Washington Workers' Comp Insurance Reform, Initiative 1082 (2010)

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The Washington Workers' Comp Insurance Reform Initiative, also known as Initiative 1082, was on the November 2, 2010 ballot in Washington as an Initiative to the People, where it was defeated. The measure would have privatized industrial insurance. Specifically the initiative would have created a Joint Legislative Task Force on Private Competition for Industrial Insurance. The task force would have been charged with developing proposed legislation and making recommendations by December 2011. The Washington Legislature would have been required to adopt the legislation by March 1, 2012.

According to the Washington Secretary of State's office, the public workers’ comp insurance program at the time covered approximately 2.5 million workers. Coverage included work-related injuries, lost-time compensation, medical care and other services.

The measure was filed by Building Industry Association of Washington (BIAW).

On June 30, two days prior to the state's petition drive deadline, supporters submitted an estimated 340,000 signatures for Initiative 1082. Following a 3 percent random signature check the secretary of state certified the measure on July 13, 2010.

Election results

Washington Initiative 1082 (2010)
Result		Votes	Percentage
d No		1,431,516	59.09%
Yes		991,153	40.91%

Election results via: Washington Secretary of State (dead link)

Text of measure

The ballot title read:

“

Statement of Subject: Initiative Measure No. 1082 concerns industrial insurance. Concise Description: This measure would authorize employers to purchase private industrial insurance beginning July 1, 2012; direct the legislature to enact conforming legislation by March 1, 2012; and eliminate the worker-paid share of medical-benefit premiums. Should this measure be enacted into law? Yes [ ] No [ ]

”

Summary

According to the description prepared by the Washington Secretary of State:

This measure would permit certification of private insurers as industrial insurance insurers, and authorize employers to purchase state-mandated industrial insurance coverage through an “industrial insurance insurer” beginning July 1, 2012. It would establish a joint legislative task force to propose legislation conforming current statutes to this measure’s provisions, and would direct the legislature to enact such supplemental conforming legislation as necessary by March 1, 2012. It would also eliminate the worker-paid share of medical-benefit premiums.

Support

The initiative was sponsored by Building Industry Association of Washington (BIAW). According to the association they planned to use paid signature gatherers to collect the required signatures. The proposed initiative was endorsed by the National Federation of Independent Business.

In late August 2010 the Washington State Republican Party announced their endorsement for I-1082. "We urge the approval of Initiative 1082, which will help small businesses by eliminating the state government monopoly on worker's compensation insurance and open the market to private competition," they said.

Contributions

Reports in August 2010 revealed that supporters collected an estimated $1 million in campaign contributions. According to late August reports, the Building Industry Association of Washington spent $500,000 to qualify the measure for the ballot. Liberty Mutual was reported to have contributed $300,000 to the campaign.

Below is a chart that outlines major cash contributions to the campaign in support of I-1082:.

Contributor	Amount
Building Industry Association of Washington	$1,000,000
Liberty Mutual (NH)	$700,000
Big I	$324,316.02
The Hartford (CT)	$300,000
Farmers Insurance Services (CA)	$250,000

Opposition

The campaign committee in opposition to I-1082 was called "No-on-1082". Opponents argued that the measure would primarily benefit employers and insurance companies. "Small business owners understand that I-1082 is loaded with fine print that benefits the insurance industry: Forcing our state's employers to pay the entire workers' compensation premiums of their employees will cost hundreds of millions of dollars: That's in the initiative," said Alex Fryer, spokesman for the No-on-1082 campaign.

The Washington State Labor Council was opposed to the proposed initiative. Council president Rick Bender said, "We are strongly opposed to it because it is not in the interest of workers, nor do we think it’s in the interest of small businesses as well – as they will soon find out from other states."

Other opponents, included the Washington Federation of State Employees, State Insurance Commissioner Mike Kreidler and State Auditor Brian Sonntag.

Contributions

According to September 2010 reports the No on I-1082 campaign raised an estimated $910,000.

Below is a chart that outlines major cash contributions to the campaign in opposition of I-1082:.

Contributor	Amount
Stop Insurance Industry Takeovers	$1,725,000
Aerospace Machinists Industrial Lodge #751	$350,300
Washington State Labor Council (AFL-CIO)	$175,000
Washington State Building and Construction Trades Council	$125,000
Don't Invest in More Excuses (DIME) PAC	$100,000

Media editorial positions

See also: Endorsements of Washington ballot measures, 2010

Support

• The Yakima Herald-Republic supported I-1082. "Initiative 1082 sets up a classic election-year power struggle between industry and labor interests. Voters on Nov. 2 will decide whether to end the state's monopoly on workers' compensation insurance, also known as industrial insurance, allowing private insurers to compete for that business. That's the way it's done in 46 states, and Washington should be the 47th. Vote yes on Initiative 1082," said the editorial board.

• The Kitsap Sun supported the measure. "In states where similar measures have been enacted, employers’ insurance costs have dropped. This also could encourage safer workplaces with fewer claims, which would mean lower insurance rates for businesses. Vote “yes” on I-1082," said the board.

• The Bellevue Reporter was in support. "I-1082 will end the state's monopoly on workers insurance, bringing a fairer, more financially stable system. Vote 'Yes' on I-1082," said the board.

Opposition

• The Seattle Post-Intelligencer was opposed to I-1082. In an editorial, the board said, "The vast majority of us know little of what it is to lose one's ability to work. But we should understand that to put folks' fate in the hands of insurance companies, unregulated and out to maximize profits, is short-sighted and callous. The current system doles out benefits, often at a minimal level, but benefits that a person can count on. And most people making smaller claims want to get the matter settled, and get back to work."

• The Olympian was opposed to I-1082. In an editorial, the board said, "As written, I-1082 would virtually eliminate oversight of workers’ compensation claims, leaving injured workers in the lurch. I-1082 is also a terrible hit on small business owners — increasing their tax burden at a time when many are barely hanging on."

• The Columbian was opposed to I-1082. In an editorial, the board said, "I-1082, which would dangerously weaken state oversight over the insurance industry, seeks to repair a system that is not broken. Our state’s workers comp system is run more efficiently than private systems in other states."

• The Pacific Northwest Inlander was opposed to I-1082. In an editorial, the board said, "But this is not reform — this is just a grab for market share by big insurance companies."

• The Stranger was opposed to the proposed initiative. The editorial board wrote, "...while no one thinks the state workers' comp program is doing just fine—it needs reform—this initiative would privatize workers' comp in a way that hurts workers...Vote no."

• The Skagit Valley Herald was opposed to I-1082. In an editorial, the board said, "Whatever the problems with the state’s worker compensation system, we are wary of a fix fashioned by the state’s most injury-prone industry and insurance companies...The system isn’t perfect. But its flaws should be worked out through the legislative process with both business and labor at the table."

• Publicola opposed I-1082. "We think choice is good, and we’re skeptical of the efficiency of the state’s monopoly on workers’ compensation, but giving insurance companies keys to the overhaul of our system—and allowing them to operate free of regulations—is a step in the wrong direction," said the editorial board.

Reports and analyses

In 2010 the Washington Office of Financial Management released fiscal impact statements for initiatives scheduled to appear on the 2010 ballot, including Initiative 1082. Below is an excerpt:

Industrial insurance premium paid into state Trust Funds is estimated to decrease $1.1 billion–$1.43 billion by calendar year 2014 as employers shift to private insurers. State claim costs correspondingly decrease as claims shift from the state to private insurers. State revenue is estimated to increase $61 million–$75 million over five fiscal years. Costs are estimated to increase up to $179 million for the state and $47.25 million for local governments over five fiscal years. Assuming no legislative action to conform statutes to the initiative, industrial insurance premium paid into state Trust Funds and associated costs may increase.

Read the full report here

Polls

See also: Polls, 2010 ballot measures

• A September 9-12, 2010 poll of 500 likely voters by Elway Poll revealed that 31% supported the proposed measure, while 31% were opposed and 38% were undecided.

• An October 7-10, 2010 poll of 400 likely voters by Elway showed that 31% supported the proposed measure, while 40% opposed it and 29% were undecided.

Legend      Position is ahead and at or over 50%     Position is ahead or tied, but under 50%

Date of Poll	Pollster	In favor	Opposed	Undecided	Number polled
Sept. 9-12, 2010	The Elway Poll	31%	31%	38%	500
Oct. 7-10, 2010	The Elway Poll	31%	40%	29%	400

Path to the ballot

I-1082 petitions. Photo credit: Washington Secretary of State

See also: Washington signature requirements and 2010 ballot measure petition signature costs

In order to qualify for the November ballot, supporters were required to submit a minimum of 241,153 valid signatures by July 2, 2010.

According to the Washington Secretary of State supporters scheduled an appointment with the state elections office for 11:30 a.m. on July 2 to deliver petitions. However, on June 30, two days prior to the state's petition drive deadline, supporters submitted an estimated 340,000 signatures for Initiative 1082.

Signature validity count

I-1082 qualified for the 3 percent random signature check. Supporters submitted 345,541 signatures. According to the Washington Secretary of State's office, of the 10,571 signatures that were reviewed, a total of 9,017 were accepted. The error rate was 18.9 percent, which according to state officials, was a little higher than average. Signatures were invalidated for several reasons: "no registration could be found for the signer, the signature didn’t match the one on file or there was no usable image on file for the signer, or because they were duplicates."

See also

Suggest a link

• 2010 ballot measures
• Washington 2010 ballot measures

Articles

• Initiative petition deadlines arrive in Oregon and Washington
• Workers' Comp Initiative second to file in Washington state

External links

• Full text of filed initiative - 1082
• 2010 Election Voters Guide (dead link)

Campaign links

• Building Industry Association of Washington, (sponsor)
• Save Our Jobs, (supporters)
• Vote No 1082, (opponents)
• Protect Washington (dead link), (opponents)

Additional reading

• The Seattle Times,"Economy, lawsuits hammer at BIAW," September 7, 2010
• The Spokesman Review,"Money pours into initiative campaigns," September 5, 2010
• Tri-City Herald,"Businesses worry about I-1082 costs," September 2, 2010
• The News Tribune,"Ballot will shape state budget," August 30, 2010
• Washington Secretary of State's: From Our Corner,"Here’s your quick guide to WA ballot measures," August 10, 2010
• KPLU 88.5,"$8.2M Spent So Far To Get Initiatives On Wash. Ballot," July 15, 2010
• The News Tribune,"Initiatives: Many are filed, but few are sane," June 1, 2010
• Washington's: From Our Corner,"2010 initiative season underway," January 26, 2010