuary for periodic actuarial valuations and experience studies of the HERPs.
HB 2021 – Limiting the annual increase amounts in the public employees' retirement system plan 1 and the teachers' retirement system plan 1
- Effective date 6/30/2011
- Public Employees' and Teachers' Retirement Systems Plan 1 (PERS Plan 1 and TRS Plan 1) members benefits are no longer increased through the Uniform COLA above the amount in effect on July 1, 2010, unless a retiree qualifies for the basic minimum benefit. Members of PERS Plan 1 and TRS Plan 1 that qualify for the minimum benefit formulas in the plans will continue to receive the Uniform COLA.
- The minimum contribution rates for PERS Plan 1 unfunded liability is reduced from 5.25 to 3.5 percent, and for TRS Plan 1 unfunded liability from 8.0 to 5.75 percent.
- The alternative minimum benefit, commonly referred to as the "$1,000 minimum benefit," is increased to $1,500 and after the increase continues to be indexed by 3 percent per year.
HB 2070 – Determining average salary for the pension purposes of state and local government employees as certified by their employer
- Effective date 7/1/2011
- Adds language to each of the statutes establishing Average Final Compensation calculations for each of the retirement systems (PERS, TRS, SERS, etc.) that state retirement benefit calculations will include the 3% reduction as though it was paid to the employee.
2ESB 5773 – Making a health savings account option and high deductible health plan option and a direct patient-provider primary care practice option available to public employees
- Effective date 8/24/2011
- The Health Care Authority (HCA) is directed to offer a high-deductible health plan with a health savings account as an option alongside its traditional comprehensive medical insurance offerings in the Public Employees' Benefits Board (PEBB) program, beginning with the 2012 plan year.
- The HCA must also develop a plan to offer direct patient provider primary care practices to PEBB participants for the open enrollment period beginning with the 2013 plan year and submit the plan to the PEBB and the House and Senate health care committees by December 1, 2011.
- By November 30, 2015, and annually thereafter, the Health Care Authority is required to submit a report to the relevant legislative policy and fiscal committees that includes medical care utilization trends over the past three years, the demographics of each plan offered to employees, and the impact.
SB 5860 – Addressing state government employee compensation
- Effective date 7/1/2011
- During the 2011-13 biennium, base salaries are reduced 3 percent for all state employees except for elected officials whose salaries are established by the Commission on salaries for Elected Officials; employees at state institutions of higher education; certificated Employees of the state School for the Blind and the Center for Childhood Deafness and Hearing Loss; commissioned officers of the State Patrol; represented ferry workers of the Department of Transportation; and employees whose monthly full-time equivalent salary is less than $2,500 per month.
- Employees subject to the salary reduction accrue additional Temporary Salary Reduction leave at the rate of 5.2 hours per month. Amounts paid during the 2011-13 fiscal biennium to state employees who cash-out annual or sick leave at the time of retirement or sick leave in excess of 60 days at any time are not reduced by temporary compensation reductions.
- Agencies that are prevented by the terms of a collective bargaining contract from implementing the 3 percent salary reduction are required to achieve a 3 percent reduction in compensation expenditures through employee leave without pay, reduced work hours, temporary layoffs, or other actions consistent with the terms of the collective bargaining agreement.
- During the 2011-13 fiscal biennium, no performance-based awards or incentives may be granted to state employees.
- Agencies are prohibited from granting a salary increase for exempt or WMS employees during the 2011-13 fiscal biennium, except in cases where a demonstrated recruitment and retention issue exists; and, in the case of executive branch agencies, the Director of the Office of Financial Management has approved the increase.
- Agencies that do give salary increases to exempt or WMS employees are required to submit reports by July 31, 2012, and July 31, 2013, describing the increases given and the reasons for granting them.
2010 Legislative Session
Legislation Impacting Multiple Divisions or Agency-Wide
E2SHB 2617 – Eliminating certain boards and commissions
- Effective date 6/30/2010, except for certain sections that do not relate to L&I program areas.
- Eliminates specified boards, committees, and commissions. L&I is impacted by elimination of the Pesticide Advisory Board, coordinated by the Department of Agriculture. The WSDA has indicated it will continue to use an informal agency stakeholder advisory group.
- The legislation also eliminates the Pesticide Incident Review and Tracking (PIRT) Panel, but did not eliminate the duties and responsibilities of the panel. It is presumed the Department of Health may decide to convene an advisory group to perform the work that was done by PIRT.
- Eliminates subsistence, lodging, and travel allowances for members of boards, commissions, councils, and committees identified as class 1, 2, 3, and 5 groups whose allowances are funded by the State General Fund. The cost control provisions of the bill (Section 142) will apply to the WISHA Advisory Committee, as a "class 1" committee.
ESHB 2921 – Making 2010 supplemental operating appropriations
- The bill contains an emergency clause and takes effect immediately.
- In addition to operating appropriations, until July 1, 2011, state agencies of the legislative, executive, and judicial branches shall not establish new staff positions or fill vacant existing staff positions except as specifically authorized.
- It also freezes expenditures on personal service contracts (PSC), equipment over $5,000, out of state travel and training. Several agencies and activities are exempted.
- Only one exemption specifically applies to L&I – activities necessary to collect revenue, audit or recover funds. Exemptions on PSC, equipment and travel are also allowed for IT projects approved by the Information Services Board, grant-funded projects, and IT maintenance. Travel is allowed between Portland and Boise and for direct service delivery.
- OFM can grant exceptions for critical positions which are published on OFM web page.
- The freezes are not limited to General Fund.
SSB 6239 – Making technical corrections to gender-based terms
- Effective date 6/10/2010, except Section 9077 which is effective 7/1/2010.
- Gender-specific terms and references are made gender-neutral in several titles of the RCW. Titles relating to criminal procedure, probate and trust, district and juvenile courts, aeronautics, agriculture, state government, motor vehicles, public highways and transportation, insurance, labor, unemployment compensation, industrial insurance, fire protection districts, port districts, public utility districts, boundaries and plats, and landlord and tenant are made gender-neutral.
SSB 6349 – Establishing a farm internship program
- Effective date 6/10/2010
- L&I must establish a farm internship pilot project for San Juan and Skagit counties and report to the Legislature by December 31, 2011. For the pilot project, small farms can employ up to three farm interns per year under special certificates. A farm intern is an individual who provides services to a small farm under a written agreement and primarily as a means of learning about farming practices and farm enterprises. Farms seeking to employ interns must submit an application that provides specific information to be determined by L&I including a description of the intern program and the work to be performed and any wages to be paid.
- L&I must establish criteria for the internships which will allow the payment of subminimum wage, or no wages.
- L&I must provide a special risk class or classes for farm interns by rule. Requirements for obtaining a special risk class must be included in the rule.
ESSB 6503 – Closing state agencies on specified dates
- Effective immediately
- This bill indicates immediate action is needed to reduce expenditures for the 09-11 biennium, and that cost reductions be achieved in government operating expenses.
- It includes ten specific dates between July, 2010 and June, 2011 for state agencies to be closed.
- Allows agencies to submit a compensation reduction plan to OFM for approval as an alternative to the listed closure dates to achieve the required reductions. The plans may include the use of leave without pay, additional mandatory and voluntary temporary layoffs, reductions in the agency workforce, compensation reductions, reduced work hours, voluntary retirements, separations, and other incentive programs.
- The workers' compensation and workplace safety and health compliance activities of L&I are exempted.
Insurance Services
EHB 2519 – Addressing duty-related death benefits for public safety employees
- Effective date 6/10/2010
- This bill applies to the surviving spouses of LEOFF members (law enforcement officer and fire fighters retirement system) and the state patrol retirement system who are killed in the course of employment, or whose death is due to an occupational disease. The legislation increases the lump-sum entitlement for a surviving spouse to thirty-six times the monthly compensation rate in effect on the date of remarriage or fifty percent of the remaining annuity value of his or her pension, whichever is lesser.
- Increases the lump-sum, duty-related death benefit in all plans of LEOFF and WSPRS to $214,000 and annually increases the lump sum by up to 3 percent per year.
- Makes other changes specific to benefits under the LEOFF and WSPRS retirement systems.
E2SHB 2956 – Concerning the hospital safety net
- The bill contains an emergency clause and takes effect immediately.
- Establishes the Hospital Safety Net Assessment Fund.
- Creates assessments on hospitals based on non-Medicare inpatient hospital days.
- Increases inpatient and outpatient hospital payment rates and Disproportionate Share Hospital payments.
- Requires DSHS to design a system for providing quality incentive payments to hospitals starting in Fiscal Year 2013.
- Requires some hospitals to fund emergency room diversion agreements with community and migrant health centers.
- Section 14 specifically mentions L&I. DSHS is required to develop a quality incentive payment program in cooperation with other state agencies, the Puget Sound Health Alliance, WSMA, the Association of Washington Health Plans and other associations involved with healthcare quality improvement.
ESHB 2876 - Concerning pain management
- Effective date 6/10/2010
- Requires specific boards and commissions (Medical Quality Assurance Commission (MQAC), the Board of Osteopathic Medicine and Surgery (BOMS), and the Podiatric Medical Board (PMB)) to adopt rules on chronic non-cancer pain management. It is presumed the changes will require prescribers of opioids to follow certain guidelines. The guidelines relate to safe dosing levels, obtaining specialty consultations, and tracking clinical progress using assessment tools, and tracking the use of opioids.
- The bill instructs the named boards and commissions to work collaboratively with the Agency Medical Directors' Group, DOH, UW, and the largest professional association of each named prescribing group (podiatric physicians, dentists, osteopathic physicians, osteopathic physician assistants, medical physicians, physician assistants, advanced registered nurse practitioners, and certified registered nurse anesthetists) when writing the rules.
HB 3061 – Addressing claims of insolvent self-insurers under industrial insurance
- Effective date 6/10/2010
- The balance of a self-insured employer's surety bond is deposited into the insolvency trust fund if the self-insured employer has been in default for ten years and all claims against the employer are closed.
- In second injury cases where the self-insured employer is in default or had their certificate of self-insurance withdrawn, the amount paid into the pension reserve fund must be taken from the employer's surety deposit. If the surety deposit is insufficient, any remaining costs are assessed against the insolvency trust fund.
SSB 6280 – Concerning East Asian medicine practitioners
- Effective date 6/10/2010, except for Section 17 effective 7/1/2010, and Section 18 8/1/2010
- The proposed bill changes the designation of acupuncturists to East Asian medicine practitioners and expands the scope of practice as defined in Chapter 18.06 RCW.
- Additions to scope include:
- Breathing, relaxation and East Asian exercise,
- Qi gong,
- East Asian massage,
- Superficial heat and cold therapies,
- Health education to include the recommendation and sale of herbs, vitamins, minerals and dietary and nutritional substances.
Fraud Prevention & Compliance
SHB 2789 – Authorizing issuance of subpoenas for purposes of agency investigations of underground economic activity
- Effective date 6/10/2010
- The bill provides authority for L&I, Department of Revenue and Employment Security Department to seek administrative subpoenas for the investigation of underground economy activity. The bill provides what must be articulated to the court in order to have the subpoena approved by the court.
Specialty Compliance Services
EHB 1690 – Concerning public works projects
- Effective date 7/12/10
- Clarifies the legislative intent that public bodies may use only those alternative public works contracting procedures authorized by law.
- Directs the Capital Projects Advisory Review Board (CPARB) to recommend to the appropriate committees of the Legislature other alternative contracting procedures.
- Clarifies that all housing authorities are subject to the provisions of chapter 39.10 RCW (CPARB) except where alternative requirements or procedures of federal law or federal regulation are authorized.
- Clarifies that prevailing wage requirements (chapter 39.12 RCW) apply to housing authority public works projects unless specifically preempted by federal law or federal regulation.
SHB 2546 - Concerning classroom training for electrical trainees
- Effective date 7/1/2011
- The requirements for renewing an electrical training certificate are modified. The number of classroom hours required to renew an electrical training certificate is increased from 16 to 32 beginning on July 1, 2011, and from 32 to 48 beginning on July 1, 2013.
- The requirement for approved classroom electrical continuing education courses is replaced with a requirement for approved classroom training.
- Upon request, the Department of Labor and Industries must provide information to legislative committees on the implementation of the new trainee education standards by December 1, 2012.
SHB 2555 – Authorizing the Department of Labor and Industries to issue subpoenas to enforce production of information related to electricians and electrical installations
- Effective date 6/10/2010
- The department is authorized to issue subpoenas to enforce the production and examination of any information needed to enforce the law related to electricians and electrical installations if there is reason to believe a violation has taken place.
- The subpoena may only be issued if the person to which the electrician and electrical installation law applies fails to provide the requested information.
- The subpoena and the request for information must describe the possible violation, cite the relevant law, and explain how the information being requested or subpoenaed is reasonably related to the possible violation.
- The superior court is authorized to enforce such a subpoena.
2SHB 2603 – Requiring agencies to give small businesses an opportunity to comply with a state law or agency rule before imposing a penalty
- Effective date 6/10/2010
- Agencies must provide a small business with a copy of the state law or agency rule being violated and must allow a period of at least two business days for the small business to correct the violation before the agency imposes a fine, a civil penalty, or an administrative sanction. If no correction is possible, or if an agency is acting in response to a complaint made by a third party who would be disadvantaged by correction of the violation, then no correction shall be required.
- Exceptions to this requirement include:
- when the violation or waiver presents a direct danger to the public health, results in a loss of income or benefits to an employee, poses a potentially significant threat to human health or the environment, or causes serious harm to the public interest;
- the violation involves a small business that knowingly or willfully engaged in conduct that may result in a felony conviction;
- the requirement for a notification or waiver conflicts with federal law or program requirements, federal requirements that are a prescribed condition to the allocation of federal funds, or requirements for eligibility of employers in this state for federal unemployment tax credits;
- the small business or the owner or operator committing the violation previously violated the same or a similar law or agency rule;
- The requirements of the act do not affect the Attorney General's authority to impose fines, civil penalties, or administrative sanctions or to enforce the Consumer Protection Act.
- The violation is of a requirement concerning the assessment, collection, or administration of any tax, tax program, debt, revenue, receipt, a regulated entity's financial filings, or insurance rate or form filing
- The definition of a small business is those with gross revenue of less than $7 million annually as well as a business with 250 or fewer employees.
EHB 2805 - Regarding public works involving off-site prefabrication
- Effective date 6/10/2010
- Requires contractors and subcontractors on public works projects estimated to cost over $1 million to submit information about certain off-site prefabricated items produced outside Washington to L&I as a part of the Affidavit of Wages Paid form.
SHB 3145 – Improving administration of wage complaints
- Effective date 6/10/2010
- Establishes a civil penalty for repeat willful violators of the wage payment laws.
- Modifies the wage payment provisions with respect to tolling the statute of limitations, successor business liability, minimum penalty amounts, and the bonding authority of the Department of Labor and Industries.
SSB 6332 - Concerning human trafficking
- Effective date 6/10/2010
- The legislation requires L&I to integrate human trafficking victims' assistance information on its existing posters, as the agency deems appropriate.
ESSB 6468 - Coordinating the weatherization and structural rehabilitation of residential structures
- Effective date 6/10/2010
- Requires the department of commerce to prioritize weatherization, energy efficiency activities, and structural repair of residential structures to aid in the allocation of federal funds, and to develop policies to ensure investments are made in buildings requiring energy efficiency, repair, and rehabilitation improvements that will maximize savings and extend the home's life.
- Adds language to the intent statement of RCW 70.164.010 to include "moderate to significant repair and rehabilitation of residential structures that are required as a necessary antecedent to those [weatherization] activities."
- The bill increases the reporting requirements for providers receiving funds from reporting every six months to reporting at least quarterly, or consistent with federal reporting, whichever is more frequent.
SSB 6647 - Protecting jobs of members of the civil air patrol while acting in an emergency service operation
- Effective date 6/10/2010
- Civil Air Patrol (CAP) members may not be discharged from employment or disciplined because of leave taken related to an emergency service operation.
- A CAP member who believes he or she has been wrongfully discharged or disciplined may bring an action alleging the violation to the director within 90 days of the violation. The director must investigate, and send his or her determination within 90 days of receipt of the complaint.
- If it is determined that the CAP member has been wrongfully discharged or disciplined, the CAP member must be reinstated and any disciplinary action withdrawn. An emergency service operation means search and rescue missions designated by the Air Force Rescue Coordination Center or disaster relief or humanitarian relief when requested by the Federal Emergency Management Agency.
Administrative Services
SB 5295 – Implementing unanimous recommendations of the public records exemptions accountability committee
- Effective date 6/10/2010
- Addresses unanimous recommendations from the Public Records Exemption Accountability Committee.
- It exempts from public disclosure the following areas: child mortality reviews, agriculture and livestock, wellness programs, and lists of candidates for board directors submitted to the governor.
ESB 5041 – Encouraging state contracts with veteran-owned businesses
- Effective date 6/10/2010
- A statewide program is created to increase state procurement contracts with veteran-owned businesses.
- State agencies are encouraged to award three percent of all procurement contracts under $35,000 to veteran-owned businesses. In addition, state agencies must perform outreach to veteran-owned businesses; work to match agency procurement records with the DVA's database of certified veteran-owned businesses to establish how many procurement contracts are being awarded to those businesses.
SSB 6367 – Allowing agencies to direct requesters to their web site for public records
- Effective date 6/10/2010
- In addition to providing a record in response to a public records request, the agency may provide an Internet address and link on the agency's website to the specific records requested.
- If the requester informs the agency that he or she cannot access records through the Internet, the agency must provide hard copies or allow the requester to view copies on an agency computer.
Information Services
ESHB 3178 - Creating efficiencies in the use of technology in state government
- Effective date 6/10/2010
- The bill creates strategic coordination, transparency in determining IT total cost of ownership, and meaningful enterprise oversight for information technology. It designates the department of Information Services (DIS) and the Office of Financial Management (OFM) as the agencies directly responsible for creation and management of the strategic plans and the creation of a statewide enterprise management plan for information technology projects and services.
Crime Victims Compensation
E2SSB 6504 – Modifying provisions of the crime victims' compensation program
- Effective: April 1, 2010 (Sections 1 and 2), and June 10, 2010
- This legislation changes the requirements for eligibility and the level of benefits for victims of a crime applying for benefits with the Crime Victims Compensation Program (CVCP) and creates a crime victims' compensation account at the state treasurer.
- The reduced benefits will save the program $3.4 million for the current biennium and $5.8 million for the next biennium. The intent of the bill is to "retroactively" reduce benefits to all claims with the exception of those claims with a date of injury on or before July 1, 1981.
- Key benefit changes include:
- A limit of $50,000 for payments on a single claim. This "hard cap" applies to all new and current claims, including those that are at the limit or have exceeded the limit.
- A limit of $5,750 for burial expenses and a requirement that claims are filed within one year of when the death is recognized as a homicide or the remains are released for burial.
- Eliminating the lump-sum payment of $7,500 to a surviving spouse or child of a homicide victim who was not employed at the time of the criminal act.
- Limiting permanent partial disability to $7,000.
- No wage replacement payments to any person who was not gainfully employed at the time of the criminal act. For those employed at the time of the criminal act, the maximum remains at $15,000.
- No compensation will be paid to a victim who has been convicted of a felony in the preceding five years if the felony is a violent crime or crime against persons, unless all legal financial obligations have been satisfied.
2009 Legislative Session
L&I Agency Request Legislation
HB 1366 – Making technical changes to boiler and unfired pressure vessel statutes.
- Eliminates unnecessary inspections by amending the two-year requirement for internal inspections of hot water heating boilers.
- Makes terms consistent throughout the law.
- Revises the current exemptions to be consistent with the adopted national standard.
Agency-Wide Legislation
SSB 5042 – Providing a waiver of penalties for first-time paperwork violations by small businesses.
- Effective July 26, 2009
- Prohibits agencies from assessing fines, penalties, or administrative sanctions against businesses with 250 or fewer employees for first-time paperwork violations. The legislation provides exceptions related to public safety, collection of taxes and revenue, or when a federal law requires the penalty.
- Any penalties or fines waived could be reinstated for a subsequent violation. It would not relieve businesses from having to apply for or obtaining permits, licenses, etc.
E2SSB 5688 – Expanding the rights and responsibilities of state-registered domestic partners.
- The sections affecting L&I are effective July 26, 2009
- Expands the rights of state registered domestic partners by granting any privilege, immunity, right, benefit, or responsibility granted or imposed by statute, rule, policy, common law, or any other law that is provided to spouses.
- Repeals the non-judicial termination process for domestic partnerships and requires that parties must file for dissolution to terminate a partnership.
- Extends workers' compensation benefits and crime victims' compensation benefits currently available to spouses to include state-registered domestic partners. Pension options and survivor benefits are two examples.
- Adds state-registered domestic partners to RCW 49.12 – Industrial Welfare Act (family leave, for example).
SSB 6158 – Delaying the implementation of the Family Leave Insurance program.
- Effective July 26, 2009
- Delays family leave insurance benefits until October 1, 2012, and the legislative report from the administering agency (to be named) to 2013.
- The ability to loan from the Supplemental Pension Fund expires as of July 1, 2009.
Administrative Services
ESSB 5460 – Reducing the administrative cost of state government during the 2007-2009 and 2009-2011 fiscal biennia.
- Effective February 18, 2009
- Re-enacts the Governor's hiring and spending freeze (personal service contracts, equipment, and travel) for state agencies with an expanded list of agencies and services exempt from the freeze requirements.
- Freezes salaries for all state employees for 12 months following enactment of this bill which will be on Feb 18, 2010.
- DOP is authorized to grant exceptions to the hiring freeze. If granted the agency must wait for 5 business days before hiring to allow time for the Legislative review.
- The spending freeze is lifted on July 1, 2009 for equipment, personal service contracts and out of state travel. Equipment under $5000 is exempt from the freeze. Travel exemptions are allowed when conducting direct service delivery and if travel paid exclusively from Federal funds.
- OFM is given authorization to grant exceptions to equipment, personal service contracts and out of state travel. Before implementing, exceptions approved must wait 5 days following notification to the fiscal committee chairs of the Legislature.
Crime Victims Compensation
SHB 1221 – Concerning counseling for witnesses in civil commitment proceedings under chapter 71.09 RCW.
- Effective July 26, 2009
- Provides mental health counseling for out-of-state sexual assault crime victims to address distress if they are participating in the civil commitment proceedings in Washington State.
Fraud Prevention & Compliance
SHB 1555 – Addressing the recommendations of the joint legislative task force on the underground economy in the construction industry.
- Effective July 26, 2009
- Establishes industrial insurance premiums as a priority on public works retainage, secondary to that held by employees or the Department of Revenue (DOR) under RCW 82. It includes L&I in the request for release process, so we will be aware of projects and amounts that may be due.
- Requires contractors licensed under RCW 18.27 to maintain a list of subcontractors used and copies of their construction registration. The information will be used by the construction compliance program and auditing/compliance efforts for workers' compensation.
- Establishes a requirement for employer education on workers' compensation reporting requirements, in particular, independent contractor issues.
- Extends the joint legislative task force on the underground economy through this year, and expands it to industries other than construction.
- Requires L&I to report yearly on efforts resulting from task force bills or recommendations, jointly with DOR and the Employment Security Department.
SSB 5613 – Authorizing the Department of Labor and Industries to issue stop work orders for violations of certain workers' compensation provisions.
- Effective July 26, 2009
- Authorizes L&I to issue stop work orders to contractors that do not have any industrial insurance coverage.
- Requires business operations to cease, either at a jobsite if posted there, or statewide if served on an employer.
- There are provisions for reconsideration and appeal. During these dispute processes, the stop work order remains in effect unless the employer posts a cash deposit or bond of $5,000, or $1,000 per employee identified.
- Violating a stop work order is subject to a penalty of $1,000 per day not in compliance. It remains in effect on successor entities with one or more of the same principles/officers if in the same or equivalent trade.
Specialty Compliance Services
SHB 1055 – Requiring workers to have licenses, certificates, or permits in their possession when performing work in certain construction trades.
- Effective July 26, 2009
- Requires licensed and certified electricians, elevator mechanics, and plumbers to have their appropriate certifications or licenses and photo identification card in their possession while working.
- Gives the department the authority to adopt a rule to require electricians, plumbers, and conveyance workers to wear and visibly display their licenses, certificates, permits, and endorsements while working, and to include photo identification on these documents.
HB 1366 – Making technical changes to boiler and unfired pressure vessel statutes.
- Eliminates unnecessary inspections by amending the two-year requirement for internal inspections of hot water heating boilers.
- Makes terms consistent throughout the law.
- Revises the current exemptions to be consistent with the adopted national standard.
2SHB 1481 – Regarding electric vehicles.
- Effective July 26, 2009
- Promotes the installation of electric vehicle infrastructure through tax relief, zoning allowances, and partnership agreements allowing private enterprise (charging stations) on public lands.
- The bill also requires that state agencies and local governments achieve electricity or biofuel fleet fuel usage requirements of forty percent by June 1, 2013.
- By December 31, 2015, the state must, to the extent practicable, install electrical outlets capable of charging electric vehicles in each of the state's fleet parking and maintenance facilities.
- Section 16 requires that electric vehicle infrastructure must meet electrical standards adopted by the department and the state building code council.
SSB 5793 – Concerning a single-occupancy farm conveyance.
- Effective July 26, 2009
- Removes the department's responsibility to perform acceptance and annual inspection of hand-powered manlifts that are privately owned and operated by the farm owner or family members of the owner.
- Manlifts would still be inspected if workers used the lifts or if a worker was hurt on the lift under the safety and health laws.
E2SSB 5850– Protecting workers from human trafficking violations.
- Effective July 26, 2009
- Requires international labor recruitment agencies and domestic employers of foreign workers must provide a disclosure statement to foreign workers, not including those persons who hold an H-1B visa, who have been referred to or hired by a Washington employer.
- The disclosure statement must be provided in English or the language understood by the worker and must include information on applicable state and federal laws.
- The Department of Labor and Industries (L&I) may create a model disclosure form and make the form available for download off its website.
ESSB 5873– Regarding apprenticeship utilization.
- Effective July 26, 2009
- Phases in an apprenticeship utilization requirement for four-year institutions of higher education for contracts advertised for bid on or after January 1, 2010.
- Establishes penalties for contractors found to be working apprentices out of ratio, with inappropriate supervision, or outside their scope of the Apprenticeship Standards approved by the Washington State Apprenticeship and Training Council.
- Contractors who are found in violation in these areas may have their responsible bidder status revoked for the first violation and be barred from bidding on any public works contract for five years upon the second violation.
- Creates rulemaking authority to ensure due process protections for all parties and to strengthen the accountability for approved apprenticeship committees.
SB 5903 – Regarding public works contracts for residential construction.
- Effective July 26, 2009
- Requires that if an awarding agency of a public works contract determines that the work meets the definition of residential construction, the contract must state that the workers of the contract are paid at least the minimum prevailing wage rate.
- If it is later determined that the work performed on the public works contract is actually commercial and not residential, the awarding agency will be responsible for paying the additional prevailing wage rates.
SSB 5904 – Defining independent contractor for purposes of prevailing wage.
- Effective July 26, 2009
- Defines when a worker is an independent contractor for prevailing wage purposes consistent with the definition in both the workers' compensation and unemployment insurance laws.
Workers' Compensation
SHB 1402 – Restricting contact with medical providers after appeals have been filed under industrial insurance.
- Effective July 26, 2009 (Scheduled for action on May 7, 2009)
- Prescribes under what circumstances parties to a claim (employer, worker, and department) can have contact with medical providers when an issue is on appeal.
- Limits contact with potential medical witnesses by opposing parties once an appeal of a department decision has been received by the parties.
- Provides how communications by a self-insurer or state fund employer can occur with any medical provider or consultant who has treated the worker, and how communication by the worker and worker's representatives can occur with medical examiners who examined the worker at the request of the self-insurer (IMEs).
- Contact can be made upon release by the party. If release is not granted, contact is limited to that which is in writing sent to all parties, in person, by telephone or videoconference, at a date and time mutually agreed to by all parties, or by deposition.
- Contact with medical providers by the department is allowed until hearings are scheduled and witnesses named.
- Contact is allowed with those medical providers or examiners who are not confirmed as witnesses once confirmation has occurred. The provisions only apply to issues set forth in the notice of appeal.
- A medical provider who discusses issues on appeal with a party in violation of the legislation shall not be liable for such communication.
ESHB 2105 – Concerning diagnostic imaging services.
- Effective April 28, 2009
- Creates a workgroup of representatives from state agencies, the state radiological society, the state medical society, the Puget Sound Health Alliance, the state hospital association, the state health care forum, and health carriers to identify evidence-based best practice guidelines and to report their findings to the Governor and the legislature by July 1, 2009.
- State agencies are directed to implement the guidelines identified by the workgroup by September 1, 2009.
- The workgroup is also directed to explore the feasibility of using the guidelines for health care services that are purchased from or through health carriers by January 1, 2011.
2SSB 5346 – Concerning administrative procedures for payors and providers of health care services.
- Effective July 26, 2009
- This bill is in response to a Blue Ribbon Commission and Office of the Insurance Commissioner (OIC) reports relating to ways to achieving efficiencies and reducing health care administrative costs.
- OIC must designate a lead organization, which hasmultiple deliverables relating to a uniform electronic processes, standardization of documents and electronic eligibility, patient-cost sharing, use of National Correct Coding Initiative and Health Insurance Portability and Accountability Act standard group codes, guidelines to ensure payors do not automatically deny claims for services in certain circumstances, and develop a website for certain purposes relating to this bill.
- The Department of Social and Health Services, the Health Care Authority, and theDepartment of Labor and Industries, to the extent possible under their laws in Title 51, mustadopt the processes and guidelines recommended by the lead organization.
SSB 5501 – Concerning the secure exchange of health information.
- Effective July 26, 2009
- Charges the administrator of the Health Care Authority to assign a lead organization to work with representatives from providers, payors, and patients to establish guidelines, standards, and processes related to the secure electronic exchange of medical information.
2SSB 5945 – Creating the Washington Health Partnership Plan.
- Effective July 26, 2009
- Outlines principles that should guide healthcare reform in Washington.
2008 Legislative Session
L&I Agency Request Legislation
HB 2955: Ensuring access to criminal justice information – multi agency
- Effective June 12, 2008.
- Provides the authority for L&I, DSHS, ESD, DOL, Criminal Justice Training Commission, and the Office of the Attorney General (AGO) to access criminal history information when conducting investigations of potential fraud and abuse.
EHB 3381: Relating to fees to implement programs that protect and improve Washington's health, safety, education, employees, and consumers.
Although this is not an agency request bill, it was the bill that included the agency's three fee-related proposals:
- Prevailing wage (Sec 2): Effective June 12, allows L&I to increase the filing fee for prevailing wage intents and affidavits from $25 to $40.
- Factory Assembled Structures/Mobile/Manufactured Homes (Sec 4): Effective immediately, eliminates a sunset revision so that L&I is able to retain fees at current levels with ongoing inflationary increases.
- Explosives (Secs. 5-11): Effective immediately, provides increases and the authority to adjust annual and renewal explosives licensing fees and directs these moneys be deposited into the medical aid and accident accounts.
SB 6839:Regarding workers' compensation coverage for work performed outside Washington
- Effective June 12, 2008.
- Defines temporary and incidental work as work performed by Washington employers on jobs or at jobsites in another state for thirty or fewer consecutive or nonconsecutive full or partial days within a calendar year. Temporary and incidental days are considered on a per state basis.
- Requires Washington employers to obtain industrial insurance coverage from Washington for temporary and incidental work outside Washington and authorizes the Department to adopt rules concerning premiums for work in excess of temporary and incidental.
- 2 FTEs (1 project and 1 permanent Industrial Insurance Underwriter) were funded to manage all the employer accounts (working out of state), serve as a technical expert in regards to premium obligations and coverage decisions, manage and negotiate reciprocal agreements, provide internal and external education and outreach, and assist with the rulemaking and data collection for the required report to the Workers' Compensation Advisory Committee.
Fraud and Audit
ESHB 3122: Relating to consolidating, aligning, and clarifying exception tests for determination of independent contractor status under unemployment compensation and workers' compensation laws.
- Effective June 12, 2008.
- Creates test for determining whether a construction worker is a covered worker or uncovered independent contractor for purposes of unemployment and industrial insurance laws.
- Makes the test easier to follow and brings it into close alignment with the test for other industries.
- Closes a loophole that previously allowed firms without a current business registration with Dept of Revenue to meet exemption tests.
2SSB 6732: Implementing the recommendations of the joint legislative task force on the underground economy in the construction industry.
- Effective June 12, 2008.
- Implements recommendations of the Joint Legislative Task Force on the Underground Economy in the Construction Industry and extends the term of the Task Force through December 2008.
- Certain penalties are increased or established which include a civil penalty for persons who falsify information on a contractor registration application and a prohibition on contractors bidding on public works projects if they violate contractor registration laws, misrepresent payroll of employee hours to L&I, or engage in business without a workers' compensation account.
- 8 FTEs and $1,706,000 for FY 09 to provide additional enforcement staff, dedicated Assistant Attorney Generals, outreach, etc.
Insurance Services
SHB 2885: Modifying industrial insurance coverage for geoduck harvesters.
- Effective January 1, 2009.
- Amends RCW 51.12.120 to eliminate the inclusion of workers tending to geoduck divers and tenders from industrial insurance coverage.
E2SHB 3139: Providing for stays of industrial insurance orders on appeal
- Effective June 12, 2008 except Section 2 which is effective January 1, 2009.
- Provides that industrial insurance benefits are paid pending an appeal by an employer unless the Board of Industrial Insurance Appeals orders a stay or the worker requests that benefits cease.
- Requires L&I to establish procedures to recoup self-insured overpayments from state fund claims, and vice versa.
- Establishes a self-insured employer overpayment reimbursement fund, financed by amounts retained from employee earnings, to reimburse self-insured employers for overpayments under certain circumstances.
- Prohibits overpayments from health care providers and provides for collecting these overpayments from health insurance entities.
- Requires L&I to measure the impacts of the legislation and report to the Legislature and the Workers' Compensation Advisory Committee by July 1 and December 1, 2009, 2010, and 2011.
SSB 6246: Authorizing travel expenses for closed industrial insurance claims.
- Effective June 12, 2008.
- Allows for the payment of reasonable travel expenses after claim closure when travel is required to repair, replace, or otherwise alter prosthetics, orthotics, or similar permanent mechanical appliances.
- This bill excludes travel for the repair or replacement of hearing-aid devices.
E2SHB 2549: An act relating to establishing patient-centered primary care pilot projects.
- Effective June 12, 2008.
- The Department of Health (DOH) is directed to establish a medical home collaborative program for primary care practices.
- The results and recommendations could mean greater numbers of primary care providers who are better paid for the coordination aspects of care and may improve access and quality of care for injured workers in the future.
Specialty Compliance Services
SHB 2580: Concerning pay dates for employees participating in state active military duty.
- Effective June 12, 2008.
- National Guard and Washington State Guard members who are called to participate in state active duty must be paid by the Military Department no later than seven days after whichever occurs first, either the duty has ended or the end of the pay period.
SHB 2602: An act relating to increasing the safety and economic security of victims of domestic violence, sexual assault, or stalking.
- Effective upon signature by the Governor - immediately.
- Requires employers to provide reasonable leave to employees who are victims of domestic violence, sexual assault, or stalking, or whose family members are victims.
- 3 FTEs are funded as well as an additional 0.5 AAG ($214,000 for FY 2009).
ESHB 2687: Making 2008 operating supplemental appropriations.
- Effective upon signature by the Governor – immediately.
- Section 218 (21) provides $40,000 for L&I to conduct a review of the need for regulation and licensing/credentialing of contractors involved in single-family homes and report back to the Legislature by October 1, 2008.
- Section 218 (23) provides L&I the authority to increase fees for the plumber certification and boiler programs up to the fiscal growth factor for FY 2008.
HB 2699: An act relating to recodifying RCW 19.48.130 as a section in the Washington minimum wage act.
- Effective June 12, 2008.
- Moves the section requiring disclosure of service charges from the hotels, lodging houses, and restaurants chapter to the Minimum Wage Act.
- Under this law, employers are required to disclose to the customer the percentage of the automatic service charge (ASC) that the employer pays to the employee serving the customer.
ESSB 5831: Relating to certification of heating, ventilation, air conditioning, and refrigeration contractors and mechanics.
- Effective June 12, 2008.
- Creates a joint legislative task force on heating, ventilating, air conditioning, and refrigeration charged with a review of requirements and methods of licensing HVAC/R mechanics.
SB 6447: To allow unpaid leaves of absence for military personnel needs.
- Effective June 12, 2008.
- To provide employees married to a member of the armed services up to 15 days of unpaid leave when their military spouse is on leave.
SB 6950: Providing a limited waiver or suspension of statutory obligations during officially declared emergencies.
- Effective June 12, 2008.
- During a state of emergency, the Governor may waive or suspend the collection of fees for permits and inspections charged by the agencies.
- For L&I this bill specifically relates to the collection of fees associated with the boiler, electrical, elevator, and factory assembled structures program.
2007 L&I Legislation Summary
Governor's Request Legislation
ESSB 5920 - Workers' comp vocational rehabilitation.
- Effective January 1, 2008.
- The bill makes significant changes in Washington's vocational rehabilitation system, including increased benefits and choices for injured workers, and accountability for all parties.
- Available retraining benefits are increased to up to $12,000, and a retraining program can be up to two years in duration.
- Workers will have a choice to "opt-out" of retraining, after working with a vocational professional to develop a possible retraining plan. Selecting this option will result in an award equal to six months time-loss. The worker will have the ability to use the available tuition money after claim closure.
- An independent study of the outcomes for workers and employers is included. An external vocational rehabilitation committee is also established that will assist with implementation of the legislation and provide an ongoing business and labor partnership concerning vocational rehabilitation services.
- The bill includes placement of L&I professional vocational staff at some WorkSource locations. L&I will provide all vocational services to selected workers during the pilot period. These professionals, along with other L&I staff, will work with local business organizations, training schools, and others to develop additional training opportunities for injured workers.
- All changes will be piloted for a period of five and a half years to test the impact the new vocational rehabilitation benefits and options have on outcomes for Washington workers and costs to the employers and workers' compensation system.
- $2,247,000 is provided to implement the bill. The budget will support additional staff to oversee implementation of the legislation and aid in quality improvements, provide vocational services in WorkSource locations, and assist with alternative training program development. Funds are also included for computer system changes, and for the costs of the independent study and data analysis needs. An additional budget proviso includes $822,000 for potential salary needs for L&I's professional vocational rehabilitation staff due to changes in job duties because of the legislation.
Agency Request Legislation
HB 1370 - Public workers excluded from prevailing wages on public works provisions
- Effective July 22, 2007.
- Eliminates the reference to monthly or per diem salary.
- Clarifies that the chapter does not apply to public employees (employed by the state or any public agency, municipality or subdivision).
- The change would preserve current practices, policies and application of the prevailing wage laws.
SHB 1843 - Regulation of construction contractors
- Effective July 22, 2007.
- Closes several loopholes to better protect consumers - Cabinet Makers, Owner Builders, etc.
- Provide better legal notice by requiring the department is notified when a judgment is rendered. Adds a penalty for failure to notify.
- Increases penalties and enforcement.
ESSB 5290 - Workers' comp medical and chiropractic advisory committees
- Effective July 22, 2007.
- Establishes a medical advisory committee.
- Medical advisory committee will advise the department on medical issues to assure workers receive effective and safe treatment in a cost-effective manner.
- Medical advisory committee will assist the department in the development of medical treatment guidelines and coverage criteria, assessments of new technology, and rules pertaining to health care issues.
- Establishes the existing chiropractic advisory committee in statute.
- Chiropractic advisory committee shall advise the department concerning safe, effective, and cost-effective chiropractic treatments for workers.
- Members of the committees will be compensated for participation on the committee and will be immune from civil liability for their committee work.
- $558,000 is provided for the advisory committees' costs.
SSB 5443 - Workers' comp claim suppression
- Effective July 22, 2007.
- Defines claim suppression and prohibits employers from engaging in the suppression of industrial insurance claim.
- The director is granted the authority to subpoena records necessary to validate whether claim suppression has occurred.
- Penalties can be assessed, depending on the size of the employer and prior findings of claim suppression.
- L&I is required to develop rules defining first-aid and bona fide safety and accident prevention programs as these are not considered 'claim suppression'.
- Clarifies that findings of claim suppression can be appealed to the Board of Industrial Insurance Appeals.
- $363,000 is included for two additional FTEs to investigate claim suppression complaints and allegations.
Agency-Wide
EHB 1214 - Text messaging while driving
- Effective January 1, 2008. A person operating a motor vehicle while reading, manually writing, or sending a text message while driving is guilty of a traffic infraction.
EHB 1525 - Regulatory fairness
- Effective July 22, 2007.
- Pertains to Small Business Economic Impact Statements (SBEIS).
- Redefines the term "industry" and adds a definition of "minor costs."
SHB 2366 - State facility planning
- Effective July 22, 2007.
- The director of general administration, on behalf of the agency involved and after consultation with the OFM, shall purchase, lease, lease purchase, rent, or otherwise acquire all real estate.
- OFM approval required to execute any lease.
- Creation of policies and standards on conducting life-cycle cost analysis to determine the cost-effectiveness of owning or leasing state facilities.
ESB 5508 - Economic development projects
- Effective July 22, 2007.
- Ensures the public is informed of their rights associated with permits. The bill would require the department to provide applicants:
- The minimum and maximum time it will take to make a decision on a permit;
- The minimum amount of information required for an agency to make a decision on a permit;
- When an agency considers an application complete for processing;
- The minimum and maximum costs in agency fees that will be incurred by the permit applicant; and
- The reasons for a denial of a permit in writing.
ESSSB 5659 - Family medical leave
- Creates a family leave insurance program to allow parents to bond with a newborn or newly placed child.
- Establishes a 13-member joint legislative task force to study and make recommendations concerning the program, including how it should be funded and the responsible administering agency.
- Establishes the benefit at up to five weeks and $250 per week effective October 1, 2009.
ESSB 5915 - Unemployment and industrial insurance notices required to be posted by employers
- Effective July 22, 2007.
- L&I is required to send an employer any printed materials, required or recommended by the department to be posted, when the employer files a master application to obtain industrial insurance.
- L&I is required to send a new copy of each poster or notice to every employer when there are substantive changes in the information.
- $150,000 is provided to implement this bill. These funds will allow the department to provide a one-time mailing to all employers with all current posters and notices.
SB 5926 - Creating a joint legislative task force to review the underground economy in the construction industry
- Effective May 2, 2007.
- Creates a joint legislative task force to study the impact of the underground economy in the construction industry.
- L&I have a nonvoting member on the task force and cooperate with the task force and the institute for public policy and provide information and data to them.
E2SSB 5930 - Providing high quality, affordable health care to Washingtonians based on the recommendations of the blue ribbon commission on health care costs and access
- Effective July 22, 2007.
- L&I (together with DSHS, HCA and DOH) is required to develop a 5 year plan to integrate disease and accident prevention and health promotion into all state programs, by September 1, 2007.
- L&I representative will need to participate in the strategic planning activities.
Insurance Services
SHB 1244 - Defining wages for industrial insurance purposes (employer-provided health care benefits)
- Effective July 22, 2007.
- Requires that the value of employer-provided healthcare benefits be included in the calculation of an injured worker's wages when the employer stops contributing to the healthcare, rather than when the worker is no longer entitled to the healthcare benefit.
- Injured worker wages will include the employer's contribution for health care as long as the employer was contributing toward the benefits at the time of injury and stopped making the contribution. The employer's contribution will be added effective the date contributions stop.
SHB 1500 - Recovery of prior permanent partial disability awards - workers' comp pension cases
- Effective July 22, 2007.
- This bill amends RCW 51.32.080 to create options for deducting a prior permanent partial disability (PPD) award from a subsequent pension award.
- The worker will be allowed to choose whether to have the prior PPD deducted from their monthly pension benefits having the amount of the PPD charged to their pension reserve with the monthly benefits reduced accordingly.
- The provisions apply to all pension orders issued on or after the effective date of the bill.
HB 1501 - Workers' comp Social Security offset adjustments
- Effective July 22, 2007.
- Permanently allow retroactive adjustments of benefits on closed claims.
- The new legislation eliminates the sunset and makes the ability to retroactively adjust benefits, under certain circumstances, a permanent part of the statute.
- Allows the department to appropriately reimburse workers when their claim is closed but the Social Security Administration has recalculated federal benefit levels
HB 1666 - Extending the authority of nurse practitioners to examine, diagnose, and treat injured workers covered by industrial insurance
- Effective May 22, 2007.
- Eliminates the sunset provision of the 2004 legislation.
- Allows ARNPs to be attending physicians for workers' comp claims permanently.
HB 1722 - Physicians assistants'(PAs) authority
- Effective May 2, 2007.
- Eliminates the sunset provision of the 2004 legislation.
- L&I is required to accept the signature of a PA on any certificate, card, form, or other documentation required by the department that the PA's supervising physician or physicians may sign, provided it is within the PA's scope of practice.
- The bill does not allow PAs to rate permanent disability.
- L&I is required to report to Legislature on the implementation and its effects on injured worker outcomes, claims, costs, and disputed claims by December 1, 2008.
ESHB 1833 - Expanding the presumption of occupational disease for firefighters
- Effective July 22, 2007.
- Amends the existing presumptive coverage statute for firefighters, and provides legislative intent language.
- Includes performance of job duties under strenuous physical exertion when engaged in firefighting activities.
- Expands the presumptive coverage for heart problems occurring within 24 hours of exposure to 'strenuous physical exertion' during firefighting activities.
- Adds multiple myeloma, colorectal, testicular, and prostate cancer diagnosed before age 50 to the list of cancers presumed to be related to firefighting.
- Firefighting duties are defined.
HB 1949 - Geoduck divers
- Effective July 22, 2007.
- Provides industrial insurance coverage to commercial divers harvesting geoduck clams, workers tending to such divers, and the employers of such divers and tenders with industrial insurance issued by L&I.
EHB 2105 - Workers' comp first-fill prescriptions
- Effective January 1, 2008.
- L&I is required to report to legislative committees on the implementation by December 1, 2009.
- L&I is required, on state fund claims only, to pay for prescription drugs provided at the initial treatment visit, for any alleged injury if a workers' compensation claim is filed.
- The payment for these first prescriptions is required whether the claim is allowed or not.
SSB 5053 - Workers' comp self-insured worker ombudsman
- Effective July 22, 2007.
- Creates an Ombudsman for Self-Insurance, to be appointed or contracted by the governor for a term of six years, and report to the director.
- Ombudsman will act as an advocate for self-insured injured workers, offer and provide information on industrial insurance to self-insured workers, identify, investigate and facilitate resolution of complaints of the workers, maintain a statewide toll-free number and refer complaints to the department when appropriate.
- Ombudsman will develop referral procedures for complaints to the L&I which would act on the referrals as quickly as possible.
- Ombudsmen are required to file an annual report to the governor beginning October 2008.
- $873,770 is provided for the costs of FTEs or of a contracted ombudsman. These costs will be recovered through an administrative assessment to self-insurers.
ESB 5675 - Workers' comp minimum benefits
- Effective July 1, 2008.
- Increases minimum industrial insurance benefits for survivors, pension and time-loss recipients.
- The new minimum rates would apply to workers with a date of injury or disease after June 30, 2008, to allow the department adequate time for system development.
- The level will be automatically adjusted each year in the same manner as workers' compensation cost-of-living increases.
- Minimum benefits for an individual injured worker are capped at 100% of his or her wages as calculated under RCW 51.08.178.
- Workers also cannot receive less than the minimum benefit levels that exist today.
- $104,000 is provided annually for increased benefits for crime victims from the Public Safety and Education account.
- $722,000 for system changes needed to implement the bill.
SSB 5676 - Loss-of-earning power; kept-on-salary
- Effective July 22, 2007.
- Prior closure of a claim or receipt of permanent partial disability (PPD) shall not affect the rate at which loss of earning power (LEP) benefits are calculated upon claim reopening.
- Employers who provide kept-on-salary (KOS) to workers cannot do so by mandating the worker's use of sick leave, holiday or vacation pay, or similar benefits. In these instances, workers will continue to be entitled to time-loss benefits.
SSB 5688 - Workers' comp claimant representatives
- Effective July 22, 2007.
- Allows an injured worker to have their claim information forwarded to a representative without regard to whether the claim has been allowed or denied.
SHB 1128 - Operating Budget - Provisos
- $8 million to establish a program of safety and health projects, giving priority to those fostering accident prevention through cooperation between employers and employees or their representatives.
- $600,000 to contract with independent expert(s) to evaluate and recommend improvements to the retrospective rating plan, including analysis of how risks are pooled, the effect of including worker premium contributions in the adjustment calculations, incentives for accident and illness prevention, return-to-work practices, and other sound risk-management strategies consistent with recognized insurance principles.
- $605,000 for a study of the incidence of permanent total disability pensions in the state's workers' compensation system. Working with the workers' compensation advisory committee, the department shall contract with a researcher that has demonstrated expertise in workers' compensation systems. The study must consider causes of the increase in pension cases, future anticipated total disability trends, a comparison of Washington's total disability claims experience with that of other states and jurisdictions, the impact of Washington's employability standard and vocational rehabilitation on the incidence of pensions.
Division of Occupational Safety and Health
- Effective January 1, 2010.
- Crane operators are required to have operating experience up to 2,000 hours according to crane type and capacity determined by the department.
- L&I is required to establish, by rule, a construction crane certification program and a construction crane operator certification program.
- Construction crane inspections would be conducted yearly by private sector inspectors certified by the L&I.
- Construction crane operators are required to obtain a valid crane operator certificate issued by an accredited crane operator testing organization accredited by a national accrediting agency.
- Specific construction crane exceptions are provided for in the bill; manufacturing facilities are not covered with minor exception.
- Crane operators are required to have operating experience up to 2,000 hours according to crane type and capacity determined by the department.
- Provides approximately $1.2 million and 11 FTEs per biennium, ongoing.
SHB 1128 - Operating Budget - Proviso
- $8 million to establish a program of safety and health projects, giving priority to those fostering accident prevention through cooperation between employers and employees or their representatives.
Specialty Compliance Services
SHB 1328 - Public workers excluded from prevailing wages on public works provisions
- Effective July 22, 2007.
- Increases the threshold for awarding agencies to utilize the alternate filing procedure for Intents and Affidavits from $2,500 to $35,000 where the limited public works process under RCW 39.04.155(3) is followed.
- These filings will still be required to pay the fees associated with normal Intent to Pay and Affidavit of Wages Paid.
HB 1457 - Youth soccer referees
- Effective July 22, 2007.
- Eliminates the requirement of a superior court order for a minor to be employed as a youth soccer referee provided they are nationally certified.
SHB 1898 - Apprenticeship utilization requirements/school district public works projects.
- Effective July 22, 2007.
- Establishes apprenticeship utilization requirements for school district public works projects. Effective: 1/1/08, $3 million projects require 10%; 1/1/09, $2 million projects require 12%; and 1/1/2010, $1 million projects require 15%.
SHB 2118 - Transferring responsibilities related to mobile and manufactured home installation from CTED to L&I.
- Effective July 1, 2007.
- L&I will be required to administer and enforce the Installer program and shall perform all consumer complaint and related functions as required for the purpose of complying with regulations regarding manufactures homes as established by HUD.
ESSHB 2284 - Care Providers - Training
- Effective July 22, 2007.
- Task Force is required to establish a fifteen-member Workgroup.
- Workgroup will evaluate current training requirements for long-term care workers, and make recommendations related to: training hours, training curricula, and the development of criteria associated with certification of new long-term care workers.
- The work group will include a director appointed representative of the department of Labor & Industries with expertise in apprenticeship programs.
For more legislative information, go to: www.leg.wa.gov.
For questions, contact Tamara Jones, L&I's Assistant Director of Legislative and Governmental Affairs.