1952 S

1952‑S.E AMH HEAV H4836.1

ESHB 1952 - H AMD 0119

By Representatives Heavey and Forner

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 51.16.210 and 1989 c 385 s 1 are each amended to read as follows:

(1) APPLICABILITY. The department shall assess premiums, under the provisions of this section, for certain horse racing employments licensed in accordance with chapter 67.16 RCW. This premium assessment shall be for the purpose of providing industrial insurance coverage for employees ((~~of trainers~~)) licensed under chapter 67.16 RCW, including but not limited to exercise riders, pony riders, ((~~and~~)) grooms, jockeys, and apprentice jockeys, and including all on or off track employment. For the purposes of RCW 51.16.210, 67.16.300, 51.16.140, 51.32.073, and 67.16.020 a hotwalker shall be considered a groom. ((The department may adopt rules under chapter 34.05 RCW to carry out the purposes of this section, including rules providing for alternative reporting periods and payment due dates for coverage under this section. The department rules shall ensure that no licensee licensed prior to May 13, 1989, shall pay more than the assessment fixed at the basic manual rate.))

(2) EMPLOYER STATUS. For the purposes of this section, trainers shall be considered the exclusive employer of grooms, pony riders, and exercise riders. Persons or racing associations licensed to hold race meets under chapter 67.16 RCW shall be considered the special employers of jockeys and apprentice jockeys.

(3) TRAINER AND GROOM ASSESSMENT. The department shall compute industrial insurance premium rates on a per license basis((~~, which premiums shall be assessed~~)) to fund the claims liability for all covered horse racing employments except for jockeys and apprentice jockeys, which shall be computed as provided in subsection (5) of this section. The premium requirement needed to cover employments subject to this subsection shall be funded by assessments calculated by the department and paid at the time of each issuance or renewal of the license for owners, trainers, and grooms ((in amounts established by department rule for coverage under this section. Premium assessments shall be determined in accordance with the requirements of this title, except that assessments shall not be experience rated and shall be fixed at the basic manual rate. However, rates may vary according to differences in working conditions at major tracks and fair tracks.

(3) For the purposes of paying premiums and assessments under this section and making reports under this title, individuals licensed as trainers by the Washington horse racing commission shall be considered employers)). The premium assessment for a groom's license shall be paid by the trainer responsible for signing the groom's license application and shall be payable at the time of license issuance or renewal.

(4) OWNER'S FEE. The fee to be assessed on owner licenses as required by subsection (3) of this section shall be considered a fee and not premiums and shall not exceed one hundred fifty dollars annually. However, those owners having less than a full ownership in a horse or horses shall pay a ((percentage of the required license fee that is equal to the total percentage of the ownership that the owner has in the horse or horses)) one hundred dollar fee. In no event shall an owner having an ownership percentage in more than one horse pay more than a one hundred fifty-dollar license fee. This assessment shall be used to fund the claims liabilities of covered horse racing employments other than jockeys and apprentice jockeys as required under subsection (5) of this section. The assessment on each owner's license shall not imply that an owner is an employer, but shall be required as part of the privilege of holding an owner's license.

(5) JOCKEYS AND APPRENTICE JOCKEYS PREMIUMS. For the purposes of this subsection, the premium obligation for the coverage of jockeys and apprentice jockeys licensed under chapter 67.16 RCW shall be paid by owners, trainers, racing associations, jockeys, and apprentice jockeys as follows:

(a) The premium assessment on owners is separate from the fee charged to owners under subsection (4) of this section and shall also be paid on a per license basis at the time of license issuance or renewal.

(b) The premium assessment for trainers shall be on a per-license basis and shall be collected from the trainers by the Washington horse racing commission. The commission shall remit the premiums collected under this subsection (5)(b) from the trainers as provided under department rules.

(c) The racing association's premium assessment shall be on a per-day basis and be paid at the intervals required under department rules for the actual number of race dates approved and set by the Washington horse racing commission for the respective association or track, as applicable.

(d) The premium assessment for jockeys and apprentice jockeys shall be paid on a per-start basis and collected from the jockeys and apprentice jockeys by the racing association operating the track that is holding the licensed event, but in no event shall the premium under this subsection (5)(d) be more than five dollars per start. The association shall remit all such premiums collected from the jockeys and apprentice jockeys as provided under department rules. This remittance shall be separate from the remittance made by the association for their one-fourth share of the premium assessment under (c) of this subsection.

(6) BASE RATED PREMIUMS. The premiums established by the department to cover employments subject to this section shall not be experience rated.

(7) RULE MAKING AUTHORITY. The department may adopt rules under chapter 34.05 RCW to carry out the purposes of this section, including rules providing for alternative premium bases, reporting periods, and payment due dates for coverage under this section. Premium assessments ((~~under this section~~)) or fees which are collected on a per license basis shall be collected by the Washington horse racing commission and deposited in the industrial insurance trust funds as provided under department rules.

(8) EXCLUSIVE REMEDY. Owners, trainers, and associations who come under the jurisdiction of the Washington horse racing commission are considered to be special employers of jockeys and apprentice jockeys and the exclusive remedy provisions of RCW 51.04.010 apply for jockeys and apprentice jockeys."

"Sec. 2. RCW 67.16.300 and 1989 c 385 s 2 are each amended to read as follows:

In addition to the license fees authorized by this chapter, the commission shall collect the industrial insurance premium assessments required under RCW 51.16.210 from trainers, grooms, and owners. The industrial insurance premium assessments required under RCW 51.16.210 shall be retroactive to January 1, ((~~1989~~)) 1992, and shall be collected from all licensees whose licenses were issued after that date. The commission shall deposit the industrial insurance premium assessments in the industrial insurance trust fund as required by rules adopted by the department of labor and industries."

"Sec. 3. RCW 51.12.020 and 1991 c 324 s 18 and 1991 c 246 s 4 are each reenacted and amended to read as follows:

The following are the only employments which shall not be included within the mandatory coverage of this title:

(1) Any person employed as a domestic servant in a private home by an employer who has less than two employees regularly employed forty or more hours a week in such employment.

(2) Any person employed to do gardening, maintenance, repair, remodeling, or similar work in or about the private home of the employer.

(3) A person whose employment is not in the course of the trade, business, or profession of his or her employer and is not in or about the private home of the employer.

(4) Any person performing services in return for aid or sustenance only, received from any religious or charitable organization.

(5) Sole proprietors or partners.

(6) Any child under eighteen years of age employed by his or her parent or parents in agricultural activities on the family farm.

(7) ((Jockeys while participating in or preparing horses for race meets licensed by the Washington horse racing commission pursuant to chapter 67.16 RCW.

(8)))(a) Except as otherwise provided in (b) of this subsection, any bona fide officer of a corporation voluntarily elected or voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation, who at all times during the period involved is also a bona fide director, and who is also a shareholder of the corporation. Only such officers who exercise substantial control in the daily management of the corporation and whose primary responsibilities do not include the performance of manual labor are included within this subsection.

(b) Alternatively, a corporation that is not a "public company" as defined in RCW 23B.01.400(((19))) (20) may exempt eight or fewer bona fide officers, who are voluntarily elected or voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation and who exercise substantial control in the daily management of the corporation, from coverage under this title without regard to the officers' performance of manual labor if the exempted officer is a shareholder of the corporation, or may exempt any number of officers if all the exempted officers are related by blood within the third degree or marriage. If a corporation that is not a "public company" elects to be covered under subsection (((8))) (7)(a) of this section, the corporation's election must be made on a form prescribed by the department and under such reasonable rules as the department may adopt.

(c) Determinations respecting the status of persons performing services for a corporation shall be made, in part, by reference to Title 23B RCW and to compliance by the corporation with its own articles of incorporation and bylaws. For the purpose of determining coverage under this title, substance shall control over form, and mandatory coverage under this title shall extend to all workers of this state, regardless of honorary titles conferred upon those actually serving as workers.

(d) A corporation may elect to cover officers who are exempted by this subsection in the manner provided by RCW 51.12.110.

(((9))) (8) Services rendered by a musician or entertainer under a contract with a purchaser of the services, for a specific engagement or engagements when such musician or entertainer performs no other duties for the purchaser and is not regularly and continuously employed by the purchaser. A purchaser does not include the leader of a group or recognized entity who employs other than on a casual basis musicians or entertainers.

(((10))) (9) Services performed by a newspaper carrier selling or distributing newspapers on the street or from house to house.

(((11))) (10) Services performed by an insurance agent, insurance broker, or insurance solicitor, as defined in RCW 48.17.010, 48.17.020, and 48.17.030, respectively.

(((12))) (11) Services performed by a booth renter as defined in RCW 18.16.020. However, a person exempted under this subsection may elect coverage under RCW 51.32.030."

"Sec. 4. RCW 51.08.178 and 1988 c 161 s 12 are each amended to read as follows:

(1) For the purposes of this title, the monthly wages the worker was receiving from all employment at the time of injury shall be the basis upon which compensation is computed unless otherwise provided specifically in the statute concerned. In cases where the worker's wages are not fixed by the month, they shall be determined by multiplying the daily wage the worker was receiving at the time of the injury:

(a) By five, if the worker was normally employed one day a week;

(b) By nine, if the worker was normally employed two days a week;

(d) By eighteen, if the worker was normally employed four days a week;

(e) By twenty-two, if the worker was normally employed five days a week;

(f) By twenty-six, if the worker was normally employed six days a week;

(g) By thirty, if the worker was normally employed seven days a week.

The term "wages" shall include the reasonable value of board, housing, fuel, or other consideration of like nature received from the employer as part of the contract of hire, but shall not include overtime pay except in cases under subsection (2) of this section. However, tips shall also be considered wages only to the extent such tips are reported to the employer for federal income tax purposes. The daily wage shall be the hourly wage multiplied by the number of hours the worker is normally employed. The number of hours the worker is normally employed shall be determined by the department in a fair and reasonable manner, which may include averaging the number of hours worked per day.

(2) In cases where (a) the worker's employment is exclusively seasonal in nature or (b) the worker's current employment or his or her relation to his or her employment is essentially part-time or intermittent, the monthly wage shall be determined by dividing by twelve the total wages earned, including overtime, from all employment in any twelve successive calendar months preceding the injury which fairly represent the claimant's employment pattern.

(3) If, within the twelve months immediately preceding the injury, the worker has received from the employer at the time of injury a bonus as part of the contract of hire, the average monthly value of such bonus shall be included in determining the worker's monthly wages.

(4) The average monthly wage of a jockey or apprentice jockey is based upon all earnings, including earnings from outside this state. Earnings from outside this state shall not be counted until a jockey or apprentice jockey has had twenty mounts in this state or is available to ride twenty consecutive days in this state. The department shall adopt the rules necessary for gathering and computing the wage information required for compliance with this subsection.

(5) In cases where a wage has not been fixed or cannot be reasonably and fairly determined, the monthly wage shall be computed on the basis of the usual wage paid other employees engaged in like or similar occupations where the wages are fixed."

"Sec. 5. RCW 51.16.140 and 1989 c 385 s 3 are each amended to read as follows:

(1) Every employer who is not a self-insurer shall deduct from the pay of each of his or her workers one-half of the amount he or she is required to pay, for medical benefits within each risk classification. Such amount shall be periodically determined by the director and reported by him or her to all employers under this title: PROVIDED, That the state governmental unit shall pay the entire amount into the medical aid fund for volunteers, as defined in RCW 51.12.035, and the state apprenticeship council shall pay the entire amount into the medical aid fund for registered apprentices or trainees, for the purposes of RCW 51.12.130. The deduction under this section is not authorized for premiums assessed under RCW 51.16.210, except as specifically authorized in RCW 51.16.210(5)(d).

(2) It shall be unlawful for the employer, unless specifically authorized by this title, to deduct or obtain any part of the premium or other costs required to be by him or her paid from the wages or earnings of any of his or her workers, and the making of or attempt to make any such deduction shall be a gross misdemeanor."

"NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."

ESHB 1952 - H AMD

By Representative Heavey

On page 1, line 2 of the title, after "jockeys;" strike the remainder of the title and insert "amending RCW 51.16.210, 67.16.300, 51.08.178, and 51.16.140; reenacting and amending RCW 51.12.020; prescribing penalties; and declaring an emergency."