Text: HSB00208                          Text: HSB00210
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

House Study Bill 209

Bill Text

PAG LIN
  1  1    Section 1.  Section 85.3, subsection 2, Code 1999, is
  1  2 amended to read as follows:
  1  3    2.  Any employer who is a nonresident of the this state,
  1  4 for whom services are performed within the this state by
  1  5 employees entitled to rights under this chapter, chapter 85A
  1  6 or chapter 85B any employee is deemed to be doing business in
  1  7 this state by virtue of having such services performed and the
  1  8 employer and employee shall be subject to the jurisdiction of
  1  9 the workers' compensation commissioner and to all of the
  1 10 provisions of this chapter, chapters 85A, 85B, 86, and 87, as
  1 11 to any and all personal injuries sustained by an the employee
  1 12 arising out of and in the course of such employment within
  1 13 this state.
  1 14    In addition to those persons authorized to receive personal
  1 15 service as in civil actions as permitted by chapter 17A, such
  1 16 employer shall be deemed to have appointed the secretary of
  1 17 state of this state as its lawful attorney upon whom may be
  1 18 served or delivered any and all notices authorized or required
  1 19 by the provisions of this chapter, chapters 85A, 85B, 86, 87,
  1 20 and 17A, and to agree that any and all such services or
  1 21 deliveries of notice on the secretary of state shall be of the
  1 22 same legal force and validity as if personally served upon or
  1 23 delivered to such nonresident employer in this state.  Service
  1 24 of process or original notice upon an employer who is a
  1 25 nonresident of this state shall be performed as provided in
  1 26 section 617.3.  For purposes of this subsection, "employer who
  1 27 is a nonresident of this state" means any employer that is a
  1 28 nonresident person as defined in section 617.3.
  1 29    Sec. 2.  Section 85.22, Code 1999, is amended by striking
  1 30 the section and inserting in lieu thereof the following:
  1 31    85.22  LIABILITY OF OTHERS – INDEMNITY AND SUBROGATION.
  1 32    1.  When an employee receives an injury, dies, or incurs an
  1 33 occupational disease or an occupational hearing loss for which
  1 34 workers' compensation benefits are payable under this chapter,
  1 35 chapter 85A, or chapter 85B, under circumstances creating a
  2  1 cause of action for damages for personal injury or wrongful
  2  2 death against a third party other than the employee's employer
  2  3 or any employee of the employer as provided in section 85.20,
  2  4 the employer shall promptly pay all workers' compensation
  2  5 benefits that accrue and the employee may pursue the cause of
  2  6 action against the third party without waiving workers'
  2  7 compensation benefits.
  2  8    2.  If the employee receives a recovery from the third
  2  9 party, the employer shall be indemnified with interest for the
  2 10 workers' compensation benefits actually paid less prorated
  2 11 attorney fees as provided in this section.  The employer shall
  2 12 have a lien upon the cause of action and recovery to secure
  2 13 its right of indemnification and an offset against any
  2 14 workers' compensation benefits that become payable after the
  2 15 third-party recovery is disbursed.  The employer may be
  2 16 subrogated to the rights of the employee if the employee fails
  2 17 to commence an action against the third party.
  2 18    3.  The employee shall give the employer written notice of
  2 19 making a claim against a third party and shall serve a copy of
  2 20 the original notice and petition upon the employer within ten
  2 21 days after commencing an action against a third party.
  2 22 Failure to give the notice shall not prejudice the employer or
  2 23 the cause of action against the third party.  The employer's
  2 24 lien is perfected by filing written notice in the office of
  2 25 the clerk of the district court where the action against the
  2 26 third party is pending.  The lien is binding on any person who
  2 27 has actual knowledge that the employee has received workers'
  2 28 compensation benefits from the employer.  The employer shall
  2 29 provide an itemized statement showing the amount of its lien
  2 30 whenever requested by the employee or the third party.
  2 31    4.  The employer may request in writing that the employee
  2 32 commence an action against a third party.  If the employee
  2 33 fails to commence the action within ninety days after the
  2 34 request, the employer is subrogated to the rights of the
  2 35 employee to pursue the cause of action against the third
  3  1 party.  The employer may commence a subrogation action without
  3  2 giving prior notice to the employee within the last thirty
  3  3 days prior to the time the cause of action would be barred by
  3  4 any applicable statute of limitation.  An employer who
  3  5 exercises subrogation rights shall give the employee written
  3  6 notice of making a claim against a third party and shall serve
  3  7 a copy of the original notice and petition on the employee
  3  8 within ten days after commencing an action against a third
  3  9 party.  The employee shall reasonably cooperate with the
  3 10 employer's efforts to pursue the cause of action.
  3 11    5.  A recovery from a third party shall be disbursed as
  3 12 follows:
  3 13    a.  Fees for the employee's attorney, including
  3 14 administrative expenses of litigation, shall be paid.  Any
  3 15 dispute concerning attorney fees shall be determined by the
  3 16 court having jurisdiction of the third-party action.  When
  3 17 determining attorney fees, the court may also determine the
  3 18 validity and amount of the employer's right to
  3 19 indemnification.  The proportion of the total recovery that is
  3 20 paid for attorney fees shall be computed to the nearest one-
  3 21 hundredth of a percent to determine the factor for prorated
  3 22 attorney fees.  A party is responsible for prorated attorney
  3 23 fees allocable to the portion of the recovery received by the
  3 24 party.
  3 25    b.  The employee shall be paid one-third of the net
  3 26 recovery remaining after payment of attorney fees or twenty-
  3 27 five thousand dollars, whichever is less, which shall not be
  3 28 subject to an employer's lien and offset rights.  If the
  3 29 recovery is obtained by the employer exercising subrogation
  3 30 rights, no payment under this paragraph is required if the
  3 31 employee has unreasonably refused to cooperate with the
  3 32 employer's pursuit of the cause of action against the third
  3 33 party.
  3 34    c.  The employer shall pay all unpaid worker's compensation
  3 35 benefits which have accrued at the time the third-party
  4  1 recovery is disbursed and the employer shall then be
  4  2 indemnified for the workers' compensation benefits actually
  4  3 paid together with interest at the rate provided by section
  4  4 85.30 from the date the benefits were paid less prorated
  4  5 attorney fees.  The employer shall not be indemnified for
  4  6 interest paid pursuant to section 85.30 or additional benefits
  4  7 paid pursuant to section 86.13 due to a delay in commencement
  4  8 or termination of benefits without reasonable or probable
  4  9 cause or excuse.
  4 10    d.  Any portion of the recovery remaining after the
  4 11 disbursements provided in paragraphs "a" through "c" shall be
  4 12 paid to the employee, subject to the employer's right of
  4 13 offset.
  4 14    6.  If the employee's entitlement to workers' compensation
  4 15 benefits is unliquidated at the time the third-party recovery
  4 16 is disbursed, or if additional benefits become due after the
  4 17 third-party recovery is disbursed, the employer's liability
  4 18 for those benefits shall be satisfied by offsetting the amount
  4 19 of benefits for which the employer would be liable if there
  4 20 had not been a third-party recovery against the remainder paid
  4 21 to the employee under subsection 5, paragraph "d".  If
  4 22 satisfaction of the employer's liability by offset causes a
  4 23 portion of the third-party recovery to be received by the
  4 24 employer, the employer shall reimburse the employee for the
  4 25 prorated attorney fees attributable to the amount of the
  4 26 employer's liability that is satisfied by offset.  The
  4 27 employee shall be reimbursed for prorated attorney fees on
  4 28 weekly compensation or any other benefit payable directly to
  4 29 the employee at the time the benefit would be due if there had
  4 30 not been a third-party recovery.  The employee shall be
  4 31 reimbursed for prorated attorney fees within thirty days after
  4 32 the employee submits proof to the employer that the employee
  4 33 has paid charges for which the employer would be liable under
  4 34 section 85.27 if there had not been a third-party recovery.
  4 35 Amounts reimbursed to the employee for prorated attorney fees
  5  1 are subject to the employer's right of offset.
  5  2    7.  A settlement with a third party is effective only if
  5  3 both the employer and employee give written consent, or if it
  5  4 is approved by the workers' compensation commissioner.  When
  5  5 granting approval, the commissioner may also determine the
  5  6 validity and amount of the employer's right to
  5  7 indemnification.
  5  8    8.  As used in this section, "recovery" means a payment of
  5  9 anything of value, from or on behalf of the third party, paid
  5 10 to or as directed by the employee, in resolution of the
  5 11 employee's cause of action for damages for personal injury or
  5 12 wrongful death against the third party regardless of the
  5 13 manner in which the payment is characterized.  "Recovery" does
  5 14 not include a payment made in good faith to resolve a claim
  5 15 for damage to the employee's tangible property, a claim made
  5 16 by a person other than the employee or the portion of a
  5 17 payment received by the estate of a deceased employee that is
  5 18 distributed to a person who is not entitled to receive
  5 19 workers' compensation benefits as a dependent of the deceased
  5 20 employee.
  5 21    9.  As used is this section, "employee" includes the
  5 22 employee's trustee, guardian, conservator, estate, or other
  5 23 legal representative.  "Employee" includes a deceased
  5 24 employee's surviving spouse or other dependent who is paid
  5 25 workers' compensation benefits.
  5 26    10.  As used in this section, "employer" includes an
  5 27 insurance carrier acting pursuant to chapter 87 and any other
  5 28 person or entity who pays or is legally obligated to pay
  5 29 workers' compensation benefits to the employee on behalf of
  5 30 the employer.
  5 31    Sec. 3.  Section 85.27, unnumbered paragraph 3, Code 1999,
  5 32 is amended to read as follows:
  5 33    Notwithstanding section 85.26, subsection 4, charges
  5 34 believed to be excessive or unnecessary may be referred by the
  5 35 employer, insurance carrier, or health service provider to the
  6  1 workers' compensation commissioner for determination, and the
  6  2 commissioner may utilize the procedures provided in sections
  6  3 86.38 and 86.39, or set by rule, and conduct such inquiry as
  6  4 the commissioner deems necessary.  Any health service provider
  6  5 charges not in dispute shall be paid directly to the health
  6  6 service provider prior to utilization of procedures provided
  6  7 in sections 86.38 and 86.39 or set by rule.  A health service
  6  8 provider rendering treatment to an employee whose injury is
  6  9 compensable under this section agrees to be bound by such
  6 10 charges as allowed by the workers' compensation commissioner
  6 11 and shall not recover in law or equity any amount in excess of
  6 12 charges set by the commissioner.  When a dispute under this
  6 13 chapter 85 regarding reasonableness of a fee for medical
  6 14 services arises between a health service provider and an
  6 15 employer or insurance carrier, the health service provider,
  6 16 employer, or insurance carrier shall not seek payment from the
  6 17 injured employee.  When a dispute under this chapter regarding
  6 18 reasonableness of a fee for medical services arises between a
  6 19 health service provider and an insurance carrier, the health
  6 20 service provider shall not seek payment from the employer.
  6 21    Sec. 4.  Section 85.27, unnumbered paragraph 6, Code 1999,
  6 22 is amended to read as follows:
  6 23    While a contested case proceeding for determination of
  6 24 liability for workers' compensation benefits is pending before
  6 25 the workers' compensation commissioner relating to an injury
  6 26 alleged to have given rise to treatment, no debt collection,
  6 27 as defined by section 537.7102, shall be undertaken against an
  6 28 the employee, or the employee's dependents, or the employer
  6 29 for the collection of charges for that treatment rendered an
  6 30 employee by any health service provider.  However, the health
  6 31 service provider may send one itemized written bill to the
  6 32 employee and the employer setting forth the amount of the
  6 33 charges in connection with the treatment after notification of
  6 34 the contested case proceeding.
  6 35    Sec. 5.  Section 85.30, Code 1999, is amended to read as
  7  1 follows:
  7  2    85.30  MATURITY DATE AND INTEREST.
  7  3    Compensation payments become due and shall be made paid
  7  4 each week beginning on the eleventh day after the injury, and
  7  5 on the same day of each week thereafter during the period for
  7  6 which compensation is payable, and if.  A payment is paid when
  7  7 delivered to the employee or deposited in the United States
  7  8 mail, with sufficient postage, properly addressed to the
  7  9 employee.  If compensation is not fully paid when due, there
  7 10 shall be added to the weekly compensation payments, interest
  7 11 accrues at the rate provided in section 535.3 for court
  7 12 judgments and decrees on the unpaid amount from the date the
  7 13 payment became due until it is fully paid.  Payments are
  7 14 allocated first to any accrued interest with the balance of
  7 15 the payment allocated to unpaid compensation payments.
  7 16    Sec. 6.  Section 85.33, subsection 4, Code 1999, is amended
  7 17 to read as follows:
  7 18    4.  If an employee is entitled to temporary partial
  7 19 benefits under subsection 3 of this section, the employer for
  7 20 whom the employee was working at the time of injury shall pay
  7 21 to the employee weekly compensation benefits, as provided in
  7 22 section 85.32, for and during the period of temporary partial
  7 23 disability.  The temporary partial benefit shall be sixty-six
  7 24 and two-thirds percent of the difference between the
  7 25 employee's gross weekly earnings at the time of injury,
  7 26 computed in compliance with section 85.36, and the employee's
  7 27 actual gross weekly income from employment during the period
  7 28 of temporary partial disability.  If at the time of injury an
  7 29 employee is paid on the basis of the output of the employee,
  7 30 with a minimum guarantee pursuant to a written employment
  7 31 agreement, the minimum guarantee shall be used as the
  7 32 employee's weekly earnings at the time of injury.  However,
  7 33 the weekly compensation benefits shall not exceed the payments
  7 34 to which the employee would be entitled under section 85.36 or
  7 35 section 85.37, or under subsection 1 of this section.
  8  1    Sec. 7.  Section 85.36, Code 1999, is amended to read as
  8  2 follows:
  8  3    85.36  BASIS OF COMPUTATION.
  8  4    The basis of compensation shall be the gross weekly
  8  5 earnings of the injured employee at the time of the injury.
  8  6 Weekly earnings "Gross weekly earnings" means gross salary,
  8  7 wages, or earnings of an employee to which such employee would
  8  8 have been entitled had the employee worked the customary hours
  8  9 for the full pay period in which the employee was injured, as
  8 10 regularly required by the employee's employer for the work or
  8 11 employment for which the employee was employed, for any
  8 12 particular injured employee, the following amount, based upon
  8 13 the gross earnings of the injured employee, computed or
  8 14 determined as follows and then rounded to the nearest dollar:
  8 15    1.  In the case of an employee who is paid a fixed salary,
  8 16 the following amount:
  8 17    a.  If the employee is paid on a weekly pay period basis,
  8 18 the employee's weekly gross earnings.
  8 19    2. b.  In If the case of an employee who is paid on a
  8 20 biweekly pay period basis, one-half of the employee's biweekly
  8 21 gross earnings.
  8 22    3. c.  In If the case of an employee who is paid on a
  8 23 semimonthly pay period basis, the employee's semimonthly gross
  8 24 earnings multiplied by twenty-four and subsequently divided by
  8 25 fifty-two.
  8 26    4. d.  In If the case of an employee who is paid on a
  8 27 monthly pay period basis, the employee's monthly gross
  8 28 earnings multiplied by twelve and subsequently divided by
  8 29 fifty-two.
  8 30    5. e.  In If the case of an employee who is paid on a
  8 31 yearly pay period basis, the weekly earnings shall be the
  8 32 employee's yearly gross earnings divided by fifty-two.
  8 33    6. 2.  In the case of an employee who is paid on a daily,
  8 34 or hourly basis, or by the output of the employee, the weekly
  8 35 earnings shall be computed by dividing by thirteen following
  9  1 amount:
  9  2    a.  If the employee has been in the employ of the employer
  9  3 for the thirteen calendar weeks immediately preceding the
  9  4 injury, the gross earnings, not including overtime or premium
  9  5 pay, of said employee earned in the employ of the employer in
  9  6 the last completed period of thirteen consecutive calendar
  9  7 weeks immediately preceding the injury divided by thirteen.
  9  8    7. b.  In If the case of an employee who has been in the
  9  9 employ of the employer less than thirteen calendar weeks
  9 10 immediately preceding the injury and paragraph "c" does not
  9 11 apply, the employee's weekly earnings shall be computed under
  9 12 subsection 6, taking the earnings, not including overtime or
  9 13 premium pay, for such purpose to be the amount the employee
  9 14 would have earned had the employee been so employed by the
  9 15 employer the full thirteen calendar weeks immediately
  9 16 preceding the injury and had worked, when work was available
  9 17 to other employees in a similar occupation, divided by
  9 18 thirteen, or, if the earnings of other employees in a similar
  9 19 occupation cannot be determined, the gross earnings of the
  9 20 employee for the number of weeks the employee has been in the
  9 21 employ of the employer divided by the number of weeks.
  9 22    c.  If the employee was absent from employment for reasons
  9 23 personal to the employee during part of the thirteen calendar
  9 24 weeks immediately preceding the injury, the amount the
  9 25 employee would have earned had the employee worked the full
  9 26 thirteen calendar weeks immediately preceding the injury when
  9 27 work was available to other employees of the same employer in
  9 28 a similar occupation divided by thirteen.
  9 29    8. 4.  If at the time of the injury the hourly earnings
  9 30 have not been fixed or cannot be ascertained, the gross
  9 31 earnings for the purpose of calculating compensation shall be
  9 32 taken to be the usual earnings for similar services where such
  9 33 services are rendered by paid employees.
  9 34    9.  If an employee earns either no wages or less than the
  9 35 usual weekly earnings of the regular full-time adult laborer
 10  1 in the line of industry in which the employee is injured in
 10  2 that locality, the weekly earnings shall be one-fiftieth of
 10  3 the total earnings which the employee has earned from all
 10  4 employment during the twelve calendar months immediately
 10  5 preceding the injury.
 10  6    a. 5.  In computing the compensation to be allowed a
 10  7 volunteer fire fighter, emergency medical care provider,
 10  8 reserve peace officer, volunteer ambulance driver, volunteer
 10  9 emergency rescue technician as defined in section 147A.1, or
 10 10 emergency medical technician trainee, the earnings as a fire
 10 11 fighter, emergency medical care provider, reserve peace
 10 12 officer, volunteer ambulance driver, volunteer emergency
 10 13 rescue technician, or emergency medical technician trainee
 10 14 shall be disregarded and the volunteer fire fighter, emergency
 10 15 medical care provider, reserve peace officer, volunteer
 10 16 ambulance driver, volunteer emergency rescue technician, or
 10 17 emergency medical technician trainee shall be paid an amount
 10 18 equal to the compensation the volunteer fire fighter,
 10 19 emergency medical care provider, reserve peace officer,
 10 20 volunteer ambulance driver, volunteer emergency rescue
 10 21 technician, or emergency medical technician trainee would be
 10 22 paid if injured in the normal course of the volunteer fire
 10 23 fighter's, emergency medical care provider's, reserve peace
 10 24 officer's, volunteer ambulance driver's, volunteer emergency
 10 25 rescue technician's, or emergency medical technician trainee's
 10 26 regular employment or an amount equal to one hundred and forty
 10 27 percent of the statewide average weekly wage, whichever is
 10 28 greater.
 10 29    b. 6.  If the employee was an apprentice or trainee when
 10 30 injured, and it is established under normal conditions the
 10 31 employee's earnings should be expected to increase during the
 10 32 period of disability, that fact may be considered in computing
 10 33 the employee's gross weekly earnings.
 10 34    c. 7.  In computing the compensation to be paid to any
 10 35 employee who, before the accident for which the employee
 11  1 claims compensation, was disabled and drawing compensation
 11  2 under the provisions of this chapter, the compensation for
 11  3 each subsequent injury shall be apportioned according to the
 11  4 proportion of disability caused by the respective injuries
 11  5 which the employee shall have suffered.
 11  6    Paragraph "c" of this This subsection shall not apply to
 11  7 compensable injuries arising under the second injury
 11  8 compensation Act.
 11  9    d. 8.  If the employee was an inmate as defined in section
 11 10 85.59, the inmate's actual earnings shall be disregarded, and
 11 11 the weekly compensation rate shall be as set forth in section
 11 12 85.59.
 11 13    10. 9.  If a wage, or method of calculating a wage, is used
 11 14 for the basis of the payment of a workers' compensation
 11 15 insurance premium for a proprietor, partner, limited liability
 11 16 company member, or officer of a corporation, the wage or the
 11 17 method of calculating the wage is determinative for purposes
 11 18 of computing the proprietor's, partner's, limited liability
 11 19 company member's, or officer's weekly workers' compensation
 11 20 benefit rate.
 11 21    11. 10.  In computing the compensation to be allowed an
 11 22 elected or appointed official, the official may choose either
 11 23 of the following payment options:
 11 24    a.  The official shall be paid an amount of compensation
 11 25 based on the official's weekly earnings as an elected or
 11 26 appointed official.
 11 27    b.  The earnings of the official as an elected or appointed
 11 28 official shall be disregarded and the official shall be paid
 11 29 an amount equal to one hundred forty percent of the statewide
 11 30 average weekly wage.
 11 31    12. 11.  In the case of an employee injured in the course
 11 32 of performing as a professional athlete, the basis of
 11 33 compensation for weekly earnings shall be one-fiftieth of
 11 34 total earnings which the employee has earned from all
 11 35 employment for the previous twelve months prior to the injury.
 12  1    12.  If none of the methods described in this section for
 12  2 determining an employee's gross weekly earnings provides a
 12  3 result that is fairly representative of the employee's actual
 12  4 gross weekly earnings, whether the amount determined is too
 12  5 high or too low, the gross weekly earnings shall be one-fifty-
 12  6 second of the total gross earnings the employee has earned
 12  7 from all employment during the twelve calendar months
 12  8 preceding the injury.
 12  9    Sec. 8.  Section 85.44, Code 1999, is amended to read as
 12 10 follows:
 12 11    85.44  PAYMENT TO ACTUAL DEPENDENTS.
 12 12    In all other cases, a dependent shall be one actually
 12 13 dependent or and mentally or physically incapacitated from
 12 14 earning.  Such dependency status shall be determined in
 12 15 accordance with the facts as of the date of the injury.  If
 12 16 one person is wholly dependent, the compensation shall be paid
 12 17 to that person.  In such cases if If there is more than one
 12 18 person wholly dependent, the compensation benefit shall be
 12 19 equally divided among them.  If there is no one wholly
 12 20 dependent and one or more than one person partially dependent,
 12 21 the compensation benefit shall be divided among them in the
 12 22 proportion each dependency bears to their aggregate
 12 23 dependency.
 12 24    Sec. 9.  Section 85.61, subsection 3, Code 1999, is amended
 12 25 to read as follows:
 12 26    3.  "Gross earnings" means recurring payments by employer
 12 27 to the employee for employment, before any authorized or
 12 28 lawfully required deduction or withholding of funds by the
 12 29 employer, excluding irregular bonuses, retroactive pay,
 12 30 overtime, premium pay, penalty pay, reimbursement of expenses,
 12 31 expense allowances, and the employer's contribution for
 12 32 welfare benefits.
 12 33    Sec. 10.  Section 85.71, subsection 1, Code 1999, is
 12 34 amended to read as follows:
 12 35    1.  The employment is principally localized in this state,
 13  1 that is, the employee's employer has a place of business in
 13  2 this or some other state and the employee regularly works in
 13  3 this state more of the employee's working time for the
 13  4 employer is spent in this state than in any other state, or if
 13  5 the employee's employer has a place of business in this state
 13  6 and the employee is domiciled in this state.
 13  7    Sec. 11.  Section 86.11, Code 1999, is amended to read as
 13  8 follows:
 13  9    86.11  REPORTS OF INJURIES.
 13 10    Every employer shall hereafter keep a record of all
 13 11 injuries, fatal or otherwise, alleged by an employee to have
 13 12 been sustained in the course of the employee's employment and
 13 13 resulting in incapacity for a longer period than one day.  If
 13 14 the injury results only in temporary disability, causing
 13 15 incapacity for a longer period than three days except as
 13 16 provided in section 86.36, then within four days thereafter,
 13 17 not counting Sundays and legal holidays, the employer or
 13 18 insurance carrier having had notice or knowledge of the
 13 19 occurrence of such injury and resulting disability, shall file
 13 20 a report with the workers' compensation commissioner in the
 13 21 form and manner required by the commissioner.  If such injury
 13 22 to the employee results in permanent total disability,
 13 23 permanent partial disability or death, then the employer or
 13 24 insurance carrier upon notice or knowledge of the occurrence
 13 25 of the employment injury, shall file a report with the
 13 26 workers' compensation commissioner, within four days after
 13 27 having notice or knowledge of the permanent injury to the
 13 28 employee or the employee's death.  The report to the workers'
 13 29 compensation commissioner of injury shall be without prejudice
 13 30 to the employer or insurance carrier and shall not be admitted
 13 31 in evidence or used in any trial or hearing before any court,
 13 32 the workers' compensation commissioner or a deputy workers'
 13 33 compensation commissioner except as to the notice under
 13 34 section 85.23.
 13 35    Sec. 12.  NEW SECTION.  86.15A  WEEKLY COMPENSATION PENDING
 14  1 HEARING.
 14  2    1.  An employee who has filed a petition in an original
 14  3 proceeding as provided in section 86.14, subsection 1, may
 14  4 move for payment of weekly compensation pending hearing.  The
 14  5 motion must allege that the employee is disabled and is not
 14  6 receiving wages from any source or wage replacement benefits.
 14  7 Wage replacement benefits include unemployment compensation,
 14  8 social security disability benefits, any benefit for
 14  9 disability or unemployment under a government program, sick
 14 10 pay, or any benefit under an income continuation plan to which
 14 11 the employer has contributed.  An employee is deemed to be
 14 12 without wages or wage replacement benefits if the total of all
 14 13 the benefits received is less than fifty percent of the
 14 14 employee's gross weekly earnings as determined under section
 14 15 85.36.
 14 16    2.  A hearing on the motion for weekly compensation pending
 14 17 hearing shall be conducted within no less than forty-five days
 14 18 nor more than ninety days following filing of the motion.  If
 14 19 the ruling in the hearing finds the employee to be disabled,
 14 20 without income replacement benefits attributable to the
 14 21 employer and entitled to weekly compensation, all unpaid
 14 22 accrued weekly compensation for temporary total, temporary
 14 23 partial, or healing period disability shall be awarded in a
 14 24 lump sum with interest, and the employer shall be ordered to
 14 25 continue paying weekly compensation pending hearing.
 14 26    3.  An order to pay weekly compensation pending hearing
 14 27 shall remain in effect until the date of the hearing on the
 14 28 petition in an original proceeding as provided in section
 14 29 86.14, subsection 1, until twenty-six weeks of compensation
 14 30 have been paid pursuant to the order, or until the employee's
 14 31 entitlement under section 85.33 or 85.34, subsection 1, ceases
 14 32 and weekly compensation is terminated in accordance with
 14 33 section 86.13, whichever occurs first.
 14 34    4.  The ruling on the motion for payment of weekly
 14 35 compensation pending hearing is an interlocutory decision that
 15  1 is not subject to appeal to the workers' compensation
 15  2 commissioner.  The interlocutory decision does not, however,
 15  3 preclusively determine any issue of law or fact.
 15  4    5.  If it is subsequently adjudicated that the employee was
 15  5 not entitled to all the weekly compensation paid pursuant to
 15  6 an order to pay weekly compensation pending hearing, the
 15  7 excess paid shall be offset against any unpaid weekly
 15  8 compensation awarded to the employee.  Any excess payments
 15  9 remaining shall constitute an overpayment pursuant to section
 15 10 85.34, subsection 5.
 15 11    6.  If it is subsequently adjudicated that the employee was
 15 12 entitled to weekly compensation awarded pursuant to this
 15 13 section, but the weekly compensation was not timely paid by
 15 14 the employer, the ruling on the motion shall be considered
 15 15 when determining whether the failure to pay was unreasonable
 15 16 for the purposes of section 86.13.
 15 17    Sec. 13.  Section 86.17, subsection 2, Code 1999, is
 15 18 amended to read as follows:
 15 19    2.  Hearings in contested case proceedings under chapters
 15 20 85, and 85A and this chapter shall be held in the judicial
 15 21 district where the injury occurred.  By Upon written
 15 22 stipulation of the parties or by the order of, a deputy
 15 23 workers' compensation commissioner or the workers'
 15 24 compensation commissioner, may order that a hearing may be
 15 25 held elsewhere.  If the injury occurred outside this state, or
 15 26 if the proceeding is not one for benefits resulting from an
 15 27 injury, hearings shall be held in Polk county or as otherwise
 15 28 stipulated by the parties or by order of a deputy workers'
 15 29 compensation commissioner or the workers' compensation
 15 30 commissioner.
 15 31    Sec. 14.  NEW SECTION.  87.1A  PROOF OF INSURANCE COVERAGE.
 15 32    The workers' compensation commissioner may, by rule,
 15 33 require every employer subject to this chapter to present
 15 34 satisfactory evidence to the workers' compensation
 15 35 commissioner that the employer has secured the payment of
 16  1 compensation as provided in this chapter.  If the method of
 16  2 securing the payment of compensation by the employer changes,
 16  3 the employer shall report the change to the workers'
 16  4 compensation commissioner within ten days after such change
 16  5 occurs.
 16  6    Sec. 15.  NEW SECTION.  87.1B  NOTICE OF INSURANCE
 16  7 COVERAGE.
 16  8    An employer subject to the provisions of this chapter shall
 16  9 post and keep posted in a conspicuous place or places in and
 16 10 about the place or places of business of the employer a
 16 11 typewritten or printed notice, in accordance with a form
 16 12 prescribed by the workers' compensation commissioner, stating
 16 13 that the employer has secured the payment of compensation in
 16 14 accordance with this chapter.  The notice shall contain the
 16 15 name and address of the organization with whom the employer
 16 16 has secured payment of compensation as provided in this
 16 17 chapter.
 16 18    Sec. 16.  NEW SECTION.  87.28  INSURANCE CARRIERS –
 16 19 AUTHORIZED REPRESENTATIVE.
 16 20    1.  All licensed insurers, foreign and domestic, insuring
 16 21 workers' compensation and all employers relieved from
 16 22 insurance pursuant to section 87.11, shall designate one or
 16 23 more persons geographically located within the borders of this
 16 24 state, which person or persons shall be knowledgeable of the
 16 25 Iowa workers' compensation law and rules and shall be given
 16 26 the authority and have the responsibility to expedite the
 16 27 handling of all matters within the scope of chapters 85, 85A,
 16 28 85B, and 86, and this chapter.
 16 29    2.  The workers' compensation commissioner shall be advised
 16 30 by letter of the name, address, and telephone number of each
 16 31 of the persons so designated.  Any change in the identity,
 16 32 address, or telephone number of the persons so designated
 16 33 shall be reported to the workers' compensation commissioner
 16 34 within ten days after such change occurs.
 16 35    Sec. 17.  Section 535.3, subsection 1, Code 1999, is
 17  1 amended to read as follows:
 17  2    1.  Interest shall be allowed on all money due on judgments
 17  3 and decrees of courts at a rate calculated according to
 17  4 section 668.13, except for interest due pursuant to section
 17  5 85.30 for which the rate shall be ten percent per year.
 17  6    Sec. 18.  Section 86.36, Code 1999, is repealed.  
 17  7                           EXPLANATION
 17  8    The bill makes several changes to the workers' compensation
 17  9 system.
 17 10    The bill substitutes the provisions governing service of
 17 11 resident and nonresident employers provided in current Code
 17 12 sections 85.3 and 86.36, with the provisions generally
 17 13 governing service on nonresidents provided in Code section
 17 14 617.3.  Code section 86.36 is repealed.
 17 15    Current Code section 85.22, governing an employer's
 17 16 subrogation and indemnification rights regarding payment of
 17 17 benefits, is stricken and replaced.  The new language provides
 17 18 the procedure for an employer to seek recovery of workers'
 17 19 compensation benefits paid from a liable third party.  The new
 17 20 language also permits an employer to be subrogated to a
 17 21 recovery an injured employee may receive.  The procedure and
 17 22 priority for distributing moneys received by an employer or
 17 23 employee arising out of an injury permitting workers'
 17 24 compensation benefits is also provided.
 17 25    Code section 85.27, governing the recovery of paid health
 17 26 care benefits to an injured employee, is amended.  The bill
 17 27 provides that while a dispute as to the reasonableness of a
 17 28 health care charge is pending between an insurance carrier and
 17 29 health care provider, the health care provider shall not seek
 17 30 recovery of the charge from the employer.  In addition, the
 17 31 bill provides that no debt collection efforts shall be taken
 17 32 against an employer for a health care bill while a workers'
 17 33 compensation contested case proceeding is pending.
 17 34    Code section 85.30, governing when compensation and
 17 35 interest becomes due, is amended.  The bill establishes when a
 18  1 payment is deemed to be paid, i.e., when mailed, provides when
 18  2 interest shall accrue on any unpaid amount, and specifies that
 18  3 payments are to be allocated first to interest and then to the
 18  4 underlying obligation.
 18  5    Code section 85.33 is amended to eliminate the exception
 18  6 from the usual calculation of temporary partial disability
 18  7 benefits for employees who are paid on an output, or piece-
 18  8 work, basis.
 18  9    Code section 85.36, governing the computation of an
 18 10 employee's benefits, is amended.  The Code section establishes
 18 11 an employee's gross weekly earnings which then is used in
 18 12 computing an employee's benefit amount.  The bill eliminates a
 18 13 specific definition of weekly earnings thereby relying upon
 18 14 the definition of the term in Code section 86.61.  The Code
 18 15 section is reorganized to provide separate subsections
 18 16 governing employees who work on a salary basis or on an hourly
 18 17 or other non-salary-based method of compensation.
 18 18    Code section 85.44, governing the payment of benefits to
 18 19 dependents who are not the injured employee's spouse or
 18 20 children, is amended.  The bill provides that this type of
 18 21 dependent be both actually dependent and mentally and
 18 22 physically incapacitated from earning.  The bill further
 18 23 provides for the distribution of moneys if one or more
 18 24 dependents exist.
 18 25    Code section 85.61, subsection 3, is amended to add premium
 18 26 pay to the list of earnings that constitute gross earnings.
 18 27    Code section 85.71, governing the payment for injuries
 18 28 occurring outside the state, is amended.  The bill provides
 18 29 that an employer shall pay based on Iowa law if more of the
 18 30 employee's working time with the employer is spent in this
 18 31 state than in any other.
 18 32    New Code section 86.15A is added to this bill.  The new
 18 33 Code section provides for the payment of weekly compensation
 18 34 benefits in certain circumstances pending a contested case
 18 35 hearing on the issue of whether payments should be made.  The
 19  1 new Code section specifies how a request for such a payment
 19  2 can be made and what happens upon the ultimate resolution of
 19  3 the workers' compensation contested case proceeding.
 19  4    Code section 86.17, governing the venue of workers'
 19  5 compensation contested case proceedings, is changed.  The bill
 19  6 provides that a hearing may be held in a location other than
 19  7 where the injury occurred only upon written stipulation of the
 19  8 parties.  The ability of the workers' compensation
 19  9 commissioner to move the proceeding without the parties
 19 10 consent is eliminated.
 19 11    New Code section 87.1A gives the workers' compensation
 19 12 commissioner the authority to require employers to submit
 19 13 proof of workers' compensation insurance coverage.
 19 14    New Code section 87.1B requires employers to post at their
 19 15 place of business proof that the employer has workers'
 19 16 compensation coverage.
 19 17    New Code section 87.28 requires companies providing
 19 18 workers' compensation coverage in this state to designate an
 19 19 authorized representative in this state for purposes of
 19 20 handling matters involved with the workers' compensation law.
 19 21    Code section 535.3 is amended to eliminate the 10 percent
 19 22 interest rate applicable to section 85.30 and other workers'
 19 23 compensation sections that reference it.  The change provides
 19 24 that interest shall be calculated pursuant to Code section
 19 25 668.13 for tort judgments.  
 19 26 LSB 1729HC 78
 19 27 ec/sc/14

Text: HSB00208                          Text: HSB00210
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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