BILL REQ. #:  H-0468.2 

Read first time 01/13/2005.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to the department of labor and industries' retrospective rating program; amending RCW 51.16.035; adding a new section to chapter 51.18 RCW; and declaring an emergency.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 51.18 RCW to read as follows:
     With respect to any coverage period ending on or after the effective date of this act, an entity sponsoring a retrospective rating group may not retain from any refund or dividend paid by the department to the entity an amount equal to more than ten percent of the refund or dividend for the coverage period, less any enrollment fees paid by members of the retrospective rating group to the entity for the coverage period.

Sec. 2   RCW 51.16.035 and 1999 c 7 s 8 are each amended to read as follows:
     (1) The department shall classify all occupations or industries in accordance with their degree of hazard and fix therefor basic rates of premium which shall be the lowest necessary to maintain actuarial solvency of the accident and medical aid funds in accordance with recognized insurance principles. The department shall formulate and adopt rules and regulations governing the method of premium calculation and collection and providing for a rating system consistent with recognized principles of workers' compensation insurance which shall be designed to stimulate and encourage accident prevention and to facilitate collection. The department may annually, or at such other times as it deems necessary to maintain solvency of the funds, readjust rates in accordance with the rating system to become effective on such dates as the department may designate.
     (2) In providing a retrospective rating plan under RCW 51.18.010, the department may consider each individual retrospective rating group as a single employing entity for purposes of refunds, dividends, or premium discounts.

NEW SECTION.  Sec. 3   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.