Building Industry Association of Washington files workers comp initiative

By ERIK SMITH

Staff writer

Washington State Wire

The Building Industry Association of Washington, one of the state's most politically active trade associations, has filed an initiative that would junk the state-run worker's compensation system and allow private insurers to offer policies instead.

The measure mirrors a bill introduced in the state House by Rep. Doug Ericksen, R-Ferndale, House Bill 2879, which is not expected to get a hearing in the Democrat-controlled Legislature. Democrats have sided with labor interests in opposing changes to the system.

Amy Brackenbury, lobbyist for the organization, said the initiative filed last Wednesday afternoon may not be the final version that the group will take to the voters. But it demonstrates that its talk of an initiative is no idle threat.

Fast-rising premium costs have made worker's compensation a front-and-center issue in this year's legislative session. Last year the state Department of Labor and Industries raised rates an average 7.6 percent to help cover a $1 billion shortfall in the state fund. But that won't even come close, says a report from the state auditor's office. Rates would have to increase by a third to stave off insolvency, the audit says. Which means further increases may be in store for business next year.

Washington is one of four states that do not allow private competition, and while large employers are allowed to self-insure, about four-fifths of the state's workers are covered by the state program.

Democratic leaders have reaffirmed their plan not to allow the business measure to advance.

“That particular bill is not moving forward,” House Speaker Frank Chopp, D-Seattle, said. But he said some of its components might be pushed as separate bills.