S-0790.1          _______________________________________________


                                 SENATE BILL 5492



State of Washington              52nd Legislature             1991 Regular Session


By Senators Matson, Owen, West, L. Smith and Amondson.


Read first time February 4, 1991.  Referred to Committee on Commerce & Labor.Authorizing employers to purchase workers' compensation insurance from private insurance providers.

     AN ACT Relating to workers' compensation insurance; adding a new section to chapter 51.04 RCW; and creating new sections.




     NEW SECTION.  Sec. 1.      The purpose of this act is to provide all employers in Washington state a choice of carriers from whom to purchase workers' compensation insurance; to provide employers and their employees the benefits of a competitive system; to provide workers the benefits of safety systems developed by private enterprise, as well as those provided by government; to provide private industry in Washington state the opportunity to do business with government regulation; to eliminate a government monopoly to small employers; and to increase the operating skills of Washington's government run workers' compensation industry by introducing competition into the business of workers' compensation insurance.


     NEW SECTION.  Sec. 2.  A new section is added to chapter 51.04 RCW to read as follows:

     Effective January 1, 1993, employers in this state may purchase workers' compensation insurance, and related coverage, from any insurer holding a certificate of authority pursuant to Title 48 RCW and certified by the department of labor and industries pursuant to this title.


     NEW SECTION.  Sec. 3.      (1) An implementing committee shall develop legislation for implementing this act and report its recommendations to the legislature by January 1, 1992.

     (2) The committee shall consist of the following:

     (a) Two members of the senate, one from each major caucus to be appointed by the lieutenant governor;

     (b) Two members of the house of representatives, one from each major caucus to be appointed by the speaker of the house of representatives.

     (c) A representative of employers; a representative of workers; a representative of the insurance industry; a representative of the Washington state bar association; a representative of the Washington state medical association, each of whom shall be chosen by a majority vote of the legislative members.

     (3) Each committee member shall have one vote.

     (4) The committee may add up to three members ex officio, who shall have the right to speak and make motions, but shall have no vote.

     (5) The committee shall hire staff and counsel to carry out its mission.

     (6) The commission members shall receive no compensation.  Legislators shall be reimbursed for their travel expenses as provided in RCW 44.04.120.  Other members of the commission shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.