S-1192               _______________________________________________

                                                   SENATE BILL NO. 5667

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators McMullen and Metcalf

Read first time 2/1/89 and referred to Committee on   Economic Development & Labor.

AN ACT Relating to industrial insurance coverage for distressed traditional industries; adding a new section to chapter 51.16 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 51.16 RCW to read as follows:

          (1) In making classifications and establishing premiums under RCW 51.16.035, the supervisor may designate a special classification for distressed traditional industries upon making the following findings:

          (a) The industry has experienced at least a fifty percent decrease in reportable hours which serve as a basis for premium calculation during the immediately preceding five-year period;

          (b) The industry has experienced substantial foreign competition in the immediately preceding five-year period which appears likely to continue or increase in the immediate future;

          (c) The current premium level for the industry:

          (i) Is among the highest of all classifications; and

          (ii) Constitutes a threat to the survival of the industry; and

          (d) The industry is a traditional industry within the state.

          (2) Having made the findings in subsection (1) of this section and having concluded that the industry is a distressed traditional industry, the supervisor may set the basic rate for that industry at fifty percent of the current rate for a period of three years.

          (3) At the end of the initial three-year period, the director may extend the fifty percent reduction for two years if he or she determines that:

          (a) The same conditions exist which led to the initial determination of the industry being a distressed traditional industry;

          (b) There has been an increase over the initial three-year period of at least fifty percent in the percentage of known employers in the industry who are in substantially full reporting compliance; and

          (c) During the initial three-year period, at least fifty percent of the known employers in the industry have utilized the loss control services and Washington industrial safety and health act voluntary services of the department.

          (4) After the three-year period, and two-year extension, if granted, the rate shall be set at a level which is consistent with actuarial solvency:  PROVIDED, That the rate may be increased no more than twenty-five percent during any twelve-month period.

NEW SECTION. Sec. 2.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.