Holmquist Newbry will continue reforms of workers' comp system

SES LAKE - With no huge operating budget issues for the upcoming Legislative session, Sen. Janéa Holmquist Newbry's top priority is private sector job creating.

In light of Boeing's decision to shop around for locations to build the new 777X aircraft despite lawmakers offering about $10 billion in tax breaks, Holmquist Newbry, R-Moses Lake, and chair of the Commerce and Labor Committee, is looking to increase predictability and stability for the state's employers.

"We have been having a little more light shining on the cost of doing business in Washington," she said, citing a CNBC Best States for Business Survey, which ranked the state sixth-worse when it comes to the cost of doing business.

Holmquist Newbry said a major factor in the poor rankings is the high workers' compensation system, which she will work to reform. Workers' compensation rates will increase by 2.7 percent during 2014 and likely continue to increase, Holmquist Newbry said.

"If we don't do anything to reform the system and capture some cost savings, then folks will be expected to have their rates increase to the tune of $2 billion in the next nine years," she said. "I think the governor and the Legislature has missed the boat trying to send a message to Boeing and other businesses to create a business friendly state."

Holmquist Newbry said if Boeing decides to locate production of the new aircraft in another state, it should be a wake up call for lawmakers that reform is necessary.

"What's good for Goliath should be good for David," she said. "When we do something for the entire business climate to improve it, such as workers' comp reform, that helps every employer, small or large."

She added lawmakers have looked at what other states are doing to reduce costs for workers' comp. Forty seven other states offer injured workers a form of a settlement option to allow them to return back to work if able, Holmquist Newbry added. In Washington, settlements are only available for those older than 55, which she would like to see change to all ages. Doing this would help save money and ensure options for workers who want to return to work.

It's a bad deal for employers and employees right now," she said. "It takes longer than twice the nation average to return an injured worker to their job. Many times, they're trapped in an unresponsive system."

In the worst cases, injured workers are stuck in a lifetime disability pension that prohibits them from ever returning to work, Holmquist Newbry said.

She said the Commerce and Labor Committee will also be working to pass a bill that would require a state preemptive minimum wage and paid sick leave in light of the $15 minimum wage legislation that recently passed in Seattle.

The law would not allow jurisdictions to go above the state law minimum wage or paid sick leave, Holmquist Newbry said.

"It really creates an unfair and cumbersome playing field for our employers," she said. "Our employers in our area that have to send their products over the SeaTac now have to keep a different set of books for employees working in that jurisdiction."

Also a priority for Holmquist Newbry is to reform the transportation system and allow the transportation sales tax, about $1 billion each year, to go toward building roads and improving infrastructure. Currently, the tax dollars received are moved to the general fund.

"It's basically a way to siphon taxpayers transportation dollars out of transportation and into the general fund," she said. "We're basically paying ourselves a sales tax on those projects and siphoning your transportation dollars into the operating budget."

Holmquist Newbry said she wants to see reform of the system before voting for any gas tax increase, which has been proposed to increase by 10 cents. Including the federal gas tax, 55.9 cents of each gallon would be a tax.