S-2233

AN ACT Relating to establishing a performance audit and operations review of the state workers' compensation system; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature recognizes the importance of the state workers' compensation program in providing medical and financial services to workers who are injured on the job and facilitating their return to employment and a productive life. In addition, the legislature considers periodic performance audits to be of assistance in determining the impact of state programs and in developing findings and recommendations that ensure the most effective use of worker, employer, state agency, and public time and resources.

NEW SECTION. Sec. 2. The joint legislative audit and review committee, in consultation with a legislative advisory committee and the workers' compensation advisory committee established under RCW 51.04.110, shall conduct a performance audit of the state workers' compensation program within the department of labor and industries. The legislative advisory committee is comprised of four legislative members, two from the house of representatives committee on commerce and labor and two from the senate committee on commerce and labor, one from each caucus respectively. House of representatives members are appointed by the speaker of the house of representatives, and senate members are appointed by the president of the senate.

The performance audit shall review the following issues:

(1)(a) The organizational structure of the workers' compensation system and its effectiveness;

(b) The management principles, program process, and ongoing practices of the workers' compensation system;

(2)(a) The program's taxation system, including the method of collection and the manner in which funds are prioritized and distributed;

(b) The use of all revenues generated from reserve surpluses and all other fund sources;

(3) The types of services and programs within the system;

(4) The level of cooperation and continuity between program and services;

(5) The effectiveness of the department in providing the sure and certain relief to injured workers guaranteed by the state constitution;

(6) The effectiveness of the workers' compensation system in returning injured workers to work and meeting other system goals;

(7) The level of customer satisfaction of workers and employers participating in the system;

(8) The current method by which the department internally reviews and determines the workers' compensation program effectiveness and performance and its process for responding to its findings or recommendations;

(9) The manner in which the workers' compensation system coordinates its activities with other programs or activities within the department or other state agencies, including: WISHA, employment security, department of revenue, and the work force education, training, and coordination board;

(10) The cost-effectiveness, efficiency, and long-term impact of the state workers' compensation system as compared with other private and public sector delivery systems; and

(11) Any other item considered necessary by the joint legislative audit and review committee.

NEW SECTION. Sec. 3. The joint legislative audit and review committee is directed to contract with a private entity that is not affiliated with an insurance company, brokerage, or agency, consistent with the provisions of chapter 39.29 RCW. The committee shall consult with the legislative advisory committee and the workers' compensation advisory committee in the design of the request for proposals from potential contractors and in the choice of a performance audit contractor. The committee shall provide an interim report on its findings and recommendations to the appropriate house of representatives and senate standing committees by December 31, 1997, and a final report by August 1, 1998.

NEW SECTION. Sec. 4. The department of labor and industries shall actively cooperate with the committee in the course of the audit performance and provide information and assistance as necessary. Funding for the performance audit in the amount, as determined by the joint legislative audit and review committee, is provided from the nonappropriated medical aid fund within the department of labor and industries.

NEW SECTION. Sec. 5. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.