AN ACT Relating to industrial insurance benefits for occupational diseases; amending RCW 51.44.033, 51.12.100, and 51.32.180; adding a new section to chapter 51.12 RCW; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 51.12 RCW to read as follows:

(1) The department shall furnish the benefits provided under this title to any worker or beneficiary who may have a right or claim for benefits under the maritime laws of the United States resulting from an asbestos-related disease if (a) there are objective clinical findings to substantiate that the worker has an asbestos-related claim for occupational disease and (b) the worker's employment history has a prima facie indicia of injurious exposure to asbestos fibers while employed in the state of Washington in employment covered under this title. The benefits shall be paid from the supplemental pension fund. The department shall render a decision determining the liable insurer and shall continue to pay benefits until the liable insurer initiates payments or benefits are otherwise properly terminated under this title.

(2) If the department determines that the benefits paid under subsection (1) of this section are owed to the worker or beneficiary by a self-insurer, the state fund, or a federal nonmaritime program other than the federal social security, old age survivors, and disability insurance act, 42 U.S.C., then the self-insurer, state fund, or federal program shall immediately reimburse the supplemental pension fund for all benefits paid and costs incurred by the fund.

(3) If the department determines that the benefits paid under subsection (1) of this section are owed to the worker or beneficiary by an insurer under the maritime laws of the United States:

(a) The department shall pursue the insurer on behalf of the worker or beneficiary to recover from the insurer the benefits due the worker or beneficiary and on its own behalf to recover the benefits previously paid to the worker or beneficiary and costs incurred;

(b) For the purpose of pursuing recovery under this subsection, the department shall be subrogated to all of the rights of the worker or beneficiary receiving compensation under subsection (1) of this section; and

(c) The department shall not pursue the worker or beneficiary for the recovery of benefits paid under subsection (1) of this section unless the worker or beneficiary receives full entitlement under the maritime laws, in addition to receiving benefits authorized under this section. The director may exercise his or her discretion to waive, in whole or in part, the recovery of any such benefits where the recovery would be against equity and good conscience.

(4) The provisions of subsection (1) of this section shall not apply if the worker or beneficiary refuses, for whatever reason, to assist the department in making a proper determination of coverage. If a worker or beneficiary refuses to cooperate with the department by failing to provide information that, in the opinion of the department, is relevant in determining the liable insurer, or if a worker refuses to submit to medical examination, or obstructs or fails to cooperate with the examination, the department shall reject the application for benefits. No information obtained under this section is subject to release by subpoena or other legal process except as specifically provided under RCW 51.28.070.

(5) The amount of any third party recovery by the worker or beneficiary shall be subject to a lien by the department to the full extent that the supplemental pension fund has not been otherwise reimbursed by another insurer. Reimbursement shall be made immediately to the supplemental pension fund upon recovery from the third party suit. The department shall not participate in the costs or attorneys' fees incurred in bringing the third party suit.

Sec. 2. Section 18, chapter 289, Laws of 1971 ex. sess. as amended by section 16, chapter 224, Laws of 1975 1st ex. sess. and RCW 51.44.033 are each amended to read as follows:

There shall be, in the office of the state treasurer, a fund to be known and designated as the "supplemental pension fund". The director shall be the administrator ((~~thereof. Said~~)) of the fund. The fund shall be used for the sole purpose of making the ((~~additional~~)) payments ((~~therefrom~~)) prescribed in this title.

Sec. 3. Section 51.12.100, chapter 23, Laws of 1961 as last amended by section 21, chapter 350, Laws of 1977 ex. sess. and RCW 51.12.100 are each amended to read as follows:

(1) Except as provided in section 1 of this 1988 act, the provisions of this title shall not apply to a master or member of a crew of any vessel, or to employers and workers for whom a right or obligation exists under the maritime laws for personal injuries or death of such workers.

(2) If an accurate segregation of payrolls of workers for whom such a right or obligation exists under the maritime laws cannot be made by the employer, the director is hereby authorized and directed to fix from time to time a basis for the approximate segregation of the payrolls of employees to cover the part of their work for which no right or obligation exists under the maritime laws for injuries or death occurring in such work, and the employer, if not a self-insurer, shall pay premiums on that basis for the time such workers are engaged in their work.

(3) Where two or more employers are simultaneously engaged in a common enterprise at one and the same site or place in maritime occupations under circumstances in which no right or obligation exists under the maritime laws for personal injuries or death of such workers, such site or place shall be deemed for the purposes of this title to be the common plant of such employers.

(4) In the event payments are made under this title prior to the final determination under the maritime laws, such benefits shall be repaid by the worker or beneficiary if full recovery is subsequently made under the maritime laws. Such repayment shall be made to the supplemental pension fund.

Sec. 4. Section 51.32.180, chapter 23, Laws of 1961 as last amended by section 53, chapter 350, Laws of 1977 ex. sess. and RCW 51.32.180 are each amended to read as follows:

Every worker who suffers disability from an occupational disease in the course of employment under the mandatory or elective adoption provisions of this title, or his or her family and dependents in case of death of the worker from such disease or infection, shall receive the same compensation benefits and medical, surgical and hospital care and treatment as would be paid and provided for a worker injured or killed in employment under this title(~~: PROVIDED, HOWEVER, That~~)) except as follows: (1) This section and RCW 51.16.040 shall not apply where the last exposure to the hazards of the disease or infection occurred prior to January 1, 1937; and (2) for claims filed on or after July 1, 1988, the rate of compensation for occupational diseases shall be established as of the date the disease requires medical treatment or becomes totally or partially disabling, whichever occurs first, and without regard to the date of the contraction of the disease or the date of filing the claim.

NEW SECTION. Sec. 5. This act shall take effect July 1, 1988, and shall apply to all claims filed on or after that date or pending a final determination on that date.