|Passed by the House February 10, 2010|
Speaker of the House of Representatives
Passed by the Senate March 11, 2010
President of the Senate
I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 3061 as passed by the House of Representatives and the Senate on the dates hereon set forth.
Governor of the State of Washington
Secretary of State
State of Washington
|State of Washington||61st Legislature||2010 Regular Session|
Read first time 01/22/10. Referred to Committee on Commerce & Labor.
AN ACT Relating to claims of insolvent self-insurers under industrial insurance; and amending RCW 51.16.120 and 51.14.060.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 51.16.120 and 2004 c 258 s 1 are each amended to read
(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 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 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. Except as provided
in subsection (2) of this section, 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. Pending outcome of such appeal the
transfer or payment shall be made as required by such order.
(2) If a self-insured employer is in default or the director has withdrawn the certification of a self-insured employer, the department shall not pass on the application of this section. In such cases, the total cost of the pension reserve shall first be assessed against the defaulting self-insured employer's deposit required by RCW 51.14.020 and in cases where the surety funds are insufficient the remaining cost of the pension reserve shall be assessed against the insolvency trust fund.
(3) The department shall, in cases of claims of workers sustaining injuries or occupational diseases in the employ of state fund employers, recompute the experience record of such employers 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 make appropriate adjustments in such cases including cash refunds or credits to such employers.
(3))) (4) 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
(4))) (5) 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. 2 RCW 51.14.060 and 1986 c 57 s 2 are each amended to read
(1) The director may, in cases of default upon any obligation under this title by the self-insurer, after ten days notice by certified mail to the defaulting self-insurer of the intention to do so, bring suit upon such bond or collect the interest and principal of any of the securities as they may become due or sell the securities or any of them as may be required or apply the money deposited, all in order to pay compensation and discharge the obligations of the defaulting self-insurer under this title.
(2) The director shall be authorized to fulfill the defaulting self-insured employer's obligations under this title from the defaulting self-insured employer's deposit or from other funds provided under this title for the satisfaction of claims against the defaulting self-insured employer. The defaulting self-insured employer is liable to and shall reimburse the director for the amounts necessary to fulfill the obligations of the defaulting self-insured employer that are in excess of the amounts received by the director from any bond filed, or securities or money deposited, by the defaulting self-insured employer pursuant to chapter 51.14 RCW. The amounts to be reimbursed shall include all amounts paid or payable as compensation under this title together with administrative costs, including attorneys' fees, and shall be considered taxes due the state of Washington.
(3) The department shall transfer the balance of any defaulted self-insured employer's deposit as required by RCW 51.14.020 into the insolvency trust fund when the following have occurred:
(a) All claims against the defaulted self-insured employer are closed; and
(b) The self-insured employer has been in default for ten years.