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Bill would require L&I to administer claims if self-insured municipality is decertified
Summary
House Bill 1275 would direct the Department of Labor and Industries to administer and pay workers’ compensation claims when a municipal self-insured employer or self-insurance group is decertified; the decertified employer would remain liable to reimburse L&I.
House Bill 1275 would clarify that when a municipality or a statutory self-insurance group is decertified as a self-insured employer by the Department of Labor and Industries, L&I must administer and pay outstanding workers’ compensation claims on behalf of injured workers. The decertified employer or group would remain financially liable to reimburse L&I for those payments.
Tammy Fellin of the Department of Labor and Industries testified that the bill is agency-request legislation to fill an administrative gap if decertification occurs. She said the department has not yet faced this situation and intends to use rulemaking and stakeholder input to design procedures for administering claims and collecting reimbursements if the statute is enacted.
Vice Chair Scott, who sponsored the bill, told the committee there are roughly 360 self-insured employers in Washington, about 70 of which are municipalities. He said decertification under the “good faith and fair dealing” standard should not absolve a municipal employer of pension or workers’ compensation obligations and that L&I should have explicit authority to step in to ensure injured workers continue to receive benefits.
The committee heard the agency briefing and the bill sponsor’s explanation; no formal opposition testimony was recorded during the hearing. The committee did not take final action during the public hearing.
