Judge rejects effort to freeze BIAW spending

OLYMPIA — The Building Industry Association of Washington can continue to spend money on the governor's race while a court case against the group moves forward, a judge ruled today.

Thurston County Superior Court Judge Christine Pomeroy rejected an effort to freeze the association's assets while three building companies challenge the right of BIAW to use a percentage of their workers compensation insurance rebates on politics.

The politically active builder's group is a major supporter of Republican Dino Rossi, who is challenging Democratic Gov. Christine Gregoire. Its political action committees have already spent more than $2 million in the race, mostly on radio and TV ads. The group said any freezing of its spending would be a violation of its First Amendment rights.

"They are trying to silence a political opponent six weeks before an election," attorney Harry Korrell, representing BIAW, told Pomeroy.

Attorneys for the disgruntled companies — Sources for Sustainable Communities, A-1 Builders and SF McKinnon Co. — countered that it wasn't BIAW's money to spend.

"You have no first amendment right to spend other people's money," attorney Andrew Friedman said.

Washington law allows groups of businesses to band together to share the risks of workers compensation insurance, known as "retro" programs. Businesses pay premiums individually to the state Department of Labor and Industries, but share in refunds if the group as a whole tallies less in claims than it pays in premiums.

Of BIAW's approximately 13,500 members, 6,000 participate in the retro program, spokeswoman Erin Shannon said. The BIAW insurance group takes 20 percent of the refunds those members get, giving half to local affiliates and keeping half for itself for administrative costs or for use in political action.

Pomeroy ruled against granting a temporary injunction that would have frozen BIAW's ability to use that money while the case is pending. The next hearing in the case is set for Oct. 31.