SENATE BILL REPORT

SHB 1015

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Sayan, R. King, McMullen, Jacobsen, Lux, Brekke and Day)

Authorizing industrial insurance benefits for certain asbestos-related disabilities.

House Committe on Commerce & Labor

Senate Committee on Commerce & Labor

Senate Hearing Date(s):April 3, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Lee, Vognild, Williams, Wojahn.

Senate Staff:Mark McDermott (786-7429)

                  April 3, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, APRIL 3, 1987

BACKGROUND:

A number of Washington residents have asbestos-related conditions as a result of work performed for employers covered under Washington's industrial insurance laws or the laws of other jurisdictions.  Jurisdictional disputes often arise in these cases, and no jurisdiction is willing to assume the cost of compensating these workers when there is a jurisdictional controversy.  Washington's industrial insurance laws do not authorize the payment of benefits to workers insured under another jurisdiction.  Financial assistance may not be available for these workers during the time it takes to pursue a claim and to determine which jurisdiction owes benefits.

SUMMARY:

The Department of Labor and Industries, and self-insurers certified under Washington law, will pay industrial insurance benefits to a worker or beneficiary who has a claim resulting from an asbestos-related disease, even if such a worker or beneficiary may have a claim under the laws of another jurisdiction. These benefits will be paid only if the worker's employment history indicates exposure to asbestos fibers while working in employment covered under Washington's industrial insurance laws.  In addition, there must be objective clinical findings to substantiate a claim of an asbestos-related condition.

If the Department subsequently determines that benefits paid to these workers are actually owed by another insurer, the Department will pursue the insurer on behalf of the worker and on its own behalf to recover the benefits the Department previously paid.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The Department, and not self-insurers, is required to pay the initial benefits until such time as the self-insurer or the insurer under the maritime laws is required to pick up the benefit payments.  If the Department determines that the self-insurer is liable, the self-insurer must reimburse the Department for all benefits paid and costs incurred.

If the Department determines that the insurer under the U.S. maritime laws is liable, the Department shall pursue recovery against that insurer.  If recovery cannot be obtained from the insurer under the maritime laws, the Department shall assess self-insurers for a pro-rata contribution through the supplemental pension fund.

The appropriate benefits paid by the Department shall continue until such time as the claim has been accepted by another insurer or the benefits have been properly terminated under the state's industrial insurance statutes.

Fiscal Note:      available

Senate Committee - Testified: Chuck Bailey, State Labor Council; Clark Blazer, Educational Services District; Melanie Stewart-Gerla, Self-Insurers; Ron Newbry, Pacific Power and Light; Bret Buckley, Labor and Industries