H-4874.1          _______________________________________________

 

                            SUBSTITUTE HOUSE BILL 2513

                  _______________________________________________

 

State of Washington              54th Legislature             1996 Regular Session

 

By House Committee on Commerce & Labor (originally sponsored by Representatives Lisk, Hargrove and McMorris)

 

Read first time 02/02/96. 

 

Concerning industrial insurance benefits.



     AN ACT Relating to employers' failure to pay industrial insurance premiums; creating a new section; and providing an expiration date.

 

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

 

     NEW SECTION.  Sec. 1.  (1) The legislature finds that there is a continuing problem of employers illegally failing to pay industrial insurance premiums.  When an employee of an illegally uninsured employer files a claim for benefits, the department of labor and industries is forced to pass on the cost of the benefits provided to other legally insured employers in the same risk classification.  It is the intent of the legislature that a method should be devised to place the financial burden of paying for the industrial insurance benefits provided to the injured employee on the illegally uninsured employer.

     (2) To find a method for placing the financial burden more fairly, a legislative joint task force shall review and make recommendations for legislation.  Issues that should be reviewed include:  (a) The number of employers who fail to obtain industrial insurance for their workers and the resulting cost to other employers in the state fund; (b) the number of these employers who also fail to pay other state taxes generally required of employers and the resulting cost to the state for failure to pay; (c) methods of improving compliance with industrial insurance and other employer responsibilities under state law; and (d) any other issues considered relevant by the task force.

     (3) The joint task force shall consist of eight members, one member from each caucus of the senate labor, commerce, and trade committee, appointed by the chair of the committee; one member from each caucus of the house of representatives commerce and labor committee, appointed by the chair of the committee; two members representing business, appointed jointly by the two committee chairs; and two members representing labor, appointed jointly by the two committee chairs.  In addition, the department of labor and industries shall cooperate with the task force and maintain a liaison with the task force.  The task force shall choose its chair from among its membership.

     (4) The task force shall report its findings and recommendations to the appropriate committees of the legislature by December 1, 1996.

     (5) This section shall expire June 1, 1997.

 


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