House Amendment 1103


PAG LIN




     1  1    Amend House File 702 as follows:
     1  2 #1.  Page 1, by inserting after line 24 the
     1  3 following:
     1  4    <Sec.    .  Section 85.35, Code 2005, is amended to
     1  5 read as follows:
     1  6    85.35  SETTLEMENT IN CONTESTED CASE SETTLEMENTS.
     1  7    1.  The parties to a contested case or persons who
     1  8 are involved in a dispute which could culminate in a
     1  9 contested case may enter into a settlement of any
     1 10 claim arising under this chapter or chapter 85A, 85B,
     1 11 or 86, providing for final disposition of the claim,
     1 12 provided that no final disposition affecting rights to
     1 13 future benefits may be had when the only dispute is
     1 14 the degree of disability resulting from an injury for
     1 15 which an award for payments or agreement for
     1 16 settlement under section 86.13 has been made.  The
     1 17 settlement shall be in writing on forms prescribed by
     1 18 the workers' compensation commissioner and submitted
     1 19 to the workers' compensation commissioner for
     1 20 approval.
     1 21    2.  The parties may enter into an agreement for
     1 22 settlement that establishes the employer's liability,
     1 23 fixes the nature and extent of the employee's current
     1 24 right to accrued benefits, and establishes the
     1 25 employee's right to statutory benefits that accrue in
     1 26 the future.
     1 27    3.  The parties may enter into a compromise
     1 28 settlement of the employee's claim to benefits as a
     1 29 full and final disposition of the claim.
     1 30    4.  The parties may enter into a settlement that is
     1 31 a combination of an agreement for settlement and a
     1 32 compromise settlement that establishes the employer's
     1 33 liability for part of a claim but makes a full and
     1 34 final disposition of other parts of a claim.
     1 35    5.  A contingent settlement may be made and
     1 36 approved, conditioned upon subsequent approval by a
     1 37 court or governmental agency, or upon any other
     1 38 subsequent event that is expected to occur within one
     1 39 year from the date of the settlement.  If the
     1 40 subsequent approval or event does not occur, the
     1 41 contingent settlement and its approval may be vacated
     1 42 by order of the workers' compensation commissioner
     1 43 upon a petition for vacation filed by one of the
     1 44 parties or upon agreement by all parties.  If a
     1 45 contingent settlement is vacated, the running of any
     1 46 period of limitation provided for in section 85.26 is
     1 47 tolled from the date the settlement was initially
     1 48 approved until the date that the settlement is
     1 49 vacated, and the claim is restored to the status that
     1 50 the claim held when the contingent settlement was
     2  1 initially approved.  The contingency on a settlement
     2  2 lapses and the settlement becomes final and fully
     2  3 enforceable if an action to vacate the contingent
     2  4 settlement or to extend the period of time allowed for
     2  5 the subsequent approval or event to occur is not
     2  6 initiated within one year from the date that the
     2  7 contingent settlement was initially approved.
     2  8    6.  The parties may agree that settlement proceeds,
     2  9 which are paid in a lump sum, are intended to
     2 10 compensate the injured worker at a given monthly or
     2 11 weekly rate over the life expectancy of the injured
     2 12 worker.  If such an agreement is reached, neither the
     2 13 weekly compensation rate which either has been paid,
     2 14 or should have been paid, throughout the case, nor the
     2 15 maximum statutory weekly rate applicable to the injury
     2 16 shall apply.  Instead, the rate set forth in the
     2 17 settlement agreement shall be the rate for the case.
     2 18    The settlement shall not be approved unless
     2 19 evidence of a bona fide dispute exists concerning any
     2 20 of the following:
     2 21    1.  The claimed injury arose out of or in the
     2 22 course of the employment.
     2 23    2.  The injured employee gave notice under section
     2 24 85.23.
     2 25    3.  Whether or not the statutes of limitations as
     2 26 provided in section 85.26 have run.  When the issue
     2 27 involved is whether or not the statute of limitations
     2 28 of section 85.26, subsection 2, has run, the final
     2 29 disposition shall pertain to the right to weekly
     2 30 compensation unless otherwise provided for in
     2 31 subsection 7 of this section.
     2 32    4.  The injury was caused by the employee's willful
     2 33 intent to injure the employee's self or to willfully
     2 34 injure another.
     2 35    5.  Intoxication, which did not arise out of and in
     2 36 the course of employment but which was due to the
     2 37 effects of alcohol or another narcotic, depressant,
     2 38 stimulant, hallucinogenic, or hypnotic drug not
     2 39 prescribed by an authorized medical practitioner, was
     2 40 a substantial factor in causing the employee's injury.
     2 41    6.  The injury was caused by the willful act of a
     2 42 third party directed against the employee for reasons
     2 43 personal to such employee.
     2 44    7.  This chapter or chapter 85A, 85B, 86 or 87
     2 45 applies to the party making the claim.
     2 46    8.  A substantial portion of the claimed disability
     2 47 is related to physical or mental conditions other than
     2 48 those caused by the injury.
     2 49    7.  A settlement shall be approved by the workers'
     2 50 compensation commissioner if the parties show all of
     3  1 the following:
     3  2    a.  Substantial evidence exists to support the
     3  3 terms of the settlement.
     3  4    b.  Waiver of the employee's right to a hearing,
     3  5 decision, and statutory benefits is made knowingly by
     3  6 the employee.
     3  7    c.  The settlement is a reasonable and informed
     3  8 compromise of the competing interests of the parties.
     3  9    If an employee is represented by legal counsel, it
     3 10 is presumed that the required showing for approval of
     3 11 the settlement has been made.
     3 12    8.  Approval of a settlement by the workers'
     3 13 compensation commissioner shall be is binding on the
     3 14 parties and shall not be construed as an original
     3 15 proceeding.  Notwithstanding any provisions of this
     3 16 chapter and chapters 85A, 85B, 86, and 87, an approved
     3 17 compromise settlement shall constitute a final bar to
     3 18 any further rights arising under this chapter and
     3 19 chapters 85A, 85B, 86, and 87.  Such regarding the
     3 20 subject matter of the compromise and a payment made
     3 21 pursuant to a compromise settlement agreement shall
     3 22 not be construed as the payment of weekly
     3 23 compensation.>
     3 24 #2.  Page 2, by inserting after line 1 the
     3 25 following:
     3 26    <Sec.    .  Section 85.71, Code 2005, is amended by
     3 27 adding the following new subsection:
     3 28    NEW SUBSECTION.  5.  The employer has a place of
     3 29 business in Iowa, and the employee is working under a
     3 30 contract of hire which provides that the employee's
     3 31 workers' compensation claims be governed by Iowa law.
     3 32    Sec.    .  Section 86.24, subsection 4, Code 2005,
     3 33 is amended to read as follows:
     3 34    4.  A transcript of a contested case proceeding
     3 35 shall be provided by an appealing party at the party's
     3 36 cost and an affidavit shall be filed by the appealing
     3 37 party or the party's attorney with the workers'
     3 38 compensation commissioner within ten days after the
     3 39 filing of the appeal to the workers' compensation
     3 40 commissioner stating that the transcript has been
     3 41 ordered and identifying the name and address of the
     3 42 reporter or reporting firm from which the transcript
     3 43 has been ordered.
     3 44    Sec.    .  Section 87.14A, Code 2005, is amended to
     3 45 read as follows:
     3 46    87.14A  INSURANCE OR BOND REQUIRED.
     3 47    An employer subject to this chapter and chapters
     3 48 85, 85A, 85B, and 86 shall not engage in business
     3 49 without first obtaining insurance covering
     3 50 compensation benefits or obtaining relief from
     4  1 insurance as provided in this chapter or furnishing a
     4  2 bond pursuant to section 87.16.  A person who
     4  3 willfully and knowingly violates this section is
     4  4 guilty of a class "D" felony.
     4  5    Sec.    .  Section 87.19, unnumbered paragraph 1,
     4  6 Code 2005, is amended to read as follows:
     4  7    Upon the receipt of information by the workers'
     4  8 compensation commissioner of any employer failing to
     4  9 comply with sections 87.16 and 87.17 section 87.14A,
     4 10 the commissioner shall at once notify such employer by
     4 11 certified mail that unless such employer comply with
     4 12 the requirements of law, legal proceedings will be
     4 13 instituted to enforce such compliance.
     4 14    Sec.    .  Section 87.20, Code 2005, is amended to
     4 15 read as follows:
     4 16    87.20  REVOCATION OF RELEASE FROM INSURANCE.
     4 17    The insurance commissioner with the concurrence of
     4 18 the workers' compensation commissioner may, at any
     4 19 time, upon reasonable notice to such employer and upon
     4 20 hearing, revoke for cause any order theretofore made
     4 21 relieving any employer from carrying insurance as
     4 22 provided by this chapter.>
     4 23 #3.  Page 2, by inserting after line 27 the
     4 24 following:
     4 25    <Sec.    .  Sections 87.16 and 87.17, Code 2005,
     4 26 are repealed.>
     4 27 #4.  Title page, by striking line 4, and inserting
     4 28 the following:  <and workers' compensation.>
     4 29 #5.  By renumbering as necessary.
     4 30
     4 31
     4 32                               
     4 33 STRUYK of Pottawattamie
     4 34 HF 702.501 81
     4 35 kh/pj/2305

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