H-3493.2 _______________________________________________
HOUSE BILL 2513
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State of Washington 54th Legislature 1996 Regular Session
By Representatives Lisk, Hargrove and McMorris
Read first time 01/12/96. Referred to Committee on Commerce & Labor.
AN ACT Relating to employers failure to pay industrial insurance premiums; adding a new section to chapter 51.32 RCW; adding a new section to chapter 51.04 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 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 to place the financial burden of paying for the industrial insurance benefits provided to the injured employee on the illegally uninsured employer.
NEW SECTION. Sec. 2. A new section is added to chapter 51.32 RCW to read as follows:
(1) If an employee employed by an illegally uninsured employer makes a claim for industrial insurance benefits, the department may pay only for the medical benefits of the injured employee. The department may not pay for the injured employee's lost employment time, vocational services, or other nonmedical industrial insurance benefits.
(2) The department must charge all expenses related to a claim by an employee not covered by industrial insurance to the illegally uninsured employer. If the illegally uninsured employer is unwilling to pay the charges for the benefits provided, the department may file a lien on the illegally uninsured employer's assets for the estimated or actual cost, whichever is greater, of the benefits provided to the employee.
(3) The department must not charge or transfer the cost of industrial insurance benefits provided to an employee of an illegally uninsured employer to insured employers.
NEW SECTION. Sec. 3. A new section is added to chapter 51.04 RCW to read as follows:
The director may report biennially to the legislature concerning the amount of money paid out by the department, and not recovered under section 2(2) of this act, for industrial insurance benefits provided to employees of illegally uninsured employers. The director may, at his or her discretion, seek an appropriation of funds equal to the amount of benefits provided by the department, but not recovered.
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