HOUSE BILL REPORT

                 ESB 5613

                 As Passed House - Amended:

                       April 13, 1995

Title:  An act relating to the authority of the department of labor and industries to hold industrial insurance orders in abeyance.

Brief Description:  Revising the provision authorizing the department of labor and industries to hold industrial insurance orders in abeyance.

Sponsors:  Senators Pelz, Franklin, Hargrove, Snyder, Fraser, Bauer, McAuliffe, Smith, Prentice, Heavey and Rinehart.

Brief History:

  Committee Activity:

Commerce & Labor:  3/30/95 [DPA].

Floor Activity:

Amended.

Passed House:  4/13/95, 96-0.

HOUSE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass as amended.  Signed by 9 members:  Representatives Lisk, Chairman; Hargrove, Vice Chairman; Thompson, Vice Chairman; Romero, Ranking Minority Member; Conway, Assistant Ranking Minority Member; Cairnes; Cody; Cole and Goldsmith.

Minority Report:  Do not pass.  Signed by 1 member:  Representative Horn.

Staff:  Chris Cordes (786-7117).

Background:  Workers, employers, and other parties aggrieved by Department of Labor and Industries' industrial insurance orders are entitled to request reconsideration of an order before appealing to the Board of Industrial Insurance Appeals.  If the Department of Labor and Industries acts within certain time limits, the department may, on its own motion, hold an industrial insurance order in abeyance for up to 90 days to reconsider the order.  For good cause, the department may extend the time period for an additional 90 days.

If the worker has filed an application to reopen a claim, the department must issue an order denying the application within 90 days of receiving the application.  If the order is not issued within the time period, the application is deemed granted.  This 90 day period may be extended 60 days for good cause.

In 1993, the Washington Supreme Court determined that these two time periods operate independently.  In the case before the court, the department had issued an order denying an application to reopen a claim and had then placed the order in abeyance. The court held that once the department has issued an order denying a reopening application within the statutory time period, the time limits for making the initial decision on the application are satisfied.  The department may then exercise its authority to hold the order in abeyance for reconsideration for up to 180 days.

Summary of Bill:  The Department of Labor and Industries' authority to reconsider an industrial insurance order for up to 180 days after the order is placed in abeyance is modified.  If the order concerns an application to reopen a claim, the time period for reconsideration may not exceed 90 days from the date that the application was received.  The department may extend this period for an additional 60 days for good cause.   Good cause for extending the 90 day time period includes delay that results from the worker's failure to cooperate with treatment or a medical examination.

The department must promptly mail a copy of a reopening application to the employer.  Reopening applications that are deemed granted by statute may not be held in abeyance.  An employer may appeal an application that is deemed granted on the same basis as other adjudicated reopening applications.

Technical changes are also made to clarify and reorganize the statute.

Appropriation:  None.

Fiscal Note:  Available.

Effective Date of Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  None.

Testimony Against:  None.

Testified:  None.