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 and benefits to workers who
are injured on the job, and to their families, and in facilitating the injured
workers' 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 members of
the senate and house of representatives commerce and labor committees and the
workers' compensation advisory committee established under RCW 51.04.110, shall
conduct a performance audit of the state workers' compensation system.
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)(a)
The effectiveness of the system in providing sure and certain relief to injured
workers as mandated by Title 51 RCW;
(b)
The effectiveness of the workers' compensation system in returning injured
workers to work and meeting other system goals;
(6)
The level of customer satisfaction of workers and employers participating in
the system;
(7)
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;
(8)
The manner in which the workers' compensation system coordinates its activities
with other programs or activities within the department or other state
agencies, including: the WISHA program, the board of industrial insurance
appeals, the employment security department, the department of revenue, the
department of health, and the work force training and education coordinating
board;
(9)
The cost-effectiveness and efficiency of the state workers' compensation system
as compared with other private and public sector delivery systems;
(10)
Claims administration practices of the state fund, self-insured employers, and
third-party administrators, and the effectiveness of department sanctions in
promoting best practices in claims administration; 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 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 joint
legislative audit and review committee in the course of the performance audit
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. The
department will transfer the funds necessary to implement this act to the joint
legislative audit and review committee through an interagency agreement.
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.
