HOUSE BILL REPORT

EHB 1518

As Amended by the Senate

BYRepresentatives Vekich, Walker, Patrick, Cole, Leonard, R. King, Heavey, Ebersole, Prentice, Basich, Jones and Winsley

Extending industrial insurance coverage.

House Committe on Commerce & Labor

Majority Report:  Do pass with amendments.  (11)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Patrick, Ranking Republican Member; Jones, R. King, Leonard, O'Brien, Prentice, Smith, Walker and Wolfe.

House Staff:Chris Cordes 786-7117

AS PASSED HOUSE MARCH 6, 1989

BACKGROUND:

Common carriers operating intrastate or in both intrastate and interstate commerce are required to purchase industrial insurance coverage for their employees in Washington.  Industrial insurance coverage for exclusively interstate carriers domiciled in Washington is optional.  Therefore, interstate carrier employees injured in Washington may not be eligible to receive worker's compensation benefits.

SUMMARY:

Interstate common carriers doing business in Washington must provide state industrial insurance coverage for their Washington employees.  An interstate carrier is exempt from providing Washington industrial insurance coverage if coverage is provided in another state for employees injured in Washington.

EFFECT OF SENATE AMENDMENTS:  An interstate carrier that withdrew from elective coverage prior to January 2, 1987, is governed by the coverage requirements in effect on that date.

Fiscal Note:      Requested February 18, 1989.

House Committee ‑ Testified For:    Cindy Zehnder, Joint Council of Teamsters; and Doug Connell, Department of Labor and Industries.

House Committee - Testified Against:      Marty Sangster and Larry Pursley, Washington Trucking Association.

House Committee - Testimony For:    Employees should be covered by state industrial insurance or similar insurance regardless of whether they are employed by an intrastate or interstate employer.  Requiring industrial insurance coverage of interstate carriers is fair to both workers and employers.

House Committee - Testimony Against:      Requiring interstate carriers to provide state industrial insurance or "substantially similar" coverage places an undue financial burden on interstate carriers.  It is impossible to monitor and enforce the required industrial insurance coverage of interstate carriers.

VOTE ON FINAL PASSAGE:

      Yeas 97; Excused 1

Excused:    Representative Appelwick.