Text: S05486 Text: S05488 Text: S05400 - S05499 Text: S Index Bills and Amendments: General Index Bill History: General Index
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PAG LIN
1 1 Amend the amendment, S-5464, to House File 2416, as
1 2 passed by the House, as follows:
1 3 #1. By striking page 17, line 46, through page 18,
1 4 line 8, and inserting the following:
1 5 "Sec. . SURCHARGE FOR THE 1996-1997 FISCAL
1 6 YEAR.
1 7 1. For the fiscal year commencing July 1, 1996,
1 8 the treasurer of state may assess a surcharge on
1 9 workers' compensation weekly benefits paid in the
1 10 state during the immediately preceding fiscal year.
1 11 The surcharge is payable by all self-insured employers
1 12 making weekly benefit payments and all insurers making
1 13 weekly benefit payments on behalf of insured
1 14 employers. The surcharge applies to all workers'
1 15 compensation insurance policies and self-insurance
1 16 coverages of employers approved for self-insurance by
1 17 the commissioner of insurance pursuant to section 87.4
1 18 or 87.11, and to the state of Iowa, its departments,
1 19 divisions, agencies, commissions, and boards, or any
1 20 political subdivision coverages whether insured or
1 21 self-insured. The surcharge shall not apply to any
1 22 reinsurance or retrocessional transaction under
1 23 section 520.4 or 520.9. The treasurer of state shall
1 24 base the surcharge for each payor upon the payor's pro
1 25 rata share of weekly benefits paid in the state during
1 26 the immediately preceding fiscal year. The treasurer
1 27 may use reports of weekly benefits paid derived from
1 28 the last completed policy or reporting year, or other
1 29 consistent allocation methodology. The surcharge is
1 30 collectable by an insurer or from its policyholders if
1 31 the insured employer fails to pay the insurer. An
1 32 insurance carrier, its agent, or a third-party
1 33 administrator shall not be entitled to any portion of
1 34 the surcharge as a fee or commission for its
1 35 collection. The surcharge is not subject to any
1 36 taxes, licenses, or fees. The surcharge is not deemed
1 37 to be an assessment or tax, but shall be deemed an
1 38 additional benefit paid for injuries compensable under
1 39 the second injury fund. However, the treasurer of
1 40 state shall not collect over $870,000 in assessing the
1 41 surcharge.
1 42 2. The surcharges collected pursuant to this
1 43 section shall be deposited in the second injury fund,
1 44 and may be used for the payment of claims,
1 45 settlements, expenses for claim adjustments, and
1 46 administrative costs. The expenses incurred by the
1 47 treasurer of state, the attorney general, the second
1 48 injury fund, the task force, or the department of
1 49 revenue and finance, in connection with the second
1 50 injury fund, may be paid from the fund. However, the
2 1 payment of administrative costs and expenses incurred
2 2 by the treasurer of state, the attorney general, the
2 3 second injury fund, the task force, and the department
2 4 of revenue and finance, as authorized in this
2 5 subsection, shall only be permitted for administrative
2 6 costs and expenses incurred in the fiscal year
2 7 commencing July 1, 1996, and shall not exceed
2 8 $170,000.
2 9 3. An insurer or self-insurer shall pay a
2 10 surcharge imposed by this section no later than thirty
2 11 days following the assessment.
2 12 4. a. If an insurer, policyholder, or self-
2 13 insurer withdraws from doing business in this state
2 14 before the surcharges authorized by this section
2 15 become due, or fails or neglects to pay the surcharge
2 16 imposed, the treasurer of state shall at once proceed
2 17 to collect the surcharge, and may employ such legal
2 18 process as may be necessary for that purpose, and when
2 19 so collected shall deposit the surcharge into the
2 20 second injury fund. The treasurer may bring the suit
2 21 in any court of this state having jurisdiction, and
2 22 reasonable attorney's fees may be taxed as costs in
2 23 the suit.
2 24 b. If the surcharges imposed by this section are
2 25 not paid or transferred when due, the insurer,
2 26 policyholder, or self-insurer responsible for the
2 27 failure shall be required to pay, as part of the
2 28 surcharge, interest on the surcharge at the rate of
2 29 one and one-half percent per month for each month or
2 30 fraction of a month delinquent. If the treasurer of
2 31 state prevails in any dispute concerning the
2 32 assessment of a surcharge which has not been paid or
2 33 transferred, interest shall be paid upon the amount
2 34 found due to the state at the rate of one and one-half
2 35 percent per month for each month or fraction of a
2 36 month delinquent.
2 37 c. An insurer is not liable for a surcharge which
2 38 is not paid to the insurer by the policyholder or
2 39 employer provided the insurer has made good faith
2 40 efforts to collect the surcharge from the policyholder
2 41 or employer. An insurance carrier shall report to the
2 42 treasurer of state a policyholder or employer who
2 43 fails to pay a surcharge within thirty days of its due
2 44 date.
2 45 d. In any action concerning the amount of a
2 46 surcharge imposed by this section, any other surcharge
2 47 shall continue to be made based upon the amount
2 48 assessed by the treasurer of state. In the event of
2 49 an overpayment, the excess amount paid may be credited
2 50 against future payments otherwise due.
3 1 e. An employer who fails to pay the surcharges
3 2 imposed under this section shall not be allowed to
3 3 purchase workers' compensation insurance coverage or
3 4 to renew a self-insurance authorization unless and
3 5 until the surcharge has been paid.
3 6 5. For the purposes of this section, "insurer"
3 7 includes a self-insurance group approved by the
3 8 commissioner of insurance pursuant to section 87.4."
3 9 #2. By renumbering as necessary.
3 10
3 11
3 12
3 13 DON GETTINGS
3 14
3 15
3 16
3 17 DICK L. DEARDEN
3 18
3 19
3 20
3 21 TOM VILSACK
3 22
3 23
3 24
3 25 PATTY JUDGE
3 26
3 27
3 28
3 29 LARRY MURPHY
3 30 HF 2416.5
3 31 tj/cc/26
Text: S05486 Text: S05488 Text: S05400 - S05499 Text: S Index Bills and Amendments: General Index Bill History: General Index
Iowa General Assembly
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