Event Details

Requirements of Decertified Self-Insured Employer Groups and Municipalities (HB 1275 Implementation)

Public Hearing on Proposed Rules
Wednesday, May 27, 2026
1 p.m.

Location

To join electronically (Zoom):
https://lni-wa-gov.zoom.us/j/88958799494?pwd=5WUmfnrIGr2Oi4kjyzVE6kV84ZsKwO.1
Meeting ID: 889 5879 9494
Passcode: ZH?i5Y*K

To join by phone (audio only):
253-205-0468 US
253-215-8782 US (Tacoma)

The public hearing will begin at 1:00 p.m. and will continue until all oral comments are received.

L&I encourages the submittal of written comments, due by 5:00 p.m. on May 31, 2026.

Purpose

The purpose of this rulemaking is to implement House Bill 1275 (HB 1275), Chapter 57, Laws of 2025, under Chapter 296-15 WAC. HB 1275 ensures decertified self-insurers remain liable for their self-insured claims and reimburse the Department of Labor & Industries (L&I) for all payments made. HB 1275 also directs L&I to adopt rules regarding continuing obligations of decertified self-insured employers and methods of how the self-insured employer shall meet financial obligations. In 2023, the legislature passed Substitute House Bill 1521, establishing a duty of good faith and fair dealing for certain self-insured employers, which included municipal and group employers. If a municipal or group self-insured employer accrues three violations within a three-year period, the law says they shall be decertified. Since municipal and group self-insurers are not required to provide surety nor pay into the insolvency trust fund, this presented a funding issue if this situation ever occurred. To cover this gap, L&I proposed legislation in 2025, which passed as HB 1275, creating RCW 51.14.500, and establishing the direction and authority for the department to adopt these rules.