The joint legislative audit and review committee shall conduct a review of the rules dealing with musculoskeletal disorders, codified as WAC 296-62-05101 through 296-62-05176, as adopted on May 26, 2000, or any new or amended rules dealing with musculoskeletal disorders that are substantially the same as these rules, and the results of all pilot demonstration projects arranged by the department to assess and make recommendations, including but not limited to:

(1) Review of the literature regarding the scientific justification for the rules, the expectation that the rules will reduce musculoskeletal disorders, and the degree to which the rules reduce injury;

(2) The accuracy of the cost-benefit analyses prepared for the rules;

(3) The ease of understanding and complying with the rules, identification of ambiguities and difficulties encountered during the pilot demonstration projects to implement the rules, and recommendations to maximize understanding and minimize ambiguities and confusion for employers in complying with the rules;

(4) Ease of implementation of the rules based on the results of the pilot demonstration projects and recommendations on how to facilitate easier implementation and reduce costs while maintaining or increasing the reduction of musculoskeletal disorders;

(5) Results of any pilot demonstration projects using alternative methods to reduce musculoskeletal disorders and the cost-effectiveness of each of the alternatives;

(6) Musculoskeletal disorder reductions as a result of the rules and any alternatives to the rules that were the subject of a pilot demonstration project;

(7) Costs to comply with the rules and any alternative methods to reduce musculoskeletal disorders, based on the result of the pilot demonstration projects; and

(8) Any other analysis, finding, or recommendation the committee deems useful in assessing the enforcement of the rules.

The committee shall report its finding to the legislature by December 1st of each calendar year and shall issue a complete report on December 1, 2003.

Funding for this program will be taken from the reserves of the medical aid fund that are in excess of actuarial needs.

NEW SECTION. Sec. 4. A new section is added to chapter 49.17 RCW to read as follows:

(1) For the purposes of this section:

(a) "Ergonomics rules" means the rules dealing with musculoskeletal disorders, codified as WAC 296-62-05101 through 296-62-05176, as adopted on May 26, 2000, or any new or amended rules dealing with musculoskeletal disorders that are substantially the same as these rules;

(b) "Enforce" and "enforcement" includes, but is not limited to, any action requiring an employer to comply with any provision of the ergonomics rules, such as issuing citations or assessing penalties.

(2) The acceleration of ergonomics awareness education, the completion of pilot demonstration projects, and the completion of the legislative review of the ergonomics rules are conditions precedent to the enforcement of any ergonomics rules. Therefore, the department shall not enforce the ergonomics rules until at least six months after the completion of the requirements of this section:

(a) The department accelerates its ergonomics awareness education program, as described in section 2 of this act;

(b) The participants complete the pilot demonstration projects, as described in section 2 of this act. Pilot demonstration projects for each of the industries initially required to come into compliance with the rules shall include a representative sample of smaller and larger employers in each industry, who volunteer to participate and who shall not be subject to any enforcement action as a result of the project. Pilot demonstration projects shall provide a comprehensive assessment of the ergonomics rules and alternatives to the rules: (i) to determine the cost to employers, the ease of compliance, and the extent of injury reduction achieved; and (ii) to identify ambiguities in the rules;

(c) The governor's blue ribbon panel of independent experts consults with small business organizations prior to completing its assessment of these rules and determining that: (i) The rule requirements are understandable; (ii) the proposed enforcement policies and procedures are fair and consistent; (iii) effective educational materials are widely available; and (iv) pilot demonstration projects are successful;

(d) The joint legislative audit and review committee completes its review of the ergonomics rules, the ergonomics awareness education program, and the pilot demonstration projects, and issues the complete report of its findings and recommendations to the legislature, also as described in section 3 of this act on December 1, 2003. The committee may contract with a private entity to conduct the performance review. The committee shall consider input from the house commerce and labor committee, the senate labor, commerce, and financial instiutions committee, and the WISHA advisory committee established under RCW 49.17.055. The findings and recommendations shall include, but not be limited to: (i) a review of the scientific literature justifying the ergonomics rules; (ii) a determination of the actual costs and benefits of the rules; (iii) an assessment of the ease of understanding, compliance with, and implementation of the rules; (iv) an identification of ambiguities in the rules; (v) a determination of whether or not hazard or injury reduction was achieved; and (vi) a comparison of alternative methods of addressing workplace musculoskeletal disorders; and

(e) The department, by rule, or the legislature, by statute, has resolved ambiguities in the rules identified in the joint legislative audit and review committee's findings and recommendations.

NEW SECTION. Sec. 5. (1) The director, in consultation with the WISHA advisory committee, shall establish a program to provide safety and health impact grants to prevent injuries and illnesses, save lives, and educate Washington employees and employers about work place hazards and safe work place practices. The intent of sections 5 through 11 of this act is to benefit, in the broadest sense possible, Washington workers and employers, especially those who are in small business and may lack the injury and illness prevention resources that larger companies may possess. The department may use appropriated industrial insurance funds to accomplish the purpose of sections 5 through 11 of this act. Funding for this program will be taken from the reserves of the medical aid fund that are in excess of actuarial needs.

(2) Using a competitive application process, the department shall award up to five million dollars per year in safety and health impact grants to trade associations, business associations, employers, employee organizations, labor unions, and groups of employees. The grants may include: (a) Education and training grants to implement safety and health and to provide practical information, curricula, materials, and methods intended for use by employers and employees in reducing work place hazards; (b) technical innovation grants to develop engineering and other technical solutions to injury and illness problems; or (c) best practice grants for the application of hazard control. The department shall attempt to ensure that best practice grants, in particular, are adequately represented in the final awarding of grants. In addition, the department shall make reasonable efforts to ensure that not less than twenty percent of the grant funds are used to assist small employers and employees in small businesses to improve safety and health in small firms.

(3) Applicants for grants may form partnerships with educational institutions and other organizations. Applicants for grants may form partnerships with self-insured employers if the product of the grant will significantly benefit employees and employers who belong to the state industrial insurance fund.

(4) Any materials, designs, or equipment developed under these grants will be in the public domain and shall not be copyrighted or patented. Any materials or designs developed under these grants shall be provided to the department at no charge as a condition of grant receipt.

(5) Grants shall not be used to support or develop specific legislative or regulatory initiatives.

(6) The department shall not use information contained in a grant application for inspection activity or to establish a recognized hazard for enforcement or citation purposes. The department shall not use the results of a grant to establish that the grantee is subject to citation or penalty for violation of a safety and health rule.

(7) All grants shall contain an accountability component that shall evaluate the impact on work place safety with results that are reported back to the safety and health impact grant review committee. The department shall cooperate in providing available data required to assist the grant recipients in measuring the impact.

(8) In order to encourage the broadest level of participation, no grant application shall be approved that proposes work that cannot be completed during the current application year or biennium. Applicants that seek additional funding in subsequent years will be eligible to submit new applications only if they have successfully completed the work for which they were previously funded, and these new applications will compete with all other applicants.

NEW SECTION. Sec. 6. (1) The director shall appoint a safety and health impact grant review committee that will be a subcommittee of the WISHA advisory committee. The review committee is composed of nine members: Four members representing employees, each appointed from a list of at least three names per position, submitted by recognized statewide organizations of employees; four members representing employers, each appointed from a list of at least three names per position, submitted by recognized statewide organizations of employers; and one ex officio member, without a vote, who shall represent the department. The committee chair shall be chosen by the review committee and shall alternate between business and labor. The committee members shall serve three-year renewable terms.

(2) Business and labor members of the safety and health impact grant review committee are entitled to expenses as provided under RCW 43.03.050 and 43.03.060.

(3) The safety and health impact grant review committee shall:

(a) Prepare requests for proposals which shall include specific criteria and the weight to be given to each of the criteria in awarding grants;

(b) Receive, review, and process grant applications;

(c) Identify, by two-thirds majority vote, grant applications that merit funding and forward those applications to the legislative safety and health impact grant review task force and the director;

(d) Identify, by two-thirds majority vote, funded grants that meet criteria for suspension or revocation and forward those grants to the director; and

(e) Provide written notification to those grant applicants that do not merit funding explaining the reasons for denial.

NEW SECTION. Sec. 7. A legislative safety and health impact grant review task force is hereby created. The legislative task force shall consist of one member from each caucus of the senate labor, commerce and financial institutions committee, appointed by the president of the senate, and one member from each caucus of the house commerce and labor committee, appointed by the co-speakers of the house of representatives. The legislative task force shall review the safety and health impact grant review committee's recommendations, and forward grant applications that the task force recommends for funding to the director.

NEW SECTION. Sec. 8. (1) The safety and health impact grant review committee, in cooperation with the director, shall develop grant application procedures and approval criteria. The director shall ensure the proper administrative support to successfully monitor grant recipients for compliance with grant criteria and all other procedures under the grant program. The director in cooperation with the safety and health impact grant review committee shall implement procedures and criteria for grant approval, including procedures for suspension or revocation of grants to recipients failing to comply with grant criteria established under the authority of this section.

(2) The director shall approve only those grant applications and their recommended acceptance conditions as forwarded by the safety and health impact grant review committee, unless the director has a compelling and substantive reason to reject an application, whereupon the director shall provide written explanation for the denial to the review committee. The safety and health impact grant review committee shall review any grant applications rejected by the director and may advise the director to reconsider. The director shall consider the advice, if given, and shall approve the grant application with any conditions presented by the safety and health impact grant review committee. The director may reject that advice only for a compelling and substantive reason. If the director rejects that advice, the safety and health impact grant review committee may refer the application to the WISHA advisory committee. The WISHA advisory committee shall review the application and may advise the director to reconsider.

(3) The director may revoke or suspend an issued grant if advised by the safety and health impact grant review committee that the recipient is not in compliance with grant criteria or procedures. The director may suspend an issued grant without the advice of the safety and health impact grant review committee only for a compelling and substantive reason and the suspension recommendation shall be presented to the safety and health impact grant review committee for its consideration.

NEW SECTION. Sec. 9. For purposes of the 2001-2003 time frame, the director shall approve one grant application of up to one million dollars per year, and its recommended acceptance conditions as forwarded by the safety and health impact grant review committee, that is selected by the employee representatives of the review committee, unless the director has a compelling and substantive reason to reject the application, whereupon the director shall provide written explanation for the denial to the review committee. This grant shall be above and beyond the funding authorized in section 5(2) of this act. The entire review committee, by the normal two-thirds vote, shall forward such a grant proposal if the grant meets all other criteria and accountability requirements. The specified time frame in this section shall be determinative for meeting the grant duration requirements in section 5(8) of this act.

NEW SECTION. Sec. 10. The department and the safety and health impact grant review committee will present an annual review regarding the activities of the safety and health impact grant program to the WISHA advisory committee, the workers' compensation advisory committee, and make it available to the appropriate standing committees of the legislature. Based on a recommendation of the WISHA advisory committee, the workers' compensation advisory committee shall make a biennial recommendation to the director concerning an appropriate budget for the program and the maximum amount of individual grant awards.

NEW SECTION. Sec. 11. The director and representatives from the WISHA advisory committee shall perform a comprehensive review of the grant program which shall include, but not be limited to, reported outcomes, injury reduction, and safety awareness and shall issue a report to the legislature by December 31, 2004.

NEW SECTION. Sec. 12. The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective July 1, 2005:

(1) Section 2 of this act;

(2) Section 3 of this act;

(3) Section 5 of this act;

(4) Section 6 of this act;

(5) Section 7 of this act;

(6) Section 8 of this act;

(7) Section 9 of this act;

(8) Section 10 of this act; and

(9) Section 11 of this act.

NEW SECTION. Sec. 13. Sections 5 through 12 of this act are each added to chapter 49.17 RCW.

NEW SECTION. Sec. 14. A new section is added to chapter 49.17 RCW to read as follows:

If the validity of the rules dealing with musculoskeletal disorders, codified as WAC 296-62-05101 through 296-62-05176, as adopted on May 26, 2000, or any new or amended rules dealing with musculoskeletal disorders that are substantially the same as these rules is challenged, after the petitioner has identified the defects in the rules, the burden of going forward with the evidence is on the department.

NEW SECTION. Sec. 15. A new section is added to chapter 49.17 RCW to read as follows:

Nothing in this act shall be construed in any manner to indicate that the rules dealing with musculoskeletal disorders, codified as WAC 296-62-05101 through 296-62-05176, as adopted on May 26, 2000, or any new or amended rules dealing with musculoskeletal disorders that are substantially the same as these rules are required by, or are consistent with, chapters 34.05 and 49.17 RCW, or any other law.

NEW SECTION. Sec. 16. A new section is added to chapter 49.17 RCW to read as follows:

A petition for judicial review of the rules dealing with musculoskeletal disorders, codified as WAC 296-62-05101 through 296-62-05176, as adopted on May 26, 2000, or any new or amended rules dealing with musculoskeletal disorders that are substantially the same as these rules may be filed at any time, except that no action based upon RCW 34.05.375 may be maintained to contest the validity of the rules unless it is commenced within two years after the department begins enforcement of the rules.

NEW SECTION. Sec. 17. Sections 1 through 4 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately."

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