Vote Smart's Synopsis:

Vote to pass a bill that requires the Department of Labor and Industries to conduct an annual actuarial review of the retrospective ratings program for five consecutive years beginning January 1, 2010, and requires groups participating in the program to obtain authorization from member employers to expend funds for costs unrelated to safety programs or other costs approved by this Act.

Highlights:

- Requires sponsoring entities to distribute retrospective rating refunds or adjustments to employers in the retrospective ratings group according to a distribution plan, except for a portion of the refund to be spent on the following (Sec. 4):

- Reasonable administrative costs; - Costs directly related to the development and implementation of a safety plan to increase workplace safety and to prevent accidents; - Costs directly related to claims assistance provided to its member employees; and - Establishing and maintaining reserves for covering the costs of future potential retrospective rating assessments and to protect against future penalties or other unexpected costs incurred during the same or subsequent coverage year.

- Requires the distribution plan to be provided to the Department of Labor and Industries upon enrollment, and annually to the members of the retrospective ratings group (Sec. 4). - Specifies that an authorization by an employer to spend a portion of the refund or adjustment on costs unrelated to the distribution plan or other costs approved by this Act will remain effective for one year (Sec. 4). - Requires the Department's annual review to include an examination of the following (Sec. 3):

- Method used to calculate retrospective premiums, refunds, and assessments; - Impact of the retrospective rating refunds and assessments on the accident fund; and - Other factors necessary to conduct a thorough review.

- This is a substitute bill sponsored by the Senate Committee on Labor, Commerce and Consumer Protection.

Full Bill Text