Text: HF00638 Text: HF00640 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 85.31, subsection 5, Code 1997, is 1 2 amended to read as follows: 1 3 5. Except as otherwise provided by treaty, whenever, under 1 4 the provisions of this chapter and chapters 86 and 87, 1 5 compensation is payable to a dependent who is an alien not 1 6 residing in the United States at the time of the injury, the 1 7 employer shall be required to pay fifty percent of the 1 8 compensation herein otherwise provided to such dependent, and1 9the other fifty percent shall be paid into the second injury1 10fund in the custody of the treasurer of state.ButHowever, 1 11 if the nonresident alien dependent is a citizen of a 1 12 government having a compensation law which excludes citizens 1 13 of the United States, either resident or nonresident, from 1 14 partaking of the benefits of such law in as favorable degree 1 15 as herein extended to the nonresident alien,then saidthe 1 16 compensationwhich would otherwiseshall not be payable to 1 17 such dependentshall be paid into the second injury fund in1 18the custody of the treasurer of state. 1 19 Sec. 2. Section 85.36, subsection 9, paragraph c, 1 20 unnumbered paragraph 2, Code 1997, is amended by striking the 1 21 unnumbered paragraph. 1 22 Sec. 3. Section 85.55, Code 1997, is amended to read as 1 23 follows: 1 24 85.55 WAIVERS PROHIBITED – PHYSICAL DEFECTS. 1 25 No employee or dependent to whom this chapter applies, 1 26 shall have power to waive any of the provisions of this 1 27 chapter in regard to the amount of compensation which may be 1 28 payable to such employee or dependent hereunder. However, any 1 29 person who has some physical defect which increases the risk 1 30 of injury, may, subject to the approval of the industrial 1 31 commissioner, enter into a written agreement with the 1 32 employee's employer waiving compensation for injuries which 1 33 may occur directly or indirectly because of such physical 1 34 defect, provided, however, that such waiver shall not affect1 35the employee's benefits to be paid from the second injury fund2 1under the provisions of section 85.64. 2 2 Sec. 4. Section 85.63, Code 1997, is amended by striking 2 3 the section and inserting in lieu thereof the following: 2 4 85.63 PRIOR INJURIES – PERMANENT TOTAL DISABILITY. 2 5 If an employee who has previously lost, or lost the use of, 2 6 one hand, one arm, one foot, one leg, or one eye becomes 2 7 permanently disabled by a compensable injury resulting in the 2 8 loss or loss of use of another such member or organ, and the 2 9 combination of the losses results in the employee being 2 10 permanently and totally disabled, the employee may be entitled 2 11 to recover from the employer benefits for a permanent total 2 12 disability as provided by section 85.34, subsection 3. 2 13 Sec. 5. Section 85A.7, subsection 3, Code 1997, is amended 2 14 to read as follows: 2 15 3. When such occupational disease causes the death of an 2 16 employee and there are no dependents entitled to compensation, 2 17 then the employer shall pay the medical, hospital and burial 2 18 expenses as is provided by the workers' compensation law, and2 19shall also pay to the treasurer of the state for the use and2 20benefit of the second injury compensation fund such amount as2 21is required by the second injury compensation law. 2 22 Sec. 6. Section 86.12, unnumbered paragraph 1, Code 1997, 2 23 is amended to read as follows: 2 24 The industrial commissioner may require any employer to 2 25 supply the information required by section 86.10 or to file a 2 26 report required by section 86.11, by written demand sent to 2 27 the employer's last known address. Upon failure to supply 2 28 such information or file such report within twenty days, the 2 29 employer may be ordered to appear and show cause why the 2 30 employer should not be subject to civil penalty of one hundred 2 31 dollars for each occurrence. Upon such hearing, the 2 32 industrial commissioner shall enter a finding of fact and may 2 33 enter an order requiring such penalty to be paid into the 2 34second injurygeneral fundcreated by sections 85.63 to 85.692 35 of the state. In the event the civil penalty assessed is not 3 1 voluntarily paid the industrial commissioner may file a 3 2 certified copy of such finding and order with the clerk of the 3 3 court for the district in which the employer maintains a place 3 4 of business. If the employer maintains no place of business 3 5 in this state service shall be made as provided in chapter 85 3 6 for nonresident employers. In such case the finding and order 3 7 may be filed in any court of competent jurisdiction within 3 8 this state. 3 9 Sec. 7. 1996 Iowa Acts, chapter 1211, section 25, 3 10 subsections 3 and 4, are amended to read as follows: 3 11 3. The surcharges collected pursuant to this section shall 3 12 be deposited in the second injury compensation claims fund 3 13 established in section 9 of this Act. 3 14 4. The administrative costs and expenses incurred by the 3 15 treasurer of state, the attorney general, the second injury 3 16 compensation claims fund, or the department of revenue and 3 17 finance, in connection with the second injury compensation 3 18 claims fund, may be paid from the fund to the extent 3 19 authorized by1995 Iowa Acts, chapter 219, section 25, and3 20 this section. However, the payment of administrative costs 3 21 and expenses incurred by the treasurer of state, the attorney 3 22 general, the second injury compensation claims fund, and the 3 23 department of revenue and finance, as authorized in this 3 24 subsection, shall only be permitted for administrative costs 3 25 and expenses incurred in the fiscal year commencing July 1, 3 26 1996, and ending June 30, 1997, and shall not exceed $170,000. 3 27 Sec. 8. 1996 Iowa Acts, chapter 1211, section 25, 3 28 subsection 6, paragraph a, is amended to read as follows: 3 29 a. If an insurer, policyholder, or self-insurer withdraws 3 30 from doing business in this state before the surcharges 3 31 authorized by this section become due, or fails or neglects to 3 32 pay the surcharge imposed, the treasurer of state shall at 3 33 once proceed to collect the surcharge, and may employ such 3 34 legal process as may be necessary for that purpose, and when 3 35 so collected shall deposit the surcharge into the second 4 1 injury compensation claims fund. The treasurer may bring the 4 2 suit in any court of this state having jurisdiction, and 4 3 reasonable attorney's fees may be taxed as costs in the suit. 4 4 Sec. 9. DISPOSITION OF SECOND INJURY FUND CLAIMS – 4 5 SURCHARGE. 4 6 1. CREATION OF SECOND INJURY COMPENSATION CLAIMS FUND. A 4 7 second injury compensation claims fund is created within the 4 8 office of the treasurer of state. The second injury 4 9 compensation claims fund is to be used to pay claims involving 4 10 the second injury compensation Act. The treasurer of state 4 11 shall be charged with the conservation of the assets of the 4 12 second injury compensation claims fund and the collection of 4 13 contributions to the fund. The attorney general shall appoint 4 14 a staff member to represent the treasurer of state and the 4 15 fund in all proceedings and matters pertaining to the fund. 4 16 Upon the effective date of this Act, moneys in the second 4 17 injury fund shall be transferred to the second injury 4 18 compensation claims fund. 4 19 2. SECOND INJURY FUND LIABILITY – SURCHARGE ON EMPLOYERS. 4 20 a. Prior to each fiscal year commencing on or after the 4 21 effective date of this Act, the commissioner of insurance 4 22 shall examine claims in which there has been an agreement for 4 23 settlement or an award has been made involving the second 4 24 injury compensation Act and shall determine the outstanding 4 25 liability of such claims. The commissioner of insurance shall 4 26 continue to examine claims as required by this section until 4 27 all outstanding liabilities involving the second injury 4 28 compensation Act are retired. 4 29 b. For each fiscal year commencing on or after the 4 30 effective date of this Act and for subsequent fiscal years, 4 31 the commissioner of insurance may adopt by rule, pursuant to 4 32 chapter 17A, a surcharge on employers pursuant to the 4 33 requirements of this section and payable to the second injury 4 34 compensation claims fund if, pursuant to its annual 4 35 examination of claims, the commissioner of insurance 5 1 determines that insufficient funds are available in the second 5 2 injury compensation claims fund to pay claims involving the 5 3 second injury compensation Act. The surcharge shall apply to 5 4 all workers' compensation insurance policies and self- 5 5 insurance coverages of employers approved for self-insurance 5 6 by the commissioner of insurance pursuant to section 87.4 or 5 7 87.11, and to the state of Iowa, its departments, divisions, 5 8 agencies, commissions, and boards, or any political 5 9 subdivision coverages whether insured or self-insured. The 5 10 surcharge shall not apply to any reinsurance or retrocessional 5 11 transaction under section 520.4 or 520.9. The commissioner of 5 12 insurance shall base the surcharge for each payor upon the 5 13 payor's pro rata share of weekly benefits paid in the state 5 14 during the immediately preceding fiscal year. The 5 15 commissioner of insurance may use reports of weekly benefits 5 16 paid derived from the last completed policy or reporting year, 5 17 or other consistent allocation methodology. The surcharge is 5 18 collectible by an insurer or from its policyholders if the 5 19 insured employer fails to pay the insurer. An insurance 5 20 carrier, its agent, or a third-party administrator shall not 5 21 be entitled to any portion of the surcharge as a fee or 5 22 commission for its collection. The surcharge is not subject 5 23 to any taxes, licenses, or fees. The surcharge is not deemed 5 24 to be an assessment or tax, but shall be deemed an additional 5 25 benefit paid for injuries compensable under the second injury 5 26 compensation Act. 5 27 3. FINAL DISPOSITION OF CLAIMS. The industrial 5 28 commissioner of the department of workforce development, in 5 29 cooperation with the treasurer of state, shall resolve claims 5 30 involving the second injury compensation Act as soon as 5 31 possible through payment methods, such as, but not limited to, 5 32 entering into lump sum settlements or purchasing of annuities. 5 33 4. ADMINISTRATIVE EXPENSES OF SPECIAL COUNSEL. For each 5 34 fiscal year commencing on or after the effective date of this 5 35 Act and for subsequent fiscal years, the attorney general 6 1 shall not be compensated for administrative expenses incurred 6 2 in connection with the second injury compensation claims fund. 6 3 Sec. 10. Sections 85.64, 85.65, 85.66, 85.67, 85.68, and 6 4 85.69, Code 1997, are repealed. 6 5 Sec. 11. EFFECTIVE DATE. This Act, being deemed of 6 6 immediate importance, takes effect upon enactment. 6 7 EXPLANATION 6 8 This bill repeals the second injury compensation Act. The 6 9 second injury compensation Act provides that an employee who 6 10 had previously lost the use of one hand, arm, foot, leg, or 6 11 eye would be entitled to compensation for that loss from a 6 12 separate second injury fund if the employee subsequently 6 13 becomes permanently disabled by the loss of another member or 6 14 organ which is compensable under workers' compensation 6 15 provisions. Under current law, the employer is only liable 6 16 for the degree of disability which resulted from the latter 6 17 injury as if the previous injury did not occur. This bill 6 18 provides that if the employee who had previously lost the use 6 19 of one hand, arm, foot, leg, or eye becomes permanently 6 20 disabled by the loss of another such member or organ, and the 6 21 combination of the losses results in the employee being 6 22 totally disabled, the employee is entitled to recover from the 6 23 employer benefits for a permanent total disability. 6 24 The bill also establishes the process for settling unpaid 6 25 claims and settlements arising out of the second injury 6 26 compensation Act. The bill establishes a second injury 6 27 compensation claims fund with the treasurer of state for 6 28 payment of claims arising out of the second injury 6 29 compensation Act and provides that any moneys in the second 6 30 injury fund shall be transferred to this new fund. 6 31 The bill also directs the commissioner of insurance to 6 32 examine the claims involving the second injury compensation 6 33 Act and determine the outstanding liability for such claims. 6 34 The bill provides that if the commissioner of insurance 6 35 determines that there are insufficient funds in the second 7 1 injury compensation claims fund to pay claims, the 7 2 commissioner of insurance may impose, by rule, a surcharge on 7 3 employers. The surcharge shall apply to all workers' 7 4 compensation insurance policies and self-insurance coverages 7 5 of employers approved for self-insurance by the commissioner 7 6 of insurance and to the state of Iowa, its departments, 7 7 divisions, agencies, commissions, and boards, or any political 7 8 subdivision coverages whether insured or self-insured. The 7 9 bill provides that this examination and surcharge process 7 10 shall continue until the outstanding debt arising out of the 7 11 second injury compensation Act is retired. 7 12 The bill also directs the industrial commissioner, in 7 13 cooperation with the treasurer of state, to resolve to final 7 14 disposition claims involving the second injury compensation 7 15 Act as soon as possible through payment methods, such as, but 7 16 not limited to, entering into lump sum settlements or 7 17 purchasing of annuities. In addition, the attorney general 7 18 shall not be compensated from the second injury compensation 7 19 claims fund for administrative expenses incurred in connection 7 20 with the fund. 7 21 The bill takes effect upon enactment. 7 22 LSB 2015HV 77 7 23 ec/sc/14
Text: HF00638 Text: HF00640 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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