CERTIFICATION OF ENROLLMENT

ENGROSSED HOUSE BILL 1917

Chapter 410, Laws of 2005

59th Legislature
2005 Regular Session



INDUSTRIAL INSURANCE--PREMIUM RATES



EFFECTIVE DATE: 7/24/05

Passed by the House March 14, 2005
  Yeas 96   Nays 0

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


Passed by the Senate April 12, 2005
  Yeas 41   Nays 0


BRAD OWEN
________________________________________    
President of the Senate
 
CERTIFICATE

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.


RICHARD NAFZIGER
________________________________________    
Chief Clerk
Approved May 11, 2005.








CHRISTINE GREGOIRE
________________________________________    
Governor of the State of Washington
 
FILED
May 11, 2005 - 2:19 p.m.







Secretary of State
State of Washington


_____________________________________________ 

ENGROSSED HOUSE BILL 1917
_____________________________________________

Passed Legislature - 2005 Regular Session
State of Washington59th Legislature2005 Regular Session

By Representatives Conway, Wood and Chase

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) T
he 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.


         Passed by the House March 14, 2005.
         Passed by the Senate April 12, 2005.
         Approved by the Governor May 11, 2005.
         Filed in Office of Secretary of State May 11, 2005.