FINAL BILL REPORT

SHB 1592

PARTIAL VETO

                                  C 271 L 88

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Sayan, Cole, O'Brien, Patrick, Walker, Jones, Wineberry, R. King, Winsley, Valle, Jacobsen, Wang, Basich, Fisher, Pruitt, Lux and Unsoeld)

Authorizing workers' compensation for workers with asbestos-related diseases.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

SYNOPSIS AS ENACTED

BACKGROUND:

Compensation In Asbestos-Related Occupational Disease.  Workers who contract asbestos-related occupational diseases frequently have work histories indicating exposure to asbestos in several different employments.  These employments may be covered for workers' compensation purposes under more than one jurisdiction, such as the Washington industrial insurance law or the federal Longshore and Harbor Workers' Compensation Act.  If a dispute arises over which jurisdiction is responsible for coverage, a worker's claim may not be accepted by either jurisdiction until the liability question is settled.  If the Washington state fund determines that another insurer is liable to the claimant, the fund is not authorized to pay benefits on the claim.

Compensation for an occupational disease claim is based on the payment schedule that was in effect at the time the worker contracted the disease or was last exposed to injurious substances.  For many occupational diseases the disease does not manifest itself for many years after the date the worker was last exposed to the injurious substance.

Asbestos Abatement Projects.  In 1985 a state program was enacted for training and certifying workers who are employed on asbestos projects.  These provisions are administered by the Department of Labor and Industries under the Washington Industrial Safety and Health Act.  The federal Asbestos Hazard Emergency Response Act of 1986 and related Environmental Protection Agency rules specify a worker accreditation plan that differs in some respects from the Washington certification program.  Federal law requires states to adopt accreditation plans at least as stringent as the federal model.

SUMMARY:

Compensation In Asbestos-Related Occupational Disease.  From July 1, 1988 until July 1, 1993 the Department of Labor and Industries is directed to pay industrial insurance benefits to any worker or beneficiary who may have a claim under the federal maritime laws because of asbestos-related disease if (1) there are objective clinical findings to substantiate a claim for asbestos-related occupational disease, and (2) the worker's employment history shows injurious exposure to asbestos while working in employment covered under state law. The department will make a determination of insurer liability and will pay benefits until the liable insurer begins payments or benefits are otherwise properly terminated.

Benefits will be paid from the medical aid fund with the state fund and the self-insured employers each paying a prorata share.  Employees of the self-insurers will pay one-half of the share charged to self-insurers.

If the department determines that the liable insurer is the state fund or a self-insured employer, the medical aid fund must be immediately reimbursed for costs and benefits paid to the claimant. If the department determines that benefits are owed to the claimant by a federal program or by an insurer under the federal maritime laws, the department is authorized to pursue the federal insurer on behalf of the claimant to recover the benefits due and, on its own behalf, to recover costs and benefits paid.  The department may not pursue recovery of benefits from the claimant unless the claimant receives recovery under the federal claim in addition to any benefits under the state claim.  The director may waive the recovery of benefits from the worker or beneficiary if recovery would be against equity and good conscience.

The provisions authorizing benefits do not apply if the worker or beneficiary refuses to assist the department in making a coverage determination.  If the worker or beneficiary fails to provide relevant information or if the worker refuses to submit to medical examination or fails to cooperate with an examination, the department is directed to reject the claim application.  Information obtained by the department for determination of coverage is not subject to release by subpoena or other legal process.

In any third party recovery by the worker or beneficiary, the department has a lien to the full extent that the medical aid fund has not been otherwise reimbursed by another insurer.  The department is not required to participate in the costs incurred in bringing the third party suit if the benefits are owed by a federal insurer.

The rate of compensation for occupational disease claims filed on or after July 1, 1988 is established as of the date the disease requires medical treatment or becomes disabling, whichever occurs first, without regard to the date on which the disease was contracted or the date the claim was filed.

The asbestos claim program applies to all claims filed on or after July 1, 1988 and all claims pending a final determination on that date.  The program terminates July 1, 1993.  The department will report to the appropriate Legislative committees on the program at the beginning of the 1993 legislative session.

Asbestos Abatement Projects.  Beginning January 1, 1989 the following changes are made in the requirements for asbestos abatement projects.  Work on an asbestos project may not be performed except under the supervision of a certified asbestos supervisor.  Contractors must also have an asbestos contractor's certificate.  Examinations are required for certified workers and supervisors.  Certificates may be suspended or revoked if obtained through error or fraud or if the holder is found incompetent to perform the work.

Any owner who authorizes a project that has a reasonable possibility of releasing asbestos into the air must perform a good faith inspection to determine whether the proposed project will release any asbestos.  An inspection is not required if the owner is reasonably certain that asbestos will not be disturbed or if the owner assumes that asbestos will be disturbed and takes the required precautions.  A written inspection report or a statement of the asbestos condition must be given to the employees and be included in the required asbestos project notice.

Any owner who begins an asbestos project without (1) first conducting the inspection and submitting an inspection report or statement, and (2) submitting a description of the project with the project notice is subject to a mandatory fine of not less than $250 for each violation.  In addition, the project must be halted.  Any contractor who begins an asbestos project without receiving a copy of the inspection report or project statement is subject to a mandatory fine of not less than $250 per day.  The contractor's certificate must be revoked for not less than six months if he or she knowingly violates any provision of the act.

A safety conference is required for all asbestos projects before work is commenced.  The conference must include representatives of the owner, contractor, employer and employees.  Minutes of the safety meetings must be kept.

Employees may not be discriminated against for notifying the department of activities that he or she reasonably believes violate the act.

An asbestos account is established as of March 24, 1988 to be funded from fees for certification and administration of examinations. The $500,000 appropriation from the accident fund must be repaid from the asbestos account.

VOTES ON FINAL PASSAGE:

      House 98   0

      Senate    48     0(Senate amended)

      House 97   0(House concurred)

EFFECTIVE:July 1, 1988 (Sections 1-4)

            January 1, 1989 (Sections 6-14, 16 and 17)

            March 24, 1988 (Sections 15 and 18)

Partial Veto Summary:  Four sections of the bill are vetoed.  One section, already enacted in other legislation, would have established a new method of calculating the compensation rate for occupational disease.  Other vetoed sections would have required safety meetings for asbestos projects, inventories of buildings to identify asbestos and annual refresher courses for recertification of asbestos workers.  (See VETO MESSAGE)