_______________________________________________
HOUSE
BILL 1349
_______________________________________________
Passed
Legislature - 1997 Regular Session
State of Washington 55th
Legislature 1997 Regular Session
By
Read first time 01/23/97.
Referred to Committee on Commerce & Labor.
Extending
existing employer workers' compensation group self-insurance.
AN
ACT Relating to extending existing employer workers' compensation group
self-insurance to the logging industry; and adding a new section to chapter
51.14 RCW.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 51.14 RCW to read as follows:
(1)
Any two or more employers in the logging industry may enter into agreements to
form self-insurance groups for the purposes of this chapter if:
(a)
The employers are members of an organization that meets the following
conditions:
(i)
The organization has been in existence for at least five years;
(ii)
The organization was formed for a purpose other than that of obtaining workers'
compensation coverage under this section; and
(iii)
The occupations of the employers within the organization are substantially
similar and within the logging industry, taking into consideration the nature
of the services being performed by employees of the employers; and
(b)
The formation and operation of the group self-insurance program will improve
accident prevention and claim management for the employers in the group.
(2)
A self-insurance group formed under this section shall organize and operate
under rules adopted by the director under RCW 51.14.160.
(3)
A self-insurance group under this chapter is an "employer" for the
purposes of this chapter, except RCW 51.14.077, and may qualify as a
self-insurer if it meets all the other requirements of this chapter.
(4)(a)
The group self-insurers' insolvency trust account is created in the custody of
the state treasurer. All receipts from the insolvency assessment under (b) of
this subsection shall be deposited into the account. Expenditures from the
account may be used only to provide for the unsecured benefits paid to the
injured employees of group self-insured employers under this title for
insolvent or defaulting groups of member employers and for the department's
associated administrative costs, including attorneys' fees. Only the director
or the director's designee may authorize expenditures from the account. The
account is subject to allotment procedures under chapter 43.88 RCW, but no
appropriation is required for expenditures.
(b)
To fund the group self-insurers' insolvency trust account, the department shall
levy an insolvency assessment on a postinsolvency basis and after the
defaulting group's and individual member employers' security deposit assets and
reinsurance, if any, have been exhausted. The department shall impose
insolvency assessments on all group self-insurers except school districts and
hospitals. The department shall adopt rules to set forth the manner of
imposing and collecting assessments to ensure that group self-insured employers
pay into the account in proportion to their claim costs. The department's
rules must provide that self-insurance groups or member employers who have
surrendered their certification are assessed for a period of a maximum of three
calendar years following the termination date of their certification.
(c) The director shall adopt rules to carry out the purposes of
this subsection, including but not limited to: Governing the formation of the
group self-insurers' insolvency trust account for the purpose of this chapter;
governing the organization and operation of the self-insurers' insolvency trust
account to assure compliance with this chapter; requiring adequate
accountability of the collection and disbursement of funds in the group
self-insurers' insolvency trust account; and any other provisions necessary to
carry out this chapter.
