Rep. Steve Conway pledged to work with the business community to resolve some of the problems with Washington's workers' compensation system.
"Does it need reform? Yes," Conway, D-Tacoma, said during the labor and workforce panel discussion at AWB's Legislative Day in Olympia.
Without some changes, the system is a "potential powder keg" of rate increases in the coming years, he said.
Conway, who is chairman of the House Commerce & Labor Committee, declined to give a hearing to HB 2950, a bill backed by AWB that proposed a series of moderate but important reforms.
Conway acknowledged that many in the audience were disappointed the bill did not receive a hearing. The real reason it did not, he said, is because there was not enough time in short, 60-day legislative session.
The major components of the issue include compromise and release, establishing medical provider networks, and occupational diseases, Conway said.
"I am absolutely committed to working with you on these issues," he said.
Rep. Cary Condotta, R-Wenatchee, joined Conway on the panel, and expressed excitement over the possibility of making headway on the issue.
"It sounds we're at least breaking through the ice a little bit," Condotta said.
The lawmakers also agreed that something needs to be done to address the volatility in the state's unemployment insurance tax system.
Just as employers are beginning to recover from recession -- and should be hiring new workers -- they are hit with huge UI increases, which dampens the job market.
Judy Coovert, co-owner of Printcom in Burien, offered her business as Exhibit A during a question and answer session. "My rate went up 347 percent," Coovert said.
Conway said he looked into the issue and determined that the state's system for calculating rates, which relies in part on a "social tax."
"We need to go back and re-visit this social cost factor in the unemployment insurance taxes," Conway said.
The lawmakers differed in their view of the credit market.
Conway said he believes the persisting lack of credit, especially to the construction sector, is a major problem that needs to be addressed.
Condotta said he believes over-leveraging is what created the economic crisis, and it won't be fixed by increased lending.
Businesses and individuals have adjusted to the new economic reality, he said. "I'm concerned that government hasn't seen fit to do the same."
