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State Representative Cary Condotta - 12th Legislative District

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FOR IMMEDIATE RELEASE

March 6, 2008

 


Raiding injured workers' fund must stop, says Condotta

Rare procedural move used to halt Democrat proposal to raid $1 million

In an effort to halt yet another attempt to divert $1 million from state Industrial Insurance funds, Rep. Cary Condotta tonight made a rarely used motion to move House Bill 3387 directly to the floor for a vote. The motion failed on a party line vote.

House Bill 3387 would require that Industrial Insurance funds be spent for purposes solely related to the payment of benefits to injured workers or the administration of the workers’ compensation system. The bill would allow impacted ratepayers, both employers and employees, to file suit to stop the illegal diversion.

"Since 2001 we've seen the insurance fund raided of millions of dollars to pay for programs unrelated to the primary functions of workers' compensation. My bill is aimed at stopping the bleeding of the fund to pay for other programs in the state budget," said Condotta, lead Republican on the House Commerce and Labor Committee. "There's obviously too much money in the fund and some lawmakers can't resist the temptation to spend it. The best thing the House could have done was pass my bill to protect the fund and the workers who depend on it."

The majority party in the Senate has suggested siphoning $1 million more out of the Industrial Insurance funds. Over the past several years, explained Condotta, tens of millions of dollars from the Industrial Insurance fund have been raided.

The East Wenatchee Republican said other states have had the same experience with their funds being pilfered for state programs unrelated to workplace injuries and have successfully sued to stop the practice. His legislation would create the same actionable cause in Washington.

"This has to stop. We saw the majority party use the workers' compensation fund to pay for paid family leave and now we have a situation where funds could potentially be taken again," said Condotta. "We have some of the highest workers' compensation and industrial insurance rates in the nation, but when folks want to take 'excess' money out of the program it tells me the rates are kept artificially high for this very reason - to keep a large pot of money that can be taken without raising taxes. It's wrong and the practice should stop immediately."

Proponents of Condotta's bill said today that each year up to $60 million of the workers' compensation trust fund is diverted to places other than the Industrial Insurance division of the state Department of Labor and Industries. Examples, according to proponents, include using the funds to pay for minimum wage inspectors and apprenticeship programs. Last year, it funded additional farm labor contractor inspectors. All of these programs, they said, are illegal uses of the fund.

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For more information, contact: Bobbi Cussins, Public Information Officer: (360) 786-7252
 

 
 

House Republican Communications - (360) 786-7031 * 408 John L. O'Brien Bldg. * Olympia, WA 98504-0600