| Passed by the House March 14, 2005 Yeas 96 ________________________________________ Speaker of the House of Representatives Passed by the Senate April 12, 2005 Yeas 41 ________________________________________ President of the Senate | I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is ENGROSSED HOUSE BILL 1917 as passed by the House of Representatives and the Senate on the dates hereon set forth. ________________________________________ Chief Clerk | |
| Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
| State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 02/10/2005. Referred to Committee on Commerce & Labor.
AN ACT Relating to improving stability in industrial insurance premium rates; amending RCW 51.16.035; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 51.16.035 and 1999 c 7 s 8 are each amended to read as
follows:
(1) The department shall classify all occupations or industries in
accordance with their degree of hazard and fix therefor basic rates of
premium which shall be:
(a) The lowest necessary to maintain actuarial solvency of the
accident and medical aid funds in accordance with recognized insurance
principles; and
(b) Designed to attempt to limit fluctuations in premium rates.
(2) The department shall formulate and adopt rules ((and
regulations)) governing the method of premium calculation and
collection and providing for a rating system consistent with recognized
principles of workers' compensation insurance which shall be designed
to stimulate and encourage accident prevention and to facilitate
collection. The department may annually, or at such other times as it
deems necessary to ((maintain solvency of the funds)) achieve the
objectives under this section, readjust rates in accordance with the
rating system to become effective on such dates as the department may
designate.
(((2))) (3)(a) After the first report is issued by the state
auditor under section 1, chapter ... (Substitute House Bill No. 1856 or
Substitute Senate Bill No. 5614), Laws of 2005, the workers'
compensation advisory committee shall review the report and, as the
committee deems appropriate, may make recommendations to the department
concerning:
(i) The level or levels of a contingency reserve that are
appropriate to maintain actuarial solvency of the accident and medical
aid funds, limit premium rate fluctuations, and account for economic
conditions; and
(ii) When surplus funds exist in the trust funds, the circumstances
under which the department should give premium dividends, or similar
measures, or temporarily reduce rates below the rates fixed under
subsection (1) of this section, including any recommendations regarding
notifications that should be given before taking the action.
(b) Following subsequent reports issued by the state auditor under
section 1, chapter ... (Substitute House Bill No. 1856 or Substitute
Senate Bill No. 5614), Laws of 2005, the workers' compensation advisory
committee may, as it deems appropriate, update its recommendations to
the department on the matters covered under (a) of this subsection.
(4) In providing a retrospective rating plan under RCW 51.18.010,
the department may consider each individual retrospective rating group
as a single employing entity for purposes of dividends or premium
discounts.
NEW SECTION. Sec. 2 Section 1 of this act applies to industrial
insurance rates adopted by the department of labor and industries that
take effect on or after January 1, 2008.