SENATE BILL REPORT

                   SB 6144

              As Passed Senate, February 11, 1998

Title:  An act relating to the statute of limitations for the repayment or recoupment of industrial insurance benefits induced by claimant fraud.

Brief Description:  Recovering industrial insurance benefit payments.

Sponsors:  Senators Schow, Heavey and Horn; by request of Department of Labor & Industries.

Brief History:

Committee Activity:  Commerce & Labor:  1/20/98 [DP].

Passed Senate, 2/11/98, 45-0.

SENATE COMMITTEE ON COMMERCE & LABOR

Majority Report:  Do pass.

  Signed by Senators Schow, Chair; Horn, Vice Chair; Anderson, Franklin, Fraser, Heavey and Newhouse.

Staff:  Jack Brummel (786-7428)

Background:  Under current law, when there is worker fraud in the receipt of industrial insurance benefits, the Department of Labor and Industries must demand or order recovery from a worker within one year of the discovery of the fraud.  Because fraud cases must be well investigated and documented, they can be time consuming.  The office of the Attorney General and the department believe a three-year period would lead to the recovery of more money.

Summary of Bill:  The repayment or recoupment of industrial insurance payments induced by fraud must be demanded or ordered within three years of the discovery of the fraud.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The current one-year period starts on the date of notification of potential fraud.  A thorough investigation often requires more time.

Testimony Against:  None.

Testified:  Doug Connel, L&I; Robbie Stern, Washington State Labor Council.