Passed by the House May 23, 2011 Yeas 69   ________________________________________ Speaker of the House of Representatives Passed by the Senate May 23, 2011 Yeas 35   ________________________________________ President of the Senate | I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED HOUSE BILL 2123 as passed by the House of Representatives and the Senate on the dates hereon set forth. ________________________________________ Chief Clerk | |
Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2011 1st Special Session |
AN ACT Relating to stabilizing workers' compensation premium rates and claim costs through the limited means of creating the stay-at-work program, suspending cost-of-living adjustments for fiscal year 2012 with no catch-up and delaying the initial adjustment, allowing claim resolution structured settlements for injured workers age fifty-five and older effective 2012, fifty-three and older effective 2015, and fifty and older effective 2016, adjusting pension benefits for prior permanent partial disability awards, eliminating the interest on permanent partial disability award schedules, providing safety and health investment grants, creating the industrial insurance rainy day fund, directing the department of labor and industries to increase its employer, worker, and provider fraud prevention efforts, requiring a performance audit by the joint legislative audit and review committee of workers' compensation claims management in the workers' compensation system to include self-insured claims, and studying occupational disease claims in the workers' compensation system; amending RCW 51.32.072, 51.32.075, 51.52.120, 51.32.080, 51.04.110, 51.44.100, and 43.79A.040; reenacting and amending RCW 51.32.090; adding new sections to chapter 51.04 RCW; adding a new section to chapter 49.17 RCW; adding a new section to chapter 51.44 RCW; creating new sections; providing an expiration date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 The legislature finds that Washington
state's workers' compensation system should be designed to focus on
achieving the best outcomes for injured workers. The state must ensure
that the workers' compensation system remains financially healthy in
order to provide needed resources for injured workers. Further, the
legislature recognizes that reducing the number and cost of long-term
disability and pension claims, while strengthening safety programs;
addressing workers' compensation system fraud by employers, workers,
and providers; finding ways to improve claims management processes;
studying occupational disease claims in the workers' compensation
system; and establishing a fund for purposes of maintaining low,
stable, and predictable premium rate increases are all key to ensuring
productive worker outcomes and a financially sound system for
Washington workers and employers.
Sec. 101 RCW 51.32.090 and 2007 c 284 s 3 and 2007 c 190 s 1 are
each reenacted and amended to read as follows:
(1) When the total disability is only temporary, the schedule of
payments contained in RCW 51.32.060 (1) and (2) shall apply, so long as
the total disability continues.
(2) Any compensation payable under this section for children not in
the custody of the injured worker as of the date of injury shall be
payable only to such person as actually is providing the support for
such child or children pursuant to the order of a court of record
providing for support of such child or children.
(3)(a) As soon as recovery is so complete that the present earning
power of the worker, at any kind of work, is restored to that existing
at the time of the occurrence of the injury, the payments shall cease.
If and so long as the present earning power is only partially restored,
the payments shall:
(i) For claims for injuries that occurred before May 7, 1993,
continue in the proportion which the new earning power shall bear to
the old; or
(ii) For claims for injuries occurring on or after May 7, 1993,
equal eighty percent of the actual difference between the worker's
present wages and earning power at the time of injury, but: (A) The
total of these payments and the worker's present wages may not exceed
one hundred fifty percent of the average monthly wage in the state as
computed under RCW 51.08.018; (B) the payments may not exceed one
hundred percent of the entitlement as computed under subsection (1) of
this section; and (C) the payments may not be less than the worker
would have received if (a)(i) of this subsection had been applicable to
the worker's claim.
(b) No compensation shall be payable under this subsection (3)
unless the loss of earning power shall exceed five percent.
(c) The prior closure of the claim or the receipt of permanent
partial disability benefits shall not affect the rate at which loss of
earning power benefits are calculated upon reopening the claim.
(4)(a) The legislature finds that long-term disability and the cost
of injuries is significantly reduced when injured workers remain at
work following their injury. To encourage employers at the time of
injury to provide light duty or transitional work for their workers,
wage subsidies and other incentives are made available to employers
insured with the department.
(b) Whenever the employer of injury requests that a worker who is
entitled to temporary total disability under this chapter be certified
by a physician or licensed advanced registered nurse practitioner as
able to perform available work other than his or her usual work, the
employer shall furnish to the physician or licensed advanced registered
nurse practitioner, with a copy to the worker, a statement describing
the work available with the employer of injury in terms that will
enable the physician or licensed advanced registered nurse practitioner
to relate the physical activities of the job to the worker's
disability. The physician or licensed advanced registered nurse
practitioner shall then determine whether the worker is physically able
to perform the work described. The worker's temporary total disability
payments shall continue until the worker is released by his or her
physician or licensed advanced registered nurse practitioner for the
work, and begins the work with the employer of injury. If the work
thereafter comes to an end before the worker's recovery is sufficient
in the judgment of his or her physician or licensed advanced registered
nurse practitioner to permit him or her to return to his or her usual
job, or to perform other available work offered by the employer of
injury, the worker's temporary total disability payments shall be
resumed. Should the available work described, once undertaken by the
worker, impede his or her recovery to the extent that in the judgment
of his or her physician or licensed advanced registered nurse
practitioner he or she should not continue to work, the worker's
temporary total disability payments shall be resumed when the worker
ceases such work.
(((b))) (c) To further encourage employers to maintain the
employment of their injured workers, an employer insured with the
department and that offers work to a worker pursuant to this subsection
(4) shall be eligible for reimbursement of the injured worker's wages
for light duty or transitional work equal to fifty percent of the
basic, gross wages paid for that work, for a maximum of sixty-six work
days within a consecutive twenty-four month period. In no event may
the wage subsidies paid to an employer on a claim exceed ten thousand
dollars. Wage subsidies shall be calculated using the worker's basic
hourly wages or basic salary, and no subsidy shall be paid for any
other form of compensation or payment to the worker such as tips,
commissions, bonuses, board, housing, fuel, health care, dental care,
vision care, per diem, reimbursements for work-related expenses, or any
other payments. An employer may not, under any circumstances, receive
a wage subsidy for a day in which the worker did not actually perform
any work, regardless of whether or not the employer paid the worker
wages for that day.
(d) If an employer insured with the department offers a worker work
pursuant to this subsection (4) and the worker must be provided with
training or instruction to be qualified to perform the offered work,
the employer shall be eligible for a reimbursement from the department
for any tuition, books, fees, and materials required for that training
or instruction, up to a maximum of one thousand dollars. Reimbursing
an employer for the costs of such training or instruction does not
constitute a determination by the department that the worker is
eligible for vocational services authorized by RCW 51.32.095 and
51.32.099.
(e) If an employer insured with the department offers a worker work
pursuant to this subsection (4), and the employer provides the worker
with clothing that is necessary to allow the worker to perform the
offered work, the employer shall be eligible for reimbursement for such
clothing from the department, up to a maximum of four hundred dollars.
However, an employer shall not receive reimbursement for any clothing
it provided to the worker that it normally provides to its workers.
The clothing purchased for the worker shall become the worker's
property once the work comes to an end.
(f) If an employer insured with the department offers a worker work
pursuant to this subsection (4) and the worker must be provided with
tools or equipment to perform the offered work, the employer shall be
eligible for a reimbursement from the department for such tools and
equipment and related costs as determined by department rule, up to a
maximum of two thousand five hundred dollars. An employer shall not be
reimbursed for any tools or equipment purchased prior to offering the
work to the worker pursuant to this subsection (4). An employer shall
not be reimbursed for any tools or equipment that it normally provides
to its workers. The tools and equipment shall be the property of the
employer.
(g) An employer may offer work to a worker pursuant to this
subsection (4) more than once, but in no event may the employer receive
wage subsidies for more than sixty-six days of work in a consecutive
twenty-four month period under one claim. An employer may continue to
offer work pursuant to this subsection (4) after the worker has
performed sixty-six days of work, but the employer shall not be
eligible to receive wage subsidies for such work.
(h) An employer shall not receive any wage subsidies or
reimbursement of any expenses pursuant to this subsection (4) unless
the employer has completed and submitted the reimbursement request on
forms developed by the department, along with all related information
required by department rules. No wage subsidy or reimbursement shall
be paid to an employer who fails to submit a form for such payment
within one year of the date the work was performed. In no event shall
an employer receive wage subsidy payments or reimbursements of any
expenses pursuant to this subsection (4) unless the worker's physician
or licensed advanced registered nurse practitioner has restricted him
or her from performing his or her usual work and the worker's physician
or licensed advanced registered nurse practitioner has released him or
her to perform the work offered.
(i) Payments made under (b) through (g) of this subsection are
subject to penalties under RCW 51.32.240(5) in cases where the funds
were obtained through willful misrepresentation.
(j) Once the worker returns to work under the terms of this
subsection (4), he or she shall not be assigned by the employer to work
other than the available work described without the worker's written
consent, or without prior review and approval by the worker's physician
or licensed advanced registered nurse practitioner. An employer who
directs a claimant to perform work other than that approved by the
attending physician and without the approval of the worker's physician
or licensed advanced registered nurse practitioner shall not receive
any wage subsidy or other reimbursements for such work.
(((c))) (k) If the worker returns to work under this subsection
(4), any employee health and welfare benefits that the worker was
receiving at the time of injury shall continue or be resumed at the
level provided at the time of injury. Such benefits shall not be
continued or resumed if to do so is inconsistent with the terms of the
benefit program, or with the terms of the collective bargaining
agreement currently in force.
(((d))) (l) In the event of any dispute as to the validity of the
work offered or as to the worker's ability to perform the available
work offered by the employer, the department shall make the final
determination pursuant to an order that contains the notice required by
RCW 51.52.060 and that is subject to appeal subject to RCW 51.52.050.
(5) An employer's experience rating shall not be affected by the
employer's request for or receipt of wage subsidies.
(6) The department shall create a Washington stay-at-work account
which shall be funded by assessments of employers insured through the
state fund for the costs of the payments authorized by subsection (4)
of this section and for the cost of creating a reserve for anticipated
liabilities. Employers may collect up to one-half the fund assessment
from workers.
(7) No worker shall receive compensation for or during the day on
which injury was received or the three days following the same, unless
his or her disability shall continue for a period of fourteen
consecutive calendar days from date of injury: PROVIDED, That attempts
to return to work in the first fourteen days following the injury shall
not serve to break the continuity of the period of disability if the
disability continues fourteen days after the injury occurs.
(((6))) (8) Should a worker suffer a temporary total disability and
should his or her employer at the time of the injury continue to pay
him or her the wages which he or she was earning at the time of such
injury, such injured worker shall not receive any payment provided in
subsection (1) of this section during the period his or her employer
shall so pay such wages: PROVIDED, That holiday pay, vacation pay,
sick leave, or other similar benefits shall not be deemed to be
payments by the employer for the purposes of this subsection.
(((7))) (9) In no event shall the monthly payments provided in this
section:
(a) Exceed the applicable percentage of the average monthly wage in
the state as computed under the provisions of RCW 51.08.018 as follows:
AFTER | PERCENTAGE | ||
June 30, 1993 | 105% | ||
June 30, 1994 | 110% | ||
June 30, 1995 | 115% | ||
June 30, 1996 | 120% |
Sec. 201 RCW 51.32.072 and 1987 c 185 s 34 are each amended to
read as follows:
(1) Notwithstanding any other provision of law, every surviving
spouse and every permanently totally disabled worker or temporarily
totally disabled worker, if such worker was unmarried at the time of
the worker's injury or was then married but the marriage was later
terminated by judicial action, receiving a pension or compensation for
temporary total disability under this title pursuant to compensation
schedules in effect prior to July 1, 1971, shall after July 1, 1975,
through June 30, 2011, be paid fifty percent of the average monthly
wage in the state as computed under RCW 51.08.018 per month and an
amount equal to five percent of such average monthly wage per month to
such totally disabled worker if married at the time of the worker's
injury and the marriage was not later terminated by judicial action,
and an additional two percent of such average monthly wage for each
child of such totally disabled worker at the time of injury in the
legal custody of such totally disabled worker or such surviving spouse
up to a maximum of five such children. The monthly payments such
surviving spouse or totally disabled worker are receiving pursuant to
compensation schedules in effect prior to July 1, 1971 shall be
deducted from the monthly payments above specified.
Where such a surviving spouse has remarried, or where any such
child of such worker, whether living or deceased, is not in the legal
custody of such worker or such surviving spouse there shall be paid for
the benefit of and on account of each such child a sum equal to two
percent of such average monthly wage up to a maximum of five such
children in addition to any payments theretofore paid under
compensation schedules in effect prior to July 1, 1971 for the benefit
of and on account of each such child. In the case of any child or
children of a deceased worker not leaving a surviving spouse or where
the surviving spouse has later died, there shall be paid for the
benefit of and on account of each such child a sum equal to two percent
of such average monthly wage up to a maximum of five such children in
addition to any payments theretofore paid under such schedules for the
benefit of and on account of each such child.
If the character of the injury or occupational disease is such as
to render the worker so physically helpless as to require the hiring of
the services of an attendant, the department shall make monthly
payments to such attendant for such services as long as such
requirement continues but such payments shall not obtain or be
operative while the worker is receiving care under or pursuant to the
provisions of this title except for care granted at the discretion of
the supervisor pursuant to RCW 51.36.010: PROVIDED, That such payments
shall not be considered compensation nor shall they be subject to any
limitation upon total compensation payments.
No part of such additional payments shall be payable from the
accident fund.
The director shall pay monthly from the supplemental pension fund
such an amount as will, when added to the compensation theretofore paid
under compensation schedules in effect prior to July 1, 1971, equal the
amounts hereinabove specified.
In cases where money has been or shall be advanced to any such
person from the pension reserve, the additional amount to be paid under
this section shall be reduced by the amount of monthly pension which
was or is predicated upon such advanced portion of the pension reserve.
(2) In addition to the adjustment under subsection (1) of this
section, further adjustments shall be made beginning July 1, 2012, and
on each July 1st thereafter. The adjustment shall be the percentage
change in the average monthly wage in the state under RCW 51.08.018 for
the preceding calendar year, rounded to the nearest whole cent.
(3) Compensation due for July 1, 2011, through June 30, 2012, must
be paid based on the average monthly wage in the state as computed
under RCW 51.08.018 on July 1, 2010.
Sec. 202 RCW 51.32.075 and 1988 c 161 s 7 are each amended to
read as follows:
The compensation or death benefits payable pursuant to the
provisions of this chapter for temporary total disability, permanent
total disability, or death arising out of injuries or occupational
diseases shall be adjusted as follows:
(1) On July 1, 1982, there shall be an adjustment for those whose
right to compensation was established on or after July 1, 1971, and
before July 1, 1982. The adjustment shall be determined by multiplying
the amount of compensation to which they are entitled by a fraction,
the denominator of which shall be the average monthly wage in the state
under RCW 51.08.018 for the fiscal year in which such person's right to
compensation was established, and the numerator of which shall be the
average monthly wage in the state under RCW 51.08.018 on July 1, 1982.
(2) In addition to the adjustment established by subsection (1) of
this section, there shall be another adjustment on July 1, 1983, for
those whose right to compensation was established on or after July 1,
1971, and before July 1983, which shall be determined by multiplying
the amount of compensation to which they are entitled by a fraction,
the denominator of which shall be the average monthly wage in the state
under RCW 51.08.018 for the fiscal year in which such person's right to
compensation was established, and the numerator of which shall be the
average monthly wage in the state under RCW 51.08.018 on July 1, 1983.
(3) In addition to the adjustments under subsections (1) and (2) of
this section, further adjustments shall be made beginning on July 1,
1984, and on each July 1st thereafter through July 1, 2010, for those
whose right to compensation was established on or after July 1, 1971.
The adjustment shall be determined by multiplying the amount of
compensation to which they are entitled by a fraction, the denominator
of which shall be the average monthly wage in the state under RCW
51.08.018 for the fiscal year in which such person's right to
compensation was established, and the numerator of which shall be the
average monthly wage in the state under RCW 51.08.018 on July 1st of
the year in which the adjustment is being made. The department or
self-insurer shall adjust the resulting compensation rate to the
nearest whole cent, not to exceed the average monthly wage in the state
as computed under RCW 51.08.018.
(4) In addition to the adjustments under subsections (1), (2), and
(3) of this section, further adjustments shall be made beginning July
1, 2012, and on each July 1st thereafter for those whose right to
compensation was established on or after July 1, 1971. The adjustment
shall be the percentage change in the average monthly wage in the state
under RCW 51.08.018 for the preceding calendar year, rounded to the
nearest whole cent. For claims whose right to compensation was
established on or after July 1, 2011, no adjustment shall be made under
this subsection until the second July 1st following the date of injury
or occupational disease manifestation.
NEW SECTION. Sec. 301 A new section is added to chapter 51.04
RCW to read as follows:
The legislature finds that Washington state's workers' compensation
system should be designed to focus on achieving the best outcomes for
injured workers. Further, the legislature recognizes that controlling
pension costs is key to a financially sound workers' compensation
system for employers and workers. To these ends, the legislature
recognizes that certain workers would benefit from an option that
allows them to initiate claim resolution structured settlements in
order to pursue work or retirement goals independent of the system,
provided that sufficient protections for injured workers are included.
NEW SECTION. Sec. 302 A new section is added to chapter 51.04
RCW to read as follows:
(1) Notwithstanding RCW 51.04.060 or any other provision of this
title, beginning on January 1, 2012, an injured worker who is at least
fifty-five years of age on or after January 1, 2012, fifty-three years
of age on or after January 1, 2015, or fifty years of age on or after
January 1, 2016, may choose from the following: (a) To continue to
receive all benefits for which they are eligible under this title, (b)
to participate in vocational training if eligible, or (c) to initiate
and agree to a resolution of their claim with a structured settlement.
(2)(a) As provided in this section, the parties to an allowed claim
may initiate and agree to resolve a claim with a structured settlement
for all benefits other than medical. Parties as defined in (b) of this
subsection may only initiate claim resolution structured settlements if
at least one hundred eighty days have passed since the claim was
received by the department or self-insurer and the order allowing the
claim is final and binding. All requirements of this title regarding
entitlement to and payment of benefits will apply during this period.
All claim resolution structured settlement agreements must be approved
by the board of industrial insurance appeals.
(b) For purposes of this section, "parties" means:
(i) For a state fund claim, the worker, the employer, and the
department. The employer will not be a party if the costs of the claim
or claims are no longer included in the calculation of the employer's
experience factor used to determine premiums, if they cannot be
located, are no longer in business, or they fail to respond or decline
to participate after timely notice of the claim resolution settlement
process provided by the board and the department.
(ii) For a self-insured claim, the worker and the employer.
(c) The claim resolution structured settlement agreements shall:
(i) Bind the parties with regard to all aspects of a claim except
medical benefits unless revoked by one of the parties as provided in
subsection (6) of this section;
(ii) Provide a periodic payment schedule to the worker equal to at
least twenty-five percent but not more than one hundred fifty percent
of the average monthly wage in the state pursuant to RCW 51.08.018,
except for the initial payment which may be up to six times the average
monthly wage in the state pursuant to RCW 51.08.018;
(iii) Not set aside or reverse an allowance order;
(iv) Not subject any employer who is not a signatory to the
agreement to any responsibility or burden under any claim; and
(v) Not subject any funds covered under this title to any
responsibility or burden without prior approval from the director or
designee.
(d) For state fund claims, the department shall negotiate the claim
resolution structured settlement agreement with the worker or their
representative and with the employer or employers and their
representative or representatives.
(e) For self-insured claims, the self-insured employer shall
negotiate the agreement with the worker or their representative.
Workers of self-insured employers who are unrepresented may request
that the office of the ombudsman for self-insured injured workers
provide assistance or be present during negotiations.
(f) Terms of the agreement may include the parties' agreement that
the claim shall remain open for future necessary medical or surgical
treatment related to the injury where there is a reasonable expectation
such treatment is necessary. The parties may also agree that specific
future treatment shall be provided without the application required in
RCW 51.32.160.
(g) Any claim resolution structured settlement agreement entered
into under this section must be in writing and signed by the parties or
their representatives and must clearly state that the parties
understand and agree to the terms of the agreement.
(h) If a worker is not represented by an attorney at the time of
signing a claim resolution structured settlement agreement, the parties
must forward a copy of the signed agreement to the board with a request
for a conference with an industrial appeals judge. The industrial
appeals judge must schedule a conference with all parties within
fourteen days for the purpose of (i) reviewing the terms of the
proposed settlement agreement by the parties; and (ii) ensuring the
worker has an understanding of the benefits generally available under
this title and that a claim resolution structured settlement agreement
may alter the benefits payable on the claim or claims. The judge may
schedule the initial conference for a later date with the consent of
the parties.
(i) Before approving the agreement, the industrial appeals judge
shall ensure the worker has an adequate understanding of the agreement
and its consequences to the worker.
(j) The industrial appeals judge may approve a claim resolution
structured settlement agreement only if the judge finds that the
agreement is in the best interest of the worker. When determining
whether the agreement is in the best interest of the worker, the
industrial appeals judge shall consider the following factors, taken as
a whole, with no individual factor being determinative:
(i) The nature and extent of the injuries and disabilities of the
worker;
(ii) The age and life expectancy of the injured worker;
(iii) Other benefits the injured worker is receiving or is entitled
to receive and the effect a claim resolution structured settlement
agreement might have on those benefits; and
(iv) The marital or domestic partnership status of the injured
worker.
(k) Within seven days after the conference, the industrial appeals
judge shall issue an order allowing or rejecting the claim resolution
structured settlement agreement. There is no appeal from the
industrial appeals judge's decision.
(l) If the industrial appeals judge issues an order allowing the
claim resolution structured settlement agreement, the order must be
submitted to the board.
(3) Upon receiving the agreement, the board shall approve it within
thirty working days of receipt unless it finds that:
(a) The parties have not entered into the agreement knowingly and
willingly;
(b) The agreement does not meet the requirements of a claim
resolution structured settlement agreement;
(c) The agreement is the result of a material misrepresentation of
law or fact;
(d) The agreement is the result of harassment or coercion; or
(e) The agreement is unreasonable as a matter of law.
(4) If a worker is represented by an attorney at the time of
signing a claim resolution structured settlement agreement, the parties
shall submit the agreement directly to the board without the conference
described in this section.
(5) If the board approves the agreement, it shall provide notice to
all parties. The department shall place the agreement in the
applicable claim file or files.
(6) A party may revoke consent to the claim resolution structured
settlement agreement by providing written notice to the other parties
and the board within thirty days after the date the agreement is
approved by the board.
(7) To the extent the worker is entitled to any benefits while a
claim resolution structured settlement agreement is being negotiated or
during the revocation period of an agreement, the benefits must be paid
pursuant to the requirements of this title until the agreement becomes
final.
(8) A claim resolution structured settlement agreement that meets
the conditions in this section and that has become final and binding as
provided in this section is binding on all parties to the agreement as
to its terms and the injuries and occupational diseases to which the
agreement applies. A claim resolution structured settlement agreement
that has become final and binding is not subject to appeal.
(9) All payments made to a worker pursuant to a final claim
resolution structured settlement agreement must be reported to the
department as claims costs pursuant to this title. If a self-insured
employer contracts with a third-party administrator for claim services
and the payment of benefits under this title, the third-party
administrator shall also disburse the structured settlement payments
pursuant to the agreement.
(10) Claims closed pursuant to a claim resolution structured
settlement agreement can be reopened pursuant to RCW 51.32.160 for
medical treatment only. Further temporary total, temporary partial,
permanent partial, or permanent total benefits are not payable under
the same claim or claims for which a claim resolution structured
settlement agreement has been approved by the board and has become
final.
(11) Parties aggrieved by the failure of any other party to comply
with the terms of a claim resolution structured settlement agreement
have one year from the date of failure to comply to petition to the
board. If the board determines that a party has failed to comply with
an agreement, they will order compliance and will impose a penalty
payable to the aggrieved party of up to twenty-five percent of the
monetary amount unpaid at the time the petition for noncompliance was
filed. The board will also decide on any disputes as to attorneys'
fees for services related to claim resolution structured settlement
agreements.
(12) Parties and their representatives may not use settlement
offers or the claim resolution structured settlement agreement process
to harass or coerce any party. If the department determines that an
employer has engaged in a pattern of harassment or coercion, the
employer may be subject to penalty or corrective action, and may be
removed from the retrospective rating program or be decertified from
self-insurance under RCW 51.14.030.
NEW SECTION. Sec. 303 A new section is added to chapter 51.04
RCW to read as follows:
The department must maintain copies of all claim resolution
structured settlement agreements entered into between the parties and
furnish copies of such agreements to any party actively negotiating a
subsequent claim resolution structured settlement agreement with the
worker on any allowed claim when requested. An employer may not
consider a prior agreement when making a decision about hiring or the
terms or conditions of employment.
Sec. 304 RCW 51.52.120 and 2007 c 490 s 3 are each amended to
read as follows:
(1) Except for claim resolution structured settlement agreements,
it shall be unlawful for an attorney engaged in the representation of
any worker or beneficiary to charge for services in the department any
fee in excess of a reasonable fee, of not more than thirty percent of
the increase in the award secured by the attorney's services. Such
reasonable fee shall be fixed by the director or the director's
designee for services performed by an attorney for such worker or
beneficiary, if written application therefor is made by the attorney,
worker, or beneficiary within one year from the date the final decision
and order of the department is communicated to the party making the
application.
(2) If, on appeal to the board, the order, decision, or award of
the department is reversed or modified and additional relief is granted
to a worker or beneficiary, or in cases where a party other than the
worker or beneficiary is the appealing party and the worker's or
beneficiary's right to relief is sustained by the board, the board
shall fix a reasonable fee for the services of his or her attorney in
proceedings before the board if written application therefor is made by
the attorney, worker, or beneficiary within one year from the date the
final decision and order of the board is communicated to the party
making the application. In fixing the amount of such attorney's fee,
the board shall take into consideration the fee allowed, if any, by the
director, for services before the department, and the board may review
the fee fixed by the director. Any attorney's fee set by the
department or the board may be reviewed by the superior court upon
application of such attorney, worker, or beneficiary. The department
or self-insured employer, as the case may be, shall be served a copy of
the application and shall be entitled to appear and take part in the
proceedings. Where the board, pursuant to this section, fixes the
attorney's fee, it shall be unlawful for an attorney to charge or
receive any fee for services before the board in excess of that fee
fixed by the board.
(3) For claim resolution structured settlement agreements, fees for
attorney services are limited to fifteen percent of the total amount to
be paid to the worker after the agreement becomes final. The board
will also decide on any disputes as to attorneys' fees for services
related to claim resolution structured settlement agreements consistent
with the procedures in subsection (2) of this section.
(4) In an appeal to the board involving the presumption established
under RCW 51.32.185, the attorney's fee shall be payable as set forth
under RCW 51.32.185.
(((4))) (5) Any person who violates this section is guilty of a
misdemeanor.
NEW SECTION. Sec. 305 The department of labor and industries and
the board of industrial insurance appeals shall adopt rules as
necessary to implement sections 302 and 303 of this act.
NEW SECTION. Sec. 306 A new section is added to chapter 51.04
RCW to read as follows:
On December 1, 2011, and annually thereafter through December 1,
2014, the department shall report annually to the appropriate
committees of the legislature on the implementation of claim resolution
structured settlement agreements. In calendar years 2015, 2019, and
2023, the department shall contract for an independent study of claim
resolution structured settlement agreements approved by the board under
this section. The study must be performed by a researcher with
experience in workers' compensation issues. When selecting the
independent researcher, the department shall consult with the workers'
compensation advisory committee. The study must evaluate the quality
and effectiveness of structured settlement agreements of state fund and
self-insured claims, provide information on the impact of these
agreements to the state fund and to self-insured employers, and
evaluate the outcomes of workers who have resolved their claims through
the claim resolution structured settlement agreement process. The
study must be submitted to the appropriate committees of the
legislature.
Sec. 401 RCW 51.32.080 and 2007 c 172 s 1 are each amended to
read as follows:
(1)(a) Until July 1, 1993, for the permanent partial disabilities
here specifically described, the injured worker shall receive
compensation as follows:
LOSS BY AMPUTATION | |
Of leg above the knee joint with short thigh stump (3" or less below the tuberosity of ischium) . . . . . . . . . . . . | $54,000.00 |
Of leg at or above knee joint with functional stump . . . . . . . . . . . . | 48,600.00 |
Of leg below knee joint . . . . . . . . . . . . | 43,200.00 |
Of leg at ankle (Syme) . . . . . . . . . . . . | 37,800.00 |
Of foot at mid-metatarsals . . . . . . . . . . . . | 18,900.00 |
Of great toe with resection of metatarsal bone . . . . . . . . . . . . | 11,340.00 |
Of great toe at metatarsophalangeal joint . . . . . . . . . . . . | 6,804.00 |
Of great toe at interphalangeal joint . . . . . . . . . . . . | 3,600.00 |
Of lesser toe (2nd to 5th) with resection of metatarsal bone . . . . . . . . . . . . | 4,140.00 |
Of lesser toe at metatarsophalangeal joint . . . . . . . . . . . . | 2,016.00 |
Of lesser toe at proximal interphalangeal joint . . . . . . . . . . . . | 1,494.00 |
Of lesser toe at distal interphalangeal joint . . . . . . . . . . . . | 378.00 |
Of arm at or above the deltoid insertion or by disarticulation at the shoulder . . . . . . . . . . . . | 54,000.00 |
Of arm at any point from below the deltoid insertion to below the elbow joint at the insertion of the biceps tendon . . . . . . . . . . . . | 51,300.00 |
Of arm at any point from below the elbow joint distal to the insertion of the biceps tendon to and including mid-metacarpal amputation of the hand . . . . . . . . . . . . | 48,600.00 |
Of all fingers except the thumb at metacarpophalangeal joints . . . . . . . . . . . . | 29,160.00 |
Of thumb at metacarpophalangeal joint or with resection of carpometacarpal bone . . . . . . . . . . . . | 19,440.00 |
Of thumb at interphalangeal joint . . . . . . . . . . . . | 9,720.00 |
Of index finger at metacarpophalangeal joint or with resection of metacarpal bone . . . . . . . . . . . . | 12,150.00 |
Of index finger at proximal interphalangeal joint . . . . . . . . . . . . | 9,720.00 |
Of index finger at distal interphalangeal joint . . . . . . . . . . . . | 5,346.00 |
Of middle finger at metacarpophalangeal joint or with resection of metacarpal bone . . . . . . . . . . . . | 9,720.00 |
Of middle finger at proximal interphalangeal joint . . . . . . . . . . . . | 7,776.00 |
Of middle finger at distal interphalangeal joint . . . . . . . . . . . . | 4,374.00 |
Of ring finger at metacarpophalangeal joint or with resection of metacarpal bone . . . . . . . . . . . . | 4,860.00 |
Of ring finger at proximal interphalangeal joint . . . . . . . . . . . . | 3,888.00 |
Of ring finger at distal interphalangeal joint . . . . . . . . . . . . | 2,430.00 |
Of little finger at metacarpophalangeal joint or with resection of metacarpal bone . . . . . . . . . . . . | 2,430.00 |
Of little finger at proximal interphalangeal joint . . . . . . . . . . . . | 1,944.00 |
Of little finger at distal interphalangeal joint . . . . . . . . . . . . | 972.00 |
MISCELLANEOUS | |
21,600.00 | |
18,000.00 | |
43,200.00 | |
7,200.00 |
NEW SECTION. Sec. 501 A new section is added to chapter 49.17
RCW to read as follows:
(1) The director is authorized to provide funding from the medical
aid fund established under RCW 51.44.020, by grant or contract, for
safety and health investment projects for workplaces insured for
workers' compensation through the department's state fund. This shall
include projects to: Prevent workplace injuries, illnesses, and
fatalities; create early return-to-work programs; and reduce long-term
disability through the cooperation of employers and employees or their
representatives.
(2) Awards may be granted to organizations such as, but not limited
to, trade associations, business associations, employers, employees,
labor unions, employee organizations, joint labor and management
groups, and educational institutions in collaboration with state fund
employer and employee representatives.
(3) Awards may not be used for lobbying or political activities;
supporting, opposing, or developing legislative or regulatory
initiatives; any activity not designed to reduce workplace injuries,
illnesses, or fatalities; or reimbursing employers for the normal costs
of complying with safety and health rules.
(4) Funds for awards shall be distributed as follows: At least
twenty-five percent for projects designed to develop and implement
innovative and effective return-to-work programs for injured workers;
at least twenty-five percent for projects that specifically address the
needs of small businesses; and at least fifty percent for projects that
foster workplace injury and illness prevention by addressing priorities
identified by the department in cooperation with the Washington
industrial safety and health act advisory committee and the workers'
compensation advisory committee.
(5) The department shall adopt rules as necessary to implement this
section.
Sec. 502 RCW 51.04.110 and 2010 c 8 s 14001 are each amended to
read as follows:
The director shall appoint a workers' compensation advisory
committee composed of ten members: Three representing subject workers,
three representing subject employers, one representing self-insurers,
one representing workers of self-insurers, and two ex officio members,
without a vote, one of whom shall be the chair of the board of
industrial appeals and the other the representative of the department.
The member representing the department shall be chair. This committee
shall conduct a continuing study of any aspects of workers'
compensation as the committee shall determine require their
consideration and shall assist in the identification of priorities for
safety and health investment projects as provided in chapter 49.17 RCW.
The committee shall report its findings to the department or the board
of industrial insurance appeals for such action as deemed appropriate.
The members of the committee shall be appointed for a term of three
years commencing on July 1, 1971 and the terms of the members
representing the workers and employers shall be staggered so that the
director shall designate one member from each such group initially
appointed whose term shall expire on June 30, 1972 and one member from
each such group whose term shall expire on June 30, 1973. The members
shall serve without compensation, but shall be entitled to travel
expenses as provided in RCW 43.03.050 and 43.03.060 ((as now existing
or hereafter amended)). The committee may hire such experts, if any,
as it shall require to discharge its duties, and may utilize such
personnel and facilities of the department and board of industrial
insurance appeals as it shall need without charge. All expenses of
this committee shall be paid by the department.
NEW SECTION. Sec. 601 A new section is added to chapter 51.44
RCW to read as follows:
(1) There shall be, in the custody of the state treasurer, a fund
to be known and designated as the industrial insurance rainy day fund.
(2) The director shall be the administrator of the fund, may
transfer moneys into and out of the fund only as authorized by this
section, and shall separately account for moneys in the fund from the
accident and medical aid funds. The assets of this fund shall not be
used for any purposes other than meeting the obligations of this title.
(3) Before proposing premium rates as provided in RCW 51.16.035,
the director shall determine whether the assets of the accident and
medical aid funds combined are at least ten percent but not more than
thirty percent in excess of its funded liabilities, and if so transfer
any excess to the industrial insurance rainy day fund, unless doing so
would:
(a) Threaten the department's ability to meet the obligations of
this title;
(b) Result in total assets of the rainy day fund combined with the
assets of the accident and medical aid funds to exceed thirty percent
of the accident and medical aid funds' liabilities.
(4) The workers' compensation advisory committee shall create a
finance subcommittee made up of six members, three of whom shall
represent business, and three of whom shall represent workers. The
director or director's designee shall chair the committee. The
committee shall provide recommendations for any changes to subsection
(3)(b) of this section to the appropriate committees of the legislature
by December 1, 2011.
(5) When adopting premium rates, the director may transfer moneys
from the industrial insurance rainy day fund into the accident fund or
medical aid fund upon finding that the transfer is necessary to reduce
a rate increase or aid businesses in recovering from or during economic
recessions. The director may also transfer moneys from this fund at
any time liabilities increase so that total liabilities exceed assets
of the accident fund, medical aid fund, or both.
(6) Notwithstanding chapter 51.52 RCW, the director's decisions
regarding transfers into and out of the industrial insurance rainy day
fund are not reviewable by any court or tribunal, but must be announced
as part of the rule-making process for setting premium rates, and must
be part of the department's rule-making file required by chapter 34.05
RCW.
Sec. 602 RCW 51.44.100 and 1990 c 80 s 1 are each amended to read
as follows:
Whenever, in the judgment of the state investment board, there
shall be in the accident fund, medical aid fund, reserve fund,
industrial insurance rainy day fund, or the supplemental pension fund,
funds in excess of that amount deemed by the state investment board to
be sufficient to meet the current expenditures properly payable
therefrom, the state investment board may invest and reinvest such
excess funds in the manner prescribed by RCW 43.84.150, and not
otherwise.
The state investment board may give consideration to the investment
of excess funds in federally insured student loans made to persons in
vocational training or retraining or reeducation programs. The state
investment board may make such investments by purchasing from savings
and loan associations, commercial banks, mutual savings banks, credit
unions and other institutions authorized to be lenders under the
federally insured student loan act, organized under federal or state
law and operating in this state loans made by such institutions to
residents of the state of Washington particularly for the purpose of
vocational training or reeducation: PROVIDED, That the state
investment board shall purchase only that portion of any loan which is
guaranteed or insured by the United States of America, or by any agency
or instrumentality of the United States of America: PROVIDED FURTHER,
That the state investment board is authorized to enter into contracts
with such savings and loan associations, commercial banks, mutual
savings banks, credit unions, and other institutions authorized to be
lenders under the federally insured student loan act to service loans
purchased pursuant to this section at an agreed upon contract price.
Sec. 603 RCW 43.79A.040 and 2011 c 274 s 4 are each amended to
read as follows:
(1) Money in the treasurer's trust fund may be deposited, invested,
and reinvested by the state treasurer in accordance with RCW 43.84.080
in the same manner and to the same extent as if the money were in the
state treasury, and may be commingled with moneys in the state treasury
for cash management and cash balance purposes.
(2) All income received from investment of the treasurer's trust
fund must be set aside in an account in the treasury trust fund to be
known as the investment income account.
(3) The investment income account may be utilized for the payment
of purchased banking services on behalf of treasurer's trust funds
including, but not limited to, depository, safekeeping, and
disbursement functions for the state treasurer or affected state
agencies. The investment income account is subject in all respects to
chapter 43.88 RCW, but no appropriation is required for payments to
financial institutions. Payments must occur prior to distribution of
earnings set forth in subsection (4) of this section.
(4)(a) Monthly, the state treasurer must distribute the earnings
credited to the investment income account to the state general fund
except under (b), (c), and (d) of this subsection.
(b) The following accounts and funds must receive their
proportionate share of earnings based upon each account's or fund's
average daily balance for the period: The Washington promise
scholarship account, the college savings program account, the
Washington advanced college tuition payment program account, the
accessible communities account, the community and technical college
innovation account, the agricultural local fund, the American Indian
scholarship endowment fund, the foster care scholarship endowment fund,
the foster care endowed scholarship trust fund, the students with
dependents grant account, the basic health plan self-insurance reserve
account, the contract harvesting revolving account, the Washington
state combined fund drive account, the commemorative works account, the
county enhanced 911 excise tax account, the Washington international
exchange scholarship endowment fund, the toll collection account, the
developmental disabilities endowment trust fund, the energy account,
the fair fund, the family leave insurance account, the food animal
veterinarian conditional scholarship account, the fruit and vegetable
inspection account, the future teachers conditional scholarship
account, the game farm alternative account, the GET ready for math and
science scholarship account, the Washington global health technologies
and product development account, the grain inspection revolving fund,
the industrial insurance rainy day fund, the juvenile accountability
incentive account, the law enforcement officers' and firefighters' plan
2 expense fund, the local tourism promotion account, the pilotage
account, the produce railcar pool account, the regional transportation
investment district account, the rural rehabilitation account, the
stadium and exhibition center account, the youth athletic facility
account, the self-insurance revolving fund, the sulfur dioxide
abatement account, the children's trust fund, the Washington horse
racing commission Washington bred owners' bonus fund and breeder awards
account, the Washington horse racing commission class C purse fund
account, the individual development account program account, the
Washington horse racing commission operating account (earnings from the
Washington horse racing commission operating account must be credited
to the Washington horse racing commission class C purse fund account),
the life sciences discovery fund, the Washington state heritage center
account, the reduced cigarette ignition propensity account, and the
reading achievement account.
(c) The following accounts and funds must receive eighty percent of
their proportionate share of earnings based upon each account's or
fund's average daily balance for the period: The advanced right-of-way
revolving fund, the advanced environmental mitigation revolving
account, the federal narcotics asset forfeitures account, the high
occupancy vehicle account, the local rail service assistance account,
and the miscellaneous transportation programs account.
(d) Any state agency that has independent authority over accounts
or funds not statutorily required to be held in the custody of the
state treasurer that deposits funds into a fund or account in the
custody of the state treasurer pursuant to an agreement with the office
of the state treasurer shall receive its proportionate share of
earnings based upon each account's or fund's average daily balance for
the period.
(5) In conformance with Article II, section 37 of the state
Constitution, no trust accounts or funds shall be allocated earnings
without the specific affirmative directive of this section.
NEW SECTION. Sec. 701 A new section is added to chapter 51.04
RCW to read as follows:
(1) The legislature finds that the department is successfully
addressing employer fraud and the underground economy, helping ensure
that employers who appropriately report and pay premiums can be
competitive. Efforts focus on prevention, education, and enforcement
by identifying industries for targeted audits, informing industry
members and providing the opportunity for voluntary compliance, and
ultimately identifying employers for audit based on proven criteria.
(2) To ensure the appropriate use of workers' compensation funds,
the legislature directs the department of labor and industries to
continue applying these proven best practices to employer fraud and to
apply the same best practices to address instances of worker and
provider fraud, including but not limited to:
(a) Participating in a national information exchange with other
workers' compensation insurers to avoid duplication of claims and
benefits;
(b) Increasing public awareness of employer, worker, and provider
fraud issues and how to report suspected fraud;
(c) Establishing criteria for the periodic review of total
permanent disability pension recipients including their level of
disability and physical activity to determine whether they can be
gainfully employed; and
(d) Identifying provider billing patterns to target potentially
abusive practices.
(3) The provisions of RCW 51.28.070 shall not be a barrier to the
department's participation in a national information exchange as
required in subsection (2)(a) of this section.
(4) The department's activities must include approaches to prevent,
educate, and ensure compliance by providers, employers, and workers.
The department shall provide a report to the governor and the
appropriate legislative committees by December 1, 2012, that describes
the agency's efforts and outcomes and makes recommendations for
statutory changes to address barriers for successfully addressing
provider, employer, and worker fraud.
NEW SECTION. Sec. 801 A new section is added to chapter 51.04
RCW to read as follows:
(1) The joint legislative audit and review committee, in
consultation with the department of labor and industries and the
workers' compensation advisory committee, shall conduct a performance
audit of the workers' compensation claims management system, including
self-insured claims. The joint legislative audit and review committee
may contract with an independent expert in workers' compensation claims
management to assist with the audit.
(2) The audit shall:
(a) Evaluate the extent to which the department: (i) Makes fair
and timely decisions, and resolves complaints and disputes in a timely,
fair, and effective manner; and (ii) communicates with employers and
workers in a timely, responsive, and accurate manner, including
communication about review and appeal rights, and including the use of
plain language and sufficient opportunities for face-to-face meetings;
(b) Determine if current claims management organization and service
delivery models are the most efficient available; analyze organization
and delivery for retrospective rating plan participants as compared to
nonparticipants to identify differences and how those differences
influence retrospective rating plan refunds; and determine whether
current initiatives improve service delivery, meet the needs of current
and future workers and employers, improve public education and
outreach, and are otherwise measurable; and
(c) Make recommendations regarding administrative changes that
should be made to improve efficiency while maintaining high levels of
quality service to help address system costs, and any needed
legislative changes to implement the recommendations.
(3) The joint legislative audit and review committee shall submit
progress reports by December 1, 2012, and December 1, 2013, and the
results of the audit by June 30, 2015, to the appropriate committees of
the legislature.
(4) This section expires December 31, 2015.
NEW SECTION. Sec. 901 The department of labor and industries
shall contract with an independent entity with research experience in
workers' compensation issues to study occupational disease claims in
the Washington workers' compensation system. When selecting the
independent researcher, the department shall consult with the workers'
compensation advisory committee. The workers' compensation advisory
committee shall recommend to the department the independent researcher
to conduct the study. The study shall include, but not be limited to,
an examination of the frequency and severity of occupational disease
claims for state fund and self-insured employers; the impact of these
claims on long-term disability and pension trends; the statutory
definition of occupational disease and its interpretation and
comparison to definitions in other states and jurisdictions; and
comparison of the statute of limitations for filing occupational
disease claims for Washington and other states and jurisdictions. The
study must be submitted to the appropriate committees of the
legislature by December 1, 2012.
NEW SECTION. Sec. 1001 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.
NEW SECTION. Sec. 1101 This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the
state government and its existing public institutions, and takes effect
immediately.