HOUSE BILL REPORT

SHB 1300

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Vekich, Winsley, Leonard, Baugher, R. King, Gallagher, Sayan, Cole, Walk, Prentice and Heavey)

Repealing worker liability for industrial insurance medical aid fund premiums.

House Committe on Commerce & Labor

Majority Report:  The second substitute bill be substituted therefor and the second substitute bill do pass.  (7)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Jones, R. King, Leonard, O'Brien and Prentice.

Minority Report:  Do not pass.  (4)

      Signed by Representatives Smith, Ranking Republican Member; Forner, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR JANUARY 24, 1990

BACKGROUND:

The industrial insurance law requires all employers, other than self-insured employers, to deduct one-half of the medical aid fund premium from the wages of their workers.

SUMMARY:

SECOND SUBSTITUTE BILL:  The provision is deleted from the industrial insurance act that requires state fund employers to deduct one-half of the medical aid fund premium from workers' wages.

SECOND SUBSTITUTE COMPARED TO FIRST SUBSTITUTE:  The second substitute bill makes technical corrections necessary to reflect amendments enacted in 1989.

Fiscal Note:      Available.

House Committee ‑ Testified For:    (Original Bill)  Bob Dilger, Washington State Building and Construction Trades Council; Gerry Marsh, Carpenter's District Council; and Sam Kinville, Washington State Council of County and City Employees.

House Committee - Testified Against:      (Original Bill)  Doug Connell, Department of Labor and Industries.

House Committee - Testimony For:    (Original Bill)  Washington is the only state that requires workers to pay a share of their medical aid premium.  The worker, unlike the employer, cannot pass these costs on to the business' customers. The employees have every incentive for safety -- they are the ones who suffer the injuries.

House Committee - Testimony Against:      (Original Bill)  The requirement for workers to pay part of the medical aid premium is an incentive for safety, especially now that the medical aid fund is experience rated.