SENATE BILL REPORT

SB 5788

BYSenators Tanner and Warnke; by request of Joint Select Committee on Industrial Insurance

Revising provisions relating to reimbursement of self-insured employers' funds.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 26, 1987; January 19, 1988; February 4, 1988

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Cantu, Conner, Deccio, Saling, Warnke, West, Williams.

Senate Staff:Dave Cheal (786-7576)

                  February 5, 1988

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 4, 1988

BACKGROUND:

Worker compensation claims to self-insurers which involve reopening a previous claim must be approved for reopening by the Department of Labor and Industries.  This can cause a delay in providing benefits.  To ameliorate this, collective bargaining agreements sometimes provide for immediate payments from the sickness and accident fund maintained by the employer, pending commencement of benefits under the worker compensation claim.  Repayment of amounts paid from the sickness and accident fund from proceeds of the claim raises serious legal problems.  There are statutory protections for benefit payments including a prohibition against pledging them against a loan.

SUMMARY:

A self-insurer is allowed to withhold worker compensation benefit payments to reimburse payments made from the sickness and accident fund for an injury.  The reimbursement must be authorized by the collective bargaining agreement.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: Gail Mayes, Bob Sevart, Injured Workers Awareness Coalition (con); Melanie Stewart, Washington Self Insurers (pro)