SENATE BILL REPORT

                   SB 5773

              As Reported By Senate Committee On:

          Labor, Commerce & Trade, February 22, 1995

Title:  An act relating to charges against industrial insurance awards.

Brief Description:  Revising provision relating to charges against industrial insurance awards.

Sponsors:  Senators Pelz, Newhouse and Deccio; by request of Employment Security Department.

Brief History:

Committee Activity:  Labor, Commerce & Trade:  2/16/95, 2/22/95 [DPS].

SENATE COMMITTEE ON LABOR, COMMERCE & TRADE

Majority Report:  That Substitute Senate Bill No. 5773 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Pelz, Chair; Heavey, Vice Chair; Deccio, Fraser, Hale, Newhouse and Palmer.

Staff:  Patrick Woods (786-7430)

Background:  Currently, unemployment insurance (UI) claimants are not eligible to receive UI benefits for any week for which they receive worker compensation payments from the Department of Labor and Industries.  In certain instances, claimants are awarded retroactive worker compensation payments, thereby creating an unemployment insurance overpayment. When this occurs, the Employment Security Department attempts to recover the overpayments from the claimant through normal collection methods.

Summary of Substitute Bill: The Department of Labor and Industries is authorized to deduct from an individual's worker compensation benefits any overpayments he or she received from the unemployment insurance program.

Substitute Bill Compared to Original Bill:  The substitute bill clarifies Employment Security Department's rights to require the Department of Labor and Industries to deduct overpayments from an individual's worker compensation benefits.

A new effective date of January 1, 1996 is provided.

Appropriation:  None.

Fiscal Note:  Requested on February 10, 1995.

Effective Date:  The bill takes effect on January 1, 1996.

Testimony For:  The bill will assist the Employment Security Department in collecting UI overpayments to individuals that also received worker compensation.

Testimony Against:  None.

Testified:  Dale Ziegler, ESD.