SENATE BILL REPORT

SB 5602

BYSenators Rasmussen, McMullen and Niemi

Establishing procedures for determining jurisdiction in disputed industrial insurance claims and providing for benefits.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 16, 1989; March 1, 1989

Majority Report:  That Substitute Senate Bill No. 5602 be substituted therefor, and the substitute bill do pass.

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

Senate Staff:David Cheal (786-7576)

                  March 1, 1989

AS OF REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, MARCH 1, 1989

BACKGROUND:

If a worker suffers a repeat injury (or illness) following an original injury, there may be a question whether the second occurrence is a new injury or merely an aggravation of the previous injury.  Identifying the responsible employer may depend on the determination.  The authority of the Department of Labor and Industries to make the determination is unclear, especially if the determination raises a dispute over claim responsibility between self-insured employers and/or the department.

SUMMARY:

If a determination is required regarding whether to reopen an accepted claim or to allow a new injury claim, the Department of Labor and Industries is responsible for making the order.  Pending the department's order, either the department or the self-insured employer, as determined by the department, must pay industrial insurance benefits to the claimant.  Benefits must be repaid by the entity finally determined to be responsible for the claim, or by the claimant if no entity is responsible for the claim.  The director may waive repayment by the claimant if recovery would be against equity and good conscience.

EFFECT OF PROPOSED SUBSTITUTE:

The preliminary determination of the responsible employer is made by the mediation unit within the department, rather than by the department.  This preliminary determination is made on documentary evidence only.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Deena Peese (against); Kathryn Fewell (against); Lee Eberle (against); Brett Knott (for); Mike Welch (for); Dick Warbroven (for)