SENATE BILL REPORT

HB 2497

BYRepresentatives Jones, Smith, Vekich, Walker, Prentice, Wolfe, R. King, Winsley and Rector; by request of Department of Labor and Industries

Processing disputed industrial insurance claims.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 14, 1990; February 22, 1990

Majority Report:  Do pass as amended.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Matson, Saling, Smitherman, Warnke, Williams.

Senate Staff:Dave Cheal (786-7576)

                  February 23, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 22, 1990

BACKGROUND:

If a worker suffers a repeat injury (or illness) following an original injury, there may be a question whether the second occurrence is a new injury or merely an aggravation of the previous injury.  Identifying the responsible employer may depend on the determination of that question.  The authority of the Department of Labor and Industries to make the determination is unclear, especially if the determination raises a dispute over claim responsibility between self-insured employers, or a self-insured employer and the department.

SUMMARY:

In an industrial insurance claim, if a question arises whether to reopen an accepted claim or to allow a new injury or illness claim, the Department of Labor and Industries is responsible for making the determination.  Pending the department's determination, benefits must be paid to the claimant by the entity that would be responsible if the claim were found to be a new injury.  Benefits must be paid at the lesser of the two applicable benefit amounts that may apply to the claim.  During any appeal of the department's determination, the claimant must continue to receive benefits.

After a final determination of responsibility, the benefits must be repaid by the entity found to be responsible for the claim, or by the claimant if no entity is responsible for the claim.  The director may waive repayment by the claimant if recovery would be against equity and good conscience.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

The type and amount of benefits that would be promptly paid in a claim involving disputed responsibility is clarified.

Senate Committee - Testified: Jeff Johnson, WSLC (pro); Wayne Lieb, WSTLH (pro); Robert Dilger, WSBLTC (pro); Bob McCallister, Department of Labor and Industriers (pro); Clif Finch, AWB; Melanie Stewart, Washington Self Ins. Assoc.