AN
ACT Relating to workers' compensation obligations of employers not domiciled in
Washington; amending RCW 51.12.120, 18.27.030, and 19.28.120; and creating new
sections.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that a competitive disadvantage exists in the construction
industry because of a disparity in workers' compensation coverage requirements
among the states. The intent of this act is (1) to provide an equal footing
for all contractors bidding on or engaging in construction work in this state,
(2) to ensure that all workers injured while in the course of employment in
this state receive the benefits to which they are entitled, and (3) to not
create disincentives for employers to hire workers in this state.
Sec.
2. RCW
51.12.120 and 1995 c 199 s 1 are each amended to read as follows:
(1)
If a worker, while working outside the territorial limits of this state,
suffers an injury on account of which he or she, or his or her beneficiaries,
would have been entitled to compensation under this title had ((such)) the
injury occurred within this state, ((such)) the worker, or his or
her beneficiaries, shall be entitled to compensation under this title((:
PROVIDED, That)) if at the time of ((such)) the injury:
(a)
His or her employment is principally localized in this state; or
(b)
He or she is working under a contract of hire made in this state for employment
not principally localized in any state; or
(c)
He or she is working under a contract of hire made in this state for employment
principally localized in another state whose workers' compensation law is not
applicable to his or her employer; or
(d)
He or she is working under a contract of hire made in this state for employment
outside the United States and Canada.
(2)
The payment or award of compensation or other recoveries, including settlement
proceeds, under the workers' compensation law of another state, territory,
province, or foreign nation to a worker or his or her beneficiaries otherwise
entitled on account of such injury to compensation under this title shall not
be a bar to a claim for compensation under this title((: PROVIDED,)) if
that claim under this title is timely filed. If compensation is paid or
awarded under this title, the total amount of compensation or other recoveries,
including settlement proceeds, paid or awarded the worker or beneficiary under
such other workers' compensation law shall be credited against the compensation
due the worker or beneficiary under this title.
(3)(a)
An employer not domiciled in this state who is employing workers in this state
in work for which the employer must be registered under chapter 18.27 RCW or
licensed under chapter 19.28 RCW, or prequalified under RCW 47.28.070, must
secure the payment of compensation under this title by:
(i)
Insuring the employer's workers' compensation obligation under this title with
the department;
(ii)
Being qualified as a self-insurer under this title; or
(iii)
For employers domiciled in a state or province of Canada subject to an
agreement entered into under subsection (7) of this section, as permitted by
the agreement, filing with the department a certificate of coverage issued by
the agency that administers the workers' compensation law in the employer's
state or province of domicile certifying that the employer has secured the
payment of compensation under the other state's or province's workers' compensation
law.
(b)
The department shall adopt rules to implement this subsection.
(4)
If a worker or beneficiary is entitled to compensation under this title by
reason of an injury sustained in this state while in the employ of an employer
who is domiciled in another state or province of Canada and the employer:
(a)
Is not subject to subsection (3) of this section and ((who)) has
neither opened an account with the department nor qualified as a self-insurer
under this title, ((such an)) the employer or his or her
insurance carrier shall file with the director a certificate issued by the
agency ((which)) that administers the workers' compensation law
in the state of the employer's domicile, certifying that ((such)) the
employer has secured the payment of compensation under the workers'
compensation law of ((such)) the other state and that with
respect to ((said)) the injury ((such)) the worker
or beneficiary is entitled to the benefits provided under ((such)) the
other state's law. ((In such event:
(a))) (b)
Has filed a certificate under subsection (3)(a)(iii) of this section or (a) of
this subsection (4):
(i)
The filing of ((such)) the certificate ((shall))
constitutes appointment by the employer or his or her insurance carrier
of the director as its agent for acceptance of the service of process in any
proceeding brought by any claimant to enforce rights under this title;
(((b)))
(ii) The director shall send to such employer or his or her insurance
carrier, by registered or certified mail to the address shown on such
certificate, a true copy of any notice of claim or other process served on the
director by the claimant in any proceeding brought to enforce rights under this
title;
(((c)(i)))
(iii) If ((such)) the employer is a self-insurer under the
workers' compensation law of ((such)) the other state or
province of Canada, ((such)) the employer shall, upon
submission of evidence or security, satisfactory to the director, of his or her
ability to meet his or her liability to ((such)) the claimant
under this title, be deemed to be a qualified self-insurer under this title; and
(((ii)))
(iv) If ((such)) the employer's liability under the
workers' compensation law of ((such)) the other state or
province of Canada is insured((, such)):
(A)
The employer's carrier, as to such claimant only, shall be deemed to be
subject to this title((: PROVIDED, That)). However, unless ((its))
the insurer's contract with ((said)) the employer requires
((it)) the insurer to pay an amount equivalent to the
compensation benefits provided by this title, the insurer's liability for
compensation shall not exceed ((its)) the insurer's liability
under the workers' compensation law of ((such)) the other state or
province; and
(((d)))
(B) If the total amount for which ((such)) the employer's
insurer is liable under (((c)(ii) above)) (b)(iv)(A) of this
subsection is less than the total of the compensation to which ((such))
the claimant is entitled under this title, the director may require the
employer to file security satisfactory to the director to secure the payment of
compensation under this title((;)).
(((e)))
(c) If ((such employer)) subject to subsection (3) of this
section, has not complied with subsection (3) of this section or, if not
subject to subsection (3) of this section, has neither qualified as a
self-insurer nor secured insurance coverage under the workers' compensation law
of another state or province of Canada, ((such)) the claimant
shall be paid compensation by the department((;)) and
(((f)
Any such)) the employer shall have the same rights and obligations,
and is subject to the same penalties, as other employers subject to this
title ((and where he or she has not provided coverage or sufficient coverage
to secure the compensation provided by this title to such claimant, the
director may impose a penalty payable to the department of a sum not to exceed
fifty percent of the cost to the department of any deficiency between the compensation
provided by this title and that afforded such claimant by such employer or his
or her insurance carrier if any)).
(((4)))
(5) As used in this section:
(a)
A person's employment is principally localized in this or another state when:
(i) His or her employer has a place of business in this or ((such))
the other state and he or she regularly works at or from ((such))
the place of business((,)); or (ii) if ((clause (i)
foregoing)) (a)(i) of this subsection is not applicable, he or she
is domiciled in and spends a substantial part of his or her working time in the
service of his or her employer in this or ((such)) the other
state;
(b)
"Workers' compensation law" includes "occupational disease
law" for the purposes of this section.
(((5)))
(6) A worker whose duties require him or her to travel regularly in the
service of his or her employer in this and one or more other states may agree
in writing with his or her employer that his or her employment is principally
localized in this or another state, and, unless ((such)) the
other state refuses jurisdiction, ((such)) the agreement shall
govern as to any injury occurring after the effective date of the agreement.
(((6)))
(7) The director ((shall be)) is authorized to enter into
agreements with the appropriate agencies of other states and provinces of
Canada ((which)) that administer their workers' compensation law
with respect to conflicts of jurisdiction and the assumption of jurisdiction in
cases where the contract of employment arises in one state or province and the
injury occurs in another((, and)). If the other state's or
province's law requires Washington employers to secure the payment of
compensation under the other state's or province's workers' compensation laws
for work that in Washington requires the employer to be registered under
chapter 18.27 RCW or licensed under chapter 19.28 RCW, or prequalified under
RCW 47.28.070, then employers domiciled in that state or province must purchase
compensation covering their workers engaged in that work in this state under
this state's industrial insurance law. When ((any such)) an
agreement under this subsection has been executed and ((promulgated))
adopted as a ((regulation)) rule of the department under
chapter 34.05 RCW, it ((shall)) binds all employers and workers
subject to this title and the jurisdiction of this title ((shall be)) is
governed by this ((regulation)) rule.
Sec.
3. RCW
18.27.030 and 1997 c 314 s 4 are each amended to read as follows:
(1)
An applicant for registration as a contractor shall submit an application under
oath upon a form to be prescribed by the director and which shall include the
following information pertaining to the applicant:
(a)
Employer social security number.
(b)
((As applicable: (i) The industrial insurance account number covering
employees domiciled in Washington; and (ii) evidence of workers' compensation
coverage in the applicant's state of domicile for the applicant's employees
working in Washington who are not domiciled in Washington)) Evidence of
workers' compensation coverage for the applicant's employees working in
Washington, as follows:
(i)
The applicant's industrial insurance account number issued by the department;
(ii)
The applicant's self-insurer number issued by the department; or
(iii)
For applicants domiciled in a state or province of Canada subject to an
agreement entered into under RCW 51.12.120(7), as permitted by the agreement,
filing a certificate of coverage issued by the agency that administers the
workers' compensation law in the applicant's state or province of domicile
certifying that the applicant has secured the payment of compensation under the
other state's or province's workers' compensation law.
(c)
Employment security department number.
(d)
State excise tax registration number.
(e)
Unified business identifier (UBI) account number may be substituted for the
information required by (b)((,)) of this subsection if the applicant
will not employ employees in Washington, and by (c)((,)) and (d) of
this subsection.
(f)
Type of contracting activity, whether a general or a specialty contractor and
if the latter, the type of specialty.
(g)
The name and address of each partner if the applicant ((be)) is a
firm or partnership, or the name and address of the owner if the applicant ((be))
is an individual proprietorship, or the name and address of the
corporate officers and statutory agent, if any, if the applicant ((be)) is
a corporation. The information contained in such application ((shall be))
is a matter of public record and open to public inspection.
(2)
The department may verify the workers' compensation coverage information
provided by the applicant under subsection (1)(b) of this section, including
but not limited to information regarding the coverage of an individual employee
of the applicant. If coverage is provided under the laws of another state, the
department may notify the other state that the applicant is employing employees
in Washington.
(3)
The department shall deny an application for registration if the applicant has
been previously registered as a sole proprietor, partnership, or corporation
and the applicant has an unsatisfied final judgment against him or her in an
action based on this chapter that was incurred during a previous registration
under this chapter.
Sec.
4. RCW
19.28.120 and 1992 c 217 s 2 are each amended to read as follows:
(1)
It is unlawful for any person, firm, partnership, corporation, or other entity
to engage in, conduct, or carry on the business of installing or maintaining
wires or equipment to convey electric current, or installing or maintaining
equipment to be operated by electric current as it pertains to the electrical
industry, without having an unrevoked, unsuspended, and unexpired electrical
contractor license, issued by the department in accordance with this chapter.
All electrical contractor licenses expire twenty-four calendar months following
the day of their issue. The department may issue an electrical contractors
license for a period of less than twenty-four months only for the purpose of
equalizing the number of electrical contractor licenses ((which)) that
expire each month. Application for an electrical contractor license shall be made
in writing to the department, accompanied by the required fee. The application
shall state:
(a)
The name and address of the applicant; in case of firms or partnerships, the
names of the individuals composing the firm or partnership; in case of corporations,
the names of the managing officials thereof;
(b)
The location of the place of business of the applicant and the name under which
the business is conducted;
(c)
Employer social security number;
(d)
((As applicable: (i) The industrial insurance account number covering
employees domiciled in Washington; and (ii) evidence of workers' compensation
coverage in the applicant's state of domicile for the applicant's employees
working in Washington who are not domiciled in Washington)) Evidence of
workers' compensation coverage for the applicant's employees working in
Washington, as follows:
(i)
The applicant's industrial insurance account number issued by the department;
(ii)
The applicant's self-insurer number issued by the department; or
(iii)
For applicants domiciled in a state or province of Canada subject to an
agreement entered into under RCW 51.12.120(7), as permitted by the agreement,
filing a certificate of coverage issued by the agency that administers the
workers' compensation law in the applicant's state or province of domicile
certifying that the applicant has secured the payment of compensation under the
other state's or province's workers' compensation law;
(e)
Employment security department number;
(f)
State excise tax registration number;
(g)
Unified business identifier (UBI) account number may be substituted for the
information required by (d)((,)) of this subsection if the applicant
will not employ employees in Washington, and by (e)((,)) and (f) of
this subsection; and
(h)
Whether a general or specialty electrical contractor license is sought and, if
the latter, the type of specialty. Electrical contractor specialties include,
but are not limited to: Residential, domestic appliances, pump and irrigation,
limited energy system, signs, nonresidential maintenance, and a combination
specialty. A general electrical contractor license shall grant to the holder
the right to engage in, conduct, or carry on the business of installing or
maintaining wires or equipment to carry electric current, and installing or
maintaining equipment, or installing or maintaining material to fasten or
insulate such wires or equipment to be operated by electric current, in the
state of Washington. A specialty electrical contractor license shall grant to
the holder a limited right to engage in, conduct, or carry on the business of
installing or maintaining wires or equipment to carry electrical current, and
installing or maintaining equipment; or installing or maintaining material to
fasten or insulate such wires or equipment to be operated by electric current
in the state of Washington as expressly allowed by the license.
(2)
The department may verify the workers' compensation coverage information
provided by the applicant under subsection (1)(d) of this section, including
but not limited to information regarding the coverage of an individual employee
of the applicant. If coverage is provided under the laws of another state, the
department may notify the other state that the applicant is employing employees
in Washington.
(3)
The application for a contractor license shall be accompanied by a bond in the
sum of four thousand dollars with the state of Washington named as obligee in
the bond, with good and sufficient surety, to be approved by the department. The
bond shall at all times be kept in full force and effect, and any cancellation
or revocation thereof, or withdrawal of the surety therefrom, suspends the
license issued to the principal until a new bond has been filed and approved as
provided in this section. Upon approval of a bond, the department shall on the
next business day deposit the fee accompanying the application in the
electrical license fund and shall file the bond in the office. The department
shall upon request furnish to any person, firm, partnership, corporation, or
other entity a certified copy of the bond upon the payment of a fee that the
department shall set by rule. The fee shall cover but not exceed the cost of
furnishing the certified copy. The bond shall be conditioned that in any
installation or maintenance of wires or equipment to convey electrical current,
and equipment to be operated by electrical current, the principal will comply
with the provisions of this chapter and with any electrical ordinance, building
code, or regulation of a city or town adopted pursuant to RCW 19.28.010(((2)))
(3) that is in effect at the time of entering into a contract. The bond
shall be conditioned further that the principal will pay for all labor,
including employee benefits, and material furnished or used upon the work,
taxes and contributions to the state of Washington, and all damages that may be
sustained by any person, firm, partnership, corporation, or other entity due to
a failure of the principal to make the installation or maintenance in
accordance with this chapter or any applicable ordinance, building code, or
regulation of a city or town adopted pursuant to RCW 19.28.010(((2))) (3).
In lieu of the surety bond required by this section the license applicant may
file with the department a cash deposit or other negotiable security acceptable
to the department. If the license applicant has filed a cash deposit, the
department shall deposit the funds in a special trust savings account in a
commercial bank, mutual savings bank, or savings and loan association and shall
pay annually to the depositor the interest derived from the account.
(4)
The department shall issue general or specialty electrical contractor licenses
to applicants meeting all of the requirements of this chapter. The provisions
of this chapter relating to the licensing of any person, firm, partnership,
corporation, or other entity including the requirement of a bond with the state
of Washington named as obligee therein and the collection of a fee therefor,
are exclusive, and no political subdivision of the state of Washington may
require or issue any licenses or bonds or charge any fee for the same or a
similar purpose. No person, firm, partnership, corporation, or other entity
holding more than one specialty contractor license under this chapter may be
required to pay an annual fee for more than one such license or to post more
than one four thousand dollar bond, equivalent cash deposit, or other
negotiable security.
(5)
To obtain a general or specialty electrical contractor license the applicant
must designate an individual who currently possesses an administrator's
certificate as a general electrical contractor administrator or as a specialty
electrical contractor administrator in the specialty for which application has been
made. Administrator certificate specialties include but are not limited to:
Residential, domestic, appliance, pump and irrigation, limited energy system,
signs, nonresidential maintenance, and combination specialty. To obtain an
administrator's certificate an individual must pass an examination as set forth
in RCW 19.28.123 unless the applicant was a licensed electrical contractor at
any time during 1974. Applicants who were electrical contractors licensed by
the state of Washington at any time during 1974 are entitled to receive a
general electrical contractor administrator's certificate without examination
if the applicants apply prior to January 1, 1984. The board of electrical
examiners shall certify to the department the names of all persons who are
entitled to either a general or specialty electrical contractor administrator's
certificate.
NEW SECTION. Sec. 5. The
workers' compensation advisory committee established under RCW 51.04.110 shall
appoint a subcommittee to review section 2 of this act and related issues, as
determined by the committee, and report its findings and recommendations to the
committee. The committee shall make a final report to the department of labor
and industries by December 15, 1998. The department shall report on the study
to the appropriate committees of the legislature by January 15, 1999.
