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
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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.
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