SENATE BILL REPORT
SB 6149
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
As Reported by Senate Committee On:
Commerce & Labor, February 5, 2014
Title: An act relating to contractor liability for industrial insurance premiums for not-for-profit nonemergency medicaid transportation brokers.
Brief Description: Addressing contractor liability for industrial insurance premiums for not-for-profit nonemergency medicaid transportation brokers.
Sponsors: Senators Angel, Rolfes and Sheldon.
Brief History:
Committee Activity: Commerce & Labor: 1/22/14, 1/31/14, 2/05/14 [DPS, DNP].
SENATE COMMITTEE ON COMMERCE & LABOR |
Majority Report: That Substitute Senate Bill No. 6149 be substituted therefor, and the substitute bill do pass.
Signed by Senators Holmquist Newbry, Chair; Conway, Ranking Member; Hewitt and King.
Minority Report: Do not pass.
Signed by Senator Kohl-Welles.
Staff: Mac Nicholson (786-7445)
Background: Under state industrial insurance statutes, a contractor is liable for the unpaid workers' compensation premiums of any subcontractor. In the construction industry, a contractor can shield themselves from liability for a subcontractor's unpaid premiums by ensuring that the subcontractor meets certain requirements, including having an industrial insurance account in good standing with the Department of Labor and Industries (L&I) or being a self-insurer.
Medicaid clients in Washington are provided nonemergency medical transportation to and from covered services, such as doctor's appointments. Transportation brokers contract with the state to arrange, coordinate, and manage nonemergency medical transportation for Medicaid clients.
Summary of Bill (Recommended Substitute): Nonemergency transportation brokers that operate as nonprofits are not liable for unpaid subcontractor premiums if:
the subcontractor maintains a separate set of books or records that reflect all income and expenses of the business; and
the subcontractor has an industrial insurance account in good standing with L&I or is a self-insurer.
The subcontractor must meet the requirements throughout the term of contract.
Nonemergency transportation brokers are those organizations or entities that contract with the state Health Care Authority, or its successor, to arrange nonemergency transportation for qualified clients.
EFFECT OF CHANGES MADE BY COMMERCE & LABOR COMMITTEE (Recommended Substitute): The substitute adds the requirement that the subcontractor maintain a separate set of books or records that reflect all income and expenses of the business. The subcontractor must meet this requirement and the requirement regarding the industrial insurance account throughout the term of contract.
The substitute also defines nonemergency transportation brokers.
Appropriation: None.
Fiscal Note: Available.
Committee/Commission/Task Force Created: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony on Original Bill: PRO: Nonprofit transportation entities are okay with doing their due diligence when hiring a subcontractor, but they should not be held responsible when a subcontractor is fined as a result of an L&I audit and the subcontractor is not around anymore. A prime contractor who already conducts a quarterly check on its subcontractors' L&I accounts should be able to rely on that information.
Persons Testifying: PRO: Ann Kennedy, Paratransit Services.