HOUSE BILL REPORT

HB 2060

As Amended by the Senate

BYRepresentatives Patrick, Leonard, Beck, Vekich, Baugher, Prentice, Crane, Doty, Inslee, Padden, Kremen, Rayburn, Holland, Walker, Wolfe, Silver, Ballard, Miller, Rector, Winsley, Smith and Todd

Providing industrial insurance coverage for the horse racing industry.

House Committe on Commerce & Labor

Majority Report:  Do pass.  (11)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Patrick, Ranking Republican Member; Jones, R. King, Leonard, O'Brien, Prentice, Smith, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE MARCH 13, 1989

BACKGROUND:

In the horse racing industry, licensed trainers who employ workers at parimutuel horse racing tracks pay industrial insurance premiums on a "per start" basis under rules adopted by the Department of Labor and Industries.

SUMMARY:

Industrial insurance premiums for horse racing employments at parimutuel race tracks must be computed on a per license basis in an amount set at the basic manual rate, without experience rating.

The premium must be paid at each issuance or renewal of owner, trainer, or groom licenses.  The Washington Horse Racing Commission is directed to collect the premium assessments at the time of licensing and deposit the assessments in the industrial insurance trust funds.  The premium will provide industrial insurance coverage for workers licensed by the commission, including exercise riders, pony riders, and grooms.  For the purpose of paying the assessments, owners and trainers are deemed the employers.

Worker's wages for employments at parimutuel tracts are not subject to medical aid or supplemental fund premium deductions.

The authority of the Horse Racing Commission to require licenses for periods no longer than three years is changed to require annual licenses.

EFFECT OF SENATE AMENDMENTS:  The Horse Racing Commission is given specific authority to collect the industrial insurance premiums for employments in the horse racing industry.  All on or off track employment is included in the employments covered by the premium assessment.  A hotwalker is considered a groom.  The trainer is considered the employer for the purposes of paying premiums and making reports, rather than both the owner and the trainer.  The owner's industrial insurance premium is limited to no more than $150.  Premium assessments apply retroactively to all licenses issued after January 1, 1989.  The House Commerce & Labor Committee and the Senate Economic Development and Labor Committee will study industrial insurance coverage in the horse racing industry, specifically including coverage for jockeys.  The results of the study will be reported by December 1, 1989.

Fiscal Note:      Requested February 20, 1989.

Effective Date:The bill contains an emergency clause and takes effect April 1, 1989.

House Committee ‑ Testified For:    Doug Connell, Department of Labor and Industries;  Ed Moger, Horsemen's Benevolent & Protective Association;  Margo Smith, Washington State Horse Racing Commission; Valerie Lund; Carl Olson; Sue Spooner.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The present system of collecting industrial insurance premiums is not working.  Compliance must be 100 percent if Washington racing is to continue to be competitive with other states.  By assessing premiums at each issuance of a license, all owners and trainers participating in the horse racing industry will be required to support the workers' compensation system for the backside employees.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 96; Nays 2

Voting Nay: Representatives King R. and Vekich