Z-1149               _______________________________________________

                                                   HOUSE BILL NO. 2497

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Jones, Smith, Vekich, Walker, Prentice, Wolfe, R. King, Winsley and Rector; by request of Department of Labor and Industries

Read first time 1/12/90 and referred to Committee on Commerce & Labor.

AN ACT Relating to the allowance and reopening of industrial insurance claims; and adding a new section to chapter 51.32 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 51.32 RCW to read as follows:

          (1) Whenever an application for benefits is filed that requires a determination of whether benefits shall be paid pursuant to the reopening of an accepted claim under RCW 51.32.160 or by allowance of a claim for new injury or occupational disease, the department shall make the determination in a single order.  Pending entry of the order, benefits shall be paid promptly pursuant to this title by the entity which would be responsible if the claim were determined to be a new injury.  Benefits shall be paid at the lesser of the two benefit entitlements that may apply to the claim.

          (2) If, upon final determination, the entity that paid benefits under subsection (1) of this section is determined not to be responsible for payment of the benefits, such entity shall be reimbursed by the responsible entity for all amounts paid, unless subsection (3) of this section applies.

          (3) If, upon final determination, neither the department nor a self-insurer is determined to be responsible for the benefits, the recipient of benefits shall repay the entity having paid the benefits and recoupment may be made from future payments due the recipient on any claim with the state fund or self-insurer, as the case may be.  The director may exercise his or her discretion to waive, in whole or in part, the amount of any such repayments where the recovery would be against equity and good conscience.

          (4) If the department's determination under this section is appealed, benefits shall continue to be paid until the responsible entity is finally determined.