SENATE BILL REPORT

SCR 8407

BYSenators Anderson, Lee and Matson

Creating joint select committee on group self-insurance.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 28, 1989; March 1, 1989

Majority Report:     Do pass.

     Signed by Senators Lee, Chairman; Anderson, Vice Chairman; McDonald, Matson, Saling, West.

Senate Staff:Dave Cheal (786-7576)

                March 2, 1989

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

BACKGROUND:

Washington employers must insure their workers' compensation obligations under the state fund unless they qualify for certification as a self-insurer.  To qualify as a self-insurer, an employer must be able to demonstrate significant financial strength and stability and evidence of ability to meet industrial insurance obligations well into the future.  In general, this means that small employers cannot qualify.  Some states have allowed employers to form groups in order to guarantee present and future industrial insurance obligations.

In Washington, two types of employers may form self-insurance groups for industrial insurance purposes:  educational service districts and hospitals.

SUMMARY:

A Joint Select Committee on Group Self-Insurance is established consisting of 10 members:  four members from each house with equal representation from both caucuses, with half being members of the Senate Economic Development and Labor Committee or the House Commerce and Labor Committee, plus the chairs of those two committees.

Through consultation with labor, business, the Department of Labor and Industries, and other states, the committee shall conduct a study of group self-insurance performance in other states and the potential impact on Washington State.  This study shall include consideration of financial security, regulatory options, and membership, and shall develop at least two statutory schemes with one emphasizing group flexibility and another emphasizing regulatory control.

The committee will use legislative staff and facilities but may use outside staff and resources as well.

The committee shall report its findings and recommendations by the commencement of the 1990 Regular Session of the Legislature.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested

Senate Committee - Testified:   Wayne Lieb, Washington State Trial Lawyers (con); Larry Kinney (con); Cliff Finch (pro); Jan Gee (pro)