BILL REQ. #:  S-1345.1 

Read first time 02/13/13.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to creating an industrial insurance high risk premium subsidy program; and adding a new section to chapter 51.16 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 51.16 RCW to read as follows:
     (1) The department must establish a workers' compensation state fund high risk premium subsidy program. The purpose of the premium subsidy program is to pay a portion of the industrial insurance premium due for hours worked in certain high risk classifications.
     (2) The subsidy created under this section is available only to employers who:
     (a) Secure the payment of industrial insurance benefits through the state; and
     (b) Participate in a logger safety program that has the objective of reducing the frequency and severity of injuries and is developed jointly by forest product industry stakeholders, including private landowners, the department of natural resources, the department of labor and industries, and employers with manual logging operations.
     (3) The subsidy created under this section will only apply to risk classifications in the forest product industry that have an accident fund base rate that is at least thirty-five times the average standard accident fund premium rate for all risk classifications.
     (4) Starting September 1, 2013, employers who meet the eligibility criteria established in subsection (2) of this section and who report hours in risk classifications identified in subsection (3) of this section will receive the high risk premium subsidy. The subsidy will be applied on a per hour basis, and will be calculated by multiplying the average standard accident fund premium rate for all risk classifications by fifteen. The total amount of the subsidy will be determined by multiplying the hours of employment reported by the employer in the high risk classification by the hourly rate of the subsidy.
     (5) An employer receiving a subsidy under this section will continue to receive the subsidy so long as the employer continues to participate in the logger safety program, as determined by guidelines and standards established in the program.
     (6) The department may adjust accident fund premium rates across all industries as appropriate to mitigate impacts of the subsidy program on the accident fund.
     (7) The department may adopt rules to implement this section.