2312-S AAS 3/12/98 S5332.2

SHB 2312 - S AMD - 863

By Senators Snyder, Schow and Heavey

                                                   ADOPTED 3/12/98

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1.  The legislature finds that a competitive disadvantage exists in the construction industry because of  a disparity in workers' compensation coverage requirements among the states.  The intent of this act is (1) to provide an equal footing for all contractors bidding on or engaging in construction work in this state, (2) to ensure that all workers injured while in the course of employment in this state receive the benefits to which they are entitled, and (3) to not create disincentives for employers to hire workers in this state.

    Sec. 2.  RCW 51.12.120 and 1995 c 199 s 1 are each amended to read as follows:

    (1) If a worker, while working outside the territorial limits of this state, suffers an injury on account of which he or she, or his or her beneficiaries, would have been entitled to compensation under this title had ((such)) the injury occurred within this state, ((such)) the worker, or his or her beneficiaries, shall be entitled to compensation under this title((:  PROVIDED, That)) if at the time of ((such)) the injury:

    (a) His or her employment is principally localized in this state; or

    (b) He or she is working under a contract of hire made in this state for employment not principally localized in any state; or

    (c) He or she is working under a contract of hire made in this state for employment principally localized in another state whose workers' compensation law is not applicable to his or her employer; or

    (d) He or she is working under a contract of hire made in this state for employment outside the United States and Canada.

    (2) The payment or award of compensation or other recoveries, including settlement proceeds, under the workers' compensation law of another state, territory, province, or foreign nation to a worker or his or her beneficiaries otherwise entitled on account of such injury to compensation under this title shall not be a bar to a claim for compensation under this title((:  PROVIDED,)) if that claim under this title is timely filed.  If compensation is paid or awarded under this title, the total amount of compensation or other recoveries, including settlement proceeds, paid or awarded the worker or beneficiary under such other workers' compensation law shall be credited against the compensation due the worker or beneficiary under this title.

    (3)(a) An employer not domiciled in this state who is employing workers in this state in work for which the employer must be registered under chapter 18.27 RCW or licensed under chapter 19.28 RCW, or prequalified under RCW 47.28.070, must secure the payment of compensation under this title by:

(i) Insuring the employer's workers' compensation obligation under this title with the department;

(ii) Being qualified as a self-insurer under this title; or

(iii) For employers domiciled in a state or province of Canada subject to an agreement entered into under subsection (7) of this section, as permitted by the agreement, filing with the department a certificate of coverage issued by the agency that administers the workers' compensation law in the employer's state or province of domicile certifying that the employer has secured the payment of compensation under the other state's or province's workers' compensation law.

(b) The department shall adopt rules to implement this subsection.

(4) If a worker or beneficiary is entitled to compensation under this title by reason of an injury sustained in this state while in the employ of an employer who is domiciled in another state or province of Canada and the employer:

(a) Is not subject to subsection (3) of this section and ((who)) has neither opened an account with the department nor qualified as a self-insurer under this title, ((such an)) the employer or his or her insurance carrier shall file with the director a certificate issued by the agency ((which)) that administers the workers' compensation law in the state of the employer's domicile, certifying that ((such)) the employer has secured the payment of compensation under the workers' compensation law of ((such)) the other state and that with respect to ((said)) the injury ((such)) the worker or beneficiary is entitled to the benefits provided under ((such)) the other state's law.  ((In such event:

    (a))) (b) Has filed a certificate under subsection (3)(a)(iii) of this section or (a) of this subsection (4):

(i) The filing of ((such)) the certificate ((shall)) constitutes appointment by the employer or his or her insurance carrier of the director as its agent for acceptance of the service of process in any proceeding brought by any claimant to enforce rights under this title;

    (((b))) (ii) The director shall send to such employer or his or her insurance carrier, by registered or certified mail to the address shown on such certificate, a true copy of any notice of claim or other process served on the director by the claimant in any proceeding brought to enforce rights under this title;

    (((c)(i))) (iii) If ((such)) the employer is a self-insurer under the workers' compensation law of ((such)) the other state or province of Canada, ((such)) the employer shall, upon submission of evidence or security, satisfactory to the director, of his or her ability to meet his or her liability to ((such)) the claimant under this title, be deemed to be a qualified self-insurer under this title; and

    (((ii))) (iv) If ((such)) the employer's liability under the workers' compensation law of ((such)) the other state or province of Canada is insured((, such)):

(A) The employer's carrier, as to such claimant only, shall be deemed to be subject to this title((:  PROVIDED, That)).  However, unless ((its)) the insurer's contract with ((said)) the employer requires ((it)) the insurer to pay an amount equivalent to the compensation benefits provided by this title, the insurer's liability for compensation shall not exceed ((its)) the insurer's liability under the workers' compensation law of ((such)) the other state or province; and

    (((d))) (B) If the total amount for which ((such)) the employer's insurer is liable under (((c)(ii) above)) (b)(iv)(A) of this subsection is less than the total of the compensation to which ((such)) the claimant is entitled under this title, the director may require the employer to file security satisfactory to the director to secure the payment of compensation under this title((;)).

    (((e))) (c) If ((such employer)) subject to subsection (3) of this section, has not complied with subsection (3) of this section or, if not subject to subsection (3) of this section, has neither qualified as a self-insurer nor secured insurance coverage under the workers' compensation law of another state or province of Canada, ((such)) the claimant shall be paid compensation by the department((;)) and

    (((f) Any such)) the employer shall have the same rights and obligations, and is subject to the same penalties, as other employers subject to this title ((and where he or she has not provided coverage or sufficient coverage to secure the compensation provided by this title to such claimant, the director may impose a penalty payable to the department of a sum not to exceed fifty percent of the cost to the department of any deficiency between the compensation provided by this title and that afforded such claimant by such employer or his or her insurance carrier if any)).

    (((4))) (5) As used in this section:

    (a) A person's employment is principally localized in this or another state when:  (i) His or her employer has a place of business in this or ((such)) the other state and he or she regularly works at or from ((such)) the place of business((,)); or (ii) if ((clause (i) foregoing)) (a)(i) of this subsection is not applicable, he or she is domiciled in and spends a substantial part of his or her working time in the service of his or her employer in this or ((such)) the other state;

    (b) "Workers' compensation law" includes "occupational disease law" for the purposes of this section.

    (((5))) (6) A worker whose duties require him or her to travel regularly in the service of his or her employer in this and one or more other states may agree in writing with his or her employer that his or her employment is principally localized in this or another state, and, unless ((such)) the other state refuses jurisdiction, ((such)) the agreement shall govern as to any injury occurring after the effective date of the agreement.

    (((6))) (7) The director ((shall be)) is authorized to enter into agreements with the appropriate agencies of other states and provinces of Canada ((which)) that administer their workers' compensation law with respect to conflicts of jurisdiction and the assumption of jurisdiction in cases where the contract of employment arises in one state or province and the injury occurs in another((, and)).  If the other state's or province's law requires Washington employers to secure the payment of compensation under the other state's or province's workers' compensation laws for work that in Washington requires the employer to be registered under chapter 18.27 RCW or licensed under chapter 19.28 RCW, or prequalified under RCW 47.28.070, then employers domiciled in that state or province must purchase compensation covering their workers engaged in that work in this state under this state's industrial insurance law.  When ((any such)) an agreement under this subsection has been executed and ((promulgated)) adopted as a ((regulation)) rule of the department under chapter 34.05 RCW, it ((shall)) binds all employers and workers subject to this title and the jurisdiction of this title ((shall be)) is governed by this ((regulation)) rule.

    Sec. 3.  RCW 18.27.030 and 1997 c 314 s 4 are each amended to read as follows:

    (1) An applicant for registration as a contractor shall submit an application under oath upon a form to be prescribed by the director and which shall include the following information pertaining to the applicant:

    (a) Employer social security number.

    (b) ((As applicable:  (i) The industrial insurance account number covering employees domiciled in Washington; and (ii) evidence of workers' compensation coverage in the applicant's state of domicile for the applicant's employees working in Washington who are not domiciled in Washington)) Evidence of workers' compensation coverage for the applicant's employees working in Washington, as follows:

(i) The applicant's industrial insurance account number issued by the department;

(ii) The applicant's self-insurer number issued by the department; or

(iii) For applicants domiciled in a state or province of Canada subject to an agreement entered into under RCW 51.12.120(7), as permitted by the agreement, filing a certificate of coverage issued by the agency that administers the workers' compensation law in the applicant's state or province of domicile certifying that the applicant has secured the payment of compensation under the other state's or province's workers' compensation law.

    (c) Employment security department number.

    (d) State excise tax registration number.

    (e) Unified business identifier (UBI) account number may be substituted for the information required by (b)((,)) of this subsection if the applicant will not employ employees in Washington, and by (c)((,)) and (d) of this subsection.

    (f) Type of contracting activity, whether a general or a specialty contractor and if the latter, the type of specialty.

    (g) The name and address of each partner if the applicant ((be)) is a firm or partnership, or the name and address of the owner if the applicant ((be)) is an individual proprietorship, or the name and address of the corporate officers and statutory agent, if any, if the applicant ((be)) is a corporation.  The information contained in such application ((shall be)) is a matter of public record and open to public inspection.

    (2) The department may verify the workers' compensation coverage information provided by the applicant under subsection (1)(b) of this section, including but not limited to information regarding the coverage of an individual employee of the applicant.  If coverage is provided under the laws of another state, the department may notify the other state that the applicant is employing employees in Washington.

    (3) The department shall deny an application for registration if the applicant has been previously registered as a sole proprietor, partnership, or corporation and the applicant has an unsatisfied final judgment against him or her in an action based on this chapter that was incurred during a previous registration under this chapter.

    Sec. 4.  RCW 19.28.120 and 1992 c 217 s 2 are each amended to read as follows:

    (1) It is unlawful for any person, firm, partnership, corporation, or other entity to engage in, conduct, or carry on the business of installing or maintaining wires or equipment to convey electric current, or installing or maintaining equipment to be operated by electric current as it pertains to the electrical industry, without having an unrevoked, unsuspended, and unexpired electrical contractor license, issued by the department in accordance with this chapter.  All electrical contractor licenses expire twenty-four calendar months following the day of their issue.  The department may issue an electrical contractors license for a period of less than twenty-four months only for the purpose of equalizing the number of electrical contractor licenses ((which)) that expire each month.  Application for an electrical contractor license shall be made in writing to the department, accompanied by the required fee.  The application shall state:

    (a) The name and address of the applicant; in case of firms or partnerships, the names of the individuals composing the firm or partnership; in case of corporations, the names of the managing officials thereof;

    (b) The location of the place of business of the applicant and the name under which the business is conducted;

    (c) Employer social security number;

    (d) ((As applicable:  (i) The industrial insurance account number covering employees domiciled in Washington; and (ii) evidence of workers' compensation coverage in the applicant's state of domicile for the applicant's employees working in Washington who are not domiciled in Washington)) Evidence of workers' compensation coverage for the applicant's employees working in Washington, as follows:

(i) The applicant's industrial insurance account number issued by the department;

(ii) The applicant's self-insurer number issued by the department; or

(iii) For applicants domiciled in a state or province of Canada subject to an agreement entered into under RCW 51.12.120(7), as permitted by the agreement, filing a certificate of coverage issued by the agency that administers the workers' compensation law in the applicant's state or province of domicile certifying that the applicant has secured the payment of compensation under the other state's or province's workers' compensation law;

    (e) Employment security department number;

    (f) State excise tax registration number;

    (g) Unified business identifier (UBI) account number may be substituted for the information required by (d)((,)) of this subsection if the applicant will not employ employees in Washington, and by (e)((,)) and (f) of this subsection; and

    (h) Whether a general or specialty electrical contractor license is sought and, if the latter, the type of specialty.  Electrical contractor specialties include, but are not limited to:  Residential, domestic appliances, pump and irrigation, limited energy system, signs, nonresidential maintenance, and a combination specialty.  A general electrical contractor license shall grant to the holder the right to engage in, conduct, or carry on the business of installing or maintaining wires or equipment to carry electric current, and installing or maintaining equipment, or installing or maintaining material to fasten or insulate such wires or equipment to be operated by electric current, in the state of Washington.  A specialty electrical contractor license shall grant to the holder a limited right to engage in, conduct, or carry on the business of installing or maintaining wires or equipment to carry electrical current, and installing or maintaining equipment; or installing or maintaining material to fasten or insulate such wires or equipment to be operated by electric current in the state of Washington as expressly allowed by the license.

    (2) The department may verify the workers' compensation coverage information provided by the applicant under subsection (1)(d) of this section, including but not limited to information regarding the coverage of an individual employee of the applicant.  If coverage is provided under the laws of another state, the department may notify the other state that the applicant is employing employees in Washington.

    (3) The application for a contractor license shall be accompanied by a bond in the sum of four thousand dollars with the state of Washington named as obligee in the bond, with good and sufficient surety, to be approved by the department.  The bond shall at all times be kept in full force and effect, and any cancellation or revocation thereof, or withdrawal of the surety therefrom, suspends the license issued to the principal until a new bond has been filed and approved as provided in this section.  Upon approval of a bond, the department shall on the next business day deposit the fee accompanying the application in the electrical license fund and shall file the bond in the office.  The department shall upon request furnish to any person, firm, partnership, corporation, or other entity a certified copy of the bond upon the payment of a fee that the department shall set by rule.  The fee shall cover but not exceed the cost of furnishing the certified copy.  The bond shall be conditioned that in any installation or maintenance of wires or equipment to convey electrical current, and equipment to be operated by electrical current, the principal will comply with the provisions of this chapter and with any electrical ordinance, building code, or regulation of a city or town adopted pursuant to RCW 19.28.010(((2))) (3) that is in effect at the time of entering into a contract.  The bond shall be conditioned further that the principal will pay for all labor, including employee benefits, and material furnished or used upon the work, taxes and contributions to the state of Washington, and all damages that may be sustained by any person, firm, partnership, corporation, or other entity due to a failure of the principal to make the installation or maintenance in accordance with this chapter or any applicable ordinance, building code, or regulation of a city or town adopted pursuant to RCW 19.28.010(((2))) (3).  In lieu of the surety bond required by this section the license applicant may file with the department a cash deposit or other negotiable security acceptable to the department.  If the license applicant has filed a cash deposit, the department shall deposit the funds in a special trust savings account in a commercial bank, mutual savings bank, or savings and loan association and shall pay annually to the depositor the interest derived from the account.

    (4) The department shall issue general or specialty electrical contractor licenses to applicants meeting all of the requirements of this chapter.  The provisions of this chapter relating to the licensing of any person, firm, partnership, corporation, or other entity including the requirement of a bond with the state of Washington named as obligee therein and the collection of a fee therefor, are exclusive, and no political subdivision of the state of Washington may require or issue any licenses or bonds or charge any fee for the same or a similar purpose.  No person, firm, partnership, corporation, or other entity holding more than one specialty contractor license under this chapter may be required to pay an annual fee for more than one such license or to post more than one four thousand dollar bond, equivalent cash deposit, or other negotiable security.

    (5) To obtain a general or specialty electrical contractor license the applicant must designate an individual who currently possesses an administrator's certificate as a general electrical contractor administrator or as a specialty electrical contractor administrator in the specialty for which application has been made.  Administrator certificate specialties include but are not limited to:  Residential, domestic, appliance, pump and irrigation, limited energy system, signs, nonresidential maintenance, and combination specialty.  To obtain an administrator's certificate an individual must pass an examination as set forth in RCW 19.28.123 unless the applicant was a licensed electrical contractor at any time during 1974.  Applicants who were electrical contractors licensed by the state of Washington at any time during 1974 are entitled to receive a general electrical contractor administrator's certificate without examination if the applicants apply prior to January 1, 1984.  The board of electrical examiners shall certify to the department the names of all persons who are entitled to either a general or specialty electrical contractor administrator's certificate.

NEW SECTION. Sec. 5.  The workers' compensation advisory committee established under RCW 51.04.110 shall appoint a subcommittee to review section 2 of this act and related issues, as determined by the committee, and report its findings and recommendations to the committee.  The committee shall make a final report to the department of labor and industries by December 15, 1998.  The department shall report on the study to the appropriate committees of the legislature by January 15, 1999."

SHB 2312 - S AMD - 863

By Senators Snyder, Schow and Heavey

                                                   ADOPTED 3/12/98

    On page 1, line 2 of the title, after "Washington;" strike the remainder of the title and insert "amending RCW 51.12.120, 18.27.030, and 19.28.120; and creating new sections."

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