ByRepresentatives Corry, Hoff, Orcutt, Klippert, Vick, Gildon, Dent, Griffey, McCaslin, Graham, Eslick, Chambers, Smith, Jenkin, Van Werven, and Goehner

AN ACT Relating to creating a task force to improve employers' industrial insurance options through choice and competition; creating new sections; and providing an expiration date.

NEW SECTION. Sec. 1. The legislature finds that most states use competition to maximize efficiency in their workers' compensation programs. Private sector competition in providing workers' compensation insurance has been effective in reducing premium costs, maximizing program efficiency, and creating innovative safety programs to protect all workers. Therefore, the legislature intends to create a task force to explore allowing Washington state employers to purchase industrial insurance offered by private industrial insurance providers.

NEW SECTION. Sec. 2. (1) The joint legislative task force on industrial insurance choice and competition is established. The task force consists of the following sixteen voting members:

(c) One member from each major caucus of the house of representatives, appointed by the speaker of the house of representatives;

(e) The following members, appointed jointly by the president of the senate and the speaker of the house of representatives:

(i) Five members representing business, selected from nominations submitted by statewide business organizations. At least one of the members must represent small business and at least one of the members must be a self-insured employer under Title 51 RCW;

(ii) Two members representing insurers, selected from nominations submitted by statewide insurance organizations; and

(2) The task force shall review the impacts to employers and employees of allowing employers the additional option of private industrial insurance. The review shall include employers who are self-insured and employers who purchase through the state industrial insurance program.

(3)(a) The task force shall use legislative facilities and staff from senate committee services and the office of program research and may hire additional staff with specific technical expertise if such expertise is necessary and funds are available for that purpose.

(b) The task force, when appropriate, may consult with individuals from the public and private sector or ask such persons to establish an advisory committee. Members of such an advisory committee are not entitled to expense reimbursement.

(c) The department of labor and industries and the office of the insurance commissioner shall cooperate with the task force and each provide a nonvoting liaison member to the task force.

(4) The chairs of the house labor and workplace standards committee and the senate labor and commerce committee shall convene and chair the first meeting of the task force, at which time the members shall select two cochairs from its membership.

(5) Legislative members of the task force are reimbursed for travel expenses in accordance with RCW 44.04.120. Nonlegislative members are not entitled to be reimbursed for travel expenses if they are elected officials or are participating on behalf of an employer, governmental entity, or other organization. Any reimbursement for other nonlegislative members is subject to chapter 43.03 RCW.

(6) The expenses of the task force must be paid jointly by the senate and the house of representatives. Task force expenditures are subject to approval by the senate facilities and operations committee and the house of representatives executive rules committee, or their successor committees.

(7) The task force shall provide a report of its findings and recommendations to the appropriate committees of the legislature by December 1, 2020.