CERTIFICATION OF ENROLLMENT

 

                  SUBSTITUTE SENATE BILL 5402

 

 

 

 

                        54th Legislature

                      1995 Regular Session

Passed by the Senate April 17, 1995

  YEAS 43   NAYS 0

 

 

 

President of the Senate

 

Passed by the House April 6, 1995

  YEAS 96   NAYS 0

             CERTIFICATE

 

I, Marty Brown, Secretary of the Senate of the State of Washington, do hereby certify that the attached is SUBSTITUTE SENATE BILL 5402 as passed by the Senate and the House of Representatives on the dates hereon set forth.

 

 

 

Speaker of the

      House of Representatives

                            Secretary

 

 

Approved Place Style On Codes above, and Style Off Codes below.

                                FILED

          

 

 

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

                    SUBSTITUTE SENATE BILL 5402

          _______________________________________________

 

                      AS AMENDED BY THE HOUSE

 

             Passed Legislature - 1995 Regular Session

 

State of Washington      54th Legislature     1995 Regular Session

 

By Senate Committee on Labor, Commerce & Trade (originally sponsored by Senators Pelz and Franklin; by request of Department of Labor & Industries)

 

Read first time 02/17/95.

 

Revising provisions related to industrial insurance penalties.



    AN ACT Relating to industrial insurance penalties; amending RCW 51.16.200, 51.32.020, 51.32.040, 51.48.020, 51.48.120, and 51.48.150; adding a new section to chapter 43.22 RCW; prescribing penalties; and creating a new section.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

    Sec. 1.  RCW 51.16.200 and 1986 c 9 s 6 are each amended to read as follows:

    Whenever any employer quits business, or sells out, exchanges, or otherwise disposes of the employer's business or stock of goods, any tax payable hereunder shall become immediately due and payable, and the employer shall, within ten days thereafter, make a return and pay the tax due; and any person who becomes a successor to such business shall become liable for the full amount of the tax and withhold from the purchase price a sum sufficient to pay any tax due from the employer until such time as the employer shall produce a receipt from the department showing payment in full of any tax due or a certificate that no tax is due and, if such tax is not paid by the employer within ten days from the date of such sale, exchange, or disposal, the successor shall become liable for the payment of the full amount of tax, and the payment thereof by such successor shall, to the extent thereof, be deemed a payment upon the purchase price, and if such payment is greater in amount than the purchase price the amount of the difference shall become a debt due such successor from the employer.

    No successor may be liable for any tax due from the person from whom ((that person)) the successor has acquired a business or stock of goods if ((that person)) the successor gives written notice to the department of such acquisition and no assessment is issued by the department within ((sixty)) one hundred eighty days of receipt of such notice against the former operator of the business and a copy thereof mailed to such successor.

 

    Sec.  2.  RCW 51.32.020 and 1977 ex.s. c 350 s 39 are each amended to read as follows:

    If injury or death results to a worker from the deliberate intention of the worker himself or herself to produce such injury or death, or while the worker is engaged in the attempt to commit, or the commission of, a felony, neither the worker nor the widow, widower, child, or dependent of the worker shall receive any payment under this title.

    If injury or death results to a worker from the deliberate intention of a beneficiary of that worker to produce the injury or death, or if injury or death results to a worker as a consequence of a beneficiary of that worker engaging in the attempt to commit, or the commission of, a felony, the beneficiary shall not receive any payment under this title.

    An invalid child, while being supported and cared for in a state institution, shall not receive compensation under this chapter.

    No payment shall be made to or for a natural child of a deceased worker and, at the same time, as the stepchild of a deceased worker.

 

    Sec.  3.  RCW 51.32.040 and 1987 c 75 s 7 are each amended to read as follows:

    (1) Except as provided in RCW 43.20B.720 and 74.20A.260, no money paid or payable under this title shall, ((except as provided for in RCW 43.20B.720 or 74.20A.260, prior to)) before the issuance and delivery of the check or warrant ((therefor)), be ((capable of being)) assigned, charged, or ((ever be)) taken in execution ((or)), attached ((or)), garnished, ((nor shall the same)) or pass((,)) or be paid((,)) to any other person by operation of law, ((or by)) any form of voluntary assignment, or power of attorney.  Any such assignment or charge ((shall be)) is void((,)) unless the transfer is to a financial institution at the request of a worker or other beneficiary and made in accordance with RCW 51.32.045 ((shall be made:  PROVIDED, That)).

    (2)(a) If any worker suffers (i) a permanent partial injury((,)) and dies from some other cause than the accident which produced ((such)) the injury before he or she ((shall have received)) receives payment of ((his or her)) the award for ((such)) the permanent partial injury((,)) or ((if any worker suffers)) (ii) any other injury before he or she ((shall have received)) receives payment of any monthly installment covering any period of time ((prior to)) before his or her death, the amount of ((such)) the permanent partial disability award((,)) or ((of such)) the monthly payment, or both, shall be paid to the surviving spouse((,)) or ((to)) the child or children if there is no surviving spouse((:  PROVIDED FURTHER, That,)).

    (b) If any worker suffers an injury and dies ((therefrom)) from it before he or she ((shall have received)) receives payment of any monthly installment covering time loss for any period of time ((prior to)) before his or her death, the amount of ((such)) the monthly payment shall be paid to the surviving spouse((,)) or ((to)) the child or children if there is no surviving spouse((:  PROVIDED FURTHER, That)).

    (c) Any application for compensation under ((the foregoing provisos of this section)) this subsection (2) shall be filed with the department or self-insuring employer within one year of the date of death((:  PROVIDED FURTHER, That)).  However, if the injured worker resided in the United States as long as three years ((prior to)) before the date of injury, ((such)) payment under this subsection (2) shall not be made to any surviving spouse or child who was at the time of the injury a nonresident of the United States((:  PROVIDED FURTHER, That)).

    (3)(a) Any worker or beneficiary receiving benefits under this title who is subsequently confined in, or who subsequently becomes eligible ((therefor)) for benefits under this title while confined in, any institution under conviction and sentence shall have all payments of ((such)) the compensation canceled during the period of confinement ((but)).  After discharge from the institution, payment of benefits ((thereafter)) due afterward shall be paid if ((such)) the worker or beneficiary would, ((but)) except for the provisions of this ((proviso)) subsection (3), otherwise be entitled ((thereto:  PROVIDED FURTHER, That)) to them.

    (b) If any prisoner is injured in the course of his or her employment while participating in a work or training release program authorized by chapter 72.65 RCW and is subject to the provisions of this title, he or she ((shall be)) is entitled to payments under this title, subject to the requirements of chapter 72.65 RCW, unless his or her participation in ((such)) the program has been canceled, or unless he or she is returned to a state correctional institution, as defined in RCW 72.65.010(3), as a result of revocation of parole or new sentence((:  PROVIDED FURTHER, That)).

    (c) If ((such incarcerated)) the confined worker has any beneficiaries during ((such)) the confinement period during which benefits are canceled under (a) or (b) of this subsection, ((any beneficiaries,)) they shall be paid directly the monthly benefits which would have been paid to ((him or her)) the worker for himself or herself and ((his or her)) the worker's beneficiaries had ((he or she)) the worker not been ((so)) confined.

    (4) Any lump sum benefits to which ((the)) a worker would otherwise be entitled but for the provisions of ((these provisos)) this section shall be paid on a monthly basis to his or her beneficiaries.

 

    Sec. 4.  RCW 51.48.020 and 1987 c 221 s 1 are each amended to read as follows:

    (1) Any employer, who misrepresents to the department the amount of his or her payroll or employee hours upon which the premium under this title is based, shall be liable to the state in ten times the amount of the difference in premiums paid and the amount the employer should have paid and for the reasonable expenses of auditing his or her books and collecting such sums.  Such liability may be enforced in the name of the department.  If such misrepresentations are made knowingly, an employer shall also be guilty of a felony, or gross misdemeanor in accordance with the theft and anticipatory provisions of Title 9A RCW.

    (2) Any person claiming benefits under this title, who knowingly gives false information required in any claim or application under this title shall be guilty of a felony, or gross misdemeanor in accordance with the theft and anticipatory provisions of Title 9A RCW.

 

    Sec. 5.  RCW 51.48.120 and 1986 c 9 s 10 are each amended to read as follows:

    If any employer should default in any payment due to the state fund the director or the director's designee may issue a notice of assessment certifying the amount due, which notice shall be served upon the employer by mailing such notice to the employer by certified mail to the employer's last known address((, accompanied by an affidavit of service by mailing,)) or served in the manner prescribed for the service of a summons in a civil action.  Such notice shall contain the information that an appeal must be filed with the board of industrial insurance appeals and the director by mail or personally within thirty days of the date of service of the notice of assessment in order to appeal the assessment unless a written request for reconsideration is filed with the department of labor and industries.

 

    Sec. 6.  RCW 51.48.150 and 1987 c 442 s 1119 are each amended to read as follows:

    The director or the director's designee is hereby authorized to issue to any person, firm, corporation, municipal corporation, political subdivision of the state, a public corporation, or any agency of the state, a notice and order to withhold and deliver property of any kind whatsoever when he or she has reason to believe that there is in the possession of such person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or any agency of the state, property which is or shall become due, owing, or belonging to any employer upon whom a notice of assessment has been served by the department for payments due to the state fund.  The effect of a notice and order to withhold and deliver shall be continuous from the date such notice and order to withhold and deliver is first made until the liability out of which such notice and order to withhold and deliver arose is satisfied or becomes unenforceable because of lapse of time.  The department shall release the notice and order to withhold and deliver when the liability out of which the notice and order to withhold and deliver arose is satisfied or becomes unenforceable by reason of lapse of time and shall notify the person against whom the notice and order to withhold and deliver was made that such notice and order to withhold and deliver has been released.

    The notice and order to withhold and deliver shall be served by the sheriff of the county or by the sheriff's deputy, by certified mail, return receipt requested, or by any duly authorized representatives of the director.  Any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation or any agency of the state upon whom service has been made is hereby required to answer the notice within twenty days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of in the notice and order to withhold and deliver.  In the event there is in the possession of the party named and served with a notice and order to withhold and deliver, any property which may be subject to the claim of the department, such property shall be delivered forthwith to the director or the director's duly authorized representative upon service of the notice to withhold and deliver which will be held in trust by the director for application on the employer's indebtedness to the department, or for return without interest, in accordance with a final determination of a petition for review, or in the alternative such party shall furnish a good and sufficient surety bond satisfactory to the director conditioned upon final determination of liability.  Should any party served and named in the notice to withhold and deliver fail to make answer to such notice and order to withhold and deliver, within the time prescribed herein, it shall be lawful for the court, after the time to answer such order has expired, to render judgment by default against the party named in the notice to withhold and deliver for the full amount claimed by the director in the notice to withhold and deliver together with costs.  In the event that a notice to withhold and deliver is served upon an employer and the property found to be subject thereto is wages, then the employer shall be entitled to assert in the answer to all exemptions provided for by chapter 6.27 RCW to which the wage earner may be entitled.

 

    NEW SECTION.  Sec. 7.  A new section is added to chapter 43.22 RCW to read as follows:

    The department shall annually compile a comprehensive report on workers' compensation fraud in Washington.  The report shall include the department's activities related to the prevention, detection, and prosecution of worker, employer, and provider fraud and the cost of such activities, as well as the actual and estimated cost savings of such activities.  The report shall be submitted to the appropriate committees of the legislature prior to the start of the legislative session in January.

 

    NEW SECTION.  Sec. 8.  Sections 2 and 3 of this act shall apply from the effective date of this act without regard to the date of injury or the date of filing a claim.

 


                            --- END ---