5850.E AMH ROME CORD 147

ESB 5850 - H AMD TO CL COMM AMD (5850.E AMH CL H2979.2) 648 FAILED

By Representative Romero 4-18-97

     On page 2, after line 35 of the amendment, insert the following:

     "NEW SECTION. Sec. 3.  A new section is added to chapter 51.16 RCW to read as follows:

     A group retrospective rating plan agreement between the department and a retrospective rating plan group covering employers in the construction industry must include in the agreement:

     (1) The method by which funds received by the sponsoring organization or association as group retrospective premium adjustments will be distributed to employer members; and

     (2) A requirement for a financial statement of the retrospective rating plan group to be distributed annually to each employer member of the group.  At a minimum, the financial statement must include a report on the amount and distribution of group retrospective premium adjustment funds, including the amounts distributed to employer members, the amount retained by the sponsoring organization or association for administration of the group retrospective rating program, and the purposes for which any remaining amounts were spent."

Renumber the sections consecutively and correct internal references accordingly.

EFFECT:  Adds that industrial insurance retrospective rating plan groups in the construction industry must include in their retrospective rating plan agreements with the Department of Labor and Industries:  (1) the method by which refunds will be distributed to employer members; and (2) a requirement for financial statements of the group to be distributed annually to the employer members, with information about the amount, distribution, and expenditure of retrospective rating plan refunds.