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The ten thousand dollars appropriated above herein shall be repaid to the State out of the special funds raised under this act when and as a sum sufficient therefor is available hereunder. Act in ef- SEC. 78. This act, except as prescribed in section fifty-two, shall become effective January the first, nineteen hundred and nineteen, and section fifty-two shall become effective October first, nineteen hundred and eighteen.

fect.

Repeal.

SEC. 79. All acts and parts of acts inconsistent with any provisions of this act are hereby repealed.

Became a law March 21, 1918, over the governor's veto.

WASHINGTON.

Compensation of Workmen for Injuries.

[The compensation law of the State (chapter 74, acts of 1911) is amended in various particulars by chapters 28 and 120, acts of 1917. Section 3 is amended by chapter 120 by adding to the paragraph beginning "Any individual employer" the following:]

Provided, That no such employee or the beneficiaries or de- When empendents of such employee shall be entitled to benefits under this ployees may be compensated. act unless the commission prior to the date of the injury has received notice in writing of the fact that such employee is being carried upon the pay roll prior to the date of the injury as the result of which claims for compensation are made.

[Section 4 as amended by chapter 188, acts of 1915, is further amended by making the premium rate for construction in the item, "Iron, or steel frame structures or parts of structures," .080 instead of .065; also by inserting in the paragraph following the table, after the sentence "An adjustment upon such pay roll shall be made as in other cases," the following:]

Every employer within the provisions of this act shall on or Monthly before the fifteenth day of each month furnish the department statement. with a true and accurate pay roll showing the aggregate number of workdays, that is men-days, during which workmen were em ployed by him during preceding month, the total amount paid to such workmen during said month, and a segregation of employment in the different classes provided in this act. The sufficiency of such statement shall be subject to the approval of the industrial insurance commission.

[The paragraph relating to deductions from wages is amended so as to read as follows:]

premiums

It shall be unlawful for the employer to deduct or obtain any Deductions part of the premium required by this section to be by him paid for from the wages or earnings of his workmen or any of them, and forbidden. the making or attempting to make any such deduction shall be a gross misdemeanor. The industrial insurance commission shall on or before the 30th day of September, 1917, and semiannually thereafter make corrections of classifications as between classes of industries if and as experience shall show error or inaccuracy Adjustment therein, and, under and conformably to the foregoing rule of of rates. classification and premium rating, shall at the same time lower the premium rate of any establishment or plant if and as experience shall show it to maintain such a high standard of safety or accident prevention as to differentiate it to that extent from other like establishments or plants, or shall raise the premium rate of any establishment or plant if and as experience shall show it to maintain so low a standard of safety or accident prevention as to justly warrant its being subjected to that extent to a greater contribution to the accident fund. From the original classification or premium rating or any change made therein any employer claiming to be aggrieved may upon application, have a hearing before the industrial insurance commission upon notice to the interested parties and in the manner provided in section 20 a review by the courts. If, at the end of any year, it shall be seen that the contribution to the accident fund by any class of industry shall be less than the drain upon the fund on account of that class, the deficiency shall be made good to the fund on the 1st day of February of the following year by the employers of that class in proportion to their respective payments for the past year.

[Section 5 is amended by chapter 28, by adding to subsection (b) a new paragraph, as follows:]

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Class serve funds.

Annuities.

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(4) In case of total permanent disability, if the character of the injury is such as to render the workman so physically helpless as to require the services of a constant attendant, the monthly payment to such workman shall be increased twenty dollars ($20) per month so long as such requirement shall continue, but such increase shall not obtain or be operative while the workman is receiving care under or pursuant to any of the provisions of sections 33 to 46, inclusive.

[Subsections (e) and (f) of this section are amended so as to read as follows:]

(e) There is hereby created in the office of the State treasurer a fund for each of the classes specified in section 4, to be known and designated as the reserve fund for that class, out of which shall be made the payments specified in this section for all cases of death or permanent total disability arising in that class, including future payments to be made for cases of that character which have heretofore arisen. Into the reserve fund for each class there shall be forthwith placed all unexpended funds, in cash or invested, heretofore set aside for cases in that class. For every case resulting in death or permanent total disability hereafter arising it shall be the duty of the department to forthwith notify the State treasurer and he shall transfer from the accident fund of the proper class to the reserve fund of that class a sum of money for that case equal to the estimated present cash value of the monthly payments provided for it, to be calculated upon the basis of an annuity covering the payments in this section provided to be made for the case. Such annuities shall be based upon tables to be prepared for that purpose by the State insurance commissioner and by him furnished to the State treasurer, calculated upon standard mortality tables with an interest assumption of four (4) per cent per annum. The State treasurer Investment, shall invest the reserve for each class in either State capitol etc., of funds. building bonds issued to take up capitol building warrants now outstanding, or in the class of securities provided by law for the investment of the permanent school fund, and the interest or other earnings of the reserve fund of each class shall become a part of the reserve fund itself. As soon as possible after October 1, of each year beginning in the year 1918, the State insurance commissioner shall expert the reserve fund of each class to ascertain its standing as of October 1, of that year, and the relation of its outstanding annuities at their then value to the cash on hand or at interest belonging to that fund. He shall promptly report the result of his examination to the State treasurer. If the report show that there was on said October 1, in the reserve fund of any class in cash or at interest a greater sum than the then annuity value of the outstanding pension obligations of that class, the surplus shall be forthwith turned over to the accident fund of that class, but if the report show the contrary condition of any class reserve, the deficiency shall be forthwith made good out of the accident fund of that class. The State treasurer shall keep accurate account of each class reserve fund and the investment and earnings thereof, and to meet current demands for pension or lump-sum payments may, if necessary, make temporary loans to any class reserve fund out of the accident fund for that class, repaying same from the earnings of that reserve fund or from collections of its investments or, if necessary, sales of the same.

Permanent

partial

ability.

(f) Permanent partial disability means the loss of either one dis foot, one leg, one hand, one arm, one eye, one or more fingers, one or more toes, any dislocation where ligaments were severed where repair is not complete, or any other injury known to surgery to be permanent partial disability. For the permanent partial disabilities here specifically described, the injured workman shall receive compensation as follows:

Schedule.

Loss of one leg amputated so near the hip that an artificial limb can not be worn, $2,000.

Loss of one leg at or above the knee so that an artificial limb can be worn, $1,900.

Loss of one leg below the knee, $1,300.

Loss of the major arm at or above the elbow, $1,900.

Loss of the major hand at wrist, $1,600.

Loss of one eye by enucleation, $1,200.

Loss of sight of one eye, $900.

Complete loss of hearing in both ears, $1,900.

Complete loss of hearing in one ear, $500.

Other in

Compensation for any other permanent partial disability shall be in the proportion which the extent of such other disability juries. shall bear to that permanent partial disability above specified which most closely resembles and approximates in degree of disability such other disability, but not in any case to exceed the sum of two thousand dollars ($2,000). If the injured workman be under the age of twenty-one years and unmarried, the parents or parent shall also receive a lump-sum payment equal to ten per cent of the amount awarded the minor workman.

[A new subsection is also added, as follows:]

(1) No workman injured after June 30, 1917, shall receive or be entitled to receive compensation out of the accident fund for or during the day on which his injury was received or the seven days following the same, but if at the end of thirty days following the day of the receipt of his injury his incapacity shall still exist, there shall be included in the next payment to him out of the accident fund compensation for said omitted period.

[Section 7 is amended by chapter 28, so as to read as follows:] SEC. 7 In case of death or permanent total disability the monthly payment provided may be converted, in whole or in part, into a lump-sum payment (not in any case to exceed $4,000) equal or proportionate as the case may be to the value of the annuity then remaining, to be fixed and certified by the State insurance commissioner, in which event the monthly payment shall cease in whole or in part accordingly or proportionately. Such conversions may only be made after the happening of the injury and upon the written application of the beneficiary (in case of minor children, the application may be by either parent) to the department, and shall rest in the discretion of the department. Within the rule aforesaid the amount and value of the lump-sum payment may be agreed upon between the department and the beneficiary.

Waiting

time.

Lump sums.

Defaulted

[Section 8 is amended by chapter 120, so as to read as follows:] SEC. 8. If any employer shall default in any payment to the accident fund or the medical aid fund, the sum due shall be col- payments. lected by action at law in the name of the State as plaintiff, and such right of action shall be in addition to any other right of action or remedy. If such default be after demand, there shall also be collected a penalty equal to twenty-five per cent of the amount of the defaulted payment or payments, and the commission may require from the defaulting employer a bond to the State for the benefit of the accident and medical aid funds, with surety to their satisfaction, in the penalty of double the amount of the estimated payments which will be required from such employer into the said funds for and during the ensuing one year, conditioned for the prompt and punctual making of all payments into said funds required during said year period, together with any penalty or penalties incurred. In case of refusal or failure after written demand personally served to furnish such bond, the State in an action brought by the attorney general in its name shall be entitled to an injunction restraining such delinquent from prosecuting an extra hazardous occupation or work until such bond shall be furnished, and any sale, transfer or lease attempted to be made by such delinquent during the period of such default, of his works, plant or lease thereto shall be invalid until all past delinquencies are made good and such bond furnished. All actions for the recovery of such payments shall be brought in the superior court and in all cases of insolvency, as

Recovery.

:

signment for the benefit of creditors, or bankruptcy, the claim of the State for payments due herein shall be a claim prior to all other claims, except taxes, and it shall be the duty of all receivers or assignees for the benefit of creditors to notify the industrial insurance department of such receivership or assign ment within thirty (30) days from the date of their appointment and qualification. In any action or proceeding brought for the recovery of payments due upon the pay roll of an employer, the certificate of the industrial insurance department that an audit has been made of the pay roll of such employer pursuant to the direction of the department and of the amount of such pay roll for the period stated in the certificate shall be prima facie evidence of such fact.

[Section 13 is amended by chapter 28, by adding thereto the following:] Traveling If the workman necessarily incurs traveling expenses in attending for examination pursuant to the request of the department, such traveling expenses shall be repaid to him out of the accident fund upon proper voucher and audit.

expenses.

Interstate

commerce,

[Section 18 is amended by chapter 28, so as to read as follows:] SEC. 18. Inasmuch as it has proved impossible in the case of employees engaged in maintenance and operation of railways doing interstate, foreign and intrastate commerce, and in maiute nance and construction of their equipment, to separate and distinguish the connection of such employees with interests [interstate] or foreign commerce from their connection with intrastate commerce, and such employees have, in fact, received no compensation under this act, the provisions of this act shall not apply to work performed in the maintenance and operation of such railroads or performed in the maintenance or construction of their equipment, or to the employees engaged therein, but nothing herein shall be construed as excluding from the operation of this act railroad construction work, or the employees engaged thereon: Provided, however, That common carriers by railroad engaged in such interstate or foreign commerce and in intrastate commerce shall, in all cases where liability does not exist under the laws of the United States, be liable in damages to any person suffering injury while employed by such carrier, or in case of the Federal death of such employee to his surviving wife and child, or chil dren, and if no surviving wife or child or children, then to the parents, sisters, or minor brothers, residents of the United States at the time of such death and who were dependent upon such deceased for support, to the same extent and subject to the same limitations as the liability now existing, or hereafter created, by the laws of the United States governing recoveries by railroad employees injured while engaged in interstate commerce.

law.

aid.

Bond.

Medical,etc.,

Classes industries.

[Section 22 is amended by chapter 120 by adding thereto the following:]

Each commissioner shall give a surety company bond in the sum of twenty-five thousand dollars ($25,000) payable to the State of Washington, conditioned upon the faithful performance of his duties, and the person designated by the said commission as claim agent shall give a surety company bond in the sum of twenty thousand dollars ($20,000) payable to the State of Washington, conditioned upon the faithful performance of his duties.

[New sections were added by chapter 28, as follows:]

SEC. 33. It is the intent to require the industries of the State to furnish medical, surgical and hospital care to their injured workmen and to place the expense thereof upon each industry and upon each establishment in each industry as near as may be in the of proportion in which it produces injury and creates expeuse. To this end the State medical aid board hereinafter created shall divide the industries of the State into five classes representing five degrees in the causation of injury and consequent expense for the medical, surgical and hospital care thereof, the said classes to be designated respectively, class A, class B, class C, class D, class E. The industries shall be distributed into these classes as fol

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