This bill amends existing laws regarding the responsibilities of self-insured employers and third-party administrators in the context of industrial insurance. Key changes include the withdrawal of certification for self-insurers under specific conditions, such as failure to comply with corrective actions or repeated violations of good faith and fair dealing. The bill removes previous language that specifically referred to municipal employers and private sector firefighters, broadening the scope to all self-insured employers. Additionally, it establishes a framework for corrective actions and penalties for self-insurers who violate their duties, including a probationary status and potential withdrawal of certification for repeated offenses.

The legislation also mandates that the Department of Labor and Industries investigate complaints regarding violations of good faith and fair dealing, with a structured process for responses and determinations. It emphasizes that errors or delays that are minor or inadvertent do not constitute violations. The act applies to all claims regardless of the date of injury and is set to take effect on January 1, 2026.

Statutes affected:
Original Bill: 51.14.080, 51.14.180
Bill as Passed Legislature: 51.14.080, 51.14.180
Session Law: 51.14.080, 51.14.180