5992-S AMH CL H2902.2

SSB 5992  - H COMM AMD
     By Committee on Commerce & Labor

NOT ADOPTED 04/14/2005

     Strike everything after the enacting clause and insert the following:

"Sec. 1   RCW 51.44.040 and 1982 c 63 s 14 are each amended to read as follows:
     (1) There shall be in the office of the state treasurer, a fund to be known and designated as the "second injury fund", which shall be used only for the purpose of defraying charges against it as provided in RCW 51.16.120 and 51.32.250((, as now or hereafter amended. Said)). The fund shall be administered by the director. The state treasurer shall be the custodian of the second injury fund and shall be authorized to disburse moneys from it only upon written order of the director.
     (2) Payments to the second injury fund from the accident fund shall be made pursuant to rules ((and regulations promulgated)) adopted by the director.
     (3)(a) Assessments for the second injury fund shall be imposed on self-insurers pursuant to rules ((and regulations promulgated by the director to ensure that self-insurers shall pay to such fund)) adopted by the director. Such rules shall provide for at least the following:
     (i) Except as provided in (a)(ii) of this subsection, the amount assessed each self-insurer must be
in the proportion that the payments made from ((such)) the fund on account of claims made against self-insurers bears to the total sum of payments from ((such)) the fund.
     (ii) Beginning with assessments imposed on or after July 1, 2009, but before July 1, 2012, the department shall experience rate the amount assessed each self-insurer as long as the aggregate amount assessed is in the proportion that the payments made from the fund on account of claims made against self-insurers bears to the total sum of payments from the fund. The experience rating factor must provide equal weight to the ratio between expenditures made by the second injury fund for claims of the self-insurer to the total expenditures made by the second injury fund for claims of all self-insurers for the prior three fiscal years and the ratio of workers' compensation claim payments under this title made by the self-insurer to the total worker's compensation claim payments made by all self-insurers under this title for the prior three fiscal years. The weighted average of these two ratios must be divided by the latter ratio to arrive at the experience factor.
     (b) For purposes of this subsection, "expenditures made by the second injury fund" mean the costs and charges described under RCW 51.32.250 and 51.16.120 (3) and (4), and the amounts assessed to the second injury fund as described under RCW 51.16.120(1). Under no circumstances does "expenditures made by the second injury fund" include any subsequent payments, assessments, or adjustments for pensions, where the applicable second injury fund entitlement was established outside of the three fiscal years.

NEW SECTION.  Sec. 2   The department of labor and industries must report to the appropriate committees of the legislature by December 1, 2011, on the outcomes of workers potentially impacted by the experience rating program established in RCW 51.44.040(3)(a)(ii). The report must include a comparison of outcomes for workers of self-insurers whose industrial insurance claims are closed between July 1, 2003, and June 30, 2005, and have thirty or more days of temporary total disability, with such workers of self-insurers whose industrial insurance claims are closed between July 1, 2009, and June 30, 2011. The outcomes to be compared include, but are not limited to, whether the workers potentially impacted by the experience rating program have improved return-to-work outcomes, whether the number of impacted workers found to be employable increases, whether there is a change in long-term disability outcomes among the impacted workers, and whether the number of permanent total disability pensions among impacted workers is affected and, if so, the nature of the impact. The department must develop a study methodology, including an assessment tool that must be provided to the workers' compensation advisory committee for review and comment. The study methodology will include appropriate controls to account for economic fluctuations and wage inflation."

     Correct the title.

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