H-1584.1  _______________________________________________

                          HOUSE BILL 1898

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Representatives Hargrove, Cairnes, L. Thomas, Mulliken, Hymes, Thompson, Goldsmith, D. Schmidt, Crouse, Casada, Honeyford, Lambert, Benton, Koster, Stevens, Silver, McMahan, Radcliff, Blanton, Sherstad, Boldt, Johnson, Carrell, Pelesky, Elliot, Huff, McMorris, Cooke, Fuhrman, Chandler, B. Thomas and Backlund

Read first time 02/14/95.  Referred to Committee on Commerce & Labor.

Allowing employers to purchase industrial insurance from private industry insurance carriers.

    AN ACT Relating to allowing employers to purchase industrial insurance from private industry insurance carriers; adding a new section to chapter 51.04 RCW; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The purposes of this act are to:

    (1) Provide all employers in this state with a choice of insurance carriers from whom industrial insurance may be purchased;

    (2) Provide employers and their employees the benefits of a competitive industrial insurance system;

    (3) Provide workers the benefits of safety systems developed by private enterprise, as well as those provided by government;

    (4) Provide private industry in this state the opportunity to engage in industrial insurance business, with government regulation;

    (5) Eliminate a government monopoly with respect to choices for small employers; and

    (6) Increase the operating skills of this state's government run industrial insurance program by introducing competition into the business of workers' compensation insurance.

NEW SECTION. Sec. 2.  A new section is added to chapter 51.04 RCW to read as follows:

    Effective January 1, 1997, employers subject to Title 51 RCW may purchase industrial insurance coverage from any insurer holding a certificate of authority under Title 48 RCW and certified by the department of labor and industries to provide industrial insurance in this state.

NEW SECTION. Sec. 3.     (1) An implementing task force shall develop proposed legislation to implement section 2 of this act and report its recommendations to the legislature by January 1, 1996.

    (2) The task force shall consist of the following:

    (a) Two members of the senate, one from each major caucus to be appointed by the president of the senate;

    (b) Two members of the house of representatives, one from each major caucus to be appointed by the speaker of the house of representatives;

    (c) A representative of employers, a representative of workers, a representative of the insurance industry, and a representative of the Washington state medical association, each of whom shall be chosen by a majority vote of the task force members appointed in (a) and (b) of this subsection.

    (3) Each task force member shall have one vote.

    (4) The task force may add up to three members ex officio, who shall have the right to speak and make motions, but shall have no vote.

    (5) The task force may use legislative staff and facilities and may employ or contract with additional staff as necessary to carry out its mission.  All expenses of the task force, including travel, shall be paid jointly by the senate and the house of representatives.

    (6) The task force members shall receive no compensation.  Legislative members shall be reimbursed for their travel expenses as provided in RCW 44.04.120.  Other members of the task force shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

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