1242 AMH LISK CORD 2

HB 1242 ‑ H AMDS 1047 LOST 2-14-94

By Representative Lisk and others

     On page 3, line 15, after "board" strike ", subject to the requirements of RCW 51.32.240(3)"

     On page 3, after line 16, insert the following:

     "Sec. 2. RCW 51.16.140  and 1989 c 385 ' 3 are each amended to read as follows:

     (1) Every employer who is not a self-insurer shall deduct from the pay of each of his or her workers:

(a) One-half of the amount ((he or she)) the employer is required to pay, for medical benefits within each risk classification.  Such amount shall be periodically determined by the director and reported by him or her to all employers under this title:  PROVIDED, That the state governmental unit shall pay the entire amount into the medical aid fund for volunteers, as defined in RCW 51.12.035, and the state apprenticeship council shall pay the entire amount into the medical aid fund for registered apprentices or trainees, for the purposes of RCW 51.12.130.  The deduction under this section is not authorized for premiums assessed under RCW 51.16.210; and

(b) Except as limited by subsection (3) of this section, a surcharge of one-half of one percent of the premium deduction made under (a) of this subsection.

(2) Except as limited by subsection (3) of this section, a self-insured employer shall deduct from the pay of each of his or her workers an amount equal to one-fourth of one percent of the basic manual premium rate established by the department for the applicable risk classification.

(3) The amount deducted under subsection (1)(b) of this section shall be paid by the employer along with the employer premiums required under this title.  The amount deducted under subsection (2) of this section shall be paid quarterly to the department by the self-insured employer.  The amounts remitted shall be deposited into the benefit repayment fund. The  deduction may not be made under subsection (1)(b) or (2) of this section in any calendar quarter if in the immediately preceding calendar quarter the amount in the benefit payment fund is five hundred thousand dollars or more.

     (((2))) (4) It shall be unlawful for the employer, unless specifically authorized by this title, to deduct or obtain any part of the premium or other costs required to be by him or her paid from the wages or earnings of any of his or her workers, and the making of or attempt to make any such deduction shall be a gross misdemeanor. 

NEW SECTION. Sec. 3.  A new section is added to chapter 51.44 RCW to read as follows:

     The benefit repayment fund is created in the custody of the state treasurer.  All receipts from the deductions required under RCW 51.16.140(1)(b) and (2) shall be deposited into the fund. Transfers from the benefit repayment fund to the medical aid fund or the accident fund, or payments from the fund to self-insured employers, as applicable, shall be made when benefits are paid under RCW 51.52.060(5) and the department order granting benefits is reversed or modified resulting in an overpayment of benefits to the worker."

EFFECT:  The amendment requires state fund employers to deduct a surcharge amount (0.05 percent of a worker's medical aid fund premium) from workers' wages to create a fund to repay benefits that are overpaid during an industrial insurance appeal. Self-insured employers will deduct 0.025 percent of the basic premium rate for the risk class from their workers' wages.  If the fund reaches $500,000, deductions from wages will cease in the next calendar quarter.  Language is deleted that would have permitted overpaid benefits to be recouped from a worker.