SENATE BILL REPORT

SB 5610

BYSenators Anderson, Vognild, Cantu, Lee, Warnke, McDonald and Johnson; by request of Department of Labor and Industries

Revising provisions relating to industrial insurance premiums.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 4, 1987

Majority Report:  Do pass.

      Signed by Senators Warnke, Chairman; Anderson, Cantu, Vognild, West, Williams.

Senate Staff:Dave Cheal (786-7576)

                  March 4, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, MARCH 4, 1987

BACKGROUND:

The Department of Labor and Industries has an experience rating program for premium rate setting for the purpose of encouraging safety in the workplace.  Experience rating rewards employers with good safety records by providing a rebate from the base rate applied to their classification, and an assessment to employers with bad safety records over and above the base rate. 

RCW 51.16.050 prohibits experience rating for the construction industry.  The Department has recommended repeal of this section for some time.  Recent negotiations between the Department and the construction industry have produced some agreement as to how experience rating would be implemented in the construction industry if it were legally possible.

SUMMARY:

The statutory prohibition against experience rating in the construction industry is repealed.

Fiscal Note:      requested

Senate Committee - Testified: No one