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OPINION: Democrats focused
on political payback
By Sen. Linda Evans Parlette and Rep. Cary
Condotta;
As published in the Seattle P-I
The Legislature faces
several difficult challenges this session, including fixing a state
budget shortfall that has reached $2.2 billion, resolving Washington's
health care crisis, reforming our elections system and continuing
efforts to create jobs.
With so many important and
relevant issues before us, it's disappointing that some of our
Democratic colleagues are focusing time and energy on what is nothing
more than political payback.
They want to place
unnecessary restrictions on trade and professional organizations that
manage state-approved workers' compensation pools called the
retrospective rating -- or retro -- program.
This optional and voluntary program is offered by the Department of
Labor and Industries to increase safety, return injured workers to their
jobs more quickly and reduce industrial insurance costs for employers by
creating safer workplaces. The program has more than 17,000
participating employers. Employers can enroll in their own plan or in
group plans sponsored by trade associations and/or professional
organizations.
If an association runs the
program effectively, members' premiums can exceed losses and the
association receives a refund of the money it collected. Some of the
refund goes back to employers but the association may keep a percentage
as an administrative fee based on its agreement with its members.
This program functions very well. It provides safer workplaces than
other employers not involved in a retro program. Employers are not
complaining about it. And all of the refunds come from the accident
fund, which consists solely of employer premiums, so no worker or
taxpayer money is involved.
So why change the retro
program? The program's only "offense" is that a portion of the refund
can be used on whatever an association desires, including political free
speech.
As a result, labor unions
want to limit their foes' political free speech by limiting their
funding. Call it "retro-bution." Call it hypocrisy, since many unions
use mandatory member dues for political activity.
There are identical bills
in the Legislature -- House Bill 1875 and Senate Bill 5842 -- that would
regulate how these organizations manage their retro programs.
These proposals would
limit use of any refunds -- paid by private employers, not taxpayers --
to a list of government-approved activities, and that list doesn't
include political free speech. The bill would also let L&I inspect the
financial records of associations and private employers to make sure
they comply with the new restrictions.
If passed, either bill
would give associations little incentive to operate the program, which
may cause it to collapse and reduce worker safety. It could also
increase workers' compensation rates across the board, aggravating a
challenging business climate.
These measures are the
second attempt this year to put the brakes on the retro program under
the guise of better public policy. HB 1070 tried to cap at 10 percent
the administrative fee that retro associations can keep, but this
proposal was quickly abandoned after being widely criticized. The new
measures include a complicated classification system used to rate groups
-- an idea that's also quickly being abandoned.
The bills' proponents
argue that these voluntary retro programs are flawed, but that isn't
true. It is an attempt by government to tell private entities how to use
their own money. When people receive an income tax refund, the
government doesn't limit how they can spend it. That same hands-off
approach should apply to the retro refund.
The Legislature should
spend its time finding solutions to real problems, not fixing something
that isn't broken or blatantly attacking political foes.
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For more information, contact:
Bobbi Cussins, Public Information Officer: (360) 786-7252
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