HOUSE BILL REPORT

HB 399

BYRepresentatives Wang, R. King, Patrick, Chandler, McMullen and Winsley; by request of Joint Select Committee on Industrial Insurance and Department of Labor and Industries

Revising provisions relating to industrial insurance premiums.

House Committe on Commerce & Labor

Majority Report:     Do pass.  (10)

     Signed by Representatives Wang, Chair; Cole, Vice Chair; Fisch, Fisher, O'Brien, Patrick, Sanders, Sayan, C. Smith and Walker.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE FEBRUARY 25, 1987

BACKGROUND:

Under Washington's workers' compensation system, the accident fund rate paid by most employers is based on their accident experience.  In the construction industry, however, employers' rates are computed from a base rate that applies to all construction employers regardless of accident experience, except for a small allowance made under a modified experience rated formula. The rate may not exceed 120 percent of the rate necessary to assure that adequate premiums are collected to pay all claims for the construction industry class.

SUMMARY:

The provision is repealed that requires the industrial insurance premiums of the building industry to be computed only on the base rate without regard to accident experience.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     Audrey Border; Dick Davis, Director, Department of Labor and Industries; Joe Dear, Deputy Director, Department of Labor and Industries; John Winney, Injured Workers' Awareness Committee; Enid Layes, Home Builders Association; Duke Schaub, Associated General Contractors; Joe Albo, Washington State Trial Lawyers Association; and Gary Smith, Independent Business Association.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Without experience rating of employer workers' compensation premiums, there is little incentive for an individual employer to undertake costly safety programs.

House Committee - Testimony Against: None Presented.