S.F. 349 Section 1. Section 85.23, Code 2019, is amended to read as 1 follows: 2 85.23 Notice of injury —— failure to give. 3 Unless the employer or the employer’s representative shall 4 have actual knowledge of the occurrence of an injury received 5 within ninety days from the date of the occurrence of the 6 injury, or unless the employee or someone on the employee’s 7 behalf or a dependent or someone on the dependent’s behalf 8 shall give notice thereof to the employer within ninety days 9 from the date of the occurrence of the injury, no compensation 10 shall be allowed. For the purposes of this section , “date of 11 the occurrence of the injury” means the date that the employee 12 knew or should have known that the injury was work-related. 13 Sec. 2. Section 85.26, subsection 1, Code 2019, is amended 14 to read as follows: 15 1. An original proceeding for benefits under this chapter 16 or chapter 85A , 85B , or 86 , shall not be maintained in any 17 contested case unless the proceeding is commenced within two 18 years from the date of the occurrence of the injury for which 19 benefits are claimed or, if weekly compensation benefits are 20 paid under section 86.13 , within three years from the date of 21 the last payment of weekly compensation benefits. For the 22 purposes of this section , “date of the occurrence of the injury” 23 means the date that the employee knew or should have known that 24 the injury was work-related. 25 Sec. 3. Section 85.34, subsection 2, paragraph n, Code 2019, 26 is amended by striking the paragraph. 27 Sec. 4. Section 85.34, subsection 2, paragraph v, Code 2019, 28 is amended to read as follows: 29 v. In all cases of permanent partial disability other than 30 those hereinabove described or referred to in paragraphs “a” 31 through “u” hereof, the compensation shall be paid during 32 the number of weeks in relation to five hundred weeks as the 33 reduction in the employee’s earning capacity caused by the 34 disability bears in relation to the earning capacity that the 35 -1- LSB 2515XS (3) 88 asf/rn 1/ 11

S.F. 349 employee possessed when the injury occurred. A determination 1 of the reduction in the employee’s earning capacity caused 2 by the disability shall take into account the permanent 3 partial disability of the employee and the number of years in 4 the future it was reasonably anticipated that the employee 5 would work at the time of the injury. If an employee who 6 is eligible for compensation under this paragraph returns to 7 work or is offered work for which the employee receives or 8 would receive the same or greater salary, wages, or earnings 9 than the employee received at the time of the injury, the 10 employee shall be compensated based only upon the employee’s 11 functional impairment resulting from the injury, and not in 12 relation to the employee’s earning capacity. Notwithstanding 13 section 85.26, subsection 2 , if an employee who is eligible 14 for compensation under this paragraph returns to work with the 15 same employer and is compensated based only upon the employee’s 16 functional impairment resulting from the injury as provided 17 in this paragraph and is terminated from employment by that 18 employer, the award or agreement for settlement for benefits 19 under this chapter shall be reviewed upon commencement of 20 reopening proceedings by the employee for a determination of 21 any reduction in the employee’s earning capacity caused by the 22 employee’s permanent partial disability. 23 Sec. 5. Section 85.34, subsection 2, paragraphs x and y, 24 Code 2019, are amended by striking the paragraphs. 25 Sec. 6. Section 85.34, subsection 3, Code 2019, is amended 26 to read as follows: 27 3. Permanent total disability. 28 a. Compensation for an injury causing permanent total 29 disability shall be upon the basis of eighty percent per week 30 of the employee’s average spendable weekly earnings, but not 31 more than a weekly benefit amount, rounded to the nearest 32 dollar, equal to two hundred percent of the statewide average 33 weekly wage paid employees as determined by the department 34 of workforce development under section 96.19, subsection 36 , 35 -2- LSB 2515XS (3) 88 asf/rn 2/ 11

S.F. 349 and in effect at the time of the injury. The minimum weekly 1 benefit amount is equal to the weekly benefit amount of a 2 person whose gross weekly earnings are thirty-five percent of 3 the statewide average weekly wage. The weekly compensation is 4 payable until the employee is no longer permanently and totally 5 disabled during the period of the employee’s disability . 6 b. Such compensation shall be in addition to the benefits 7 provided in sections 85.27 and 85.28 . No compensation shall 8 be payable under this subsection for any injury for which 9 compensation is payable under subsection 2 of this section . 10 In the event compensation has been paid to any person under 11 any provision of this chapter , chapter 85A , or chapter 85B 12 for an the same injury producing a permanent disability, any 13 such amounts so paid shall be deducted from the total amount 14 of compensation payable for permanent total disability. An 15 employee shall not receive compensation for permanent partial 16 disability if the employee is receiving compensation for 17 permanent total disability. 18 c. An employee forfeits the employee’s weekly compensation 19 for a permanent total disability under this subsection for a 20 week in which the employee is receiving a payment equal to or 21 greater than fifty percent of the statewide average weekly wage 22 from any of the following sources: 23 (1) Gross earnings from any employer. 24 (2) Payment for current services from any source. 25 d. c. An employee is not entitled to compensation for a 26 permanent total disability under this subsection while the 27 employee is receiving unemployment compensation under chapter 28 96 . 29 Sec. 7. Section 85.34, subsection 7, Code 2019, is amended 30 to read as follows: 31 7. Successive disabilities. 32 a. An employer is fully liable for compensating only that 33 portion all of an employee’s disability that arises out of and 34 in the course of the employee’s employment with the employer 35 -3- LSB 2515XS (3) 88 asf/rn 3/ 11

S.F. 349 and that relates to the injury that serves as the basis for 1 the employee’s claim for compensation under this chapter , 2 or chapter 85A , 85B , or 86 . An employer is not liable for 3 compensating an employee’s preexisting disability that arose 4 out of and in the course of employment from a prior injury with 5 the employer, to the extent that the employee’s preexisting 6 disability has already been compensated under this chapter , 7 or chapter 85A , 85B , or 86 . An employer is not liable for 8 compensating an employee’s preexisting disability that arose 9 out of and in the course of employment with a different 10 employer or from causes unrelated to employment. 11 b. (1) If an injured employee has a preexisting disability 12 that was caused by a prior injury arising out of and in 13 the course of employment with the same employer, and the 14 preexisting disability was compensable under the same paragraph 15 of subsection 2 as the employee’s present injury, the employer 16 is liable for the combined disability that is caused by the 17 injuries, measured in relation to the employee’s condition 18 immediately prior to the first injury. In this instance, the 19 employer’s liability for the combined disability shall be 20 considered to be already partially satisfied to the extent 21 of the percentage of disability for which the employee was 22 previously compensated by the employer. 23 (2) If, however, an employer is liable to an employee for 24 a combined disability that is payable under subsection 2, 25 paragraph “v” , and the employee has a preexisting disability 26 that causes the employee’s earnings to be less at the time of 27 the present injury than if the prior injury had not occurred, 28 the employer’s liability for the combined disability shall be 29 considered to be already partially satisfied to the extent 30 of the percentage of disability for which the employee was 31 previously compensated by the employer minus the percentage 32 that the employee’s earnings are less at the time of the 33 present injury than if the prior injury had not occurred. 34 c. A successor employer shall be considered to be the 35 -4- LSB 2515XS (3) 88 asf/rn 4/ 11

S.F. 349 same employer if the employee became part of the successor 1 employer’s workforce through a merger, purchase, or other 2 transaction that assumes the employee into the successor 3 employer’s workforce without substantially changing the nature 4 of the employee’s employment. 5 Sec. 8. Section 85.45, subsection 1, unnumbered paragraph 6 1, Code 2019, is amended to read as follows: 7 Future payments of compensation may be commuted to a present 8 worth lump sum payment only upon application of a party to 9 the commissioner and upon written consent of all parties to 10 the proposed commutation or partial commutation, and on the 11 following conditions: 12 Sec. 9. Section 85.45, subsection 3, Code 2019, is amended 13 by striking the subsection. 14 Sec. 10. Section 85.70, subsection 1, Code 2019, is amended 15 to read as follows: 16 1. An employee who has sustained an injury resulting in 17 permanent partial or permanent total disability, for which 18 compensation is payable under this chapter other than an 19 injury to the shoulder compensable pursuant to section 85.34, 20 subsection 2 , paragraph “n” , and who cannot return to gainful 21 employment because of such disability, shall upon application 22 to and approval by the workers’ compensation commissioner 23 be entitled to a one hundred dollar weekly payment from the 24 employer in addition to any other benefit payments, during each 25 full week in which the employee is actively participating in a 26 vocational rehabilitation program recognized by the vocational 27 rehabilitation services division of the department of 28 education. The workers’ compensation commissioner’s approval 29 of such application for payment may be given only after a 30 careful evaluation of available facts, and after consultation 31 with the employer or the employer’s representative. 32 Judicial review of the decision of the workers’ compensation 33 commissioner may be obtained in accordance with the terms of 34 the Iowa administrative procedure Act, chapter 17A , and in 35 -5- LSB 2515XS (3) 88 asf/rn 5/ 11

S.F. 349 section 86.26 . Such additional benefit payment shall be paid 1 for a period not to exceed thirteen consecutive weeks except 2 that the workers’ compensation commissioner may extend the 3 period of payment not to exceed an additional thirteen weeks if 4 the circumstances indicate that a continuation of training will 5 in fact accomplish rehabilitation. 6 Sec. 11. Section 85.70, subsection 2, Code 2019, is amended 7 by striking the subsection. 8 Sec. 12. Section 85.71, subsection 1, paragraph a, Code 9 2019, is amended to read as follows: 10 a. The employer has a place of business in this state and 11 the employee regularly works at or from that place of business , 12 or the employer has a place of business in this state and the 13 employee is domiciled in this state . 14 Sec. 13. Section 535.3, subsection 1, Code 2019, is amended 15 to read as follows: 16 1. a. Interest shall be allowed on all money due on 17 judgments and decrees of courts at a rate calculated according 18 to section 668.13 , except for interest due pursuant to section 19 85.30 for which the rate shall be ten percent per year . 20 b. Notwithstanding paragraph “a” , interest due pursuant 21 to section 85.30 shall accrue from the date each compensation 22 payment is due at an annual rate equal to the one-year treasury 23 constant maturity published by the federal reserve in the most 24 recent H15 report settled as of the date of injury, plus two 25 percent. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates to workers’ compensation by reversing some 30 of the changes to the Code that were made with the passage of 31 House File 518 in 2017. 32 The bill amends Code section 85.23, requiring notice of 33 injury, and Code section 85.26(1), concerning limitations of 34 actions, to remove definitions of “date of the occurrence of 35 -6- LSB 2515XS (3) 88 asf/rn 6/ 11

S.F. 349 the injury” to mean the date the employee knew or should have 1 known that the injury was work-related. 2 The bill removes a shoulder injury from the scheduled injury 3 list for permanent partial disability in Code section 85.34(2) 4 by striking paragraph “n”, which stated: “For the loss of a 5 shoulder, weekly compensation during four hundred weeks”. 6 The bill amends Code section 85.34(2)(v), concerning 7 compensation for permanent partial disability for 8 injuries other than scheduled injuries under Code section 9 85.34(2)(a)-(u), to remove a provision that a reduction in the 10 employee’s earning capacity caused by a disability must take 11 into account the employee’s permanent partial disability and 12 the number of years in the future it was reasonably anticipated 13 the employee would work at the time of the injury. The bill 14 removes a provision that an employee who returns to work or 15 is offered work for the same or more money than the employee 16 received when injured shall be compensated only for functional 17 disability, and not in relation to earning capacity. The 18 bill also removes a provision that notwithstands Code section 19 85.26(2), regarding limitations of actions. 20 The bill strikes Code section 85.34(2)(x), concerning 21 permanent partial disability. The paragraph provides that in 22 all cases of permanent partial disability described in Code 23 section 85.34(2)(a)-(u), or Code section 85.34(2)(v), when 24 determining functional disability and not loss of earning 25 capacity, the extent of loss or percentage of permanent 26 impairment shall be determined solely by utilizing the guides 27 to the evaluation of permanent impairment, published by the 28 American medical association, as adopted by the workers’ 29 compensation commissioner by rule pursuant to Code chapter 17A. 30 The Code section prohibits lay testimony or agency expertise 31 from being utilized in making this determination. 32 The bill strikes Code section 85.34(2)(y), concerning 33 permanent partial disability. The paragraph provides that 34 compensation for permanent partial disability for an injury 35 -7- LSB 2515XS (3) 88 asf/rn 7/ 11

S.F. 349 shall terminate on the date when compensation for permanent 1 total disability for any injury begins. The Code section 2 prohibits an employee from receiving compensation for permanent 3 partial disability if the employee is receiving compensation 4 for permanent total disability. 5 The bill amends Code section 85.34(3)(a), concerning 6 permanent total disability, to provide that the weekly 7 compensation is payable “during the period of the employee’s 8 disability”, rather than “until the employee is no longer 9 permanently and totally disabled”. 10 The bill amends Code section 85.34(3)(b) to provide that in 11 the event compensation has been paid to any person under any 12 provision of Code chapter 85, 85A, or 85B for the same injury, 13 rather than an injury, producing a permanent disability, any 14 such amount so paid shall be deducted from the total amount of 15 compensation payable for permanent total disability. The bill 16 also amends the paragraph to remove a provision which provided 17 that “an employee shall not receive compensation for permanent 18 partial disability if the employee is receiving compensation 19 for permanent total disability”. 20 The bill strikes Code section 85.34(3)(c), which provides 21 that an employee forfeits the employee’s weekly compensation 22 for a permanent total disability under this subsection for a 23 week in which the employee is receiving a payment equal to or 24 greater than 50 percent of the statewide average weekly wage 25 from any of the following sources: gross earnings from any 26 employer or payment for current services from any source. 27 The bill amends Code section 85.34(7), concerning successive 28 disabilities, to provide that an employer is fully liable for 29 compensating all of an employee’s disability that arises out 30 of and in the course of the employee’s employment with the 31 employer and removes the requirement that it relate to the 32 injury that serves as the basis for the employee’s claim for 33 compensation under Code chapter 85, 85A, 85B, or 86. The bill 34 also removes a provision that an employer is not liable for 35 -8- LSB 2515XS (3) 88 asf/rn 8/ 11

S.F. 349 compensating an employee’s preexisting disability that arose 1 out of and in the course of employment from a prior injury with 2 the employer, to the extent that the employee’s preexisting 3 disability has already been compensated under Code chapter 4 85, 85A, 85B, or 86. The bill provides that if an injured 5 employee has a preexisting disability that was caused by a 6 prior injury arising out of and in the course of employment 7 with the same employer, and the preexisting disability was 8 compensable under Code section 85.34(2) as the employee’s 9 present injury, the employer is liable for the combined 10 disability that is caused by the injuries, measured in relation 11 to the employee’s condition immediately prior to the first 12 injury. In this instance, the employer’s liability for the 13 combined disability shall be considered to be already partially 14 satisfied to the extent of the percentage of disability for 15 which the employee was previously compensated by the employer. 16 The bill provides, however, that if an employer is liable to 17 an employee for a combined disability that is payable under 18 Code section 85.34(2)(v) and the employee has a preexisting 19 disability that causes the employee’s earnings to be less at 20 the time of the present injury than if the prior injury had not 21 occurred, the employer’s liability for the combined disability 22 shall be considered to be already partially satisfied to the 23 extent of the percentage of disability for which the employee 24 was previously compensated by the employer minus the percentage 25 that the employee’s earnings are less at the time of the 26 present injury than if the prior injury had not occurred. 27 Additionally, the bill provides that a successor employer shall 28 be considered to be the same employer if the employee became 29 part of the successor employer’s workforce through a merger, 30 purchase, or other transaction that assumes the employee into 31 the successor employer’s workforce without substantially 32 changing the nature of the employee’s employment. 33 The bill amends Code section 85.45(1), concerning 34 commutation, by removing the requirement that commutation 35 -9- LSB 2515XS (3) 88 asf/rn 9/ 11

S.F. 349 of future payments of compensation shall take place only 1 upon application by a party to the commissioner and the 2 written consent of all parties to the commutation or partial 3 commutation. 4 The bill strikes Code section 85.45(3), which provides that 5 the parties to any commutation or partial commutation of future 6 payments agreed to and ordered pursuant to Code section 85.45 7 may agree that the employee has the right to benefits pursuant 8 to Code section 85.27 for a specified period of time under such 9 terms and conditions as agreed to by the workers’ compensation 10 commissioner. The stricken Code section also provides that 11 during the specified period of time, the commissioner shall 12 have jurisdiction of the commutation or partial commutation 13 agreement for the purpose of adjudicating the employee’s 14 entitlement to benefits provided for in Code section 85.27 as 15 provided in the agreement. 16 Under current law pursuant to Code section 85.70, an 17 employee who has sustained an injury resulting in permanent 18 partial or permanent total disability that is compensable under 19 Code chapter 85 (other than a shoulder injury compensable 20 pursuant to Code section 85.34(2)(n)) and who cannot return 21 to gainful employment because of such disability and who 22 applies and receives approval from the workers’ compensation 23 commissioner shall be entitled to a weekly payment of $100 24 in addition to any other weekly benefit payment, during each 25 full week that the employee is actively participating in a 26 vocational rehabilitation program, which has been recognized 27 by the vocational rehabilitation services division of the 28 department of education. The bill removes the reference to 29 a shoulder injury. The bill strikes a provision relating to 30 the vocational training and education program for shoulder 31 injuries. 32 The bill amends Code section 85.71, concerning compensation 33 for injuries that occur outside of the state. The bill amends 34 the Code section to provide that the statute is applicable not 35 -10- LSB 2515XS (3) 88 asf/rn 10/ 11

S.F. 349 only if the employer has a place of business in this state and 1 the employee regularly works at or from that place of business, 2 but also if the employer has a place of business in this state 3 and the employee is domiciled in this state. 4 The bill amends Code section 535.3(1)(a), concerning 5 interest due on unpaid weekly workers’ compensation payments, 6 to provide that interest shall be allowed on all money due on 7 judgments and decrees of courts at a rate calculated according 8 to Code section 668.13, except for interest due pursuant to 9 Code section 85.30 for which the rate shall be 10 percent 10 per year. The bill eliminates paragraph “b” of Code section 11 535.3(1) which provides that interest due pursuant to Code 12 section 85.30 shall accrue from the date each compensation 13 payment is due at an annual rate equal to the one-year treasury 14 constant maturity published by the federal reserve in the most 15 recent H15 report settled as of the date of injury, plus 2 16 percent. 17 -11- LSB 2515XS (3) 88 asf/rn 11/ 11