S-3860.1  _______________________________________________

                         SENATE BILL 6772

          _______________________________________________

State of Washington   57th Legislature        2002 Regular Session

By Senators Prentice, Costa, Fairley, Keiser and Haugen

Read first time 02/04/2002.  Referred to Committee on Labor, Commerce & Financial Institutions.

Providing for distribution of retrospective rating group refunds.

    AN ACT Relating to the department of labor and industries' retrospective rating program; and amending RCW 51.18.010.

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

    Sec. 1.  RCW 51.18.010 and 1999 c 7 s 2 are each amended to read as follows:

    (1) The department shall offer a retrospective rating plan to insure the workers' compensation obligations of employers and groups of employers.  The plan is to be made available to any employer or group of employers who:

    (a) Voluntarily elects to participate in the plan; and

    (b) Meets the requirements of this chapter and rules adopted by the department under subsection (2) of this section.

    (2) The retrospective rating plan shall be consistent with recognized insurance principles and shall be administered according to rules adopted by the department.  Rules adopted under this section shall encourage broad participation by qualified employers and sponsors of retrospective rating groups.

    (3) Each retrospective rating group approved by the department under this chapter shall:  (a) Select a coverage period ((and)) that may be renewed at the end of each coverage period; and (b) distribute at least ninety percent of any retrospective rating group refund to members of the group.  For the purposes of this section, "coverage period" means a twelve-month period provided by the department by rule.

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