BILL REQ. #:  S-3879.1 

Read first time 01/19/2004.   Referred to Committee on Commerce & Trade.

     AN ACT Relating to extending existing employer workers' compensation group self-insurance to the logging industry; and adding a new section to chapter 51.14 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 51.14 RCW to read as follows:
     (1) Any two or more employers in the logging industry may enter into agreements to form self-insurance groups for the purposes of this chapter if:
     (a) The employers are members of an organization that meets the following conditions:
     (i) The organization has been in existence for at least five years;
     (ii) The organization was formed for a purpose other than that of obtaining workers' compensation coverage under this section;
     (iii) The occupations of the employers within the organization are substantially similar and within the logging industry, taking into consideration the nature of the services being performed by employees of the employers;
     (iv) The organization permits any employer assigned a risk classification within the logging industry, as determined by the director, to join the organization for the purpose of self-insuring, if the employer meets the membership requirements and follows the rules established for the self-insurance group; and
     (v) The organization permits any of its members who are employers assigned a risk classification within the logging industry, as determined by the director, to join the self-insurance group; and
     (b) The formation and operation of the group self-insurance program will improve accident prevention and claim management for the employers in the group.
     (2) A self-insurance group formed under this section shall organize and operate under rules adopted by the director under RCW 51.14.160.
     (3) A self-insurance group under this section is an "employer" for the purposes of this chapter, except RCW 51.14.077, and may qualify as a self-insurer if it meets all the other requirements of this chapter.
     (4)(a) The group self-insurers' insolvency trust account is created in the custody of the state treasurer. All receipts from the insolvency assessment under (b) of this subsection shall be deposited into the account. Expenditures from the account may be used only to provide for the unsecured benefits paid to the injured employees of group self-insured employers under this title for insolvent or defaulting groups of member employers and for the department's associated administrative costs, including attorneys' fees. Only the director or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.
     (b) To fund the group self-insurers' insolvency trust account, the department shall levy an insolvency assessment on a postinsolvency basis and after the defaulting group's and individual member employers' security deposit assets and reinsurance have been exhausted. The department shall impose insolvency assessments on all group self-insurers except school districts, educational service districts, hospital districts, and hospitals. The department shall adopt rules to set forth the manner of imposing and collecting assessments to ensure that group self-insured employers pay into the account in proportion to their claim costs. The department's rules must provide that self- insurance groups or member employers who have surrendered their certification are assessed for a period of a maximum of three calendar years following the termination date of their certification.
     (c) The director shall adopt rules to carry out the purposes of this subsection, including but not limited to: Governing the formation of the group self-insurers' insolvency trust account for the purpose of this chapter; governing the organization and operation of the self-insurers' insolvency trust account to assure compliance with this chapter; requiring adequate accountability of the collection and disbursement of funds in the group self-insurers' insolvency trust account; and any other provisions necessary to carry out this chapter.