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Condotta calls for rejection
of retro bill
Rep. Cary Condotta,
R-Wenatchee, is raising the alarm about legislation introduced Wednesday
that he said is a second attempt to inject government into a process
that’s working just fine without public interference. Condotta views
House Bill 1875, which would regulate how trade and professional
organizations manage retrospective rating programs – “retro” for short –
as simply politics wrapped up in a piece of legislation. The bill is
scheduled for a hearing on Tuesday, Feb. 15 at 6 p.m. in House Hearing
Room C.
“Employers and
associations have not asked for this change, because the voluntary retro
program is working very well for business owners,” said Condotta. “This
bill isn’t aimed at improving our business climate. It would simply shut
down the free speech rights of political opponents under the guise of
better public policy. It’s wrong, and I’m disappointed that it looks
like the Legislature will be spending the public’s time and money fixing
something that isn’t broken.”
Washington allows trade and professional associations to run retro
programs that employers can join with the goal of reducing their
industrial insurance costs. The association manages employers’ claims,
pro-actively helps with workplace safety and allows employers to share
risk. If retro members’ claims outweigh premiums, the association and
members are on the hook to pay the balance of the claims. However, if
the association runs the program effectively, members’ premiums can
exceed losses and the association receives a refund. Some of the refund
goes back to employers, but the association may also keep a percentage
as an administrative fee based on its agreement with retro members.
Some retro organizations use those refunds, in part, to support
political causes that benefit members. HB 1875, along with its companion
measure, Senate Bill 5842, would prohibit use of refunds for this
purpose and limit refund use to a list of government-approved
activities. The bill would also require the Department of Labor and
Industries to regularly inspect and review records of the retro
associations and private employers.
“This bill is an attempt
by government to tell private entities how to use their own money. The
Legislature has many serious issues we must solve this year, including
balancing a two-year state budget and dealing with the real workers’
compensation issues that have been on the table for several years. We
should be spending the public’s time and money on issues of policy, not
politics.”
HB 1875 is the second such
bill introduced this year. HB 1070, which caused a large measure of
public outcry, would cap at 10 percent the amount of refunds
associations could keep for administering retro programs.
“This new bill is a retro
re-run – just another piece of legislation that achieves the same goal,”
Condotta remarked. “We should be working on ways to improve our business
climate and create jobs, not inserting government regulations into a
process that’s working very well on its own.”
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For more information, contact:
Bobbi Cussins, Public Information Officer: (360) 786-7252
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