SENATE BILL REPORT

HB 399

BYRepresentatives Wang, R. King, Patrick, Chandler, McMullen and Winsley; by request of Joint Select Committee on Industrial Insurance and Department of Labor and Industries

Revising provisions relating to industrial insurance premiums.

House Committe on Commerce & Labor

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 25, 1987

Majority Report:  Do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Anderson, Cantu, Lee, Tanner, Vognild, West, Williams, Wojahn.

Senate Staff:Dave Cheal (786-7576)

                  March 25, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, MARCH 25, 1987

BACKGROUND:

Under Washington's workers' compensation system, the accident fund rate paid by most employers is based on their accident experience.  In the construction industry, however, employers' rates are computed from a base rate that applies to all construction employers regardless of accident experience, except for a small allowance made under a modified experience rated formula. The rate may not exceed 120 percent of the rate necessary to assure that adequate premiums are collected to pay all claims for the construction industry class.

SUMMARY:

The provision is repealed that requires the industrial insurance premiums of the building industry to be computed only on the base rate without regard to accident experience.

Fiscal Note:      available

Senate Committee - Testified: Joe Dear, Department of Labor and Industries