Z-787                 _______________________________________________


                                                   HOUSE BILL NO. 1117



                                                                            C 049 L 89



State of Washington                               51st Legislature                              1989 Regular Session


By Representatives Patrick, Vekich, R. King, Sayan, Winsley and McLean; by request of Department of Labor and Industries



Read first time 1/16/89 and referred to Committee on Commerce & Labor.



AN ACT Relating to requirements for workers' compensation employer group participation in the retrospective rating program; and amending RCW 51.16.035.




        Sec. 1.  Section 16, chapter 289, Laws of 1971 ex. sess. as last amended by section 4, chapter 129, Laws of 1980 and RCW 51.16.035 are each amended to read as follows:

          The department shall classify all occupations or industries in accordance with their degree of hazard and fix therefor basic rates of premium which shall be the lowest necessary to maintain actuarial solvency of the accident and medical aid funds in accordance with recognized insurance principles.  The department shall formulate and adopt rules and regulations governing the method of premium calculation and collection and providing for a rating system consistent with recognized principles of workers' compensation insurance which shall be designed to stimulate and encourage accident prevention and to facilitate collection.  The department may annually, or at such other times as it deems necessary to maintain solvency of the funds, readjust rates in accordance with the rating system to become effective on such dates as the department may designate.

          The department may insure the workers' compensation obligations of employers as a group if the following conditions are met:

          (1) All the employers in the group are members of an organization that has been in existence for at least two years;

          (2) The organization was formed for a purpose other than that of obtaining workers' compensation coverage;

          (3) The occupations or industries of the employers in the organization are substantially similar, taking into consideration the nature of the services being performed by workers of such employers; and

          (4) ((The employers in the group constitute at least fifty percent of the total employers in such organization; and

          (5))) The formation and operation of the group program in the organization will substantially improve accident prevention and claim management for the employers in the group.

          In providing an employer group plan under this section, the department may consider an employer group as a single employing entity for purposes of dividends or premium discounts.

                                                                                                                           Passed the House March 2, 1989.


                                                                                                                                         Speaker of the House.


                                                                                                                             Passed the Senate April 4, 1989.


                                                                                                                                       President of the Senate.