BILL REQ. #:  H-4658.1 



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HOUSE BILL 3149
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State of Washington61st Legislature2010 Regular Session

By Representatives Chandler, Crouse, Ericksen, Bailey, Herrera, Haler, Kretz, Smith, Kristiansen, Nealey, Taylor, Hinkle, McCune, Schmick, Johnson, Ross, Pearson, Angel, Warnick, and Short

Read first time 01/28/10.   Referred to Committee on Commerce & Labor.



     AN ACT Relating to industrial insurance; amending RCW 51.08.060, 51.08.040, 48.32.020, 51.04.020, 51.04.040, 51.04.070, 51.04.090, 51.04.100, 51.04.105, 51.04.130, 51.08.015, 51.12.035, 51.12.050, 51.12.070, 51.12.110, 51.12.120, 51.12.140, 51.12.170, 51.14.010, 51.14.050, 51.14.100, 51.14.300, 51.14.340, 51.14.350, 51.14.360, 51.14.380, 51.14.390, 51.14.400, 51.16.070, 51.16.120, 51.16.140, 51.16.150, 51.16.220, 51.24.030, 51.24.050, 51.24.060, 51.24.070, 51.24.080, 51.24.090, 51.28.010, 51.28.020, 51.28.025, 51.28.055, 51.28.080, 51.28.090, 51.32.055, 51.32.060, 51.32.067, 51.32.072, 51.32.073, 51.32.080, 51.32.098, 51.32.110, 51.32.112, 51.32.114, 51.32.135, 51.32.160, 51.32.185, 51.32.190, 51.32.195, 51.32.210, 51.32.215, 51.32.240, 51.32.242, 51.32.380, 51.36.010, 51.36.015, 51.36.020, 51.36.022, 51.36.040, 51.36.060, 51.36.070, 51.36.120, 51.36.140, 51.36.150, 51.44.040, 51.44.040, 51.44.070, 51.44.090, 51.44.100, 51.44.115, 51.48.010, 51.48.020, 51.48.030, 51.48.040, 51.48.050, 51.48.055, 51.48.060, 51.48.080, 51.48.090, 51.48.103, 51.48.250, 51.48.260, 51.52.030, 51.52.050, 51.52.070, 51.52.080, 51.52.100, 51.52.110, 51.52.115, 51.52.120, 51.52.130, 51.52.132, and 51.52.135; reenacting and amending RCW 51.52.060; adding new sections to chapter 51.08 RCW; adding a new section to chapter 48.19 RCW; adding new sections to chapter 51.44 RCW; adding a new section to chapter 51.16 RCW; adding new sections to chapter 51.28 RCW; adding a new section to chapter 51.32 RCW; adding a new chapter to Title 51 RCW; repealing RCW 51.04.030, 51.04.082, 51.04.085, 51.04.110, 51.04.120, 51.04.150, 51.08.175, 51.14.070, 51.16.035, 51.16.042, 51.16.060, 51.16.100, 51.16.105, 51.16.130, 51.16.155, 51.16.160, 51.16.170, 51.16.180, 51.16.190, 51.16.200, 51.18.005, 51.18.010, 51.18.020, 51.18.030, 51.18.040, 51.18.050, 51.18.060, 51.18.900, 51.36.080, 51.36.085, 51.36.090, 51.36.100, 51.36.110, 51.36.130, 51.44.010, 51.44.020, 51.44.030, 51.44.050, 51.44.060, 51.28.015, 51.32.300, 51.32.350, 51.32.360, 51.32.370, 51.48.075, 51.48.120, 51.48.131, 51.48.140, 51.48.150, 51.48.160, 51.48.170, 51.48.180, 51.48.190, 51.48.200, 51.48.210, 51.48.220, 51.48.230, 51.48.240, 51.48.290, 51.52.075, 51.52.150, and 51.52.800; and providing an effective date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 51.08 RCW to read as follows:
     "Industrial insurance benefits" means all compensation, monetary benefits, and medical and related benefits provided under this title.

NEW SECTION.  Sec. 2   A new section is added to chapter 51.08 RCW to read as follows:
     "Insurer" means:
     (1) The state fund established in section 8 of this act;
     (2) Any private company, corporation, mutual association, or reciprocal or interinsurance exchange that meets the requirement of section 15 of this act; or
     (3) Any employer to whom a certificate of qualification to self-insure has been issued under RCW 51.14.030.

NEW SECTION.  Sec. 3   A new section is added to chapter 51.08 RCW to read as follows:
     "Reserve fund" means the self-insurance reserve fund established in section 21 of this act.

NEW SECTION.  Sec. 4   A new section is added to chapter 51.08 RCW to read as follows:
     "State fund" means the Washington state industrial insurance fund as established in section 8 of this act.

Sec. 5   RCW 51.08.060 and 1961 c 23 s 51.08.060 are each amended to read as follows:
     (1) "Director" means the director of labor and industries.
     (2) "Manager" means the manager of the state fund as established in section 8 of this act.

NEW SECTION.  Sec. 6   A new section is added to chapter 51.08 RCW to read as follows:
     "Industrial insurance administrative fund" means the fund created in section 16 of this act.

Sec. 7   RCW 51.08.040 and 1961 c 23 s 51.08.040 are each amended to read as follows:
     (1) "Commissioner" means the insurance commissioner as defined in RCW 48.02.010.
     (2)
"Department" means ((department of labor and industries)) the office of the insurance commissioner.

NEW SECTION.  Sec. 8   (1) The Washington state industrial insurance fund is established for the purpose of insuring employers for their liability arising out of this title beginning July 1, 2012.
     (2) The state fund may also insure a Washington employer who has secured coverage with the state fund under this title for any other liability the employer may have on account of bodily injury to an employee arising out of and in the course of employment as fully as any other insurer including, but not limited to, any liability for compensation for injury or death under the longshoremen's and harbor workers' compensation act, 33 U.S.C. Secs. 901 through 950, or any act amendatory or supplementary thereto or in lieu thereof, and may enter into any contract or obligation relating to the transaction of its business which is permitted by law.
     (3) The functions of the state fund are:
     (a) To confer with and solicit employers and to handle, audit, and enforce collection of premiums, assessments, and fees of employers insured with it;
     (b) To receive, handle, and process the claims of workers and beneficiaries of workers injured in the employ of employers insured with the state fund and to issue warrants for the payment of its obligations; and
     (c) To perform all other functions that the laws of this state authorize an industrial insurance insurer to perform and that are necessary or appropriate to carry out the functions authorized, including securing reinsurance for any risk insured by the state fund.
     (4) The state fund in its own name may sue and be sued in all actions arising out of any act or omission in connection with its business affairs, and is entitled to appear as a party in any proceedings involving claims payable by the state fund under this title.
     (5) The state fund shall allocate revenues received from its investments, other than revenues allocated for the payment of pensions, to reduce the premiums for employers insured by the state fund and shall apply, whenever possible, for a deviation as provided in section 14 of this act from manual rates filed by the licensed rating organization so that its charges for industrial insurance are the lowest possible rates necessary to maintain the actuarial solvency of the state fund.
     (6) The state fund shall participate in the Washington insurance guaranty association under chapter 48.32 RCW in the same manner as any other industrial insurance insurer.
     (7) The state fund shall charge premiums in accordance with this title and based on the rates filed by the licensed rating organization and approved by the commissioner.
     (8) The state fund shall participate in the assigned risk plan under section 14 of this act.
     (9) The state fund may acquire, lease, rent, own, and manage real property. It may purchase, rent, lease, or otherwise acquire for its use all supplies, materials, equipment, and services necessary to carry out its functions. It may sell or otherwise dispose of any property acquired under this subsection.
     (10) The state fund shall pay all taxes and fees as any other insurer meeting the requirements of section 15 of this act.

NEW SECTION.  Sec. 9   (1) The state fund created in section 8 of this act is governed by policies established by a board of five directors appointed by the governor and approved by the senate. Each member must be a policyholder of the state fund. Two of the members must represent a business with twenty or fewer employees at the time of appointment.
     The initial terms of the board members are: One member serves for two years, two members serve for four years, and two members serve for six years. Thereafter, each member serves a term of six years. A member may not serve more than two consecutive terms. A director holds office until the appointment and qualification of a successor.
     (2) The board of directors shall:
     (a) Elect a chair from among its members to serve for the following calendar year;
     (b) Meet not less than monthly to consider and act on the affairs of the state fund;
     (c) Establish the policies for the operation of the state fund consistent with all applicable provisions of law;
     (d) Employ a manager to manage the daily operations of the state fund; and
     (e) Be reimbursed for all expenses in accordance with chapter 43.03 RCW.
     (3) The manager is not a voting member of the board of directors but shall act at the will of and in support of the board of directors and provide staff support as required by the board of directors to carry out its activities.
     (4) A member of the board of directors may not have any pecuniary interest, other than an incidental interest which is disclosed and made a matter of public record at the time of appointment to the board, in any corporation or other business entity doing business as an industrial insurance insurer.
     (5) A majority of the members of the board constitute a quorum for the transaction of business.

NEW SECTION.  Sec. 10   The state fund must be under the direct supervision of a manager who is selected and employed at the discretion of the board of directors. The salary of the manager is fixed by the board of directors. The manager shall report at least annually to the board of directors, the governor, and the legislature on the state of the state fund and shall include in the report a review of its operations for the previous twelve months.

NEW SECTION.  Sec. 11   The assets and liabilities of the following funds are transferred on July 1, 2012, to the state fund:
     (1) The accident fund previously maintained under RCW 51.44.010 before July 1, 2012;
     (2) The medical aid fund previously maintained under RCW 51.44.020 before July 1, 2012;
     (3) The reserve fund previously maintained under RCW 51.44.030, before July 1, 2012, except that portion attributable to self-insurers pursuant to RCW 51.44.140 before July 1, 2012;
     (4) All other assets and liabilities held by the industrial insurance division of the department under this title on July 1, 2012, except the supplemental pension fund and any other funds pertaining to the regulatory functions of the department; and
     (5) The equipment and fixtures used by the department on June 30, 2012, to administer insurance for the liability of employers under Title 51 RCW, which must be transferred to the state fund without cost to the state fund.

NEW SECTION.  Sec. 12   (1) Effective July 1, 2012, all employers required to pay industrial insurance benefits, medical aid, and supplemental pension fees to the industrial insurance division of the department under this title must become insureds of the state fund until: (a) The employer elects to secure otherwise the payment of industrial insurance benefits under this title; or (b) the employer receives notice from the state fund of the termination or nonrenewal of insurance.
     (2) All liability accruing under the law in effect until July 1, 2012, for employers paying premiums to the industrial insurance division of the department under this title is transferred on July 1, 2012, to the state fund, together with liabilities for all expenses, claim costs, administrative costs, and all other obligations arising out of the operations of the division and having accrued until July 1, 2012.
     (3) The powers, duties, and functions of the industrial insurance division relating to insurance coverage, actuarial computations, claims management, premium collection, accounting, and all other powers necessary to administer the state fund as an insurer, that are not otherwise transferred by this chapter, are vested in the state fund as of July 1, 2012.

NEW SECTION.  Sec. 13   The state of Washington is not liable beyond the assets of the state fund for any obligations of the state fund. The state fund shall operate on a parity with other insurers, other than self-insurers, and must be self-supporting and without subsidy of any kind. The state fund has the authority to acquire any equipment, supplies, or other personal or real property, and employ personnel as may be reasonably necessary to solicit and provide industrial insurance, and take all actions to enable it to be fully competitive in offering industrial insurance. The state fund is subject to the same regulation, examination, reporting requirements, and disclosure as all other insurers other than self-insurers providing insurance under this title.
     All moneys received by and under the supervision and control of the state fund must be deposited and maintained by the state fund. Disbursements from the state fund for all the operating costs of the fund and for payment of all claims obligations must be on authorization of the manager or a duly authorized representative of the manager.

NEW SECTION.  Sec. 14   A new section is added to chapter 48.19 RCW to read as follows:
     (1) For the purposes of this chapter, the term "industrial insurance insurer" includes an insurer authorized to insure the liabilities defined by Title 51 RCW and includes the state fund as established by section 8 of this act, but does not include any employer, or any other insurer authorized to provide insurance in this state that insures a portion of the liability arising from this title for an employer that is self-insured. However, chapter 48.22 RCW does not apply to industrial insurance unless specified. When provisions of this section conflict with other provisions of this title, the provisions of this section control.
     (2) The commissioner shall issue a certificate of authority to be an industrial insurance insurer if the insurer meets the requirements to be licensed to sell insurance in this state and meets the applicable provisions of this title and Title 51 RCW. The commissioner shall perform all duties required under this title to ensure that each insurer continues to meet the requirements of the applicable provisions of this title and Title 51 RCW.
     (3) The commissioner shall designate a licensed rating organization to file with the commissioner, for approval, a manual of classifications and rules, rating plans, policy forms and provisions, a payroll limitation, and a statistical reporting plan which provides data adequate for rate making. Every insurer must be a member of the licensed rating organization designated by the commissioner and must adhere to the approved filings required by this section.
     (4) The licensed rating organization on behalf of and in lieu of filings by its members shall file manual rates with the commissioner for approval. Any member of the rating organization may make written application to the commissioner for approval of uniform percentage deviations from the manual rates filed by the rating organization and approved by the commissioner.
     (5) The state fund is entitled to membership on any committee established in this state by the rating organization.
     (6) All manual rates filed by the rating organization are subject to a payroll limitation approved by the commissioner which must be adjusted annually by the percentage change in the state average annual wage determined under RCW 50.04.355.
     (7) The commissioner shall establish an assigned risk plan for all industrial insurance insurers.
     (8) This chapter does not prohibit or regulate the payment of dividends and savings on unabsorbed premium deposits allowed or returned by industrial insurance insurers to their policyholders, members, or subscribers. A plan returned by insurers to their policyholders, members, or subscribers is not a rating plan or system.

NEW SECTION.  Sec. 15   (1) Each insurer offering to sell industrial insurance meeting the requirements of this title, except for employers that are self-insured, or insurers providing partial reinsurance for a self-insurer, shall hold a certificate of authority issued by the commissioner under chapter 48.05 RCW permitting it to provide industrial insurance. Before issuing the certificate, the commissioner shall certify that the insurer has the capacity to provide adequate safety engineering, loss prevention, and claims management services for all employers the insurer insures. Such a certificate is not valid if the insurer fails to maintain a location within the state where applications for industrial insurance benefits may be made and maintain with the commissioner a list of the locations and telephone numbers where information may be obtained about all appropriate matters relating to claims.
     (2) Each insurer may refuse to provide industrial insurance for up to eight percent of employers who apply for insurance with the insurer except that each insurer shall participate in the assigned risk plan as provided in section 14 of this act. Any insurer failing to provide insurance as required by the assigned risk plan is not permitted to sell industrial insurance in this state.
     (3) On the effective date of this section, the state fund must be issued a certificate of authority from the commissioner. Thereafter, the state fund is required to maintain the certificate and meet all of the applicable provisions of Title 48 RCW and this title like any other insurer.

NEW SECTION.  Sec. 16   A new section is added to chapter 51.44 RCW to read as follows:
     A revolving fund to be known and designated as the industrial insurance administrative fund is created in the custody of the state treasurer. The commissioner is the administrator of the fund. The industrial insurance administrative fund is established to provide for the payment of all expenses of the board of industrial insurance appeals, and the commissioner with respect to the administration of their respective duties under this title and those sections of Title 48 RCW governing industrial insurance. Any money appropriated from the general fund for the uses and purposes of the administrative fund must be placed in the administrative fund. Only the commissioner or the commissioner's designee may authorize expenditures from the fund. The fund is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 17   A new section is added to chapter 51.44 RCW to read as follows:
     (1) The commissioner shall periodically calculate and collect from insurers assessments that, with the interest earned, are sufficient to cover the administrative costs described in sections 16 and 19 of this act. The time and manner of collecting assessments must be set forth in rules adopted by the commissioner under chapter 34.05 RCW.
     (2) The commissioner shall prepare, as soon as is practicable after July 1st each year, a line item budget for the industrial insurance administrative fund for the succeeding fiscal year. The budget must be based upon the actual expenditures of the preceding fiscal year and a reasonable estimate of expenses for the succeeding year. This budget must be adopted in accordance with chapter 34.05 RCW.
     (3) The assessment of each insurer must be an amount bearing the same ratio to the total administrative costs that each insurer's adjusted premium bears to the aggregated adjusted premium of all insurers. As used in this subsection "adjusted premium" means:
     (a) For insurers, other than self-insurers, the direct earned premium for industrial insurance under this title, determined under uniform rules adopted by the commissioner; and
     (b) For self-insurers, the premium that would have been incurred had it insured its liability under this title with the state fund, determined under uniform rules adopted by the commissioner.
     (4) The assessment for each insurer must be calculated in the following manner:
     (a) The assessment for each insurer must be based on adjusted premium for the period immediately preceding the period to which the assessment will apply.
     (b) The periodic assessment must be adjusted after each fiscal year to reflect the actual adjusted premium of each insurer for that fiscal year, as determined by the commissioner.
     (c) Notwithstanding any provision of this section, each insurer may be assessed annually a minimum amount not to exceed five hundred dollars, as determined by the commissioner.
     (d) As of July 1, 2013, assessments must be determined for insurers on a fiscal year basis and collected annually, and (b) of this subsection no longer applies.
     (5) Assessments are payable in full within thirty days of the notice of assessment. If any insurer fails to pay the assessment by the date due, interest may be charged on all past due amounts at a reasonable market rate as may be established from time to time.
     (6) In no event may any assessment made under this section exceed four percent per annum of the total taxable industrial insurance premiums in this state for the year immediately preceding the assessment.
     (7) Any amount resulting from or anticipated for expenditures from the industrial insurance administrative fund that arises from the uncorrected default of a self-insurer must be assessed only upon self-insurers.

NEW SECTION.  Sec. 18   Insurers other than self-insurers may insure the industrial insurance obligations of employers as a group if the following conditions are met:
     (1) All the employers in the group are members of an organization that has been in existence for at least four years;
     (2) The organization exists primarily for a purpose other than that of obtaining or offering industrial insurance coverage or insurance-related services;
     (3) The group must be composed of employers who are substantially similar considering the services or activities performed by the employees of those employers; and
     (4) The formation and operation of the group program in the organization will substantially improve accident prevention and claim management for the employers in the group.

NEW SECTION.  Sec. 19   A new section is added to chapter 51.16 RCW to read as follows:
     It is a default whenever industrial insurance benefits due under this title are not paid as required. Industrial insurance benefits due must be paid as follows:
     (1) When the default results from the failure of an employer to secure the payment of industrial insurance benefits due under this title, industrial insurance benefits must be paid by the commissioner from the industrial insurance administrative fund. In addition to any penalty imposed under RCW 51.48.010, the defaulting employer is liable for payment into the industrial insurance administrative fund the amounts paid therefrom by the commissioner plus market interest on any outstanding balance. For the purpose of enforcing this liability, the commissioner, for the benefit of the industrial insurance administrative fund, is subrogated to all of the rights of the person receiving the industrial insurance benefits;
     (2) When the default results from the failure of a self-insurer to make industrial insurance payments, industrial insurance benefits must be paid by the commissioner from the industrial insurance administrative fund only after the moneys available from the bonds or other security provided under the requirements of this title have been exhausted. The defaulting self-insurer is liable for payment into the industrial insurance administrative fund the amounts paid therefrom by the commissioner plus market interest on any unpaid balance. For the purpose of enforcing this liability, the commissioner, for the benefit of the industrial insurance administrative fund, is subrogated to all of the rights of the person receiving the industrial insurance benefits;
     (3) When the default results from the failure of an insolvent insurer as defined in RCW 48.32.030, to make industrial insurance benefit payments, industrial insurance benefits must be paid by the commissioner from the industrial insurance administrative fund. The Washington insurance guaranty association, as defined by chapter 48.32 RCW, is liable for payment into the industrial insurance administrative fund the amounts paid therefrom by the commissioner in lieu of paying the amounts of industrial insurance benefits directly to the claimant;
     (4) In cases other than those involving insurer insolvency when industrial insurance benefits are not timely paid or where the payment of industrial insurance benefits are delayed as a result of a dispute as to which insurer is responsible for the payment of industrial insurance benefits, the payments must be made from the industrial insurance administrative fund and the commissioner has the right of recovery from the party or parties ultimately deemed responsible for the payment of the industrial insurance benefits; and
     (5) The commissioner may purchase insurance for the industrial insurance administrative fund to pay for defaults under this section. The administrative fund must be used to pay for the insurance, and the liability of insurers is limited to the liabilities not paid by the insurance. The commissioner shall actively pursue legal action to collect payments to the industrial insurance administrative fund as set forth in this section.

NEW SECTION.  Sec. 20   The accident and loss experience records and related data of the division of industrial insurance, for periods before the effective date of this section, must be made available to the licensed rating organization designated by the commissioner under section 14 of this act to assist in making workers' compensation rates. The division of industrial insurance must be reimbursed for the actual reasonable cost of reproduction and delivery of the records and data.

NEW SECTION.  Sec. 21   A new section is added to chapter 51.44 RCW to read as follows:
     There is created in the office of the state treasurer a fund to be known and designated as the self-insurance reserve fund. The portion of the assets and liabilities of the reserve fund previously maintained under RCW 51.44.030 attributable to self-insurers pursuant to RCW 51.44.140 shall be transferred to the self-insurance reserve fund on July 1, 2012.

NEW SECTION.  Sec. 22   A new section is added to chapter 51.28 RCW to read as follows:
     (1) The insurer shall notify the employer of an injured worker:
     (a) Of its decision whether or not to pay industrial insurance benefits for any application for industrial insurance benefits within five days of making a decision;
     (b) Each time the insurer makes a decision to pay industrial insurance benefits pursuant to chapter 51.32 RCW; and
     (c) At intervals not to exceed thirty calendar days of any medical services approved or authorized under chapter 51.36 RCW.
     (2) Each notice under this section must include an explanation, in nontechnical language, of the potential impacts of the decision on the industrial insurance rates of the employer and the employer's right to appeal the decision. The sixty-day requirement to request reconsideration or appeal a decision does not begin until the notice has been sent to the employer.
     (3) Failure of the insurer to provide the notice required by this section prohibits the insurer from reporting against the employer's experience on the benefits provided, but which the employer was not notified about in accordance with this section.

NEW SECTION.  Sec. 23   The exercise of the following functions begin on the effective date of this section:
     (1) Adoption of rules authorized by RCW 43.22.030 and 51.04.020;
     (2) Filings authorized by section 14 of this act;
     (3) Qualifications of insurers to write industrial insurance;
     (4) Provision of statistical information;
     (5) Computation of assessments, if any, payable after the effective date of that section, and based upon estimated expenses of the administrative fund and estimated assessments therefor;
     (6) Section 20 of this act; and
     (7) Appointment of a board of directors and the selection of a manager of the state fund by the board, and permitting the board, manager, and director to do all things necessary to establish the state fund and prepare for the transfer of funds, functions, and personnel as required by Title 51 RCW.

Sec. 24   RCW 48.32.020 and 2005 c 100 s 2 are each amended to read as follows:
     (1) This chapter applies to all kinds of direct insurance, except life, title, surety, disability, credit, mortgage guaranty, ((workers' compensation,)) and ocean marine. ((Workers' compensation as used in this section does not include longshore and harbor workers' compensation act insurance.))
     (2) This chapter does not apply to an obligation of, nor create a duty in, a self-insurer certified under RCW 51.14.030 or the state fund created in section 8 of this act.

Sec. 25   RCW 51.04.020 and 2000 c 5 s 14 are each amended to read as follows:
     The ((director)) commissioner shall:
     (1) Establish and adopt rules governing the administration of this title;
     (2) ((Ascertain and establish the amounts to be paid into and out of the accident fund;
     (3)
)) Regulate the proof of accident and extent thereof, the proof of death and the proof of relationship and the extent of dependency;
     (((4) Supervise the)) (3) Establish and adopt rules governing medical, surgical, and hospital treatment to the intent that it may be in all cases efficient and up to the recognized standard of modern surgery;
     (((5) Issue proper receipts for moneys received and certificates for benefits accrued or accruing;
     (6)
)) (4) Regulate the claims handling practices of all insurers to achieve prompt and fair claims services to injured workers and beneficiaries;
     (5)
Investigate the cause of all serious injuries and report to the governor from time to time any violations or laxity in performance of protective statutes or regulations coming under the observation of the department;
     (((7))) (6) Compile statistics which will afford reliable information upon which to base operations of all divisions under the department;
     (((8))) (7) Make an annual report to the governor of the workings of the ((department)) industrial insurance division;
     (((9))) (8) Be empowered to enter into agreements with the appropriate agencies of other states relating to conflicts of jurisdiction where the contract of employment is in one state and injuries are received in the other state, and insofar as permitted by the Constitution and laws of the United States, to enter into similar agreements with the provinces of Canada; and
     (((10))) (9) Designate a medical director who is licensed under chapter 18.57 or 18.71 RCW.

Sec. 26   RCW 51.04.040 and 1987 c 316 s 1 are each amended to read as follows:
     The director and his or her authorized assistants shall have power to issue subpoenas to enforce the attendance and testimony of witnesses and the production and examination of books, papers, photographs, tapes, and records before the department in connection with any claim made ((to the department, any billing submitted to the department, or the assessment or collection of premiums)) under this title. The superior court shall have the power to enforce any such subpoena by proper proceedings.

Sec. 27   RCW 51.04.070 and 1980 c 14 s 2 are each amended to read as follows:
     A minor shall be deemed sui juris for the purpose of this title, and no other person shall have any cause of action or right to compensation for an injury to such minor worker, except as expressly provided in this title, but in the event of any disability payments becoming due under this title to a minor worker, under the age of eighteen, such disability payments shall be paid to his or her parent, guardian or other person having legal custody of his or her person until he or she reaches the age of eighteen. Upon the submission of written authorization by any such parent, guardian, or other person, any such disability payments may be paid directly to such injured worker under the age of eighteen years. If it is necessary to appoint a legal guardian to receive such disability payments, there shall be paid ((from the accident fund or by the self-insurer, as the case may be,)) by the insurer toward the expenses of such guardianship a sum not to exceed three hundred dollars.

Sec. 28   RCW 51.04.090 and 1977 ex.s. c 350 s 5 are each amended to read as follows:
     If any employer shall be adjudicated to be outside the lawful scope of this title, the title shall not apply to him or her or his or her worker, or if any worker shall be adjudicated to be outside the lawful scope of this title because of remoteness of his or her work from the hazard of his or her employer's work, any such adjudication shall not impair the validity of this title in other respects, and in every such case an accounting in accordance with the justice of the case shall be had of moneys received. If the provisions ((for the creation of the accident fund, or the provisions)) of this title making the compensation to the worker provided in it exclusive of any other remedy on the part of the worker shall be held invalid the entire title shall be thereby invalidated. In other respects an adjudication of invalidity of any part of this title shall not affect the validity of the title as a whole or any other part thereof.

Sec. 29   RCW 51.04.100 and 1977 ex.s. c 350 s 6 are each amended to read as follows:
     If the provisions of this title relative to compensation for injuries to or death of workers become invalid because of any adjudication, or be repealed, the period intervening between the occurrence of an injury or death, not previously compensated for under this title by lump payment or completed monthly payments, and such repeal or the rendition of the final adjudication of invalidity shall not be computed as a part of the time limited by law for the commencement of any action relating to such injury or death: PROVIDED, That such action be commenced within one year after such repeal or adjudication; but in any such action any sum paid out ((of the accident fund)) to the worker on account of injury, to whom the action is prosecuted, shall be taken into account or disposed of as follows: If the defendant employer shall have paid without delinquency ((into the accident fund)) the payment provided by this title, such sums shall be credited upon the recovery as payment thereon, otherwise the sum shall not be so credited but shall be deducted from the sum collected and be paid ((into the said fund)) to the source from which they had been previously disbursed.

Sec. 30   RCW 51.04.105 and 1977 ex.s. c 323 s 25 are each amended to read as follows:
     The obligations of all medical aid contracts approved by the supervisor prior to the repeal of any section of this title pertaining to medical aid contracts shall continue until the expiration of such contracts notwithstanding any such repeal and all provisions of this title pertaining to the operation of medical aid contracts and the control and supervision of such contracts which were in effect at the time of such approval shall, notwithstanding any other provision of law, remain in full force and effect. All medical aid contracts expire June 30, 2012.

Sec. 31   RCW 51.04.130 and 1997 c 109 s 1 are each amended to read as follows:
     The department ((of labor and industries)) upon the request of the secretary of defense of the United States or the secretary of the United States department of energy, may in its discretion approve special insuring agreements providing industrial insurance coverage for workers engaged in the performance of work, either directly or indirectly, for the United States, regarding projects and contracts at the Hanford Nuclear Reservation. The agreements need not conform to the requirements specified in the industrial insurance law of this state if the department finds that the application of the plan will effectively aid the national interest. The department may also approve or direct changes or modifications of the agreements as it deems necessary.
     An agreement entered into under this section remains in full force and effect for as long as the department deems it necessary to accomplish the purposes of this section.

Sec. 32   RCW 51.08.015 and 1977 ex.s. c 350 s 9 are each amended to read as follows:
     Wherever and whenever in any of the provisions of this title relating to any payments to the commissioner by an employer ((or)), worker, or insurer the words "amount" and/or "amounts," "payment" and/or "payments," (("premium" and/or "premiums,")) "contribution" and/or "contributions," and "assessment" and/or "assessments" appear said words shall be construed to mean taxes, which are the money payments by an employer ((or)), worker, or insurer which are required by this title to be made to the state treasury for the ((accident)) industrial insurance administrative fund, ((the medical aid fund,)) the supplemental pension fund, the second injury fund, or any other fund created by this title that is administered by the commissioner.

Sec. 33   RCW 51.12.035 and 2002 c 175 s 39 are each amended to read as follows:
     (1) Volunteers shall be deemed employees and/or workers, as the case may be, for all purposes relating to medical aid benefits under chapter 51.36 RCW.
     A "volunteer" shall mean a person who performs any assigned or authorized duties for the state or any agency thereof, except emergency services workers as described by chapter 38.52 RCW, brought about by one's own free choice, receives no wages, and is registered and accepted as a volunteer by the state or any agency thereof, prior to the occurrence of the injury or the contraction of an occupational disease, for the purpose of engaging in authorized volunteer service: PROVIDED, That such person shall be deemed to be a volunteer although he or she may be granted maintenance and reimbursement for actual expenses necessarily incurred in performing his or her assigned or authorized duties.
     Any and all premiums or assessments due under this title on account of such volunteer service shall be the obligation of and be paid by the state or any agency thereof which has registered and accepted the services of volunteers.
     (2) Except as provided in RCW 51.12.050, volunteers may be deemed employees and/or workers, as the case may be, for all purposes relating to medical aid benefits under chapter 51.36 RCW at the option of any city, county, town, special district, municipal corporation, or political subdivision of any type, or any private nonprofit charitable organization, when any such unit of local government or any such nonprofit organization has given notice of covering all of its volunteers to the ((director)) insurer prior to the occurrence of the injury or contraction of an occupational disease.
     A "volunteer" shall mean a person who performs any assigned or authorized duties for any such unit of local government, or any such organization, except emergency services workers as described by chapter 38.52 RCW, or firefighters covered by chapter 41.24 RCW, brought about by one's own free choice, receives no wages, and is registered and accepted as a volunteer by any such unit of local government, or any such organization which has given such notice, for the purpose of engaging in authorized volunteer services: PROVIDED, That such person shall be deemed to be a volunteer although he or she may be granted maintenance and reimbursement for actual expenses necessarily incurred in performing his or her assigned or authorized duties: PROVIDED FURTHER, That juveniles performing community restitution under chapter 13.40 RCW may not be granted coverage as volunteers under this section.
     Any and all premiums or assessments due under this title on account of such volunteer service for any such unit of local government, or any such organization shall be the obligation of and be paid by such organization which has registered and accepted the services of volunteers and exercised its option to secure the medical aid benefits under chapter 51.36 RCW for such volunteers.

Sec. 34   RCW 51.12.050 and 2001 c 138 s 2 are each amended to read as follows:
     (1) Whenever a public entity engages in any work, or let a contract therefor, in which workers are employed for wages, this title shall be applicable thereto. The employer's payments ((into the accident fund)) of premiums shall be made from the treasury of the public entity. If the work is being done by contract, the payroll of the contractor and the subcontractor shall be the basis of computation and, in the case of contract work consuming less than one year in performance, the required payment ((into the accident fund)) of premiums shall be based upon the total payroll. The contractor and any subcontractor shall be subject to the provisions of this title, and the state for its general fund, the county, municipal corporation, or other taxing district shall be entitled to collect from the contractor the full amount payable ((to the accident fund)) of premiums and the contractor, in turn, shall be entitled to collect from the subcontractor his or her proportionate amount of the payment.
     (2)(a) A public entity may seek partnerships with volunteer groups and businesses to engage in community improvement projects to benefit the public entity. In administering a project, the public entity must:
     (i) Provide prospective donors and participants written notice of the risks and responsibilities to be assumed by the public entity and the donors or participants. A volunteer donating labor on the project must, before beginning work, document in writing that he or she has received the notice and that he or she is donating labor as a result of his or her own free choice; and
     (ii) Pay premiums and assessments required under this title to secure medical aid benefits under chapter 51.36 RCW for volunteers donating labor on the project.
     (b) A contractor or employer donating equipment or materials for use on a community improvement project shall not, for the purposes of this title, be considered the employer of an individual donating labor unless the contractor or employer pays the individual wages for working on the project or makes working on the project a condition of employment. This subsection applies regardless of whether:
     (i) The contractor or employer informs the individual about the community improvement project or encourages the individual to donate labor on the project;
     (ii) The individual uses equipment or materials on the project that are donated by the contractor or the individual's employer; or
     (iii) The individual is granted maintenance or reimbursement for actual expenses necessarily incurred in performing labor for the project.
     (3) Whenever and so long as, by state law, city charter, or municipal ordinance, provision is made for employees or peace officers injured in the course of employment, such employees shall not be entitled to the benefits of this title and shall not be included in the payroll of the municipality under this title: PROVIDED, That whenever any state law, city charter, or municipal ordinance only provides for payment to the employee of the difference between his or her actual wages and that received under this title such employees shall be entitled to the benefits of this title and may be included in the payroll of the municipality.
     (4) The definitions in this subsection apply throughout this section, unless the context clearly requires otherwise.
     (a) "Community improvement project" means a project sponsored by a public entity that uses donated labor, materials, or equipment and includes, but is not limited to, projects to repair, restore, or preserve historic property.
     (b) "Historic property" means real property owned by a public entity including, but not limited to, barns, schools, military structures, and cemeteries.
     (c) "Public entity" means the state, county, any municipal corporation, or other taxing district.

Sec. 35   RCW 51.12.070 and 2004 c 243 s 2 are each amended to read as follows:
     The provisions of this title apply to all work done by contract; the person, firm, or corporation who lets a contract for such work is responsible primarily and directly for all premiums upon the work. The contractor and any subcontractor are subject to the provisions of this title and the person, firm, or corporation letting the contract is entitled to collect from the contractor the full amount payable in premiums and the contractor in turn is entitled to collect from the subcontractor his or her proportionate amount of the payment.
     For the purposes of this section, a contractor registered under chapter 18.27 RCW or licensed under chapter 19.28 RCW is not responsible for any premiums upon the work of any subcontractor if:
     (1) The subcontractor is currently engaging in a business which is registered under chapter 18.27 RCW or licensed under chapter 19.28 RCW;
     (2) The subcontractor has a principal place of business which would be eligible for a business deduction for internal revenue service tax purposes other than that furnished by the contractor for which the business has contracted to furnish services;
     (3) The subcontractor maintains a separate set of books or records that reflect all items of income and expenses of the business;
     (4) The subcontractor has contracted to perform:
     (a) The work of a contractor as defined in RCW 18.27.010; or
     (b) The work of installing wires or equipment to convey electric current or installing apparatus to be operated by such current as it pertains to the electrical industry as described in chapter 19.28 RCW; and
     (5) The subcontractor has an industrial insurance account in good standing with ((the department or is a self-insurer)) an insurer. For the purposes of this subsection, a contractor may consider a subcontractor's account to be in good standing if, within a year prior to letting the contract or master service agreement, and at least once a year thereafter, the contractor has verified with the department that the account is in good standing and the contractor has not received written notice from the department that the subcontractor's account status has changed. Acceptable documentation of verification includes a department document which includes an issued date or a dated printout of information from the department's internet web site showing a subcontractor's good standing. The department shall develop an approach to provide contractors with verification of the date of inquiries validating that the subcontractor's account is in good standing.
     It is unlawful for any county, city, or town to issue a construction building permit to any person who has not submitted ((to the department an estimate of payroll and paid premium thereon as provided by chapter 51.16 RCW of this title or proof of qualification as a self-insurer)) proof that the person has secured the payment of industrial insurance benefits under this title.

Sec. 36   RCW 51.12.110 and 1991 c 246 s 5 are each amended to read as follows:
     Any employer who has in his or her employment any person or persons excluded from mandatory coverage pursuant to RCW 51.12.020 may file notice in writing with the director and the insurer, on such forms as the department may provide, of his or her election to make such persons otherwise excluded subject to this title. The employer shall forthwith display in a conspicuous manner about his or her works, and in a sufficient number of places to reasonably inform his or her workers of the fact, printed notices furnished by the ((department)) insurer stating that he or she has so elected. ((Said)) The election shall become effective upon the filing of ((said)) notice in writing. The employer and his or her workers shall be subject to all the provisions of this title and entitled to all of the benefits thereof: PROVIDED, That those who have heretofore complied with the foregoing conditions and are carried and considered ((by the department)) as within the purview of this title shall be deemed and considered as having fully complied with its terms and shall be continued ((by the department)) as entitled to all of the benefits and subject to all of the liabilities without other or further action. Any employer who has complied with this section may withdraw his or her acceptance of liability under this title by filing written notice with the director and the insurer of the withdrawal of his or her acceptance. Such withdrawal shall become effective thirty days after the filing of such notice or on the date of the termination of the security for payment of compensation, whichever last occurs. The employer shall, at least thirty days before the effective date of the withdrawal, post reasonable notice of such withdrawal where the affected worker or workers work and shall otherwise notify personally the affected workers. Withdrawal of acceptance of this title shall not affect the liability of the ((department or self-))insurer for compensation for any injury occurring during the period of acceptance.
     The ((department)) insurer shall have the power to cancel the elective adoption coverage if any required payments or reports have not been made. Cancellation ((by the department)) shall be no later than thirty days from the date of notice in writing ((by the department)) advising of cancellation being made.

Sec. 37   RCW 51.12.120 and 2008 c 88 s 1 are each amended to read as follows:
     (1) If a worker, while working outside the territorial limits of this state, suffers an injury on account of which he or she, or his or her beneficiaries, would have been entitled to compensation under this title had the injury occurred within this state, the worker, or his or her beneficiaries, shall be entitled to compensation under this title if at the time of the injury:
     (a) His or her employment is principally localized in this state; or
     (b) He or she is working under a contract of hire made in this state for employment not principally localized in any state; or
     (c) He or she is working under a contract of hire made in this state for employment principally localized in another state whose workers' compensation law is not applicable to his or her employer; or
     (d) He or she is working under a contract of hire made in this state for employment outside the United States and Canada.
     (2) The payment or award of compensation or other recoveries, including settlement proceeds, under the workers' compensation law of another state, territory, province, or foreign nation to a worker or his or her beneficiaries otherwise entitled on account of such injury to compensation under this title shall not be a bar to a claim for compensation under this title if that claim under this title is timely filed. If compensation is paid or awarded under this title, the total amount of compensation or other recoveries, including settlement proceeds, paid or awarded the worker or beneficiary under such other workers' compensation law shall be credited against the compensation due the worker or beneficiary under this title.
     (3)(a) An employer not domiciled in this state who is employing workers in this state in work for which the employer must be registered under chapter 18.27 RCW or licensed under chapter 19.28 RCW, or prequalified under RCW 47.28.070, must secure the payment of ((compensation)) industrial insurance benefits under this title ((by:
     (i) Insuring the employer's workers' compensation obligation under this title with the department;
     (ii) Being qualified as a self-insurer under this title; or
     (iii)
)). For employers domiciled in a state or province of Canada subject to an agreement entered into under subsection (7) of this section, as permitted by the agreement, filing with the department a certificate of coverage issued by the agency that administers the workers' compensation law in the employer's state or province of domicile certifying that the employer has secured the payment of compensation under the other state's or province's workers' compensation law.
     (b) The department shall adopt rules to implement this subsection.
     (4) If a worker or beneficiary is entitled to compensation under this title by reason of an injury sustained in this state while in the employ of an employer who is domiciled in another state or province of Canada and the employer:
     (a) Is not subject to subsection (3) of this section and has ((neither opened an account with the department nor qualified as a self-insurer)) not secured the payment of industrial insurance benefits under this title, the employer or his or her insurance carrier shall file with the director a certificate issued by the agency that administers the workers' compensation law in the state of the employer's domicile, certifying that the employer has secured the payment of compensation under the workers' compensation law of the other state and that with respect to the injury the worker or beneficiary is entitled to the benefits provided under the other state's law.
     (b) Has filed a certificate under subsection (3)(a)(((iii))) of this section or (a) of this subsection (4):
     (i) The filing of the certificate constitutes appointment by the employer or his or her insurance carrier of the director as its agent for acceptance of the service of process in any proceeding brought by any claimant to enforce rights under this title;
     (ii) The director shall send to such employer or his or her insurance carrier, by registered or certified mail to the address shown on such certificate, a true copy of any notice of claim or other process served on the director by the claimant in any proceeding brought to enforce rights under this title;
     (iii) If the employer is a self-insurer under the workers' compensation law of the other state or province of Canada, the employer shall, upon submission of evidence or security, satisfactory to the director, of his or her ability to meet his or her liability to the claimant under this title, be deemed to be a qualified self-insurer under this title; and
     (iv) If the employer's liability under the workers' compensation law of the other state or province of Canada is insured:
     (A) The employer's carrier, as to such claimant only, shall be deemed to be subject to this title. However, unless the insurer's contract with the employer requires the insurer to pay an amount equivalent to the compensation benefits provided by this title, the insurer's liability for compensation shall not exceed the insurer's liability under the workers' compensation law of the other state or province; and
     (B) If the total amount for which the employer's insurer is liable under (b)(iv)(A) of this subsection is less than the total of the compensation to which the claimant is entitled under this title, the director may require the employer to file security satisfactory to the director to secure the payment of compensation under this title.
     (c) If subject to subsection (3) of this section, has not complied with subsection (3) of this section or, if not subject to subsection (3) of this section, has neither qualified as a self-insurer nor secured insurance coverage under the workers' compensation law of another state or province of Canada, the claimant shall be paid compensation by the department from the industrial insurance administrative fund and the employer shall have the same rights and obligations, and is subject to the same penalties, as other employers subject to this title.
     (5) As used in this section:
     (a) A person's employment is principally localized in this or another state when: (i) His or her employer has a place of business in this or the other state and he or she regularly works at or from the place of business; or (ii) if (a)(i) of this subsection is not applicable, he or she is domiciled in and spends a substantial part of his or her working time in the service of his or her employer in this or the other state;
     (b) "Workers' compensation law" includes "occupational disease law" for the purposes of this section.
     (6) A worker whose duties require him or her to travel regularly in the service of his or her employer in this and one or more other states may agree in writing with his or her employer that his or her employment is principally localized in this or another state, and, unless the other state refuses jurisdiction, the agreement shall govern as to any injury occurring after the effective date of the agreement.
     (7) The director is authorized to enter into agreements with the appropriate agencies of other states and provinces of Canada that administer their workers' compensation law with respect to conflicts of jurisdiction and the assumption of jurisdiction in cases where the contract of employment arises in one state or province and the injury occurs in another. If the other state's or province's law requires Washington employers to secure the payment of compensation under the other state's or province's workers' compensation laws for work performed in that state or province, then employers domiciled in that state or province must purchase compensation covering their workers engaged in that work in this state under this state's industrial insurance law. When an agreement under this subsection has been executed and adopted as a rule of the department under chapter 34.05 RCW, it binds all employers and workers subject to this title and the jurisdiction of this title is governed by this rule.
     (8) Washington employers who are not self-insured under chapter 51.14 RCW shall obtain workers' compensation coverage ((from the state fund)) for temporary and incidental work performed on jobs or at jobsites in another state by their Washington workers. The department is authorized to adopt rules governing premium liability and reporting requirements for hours of work in excess of temporary and incidental as defined in this chapter.
     (9) "Temporary and incidental" means work performed by Washington employers on jobs or at jobsites in another state for thirty or fewer consecutive or nonconsecutive full or partial days within a calendar year. Temporary and incidental days are considered on a per state basis.
     (10) By December 1, 2011, the department shall report to the workers' compensation advisory committee on the effect of this section on the revenue and costs to the state fund.

Sec. 38   RCW 51.12.140 and 1977 ex.s. c 113 s 1 are each amended to read as follows:
     (1) As used in this section:
     (a) "Municipal corporation" means any city, town, or county authorized by law to maintain and operate a law enforcement department;
     (b) "Law enforcement department" means any regularly organized police department, sheriff's department, department of public safety, or other similar organization which has as its primary purpose the enforcement of state or local penal laws and the preservation of public order, which consists wholly of volunteer law enforcement officers or a combination of volunteer and paid law enforcement officers, and which is duly organized and maintained by a municipal corporation;
     (c) "Volunteer law enforcement officer" means a person who is a member of a law enforcement department and who (i) performs assigned or authorized duties for the law enforcement department by his or her own free choice; (ii) serves in a position that is not basically clerical or secretarial in nature; (iii) is registered and accepted as a volunteer by the law enforcement department; and (iv) receives no monetary remuneration other than maintenance and reimbursement for actual expenses necessarily incurred in performing assigned duties; and
     (d) "Performance of duty" includes any work in and about the volunteer law enforcement officers' quarters, police station, or any other place under the direction or general orders of the officer having the authority to order a volunteer law enforcement officer to perform the work; providing law enforcement assistance; patrol; drill; and any work of an emergency nature performed in accordance with the rules of the law enforcement department.
     (2) Any municipal corporation maintaining and operating a law enforcement department may elect to provide coverage under this title for all of its volunteer law enforcement officers for death or disability occurring in the performance of their duties as volunteer law enforcement officers. Any municipal corporation electing to provide the coverage shall file a written notice of coverage with the director.
     (3) Coverage under this section shall be for all the applicable death, disability, and medical aid benefits of this title and shall be effective only for injuries which occur and occupational diseases which are contracted after the notice of coverage has been filed with the director.
     Nothing in this subsection shall be construed to prohibit a municipal corporation from covering its volunteer law enforcement officers and other volunteers under RCW 51.12.035(2), as now or hereafter amended, for medical aid benefits only.
     (4) Volunteer law enforcement officers for whom municipal corporations have given notice of coverage under this section shall be deemed workers or employees, as the case may be, and the performance of their duties shall be deemed employment or in the course of employment, as the case may be, for all purposes of this title except where expressly excluded or where the context clearly requires otherwise.
     (5) All premiums, assessments, contributions, and penalties due under this title because coverage is provided under this section shall be the obligation of and be paid by the municipal corporation giving the notice of coverage to the director.
     (6) Any municipal corporation electing coverage under this section shall maintain a time log in which the number of hours worked by each of its volunteer law enforcement officers is recorded. The log shall be made available for inspection upon the request of any authorized employee of the department or the insurer of the municipal corporation.
     (7) Any municipal corporation electing coverage under this section may withdraw the coverage by filing a written notice of the withdrawal with the ((director)) insurer. The withdrawal shall become effective thirty days after filing the notice or on the date of the termination of the security for payment of compensation, whichever occurs later. At least thirty days before the effective date of the withdrawal, the municipal corporation shall notify each of its volunteer law enforcement officers of the withdrawal. Withdrawal of coverage under this section shall not affect the liability of the ((department or self-))insurer for compensation for any injury occurring during the period in which coverage was provided.

Sec. 39   RCW 51.12.170 and 1994 c 246 s 1 are each amended to read as follows:
     (1) An employer covered under this title may elect to include student volunteers as employees or workers for all purposes relating to medical aid benefits under chapter 51.36 RCW. The employer shall give notice of its intent to cover all of its student volunteers to the ((director)) insurer prior to the occurrence of the injury or contraction of an occupational disease.
     (2) A student volunteer is an enrolled student in a public school as defined in RCW 28A.150.010 who is participating as a volunteer under a program authorized by the public school. The student volunteer shall perform duties for the employer without wages. The student volunteer shall be deemed to be a volunteer even if the student is granted maintenance and reimbursement for actual expenses necessarily incurred in performing his or her assigned or authorized duties. A person who earns wages for the services performed is not a student volunteer.
     (3) Any and all premiums or assessments due under this title on account of service by a student volunteer shall be paid by the employer who has registered and accepted the services of volunteers and has exercised its option to secure the medical aid benefits under chapter 51.36 RCW for the student volunteers.

Sec. 40   RCW 51.14.010 and 1971 ex.s. c 289 s 26 are each amended to read as follows:
     Every employer under this title shall secure the payment of compensation under this title by:
     (1) Insuring and keeping insured the payment of such industrial insurance benefits with the state fund; ((or))
     (2) Qualifying as a self-insurer under this title; or
     (3) Insuring and keeping insured the payment of compensation with any private insurer meeting the requirements of section 15 of this act
.

Sec. 41   RCW 51.14.050 and 1971 ex.s. c 289 s 30 are each amended to read as follows:
     (1) Any employer may at any time terminate his or her status as a self-insurer by giving the director written notice stating when, not less than thirty days thereafter, such termination shall be effective, provided such termination shall not be effective until the employer either shall have ceased to be an employer or shall have filed with the director ((for state industrial insurance coverage)) proof that he or she has otherwise secured the payment of industrial insurance benefits under this title.
     (2) An employer who ceases to be a self-insurer, and who so files with the director, must maintain money, securities, or surety bonds deemed sufficient in the director's discretion to cover the entire liability of such employer for injuries or occupational diseases to his or her employees which occurred during the period of self-insurance: PROVIDED, That the ((director)) employer's new insurer may agree ((for the medical aid and accident funds)) to assume the obligation of such claims, in whole or in part, and shall adjust the employer's premium rate without approval by the commissioner to provide for the payment of such obligations on behalf of the employer.

Sec. 42   RCW 51.14.100 and 1971 ex.s. c 289 s 34 are each amended to read as follows:
     (1) Every employer subject to the provisions of this title shall post and keep posted in a conspicuous place or places in and about his or her place or places of business a reasonable number of typewritten or printed notices of compliance substantially identical to a form prescribed by the director, stating that such employer is subject to the provisions of this title. Such notice shall advise ((whether the employer is self-insured or has insured with the department)) the manner in which the employer has secured the payment of compensation, and shall designate a person or persons on the premises to whom report of injury shall be made and the name, telephone number, and exact location within the state where application for compensation should be made.
     (2) Any employer who has failed to ((open an account with the department or qualify as a self-insurer)) secure payment of industrial insurance benefits shall not post or permit to be posted on or about his or her place of business or premises any notice of compliance with this title and any willful violation of this subsection by any officer or supervisory employee of an employer shall be a misdemeanor.

Sec. 43   RCW 51.14.300 and 2007 c 281 s 1 are each amended to read as follows:
     The office of the ombudsman for workers ((of industrial insurance self-insured employers)) is created. The ombudsman shall be appointed by the governor and report directly to the director of the department. The office of the ombudsman may be openly and competitively contracted by the governor in accordance with chapter 39.29 RCW but shall not be physically housed within the industrial insurance division.

Sec. 44   RCW 51.14.340 and 2007 c 281 s 5 are each amended to read as follows:
     The office of the ombudsman shall have the following powers and duties:
     (1) To act as an advocate for injured workers ((of self-insured employers));
     (2) To offer and provide information on industrial insurance as appropriate to workers ((of self-insured employers));
     (3) To identify, investigate, and facilitate resolution of industrial insurance complaints from workers ((of self-insured employers));
     (4) To maintain a statewide toll-free telephone number for the receipt of complaints and inquiries; and
     (5) To refer complaints to the department when appropriate.

Sec. 45   RCW 51.14.350 and 2007 c 281 s 6 are each amended to read as follows:
     (1) The office of the ombudsman shall develop referral procedures for complaints by workers ((of self-insured employers)). The department shall act as quickly as possible on any complaint referred to them by the office of the ombudsman.
     (2) The department shall respond to any complaint against ((a self-insured employer)) an insurer referred to it by the office of the ombudsman and shall forward the office of the ombudsman a summary of the results of the investigation and action proposed or taken.

Sec. 46   RCW 51.14.360 and 2007 c 281 s 7 are each amended to read as follows:
     (1) No ombudsman is liable for good faith performance of responsibilities under this chapter.
     (2) No discriminatory, disciplinary, or retaliatory action may be taken against any employee ((of a self-insured employer)) for any communication made, or information given or disclosed, to assist the ombudsman in carrying out its duties and responsibilities, unless the same was done maliciously. This subsection is not intended to infringe on the rights of the employer to supervise, discipline, or terminate an employee for other reasons.
     (3) All communications by the ombudsman, if reasonably related to the requirements of his or her responsibilities under this chapter and done in good faith, are privileged and confidential, and this shall serve as a defense to any action in libel or slander.
     (4) Representatives of the office of the ombudsman are exempt from being required to testify as to any privileged or confidential matters except as the court may deem necessary to enforce this chapter.

Sec. 47   RCW 51.14.380 and 2007 c 281 s 9 are each amended to read as follows:
     The ombudsman shall integrate into existing posters and brochures information explaining the ombudsman program. Both the posters and the brochures shall contain the ombudsman's toll-free telephone number. Every ((self-insured)) employer must place a poster in an area where all workers have access to it. The ((self-insured)) employer must provide a brochure to all injured workers at the time the employer is notified of the worker's injury.

Sec. 48   RCW 51.14.390 and 2007 c 281 s 10 are each amended to read as follows:
     (1) To provide start-up funding for the office of the ombudsman, the department shall impose a one-time assessment on all ((self-insurers)) insurers. The amount of the assessment shall be determined by the department and shall not exceed the amount needed to pay the start-up costs.
     (2) Ongoing funding for the office of the ombudsman shall be obtained as part of an annual administrative assessment ((of self-insurers under RCW 51.44.150. This assessment shall be proportionately based on the number of claims for each self-insurer during the past year)).

Sec. 49   RCW 51.14.400 and 2007 c 281 s 12 are each amended to read as follows:
     (1) The ombudsman shall provide the governor with an annual report that includes the following:
     (a) A description of the issues addressed during the past year and a very brief description of case scenarios in a form that does not compromise confidentiality;
     (b) An accounting of the monitoring activities by the ombudsman; and
     (c) An identification of the deficiencies in the industrial insurance system ((related to self-insurers)), if any, and recommendations for remedial action in policy or practice.
     (2) The first annual report shall be due on or before October 1, 2008. Subsequent reports shall be due on or before October 1st.

Sec. 50   RCW 51.16.070 and 2008 c 120 s 5 are each amended to read as follows:
     (1)(a) Every employer shall keep at his or her place of business a record of his or her employment from which the information needed by the department for the administration of this title may be obtained and such record shall at all times be open to the inspection of the director, ((supervisor of industrial insurance, or the traveling auditors, agents,)) or assistants of the department, as provided in RCW 51.48.040.
     (b) An employer who contracts with another person or entity for work subject to chapter 18.27 or 19.28 RCW shall obtain and preserve a record of the unified business identifier account number for and the compensation paid to the person or entity performing the work. Failure to obtain or maintain the record is subject to RCW 39.06.010 and to a penalty under RCW 51.48.030.
     (2) Information obtained from employing unit records under the provisions of this title shall be deemed confidential and shall not be open to public inspection (other than to public employees, the insurer, and the licensed rating organization in the performance of their official duties), but any interested party shall be supplied with information from such records to the extent necessary for the proper presentation of the case in question: PROVIDED, That any employing unit may authorize inspection of its records by written consent.

Sec. 51   RCW 51.16.120 and 2004 c 258 s 1 are each amended to read as follows:
     (1) Whenever a worker has a previous bodily disability from any previous injury or disease, whether known or unknown to the employer, and shall suffer a further disability from injury or occupational disease in employment covered by this title and become totally and permanently disabled from the combined effects thereof or die when death was substantially accelerated by the combined effects thereof, then the experience record of an insured employer ((insured with the state fund)) at the time of ((said)) the further injury or disease shall be charged and a self-insured employer shall pay directly into the ((reserve)) second injury fund only the accident cost which would have resulted solely from ((said)) the further injury or disease, had there been no preexisting disability, and which accident cost shall be based upon an evaluation of the disability by medical experts. The difference between the charge thus assessed to such employer at the time of ((said)) the further injury or disease and the total cost of the pension reserve shall be assessed against the second injury fund. The department shall pass upon the application of this section in all cases where benefits are paid for total permanent disability or death and issue an order thereon appealable by the employer or insurer. Pending outcome of such appeal the transfer or payment shall be made as required by such order.
     (2) ((The department shall,)) In cases of claims of workers sustaining injuries or occupational diseases in the employ of ((state fund)) insured employers, ((recompute)) the experience record of such employers shall be recomputed when the claims of workers injured in their employ have been found to qualify for payments from the second injury fund after the regular time for computation of such experience records and the ((department may)) insurer shall make appropriate adjustments in such cases including cash refunds or credits to such employers.
     (3) To encourage employment of injured workers who are not reemployed by the employer at the time of injury, the department may adopt rules providing for the reduction or elimination of premiums or assessments from subsequent employers of such workers and may also adopt rules for the reduction or elimination of charges against such employers in the event of further injury to such workers in their employ.
     (4) To encourage employment of injured workers who have a developmental disability as defined in RCW 71A.10.020, the department may adopt rules providing for the reduction or elimination of premiums or assessments from employers of such workers and may also adopt rules for the reduction or elimination of charges against their employers in the event of further injury to such workers in their employ.

Sec. 52   RCW 51.16.140 and 1989 c 385 s 3 are each amended to read as follows:
     (((1) Every employer who is not a self-insurer shall deduct from the pay of each of his or her workers one-half of the amount he or she is required to pay, for medical benefits within each risk classification. Such amount shall be periodically determined by the director and reported by him or her to all employers under this title: PROVIDED, That the state governmental unit shall pay the entire amount into the medical aid fund for volunteers, as defined in RCW 51.12.035, and the state apprenticeship council shall pay the entire amount into the medical aid fund for registered apprentices or trainees, for the purposes of RCW 51.12.130. The deduction under this section is not authorized for premiums assessed under RCW 51.16.210.
     (2)
)) It shall be unlawful for the employer, unless specifically authorized by this title, to deduct or obtain any part of the premium or other costs required to be by him or her paid from the wages or earnings of any of his or her workers, and the making of or attempt to make any such deduction shall be a gross misdemeanor.

Sec. 53   RCW 51.16.150 and 1986 c 9 s 4 are each amended to read as follows:
     If any employer or insurer shall default in any payment to any fund administered by the director, the sum due may be collected by action at law in the name of the state as plaintiff, and such right of action shall be in addition to any other right of action or remedy. If such default occurs after demand, the director may require from the defaulting employer or insurer a bond to the state for the benefit of any fund, with surety to the director's satisfaction, in the penalty of double the amount of the estimated payments which will be required from such employer or insurer into the ((said)) funds for and during the ensuing one year, together with any penalty or penalties incurred. In case of refusal or failure after written demand personally served to furnish such bond, the state shall be entitled to an injunction restraining the delinquent from prosecuting an occupation or work until such bond is furnished, and until all delinquent ((premiums)) payments, penalties, interest and costs are paid, conditioned for the prompt and punctual making of all payments into ((said)) the funds during such periods, and any sale, transfer, or lease attempted to be made by such delinquent during the period of any of the defaults herein mentioned, of his or her works, plant, or lease thereto, shall be invalid until all past delinquencies are made good, and such bond furnished.

Sec. 54   RCW 51.16.220 and 2005 c 422 s 1 are each amended to read as follows:
     (1) When a worker of a nongovernment employer is injured or develops an occupational disease due to an exposure while assisting in the life and rescue phase of an emergency, in response to a request for assistance from a state or local government entity, including fire service or law enforcement, the cost of benefits shall be reimbursed from the disaster response account, RCW 38.52.105, to the appropriate ((workers' compensation fund, or to the self-insured employer, as the case may be. The cost of such injuries or occupational diseases shall not be charged to the experience record of a state fund employer)) insurer. An employer's premium shall not be affected by such a claim.
     (2) For the purposes of this section, "life and rescue phase" means the first seventy-two hours after the occurrence of a natural or man-made disaster in which a state or municipal entity, including fire service or law enforcement, acknowledges or declares such a disaster and requests assistance from the private sector in locating and rescuing survivors. The initial life and rescue phase may be extended for a finite period of time by declaration of the state or municipal entity requesting assistance.

Sec. 55   RCW 51.24.030 and 1995 c 199 s 2 are each amended to read as follows:
     (1) If a third person, not in a worker's same employ, is or may become liable to pay damages on account of a worker's injury for which benefits and compensation are provided under this title, the injured worker or beneficiary may elect to seek damages from the third person.
     (2) In every action brought under this section, the plaintiff shall give notice to the ((department or self-insurer)) insurer when the action is filed. The ((department or self-insurer)) insurer may file a notice of statutory interest in recovery. When such notice has been filed by the ((department or self-insurer)) insurer, the parties shall thereafter serve copies of all notices, motions, pleadings, and other process on the ((department or self-insurer)) insurer. The ((department or self-insurer)) insurer may then intervene as a party in the action to protect its statutory interest in recovery.
     (3) For the purposes of this chapter, "injury" shall include any physical or mental condition, disease, ailment or loss, including death, for which compensation and benefits are paid or payable under this title.
     (4) Damages recoverable by a worker or beneficiary pursuant to the underinsured motorist coverage of an insurance policy shall be subject to this chapter only if the owner of the policy is the employer of the injured worker.
     (5) For the purposes of this chapter, "recovery" includes all damages except loss of consortium.

Sec. 56   RCW 51.24.050 and 1995 c 199 s 3 are each amended to read as follows:
     (1) An election not to proceed against the third person operates as an assignment of the cause of action to the ((department or self-insurer)) insurer, which may prosecute or compromise the action in its discretion in the name of the injured worker, beneficiary or legal representative.
     (2) If an injury to a worker results in the worker's death, the ((department or self-insurer)) insurer to which the cause of action has been assigned may petition a court for the appointment of a special personal representative for the limited purpose of maintaining an action under this chapter and chapter 4.20 RCW.
     (3) If a beneficiary is a minor child, an election not to proceed against a third person on such beneficiary's cause of action may be exercised by the beneficiary's legal custodian or guardian.
     (4) Any recovery made by the ((department or self-insurer)) insurer shall be distributed as follows:
     (a) The ((department or self-insurer)) insurer shall be paid the expenses incurred in making the recovery including reasonable costs of legal services;
     (b) The injured worker or beneficiary shall be paid twenty-five percent of the balance of the recovery made, which shall not be subject to subsection (5) of this section: PROVIDED, That in the event of a compromise and settlement by the parties, the injured worker or beneficiary may agree to a sum less than twenty-five percent;
     (c) The ((department and/or self-insurer)) insurer shall be paid the compensation and benefits paid to or on behalf of the injured worker or beneficiary by the ((department and/or self-insurer)) insurer; and
     (d) The injured worker or beneficiary shall be paid any remaining balance.
     (5) Thereafter no payment shall be made to or on behalf of a worker or beneficiary by the ((department and/or self-insurer)) insurer for such injury until the amount of any further compensation and benefits shall equal any such remaining balance. Thereafter, such benefits shall be paid by the ((department and/or self-insurer)) insurer to or on behalf of the worker or beneficiary as though no recovery had been made from a third person.
     (6) When the cause of action has been assigned to the self-insurer and compensation and benefits have been paid and/or are payable from state funds for the same injury:
     (a) The prosecution of such cause of action shall also be for the benefit of the department to the extent of compensation and benefits paid and payable from state funds;
     (b) Any compromise or settlement of such cause of action which results in less than the entitlement under this title is void unless made with the written approval of the department;
     (c) The department shall be reimbursed for compensation and benefits paid from state funds;
     (d) The department shall bear its proportionate share of the costs and reasonable attorneys' fees incurred by the self-insurer in obtaining the award or settlement; and
     (e) Any remaining balance under subsection (4)(d) of this section shall be applied, under subsection (5) of this section, to reduce the obligations of the ((department and self-insurer)) insurer to pay further compensation and benefits in proportion to which the obligations of each bear to the remaining entitlement of the worker or beneficiary.

Sec. 57   RCW 51.24.060 and 2001 c 146 s 9 are each amended to read as follows:
     (1) If the injured worker or beneficiary elects to seek damages from the third person, any recovery made shall be distributed as follows:
     (a) The costs and reasonable attorneys' fees shall be paid proportionately by the injured worker or beneficiary and the ((department and/or self-insurer)) insurer: PROVIDED, That the ((department and/or self-insurer)) insurer may require court approval of costs and attorneys' fees or may petition a court for determination of the reasonableness of costs and attorneys' fees;
     (b) The injured worker or beneficiary shall be paid twenty-five percent of the balance of the award: PROVIDED, That in the event of a compromise and settlement by the parties, the injured worker or beneficiary may agree to a sum less than twenty-five percent;
     (c) The ((department and/or self-insurer)) insurer shall be paid the balance of the recovery made, but only to the extent necessary to reimburse the ((department and/or self-insurer)) insurer for benefits paid;
     (i) The ((department and/or self-insurer)) insurer shall bear its proportionate share of the costs and reasonable attorneys' fees incurred by the worker or beneficiary to the extent of the benefits paid under this title: PROVIDED, That the ((department's and/or self-insurer's)) insurer's proportionate share shall not exceed one hundred percent of the costs and reasonable attorneys' fees;
     (ii) The ((department's and/or self-insurer's)) insurer's proportionate share of the costs and reasonable attorneys' fees shall be determined by dividing the gross recovery amount into the benefits paid amount and multiplying this percentage times the costs and reasonable attorneys' fees incurred by the worker or beneficiary;
     (iii) The ((department's and/or self-insurer's)) insurer's reimbursement share shall be determined by subtracting their proportionate share of the costs and reasonable attorneys' fees from the benefits paid amount;
     (d) Any remaining balance shall be paid to the injured worker or beneficiary; and
     (e) Thereafter no payment shall be made to or on behalf of a worker or beneficiary by the ((department and/or self-insurer)) insurer for such injury until the amount of any further compensation and benefits shall equal any such remaining balance minus the ((department's and/or self-insurer's)) insurer's proportionate share of the costs and reasonable attorneys' fees in regards to the remaining balance. This proportionate share shall be determined by dividing the gross recovery amount into the remaining balance amount and multiplying this percentage times the costs and reasonable attorneys' fees incurred by the worker or beneficiary. Thereafter, such benefits shall be paid by the ((department and/or self-insurer)) insurer to or on behalf of the worker or beneficiary as though no recovery had been made from a third person.
     (2) The recovery made shall be subject to a lien by the ((department and/or self-insurer)) insurer for its share under this section.
     (3) The ((department or self-insurer)) insurer has sole discretion to compromise the amount of its lien. In deciding whether or to what extent to compromise its lien, the ((department or self-insurer)) insurer shall consider at least the following:
     (a) The likelihood of collection of the award or settlement as may be affected by insurance coverage, solvency, or other factors relating to the third person;
     (b) Factual and legal issues of liability as between the injured worker or beneficiary and the third person. Such issues include but are not limited to possible contributory negligence and novel theories of liability; and
     (c) Problems of proof faced in obtaining the award or settlement.
     (4) In an action under this section, the self-insurer may act on behalf and for the benefit of the department to the extent of any compensation and benefits paid or payable from state funds.
     (5) It shall be the duty of the person to whom any recovery is paid before distribution under this section to advise the ((department or self-insurer)) insurer of the fact and amount of such recovery, the costs and reasonable attorneys' fees associated with the recovery, and to distribute the recovery in compliance with this section.
     (((6) The distribution of any recovery made by award or settlement of the third party action shall be confirmed by department order, served by registered or certified mail, and shall be subject to chapter 51.52 RCW. In the event the order of distribution becomes final under chapter 51.52 RCW, the director or the director's designee may file with the clerk of any county within the state a warrant in the amount of the sum representing the unpaid lien plus interest accruing from the date the order became final. The clerk of the county in which the warrant is filed shall immediately designate a superior court cause number for such warrant and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of such worker or beneficiary mentioned in the warrant, the amount of the unpaid lien plus interest accrued and the date when the warrant was filed. The amount of such warrant as docketed shall become a lien upon the title to and interest in all real and personal property of the injured worker or beneficiary against whom the warrant is issued, the same as a judgment in a civil case docketed in the office of such clerk. The sheriff shall then proceed in the same manner and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgment in the superior court. Such warrant so docketed shall be sufficient to support the issuance of writs of garnishment in favor of the department in the manner provided by law in the case of judgment, wholly or partially unsatisfied. The clerk of the court shall be entitled to a filing fee under RCW 36.18.012(10), which shall be added to the amount of the warrant. A copy of such warrant shall be mailed to the injured worker or beneficiary within three days of filing with the clerk.
     (7) The director, or the director's designee, may issue to any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state, a notice and order to withhold and deliver property of any kind if he or she has reason to believe that there is in the possession of such person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state, property which is due, owing, or belonging to any worker or beneficiary upon whom a warrant has been served by the department for payments due to the state fund. The notice and order to withhold and deliver shall be served by the sheriff of the county or by the sheriff's deputy; by certified mail, return receipt requested; or by any authorized representatives of the director. Any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state upon whom service has been made shall answer the notice within twenty days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of in the notice and order to withhold and deliver. In the event there is in the possession of the party named and served with such notice and order, any property which may be subject to the claim of the department, such property shall be delivered forthwith to the director or the director's authorized representative upon demand. If the party served and named in the notice and order fails to answer the notice and order within the time prescribed in this section, the court may, after the time to answer such order has expired, render judgment by default against the party named in the notice for the full amount claimed by the director in the notice together with costs. In the event that a notice to withhold and deliver is served upon an employer and the property found to be subject thereto is wages, the employer may assert in the answer to all exemptions provided for by chapter 6.27 RCW to which the wage earner may be entitled.
))

Sec. 58   RCW 51.24.070 and 1984 c 218 s 6 are each amended to read as follows:
     (1) The ((department or self-insurer)) insurer may require the injured worker or beneficiary to exercise the right of election under this chapter by serving a written demand by registered mail, certified mail, or personal service on the worker or beneficiary.
     (2) Unless an election is made within sixty days of the receipt of the demand, and unless an action is instituted or settled within the time granted by the ((department or self-insurer)) insurer, the injured worker or beneficiary is deemed to have assigned the action to the ((department or self-insurer)) insurer. The ((department or self-insurer)) insurer shall allow the worker or beneficiary at least ninety days from the election to institute or settle the action. When a beneficiary is a minor child the demand shall be served upon the legal custodian or guardian of such beneficiary.
     (3) If an action which has been filed is not diligently prosecuted, the ((department or self-insurer)) insurer may petition the court in which the action is pending for an order assigning the cause of action to the ((department or self-insurer)) insurer. Upon a sufficient showing of a lack of diligent prosecution the court in its discretion may issue the order.
     (4) If the ((department or self-insurer)) insurer has taken an assignment of the third party cause of action under subsection (2) of this section, the injured worker or beneficiary may, at the discretion of the ((department or self-insurer)) insurer, exercise a right of reelection and assume the cause of action subject to reimbursement of litigation expenses incurred by the ((department or self-insurer)) insurer.

Sec. 59   RCW 51.24.080 and 1977 ex.s. c 85 s 6 are each amended to read as follows:
     (1) If the injured worker or beneficiary elects to seek damages from the third person, notice of the election must be given to the ((department or self-insurer)) insurer. The notice shall be by registered mail, certified mail, or personal service. If an action is filed by the injured worker or beneficiary, a copy of the complaint must be sent by registered mail to the ((department or self-insurer)) insurer.
     (2) A return showing service of the notice on the ((department or self-insurer)) insurer shall be filed with the court but shall not be part of the record except as necessary to give notice to the defendant of the lien imposed by RCW 51.24.060(2).

Sec. 60   RCW 51.24.090 and 1995 c 199 s 5 are each amended to read as follows:
     (1) Any compromise or settlement of the third party cause of action by the injured worker or beneficiary which results in less than the entitlement under this title is void unless made with the written approval of the ((department or self-insurer)) insurer: PROVIDED, That for the purposes of this chapter, "entitlement" means benefits and compensation paid and estimated by the ((department)) insurer to be paid in the future.
     (2) If a compromise or settlement is void because of subsection (1) of this section, the ((department or self-insurer)) insurer may petition the court in which the action was filed for an order assigning the cause of action to the ((department or self-insurer)) insurer. If an action has not been filed, the ((department or self-insurer)) insurer may proceed as provided in chapter 7.24 RCW.

NEW SECTION.  Sec. 61   A new section is added to chapter 51.28 RCW to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Commissioner" means the office of the insurance commissioner.
     (2) "Department" means the appropriate administrative/processing department of any insurer as defined in section 2 (1) and (2) of this act.
     (3) "Director" means the individual appointed by the insurance commissioner to supervise the workers' compensation program.

Sec. 62   RCW 51.28.010 and 2007 c 77 s 1 are each amended to read as follows:
     (1) Whenever any accident occurs to any worker it shall be the duty of such worker or someone in his or her behalf to forthwith report such accident to his or her employer, superintendent, or supervisor in charge of the work, and of the employer to at once report such accident and the injury resulting therefrom to the department pursuant to RCW 51.28.025 where the worker has received treatment from a physician or a licensed advanced registered nurse practitioner, has been hospitalized, disabled from work, or has died as the apparent result of such accident and injury.
     (2) Upon receipt of such notice of accident, the department shall immediately forward to the worker or his or her beneficiaries or dependents notification, in nontechnical language, of their rights under this title. The notice must specify the worker's right to receive health services from a physician or a licensed advanced registered nurse practitioner of the worker's choice under RCW 51.36.010, including chiropractic services under RCW 51.36.015, and must list the types of providers authorized to provide these services.
     (3) Employers shall not engage in claim suppression.
     (4) For the purposes of this section, "claim suppression" means intentionally:
     (a) Inducing employees to fail to report injuries;
     (b) Inducing employees to treat injuries in the course of employment as off-the-job injuries; or
     (c) Acting otherwise to suppress legitimate industrial insurance claims.
     (5) In determining whether an employer has engaged in claim suppression, the ((department)) commissioner shall consider the employer's history of compliance with industrial insurance reporting requirements, and whether the employer has discouraged employees from reporting injuries or filing claims. The ((department)) commissioner has the burden of proving claim suppression by a preponderance of the evidence.
     (6) Claim suppression does not include bona fide workplace safety and accident prevention programs or an employer's provision at the worksite of first aid ((as defined by the department)). The ((department)) commissioner shall adopt rules defining bona fide workplace safety and accident prevention programs and defining first aid.

Sec. 63   RCW 51.28.020 and 2005 c 108 s 3 are each amended to read as follows:
     (1)(a) Where a worker is entitled to compensation under this title he or she shall file with the department or his or her self-insured employer, as the case may be, his or her application for such, together with the certificate of the physician or licensed advanced registered nurse practitioner who attended him or her. An application form developed by the department shall include a notice specifying the worker's right to receive health services from a physician or licensed advanced registered nurse practitioner of the worker's choice under RCW 51.36.010, including chiropractic services under RCW 51.36.015, and listing the types of providers authorized to provide these services.
     (b) The physician or licensed advanced registered nurse practitioner who attended the injured worker shall inform the injured worker of his or her rights under this title and lend all necessary assistance in making this application for compensation and such proof of other matters as required by the rules of the department without charge to the worker. The department shall provide physicians with a manual which outlines the procedures to be followed in applications for compensation involving occupational diseases, and which describes claimants' rights and responsibilities related to occupational disease claims.
     (2) If the application required by this section is:
     (a) Filed on behalf of the worker by the physician who attended the worker, the physician may transmit the application to the department electronically using facsimile mail;
     (b) Made to the department and the employer has not received a copy of the application, the department shall immediately send a copy of the application to the employer; or
     (c) Made to a self-insured employer, the employer shall ((forthwith)) immediately send a copy of the application to the ((department)) commissioner.

Sec. 64   RCW 51.28.025 and 2007 c 77 s 2 are each amended to read as follows:
     (1) Whenever an employer has notice or knowledge of an injury or occupational disease sustained by any worker in his or her employment who has received treatment from a physician or a licensed advanced registered nurse practitioner, has been hospitalized, disabled from work or has died as the apparent result of such injury or occupational disease, the employer shall immediately report the same to the ((department)) commissioner on forms prescribed by it. The report shall include:
     (a) The name, address, and business of the employer;
     (b) The name, address, and occupation of the worker;
     (c) The date, time, cause, and nature of the injury or occupational disease;
     (d) Whether the injury or occupational disease arose in the course of the injured worker's employment;
     (e) All available information pertaining to the nature of the injury or occupational disease including but not limited to any visible signs, any complaints of the worker, any time lost from work, and the observable effect on the worker's bodily functions, so far as is known; and
     (f) Such other pertinent information as the ((department)) commissioner may prescribe by regulation.
     (2) The employer shall not engage in claim suppression. An employer found to have engaged in claim suppression shall be subject to a penalty of at least two hundred fifty dollars, not to exceed two thousand five hundred dollars, for each offense. The penalty shall be payable to the supplemental pension fund. The ((department)) commissioner shall adopt rules establishing the amount of penalties, taking into account the size of the employer and whether there are prior findings of claim suppression. When a determination of claim suppression has been made((, the employer shall be prohibited from any current or future participation in a retrospective rating program. If)) in the case of an employer that is self-insured, the ((director)) commissioner shall withdraw certification as provided in RCW 51.14.080.
     (3) When a determination of claim suppression is made and the penalty is assessed, the ((department)) commissioner shall serve the employer ((and any affected retrospective rating group)) with a determination as provided in RCW 51.52.050. The determination may be protested to the ((department)) commissioner or appealed to the board of industrial insurance appeals. Once the order is final, the amount due shall be collected ((in accordance with the provisions of RCW 51.48.140 and 51.48.150)).
     (4) The director, or the director's designee, shall investigate reports or complaints that an employer has engaged in claim suppression as prohibited in RCW 51.28.010(3). The complaints or allegations must be received in writing, and must include the name or names of the individuals or organizations submitting the complaint. In cases where the ((department)) commissioner can show probable cause, the director may subpoena records from the employer, medical providers, and any other entity that the director believes may have relevant information. The director's investigative and subpoena authority in this subsection is limited solely to investigations into allegations of claim suppression or where the director has probable cause that claim suppression might have occurred.
     (5) If the director determines that an employer has engaged in claim suppression and, as a result, the worker has not filed a claim for industrial insurance benefits as prescribed by law, then the director in his or her sole discretion may waive the time limits for filing a claim provided in RCW 51.28.050, if the complaint or allegation of claim suppression is received within two years of the worker's accident or exposure. For the director to exercise this discretion, the claim must be filed with the ((department)) commissioner within ninety days of the date the determination of claim suppression is issued.
     (6) For the purposes of this section, "claim suppression" has the same meaning as in RCW 51.28.010(4).

Sec. 65   RCW 51.28.055 and 2004 c 65 s 7 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section for claims filed for occupational hearing loss, claims for occupational disease or infection to be valid and compensable must be filed within two years following the date the worker had written notice from a physician or a licensed advanced registered nurse practitioner: (a) Of the existence of his or her occupational disease, and (b) that a claim for disability benefits may be filed. The notice shall also contain a statement that the worker has two years from the date of the notice to file a claim. The physician or licensed advanced registered nurse practitioner shall file the notice with the department. The department shall send a copy to the worker and to the self-insurer if the worker's employer is self-insured. However, a claim is valid if it is filed within two years from the date of death of the worker suffering from an occupational disease.
     (2)(a) Except as provided in (b) of this subsection, to be valid and compensable, claims for hearing loss due to occupational noise exposure must be filed within two years of the date of the worker's last injurious exposure to occupational noise in employment covered under this title or within one year of September 10, 2003, whichever is later.
     (b) A claim for hearing loss due to occupational noise exposure that is not timely filed under (a) of this subsection can only be allowed for medical aid benefits under chapter 51.36 RCW.
     (((3) The department may adopt rules to implement this section.))

Sec. 66   RCW 51.28.080 and 2005 c 108 s 4 are each amended to read as follows:
     (1) An employer shall be promptly notified by the department when:
     (a) The department has received an application for compensation under this title((. If the employer is a state fund employer, the department shall instruct the employer to submit a report of accident form and provide a telephone number for assistance in the reporting process)); and
     (b) It has determined that a worker of that employer is entitled to compensation under RCW 51.32.090.
     (2) Notification shall include, in nontechnical language, an explanation of the employer's rights under this title.

Sec. 67   RCW 51.28.090 and 1987 1st ex.s. c 5 s 17 are each amended to read as follows:
     The ((director)) department shall notify persons receiving time-loss payments under this chapter of the availability of basic health care coverage to qualified enrollees under chapter 70.47 RCW, unless the Washington basic health plan administrator has notified the ((director)) department of closure of enrollment in the plan. The director shall maintain supplies of Washington basic health plan enrollment application forms in all field service offices where the plan is available, which shall be provided in reasonably necessary quantities by the administrator for the use of persons wishing to apply for enrollment in the Washington basic health plan.

NEW SECTION.  Sec. 68   A new section is added to chapter 51.32 RCW to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Commissioner" means the office of the insurance commissioner.
     (2) "Department" or "supervisor" means the appropriate administrative/processing department of any insurer as defined in section 2 (1) and (2) of this act.
     (3) "Director" means the individual appointed by the insurance commissioner to supervise the industrial insurance program.

Sec. 69   RCW 51.32.055 and 2004 c 65 s 8 are each amended to read as follows:
     (1) One purpose of this title is to restore the injured worker as nearly as possible to the condition of self-support as an able-bodied worker. Benefits for permanent disability shall be determined ((under the director's supervision)) by the department, except as otherwise authorized in subsection (9) of this section, only after the injured worker's condition becomes fixed.
     (2) All determinations of permanent disabilities shall be made by the department, except as otherwise authorized in subsection (9) of this section. Either the worker, employer, or self-insurer may make a request or the inquiry may be initiated by the ((director or, as authorized in subsection (9) of this section, by the self-insurer on the director or the self-insurer's own motion)) department. Determinations shall be required in every instance where permanent disability is likely to be present. All medical reports and other pertinent information in the possession of or under the control of the employer or, if the self-insurer has made a request ((to the department)), in the possession of or under the control of the self-insurer shall be forwarded to the director with the request.
     (3) A request for determination of permanent disability shall be examined by the department or, if authorized in subsection (9) of this section, the self-insurer, and the department shall issue an order in accordance with RCW 51.52.050 or, in the case of a self-insured employer, the self-insurer may: (a) Enter a written order, communicated to the worker and the ((department)) commissioner self-insurance section in accordance with subsection (9) of this section, or (b) request the ((department)) commissioner to issue an order in accordance with RCW 51.52.050.
     (4) The department or, in cases authorized in subsection (9) of this section, the self-insurer may require that the worker present himself or herself for a special medical examination by a physician or physicians selected by the department, and the department or, in cases authorized in subsection (9) of this section, the self-insurer may require that the worker present himself or herself for a personal interview. The costs of the examination or interview, including payment of any reasonable travel expenses, shall be paid by the department or self-insurer, as the case may be.
     (5) The director may establish a medical bureau within the department to perform medical examinations ((under this section)). Physicians hired or retained for this purpose shall be grounded in industrial medicine and in the assessment of industrial physical impairment. Self-insurers shall bear a proportionate share of the cost of the medical bureau in a manner to be determined by the department.
     (6) Where a dispute arises from the handling of any claim before the condition of the injured worker becomes fixed, the worker, employer, or self-insurer may request the ((department)) commissioner to resolve the dispute or the director may initiate an inquiry on his or her own motion. In these cases, the ((department)) commissioner shall proceed as provided in this section and an order shall issue in accordance with RCW 51.52.050.
     (7)(a) If a claim (i) is accepted by a self-insurer after June 30, 1986, and before August 1, 1997, (ii) involves only medical treatment and the payment of temporary disability compensation under RCW 51.32.090 or only the payment of temporary disability compensation under RCW 51.32.090, (iii) at the time medical treatment is concluded does not involve permanent disability, (iv) is one with respect to which the ((department)) commissioner has not intervened under subsection (6) of this section, and (v) the injured worker has returned to work with the self-insured employer of record, whether at the worker's previous job or at a job that has comparable wages and benefits, the claim may be closed by the self-insurer, subject to reporting of claims to the ((department)) commissioner in a manner prescribed by ((department)) commissioner rules adopted under chapter 34.05 RCW.
     (b) All determinations of permanent disability for claims accepted under this subsection (7) by self-insurers shall be made by the self-insured section of the ((department)) commissioner under subsections (1) through (4) of this section.
     (c) Upon closure of a claim under (a) of this subsection, the self-insurer shall enter a written order, communicated to the worker and the ((department)) commissioner's self-insurance section, which contains the following statement clearly set forth in bold face type: "This order constitutes notification that your claim is being closed with medical benefits and temporary disability compensation only as provided, and with the condition you have returned to work with the self-insured employer. If for any reason you disagree with the conditions or duration of your return to work or the medical benefits or the temporary disability compensation that has been provided, you must protest in writing to the ((department of labor and industries,)) commissioner's self-insurance section, within sixty days of the date you received this order."
     (8)(a) If a claim (i) is accepted by a self-insurer after June 30, 1990, and before August 1, 1997, (ii) involves only medical treatment, (iii) does not involve payment of temporary disability compensation under RCW 51.32.090, and (iv) at the time medical treatment is concluded does not involve permanent disability, the claim may be closed by the self-insurer, subject to reporting of claims to the ((department)) commissioner in a manner prescribed by department rules adopted under chapter 34.05 RCW. Upon closure of a claim, the self-insurer shall enter a written order, communicated to the worker, which contains the following statement clearly set forth in bold-face type: "This order constitutes notification that your claim is being closed with medical benefits only, as provided. If for any reason you disagree with this closure, you must protest in writing to the ((Department of Labor and Industries)) office of the insurance commissioner, Olympia, within 60 days of the date you received this order. The ((department)) commissioner will then review your claim and enter a further determinative order."
     (b) All determinations of permanent disability for claims accepted under this subsection (8) by self-insurers shall be made by the self-insured section of the ((department)) commissioner under subsections (1) through (4) of this section.
     (9)(a) If a claim: (i) Is accepted by a self-insurer after July 31, 1997; (ii)(A) involves only medical treatment, or medical treatment and the payment of temporary disability compensation under RCW 51.32.090, and a determination of permanent partial disability, if applicable, has been made by the self-insurer as authorized in this subsection; or (B) involves only the payment of temporary disability compensation under RCW 51.32.090 and a determination of permanent partial disability, if applicable, has been made by the self-insurer as authorized in this subsection; (iii) is one with respect to which the ((department)) commissioner has not intervened under subsection (6) of this section; and (iv) concerns an injured worker who has returned to work with the self-insured employer of record, whether at the worker's previous job or at a job that has comparable wages and benefits, the claim may be closed by the self-insurer, subject to reporting of claims to the ((department)) commissioner in a manner prescribed by ((department)) commissioner rules adopted under chapter 34.05 RCW.
     (b) If a physician or licensed advanced registered nurse practitioner submits a report to the self-insurer that concludes that the worker's condition is fixed and stable and supports payment of a permanent partial disability award, and if within fourteen days from the date the self-insurer mailed the report to the attending or treating physician or licensed advanced registered nurse practitioner, the worker's attending or treating physician or licensed advanced registered nurse practitioner disagrees in writing that the worker's condition is fixed and stable, the self-insurer must get a supplemental medical opinion from a provider on the ((department's)) commissioner's approved examiner's list before closing the claim. In the alternative, the self-insurer may forward the claim to the ((department)) commissioner, which must review the claim and enter a final order as provided for in RCW 51.52.050.
     (c) Upon closure of a claim under this subsection (9), the self-insurer shall enter a written order, communicated to the worker and the ((department)) commissioner's self-insurance section, which contains the following statement clearly set forth in bold-face type: "This order constitutes notification that your claim is being closed with such medical benefits and temporary disability compensation as provided to date and with such award for permanent partial disability, if any, as set forth below, and with the condition that you have returned to work with the self-insured employer. If for any reason you disagree with the conditions or duration of your return to work or the medical benefits, temporary disability compensation provided, or permanent partial disability that has been awarded, you must protest in writing to the ((Department of Labor and Industries)) office of the insurance commissioner, Self-Insurance Section, within sixty days of the date you received this order. If you do not protest this order to the department, this order will become final."
     (d) All determinations of permanent partial disability for claims accepted by self-insurers under this subsection (9) may be made by the self-insurer or the self-insurer may request a determination by the self-insured section of the ((department)) commissioner. All determinations shall be made under subsections (1) through (4) of this section.
     (10) If the ((department)) commissioner receives a protest of an order issued by a self-insurer under subsections (7) through (9) of this section, the self-insurer's closure order must be held in abeyance. The ((department)) commissioner shall review the claim closure action and enter a further determinative order as provided for in RCW 51.52.050. If no protest is timely filed, the closing order issued by the self-insurer shall become final and shall have the same force and effect as a ((department)) commissioner order that has become final under RCW 51.52.050.
     (11) If within two years of claim closure under subsections (7) through (9) of this section, the ((department)) commissioner determines that the self-insurer has made payment of benefits because of clerical error, mistake of identity, or innocent misrepresentation or the ((department)) commissioner discovers a violation of the conditions of claim closure, the ((department)) commissioner may require the self-insurer to correct the benefits paid or payable. This subsection (11) does not limit in any way the application of RCW 51.32.240.
     (12) For the purposes of this section, "comparable wages and benefits" means wages and benefits that are at least ninety-five percent of the wages and benefits received by the worker at the time of injury.

Sec. 70   RCW 51.32.060 and 2007 c 284 s 2 are each amended to read as follows:
     (1) When the ((supervisor of industrial insurance shall determine)) department determines that permanent total disability results from the injury, the worker shall receive monthly during the period of such disability:
     (a) If married at the time of injury, sixty-five percent of his or her wages.
     (b) If married with one child at the time of injury, sixty-seven percent of his or her wages.
     (c) If married with two children at the time of injury, sixty-nine percent of his or her wages.
     (d) If married with three children at the time of injury, seventy-one percent of his or her wages.
     (e) If married with four children at the time of injury, seventy-three percent of his or her wages.
     (f) If married with five or more children at the time of injury, seventy-five percent of his or her wages.
     (g) If unmarried at the time of the injury, sixty percent of his or her wages.
     (h) If unmarried with one child at the time of injury, sixty-two percent of his or her wages.
     (i) If unmarried with two children at the time of injury, sixty-four percent of his or her wages.
     (j) If unmarried with three children at the time of injury, sixty-six percent of his or her wages.
     (k) If unmarried with four children at the time of injury, sixty-eight percent of his or her wages.
     (l) If unmarried with five or more children at the time of injury, seventy percent of his or her wages.
     (2) For any period of time where both husband and wife are entitled to compensation as temporarily or totally disabled workers, only that spouse having the higher wages of the two shall be entitled to claim their child or children for compensation purposes.
     (3) In case of permanent total disability, if the character of the injury is such as to render the worker so physically helpless as to require the hiring of the services of an attendant, the department shall make monthly payments to such attendant for such services as long as such requirement continues, but such payments shall not obtain or be operative while the worker is receiving care under or pursuant to the provisions of chapter 51.36 RCW and RCW 51.04.105.
     (4) Should any further accident result in the permanent total disability of an injured worker, he or she shall receive the pension to which he or she would be entitled, notwithstanding the payment of a lump sum for his or her prior injury.
     (5) In no event shall the monthly payments provided in this section:
     (a) Exceed the applicable percentage of the average monthly wage in the state as computed under the provisions of RCW 51.08.018 as follows:

 AFTERPERCENTAGE
 
 June 30, 1993105% 
 June 30, 1994110% 
 June 30, 1995115% 
 June 30, 1996120% 


     (b) For dates of injury or disease manifestation after July 1, 2008, be less than fifteen percent of the average monthly wage in the state as computed under RCW 51.08.018 plus an additional ten dollars per month if a worker is married and an additional ten dollars per month for each child of the worker up to a maximum of five children. However, if the monthly payment computed under this subsection (5)(b) is greater than one hundred percent of the wages of the worker as determined under RCW 51.08.178, the monthly payment due to the worker shall be equal to the greater of the monthly wages of the worker or the minimum benefit set forth in this section on June 30, 2008.
     The limitations under this subsection shall not apply to the payments provided for in subsection (3) of this section.
     (6) In the case of new or reopened claims, if the ((supervisor of industrial insurance)) department determines that, at the time of filing or reopening, the worker is voluntarily retired and is no longer attached to the workforce, benefits shall not be paid under this section.
     (7) The benefits provided by this section are subject to modification under RCW 51.32.067.

Sec. 71   RCW 51.32.067 and 2006 c 154 s 1 are each amended to read as follows:
     (1) After a worker elects one of the options in (a), (b), or (c) of this subsection, that option shall apply only if the worker dies during a period of permanent total disability from a cause unrelated to the injury, leaving a surviving spouse, child, children, or other dependent. If, after making an election under this subsection, a worker dies from a cause related to the injury during a period of permanent total disability, his or her beneficiaries shall receive benefits under RCW 51.32.050 (2) through (5).
     (a) Option I. An injured worker selecting this option shall receive the benefits provided by RCW 51.32.060, with no benefits being paid to the worker's surviving spouse, children, or others.
     (b) Option II. An injured worker selecting this option shall receive an actuarially reduced benefit which upon death shall be continued throughout the life of and paid to the surviving spouse, child, or other dependent as the worker has nominated by written designation duly executed and filed with the department.
     (c) Option III. An injured worker selecting this option shall receive an actuarially reduced benefit and, upon death, one-half of the reduced benefit shall be continued throughout the life of and paid to the surviving spouse, child, or other dependent as the worker has nominated by written designation duly executed and filed with the department.
     (2) The worker shall make the election in writing and the worker's spouse, if any, shall consent in writing as a prerequisite to the election of Option I.
     (3) If the worker's nominated beneficiary is the worker's spouse, and the worker and spouse enter into a dissolution of marriage after the nomination has been made, the worker may apply to receive benefits as calculated under Option I. This change is effective the date of the decree of dissolution of marriage, but no more than one year prior to the date application for the change is received in the department, provided the worker submits legally certified documentation of the decree of dissolution of marriage.
     (4) If the worker's nominated beneficiary dies, the worker may apply to receive benefits as calculated under Option I. This change is effective the date of death, but no more than one year prior to the date application for the change is received in the department, provided the worker submits a certified copy of the death certificate.
     (5) The change in benefits authorized by subsections (3) and (4) of this section is a one-time adjustment and will be permanent for the life of the worker.
     (((6) The department shall adopt such rules as may be necessary to implement this section.))

Sec. 72   RCW 51.32.072 and 1987 c 185 s 34 are each amended to read as follows:
     Notwithstanding any other provision of law, every surviving spouse and every permanently totally disabled worker or temporarily totally disabled worker, if such worker was unmarried at the time of the worker's injury or was then married but the marriage was later terminated by judicial action, receiving a pension or compensation for temporary total disability under this title pursuant to compensation schedules in effect prior to July 1, 1971, shall after July 1, 1975, be paid fifty percent of the average monthly wage in the state as computed under RCW 51.08.018 per month and an amount equal to five percent of such average monthly wage per month to such totally disabled worker if married at the time of the worker's injury and the marriage was not later terminated by judicial action, and an additional two percent of such average monthly wage for each child of such totally disabled worker at the time of injury in the legal custody of such totally disabled worker or such surviving spouse up to a maximum of five such children. The monthly payments such surviving spouse or totally disabled worker are receiving pursuant to compensation schedules in effect prior to July 1, 1971 shall be deducted from the monthly payments above specified.
     Where such a surviving spouse has remarried, or where any such child of such worker, whether living or deceased, is not in the legal custody of such worker or such surviving spouse there shall be paid for the benefit of and on account of each such child a sum equal to two percent of such average monthly wage up to a maximum of five such children in addition to any payments theretofore paid under compensation schedules in effect prior to July 1, 1971 for the benefit of and on account of each such child. In the case of any child or children of a deceased worker not leaving a surviving spouse or where the surviving spouse has later died, there shall be paid for the benefit of and on account of each such child a sum equal to two percent of such average monthly wage up to a maximum of five such children in addition to any payments theretofore paid under such schedules for the benefit of and on account of each such child.
     If the character of the injury or occupational disease is such as to render the worker so physically helpless as to require the hiring of the services of an attendant, the department shall make monthly payments to such attendant for such services as long as such requirement continues but such payments shall not obtain or be operative while the worker is receiving care under or pursuant to the provisions of this title except for care granted at the discretion of the ((supervisor)) commissioner pursuant to RCW 51.36.010: PROVIDED, That such payments shall not be considered compensation nor shall they be subject to any limitation upon total compensation payments.
     ((No part of such additional payments shall be payable from the accident fund.))
     The ((director)) commissioner shall pay monthly from the supplemental pension fund such an amount as will, when added to the compensation theretofore paid under compensation schedules in effect prior to July 1, 1971, equal the amounts hereinabove specified.
     In cases where money has been or shall be advanced to any such person from the pension reserve, the additional amount to be paid under this section shall be reduced by the amount of monthly pension which was or is predicated upon such advanced portion of the pension reserve.

Sec. 73   RCW 51.32.073 and 1989 c 385 s 4 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, each employer shall retain from the earnings of each worker that amount as shall be fixed from time to time by the director, the basis for measuring said amount to be determined by the director. The money so retained shall be matched in an equal amount by each employer, and all such moneys shall be remitted to the ((department)) commissioner in such manner and at such intervals as the ((department)) commissioner directs and shall be placed in the supplemental pension fund: PROVIDED, That the state apprenticeship council shall pay the entire amount into the supplemental pension fund for registered apprentices or trainees during their participation in supplemental and related instruction classes. Each insurer shall remit to the commissioner for the supplemental pension fund an amount to be determined by the commissioner. The moneys so collected shall be used exclusively for the additional payments from the supplemental pension fund prescribed in this title and for the amount of any increase payable under the provisions of RCW 51.32.075, ((as now or hereafter amended,)) and shall be no more than necessary to make such payments on a current basis. The ((department)) commissioner may require a self-insurer to make any additional payments which are payable from the supplemental pension fund and thereafter such self-insurer shall be reimbursed therefrom.
     (2) None of the amount assessed for the supplemental pension fund ((under RCW 51.16.210)) may be retained from the earnings of workers ((covered under RCW 51.16.210)).

Sec. 74   RCW 51.32.080 and 2007 c 172 s 1 are each amended to read as follows:
     (1)(a) Until July 1, 1993, for the permanent partial disabilities here specifically described, the injured worker shall receive compensation as follows:

LOSS BY AMPUTATION
Of leg above the knee joint with short
     thigh stump (3" or less below the
     tuberosity of ischium) . . . . . . . . . . . .
$54,000.00
Of leg at or above knee joint with
     functional stump . . . . . . . . . . . .
48,600.00
Of leg below knee joint . . . . . . . . . . . . 43,200.00
Of leg at ankle (Syme) . . . . . . . . . . . . 37,800.00
Of foot at mid-metatarsals . . . . . . . . . . . . 18,900.00
Of great toe with resection of metatarsal
     bone . . . . . . . . . . . .
11,340.00
Of great toe at metatarsophalangeal
     joint . . . . . . . . . . . .
6,804.00
Of great toe at interphalangeal joint . . . . . . . . . . . . 3,600.00
Of lesser toe (2nd to 5th) with resection of
     metatarsal bone . . . . . . . . . . . .
4,140.00
Of lesser toe at metatarsophalangeal
     joint . . . . . . . . . . . .
2,016.00
Of lesser toe at proximal interphalangeal
     joint . . . . . . . . . . . .
1,494.00
Of lesser toe at distal interphalangeal
     joint . . . . . . . . . . . .
378.00
Of arm at or above the deltoid insertion or
     by disarticulation at the shoulder . . . . . . . . . . . .
54,000.00
Of arm at any point from below the deltoid
     insertion to below the elbow joint at
     the insertion of the biceps tendon . . . . . . . . . . . .
51,300.00
Of arm at any point from below the elbow
     joint distal to the insertion of the
     biceps tendon to and including
     mid-metacarpal amputation of the
     hand . . . . . . . . . . . .
48,600.00
Of all fingers except the thumb at
     metacarpophalangeal joints . . . . . . . . . . . .
29,160.00
Of thumb at metacarpophalangeal joint or
     with resection of carpometacarpal
     bone . . . . . . . . . . . .
19,440.00
Of thumb at interphalangeal joint . . . . . . . . . . . . 9,720.00
Of index finger at metacarpophalangeal
     joint or with resection of metacarpal
     bone . . . . . . . . . . . .
12,150.00
Of index finger at proximal
     interphalangeal joint . . . . . . . . . . . .
9,720.00
Of index finger at distal interphalangeal
     joint . . . . . . . . . . . .
5,346.00
Of middle finger at metacarpophalangeal
     joint or with resection of metacarpal
     bone . . . . . . . . . . . .
9,720.00
Of middle finger at proximal
     interphalangeal joint . . . . . . . . . . . .
7,776.00
Of middle finger at distal interphalangeal
     joint . . . . . . . . . . . .
4,374.00
Of ring finger at metacarpophalangeal
     joint or with resection of metacarpal
     bone . . . . . . . . . . . .
4,860.00
Of ring finger at proximal interphalangeal
     joint . . . . . . . . . . . .
3,888.00
Of ring finger at distal interphalangeal
     joint . . . . . . . . . . . .
2,430.00
Of little finger at metacarpophalangeal
     joint or with resection of metacarpal
     bone . . . . . . . . . . . .
2,430.00
Of little finger at proximal interphalangeal
     joint . . . . . . . . . . . .
1,944.00
Of little finger at distal interphalangeal
     joint . . . . . . . . . . . .
972.00

MISCELLANEOUS
Loss of one eye by enucleation . . . . . . . . . . . . 21,600.00
Loss of central visual acuity in one eye . . . . . . . . . . . . 18,000.00
Complete loss of hearing in both ears . . . . . . . . . . . . 43,200.00
Complete loss of hearing in one ear . . . . . . . . . . . . 7,200.00


     (b) Beginning on July 1, 1993, compensation under this subsection shall be computed as follows:
     (i) Beginning on July 1, 1993, the compensation amounts for the specified disabilities listed in (a) of this subsection shall be increased by thirty-two percent; and
     (ii) Beginning on July 1, 1994, and each July 1 thereafter, the compensation amounts for the specified disabilities listed in (a) of this subsection, as adjusted under (b)(i) of this subsection, shall be readjusted to reflect the percentage change in the consumer price index, calculated as follows: The index for the calendar year preceding the year in which the July calculation is made, to be known as "calendar year A," is divided by the index for the calendar year preceding calendar year A, and the resulting ratio is multiplied by the compensation amount in effect on June 30 immediately preceding the July 1st on which the respective calculation is made. For the purposes of this subsection, "index" means the same as the definition in RCW 2.12.037(1).
     (2) Compensation for amputation of a member or part thereof at a site other than those specified in subsection (1) of this section, and for loss of central visual acuity and loss of hearing other than complete, shall be in proportion to that which such other amputation or partial loss of visual acuity or hearing most closely resembles and approximates. Compensation shall be calculated based on the adjusted schedule of compensation in effect for the respective time period as prescribed in subsection (1) of this section.
     (3)(a) Compensation for any other permanent partial disability not involving amputation shall be in the proportion which the extent of such other disability, called unspecified disability, shall bear to the disabilities specified in subsection (1) of this section, which most closely resembles and approximates in degree of disability such other disability, and compensation for any other unspecified permanent partial disability shall be in an amount as measured and compared to total bodily impairment. To reduce litigation and establish more certainty and uniformity in the rating of unspecified permanent partial disabilities, the ((department)) commissioner shall enact rules having the force of law classifying such disabilities in the proportion which the department shall determine such disabilities reasonably bear to total bodily impairment. In enacting such rules, the ((department)) commissioner shall give consideration to, but need not necessarily adopt, any nationally recognized medical standards or guides for determining various bodily impairments.
     (b) Until July 1, 1993, for purposes of calculating monetary benefits under (a) of this subsection, the amount payable for total bodily impairment shall be deemed to be ninety thousand dollars. Beginning on July 1, 1993, for purposes of calculating monetary benefits under (a) of this subsection, the amount payable for total bodily impairment shall be adjusted as follows:
     (i) Beginning on July 1, 1993, the amount payable for total bodily impairment under this section shall be increased to one hundred eighteen thousand eight hundred dollars; and
     (ii) Beginning on July 1, 1994, and each July 1 thereafter, the amount payable for total bodily impairment prescribed in (b)(i) of this subsection shall be adjusted as provided in subsection (1)(b)(ii) of this section.
     (c) Until July 1, 1993, the total compensation for all unspecified permanent partial disabilities resulting from the same injury shall not exceed the sum of ninety thousand dollars. Beginning on July 1, 1993, total compensation for all unspecified permanent partial disabilities resulting from the same injury shall not exceed a sum calculated as follows:
     (i) Beginning on July 1, 1993, the sum shall be increased to one hundred eighteen thousand eight hundred dollars; and
     (ii) Beginning on July 1, 1994, and each July 1 thereafter, the sum prescribed in (b)(i) of this subsection shall be adjusted as provided in subsection (1)(b)(ii) of this section.
     (4) If permanent partial disability compensation is followed by permanent total disability compensation, any portion of the permanent partial disability compensation which exceeds the amount that would have been paid the injured worker if permanent total disability compensation had been paid in the first instance shall be, at the choosing of the injured worker, either: (a) Deducted from the worker's monthly pension benefits in an amount not to exceed twenty-five percent of the monthly amount due from the department or self-insurer or one-sixth of the total overpayment, whichever is less; or (b) deducted from the pension reserve of such injured worker and his or her monthly compensation payments shall be reduced accordingly.
     (5) Should a worker receive an injury to a member or part of his or her body already, from whatever cause, permanently partially disabled, resulting in the amputation thereof or in an aggravation or increase in such permanent partial disability but not resulting in the permanent total disability of such worker, his or her compensation for such partial disability shall be adjudged with regard to the previous disability of the injured member or part and the degree or extent of the aggravation or increase of disability thereof.
     (6) When the compensation provided for in subsections (1) through (3) of this section exceeds three times the average monthly wage in the state as computed under the provisions of RCW 51.08.018, payment shall be made in monthly payments in accordance with the schedule of temporary total disability payments set forth in RCW 51.32.090 until such compensation is paid to the injured worker in full, except that the first monthly payment shall be in an amount equal to three times the average monthly wage in the state as computed under the provisions of RCW 51.08.018, and interest shall be paid at the rate of eight percent on the unpaid balance of such compensation commencing with the second monthly payment. However, upon application of the injured worker or survivor the monthly payment may be converted, in whole or in part, into a lump sum payment, in which event the monthly payment shall cease in whole or in part. Such conversion may be made only upon written application of the injured worker or survivor to the department and shall rest in the discretion of the department depending upon the merits of each individual application. Upon the death of a worker all unpaid installments accrued shall be paid according to the payment schedule established prior to the death of the worker to the widow or widower, or if there is no widow or widower surviving, to the dependent children of such claimant, and if there are no such dependent children, then to such other dependents as defined by this title.
     (7) Awards payable under this section are governed by the schedule in effect on the date of injury.

Sec. 75   RCW 51.32.098 and 1985 c 339 s 4 are each amended to read as follows:
     Nothing in RCW 51.32.095 or in the repeal of chapter 51.41 RCW by section 5, chapter 339, Laws of 1985 shall be construed as prohibiting the completion of vocational rehabilitation plans approved under this title prior to May 16, 1985. Injured workers referred for vocational rehabilitation services under this title, but for whom vocational rehabilitation plans have not been approved ((by the department)) under this title before May 16, 1985, may only be provided vocational rehabilitation services, if applicable, ((by the department)) according to the provisions of RCW 51.32.095.

Sec. 76   RCW 51.32.110 and 1997 c 325 s 3 are each amended to read as follows:
     (1) Any worker entitled to receive any benefits or claiming such under this title shall, if requested by the department or self-insurer, submit himself or herself for medical examination, at a time and from time to time, at a place reasonably convenient for the worker and as may be provided by the rules of the department. An injured worker, whether an alien or other injured worker, who is not residing in the United States at the time that a medical examination is requested may be required to submit to an examination at any location in the United States determined by the department or self-insurer.
     (2) If the worker refuses to submit to medical examination, or obstructs the same, or, if any injured worker shall persist in unsanitary or injurious practices which tend to imperil or retard his or her recovery, or shall refuse to submit to such medical or surgical treatment as is reasonably essential to his or her recovery or refuse or obstruct evaluation or examination for the purpose of vocational rehabilitation or does not cooperate in reasonable efforts at such rehabilitation, the department or the self-insurer upon approval by the ((department)) commissioner, with notice to the worker may suspend any further action on any claim of such worker so long as such refusal, obstruction, noncooperation, or practice continues and reduce, suspend, or deny any compensation for such period: PROVIDED, That the department or the self-insurer shall not suspend any further action on any claim of a worker or reduce, suspend, or deny any compensation if a worker has good cause for refusing to submit to or to obstruct any examination, evaluation, treatment or practice requested by the department or required under this section.
     (3) If the worker necessarily incurs traveling expenses in attending the examination pursuant to the request of the department, such traveling expenses shall be repaid to him or her ((out of the accident fund)) upon proper voucher and audit or shall be repaid by the self-insurer, as the case may be.
     (4)(a) If the medical examination required by this section causes the worker to be absent from his or her work without pay((:
     (i) In the case of a worker insured by the department
)), the worker shall be paid compensation ((out of the accident fund)) in an amount equal to his or her usual wages for the time lost from work while attending the medical examination((; or
     (ii) In the case of a worker of a self-insurer, the self-insurer shall pay the worker an amount equal to his or her usual wages for the time lost from work while attending the medical examination.
     (b) This subsection (4) shall apply prospectively to all claims regardless of the date of injury
)).
     (b) This subsection (4) applies to all claims regardless of the date of injury.

Sec. 77   RCW 51.32.112 and 1993 c 515 s 4 are each amended to read as follows:
     (1) The ((department)) commissioner shall develop standards for the conduct of special medical examinations to determine permanent disabilities, including, but not limited to:
     (a) The qualifications of persons conducting the examinations;
     (b) The criteria for conducting the examinations, including guidelines for the appropriate treatment of injured workers during the examination; and
     (c) The content of examination reports.
     (2) Within the appropriate scope of practice, chiropractors licensed under chapter 18.25 RCW may conduct special medical examinations to determine permanent disabilities in consultation with physicians licensed under chapter 18.57 or 18.71 RCW. The department, in its discretion, may request that a special medical examination be conducted by a single chiropractor if the department determines that the sole issues involved in the examination are within the scope of practice under chapter 18.25 RCW. However, nothing in this section authorizes the use as evidence before the board of a chiropractor's determination of the extent of a worker's permanent disability if the determination is not requested by the department.
     (3) The ((department)) commissioner shall investigate the amount of examination fees received by persons conducting special medical examinations to determine permanent disabilities, including total compensation received for examinations of department and self-insured claimants, and establish compensation guidelines and compensation reporting criteria.
     (4) The ((department)) commissioner shall investigate the level of compliance of self-insurers with the requirement of full reporting of claims information to the department, particularly with respect to medical examinations, and develop effective enforcement procedures or recommendations for legislation if needed.

Sec. 78   RCW 51.32.114 and 1988 c 114 s 3 are each amended to read as follows:
     The ((department)) commissioner shall examine the credentials of persons conducting special medical examinations and shall monitor the quality and objectivity of examinations and reports for the department and self-insured claimants. The ((department)) commissioner shall adopt rules to ensure that examinations are performed only by qualified persons ((meeting department standards)).

Sec. 79   RCW 51.32.135 and 1977 ex.s. c 350 s 52 are each amended to read as follows:
     In pension cases when a worker or beneficiary closes his or her claim by full conversion to a lump sum or in any other manner as provided in RCW 51.32.130 and 51.32.150, such action shall be conclusive and effective to bar any subsequent application or claim relative thereto by the worker or any beneficiary which would otherwise exist had such person not elected to close the claim: PROVIDED, The ((director)) department may require the spouse of such worker to consent in writing as a prerequisite to conversion and/or the closing of such claim.

Sec. 80   RCW 51.32.160 and 1995 c 253 s 2 are each amended to read as follows:
     (1)(a) If aggravation, diminution, or termination of disability takes place, the ((director)) department may, upon the application of the beneficiary, made within seven years from the date the first closing order becomes final, or at any time upon his or her own motion, readjust the rate of compensation in accordance with the rules in this section provided for the same, or in a proper case terminate the payment: PROVIDED, That the ((director)) department may, upon application of the worker made at any time, provide proper and necessary medical and surgical services as authorized under RCW 51.36.010. The department shall promptly mail a copy of the application to the employer at the employer's last known address as shown by the records of the department.
     (b) "Closing order" as used in this section means an order based on factors which include medical recommendation, advice, or examination.
     (c) Applications for benefits where the claim has been closed without medical recommendation, advice, or examination are not subject to the seven year limitation of this section. The preceding sentence shall not apply to any closing order issued prior to July 1, 1981. First closing orders issued between July 1, 1981, and July 1, 1985, shall, for the purposes of this section only, be deemed issued on July 1, 1985. The time limitation of this section shall be ten years in claims involving loss of vision or function of the eyes.
     (d) If an order denying an application to reopen filed on or after July 1, 1988, is not issued within ninety days of receipt of such application by the self-insured employer or the department, such application shall be deemed granted. However, for good cause, the department may extend the time for making the final determination on the application for an additional sixty days.
     (2) If a worker receiving a pension for total disability returns to gainful employment for wages, the ((director)) department may suspend or terminate the rate of compensation established for the disability without producing medical evidence that shows that a diminution of the disability has occurred.
     (3) No act done or ordered to be done by the director, or the department prior to the signing and filing in the matter of a written order for such readjustment shall be grounds for such readjustment.

Sec. 81   RCW 51.32.185 and 2007 c 490 s 2 are each amended to read as follows:
     (1) In the case of firefighters as defined in RCW 41.26.030(((4))) (16) (a), (b), and (c) who are covered under Title 51 RCW and firefighters, including supervisors, employed on a full-time, fully compensated basis as a firefighter of a private sector employer's fire department that includes over fifty such firefighters, there shall exist a prima facie presumption that: (a) Respiratory disease; (b) any heart problems, experienced within seventy-two hours of exposure to smoke, fumes, or toxic substances, or experienced within twenty-four hours of strenuous physical exertion due to firefighting activities; (c) cancer; and (d) infectious diseases are occupational diseases under RCW 51.08.140. This presumption of occupational disease may be rebutted by a preponderance of the evidence. Such evidence may include, but is not limited to, use of tobacco products, physical fitness and weight, lifestyle, hereditary factors, and exposure from other employment or nonemployment activities.
     (2) The presumptions established in subsection (1) of this section shall be extended to an applicable member following termination of service for a period of three calendar months for each year of requisite service, but may not extend more than sixty months following the last date of employment.
     (3) The presumption established in subsection (1)(c) of this section shall only apply to any active or former firefighter who has cancer that develops or manifests itself after the firefighter has served at least ten years and who was given a qualifying medical examination upon becoming a firefighter that showed no evidence of cancer. The presumption within subsection (1)(c) of this section shall only apply to prostate cancer diagnosed prior to the age of fifty, primary brain cancer, malignant melanoma, leukemia, non-Hodgkin's lymphoma, bladder cancer, ureter cancer, colorectal cancer, multiple myeloma, testicular cancer, and kidney cancer.
     (4) The presumption established in subsection (1)(d) of this section shall be extended to any firefighter who has contracted any of the following infectious diseases: Human immunodeficiency virus/acquired immunodeficiency syndrome, all strains of hepatitis, meningococcal meningitis, or mycobacterium tuberculosis.
     (5) Beginning July 1, 2003, this section does not apply to a firefighter who develops a heart or lung condition and who is a regular user of tobacco products or who has a history of tobacco use. The ((department)) commissioner, using existing medical research, shall define in rule the extent of tobacco use that shall exclude a firefighter from the provisions of this section.
     (6) For purposes of this section, "firefighting activities" means fire suppression, fire prevention, emergency medical services, rescue operations, hazardous materials response, aircraft rescue, and training and other assigned duties related to emergency response.
     (7)(a) When a determination involving the presumption established in this section is appealed to the board of industrial insurance appeals and the final decision allows the claim for benefits, the board of industrial insurance appeals shall order that all reasonable costs of the appeal, including attorney fees and witness fees, be paid to the firefighter or his or her beneficiary by the opposing party.
     (b) When a determination involving the presumption established in this section is appealed to any court and the final decision allows the claim for benefits, the court shall order that all reasonable costs of the appeal, including attorney fees and witness fees, be paid to the firefighter or his or her beneficiary by the opposing party.
     (((c) When reasonable costs of the appeal must be paid by the department under this section in a state fund case, the costs shall be paid from the accident fund and charged to the costs of the claim.))

Sec. 82   RCW 51.32.190 and 1996 c 58 s 2 are each amended to read as follows:
     (1) If the self-insurer denies a claim for compensation, written notice of such denial, clearly informing the claimant of the reasons therefor and that the director will rule on the matter shall be mailed or given to the claimant and the director within thirty days after the self-insurer has notice of the claim.
     (2) Until such time as the ((department)) commissioner has entered an order in a disputed case acceptance of compensation by the claimant shall not be considered a binding determination of his or her rights under this title. Likewise the payment of compensation shall not be considered a binding determination of the obligations of the self-insurer as to future compensation payments.
     (3) Upon making the first payment of income benefits, the self-insurer shall immediately notify the director in accordance with a form to be prescribed by the director. Upon request of the ((department on a form prescribed by the department)) commissioner, the self-insurer shall submit a record of the payment of income benefits including initial, termination or terminations, and change or changes to the benefits. Where temporary disability compensation is payable, the first payment thereof shall be made within fourteen days after notice of claim and shall continue at regular semimonthly or biweekly intervals.
     (4) If, after the payment of compensation without an award, the self-insurer elects to controvert the right to compensation, the payment of compensation shall not be considered a binding determination of the obligations of the self-insurer as to future compensation payments. The acceptance of compensation by the worker or his or her beneficiaries shall not be considered a binding determination of their rights under this title.
     (5) The director: (a) May, upon his or her own initiative at any time in a case in which payments are being made without an award; and (b) shall, upon receipt of information from any person claiming to be entitled to compensation, from the self-insurer, or otherwise that the right to compensation is controverted, or that payment of compensation has been opposed, stopped or changed, whether or not claim has been filed, promptly make such inquiry as circumstances require, cause such medical examinations to be made, hold such hearings, require the submission of further information, make such orders, decisions or awards, and take such further action as he or she considers will properly determine the matter and protect the rights of all parties.
     (6) The director, upon his or her own initiative, may make such inquiry as circumstances require or is necessary to protect the rights of all the parties and he or she may enact rules and regulations providing for procedures to ensure fair and prompt handling by self-insurers of the claims of workers and beneficiaries.

Sec. 83   RCW 51.32.195 and 1987 c 290 s 1 are each amended to read as follows:
     On any industrial injury claim where the self-insured employer or injured worker has requested a determination by the ((department)) commissioner, the self-insurer must submit all medical reports and any other specified information not previously submitted to the ((department)) commissioner. When the ((department)) commissioner requests information from a self-insurer by certified mail, the self-insurer shall submit all information in its possession concerning a claim within ten working days from the date of receipt of such certified notice.

Sec. 84   RCW 51.32.210 and 1977 ex.s. c 350 s 55 are each amended to read as follows:
     Claims of injured workers of employers who have secured the payment of compensation ((by insuring with the department)) shall be promptly acted upon by the department. Where temporary disability compensation is payable, the first payment thereof shall be mailed within fourteen days after receipt of the claim ((at the department's offices in Olympia)) and shall continue at regular semimonthly intervals. The payment of this or any other benefits under this title, prior to the entry of an order ((by the department)) in accordance with RCW 51.52.050 ((as now or hereafter amended)), shall be not considered a binding determination of the obligations of the department under this title. The acceptance of compensation by the worker or his or her beneficiaries prior to such order shall likewise not be considered a binding determination of their rights under this title.

Sec. 85   RCW 51.32.215 and 1995 c 276 s 1 are each amended to read as follows:
     (1)(a) If the worker or beneficiary ((in a state fund claim)) prevails in an appeal by any party to the board or the court, the department shall comply with the board or court's order with respect to the payment of compensation within the later of the following time periods:
     (i) Sixty days after the compensation order has become final and is not subject to review or appeal; or
     (ii) If the order has become final and is not subject to review or appeal and the department has, within the period specified in (a)(i) of this subsection, requested the filing by the worker or beneficiary of documents necessary to make payment of compensation, sixty days after all requested documents are filed with the department.
     The ((department)) commissioner may extend the sixty-day time period for an additional thirty days for good cause.
     (b) If the department fails to comply with (a) of this subsection, any person entitled to compensation under the order may institute proceedings for injunctive or other appropriate relief for enforcement of the order. These proceedings may be instituted in the superior court for the county in which the claimant resides, or, if the claimant is not then a resident of this state, in the superior court for Thurston county.
     (2) In a proceeding under this section, the court shall enforce obedience to the order by proper means, enjoining compliance upon the person obligated to comply with the compensation order. The court may issue such writs and processes as are necessary to carry out its orders and may award a penalty of up to one thousand dollars to the person entitled to compensation under the order.
     (3) A proceeding under this section does not preclude other methods of enforcement provided for in this title.

Sec. 86   RCW 51.32.240 and 2008 c 280 s 2 are each amended to read as follows:
     (1)(a) Whenever any payment of benefits under this title is made because of clerical error, mistake of identity, innocent misrepresentation by or on behalf of the recipient thereof mistakenly acted upon, or any other circumstance of a similar nature, all not induced by willful misrepresentation, the recipient thereof shall repay it and recoupment may be made from any future payments due to the recipient on any claim ((with the state fund or self-insurer, as the case may be)). The department or self-insurer, as the case may be, must make claim for such repayment or recoupment within one year of the making of any such payment or it will be deemed any claim therefor has been waived.
     (b) Except as provided in subsections (3), (4), and (5) of this section, the department may only assess an overpayment of benefits because of adjudicator error when the order upon which the overpayment is based is not yet final as provided in RCW 51.52.050 and 51.52.060. "Adjudicator error" includes the failure to consider information in the claim file, failure to secure adequate information, or an error in judgment.
     (c) The director, pursuant to rules adopted in accordance with the procedures provided in the administrative procedure act, chapter 34.05 RCW, may exercise his or her discretion to waive, in whole or in part, the amount of any such timely claim where the recovery would be against equity and good conscience.
     (2) Whenever the department or self-insurer fails to pay benefits because of clerical error, mistake of identity, or innocent misrepresentation, all not induced by recipient willful misrepresentation, the recipient may request an adjustment of benefits to be paid ((from the state fund or by the self-insurer, as the case may be)), subject to the following:
     (a) The recipient must request an adjustment in benefits within one year from the date of the incorrect payment or it will be deemed any claim therefore has been waived.
     (b) The recipient may not seek an adjustment of benefits because of adjudicator error. Adjustments due to adjudicator error are addressed by the filing of a written request for reconsideration with the department ((of labor and industries)) or an appeal with the board of industrial insurance appeals within sixty days from the date the order is communicated as provided in RCW 51.52.050. "Adjudicator error" includes the failure to consider information in the claim file, failure to secure adequate information, or an error in judgment.
     (3) Whenever the department issues an order rejecting a claim for benefits paid pursuant to RCW 51.32.190 or 51.32.210, after payment for temporary disability benefits has been paid by a self-insurer pursuant to RCW 51.32.190(3) or by the department pursuant to RCW 51.32.210, the recipient thereof shall repay such benefits and recoupment may be made from any future payments due to the recipient on any claim ((with the state fund or self-insurer, as the case may be)). The director, under rules adopted in accordance with the procedures provided in the administrative procedure act, chapter 34.05 RCW, may exercise discretion to waive, in whole or in part, the amount of any such payments where the recovery would be against equity and good conscience.
     (4) Whenever any payment of benefits under this title has been made pursuant to an adjudication by the department or by order of the board or any court and timely appeal therefrom has been made where the final decision is that any such payment was made pursuant to an erroneous adjudication, the recipient thereof shall repay it and recoupment may be made from any future payments due to the recipient on any claim ((whether state fund or self-insured)).
     (a) The director, pursuant to rules adopted in accordance with the procedures provided in the administrative procedure act, chapter 34.05 RCW, may exercise discretion to waive, in whole or in part, the amount of any such payments where the recovery would be against equity and good conscience. However, if the director waives in whole or in part any such payments due a self-insurer, the self-insurer shall be reimbursed the amount waived from the self-insured employer overpayment reimbursement fund.
     (b) ((The department shall collect information regarding self-insured claim overpayments resulting from final decisions of the board and the courts, and recoup such overpayments on behalf of the self-insurer from any open, new, or reopened state fund or self-insured claims. The department shall forward the amounts collected to the self-insurer to whom the payment is owed. The department may provide information as needed to any self-insurers from whom payments may be collected on behalf of the department or another self-insurer. Notwithstanding RCW 51.32.040, any self-insurer requested by the department to forward payments to the department pursuant to this subsection shall pay the department directly. The department shall credit the amounts recovered to the appropriate fund, or forward amounts collected to the appropriate self-insurer, as the case may be.
     (c)
)) If a self-insurer is not fully reimbursed within twenty-four months of the first attempt at recovery through the collection process pursuant to this subsection and by means of processes pursuant to subsection (6) of this section, the self-insurer shall be reimbursed for the remainder of the amount due from the self-insured employer overpayment reimbursement fund.
     (((d))) (c) For purposes of this subsection, "recipient" does not include health service providers whose treatment or services were authorized by the department or self-insurer.
     (((e))) (d) The department or self-insurer shall first attempt recovery of overpayments for health services from any entity that provided health insurance to the worker to the extent that the health insurance entity would have provided health insurance benefits but for workers' compensation coverage.
     (5)(a) Whenever any payment of benefits under this title has been induced by willful misrepresentation the recipient thereof shall repay any such payment together with a penalty of fifty percent of the total of any such payments and the amount of such total sum may be recouped from any future payments due to the recipient on any claim ((with the state fund or self-insurer)) against whom the willful misrepresentation was committed, as the case may be, and the amount of such penalty shall be placed in the supplemental pension fund. Such repayment or recoupment must be demanded or ordered within three years of the discovery of the willful misrepresentation.
     (b) For purposes of this subsection (5), it is willful misrepresentation for a person to obtain payments or other benefits under this title in an amount greater than that to which the person otherwise would be entitled. Willful misrepresentation includes:
     (i) Willful false statement; or
     (ii) Willful misrepresentation, omission, or concealment of any material fact.
     (c) For purposes of this subsection (5), "willful" means a conscious or deliberate false statement, misrepresentation, omission, or concealment of a material fact with the specific intent of obtaining, continuing, or increasing benefits under this title.
     (d) For purposes of this subsection (5), failure to disclose a work-type activity must be willful in order for a misrepresentation to have occurred.
     (e) For purposes of this subsection (5), a material fact is one which would result in additional, increased, or continued benefits, including but not limited to facts about physical restrictions, or work-type activities which either result in wages or income or would be reasonably expected to do so. Wages or income include the receipt of any goods or services. For a work-type activity to be reasonably expected to result in wages or income, a pattern of repeated activity must exist. For those activities that would reasonably be expected to result in wages or produce income, but for which actual wage or income information cannot be reasonably determined, the ((department)) commissioner shall impute wages pursuant to RCW 51.08.178(4).
     (6) The worker, beneficiary, or other person affected thereby shall have the right to contest an order assessing an overpayment pursuant to this section in the same manner and to the same extent as provided under RCW 51.52.050 and 51.52.060. In the event such an order becomes final under chapter 51.52 RCW and notwithstanding the provisions of subsections (1) through (5) of this section, the ((director, director's designee,)) department or self-insurer may file with the clerk in any county within the state a warrant in the amount of the sum representing the unpaid overpayment and/or penalty plus interest accruing from the date the order became final. The clerk of the county in which the warrant is filed shall immediately designate a superior court cause number for such warrant and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of the worker, beneficiary, or other person mentioned in the warrant, the amount of the unpaid overpayment and/or penalty plus interest accrued, and the date the warrant was filed. The amount of the warrant as docketed shall become a lien upon the title to and interest in all real and personal property of the worker, beneficiary, or other person against whom the warrant is issued, the same as a judgment in a civil case docketed in the office of such clerk. The sheriff shall then proceed in the same manner and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgment in the superior court. Such warrant so docketed shall be sufficient to support the issuance of writs of garnishment in favor of the department or self-insurer in the manner provided by law in the case of judgment, wholly or partially unsatisfied. The clerk of the court shall be entitled to a filing fee under RCW 36.18.012(10), which shall be added to the amount of the warrant. A copy of such warrant shall be mailed to the worker, beneficiary, or other person within three days of filing with the clerk.
     The director, ((director's designee)) department, or self-insurer may issue to any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state, a notice to withhold and deliver property of any kind if there is reason to believe that there is in the possession of such person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state, property that is due, owing, or belonging to any worker, beneficiary, or other person upon whom a warrant has been served for payments due the department or self-insurer. The notice and order to withhold and deliver shall be served by certified mail accompanied by an affidavit of service by mailing or served by the sheriff of the county, or by the sheriff's deputy, or by any authorized representative of the director, ((director's designee)) department, or self-insurer. Any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state upon whom service has been made shall answer the notice within twenty days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired or in the notice and order to withhold and deliver. In the event there is in the possession of the party named and served with such notice and order, any property that may be subject to the claim of the department or self-insurer, such property shall be delivered ((forthwith)) immediately to the director, the director's authorized representative, or self-insurer upon demand. If the party served and named in the notice and order fails to answer the notice and order within the time prescribed in this section, the court may, after the time to answer such order has expired, render judgment by default against the party named in the notice for the full amount, plus costs, claimed by the director, ((director's designee)) department, or self-insurer in the notice. In the event that a notice to withhold and deliver is served upon an employer and the property found to be subject thereto is wages, the employer may assert in the answer all exemptions provided for by chapter 6.27 RCW to which the wage earner may be entitled.
     This subsection shall only apply to orders assessing an overpayment which are issued on or after July 28, 1991: PROVIDED, That this subsection shall apply retroactively to all orders assessing an overpayment resulting from fraud, civil or criminal.
     (7) Orders assessing an overpayment which are issued on or after July 28, 1991, shall include a conspicuous notice of the collection methods available to the department or self-insurer.

Sec. 87   RCW 51.32.242 and 2008 c 280 s 3 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, each self-insured employer shall retain from the earnings of each of its workers that amount as shall be fixed from time to time by the director, the basis for measuring said amount to be determined by the director. These moneys shall only be retained from employees and remitted to the ((department)) commissioner in such manner and at such intervals as ((the department directs)) directed and shall be placed in the self-insured employer overpayment reimbursement fund. The moneys so collected shall be used exclusively for reimbursement to the reserve fund and to self-insured employers for benefits overpaid during the pendency of board or court appeals in which the self-insured employer prevails and has not recovered, and shall be no more than necessary to make such payments on a current basis.
     (2) None of the amount assessed for the employer overpayment reimbursement fund under this section may be retained from the earnings of workers covered under RCW 51.16.210.

Sec. 88   RCW 51.32.380 and 2003 c 379 s 26 are each amended to read as follows:
     If the department ((of labor and industries)) has received notice that an injured worker entitled to benefits payable under this chapter is in the custody of the department of corrections pursuant to a conviction and sentence, the department shall send all such benefits to the worker in care of the department of corrections, except those benefits payable to a beneficiary as provided in RCW 51.32.040 (3)(c) and (4). Failure of the department to send such benefits to the department of corrections shall not result in liability to any party for either department.

Sec. 89   RCW 51.36.010 and 2007 c 134 s 1 are each amended to read as follows:
     Upon the occurrence of any injury to a worker entitled to compensation under the provisions of this title, he or she shall receive proper and necessary medical and surgical services at the hands of a physician or licensed advanced registered nurse practitioner of his or her own choice, if conveniently located, and proper and necessary hospital care and services during the period of his or her disability from such injury. The ((department for state fund claims)) insurer shall pay((, in accordance with the department's fee schedule,)) for any alleged injury for which a worker files a claim, any initial prescription drugs provided in relation to that initial visit, without regard to whether the worker's claim for benefits is allowed. In all accepted claims, treatment shall be limited in point of duration as follows:
     In the case of permanent partial disability, not to extend beyond the date when compensation shall be awarded him or her, except when the worker returned to work before permanent partial disability award is made, in such case not to extend beyond the time when monthly allowances to him or her shall cease; in case of temporary disability not to extend beyond the time when monthly allowances to him or her shall cease: PROVIDED, That after any injured worker has returned to his or her work his or her medical and surgical treatment may be continued if, and so long as, such continuation is ((deemed necessary by the supervisor of industrial insurance to be)) necessary to his or her more complete recovery; in case of a permanent total disability not to extend beyond the date on which a lump sum settlement is made with him or her or he or she is placed upon the permanent pension roll: PROVIDED, HOWEVER, That the ((supervisor of industrial insurance, solely in his or her discretion,)) insurer may authorize continued medical and surgical treatment for conditions previously accepted ((by the department)) when such medical and surgical treatment is ((deemed)) necessary ((by the supervisor of industrial insurance)) to protect such worker's life or provide for the administration of medical and therapeutic measures including payment of prescription medications, but not including those controlled substances currently scheduled by the state board of pharmacy as Schedule I, II, III, or IV substances under chapter 69.50 RCW, which are necessary to alleviate continuing pain which results from the industrial injury. In order to authorize such continued treatment the written order of the ((supervisor of industrial insurance)) director issued in advance of the continuation shall be necessary.
     The ((supervisor of industrial insurance, the supervisor's designee, or a self-))insurer, in his or her sole discretion, may authorize inoculation or other immunological treatment in cases in which a work-related activity has resulted in probable exposure of the worker to a potential infectious occupational disease. Authorization of such treatment does not bind the ((department or self-))insurer in any adjudication of a claim by the same worker or the worker's beneficiary for an occupational disease.

Sec. 90   RCW 51.36.015 and 1994 c 94 s 1 are each amended to read as follows:
     Subject to the other provisions of this title, the health services that are available to an injured worker under RCW 51.36.010 include chiropractic care and evaluation. For the purposes of assisting the ((department)) insurer in making claims determinations, an injured worker may be required by the ((department)) insurer to undergo examination by a chiropractor licensed under chapter 18.25 RCW.

Sec. 91   RCW 51.36.020 and 2008 c 54 s 1 are each amended to read as follows:
     (1) When the injury to any worker is so serious as to require his or her being taken from the place of injury to a place of treatment, his or her employer shall, at the expense of the ((medical aid fund, or self-insurer, as the case may be)) insurer, furnish transportation to the nearest place of proper treatment.
     (2) Every worker whose injury results in the loss of one or more limbs or eyes shall be provided with proper artificial substitutes and every worker, who suffers an injury to an eye producing an error of refraction, shall be once provided proper and properly equipped lenses to correct such error of refraction and his or her disability rating shall be based upon the loss of sight before correction.
     (3) Every worker whose accident results in damage to or destruction of an artificial limb, eye, or tooth, shall have same repaired or replaced.
     (4) Every worker whose hearing aid or eyeglasses or lenses are damaged, destroyed, or lost as a result of an industrial accident shall have the same restored or replaced. The ((department or self-))insurer shall be liable only for the cost of restoring damaged hearing aids or eyeglasses to their condition at the time of the accident.
     (5)(a) All mechanical appliances necessary in the treatment of an injured worker, such as braces, belts, casts, and crutches, shall be provided and all mechanical appliances required as permanent equipment after treatment has been completed shall continue to be provided or replaced without regard to the date of injury or date treatment was completed, notwithstanding any other provision of law.
     (b) Injured workers shall be reimbursed for reasonable travel expenses when travel is required in order to repair, replace, or otherwise alter prosthetics, orthotics, or similar permanent mechanical appliances after closure of the claim. This subsection (5)(b) does not include travel for the repair or replacement of hearing aid devices.
     (6) A worker, whose injury is of such short duration as to bring him or her within the time limit provisions of RCW 51.32.090, shall nevertheless receive during the omitted period medical, surgical, and hospital care and service and transportation under the provisions of this chapter.
     (7) Whenever ((in the sole discretion of the supervisor)) it is reasonable and necessary to provide residence modifications necessary to meet the needs and requirements of the worker who has sustained catastrophic injury, the ((department or self-))insurer ((may be ordered to)) shall pay an amount not to exceed the state's average annual wage for one year as determined under RCW 50.04.355, as now existing or hereafter amended, toward the cost of such modifications or construction. Such payment shall only be made for the construction or modification of a residence in which the injured worker resides. Only one residence of any worker may be modified or constructed under this subsection((, although the supervisor may order more than one payment for any one home, up to the maximum amount permitted by this section)).
     (8)(a) Whenever ((in the sole discretion of the supervisor)) it is reasonable and necessary to modify a motor vehicle owned by a worker who has become an amputee or becomes paralyzed because of an industrial injury, the ((supervisor may order)) insurer shall pay up to fifty percent of the state's average annual wage for one year, as determined under RCW 50.04.355, ((to be paid by the department or self-insurer)) toward the costs thereof.
     (b) ((In the sole discretion of the supervisor after his or her review,)) The amount paid under this subsection may be increased by no more than four thousand dollars by written order of the ((supervisor)) department.
     (9) The benefits provided by subsections (7) and (8) of this section are available to any otherwise eligible worker regardless of the date of industrial injury.

Sec. 92   RCW 51.36.022 and 2005 c 411 s 1 are each amended to read as follows:
     (1) The legislature finds that there is a need to clarify the process and standards under which ((the department)) an insurer provides residence modification assistance to workers who have sustained catastrophic injury.
     (2) The director shall adopt rules that take effect no later than nine months after July 24, 2005, to establish guidelines and processes for residence modification pursuant to RCW 51.36.020(7).
     (3) In developing rules under this section, the director shall consult with interested persons, including persons with expertise in the rehabilitation of catastrophically disabled individuals and modifications for adaptive housing.
     (4) These rules must address at least the following:
     (a) The process for a catastrophically injured worker to access the residence modification benefits provided by RCW 51.36.020; and
     (b) How the ((department)) insurer may address the needs and preferences of the individual worker on a case-by-case basis taking into account information provided by the injured worker. For purposes of determining the needs and requirements of the worker under RCW 51.36.020, including whether a modification is medically necessary, the ((department)) insurer must consider all available information regarding the medical condition and physical restrictions of the injured worker, including the opinion of the worker's attending health services provider.
     (5) The rules should be based upon nationally accepted guidelines and publications addressing adaptive residential housing. The department must consider the guidelines established by the United States department of veterans affairs in their publication entitled "Handbook for Design: Specially Adapted Housing," and the recommendations published in "The Accessible Housing Design File" by Barrier Free Environments, Inc.
     (6) In developing rules under this section, the director shall consult with other persons with an interest in improving standards for adaptive housing.
     (7) The director shall report by December 2007 to the appropriate committees of the legislature on the rules adopted under this section.

Sec. 93   RCW 51.36.040 and 1977 ex.s. c 350 s 59 are each amended to read as follows:
     The benefits of Title 51 RCW shall be provided to each worker receiving an injury, as defined therein, during the course of his or her employment and also during his or her lunch period as established by the employer while on the jobsite. The jobsite shall consist of the premises as are occupied, used or contracted for by the employer for the business of work process in which the employer is then engaged: PROVIDED, That if a worker by reason of his or her employment leaves such jobsite under the direction, control or request of the employer and if such worker is injured during his or her lunch period while so away from the jobsite, the worker shall receive the benefits as provided herein: AND PROVIDED FURTHER, That the employer need not consider the lunch period in worker hours for the purpose of reporting to the ((department)) insurer unless the worker is actually paid for such period of time.

Sec. 94   RCW 51.36.060 and 2004 c 65 s 12 are each amended to read as follows:
     Physicians or licensed advanced registered nurse practitioners examining or attending injured workers under this title shall comply with rules and regulations adopted by the director, and shall make such reports as may be requested by the ((department or self-))insurer upon the condition or treatment of any such worker, or upon any other matters concerning such workers in their care. Except under RCW 49.17.210 and 49.17.250, all medical information in the possession or control of any person and relevant to the particular injury in the opinion of the department pertaining to any worker whose injury or occupational disease is the basis of a claim under this title shall be made available at any stage of the proceedings to the employer, the claimant's representative, the insurer, and the department upon request, and no person shall incur any legal liability by reason of releasing such information.

Sec. 95   RCW 51.36.070 and 2001 c 152 s 2 are each amended to read as follows:
     Whenever the director or the ((self-))insurer deems it necessary in order to resolve any medical issue, a worker shall submit to examination by a physician or physicians selected by the director or the insurer, with the rendition of a report to the person ordering the examination. The department or self-insurer shall provide the physician performing an examination with all relevant medical records from the worker's claim file. The director, in his or her discretion, may charge the cost of such examination or examinations to the ((self-))insurer ((or to the medical aid fund as the case may be)). The cost of said examination shall include payment to the worker of reasonable expenses connected therewith.

Sec. 96   RCW 51.36.120 and 2005 c 274 s 325 are each amended to read as follows:
     When contracting for health care services and equipment, the ((department)) state fund, upon request of a contractor, shall keep confidential financial and valuable trade information, which shall be exempt from public inspection and copying under chapter 42.56 RCW.

Sec. 97   RCW 51.36.140 and 2007 c 282 s 1 are each amended to read as follows:
     (1) The department shall establish an industrial insurance medical advisory committee. The industrial insurance medical advisory committee shall advise the department on matters related to the provision of safe, effective, and cost-effective treatments for injured workers, including but not limited to the development of practice guidelines and coverage criteria, review of coverage decisions and technology assessments, review of medical programs, and review of rules pertaining to health care issues. The industrial insurance medical advisory committee may provide peer review and advise and assist the department in the resolution of controversies, disputes, and problems between the department and the providers of medical care. The industrial insurance medical advisory committee must consider the best available scientific evidence and expert opinion of committee members. The department may hire any expert or service or create an ad hoc committee, group, or subcommittee it deems necessary to fulfill the purposes of the industrial insurance medical advisory committee. In addition, the industrial insurance medical advisory committee may consult nationally recognized experts in evidence-based health care on particularly controversial issues.
     (2) The industrial insurance medical advisory committee is composed of up to fourteen members appointed by the director. The members must not include any department employees. The director shall select twelve members from the nominations provided by statewide clinical groups, specialties, and associations, including but not limited to the following: Family or general practice, orthopedics, neurology, neurosurgery, general surgery, physical medicine and rehabilitation, psychiatry, internal medicine, osteopathic, pain management, and occupational medicine. At least two members must be physicians who are recognized for expertise in evidence-based medicine. The director may choose up to two additional members, not necessarily from the nominations submitted, who have expertise in occupational medicine.
     (3) The industrial insurance medical advisory committee shall choose its chair from among its membership.
     (4) The members of the industrial insurance medical advisory committee, including hired experts and any ad hoc group or subcommittee: (a) Are immune from civil liability for any official acts performed in good faith to further the purposes of the industrial insurance medical advisory committee; and (b) may be compensated for participation in the work of the industrial insurance medical advisory committee in accordance with a personal services contract to be executed after appointment and before commencement of activities related to the work of the industrial insurance medical advisory committee.
     (5) The members of the industrial insurance medical advisory committee shall disclose all potential financial conflicts of interest including contracts with or employment by a manufacturer, provider, or vendor of health technologies, drugs, medical devices, diagnostic tools, or other medical services during their term or for eighteen months before their appointment. As a condition of appointment, each person must agree to the terms and conditions regarding conflicts of interest as determined by the director.
     (6) The industrial insurance medical advisory committee shall meet at the times and places designated by the director and hold meetings during the year as necessary to provide advice to the director. Meetings of the industrial insurance medical advisory committee are subject to chapter 42.30 RCW, the open public meetings act.
     (7) The industrial insurance medical advisory committee shall coordinate with the state health technology assessment program and state prescription drug program as necessary. As provided by RCW 70.14.100 and 70.14.050, the decisions of the state health technology assessment program and those of the state prescription drug program hold greater weight than decisions made by the department's industrial insurance medical advisory committee under Title 51 RCW.
     (8) Neither the industrial insurance medical advisory committee nor any group is an agency for purposes of chapter 34.05 RCW.
     (9) The department shall provide administrative support to the industrial insurance medical advisory committee and adopt rules to carry out the purposes of this section.
     (10) The chair and ranking minority member of the house of representatives commerce and labor committee or the chair and ranking minority member of the senate labor, commerce, research and development committee, or successor committees, may request that the industrial insurance medical advisory committee review a medical issue related to industrial insurance and provide a written report to the house of representatives commerce and labor committee and the senate labor, commerce, research and development committee, or successor committees. The industrial insurance medical advisory committee is not required to act on the request.
     (((11) The workers' compensation advisory committee may request that the industrial insurance medical advisory committee consider specific medical issues that have arisen multiple times during the work of the workers' compensation advisory committee. The industrial insurance medical advisory committee is not required to act on the request.))

Sec. 98   RCW 51.36.150 and 2007 c 282 s 2 are each amended to read as follows:
     (1) The department shall establish an industrial insurance chiropractic advisory committee. The industrial insurance chiropractic advisory committee shall advise the department on matters related to the provision of safe, effective, and cost-effective chiropractic treatments for injured workers. The industrial insurance chiropractic advisory committee may provide peer review and advise and assist the department in the resolution of controversies, disputes, and problems between the department and the providers of chiropractic care.
     (2) The industrial insurance chiropractic advisory committee is composed of up to nine members appointed by the director. The members must not include any department employees. The director must consider nominations from recognized statewide chiropractic groups such as the Washington state chiropractic association. At least two members must be chiropractors who are recognized for expertise in evidence-based practice or occupational health.
     (3) The industrial insurance chiropractic advisory committee shall choose its chair from among its membership.
     (4) The members of the industrial insurance chiropractic advisory committee and any ad hoc group or subcommittee: (a) Are immune from civil liability for any official acts performed in good faith to further the purposes of the industrial insurance chiropractic advisory committee; and (b) may be compensated for participation in the work of the industrial insurance chiropractic advisory committee in accordance with a personal services contract to be executed after appointment and before commencement of activities related to the work of the industrial insurance chiropractic advisory committee.
     (5) The members of the industrial insurance chiropractic advisory committee shall disclose all potential financial conflicts of interest including contracts with or employment by a manufacturer, provider, or vendor of health technologies, drugs, medical devices, diagnostic tools, or other medical services during their term or for eighteen months before their appointment. As a condition of appointment, each person must agree to the terms and conditions regarding conflicts of interest as determined by the director.
     (6) The industrial insurance chiropractic advisory committee shall meet at the times and places designated by the director and hold meetings during the year as necessary to provide advice to the director. Meetings of the industrial insurance chiropractic advisory committee are subject to chapter 42.30 RCW, the open public meetings act.
     (7) The industrial insurance chiropractic advisory committee shall coordinate with the state health technology assessment program and state prescription drug program as necessary. As provided by RCW 70.14.100 and 70.14.050, the decisions of the state health technology assessment program and those of the state prescription drug program hold greater weight than decisions made by the department's industrial insurance chiropractic advisory committee under Title 51 RCW.
     (8) Neither the industrial insurance chiropractic advisory committee nor any group is an agency for purposes of chapter 34.05 RCW.
     (9) The department shall provide administrative support to the industrial insurance chiropractic advisory committee and adopt rules to carry out the purposes of this section.
     (10) The chair and ranking minority member of the house of representatives commerce and labor committee or the chair and ranking minority member of the senate labor, commerce, research and development committee, or successor committees, may request that the industrial insurance chiropractic advisory committee review a medical issue related to industrial insurance and provide a written report to the house of representatives commerce and labor committee and the senate labor, commerce, research and development committee, or successor committees. The industrial insurance chiropractic advisory committee is not required to act on the request.
     (((11) The workers' compensation advisory committee may request that the industrial insurance chiropractic advisory committee consider specific medical issues that have arisen multiple times during the work of the workers' compensation advisory committee. The industrial insurance chiropractic advisory committee is not required to act on the request.))

Sec. 99   RCW 51.44.040 and 2005 c 475 s 1 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. 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)) Assessments for the second injury fund ((from the accident fund)) shall be ((made pursuant to)) imposed and collected from all insurers under rules adopted by the director.
     (3)(a) ((Assessments for the second injury fund shall be imposed on self-insurers pursuant to rules adopted by the director. Such)) Rules adopted under subsection (2) of this section 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 the fund on account of claims made against ((self-))insurers bears to the total sum of payments from the fund.
     (ii) Except as provided in section 2, chapter 475, Laws of 2005, beginning with assessments imposed on or after July 1, 2009, 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.

Sec. 100   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)) Assessments for the second injury fund ((from the accident fund)) shall be ((made pursuant to rules and regulations promulgated)) imposed and collected from all insurers under rules adopted by the director.
     (((3) 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 in the proportion that the payments made from such fund on account of claims made against self-insurers bears to the total sum of payments from such fund.))

Sec. 101   RCW 51.44.070 and 1992 c 124 s 1 are each amended to read as follows:
     (1) For every case resulting in death or permanent total disability ((the department shall transfer on its books from the accident fund of the proper class and/or appropriate account to the "reserve fund" a sum of money for that case equal to the estimated present cash value of the monthly payments provided for it, to be calculated upon the basis of an annuity covering the payments in this title provided to be made for the case. Such annuity values shall be based upon rates of mortality, disability, remarriage, and interest as determined by the department, taking into account the experience of the reserve fund in such respects.
     Similarly, a self-insurer in these circumstances
)) a self-insurer shall pay into the reserve fund a sum of money ((computed in the same manner, and the disbursements therefrom shall be made as in other cases)) for that case equal to the estimated present cash value of the monthly payments in this title provided to be made for the case. The annuity values shall be based on rates of mortality, disability, remarriage, and interest as determined by the state insurance commissioner, taking into account the commissioner's experience in these respects.
     (2) As an alternative to payment procedures ((otherwise)) provided under ((law)) subsection (1) of this section, in the event of death or permanent total disability to workers of self-insured employers, a self-insured employer may upon establishment of such obligation file with the department a bond, an assignment of account from a federally or state chartered commercial banking institution authorized to conduct business in the state of Washington, or purchase an annuity, in an amount deemed by the department to be reasonably sufficient to insure payment of the pension benefits provided by law. Any purchase of an annuity shall be from an institution meeting the following minimum requirements: (a) The institution must be rated no less than "A+" by A.M. Best, and no less than "AA" by Moody's and by Standard & Poor's; (b) the value of the assets of the institution must not be less than ten billion dollars; (c) not more than ten percent of the institution's assets may include bonds that are rated less than "BBB" by Moody's and Standard & Poor's; (d) not more than five percent of the assets may be held as equity in real estate; and (e) not more than twenty-five percent of the assets may be first mortgages, and not more than five percent may be second mortgages. The department shall adopt rules governing assignments of account and annuities. Such rules shall ensure that the funds are available if needed, even in the case of failure of the banking institution, the institution authorized to provide annuities, or the employer's business.
     The annuity value for every such case shall be determined by the department based upon the department's experience as to rates of mortality, disability, remarriage, and interest. The amount of the required bond, assignment of account, or annuity may be reviewed and adjusted periodically by the department, based upon periodic redeterminations by the department as to the outstanding annuity value for the case.
     Under such alternative, the department shall administer the payment of this obligation to the beneficiary or beneficiaries. The department shall be reimbursed for all such payments from the self-insured employer through periodic charges not less than quarterly in a manner to be determined by the director. The self-insured employer shall additionally pay to the department a deposit equal to the first three months' payments otherwise required under RCW 51.32.050 and 51.32.060. Such deposit shall be placed in the reserve fund in accordance with RCW 51.44.140 and shall be returned to the respective self-insured employer when monthly payments are no longer required for such particular obligation.
     If a self-insurer delays or refuses to reimburse the department beyond fifteen days after the reimbursement charges become due, there shall be a penalty paid by the self-insurer upon order of the director of an additional amount equal to twenty-five percent of the amount then due which shall be paid into the ((pension)) reserve fund. Such an order shall conform to the requirements of RCW 51.52.050.

Sec. 102   RCW 51.44.090 and 1972 ex.s. c 43 s 31 are each amended to read as follows:
     The state treasurer shall keep accurate accounts of the reserve fund and the investment and earnings thereof, to the end that the total reserve fund shall at all times, as nearly as may be, be properly and fully invested and, to meet current demands for pension or lump sum payments, may, if necessary, make temporary loans to the reserve fund out of the ((accident)) industrial insurance administrative fund, repaying the same from the earnings of the reserve fund or from collections of its investments or, if necessary, sales of the same.

Sec. 103   RCW 51.44.100 and 1990 c 80 s 1 are each amended to read as follows:
     Whenever, in the judgment of the state investment board, there shall be in the ((accident fund, medical aid)) state fund, reserve fund, or the supplemental pension fund, funds in excess of that amount deemed by the state investment board to be sufficient to meet the current expenditures properly payable therefrom, the state investment board may invest and reinvest such excess funds in the manner prescribed by RCW 43.84.150, and not otherwise.
     The state investment board may give consideration to the investment of excess funds in federally insured student loans made to persons in vocational training or retraining or reeducation programs. The state investment board may make such investments by purchasing from savings and loan associations, commercial banks, mutual savings banks, credit unions and other institutions authorized to be lenders under the federally insured student loan act, organized under federal or state law and operating in this state loans made by such institutions to residents of the state of Washington particularly for the purpose of vocational training or reeducation: PROVIDED, That the state investment board shall purchase only that portion of any loan which is guaranteed or insured by the United States of America, or by any agency or instrumentality of the United States of America: PROVIDED FURTHER, That the state investment board is authorized to enter into contracts with such savings and loan associations, commercial banks, mutual savings banks, credit unions, and other institutions authorized to be lenders under the federally insured student loan act to service loans purchased pursuant to this section at an agreed upon contract price.

Sec. 104   RCW 51.44.115 and 2005 c 387 s 1 are each amended to read as follows:
     (1) The department shall:
     (a) Prepare financial statements on the state fund in accordance with generally accepted accounting principles((, including but not limited to financial statements on the accident fund, the medical aid fund, the supplemental pension fund, and the second injury fund)). Statements must be presented separately by fund and in the aggregate; and
     (b) Prepare financial information for the ((accident fund, medical aid fund, and pension reserve)) state fund based on statutory accounting practices and principles promulgated by the national association of insurance commissioners for the purpose of maintaining actuarial solvency of these funds.
     (2) Beginning in 2006, and, to avoid duplication, coordinated with any audit that may be conducted under RCW 43.09.310, the state auditor shall conduct annual audits of the state fund. As part of the audits required under this section, the state auditor may contract with firms qualified to perform all or part of the financial audit, as necessary.
     (a) The firm or firms conducting the reviews shall be familiar with the accounting standards applicable to the accounts under review and shall have experience in workers' compensation reserving, discounting, and rate making.
     (b) The scope of the financial audit shall include, but is not limited to:
     (i) An opinion on whether the financial statements were prepared in accordance with generally accepted accounting principles;
     (ii) An assessment of the financial impact of the proposed rate level on the actuarial solvency of the ((accident, medical aid, and pension reserve funds)) state fund, taking into consideration the risks inherent with insurance and the effects of the actuarial assumptions, discount rates, reserving, retrospective rating program, refunds, and individual employer rate classes, as well as the standard accounting principles used for insurance underwriting purposes; and
     (iii) A statement of actuarial opinion on whether the loss and loss adjustment expense reserves ((for the accident, medical aid, and pension reserve funds)) were prepared in accordance with generally accepted actuarial principles.
     (c) The department shall cooperate with the state auditor in all respects and shall permit the state auditor full access to all information deemed necessary for a true and complete review.
     (d) The cost of the audit shall be paid by the state fund under separate contract.
     (3) The state auditor shall issue an annual report to the governor, the leaders of the majority and minority caucuses in the senate and the house of representatives, the director of the office of financial management, and the director of the department, on the results of the financial audit and reviews, within six months of the end of the fiscal year. The report may include recommendations.
     (4) The audit report shall be available for public inspection.
     (5) Within ninety days after the state auditor completes and delivers to the appropriate authority an audit under subsection (2) of this section, the director of the department shall notify the state auditor in writing of the measures taken and proposed to be taken, if any, to respond to the recommendations of the audit report. The state auditor may extend the ninety-day period for good cause.

Sec. 105   RCW 51.48.010 and 1985 c 347 s 2 are each amended to read as follows:
     Every employer shall be liable for the penalties described in this title and may also be liable if an injury or occupational disease has been sustained by a worker prior to the time he or she has secured the payment of such compensation to a penalty in a sum not less than fifty percent nor more than one hundred percent of the cost for such injury or occupational disease. Any employer who has failed to secure payment of compensation for his or her workers covered under this title may also be liable to a maximum penalty in a sum of five hundred dollars or in a sum double the amount of premiums incurred prior to securing payment of compensation under this title, whichever is greater, for the benefit of the ((medical aid fund)) assigned risk pool.

Sec. 106   RCW 51.48.020 and 2008 c 120 s 9 are each amended to read as follows:
     (1)(a) Any employer, who knowingly misrepresents to the ((department)) insurer the amount of his or her payroll or employee hours upon which the premium under this title is based, shall be liable to the ((state)) insurer for up to ten times the amount of the difference in premiums paid and the amount the employer should have paid and for the reasonable expenses of auditing his or her books and collecting such sums. Such liability may be enforced in the name of the ((department)) insurer.
     (b) An employer is guilty of a class C felony, if:
     (i) The employer, with intent to evade determination and payment of the correct amount of the premiums, knowingly makes misrepresentations regarding payroll or employee hours; or
     (ii) The employer engages in employment covered under this title and, with intent to evade determination and payment of the correct amount of the premiums, knowingly fails to secure payment of compensation under this title or knowingly fails to report the payroll or employee hours related to that employment.
     (c) Upon conviction under (b) of this subsection, the employer shall be ordered by the court to pay the premium due and owing, a penalty in the amount of one hundred percent of the premium due and owing, and interest on the premium and penalty from the time the premium was due until the date of payment. The court shall:
     (i) Collect the premium and interest and transmit it to the ((department of labor and industries)) insurer, or to the assigned risk pool if the employer was convicted for failure to secure compensation; and
     (ii) Collect the penalty and disburse it pro rata as follows: One-third to the investigative agencies involved; one-third to the prosecuting authority; and one-third to the general fund of the county in which the matter was prosecuted.
     Payments collected under this subsection must be applied until satisfaction of the obligation in the following order: Premium payments; penalty; and interest.
     (d) An employer found to have violated this subsection shall, in addition to any other penalties, be subject to the penalties in RCW 39.12.055.
     (2) Any person claiming benefits under this title, who knowingly gives false information required in any claim or application under this title shall be guilty of a felony, or gross misdemeanor in accordance with the theft and anticipatory provisions of Title 9A RCW.

Sec. 107   RCW 51.48.030 and 1986 c 9 s 8 are each amended to read as follows:
     Every employer who fails to keep and preserve the records required by this title or fails to make the reports provided in this title shall be subject to a penalty determined by the director but not to exceed two hundred fifty dollars or two hundred percent of the quarterly tax for each such offense, whichever is greater. Any employer who fails to keep and preserve the records adequate to determine taxes due shall be forever barred from questioning, in an appeal before the board of industrial insurance appeals or the courts, the correctness of any assessment by the ((department)) insurer based on any period for which such records have not been kept and preserved.

Sec. 108   RCW 51.48.040 and 2003 c 53 s 282 are each amended to read as follows:
     (1) The books, records and payrolls of the employer pertinent to the administration of this title shall always be open to inspection by the ((department or its traveling auditor, agent or assistant,)) insurer for the purpose of ascertaining the correctness of the payroll, the persons employed, and such other information as may be necessary ((for the department and its management)) under this title.
     (2) Refusal on the part of the employer to submit his or her books, records, and payrolls for such inspection ((to the department, or any assistant presenting written authority from the director,)) shall subject the offending employer to a penalty determined by the director but not to exceed two hundred fifty dollars for each offense and the individual who personally gives such refusal is guilty of a misdemeanor.
     (3) Any employer who fails to allow adequate inspection in accordance with the requirements of this section is subject to having its certificate of coverage revoked ((by order of the department)) and is forever barred from questioning in any proceeding in front of the board of industrial insurance appeals or any court, the correctness of any assessment ((by the department)) based on any period for which such records have not been produced for inspection.

Sec. 109   RCW 51.48.050 and 1980 c 14 s 13 are each amended to read as follows:
     It shall be unlawful for any employer to directly or indirectly demand or collect from any of his or her workers any sum of money whatsoever for or on account of medical, surgical, hospital, or other treatment or transportation of injured workers, other than as specified in RCW 51.16.140, and any employer who directly or indirectly violates the ((foregoing)) provisions of this section shall be liable to the state for the benefit of the ((medical aid fund)) assigned risk pool in ten times the amount so demanded or collected, and such employer and every officer, agent, or servant of such employer knowingly participating therein shall also be guilty of a misdemeanor.

Sec. 110   RCW 51.48.055 and 2004 c 243 s 3 are each amended to read as follows:
     (1) Upon termination, dissolution, or abandonment of a corporate or limited liability company business, any officer, member, manager, or other person having control or supervision of payment and/or reporting of industrial insurance, or who is charged with the responsibility for the filing of returns, is personally liable for any unpaid premiums and interest and penalties on those premiums if such officer or other person willfully fails to pay or to cause to be paid any premiums due ((the department)) under chapter 51.16 RCW.
     For purposes of this subsection "willfully fails to pay or to cause to be paid" means that the failure was the result of an intentional, conscious, and voluntary course of action.
     (2) The officer, member, manager, or other person is liable only for premiums that became due during the period he or she had the control, supervision, responsibility, or duty to act for the corporation described in subsection (1) of this section, plus interest and penalties on those premiums.
     (3) The officer, member, manager, or other person is not liable if that person is not exempt from mandatory coverage under RCW 51.12.020 and was directed not to pay the employer's premiums by someone who is exempt.
     (4) The officer, member, manager, or other person is not liable if all of the assets of the corporation or limited liability company have been applied to its debts through bankruptcy or receivership.
     (5) Any person having been issued a notice of assessment under this section is entitled to ((the)) appeal ((procedures under RCW 51.48.131)).
     (6) This section does not relieve the corporation or limited liability company of its liabilities under Title 51 RCW or otherwise impair other tax collection remedies afforded by law.
     (7) Collection authority and procedures prescribed in this chapter apply to collections under this section.

Sec. 111   RCW 51.48.060 and 2004 c 65 s 14 are each amended to read as follows:
     Any physician or licensed advanced registered nurse practitioner who fails, neglects or refuses to file a report ((with the director,)) as required by this title, within five days of the date of treatment, showing the condition of the injured worker at the time of treatment, a description of the treatment given, and an estimate of the probable duration of the injury, or who fails or refuses to render all necessary assistance to the injured worker, as required by this title, shall be subject to a civil penalty determined by the director but not to exceed two hundred fifty dollars.

Sec. 112   RCW 51.48.080 and 1985 c 347 s 7 are each amended to read as follows:
     Every person, firm or corporation who violates or fails to obey, observe or comply with any rule of the ((department promulgated)) commissioner adopted under authority of this title((,)) shall be subject to a penalty of not to exceed five hundred dollars.

Sec. 113   RCW 51.48.090 and 1961 c 23 s 51.48.090 are each amended to read as follows:
     Civil penalties to the state under this title shall be collected by civil action in the name of the state and paid into the ((accident fund)) assigned risk pool unless a different fund is designated.

Sec. 114   RCW 51.48.103 and 2008 c 120 s 8 are each amended to read as follows:
     (1) It is a gross misdemeanor:
     (a) For any employer to engage in business subject to this title without having obtained a certificate of coverage as provided for in this title;
     (b) For the president, vice president, secretary, treasurer, or other officer of any company to cause or permit the company to engage in business subject to this title without having obtained a certificate of coverage as provided for in this title.
     (2) It is a class C felony punishable according to chapter 9A.20 RCW:
     (a) For any employer to engage in business subject to this title after the employer's certificate of coverage has been revoked ((by order of the department));
     (b) For the president, vice president, secretary, treasurer, or other officer of any company to cause or permit the company to engage in business subject to this title after revocation of a certificate of coverage.
     (3) An employer found to have violated this section shall, in addition to any other penalties, be subject to the penalties in RCW 39.12.055.

Sec. 115   RCW 51.48.250 and 1986 c 200 s 4 are each amended to read as follows:
     (1) No person, firm, corporation, partnership, association, agency, institution, or other legal entity, but not including an industrially injured recipient of health service, shall, on behalf of himself or others, obtain or attempt to obtain payments under this chapter in a greater amount than that to which entitled by means of:
     (a) A willful false statement;
     (b) Willful misrepresentation, or by concealment of any material facts; or
     (c) Other fraudulent scheme or device, including, but not limited to:
     (i) Billing for services, drugs, supplies, or equipment that were not furnished, of lower quality, or a substitution or misrepresentation of items billed; or
     (ii) Repeated billing for purportedly covered items, which were not in fact so covered.
     (2) Any person, firm, corporation, partnership, association, agency, institution, or other legal entity knowingly violating any of the provisions of subsection (1) of this section shall be liable for repayment of any excess payments received, plus interest on the amount of the excess benefits or payments at the rate of one percent each month for the period from the date upon which payment was made to the date upon which repayment is made ((to the state)). Such person or other entity shall further, in addition to any other penalties provided by law, be subject to civil penalties. The director ((of the department of labor and industries)) may assess civil penalties in an amount not to exceed the greater of one thousand dollars or three times the amount of such excess benefits or payments: PROVIDED, That these civil penalties shall not apply to any acts or omissions occurring prior to April 1, 1986.
     (3) A criminal action need not be brought against a person, firm, corporation, partnership, association, agency, institution, or other legal entity for that person or entity to be civilly liable under this section.
     (4) Civil penalties shall be deposited in the general fund upon their receipt.

Sec. 116   RCW 51.48.260 and 1986 c 200 s 3 are each amended to read as follows:
     Any person, firm, corporation, partnership, association, agency, institution, or other legal entity, but not including an industrially injured recipient of health services, that, without intent to violate this chapter, obtains payments under Title 51 RCW to which such person or entity is not entitled, shall be liable for: (1) Any excess payments received; and (2) interest on the amount of excess payments at the rate of one percent each month for the period from the date upon which payment was made to the date upon which repayment is made ((to the state)).

Sec. 117   RCW 51.52.030 and 1961 c 23 s 51.52.030 are each amended to read as follows:
     The board may incur such expenses as are reasonably necessary to carry out its duties ((hereunder)), which expenses shall be paid((, one-half from the accident fund and one-half from the medical aid)) from the industrial insurance administrative fund upon vouchers approved by the board.

Sec. 118   RCW 51.52.050 and 2008 c 280 s 1 are each amended to read as follows:
     (1) Whenever the ((department)) insurer has made any order, decision, or award, it shall promptly serve the worker, beneficiary, employer, or other person affected thereby, with a copy thereof by mail, which shall be addressed to such person at his or her last known address as shown by the records of the ((department)) insurer. The copy, in case the same is a final order, decision, or award, shall bear on the same side of the same page on which is found the amount of the award, a statement, set in black faced type of at least ten point body or size, that such final order, decision, or award shall become final within sixty days from the date the order is communicated to the parties unless a written request for reconsideration is filed with the ((department of labor and industries, Olympia)) insurer, or an appeal is filed with the board of industrial insurance appeals, Olympia. However, ((a department)) an order or decision making demand, whether with or without penalty, for repayment of sums paid to a provider of medical, dental, vocational, or other health services rendered to an industrially injured worker, shall state that such order or decision shall become final within twenty days from the date the order or decision is communicated to the parties unless a written request for reconsideration is filed with the ((department of labor and industries, Olympia)) insurer, or an appeal is filed with the board of industrial insurance appeals, Olympia.
     (2)(a) Whenever the ((department)) commissioner has taken any action or made any decision relating to any phase of the administration of this title the worker, beneficiary, employer, or other person aggrieved thereby may request reconsideration of the department, or may appeal to the board. In an appeal before the board, the appellant shall have the burden of proceeding with the evidence to establish a prima facie case for the relief sought in such appeal.
     (b) An order ((by the department)) awarding benefits shall become effective and benefits due on the date issued. Subject to (b)(i) and (ii) of this subsection, if the ((department)) order is appealed the order shall not be stayed pending a final decision on the merits unless ordered by the board. Upon issuance of the order granting the appeal, the board will provide the worker with notice concerning the potential of an overpayment of benefits paid pending the outcome of the appeal and the requirements for interest on unpaid benefits pursuant to RCW 51.52.135. A worker may request that benefits cease pending appeal at any time following the employer's motion for stay or the board's order granting appeal. The request must be submitted in writing to the employer, the board, and the ((department)) insurer. Any employer may move for a stay of the order on appeal, in whole or in part. The motion must be filed within fifteen days of the order granting appeal. The board shall conduct an expedited review of the claim file provided by the ((department)) insurer as it existed on the date of the ((department)) order. The board shall issue a final decision within twenty-five days of the filing of the motion for stay or the order granting appeal, whichever is later. The board's final decision may be appealed to superior court in accordance with RCW 51.52.110. The board shall grant a motion to stay if the moving party demonstrates that it is more likely than not to prevail on the facts as they existed at the time of the order on appeal. The board shall not consider the likelihood of recoupment of benefits as a basis to grant or deny a motion to stay. If a self-insured employer prevails on the merits, any benefits paid may be recouped pursuant to RCW 51.32.240.
     (i) If upon reconsideration requested by a worker or medical provider, the ((department)) insurer has ordered an increase in a permanent partial disability award from the amount reflected in an earlier order, the award reflected in the earlier order shall not be stayed pending a final decision on the merits. However, the increase is stayed without further action by the board pending a final decision on the merits.
     (ii) If any party appeals an order establishing a worker's wages or the compensation rate at which a worker will be paid temporary or permanent total disability or loss of earning power benefits, the worker shall receive payment pending a final decision on the merits based on the following:
     (A) When the employer is self-insured, the wage calculation or compensation rate the employer most recently submitted to the ((department)) commissioner; or
     (B) When the employer is insured through ((the state fund)) an insurer, the highest wage amount or compensation rate uncontested by the parties.
     Payment of benefits or consideration of wages at a rate that is higher than that specified in (b)(ii)(A) or (B) of this subsection is stayed without further action by the board pending a final decision on the merits.
     (c) In an appeal from an order of ((the department)) an insurer that alleges willful misrepresentation, the ((department)) insurer or self-insured employer shall initially introduce all evidence in its case in chief. Any such person aggrieved by the decision and order of the board may thereafter appeal to the superior court, as prescribed in this chapter.

Sec. 119   RCW 51.52.060 and 1995 c 253 s 1 and 1995 c 199 s 7 are each reenacted and amended to read as follows:
     (1)(a) Except as otherwise specifically provided in this section, a worker, beneficiary, employer, health services provider, or other person aggrieved by an order, decision, or award of ((the department)) an insurer must, before he or she appeals to the courts, file with the board and the ((director)) insurer, by mail or personally, within sixty days from the day on which a copy of the order, decision, or award was communicated to such person, a notice of appeal to the board. However, a health services provider or other person aggrieved by ((a department)) an order or decision making demand, whether with or without penalty, solely for repayment of sums paid to a provider of medical, dental, vocational, or other health services rendered to an industrially injured worker must, before he or she appeals to the courts, file with the board and the ((director)) insurer, by mail or personally, within twenty days from the day on which a copy of the order or decision was communicated to the health services provider upon whom the ((department)) order or decision was served, a notice of appeal to the board.
     (b) Failure to file a notice of appeal with both the board and the ((department)) insurer shall not be grounds for denying the appeal if the notice of appeal is filed with either the board or the ((department)) insurer.
     (2) Within ten days of the date on which an appeal has been granted by the board, the board shall notify the other interested parties to the appeal of the receipt of the appeal and shall forward a copy of the notice of appeal to the other interested parties. Within twenty days of the receipt of such notice of the board, the worker or the employer may file with the board a cross-appeal from the order of the ((department)) insurer from which the original appeal was taken.
     (3) If within the time limited for filing a notice of appeal to the board from an order, decision, or award ((of the department)), the ((department)) insurer directs the submission of further evidence or the investigation of any further fact, the time for filing the notice of appeal shall not commence to run until the person has been advised in writing of the final decision of the ((department)) insurer in the matter. In the event the ((department)) insurer directs the submission of further evidence or the investigation of any further fact, as provided in this section, the department shall render a final order, decision, or award within ninety days from the date further submission of evidence or investigation of further fact is ordered which time period may be extended ((by the department)) for good cause stated in writing to all interested parties for an additional ninety days.
     (4) The ((department)) insurer, either within the time limited for appeal, or within thirty days after receiving a notice of appeal, may:
     (a) Modify, reverse, or change any order, decision, or award; or
     (b)(i) Except as provided in (b)(ii) of this subsection, hold an order, decision, or award in abeyance for a period of ninety days which time period may be extended ((by the department)) for good cause stated in writing to all interested parties for an additional ninety days pending further investigation in light of the allegations of the notice of appeal; or
     (ii) Hold an order, decision, or award issued under RCW 51.32.160 in abeyance for a period not to exceed ninety days from the date of receipt of an application under RCW 51.32.160. The ((department)) insurer may extend the ninety-day time period for an additional sixty days for good cause.
     For purposes of this subsection, good cause includes delay that results from conduct of the claimant that is subject to sanction under RCW 51.32.110.
     The board shall deny the appeal upon the issuance of an order under (b)(i) or (ii) of this subsection holding an earlier order, decision, or award in abeyance, without prejudice to the appellant's right to appeal from any subsequent determinative order ((issued by the department)).
     This subsection (4)(b) does not apply to applications deemed granted under RCW 51.32.160.
     (5) An employer shall have the right to appeal an application deemed granted under RCW 51.32.160 on the same basis as any other application adjudicated pursuant to that section.
     (6) A provision of this section shall not be deemed to change, alter, or modify the practice or procedure of ((the department)) an insurer for the payment of awards pending appeal.

Sec. 120   RCW 51.52.070 and 1977 ex.s. c 350 s 77 are each amended to read as follows:
     The notice of appeal to the board shall set forth in full detail the grounds upon which the person appealing considers such order, decision, or award is unjust or unlawful, and shall include every issue to be considered by the board, and it must contain a detailed statement of facts upon which such worker, beneficiary, employer, or other person relies in support thereof. The worker, beneficiary, employer, or other person shall be deemed to have waived all objections or irregularities concerning the matter on which such appeal is taken other than those specifically set forth in such notice of appeal or appearing in the records of the ((department)) insurer. The ((department)) insurer shall promptly transmit its original record, or a legible copy thereof produced by mechanical, photographic, or electronic means, in such matter to the board.

Sec. 121   RCW 51.52.080 and 1971 ex.s. c 289 s 69 are each amended to read as follows:
     If the notice of appeal raises no issue or issues of fact and the board finds that the ((department)) insurer properly and lawfully decided all matters raised by such appeal it may, without further hearing, deny the same and confirm the ((department's)) decision or award, or if the ((department's)) record sustains the contention of the person appealing to the board, it may, without further hearing, allow the relief asked in such appeal; otherwise, it shall grant the appeal.

Sec. 122   RCW 51.52.100 and 1982 c 109 s 8 are each amended to read as follows:
     Hearings shall be held in the county of the residence of the worker or beneficiary, or in the county where the injury occurred, at a place designated by the board. Such hearing shall be de novo and summary, but no witness' testimony shall be received unless he or she shall first have been sworn to testify the truth, the whole truth and nothing but the truth in the matter being heard, or unless his or her testimony shall have been taken by deposition according to the statutes and rules relating to superior courts of this state. The ((department)) insurer shall be entitled to appear in all proceedings before the board and introduce testimony in support of its order. The board shall cause all oral testimony to be stenographically reported and thereafter transcribed, and when transcribed, the same, with all depositions, shall be filed in, and remain a part of, the record on the appeal. Such hearings on appeal to the board may be conducted by one or more of its members, or a duly authorized industrial appeals judge, and depositions may be taken by a person duly commissioned for the purpose by the board.
     Members of the board, its duly authorized industrial appeals judges, and all persons duly commissioned by it for the purpose of taking depositions, shall have power to administer oaths; to preserve and enforce order during such hearings; to issue subpoenas for, and to compel the attendance and testimony of, witnesses, or the production of books, papers, documents, and other evidence, or the taking of depositions before any designated individual competent to administer oaths, and it shall be their duty so to do to examine witnesses; and to do all things conformable to law which may be necessary to enable them, or any of them, effectively to discharge the duties of his or her office.
     If any person in proceedings before the board disobeys or resists any lawful order or process, or misbehaves during a hearing or so near the place thereof as to obstruct the same, or neglects to produce, after having been ordered so to do, any pertinent book, paper or document, or refuses to appear after having been subpoenaed, or upon appearing refuses to take oath as a witness, or after having the oath refuses to be examined according to law, the board or any member or duly authorized industrial appeals judge may certify the facts to the superior court having jurisdiction in the place in which said board or member or industrial appeals judge is sitting; the court shall thereupon, in a summary manner, hear the evidence as to the acts complained of, and, if the evidence so warrants, punish such person in the same manner and to the same extent as for a contempt committed before the court, or commit such person upon the same conditions as if the doing of the forbidden act had occurred with reference to the proceedings, or in the presence, of the court.

Sec. 123   RCW 51.52.110 and 1988 c 202 s 49 are each amended to read as follows:
     Within thirty days after a decision of the board to deny the petition or petitions for review upon such appeal has been communicated to such worker, beneficiary, employer or other person, or within thirty days after the final decision and order of the board upon such appeal has been communicated to such worker, beneficiary, employer or other person, or within thirty days after the appeal is denied as herein provided, such worker, beneficiary, employer or other person aggrieved by the decision and order of the board may appeal to the superior court. If such worker, beneficiary, employer, or other person fails to file with the superior court its appeal as provided in this section within said thirty days, the decision of the board to deny the petition or petitions for review or the final decision and order of the board shall become final.
     In cases involving injured workers, an appeal to the superior court shall be to the superior court of the county of residence of the worker or beneficiary, as shown by the ((department's)) insurer's records, or to the superior court of the county wherein the injury occurred or where neither the county of residence nor the county wherein the injury occurred are in the state of Washington then the appeal may be directed to the superior court for Thurston county. In all other cases the appeal shall be to the superior court of Thurston county. Such appeal shall be perfected by filing with the clerk of the court a notice of appeal and by serving a copy thereof by mail, or personally, on the ((director)) insurer and on the board. If the case is one involving a self-insurer, a copy of the notice of appeal shall also be served by mail, or personally, on such self-insurer. The ((department)) insurer shall, in all cases not involving a self-insurer, within twenty days after the receipt of such notice of appeal, serve and file its notice of appearance and such appeal shall thereupon be deemed at issue. If the case is one involving a self-insurer, such self-insurer shall, within twenty days after receipt of such notice of appeal, serve and file its notice of appearance and such appeal shall thereupon be deemed to be at issue. In such cases the ((department)) insurer may appear and take part in any proceedings. The board shall serve upon the appealing party, the ((director)) insurer, the self-insurer if the case involves a self-insurer, and any other party appearing at the board's proceeding, and file with the clerk of the court before trial, a certified copy of the board's official record which shall include the notice of appeal and other pleadings, testimony and exhibits, and the board's decision and order, which shall become the record in such case. No bond shall be required on appeals to the superior court or on review by the supreme court or the court of appeals, except that an appeal by the employer from a decision and order of the board ((under RCW 51.48.070,)) shall be ineffectual unless, within five days following the service of notice thereof, a bond, with surety satisfactory to the court, shall be filed, conditioned to perform the judgment of the court. Except in the case last named an appeal shall not be a stay: PROVIDED, HOWEVER, That whenever the board has made any decision and order reversing an order of the ((supervisor of industrial insurance)) insurer on questions of law ((or mandatory administrative actions of the director)), the ((department)) insurer shall have the right of appeal to the superior court.

Sec. 124   RCW 51.52.115 and 1961 c 23 s 51.52.115 are each amended to read as follows:
     Upon appeals to the superior court only such issues of law or fact may be raised as were properly included in the notice of appeal to the board, or in the complete record of the proceedings before the board. The hearing in the superior court shall be de novo, but the court shall not receive evidence or testimony other than, or in addition to, that offered before the board or included in the record filed by the board in the superior court as provided in RCW 51.52.110: PROVIDED, That in cases of alleged irregularities in procedure before the board, not shown in said record, testimony thereon may be taken in the superior court. The proceedings in every such appeal shall be informal and summary, but full opportunity to be heard shall be had before judgment is pronounced. In all court proceedings under or pursuant to this title the findings and decision of the board shall be prima facie correct and the burden of proof shall be upon the party attacking the same. If the court shall determine that the board has acted within its power and has correctly construed the law and found the facts, the decision of the board shall be confirmed; otherwise, it shall be reversed or modified. In case of a modification or reversal the superior court shall refer the same to the ((department)) insurer with an order directing it to proceed in accordance with the findings of the court: PROVIDED, That any award shall be in accordance with the schedule of compensation set forth in this title. In appeals to the superior court hereunder, either party shall be entitled to a trial by jury upon demand, and the jury's verdict shall have the same force and effect as in actions at law. Where the court submits a case to the jury, the court shall by instruction advise the jury of the exact findings of the board on each material issue before the court.

Sec. 125   RCW 51.52.120 and 2007 c 490 s 3 are each amended to read as follows:
     (1) ((It shall be unlawful for an attorney engaged in the representation of any worker or beneficiary to charge for services in the department any fee in excess of a reasonable fee, of not more than thirty percent of the increase in the award secured by the attorney's services. Such reasonable fee shall be fixed by the director or the director's designee for services performed by an attorney for such worker or beneficiary, if written application therefor is made by the attorney, worker, or beneficiary within one year from the date the final decision and order of the department is communicated to the party making the application.
     (2)
)) If, on appeal to the board, the order, decision, or award of the ((department)) insurer is reversed or modified and additional relief is granted to a worker or beneficiary, or in cases where a party other than the worker or beneficiary is the appealing party and the worker's or beneficiary's right to relief is sustained by the board, the board shall fix a reasonable fee for the services of his or her attorney in proceedings before the board if written application therefor is made by the attorney, worker, or beneficiary within one year from the date the final decision and order of the board is communicated to the party making the application. ((In fixing the amount of such attorney's fee, the board shall take into consideration the fee allowed, if any, by the director, for services before the department, and the board may review the fee fixed by the director.)) Any attorney's fee set by ((the department or)) the board may be reviewed by the superior court upon application of such attorney, worker, or beneficiary. The ((department)) insurer or self-insured employer, as the case may be, shall be served a copy of the application and shall be entitled to appear and take part in the proceedings. Where the board, pursuant to this section, fixes the attorney's fee, it shall be unlawful for an attorney to charge or receive any fee for services before the board in excess of that fee fixed by the board.
     (((3))) (2) In an appeal to the board involving the presumption established under RCW 51.32.185, the attorney's fee shall be payable as set forth under RCW 51.32.185.
     (((4))) (3) Any person who violates this section is guilty of a misdemeanor.

Sec. 126   RCW 51.52.130 and 2007 c 490 s 4 are each amended to read as follows:
     (1) If, on appeal to the superior or appellate court from the decision and order of the board, said decision and order is reversed or modified and additional relief is granted to a worker or beneficiary, or in cases where a party other than the worker or beneficiary is the appealing party and the worker's or beneficiary's right to relief is sustained, a reasonable fee for the services of the worker's or beneficiary's attorney shall be fixed by the court. In fixing the fee the court shall take into consideration the fee or fees, if any, fixed by ((the director and)) the board for such attorney's services before ((the department and)) the board. If the court finds that the fee fixed by ((the director or by)) the board is inadequate for services performed before the ((department or)) board, or if ((the director or)) the board has fixed no fee for such services, then the court shall fix a fee for the attorney's services before ((the department, or)) the board((, as the case may be,)) in addition to the fee fixed for the services in the court. If in a worker or beneficiary appeal the decision and order of the board is reversed or modified and if the ((accident fund or medical aid)) assigned risk pool fund is affected by the litigation, or if in an appeal by the ((department)) insurer or employer the worker or beneficiary's right to relief is sustained, ((or in an appeal by a worker involving a state fund employer with twenty-five employees or less,)) in which the department does not appear and defend, and the board order in favor of the employer is sustained, the attorney's fee fixed by the court, for services before the court only, and the fees of medical and other witnesses and the costs shall be payable out of the industrial insurance administrative fund ((of the department)). In the case of self-insured employers, the attorney fees fixed by the court, for services before the court only, and the fees of medical and other witnesses and the costs shall be payable directly by the self-insured employer.
     (2) In an appeal to the superior or appellate court involving the presumption established under RCW 51.32.185, the attorney's fee shall be payable as set forth under RCW 51.32.185.

Sec. 127   RCW 51.52.132 and 1965 ex.s. c 63 s 2 are each amended to read as follows:
     Where the ((department, the)) board or the court((,)) pursuant to RCW 51.52.120 or 51.52.130 fixes the attorney's fee, it shall be unlawful for an attorney to charge or receive any fee in excess of that fixed by the ((department,)) board or the court. Any person who violates any provision of this section shall be guilty of a misdemeanor.

Sec. 128   RCW 51.52.135 and 1983 c 301 s 1 are each amended to read as follows:
     (1) When a worker or beneficiary prevails in an appeal by the employer to the board or in an appeal by the employer to the court from the decision and order of the board, the worker or beneficiary shall be entitled to interest at the rate of twelve percent per annum on the unpaid amount of the award after deducting the amount of attorney fees.
     (2) When a worker or beneficiary prevails in an appeal by the worker or beneficiary to the board or the court regarding a claim for temporary total disability, the worker or beneficiary shall be entitled to interest at the rate of twelve percent per annum on the unpaid amount of the award after deducting the amount of attorney fees.
     (3) The interest provided for in subsections (1) and (2) of this section shall accrue from the date of the ((department's)) insurer's order granting the award or denying payment of the award. The interest shall be paid by the party having the obligation to pay the award. The amount of interest to be paid shall be fixed by the board or court, as the case may be.

NEW SECTION.  Sec. 129   The following acts or parts of acts are each repealed:
     (1) RCW 51.04.030 (Medical aid -- Rules -- Maximum fees -- Records and bill payment) and 2004 c 65 s 1, 1998 c 230 s 1, 1997 c 325 s 2, & 1994 c 164 s 25;
     (2) RCW 51.04.082 (Notices and orders -- Mail or personal service) and 1986 c 9 s 2;
     (3) RCW 51.04.085 (Transmission of amounts payable) and 1977 ex.s. c 323 s 26;
     (4) RCW 51.04.110 (Workers' compensation advisory committee) and 1982 c 109 s 2 & 1980 c 14 s 3;
     (5) RCW 51.04.120 (Certificate of coverage required -- Contents) and 1986 c 9 s 1;
     (6) RCW 51.04.150 (Education and outreach -- Workers' compensation, premium responsibilities, and independent contractor issues) and 2009 c 432 s 10;
     (7) RCW 51.08.175 ("State fund" -- "State of Washington industrial insurance fund.") and 1977 ex.s. c 323 s 5, 1972 ex.s. c 43 s 5, & 1971 ex.s. c 289 s 88;
     (8) RCW 51.14.070 (Payments upon default) and 1986 c 57 s 3 & 1971 ex.s. c 289 s 36;
     (9) RCW 51.16.035 (Classifications -- Premiums -- Rules -- Workers' compensation advisory committee recommendations) and 2005 c 410 s 1, 1999 c 7 s 8, 1989 c 49 s 1, 1980 c 129 s 4, 1977 ex.s. c 350 s 24, & 1971 ex.s. c 289 s 16;
     (10) RCW 51.16.042 (Occupational and environmental research facility) and 1977 ex.s. c 350 s 25, 1971 ex.s. c 289 s 84, & 1963 c 151 s 2;
     (11) RCW 51.16.060 (Quarterly report of payrolls) and 1985 c 315 s 1 & 1981 c 260 s 13;
     (12) RCW 51.16.100 (Classification changes) and 1961 c 23 s 51.16.100;
     (13) RCW 51.16.105 (Departmental expenses, financing) and 1994 c 164 s 26, 1977 ex.s. c 350 s 27, 1973 1st ex.s. c 52 s 8, 1971 ex.s. c 289 s 86, & 1961 c 23 s 51.16.105;
     (14) RCW 51.16.130 (Distribution of catastrophe cost) and 1972 ex.s. c 43 s 14 & 1961 c 23 s 51.16.130;
     (15) RCW 51.16.155 (Failure or refusal of employer to report or pay premiums due -- Collection) and 1996 c 60 s 1, 1985 c 315 s 3, & 1971 ex.s. c 289 s 87;
     (16) RCW 51.16.160 (Lien for payments due -- Priority -- Probate, insolvency, etc) and 1985 c 315 s 4, 1971 ex.s. c 289 s 78, & 1961 c 23 s 51.16.160;
     (17) RCW 51.16.170 (Lien for premiums, assessments, contributions, and penalties -- Priority -- In general -- Notice) and 1986 c 9 s 5 & 1961 c 23 s 51.16.170;
     (18) RCW 51.16.180 (Property acquired by state on execution) and 1971 ex.s. c 289 s 79 & 1961 c 23 s 51.16.180;
     (19) RCW 51.16.190 (Limitation on collection actions) and 1987 c 111 s 7, 1985 c 315 s 5, & 1977 ex.s. c 323 s 27;
     (20) RCW 51.16.200 (Payment of tax by employer quitting business--Liability of successor) and 1995 c 160 s 1 & 1986 c 9 s 6;
     (21) RCW 51.18.005 (Findings) and 1999 c 7 s 1;
     (22) RCW 51.18.010 (Availability -- Rules -- Coverage period) and 1999 c 7 s 2;
     (23) RCW 51.18.020 (Entrance criteria) and 1999 c 7 s 3;
     (24) RCW 51.18.030 (Sponsoring entities -- New or existing retrospective rating groups) and 1999 c 7 s 4;
     (25) RCW 51.18.040 (Retrospective rating groups -- Industry and business categories) and 1999 c 7 s 5;
     (26) RCW 51.18.050 (Retrospective rating groups -- Probationary status -- Denial of future enrollment) and 1999 c 7 s 6;
     (27) RCW 51.18.060 (Retrospective rating groups -- Department approval) and 1999 c 7 s 7;
     (28) RCW 51.18.900 (Severability -- 1999 c 7) and 1999 c 7 s 10;
     (29) RCW 51.36.080 (Payment of fees and medical charges by department -- Interest -- Cost-effective payment methods -- Audits) and 1998 c 245 s 104, 1993 c 159 s 2, 1987 c 470 s 1, 1985 c 368 s 2, 1985 c 338 s 1, & 1971 ex.s. c 289 s 55;
     (30) RCW 51.36.085 (Payment of fees and medical charges by self-insurers -- Interest) and 1993 c 159 s 3 & 1987 c 316 s 4;
     (31) RCW 51.36.090 (Review of billings -- Investigation of unauthorized services) and 1985 c 337 s 3;
     (32) RCW 51.36.100 (Audits of health care providers authorized) and 1993 c 515 s 5 & 1986 c 200 s 1;
     (33) RCW 51.36.110 (Audits of health care providers -- Powers of department) and 2004 c 243 s 6, 2004 c 65 s 13, 1994 c 154 s 312, 1993 c 515 s 6, & 1986 c 200 s 2;
     (34) RCW 51.36.130 (False, misleading, or deceptive advertising or representations) and 1997 c 336 s 2;
     (35) RCW 51.44.010 (Accident fund) and 1961 c 23 s 51.44.010;
     (36) RCW 51.44.020 (Medical aid fund) and 1961 c 23 s 51.44.020;
     (37) RCW 51.44.030 (Reserve fund) and 1961 c 23 s 51.44.030;
     (38) RCW 51.44.050 (Catastrophe injury account) and 1961 c 23 s 51.44.050;
     (39) RCW 51.44.060 (Charge to accident fund for the catastrophe injury account) and 1972 ex.s. c 43 s 28 & 1961 c 23 s 51.44.060;
     (40) RCW 51.28.015 (Injury reporting -- Findings -- Department educational initiative -- Pilot program, employers to assist workers in applying for benefits -- Report) and 2006 c 254 s 1 & 2005 c 108 s 1;
     (41) RCW 51.32.300 (State employee vocational rehabilitation coordinator) and 1990 c 204 s 5;
     (42) RCW 51.32.350 (Chemically related illness -- Criteria and procedures for claims -- Claims management) and 1994 c 265 s 1;
     (43) RCW 51.32.360 (Chemically related illness -- Centers for research and clinical assessment) and 1994 c 265 s 3;
     (44) RCW 51.32.370 (Chemically related illness -- Research projects--Implementation plan -- Funding -- Deductions from employees' pay) and 1994 c 265 s 4;
     (45) RCW 51.48.075 (Information and training on premium liability) and 2004 c 243 s 5;
     (46) RCW 51.48.120 (Notice of assessment for default in payments by employer -- Issuance -- Service -- Contents) and 1995 c 160 s 5, 1986 c 9 s 10, 1985 c 315 s 6, & 1972 ex.s. c 43 s 32;
     (47) RCW 51.48.131 (Notice of assessment for default in payments by employer -- Appeal) and 1989 c 175 s 120, 1987 c 316 s 3, & 1985 c 315 s 7;
     (48) RCW 51.48.140 (Notice of assessment for employer's default in payments -- When amount becomes final -- Warrant -- Execution -- Garnishment--Fees) and 2001 c 146 s 11, 1989 c 175 s 121, 1985 c 315 s 8, & 1972 ex.s. c 43 s 34;
     (49) RCW 51.48.150 (Notice of assessment for employer's default in payments -- Notice to withhold and deliver property due employer) and 1995 c 160 s 6, 1987 c 442 s 1119, 1986 c 9 s 11, & 1972 ex.s. c 43 s 35;
     (50) RCW 51.48.160 (Revocation of certificate of coverage for failure to pay warrants or taxes) and 1986 c 9 s 13;
     (51) RCW 51.48.170 (Emergency assessment and collection of taxes) and 1986 c 9 s 14;
     (52) RCW 51.48.180 (Emergency assessment and collection of taxes--Distraint and sale of property) and 1986 c 9 s 15;
     (53) RCW 51.48.190 (Emergency assessment and collection of taxes--Conduct of sale) and 1986 c 9 s 16;
     (54) RCW 51.48.200 (Search and seizure of property to satisfy tax warrant or assessment -- Issuance and execution of search warrant) and 1986 c 9 s 17;
     (55) RCW 51.48.210 (Delinquent taxes) and 1987 c 111 s 8 & 1986 c 9 s 18;
     (56) RCW 51.48.220 (Order of execution upon property -- Procedure--Sale) and 1986 c 9 s 21;
     (57) RCW 51.48.230 (Order of execution upon property -- Enforcement) and 1986 c 9 s 22;
     (58) RCW 51.48.240 (Agents and employees of department not personally liable -- Conditions) and 1986 c 9 s 23;
     (59) RCW 51.48.290 (Written verification by health services providers) and 1986 c 200 s 7;
     (60) RCW 51.52.075 (Appeal from order terminating provider's authority to provide services -- Department petition for order immediately suspending provider's eligibility to participate) and 2004 c 259 s 1;
     (61) RCW 51.52.150 (Costs on appeals) and 1961 c 23 s 51.52.150; and
     (62) RCW 51.52.800 (Workers' compensation study) and 2008 c 280 s 5.

NEW SECTION.  Sec. 130   Sections 8 through 13, 15, 18, 20, and 23 of this act constitute a new chapter in Title 51 RCW.

NEW SECTION.  Sec. 131   This act takes effect July 1, 2012.

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