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Committee briefs on bill clarifying liability when municipal self‑insurers are decertified
Summary
House Bill 1275 would clarify Department of Labor & Industries authority to pay claims if a municipal self‑insurer is decertified and to collect reimbursements from the decertified entity. Staff and agency witnesses described the bill as an agency request to align practice with existing law; no public opposition was recorded in the hearing.
A Department of Labor & Industries‑sponsored bill to clarify the state's handling of workers' compensation claims when municipal self‑insurers are decertified received a brief staff and agency briefing before the House Appropriations Committee.
House Bill 1275 would confirm L&I's authority to pay compensation when a municipal employer or self‑insurance group is decertified and then require the decertified entity to reimburse the department for payments made. Committee staff explained the bill applies in circumstances where an employer's self‑insurance certification is terminated or revoked and that existing law already contemplates L&I's obligation to pay benefits in those situations.
"This is an agency request bill," Tammy Fallon of the Department of Labor and Industries said. Fallon told the committee that the bill gives L&I the authority and direction to collect funding from a municipal employer if decertification occurs. She said L&I had not decertified any entities to date and did not expect to do so but needed clear statutory authority to recover payments if decertification occurs.
Staff fiscal remarks described indeterminate cash receipts because it is unknown how many municipal self‑insurers might be decertified and what claims costs would be paid. L&I staff said anticipated expenditures would be minor and reimbursable through receivables collected from decertified entities.
No public opposition testimony was offered during the hearing. The committee took no formal vote and concluded the public hearing after the agency presentation.
Ending: Committee staff and L&I said they would continue to work with the sponsor on technical details; the hearing record closes with a staff briefing and agency testimony.
