SENATE BILL REPORT

                  SSB 5858

               As Passed Senate, March 13, 1995

Title:  An act relating to prompt payment of industrial insurance awards.

Brief Description:  Providing for prompt payment of industrial insurance awards.

Sponsors:  Senate Committee on Labor, Commerce & Trade (originally sponsored by Senators Prentice, Heavey, Franklin, Wojahn, Fairley, Snyder and McAuliffe).

Brief History:

Committee Activity:  Labor, Commerce & Trade:  2/20/95, 3/1/95 [DPS].

Passed Senate, 3/13/95, 49-0.

SENATE COMMITTEE ON LABOR, COMMERCE & TRADE

Majority Report:  That Substitute Senate Bill No. 5858 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Pelz, Chair; Heavey, Vice Chair; Deccio, Franklin, Fraser, Hale, Newhouse, Palmer and Wojahn.

Staff:  Jack Brummel (786-7428)

Background:  The state's industrial insurance statutes do not contain provisions specifying when final compensation orders must be complied with.

Summary of Bill:  Final compensation orders must be complied with by the Department of Labor and Industries within 60 days.  Individuals entitled to compensation under a final order may institute proceedings to enforce the order and may be awarded $500 from a court imposed penalty against the non-payor, plus reasonable costs and attorneys' fees, and an additional $500 for each additional month of noncompliance.

Appropriation:  None.

Fiscal Note:  Requested on February 10, 1995.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  It can take eight or nine months to get payment from the department.  The penalty for nonpayment should be higher.

Testimony Against:  Employers or the department shouldn't be penalized if the delay is caused by waiting for workers' documents.

Testified:  Kate Austin, Daniel Wigdahl, Rebecca Alani, WINS (pro); Wayne Lieb, WSTLA (pro); Clif Finch, AWB (con).