SENATE BILL REPORT

                   SB 5978

                    As of February 27, 1995

Title:  An act relating to employment in the construction industry.

Brief Description:  Changing provisions related to employment in the construction industry.

Sponsors:  Senators Prentice, Gaspard, A. Anderson, Newhouse, Winsley and Rasmussen.

Brief History:

Committee Activity:  Labor, Commerce & Trade:  2/27/95.

SENATE COMMITTEE ON LABOR, COMMERCE & TRADE

Staff:  Jack Brummel (786-7428)

Background:  Under the state's industrial insurance law, injured workers or their beneficiaries may seek damages from third persons except design professionals who have not been negligent and who have not assumed responsibility for safety practices.

State law allows all employers, except self-insurers and trainers licensed by the Horse Racing Commission, to deduct up to one-half of the medical aid fund premium from the wages of their workers.

Employers and employees are each required to pay one-half of the Department of Labor and Industries' supplemental pension fund assessment.

Summary of Bill:  Injured workers or their beneficiaries may not seek third-party damages against nonemployer owners, developers, general or prime contractors, suppliers, sub-contractors, design professionals, or construction managers for injuries at a construction site.

For workers in the construction industry, employers may deduct the lesser of one-third of the medical aid fund premium paid by the employer or one-third the basic manual premium rate established for the risk classification under which the employer operates.

Employers in the construction industry are required to pay all of the supplemental pension fund assessment.

Prime or general contractors are required to provide safe work places for their employees and their subcontractor's employees, and have a written accident prevention program for each construction project.  All construction employers must designate a safety officer for each job site.

Appropriation:  None.

Fiscal Note:  Requested on February 24, 1995.

Effective Date:  The bill contains several effective dates.  Please refer to the bill.