Washington State

House of Representatives

Office of Program Research

BILL

 ANALYSIS

Commerce & Labor Committee

 

 

ESSB 5017

Brief Description: Excluding minors working in family businesses from industrial insurance provisions.

 

Sponsors: Senate Committee on Commerce & Trade (originally sponsored by Senators Hewitt, Mulliken, Morton, Stevens, Zarelli, Hale, Deccio and Parlette).


Brief Summary of Engrossed Substitute Bill

    Expands the industrial insurance exemption for children employed on the family farm to any employment by a parent of his or her child, except a foster child, on providing written evidence of health insurance coverage for the child.


Hearing Date:


Staff: Chris Cordes (786-7103).


Background:


Industrial insurance is a no-fault state workers' compensation program that provides medical and partial wage replacement benefits to covered workers who are injured in the course of employment or who develop an occupational disease. Unless the employment is exempt, employers are required to cover their workers by securing coverage with the Department of Labor and Industries or by qualifying as a self-insurer. Employments that are not mandatorily covered include the employment of children under age 18 by their parents in agricultural activities on the family farm.


Services provided by a "booth renter" as defined in the cosmetology licensing law are also exempt from mandatory industrial insurance coverage. Until 2002 a "booth renter" was defined as a person who performed cosmetology services in a salon/shop where the use of the facility was contingent on compensation to the owner of the facilities and the person received no compensation from the owner for the services. In 2002 that definition of "booth renter" was repealed. The 2002 cosmetology law requires all persons, other than employees of a salon/shop, who operate from a salon/shop to meet all the salon/shop licensing requirements.


Summary of Bill:


The industrial insurance law's exemption from mandatory coverage for a child employed on the family farm is expanded to include any employment by a parent of his or her child, other than a foster child, on providing written evidence to the Department of Labor and Industries that the child is covered by health insurance.


Technical changes are made to replace a reference to the repealed definition of "booth renter." Under these changes, mandatory coverage does not apply to a person licensed as a salon/shop under the cosmetology licensing statute.


Rules Authority: The bill does not contain provisions addressing the rule-making powers of an agency.


Appropriation: None.


Fiscal Note: Not requested.


Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.