House File 2027

                                       HOUSE FILE       
                                       BY  HORBACH


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the provision of workers' compensation
  2    benefits, to the release of information concerning such
  3    benefits, and to workers' compensation liability insurance.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5406YH 80
  6 av/pj/5

PAG LIN

  1  1    Section 1.  Section 22.7, Code Supplement 2003, is amended
  1  2 by adding the following new subsection:
  1  3    NEW SUBSECTION.  48.  Confidential information filed with
  1  4 the workers' compensation commissioner as defined in section
  1  5 86.45, subsection 1.
  1  6    Sec. 2.  Section 85.27, subsection 7, Code 2003, is amended
  1  7 to read as follows:
  1  8    7.  If, after the third day of incapacity to work following
  1  9 the date of sustaining a compensable injury which does not
  1 10 result in permanent partial disability, or if, at any time
  1 11 after sustaining a compensable injury which results in
  1 12 permanent partial disability, an employee, who is not
  1 13 receiving weekly benefits under section 85.33 or section
  1 14 85.34, subsection 1, returns to work and is required to leave
  1 15 work for one full day or less to receive services pursuant to
  1 16 this section, the employee shall be paid an amount equivalent
  1 17 to the wages lost at the employee's regular rate of pay for
  1 18 the time the employee is required to leave work.  For the
  1 19 purposes of this subsection, "day of incapacity to work" means
  1 20 eight hours of accumulated absence from work due to incapacity
  1 21 to work or due to the receipt of services pursuant to this
  1 22 subsection.  The employer shall make the payments under this
  1 23 subsection as wages to the employee after making such
  1 24 deductions from the amount as legally required or customarily
  1 25 made by the employer from wages.  Payments made under this
  1 26 subsection shall be required to be reimbursed pursuant to any
  1 27 insurance policy covering workers' compensation.  Payments
  1 28 under this subsection shall not be construed to be payment of
  1 29 weekly benefits.
  1 30    Sec. 3.  Section 85.38, subsection 2, unnumbered paragraph
  1 31 2, Code 2003, is amended to read as follows:
  1 32    If an employer denies liability under this chapter, chapter
  1 33 85A, or chapter 85B, for payment for any medical services
  1 34 received or weekly compensation requested by an employee with
  1 35 a disability, and the employee is a beneficiary under either
  2  1 an individual or group plan for nonoccupational illness,
  2  2 injury, or disability, the nonoccupational plan shall not deny
  2  3 payment for the medical services received of benefits under
  2  4 the plan on the basis that the employer's liability for the
  2  5 medical services under this chapter, chapter 85A, or chapter
  2  6 85B is unresolved.
  2  7    Sec. 4.  Section 86.24, subsection 4, Code 2003, is amended
  2  8 to read as follows:
  2  9    4.  A transcript of a contested case proceeding shall be
  2 10 provided by an appealing party at the party's cost and an
  2 11 affidavit shall be filed by the appealing party or the party's
  2 12 attorney with the workers' compensation commissioner within
  2 13 ten days after the filing of the appeal to the workers'
  2 14 compensation commissioner stating that the transcript has been
  2 15 ordered and identifying the name and address of the reporter
  2 16 or reporting firm from which the transcript has been ordered.
  2 17    Sec. 5.  NEW SECTION.  86.45  CONFIDENTIAL INFORMATION.
  2 18    1.  "Confidential information", for the purposes of this
  2 19 section, means all information that is filed with the workers'
  2 20 compensation commissioner as a result of an employee's injury
  2 21 or death that would allow the identification of the employee
  2 22 or the employee's dependents.  Confidential information
  2 23 includes first reports of injury and subsequent reports of
  2 24 claim activity.  Confidential information does not include
  2 25 pleadings, motions, decisions, opinions, or applications for
  2 26 settlement that are filed with the workers' compensation
  2 27 commissioner.
  2 28    2.  The workers' compensation commissioner shall not
  2 29 disclose confidential information except as follows:
  2 30    a.  Pursuant to the terms of a written waiver of
  2 31 confidentiality executed by the employee or the dependents of
  2 32 the employee whose information is filed with the workers'
  2 33 compensation commissioner.
  2 34    b.  To another governmental agency, or to an advisory,
  2 35 rating, or research organization, for the purpose of compiling
  3  1 statistical data, evaluating the state's workers' compensation
  3  2 system, or conducting scientific, medical, or public policy
  3  3 research, where such disclosure will not allow the
  3  4 identification of the employee or the employee's dependents.
  3  5    c.  To the employee or to the agent or attorney of the
  3  6 employee whose information is filed with the workers'
  3  7 compensation commissioner.
  3  8    d.  To the person or to the agent of the person who
  3  9 submitted the information to the workers' compensation
  3 10 commissioner.
  3 11    e.  To an agent, representative, attorney, investigator,
  3 12 consultant, or adjuster of an employer, or insurance carrier
  3 13 or third=party administrator of workers' compensation
  3 14 benefits, who is involved in administering a claim for such
  3 15 benefits related to the injury or death of the employee whose
  3 16 information is filed with the workers' compensation
  3 17 commissioner.
  3 18    f.  To all parties to a contested case proceeding before
  3 19 the workers' compensation commissioner in which the employee
  3 20 or a dependent of the employee, whose information is filed
  3 21 with the workers' compensation commissioner, is a party.
  3 22    g.  In compliance with a subpoena.
  3 23    h.  To an agent, representative, attorney, investigator,
  3 24 consultant, or adjuster of the employee, employer, or
  3 25 insurance carrier or third=party administrator of insurance
  3 26 benefits, who is involved in administering a claim for
  3 27 insurance benefits related to the injury or death of the
  3 28 employee whose information is filed with the workers'
  3 29 compensation commissioner.
  3 30    3.  This section does not create a cause of action for a
  3 31 violation of its provisions against the workers' compensation
  3 32 commissioner or against the state or any governmental
  3 33 subdivision of the state.
  3 34    Sec. 6.  Section 87.11, unnumbered paragraph 1, Code 2003,
  3 35 is amended to read as follows:
  4  1    When an employer coming under this chapter furnishes
  4  2 satisfactory proofs to the insurance commissioner of such
  4  3 employer's solvency and financial ability to pay the
  4  4 compensation and benefits as by law provided and to make such
  4  5 payments to the parties when entitled thereto, or when such
  4  6 employer deposits with the insurance commissioner security
  4  7 satisfactory to the insurance commissioner and the workers'
  4  8 compensation commissioner as guaranty for the payment of such
  4  9 compensation, such employer shall be relieved of the
  4 10 provisions of this chapter requiring insurance; but such
  4 11 employer shall, from time to time, furnish such additional
  4 12 proof of solvency and financial ability to pay as may be
  4 13 required by such insurance commissioner or workers'
  4 14 compensation commissioner.  Such security shall be held in
  4 15 trust for the sole purpose of paying compensation and benefits
  4 16 and is not subject to attachment, levy, execution,
  4 17 garnishment, liens, or any other form of encumbrance.  A
  4 18 political subdivision, including a city, county, community
  4 19 college, or school corporation, that is self=insured for
  4 20 workers' compensation is not required to submit a plan or
  4 21 program to the insurance commissioner for review and approval.
  4 22    Sec. 7.  Section 87.11, unnumbered paragraph 3, Code 2003,
  4 23 is amended to read as follows:
  4 24    If an employer becomes insolvent and a debtor under 11
  4 25 U.S.C., on or after January 1, 1990, or ceases doing business,
  4 26 this paragraph applies.  The commissioner of insurance
  4 27 commissioner may request of the workers' compensation
  4 28 commissioner that all future payments of workers' compensation
  4 29 weekly benefits, medical expenses, or other payments pursuant
  4 30 to chapter 85, 85A, 85B, 86, or 87 be commuted to a present
  4 31 lump sum.  The workers' compensation commissioner shall fix
  4 32 the lump sum of probable future medical expenses and weekly
  4 33 compensation benefits, or other benefits payable pursuant to
  4 34 chapter 85, 85A, 85B, 86, or 87, capitalized at their present
  4 35 value upon the basis of interest at the rate provided in
  5  1 section 535.3 for court judgments and decrees.  If an employer
  5  2 ceases doing business without becoming insolvent, the
  5  3 insurance commissioner shall publish notice of the time and
  5  4 manner for filing claims against the employer in a newspaper
  5  5 in general circulation in the county or counties within the
  5  6 state where the employer is known to have maintained a place
  5  7 of business.  The notice shall be published once each week for
  5  8 three consecutive weeks with the last publication not less
  5  9 than thirty days before the time for filing claims expires.
  5 10 Defects in the notice or publication shall not affect the
  5 11 period for filing claims against the employer or give rise to
  5 12 a claim against the insurance commissioner.  All claims that
  5 13 are not otherwise barred shall become barred if not filed
  5 14 within five years after the date the employer ceased doing
  5 15 business, as determined by the insurance commissioner,
  5 16 including claims for review reopening, benefits under section
  5 17 85.27, and latent injuries.  The commissioner of insurance
  5 18 commissioner shall be discharged from all further liability
  5 19 for the commuted workers' compensation claim upon payment of
  5 20 the present lump sum to either the claimant, or a licensed
  5 21 insurer for purchase of an annuity or other periodic payment
  5 22 plan for the benefit of the claimant.
  5 23    Sec. 8.  Section 87.14A, Code 2003, is amended to read as
  5 24 follows:
  5 25    87.14A  INSURANCE OR BOND REQUIRED.
  5 26    An employer subject to this chapter and chapters 85, 85A,
  5 27 85B, and 86 shall not engage in business without first
  5 28 obtaining insurance covering compensation benefits or
  5 29 obtaining relief from insurance as provided in this chapter or
  5 30 furnishing a bond pursuant to section 87.16.  A person who
  5 31 willfully and knowingly violates this section is guilty of a
  5 32 class "D" felony.
  5 33    Sec. 9.  Section 87.19, unnumbered paragraph 1, Code 2003,
  5 34 is amended to read as follows:
  5 35    Upon the receipt of information by the workers'
  6  1 compensation commissioner of any employer failing to comply
  6  2 with sections 87.16 and 87.17 section 87.14A, the commissioner
  6  3 shall at once notify such employer by certified mail that
  6  4 unless such employer comply with the requirements of law,
  6  5 legal proceedings will be instituted to enforce such
  6  6 compliance.
  6  7    Sec. 10.  Section 87.20, Code 2003, is amended to read as
  6  8 follows:
  6  9    87.20  REVOCATION OF RELEASE FROM INSURANCE.
  6 10    The insurance commissioner with the concurrence of the
  6 11 workers' compensation commissioner may, at any time, upon
  6 12 reasonable notice to such employer and upon hearing, revoke
  6 13 for cause any order theretofore made relieving any employer
  6 14 from carrying insurance as provided by this chapter.
  6 15    Sec. 11.  Sections 87.16 and 87.17, Code 2003, are
  6 16 repealed.
  6 17                           EXPLANATION
  6 18    This bill amends Code section 22.7 to provide that
  6 19 confidential information filed with the workers' compensation
  6 20 commissioner as defined as Code section 86.45 is a
  6 21 confidential public record for purposes of this state's public
  6 22 records law.
  6 23    The bill adds new Code section 86.45 that defines
  6 24 "confidential information" to mean all information that is
  6 25 filed with the workers' compensation commissioner as a result
  6 26 of an employee's injury or death that would allow
  6 27 identification of the employee or the employee's dependents.
  6 28 "Confidential information" includes first reports of injury
  6 29 and subsequent reports of claim activity but does not include
  6 30 pleadings, motions, decisions, opinions, and applications for
  6 31 settlement that are filed with the workers' compensation
  6 32 commissioner.
  6 33    The bill provides that the workers' compensation
  6 34 commissioner shall not disclose such confidential information
  6 35 except pursuant to the terms of a written waiver of
  7  1 confidentiality executed by the employee or the dependents of
  7  2 the employee whose information is filed with the workers'
  7  3 compensation commissioner; to another governmental agency or
  7  4 to an advisory, rating or research organization, for the
  7  5 purpose of compiling statistical data, or conducting
  7  6 scientific, medical, or public policy research, where such
  7  7 disclosure will not allow identification of the employee or
  7  8 the employee's dependents; to the employee or to the agent or
  7  9 attorney of the employee whose information is filed with the
  7 10 workers' compensation commissioner; to the person or agent of
  7 11 the person who submitted the information to the workers'
  7 12 compensation commissioner; to an agent, representative,
  7 13 attorney, investigator, consultant, or adjuster of an
  7 14 employer, or insurance carrier or third=party administrator of
  7 15 workers' compensation benefits, who is involved in
  7 16 administering a claim for such benefits related to the injury
  7 17 or death of the employee whose information is filed with the
  7 18 workers' compensation commissioner; to all parties to a
  7 19 contested case proceeding before the workers' compensation
  7 20 commissioner in which the employee or a dependent of the
  7 21 employee, whose information is filed with the workers'
  7 22 compensation commissioner, is a party; in compliance with a
  7 23 subpoena; or to an agent, representative, attorney,
  7 24 investigator, consultant, or adjuster of the employee,
  7 25 employer, or insurance carrier or third=party administrator of
  7 26 insurance benefits, who is involved in administering a claim
  7 27 for insurance benefits related to the injury or death of the
  7 28 employee whose information is filed with the workers'
  7 29 compensation commissioner.
  7 30    The bill also provides that new Code section 86.45 does not
  7 31 create a cause of action for a violation of its provisions
  7 32 against the workers' compensation commissioner or against the
  7 33 state or any governmental subdivision of the state.
  7 34    The bill amends Code section 85.27 to provide that for
  7 35 purposes of the section, "day of incapacity to work" means
  8  1 eight hours of accumulated absence from work due to incapacity
  8  2 to work or due to the receipt of services pursuant to this
  8  3 section.
  8  4    The bill amends Code section 85.38 to provide that if an
  8  5 employer denies liability under Code chapter 85, 85A, or 85B,
  8  6 for payment for weekly compensation requested by an employee
  8  7 and the employee is a beneficiary under either an individual
  8  8 or group plan for nonoccupational illness, injury, or
  8  9 disability, the nonoccupational plan shall not deny payment of
  8 10 benefits under the plan on the basis that the employer's
  8 11 liability under Code chapter 85, 85A, or 85B is unresolved.
  8 12 Code section 85.38 already requires payment by a
  8 13 nonoccupational plan for any medical services requested by an
  8 14 injured employee under these circumstances.
  8 15    Code section 86.24 is amended to remove the requirement
  8 16 that a party appealing a contested case proceeding must file
  8 17 an affidavit with the commissioner that the transcript of the
  8 18 proceedings has been ordered.
  8 19    Code section 87.11 is amended to provide that the amount of
  8 20 security deposited by a self=insured employer shall be
  8 21 determined by the insurance commissioner and not the workers'
  8 22 compensation commissioner and that the security is held in
  8 23 trust for the sole purpose of paying compensation and benefits
  8 24 and is not subject to attachment, levy, execution,
  8 25 garnishment, liens, or any other form of encumbrance.  The
  8 26 bill also provides that proof of solvency shall be given to
  8 27 the insurance commissioner, not the workers' compensation
  8 28 commissioner.
  8 29    Code section 87.11 is also amended to provide that if a
  8 30 self=insured employer ceases doing business without becoming
  8 31 insolvent, the insurance commissioner shall publish notice of
  8 32 the time and manner for filing claims against the employer in
  8 33 a newspaper in general circulation in the counties where the
  8 34 employer is known to have maintained a place of business, once
  8 35 a week for three consecutive weeks with the last publication
  9  1 not less than 30 days before the time for filing claims
  9  2 expires.  The bill also provides that defects in the notice or
  9  3 publication do not affect the period for filing claims against
  9  4 the employer or give rise to claims against the insurance
  9  5 commissioner.  The bill provides that claims not otherwise
  9  6 barred become barred if not filed within five years after the
  9  7 date the employer ceased doing business, as determined by the
  9  8 insurance commissioner, including claims for review reopening,
  9  9 benefits under Code section 85.27, and latent injuries.
  9 10    The bill repeals Code section 87.16 which requires an
  9 11 employer who has failed to carry workers' compensation
  9 12 insurance or to obtain relief from carrying such insurance to
  9 13 furnish a bond approved by the workers' compensation
  9 14 commissioner.  Code section 87.14A is amended to remove the
  9 15 reference to the bonding requirements contained in Code
  9 16 section 87.16.  The bill also repeals Code section 86.17,
  9 17 which requires an employer to post a notice stating the nature
  9 18 of the security furnished in lieu of insurance to secure
  9 19 workers' compensation payments.
  9 20    Code section 87.19 is amended to provide that an employer
  9 21 that fails to comply with the provisions of chapters 85, 85A,
  9 22 85B, 86, and 87, as set forth in Code section 87.14A, may be
  9 23 subject to enforcement proceedings.  Previously, Code section
  9 24 87.19 only applied to an employer's failure to comply with the
  9 25 bonding requirements of Code section 87.16, which is repealed
  9 26 by the bill, and with the notice requirements of Code section
  9 27 87.17, which is also repealed by the bill.
  9 28    The bill amends Code section 87.20 to provide that the
  9 29 insurance commissioner may revoke, for cause, an order
  9 30 relieving an employer from carrying insurance as required by
  9 31 Code chapter 87 without the concurrence of the workers'
  9 32 compensation commissioner.
  9 33 LSB 5406YH 80
  9 34 av/pj/5.1