SENATE BILL REPORT

SB 5302

BYSenators Lee, Smitherman and Anderson; by request of Director of Labor and Industries

Changing conditions for workers' compensation insurance.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 18, 1989; February 28, 1989

Majority Report:  Do pass.

      Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McMullen, Murray, Saling, Smitherman, Warnke, Williams.

Senate Staff:Dave Cheal (786-7576)

                  February 28, 1989

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 28, 1989

BACKGROUND:

The Department of Labor and Industries is required to classify all occupations according to degree of hazard and establish basic premium rates.

The department has the authority to insure workers' compensation obligations as a group if five conditions are met:  (1) all of the employers in the group are members of an organization in existence at least two years; (2) the organization was formed for a purpose other than obtaining workers' compensation coverage; (3) the occupations or industries of the employers are substantially similar; (4) the employers in the group constitute at least 50 percent of the total members of the organization; and (5) the formation and operation of the group program will substantially improve accident prevention and claim management.

SUMMARY:

For purposes of group coverage of workers' compensation obligations, the requirement that employers in the group constitute at least 50 percent of total eligible members of the organization is deleted.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 12, 1989

Senate Committee - Testified: Brett Buckly, Department of Labor and Industries (pro); Cliff Finch, AWB (pro)