Text: HSB00569 Text: HSB00571 Text: HSB00500 - HSB00599 Text: HSB 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 Supplement 1997, is amended by 1 21 striking the 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 85A.7, subsection 3, Code 1997, is amended 2 3 to read as follows: 2 4 3. When such occupational disease causes the death of an 2 5 employee and there are no dependents entitled to compensation, 2 6 then the employer shall pay the medical, hospital and burial 2 7 expenses as is provided by the workers' compensation law, and2 8shall also pay to the treasurer of the state for the use and2 9benefit of the second injury compensation fund such amount as2 10is required by the second injury compensation law. 2 11 Sec. 5. Section 86.12, unnumbered paragraph 1, Code 1997, 2 12 is amended to read as follows: 2 13 The industrial commissioner may require any employer to 2 14 supply the information required by section 86.10 or to file a 2 15 report required by section 86.11, by written demand sent to 2 16 the employer's last known address. Upon failure to supply 2 17 such information or file such report within twenty days, the 2 18 employer may be ordered to appear and show cause why the 2 19 employer should not be subject to civil penalty of one hundred 2 20 dollars for each occurrence. Upon such hearing, the 2 21 industrial commissioner shall enter a finding of fact and may 2 22 enter an order requiring such penalty to be paid into the 2 23second injurygeneral fundcreated by sections 85.63 to 85.692 24 of the state. In the event the civil penalty assessed is not 2 25 voluntarily paid the industrial commissioner may file a 2 26 certified copy of such finding and order with the clerk of the 2 27 court for the district in which the employer maintains a place 2 28 of business. If the employer maintains no place of business 2 29 in this state service shall be made as provided in chapter 85 2 30 for nonresident employers. In such case the finding and order 2 31 may be filed in any court of competent jurisdiction within 2 32 this state. 2 33 Sec. 6. SECOND INJURY FUND CLAIMS – DETERMINATION – 2 34 DISPOSITION – SURCHARGE. 2 35 1. SECOND INJURY FUND CLAIMS – DETERMINATION. 3 1 Notwithstanding the provisions of this Act to the contrary, 3 2 section 85.64 (Code 1997) and section 85.36, subsection 9, 3 3 paragraph "c", unnumbered paragraph 2 (Code 1997), apply to 3 4 compensable injuries occurring prior to the effective date of 3 5 this Act. Any claims determined pursuant to this subsection 3 6 to be payable from the second injury fund as provided by 3 7 section 85.64 (Code 1997) shall be paid as provided by this 3 8 section. 3 9 2. CREATION OF SECOND INJURY COMPENSATION CLAIMS FUND. A 3 10 second injury compensation claims fund is created within the 3 11 office of the treasurer of state. The second injury 3 12 compensation claims fund is to be used to pay claims involving 3 13 the second injury compensation Act. The treasurer of state 3 14 shall be charged with the conservation of the assets of the 3 15 second injury compensation claims fund and the collection of 3 16 contributions to the fund. The attorney general shall appoint 3 17 a staff member to represent the treasurer of state and the 3 18 fund in all proceedings and matters pertaining to the fund. 3 19 Upon the effective date of this Act, moneys in the second 3 20 injury fund shall be transferred to the second injury 3 21 compensation claims fund. 3 22 3. SECOND INJURY FUND LIABILITY – SURCHARGE ON EMPLOYERS. 3 23 a. Prior to each fiscal year commencing on or after the 3 24 effective date of this Act, the commissioner of insurance 3 25 shall examine claims in which there has been an agreement for 3 26 settlement or an award has been made involving the second 3 27 injury compensation Act and shall determine the outstanding 3 28 liability of such claims. The commissioner of insurance shall 3 29 continue to examine claims as required by this section until 3 30 all outstanding liabilities involving the second injury 3 31 compensation Act are retired. 3 32 b. For each fiscal year commencing on or after the 3 33 effective date of this Act and for subsequent fiscal years, 3 34 the commissioner of insurance may adopt by rule, pursuant to 3 35 chapter 17A, a surcharge on employers pursuant to the 4 1 requirements of this section and payable to the second injury 4 2 compensation claims fund if, pursuant to its annual 4 3 examination of claims, the commissioner of insurance 4 4 determines that insufficient funds are available in the second 4 5 injury compensation claims fund to pay claims involving the 4 6 second injury compensation Act. The surcharge shall apply to 4 7 all workers' compensation insurance policies and self- 4 8 insurance coverages of employers approved for self-insurance 4 9 by the commissioner of insurance pursuant to section 87.4 or 4 10 87.11, and to the state of Iowa, its departments, divisions, 4 11 agencies, commissions, and boards, or any political 4 12 subdivision coverages whether insured or self-insured. The 4 13 surcharge shall not apply to any reinsurance or retrocessional 4 14 transaction under section 520.4 or 520.9. In determining the 4 15 surcharge for each applicable fiscal year, the commissioner of 4 16 insurance shall provide that all insured and self-insured 4 17 employers be assessed for the outstanding liabilities arising 4 18 out of claims involving the second injury compensation Act as 4 19 determined pursuant to paragraph "a". The total assessment 4 20 amount used in calculating the surcharge for each applicable 4 21 fiscal year shall be allocated between self-insured employers 4 22 and insured employers, based on paid losses for the preceding 4 23 calendar year as provided in this paragraph. The method of 4 24 assessing self-insured employers shall be based on paid 4 25 losses. The method of assessing insured employers shall be a 4 26 surcharge based on premium, as set forth in this paragraph. 4 27 The portion of the total aggregate assessment that shall be 4 28 collected from self-insured employers shall be equal to that 4 29 proportion of total paid losses during the preceding calendar 4 30 year, which the total compensation payments of all self- 4 31 insured employers bore to the total compensation payments made 4 32 by all self-insured employers and insurers on behalf of all 4 33 insured employers during the preceding calendar year. The 4 34 portion of the total aggregate assessment that shall be 4 35 collected from insured employers shall be equal to that 5 1 proportion of total paid losses during the preceding calendar 5 2 year, which the total compensation payments on behalf of all 5 3 insured employers bore to the total compensation payments made 5 4 by all self-insured employers and insurers on behalf of all 5 5 insured employers during the preceding calendar year. 5 6 Insurers shall collect assessments from insured employers 5 7 through a surcharge based on premium. Such assessments when 5 8 collected shall not constitute an element of loss for the 5 9 purpose of establishing rates for workers' compensation 5 10 insurance but shall for the purpose of collection be treated 5 11 as separate costs by insurers. The surcharge is collectible 5 12 by an insurer or from its policyholders if the insured 5 13 employer fails to pay the insurer. An insurance carrier, its 5 14 agent, or a third-party administrator shall not be entitled to 5 15 any portion of the surcharge as a fee or commission for its 5 16 collection. The surcharge is not subject to any taxes, 5 17 licenses, or fees. The surcharge is not deemed to be an 5 18 assessment or tax, but shall be deemed an additional benefit 5 19 paid for injuries compensable under the second injury 5 20 compensation Act. 5 21 For purposes of this paragraph, unless the context 5 22 otherwise requires: 5 23 (1) "Insured employers" means employers who are 5 24 commercially insured for purposes of workers' compensation 5 25 coverage or who have been self-insured for less than twenty- 5 26 four months as of the first day of the fiscal year in which a 5 27 surcharge is imposed pursuant to this section. 5 28 (2) "Self-insured employers" means employers who have been 5 29 self-insured for purposes of workers' compensation coverage 5 30 for at least twenty-four months as of the first day of the 5 31 fiscal year in which a surcharge is imposed pursuant to this 5 32 section. 5 33 4. FINAL DISPOSITION OF CLAIMS. The industrial 5 34 commissioner of the department of workforce development, in 5 35 cooperation with the treasurer of state, shall resolve claims 6 1 involving the second injury compensation Act as soon as 6 2 possible through payment methods, such as, but not limited to, 6 3 entering into lump sum settlements or purchasing of annuities. 6 4 5. ADMINISTRATIVE EXPENSES OF SPECIAL COUNSEL. For each 6 5 fiscal year commencing on or after the effective date of this 6 6 Act and for subsequent fiscal years, the attorney general 6 7 shall not be compensated for administrative expenses incurred 6 8 in connection with the second injury compensation claims fund. 6 9 Sec. 7. Sections 85.63, 85.64, 85.65, 85.66, 85.67, 85.68, 6 10 and 85.69, Code 1997, are repealed. 6 11 Sec. 8. EFFECTIVE DATE. This Act, being deemed of 6 12 immediate importance, takes effect upon enactment. 6 13 EXPLANATION 6 14 This bill repeals the second injury compensation Act. The 6 15 second injury compensation Act provides that an employee who 6 16 had previously lost the use of one hand, arm, foot, leg, or 6 17 eye would be entitled to compensation for that loss from a 6 18 separate second injury fund if the employee subsequently 6 19 becomes permanently disabled by the loss of another member or 6 20 organ which is compensable under workers' compensation 6 21 provisions. 6 22 The bill provides that the second injury compensation Act 6 23 still applies to injuries occurring prior to the effective 6 24 date of this bill. 6 25 The bill establishes the process for settling unpaid claims 6 26 and settlements arising out of the second injury compensation 6 27 Act. The bill establishes a second injury compensation claims 6 28 fund with the treasurer of state for payment of claims arising 6 29 out of the second injury compensation Act and provides that 6 30 any moneys in the second injury fund shall be transferred to 6 31 this new fund. 6 32 The bill also directs the commissioner of insurance to 6 33 examine the claims involving the second injury compensation 6 34 Act and determine the outstanding liability for such claims. 6 35 The bill provides that if the commissioner of insurance 7 1 determines that there are insufficient funds in the second 7 2 injury compensation claims fund to pay claims, the 7 3 commissioner of insurance may impose, by rule, a surcharge on 7 4 employers. The surcharge shall apply to all workers' 7 5 compensation insurance policies and self-insurance coverages 7 6 of employers approved for self-insurance by the commissioner 7 7 of insurance and to the state of Iowa, its departments, 7 8 divisions, agencies, commissions, and boards, or any political 7 9 subdivision coverages whether insured or self-insured. The 7 10 bill also establishes the methodology for calculating the 7 11 assessment charged to insured and self-insured employees. The 7 12 bill provides that this examination and surcharge process 7 13 shall continue until the outstanding debt arising out of the 7 14 second injury compensation Act is retired. 7 15 The bill also directs the industrial commissioner, in 7 16 cooperation with the treasurer of state, to resolve to final 7 17 disposition claims involving the second injury compensation 7 18 Act as soon as possible through payment methods, such as, but 7 19 not limited to, entering into lump sum settlements or 7 20 purchasing of annuities. In addition, the attorney general 7 21 shall not be compensated from the second injury compensation 7 22 claims fund for administrative expenses incurred in connection 7 23 with the fund. 7 24 The bill takes effect upon enactment. 7 25 LSB 3776HC 77 7 26 ec/sc/14
Text: HSB00569 Text: HSB00571 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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