BILL REQ. #:  H-1375.1 

Read first time 02/08/11.   Referred to Committee on Labor & Workforce Development.

     AN ACT Relating to imposing penalties for violations by certain self-insurers, third-party administrators, and claims management entities; amending RCW 51.32.200; and adding new sections to chapter 51.08 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 51.08 RCW to read as follows:
     "Third-party administrator" means any entity that contracts to administer workers' compensation claims for self-insured employers qualified under RCW 51.14.020 and certified pursuant to RCW 51.14.030.

NEW SECTION.  Sec. 2   A new section is added to chapter 51.08 RCW to read as follows:
     "Claims management entity" means any individual designated by a self-insured employer qualified under RCW 51.14.020 and certified pursuant to RCW 51.14.030 to administer workers' compensation claims including self-administered organizations and third-party administrators.

Sec. 3   RCW 51.32.200 and 1971 ex.s. c 289 s 48 are each amended to read as follows:
     (1) If a self-insurer as defined in RCW 51.08.173 or a third-party administrator or claims management entity as defined by chapter 51.08 RCW fails, refuses, or neglects to comply with a compensation order which has become final and is not subject to review or appeal or refuses to timely provide or pay for treatment or vocational services, the director or any person entitled to compensation under the order may institute proceedings for injunctive or other appropriate relief for enforcement of the order and the worker or a representative of the worker may file suit against the self-insured employer, third-party administrator, or claims management entity. These proceedings may be instituted in the superior court for the county in which the claimant resides, or, if the claimant is not then a resident of this state, in the Thurston county superior court ((for the county in which the self-insurer may be served with process)).
     (2) The superior court shall enforce obedience to the order by proper means, enjoining compliance upon the person obligated to comply with the compensation order. The court may issue such writs and processes as are necessary to carry out its orders. Additionally, the court may, after finding that a self-insurer, third-party administrator, or claims management entity has failed, refused, or neglected to pay compensation and benefits or timely provide or pay for treatment or vocational services due the entitled party, increase the unpaid compensation and benefits to an amount not to exceed three times the amount of unpaid compensation and benefits due the worker and award reasonable attorneys' fees as well as actual and statutory litigation costs.
     (3) A proceeding under this section does not preclude other methods of enforcement provided for in this title or available under chapter 51.48 RCW.