Senate File 2175

                                       SENATE FILE       
                                       BY  COMMITTEE ON BUSINESS AND LABOR
                                           RELATIONS

                                       (SUCCESSOR TO SSB 3080)


    Passed Senate,  Date               Passed House, 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 5406SV 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, Code 2003, is amended
  1 31 to read as follows:
  1 32    2.  CREDIT FOR BENEFITS PAID UNDER GROUP PLANS.  In the
  1 33 event the employee with a disability shall receive any
  1 34 benefits, including medical, surgical, or hospital benefits,
  1 35 under any group plan covering nonoccupational disabilities
  2  1 contributed to wholly or partially by the employer, which
  2  2 benefits should not have been paid or payable if any rights of
  2  3 recovery existed under this chapter, chapter 85A, or chapter
  2  4 85B, then the amounts so paid to the employee from the group
  2  5 plan shall be credited to or against any compensation
  2  6 payments, including medical, surgical, or hospital, made or to
  2  7 be made under this chapter, chapter 85A, or chapter 85B.  The
  2  8 amounts so credited shall be deducted from the payments made
  2  9 under these chapters.  Any nonoccupational plan shall be
  2 10 reimbursed in the amount deducted.  This section shall not
  2 11 apply to payments made under any group plan which would have
  2 12 been payable even though there was an injury under this
  2 13 chapter or an occupational disease under chapter 85A or an
  2 14 occupational hearing loss under chapter 85B.  Any employer
  2 15 receiving such credit shall keep the employee safe and
  2 16 harmless from any and all claims or liabilities that may be
  2 17 made against them by reason of having received the payments
  2 18 only to the extent of the credit.
  2 19    If an employer denies liability under this chapter, chapter
  2 20 85A, or chapter 85B, for payment for any medical services
  2 21 received or weekly compensation requested by an employee with
  2 22 a disability, and the employee is a beneficiary under either
  2 23 an individual or group plan for nonoccupational illness,
  2 24 injury, or disability, the nonoccupational plan shall not deny
  2 25 payment for the medical services received or benefits under
  2 26 the plan on the basis that the employer's liability for the
  2 27 medical services under this chapter, chapter 85A, or chapter
  2 28 85B is unresolved.
  2 29    Sec. 4.  Section 86.24, subsection 4, Code 2003, is amended
  2 30 to read as follows:
  2 31    4.  A transcript of a contested case proceeding shall be
  2 32 provided by an appealing party at the party's cost and an
  2 33 affidavit shall be filed by the appealing party or the party's
  2 34 attorney with the workers' compensation commissioner within
  2 35 ten days after the filing of the appeal to the workers'
  3  1 compensation commissioner stating that the transcript has been
  3  2 ordered and identifying the name and address of the reporter
  3  3 or reporting firm from which the transcript has been ordered.
  3  4    Sec. 5.  NEW SECTION.  86.45  CONFIDENTIAL INFORMATION.
  3  5    1.  "Confidential information", for the purposes of this
  3  6 section, means all information that is filed with the workers'
  3  7 compensation commissioner as a result of an employee's injury
  3  8 or death that would allow the identification of the employee
  3  9 or the employee's dependents.  Confidential information
  3 10 includes first reports of injury and subsequent reports of
  3 11 claim activity.  Confidential information does not include
  3 12 pleadings, motions, decisions, opinions, or applications for
  3 13 settlement that are filed with the workers' compensation
  3 14 commissioner.
  3 15    2.  The workers' compensation commissioner shall not
  3 16 disclose confidential information except as follows:
  3 17    a.  Pursuant to the terms of a written waiver of
  3 18 confidentiality executed by the employee or the dependents of
  3 19 the employee whose information is filed with the workers'
  3 20 compensation commissioner.
  3 21    b.  To another governmental agency, or to an advisory,
  3 22 rating, or research organization, for the purpose of compiling
  3 23 statistical data, evaluating the state's workers' compensation
  3 24 system, or conducting scientific, medical, or public policy
  3 25 research, where such disclosure will not allow the
  3 26 identification of the employee or the employee's dependents.
  3 27    c.  To the employee or to the agent or attorney of the
  3 28 employee whose information is filed with the workers'
  3 29 compensation commissioner.
  3 30    d.  To the person or to the agent of the person who
  3 31 submitted the information to the workers' compensation
  3 32 commissioner.
  3 33    e.  To an agent, representative, attorney, investigator,
  3 34 consultant, or adjuster of an employer, or insurance carrier
  3 35 or third=party administrator of workers' compensation
  4  1 benefits, who is involved in administering a claim for such
  4  2 benefits related to the injury or death of the employee whose
  4  3 information is filed with the workers' compensation
  4  4 commissioner.
  4  5    f.  To all parties to a contested case proceeding before
  4  6 the workers' compensation commissioner in which the employee
  4  7 or a dependent of the employee, whose information is filed
  4  8 with the workers' compensation commissioner, is a party.
  4  9    g.  In compliance with a subpoena.
  4 10    h.  To an agent, representative, attorney, investigator,
  4 11 consultant, or adjuster of the employee, employer, or
  4 12 insurance carrier or third=party administrator of insurance
  4 13 benefits, who is involved in administering a claim for
  4 14 insurance benefits related to the injury or death of the
  4 15 employee whose information is filed with the workers'
  4 16 compensation commissioner.
  4 17    3.  This section does not create a cause of action for a
  4 18 violation of its provisions against the workers' compensation
  4 19 commissioner or against the state or any governmental
  4 20 subdivision of the state.
  4 21    Sec. 6.  Section 87.11, unnumbered paragraph 1, Code 2003,
  4 22 is amended to read as follows:
  4 23    When an employer coming under this chapter furnishes
  4 24 satisfactory proofs to the insurance commissioner of such
  4 25 employer's solvency and financial ability to pay the
  4 26 compensation and benefits as by law provided and to make such
  4 27 payments to the parties when entitled thereto, or when such
  4 28 employer deposits with the insurance commissioner security
  4 29 satisfactory to the insurance commissioner and the workers'
  4 30 compensation commissioner as guaranty for the payment of such
  4 31 compensation, such employer shall be relieved of the
  4 32 provisions of this chapter requiring insurance; but such
  4 33 employer shall, from time to time, furnish such additional
  4 34 proof of solvency and financial ability to pay as may be
  4 35 required by such insurance commissioner or workers'
  5  1 compensation commissioner.  Such security shall be held in
  5  2 trust for the sole purpose of paying compensation and benefits
  5  3 and is not subject to attachment, levy, execution,
  5  4 garnishment, liens, or any other form of encumbrance.  A
  5  5 political subdivision, including a city, county, community
  5  6 college, or school corporation, that is self=insured for
  5  7 workers' compensation is not required to submit a plan or
  5  8 program to the insurance commissioner for review and approval.
  5  9    Sec. 7.  Section 87.11, unnumbered paragraph 3, Code 2003,
  5 10 is amended to read as follows:
  5 11    If an employer becomes insolvent and a debtor under 11
  5 12 U.S.C., on or after January 1, 1990, or ceases doing business,
  5 13 this paragraph applies.  The commissioner of insurance
  5 14 commissioner may request of the workers' compensation
  5 15 commissioner that all future payments of workers' compensation
  5 16 weekly benefits, medical expenses, or other payments pursuant
  5 17 to chapter 85, 85A, 85B, 86, or 87 be commuted to a present
  5 18 lump sum.  The workers' compensation commissioner shall fix
  5 19 the lump sum of probable future medical expenses and weekly
  5 20 compensation benefits, or other benefits payable pursuant to
  5 21 chapter 85, 85A, 85B, 86, or 87, capitalized at their present
  5 22 value upon the basis of interest at the rate provided in
  5 23 section 535.3 for court judgments and decrees.  If an employer
  5 24 ceases doing business without becoming insolvent, the
  5 25 insurance commissioner shall publish notice of the time and
  5 26 manner for filing claims against the employer in a newspaper
  5 27 in general circulation in the county or counties within the
  5 28 state where the employer is known to have maintained a place
  5 29 of business.  The notice shall be published once each week for
  5 30 three consecutive weeks with the last publication not less
  5 31 than thirty days before the time for filing claims expires.
  5 32 Defects in the notice or publication shall not affect the
  5 33 period for filing claims against the employer or give rise to
  5 34 a claim against the insurance commissioner.  All claims that
  5 35 are not otherwise barred shall become barred if not filed
  6  1 within five years after the date the employer ceased doing
  6  2 business, as determined by the insurance commissioner,
  6  3 including claims for review reopening, benefits under section
  6  4 85.27, and latent injuries.  The commissioner of insurance
  6  5 commissioner shall be discharged from all further liability
  6  6 for the commuted workers' compensation claim upon payment of
  6  7 the present lump sum to either the claimant, or a licensed
  6  8 insurer for purchase of an annuity or other periodic payment
  6  9 plan for the benefit of the claimant.
  6 10    Sec. 8.  Section 87.14A, Code 2003, is amended to read as
  6 11 follows:
  6 12    87.14A  INSURANCE OR BOND REQUIRED.
  6 13    An employer subject to this chapter and chapters 85, 85A,
  6 14 85B, and 86 shall not engage in business without first
  6 15 obtaining insurance covering compensation benefits or
  6 16 obtaining relief from insurance as provided in this chapter or
  6 17 furnishing a bond pursuant to section 87.16.  A person who
  6 18 willfully and knowingly violates this section is guilty of a
  6 19 class "D" felony.
  6 20    Sec. 9.  Section 87.19, unnumbered paragraph 1, Code 2003,
  6 21 is amended to read as follows:
  6 22    Upon the receipt of information by the workers'
  6 23 compensation commissioner of any employer failing to comply
  6 24 with sections 87.16 and 87.17 section 87.14A, the commissioner
  6 25 shall at once notify such employer by certified mail that
  6 26 unless such employer comply with the requirements of law,
  6 27 legal proceedings will be instituted to enforce such
  6 28 compliance.
  6 29    Sec. 10.  Section 87.20, Code 2003, is amended to read as
  6 30 follows:
  6 31    87.20  REVOCATION OF RELEASE FROM INSURANCE.
  6 32    The insurance commissioner with the concurrence of the
  6 33 workers' compensation commissioner may, at any time, upon
  6 34 reasonable notice to such employer and upon hearing, revoke
  6 35 for cause any order theretofore made relieving any employer
  7  1 from carrying insurance as provided by this chapter.
  7  2    Sec. 11.  Sections 87.16 and 87.17, Code 2003, are
  7  3 repealed.
  7  4 SF 2175
  7  5 av/cc/26