House Amendment 1638


PAG LIN




     1  1    Amend Senate File 342, as amended, passed, and
     1  2 reprinted by the Senate, as follows:
     1  3 #1.  Page 1, by striking lines 17 through 32.
     1  4 #2.  Page 2, by striking lines 18 through 34.
     1  5 #3.  By striking page 2, line 35, through page 3,
     1  6 line 30.
     1  7 #4.  By striking page 5, line 25, through page 6,
     1  8 line 16.
     1  9 #5.  By striking page 7, line 27, through page 8,
     1 10 line 9.
     1 11 #6.  Page 8, by striking lines 11 through 22.
     1 12 #7.  By striking page 9, line 18, through page 10,
     1 13 line 14.
     1 14 #8.  Page 10, by inserting before line 15, the
     1 15 following:
     1 16                      <DIVISION    
     1 17                       EMPLOYMENT
     1 18    Sec.    .  Section 22.7, Code 2005, is amended by
     1 19 adding the following new subsection:
     1 20    NEW SUBSECTION.  51.  Confidential information, as
     1 21 defined in section 86.45, subsection 1, filed with the
     1 22 workers' compensation commissioner.
     1 23    Sec.    .  Section 85.27, subsection 7, Code 2005,
     1 24 is amended to read as follows:
     1 25    7.  If, after the third day of incapacity to work
     1 26 following the date of sustaining a compensable injury
     1 27 which does not result in permanent partial disability,
     1 28 or if, at any time after sustaining a compensable
     1 29 injury which results in permanent partial disability,
     1 30 an employee, who is not receiving weekly benefits
     1 31 under section 85.33 or section 85.34, subsection 1,
     1 32 returns to work and is required to leave work for one
     1 33 full day or less to receive services pursuant to this
     1 34 section, the employee shall be paid an amount
     1 35 equivalent to the wages lost at the employee's regular
     1 36 rate of pay for the time the employee is required to
     1 37 leave work.  For the purposes of this subsection, "day
     1 38 of incapacity to work" means eight hours of
     1 39 accumulated absence from work due to incapacity to
     1 40 work or due to the receipt of services pursuant to
     1 41 this section.  The employer shall make the payments
     1 42 under this subsection as wages to the employee after
     1 43 making such deductions from the amount as legally
     1 44 required or customarily made by the employer from
     1 45 wages.  Payments made under this subsection shall be
     1 46 required to be reimbursed pursuant to any insurance
     1 47 policy covering workers' compensation.  Payments under
     1 48 this subsection shall not be construed to be payment
     1 49 of weekly benefits.
     1 50    Sec.    .  Section 85.35, Code 2005, is amended to
     2  1 read as follows:
     2  2    85.35  SETTLEMENT IN CONTESTED CASE SETTLEMENTS.
     2  3    1.  The parties to a contested case or persons who
     2  4 are involved in a dispute which could culminate in a
     2  5 contested case may enter into a settlement of any
     2  6 claim arising under this chapter or chapter 85A, 85B,
     2  7 or 86, providing for final disposition of the claim,
     2  8 provided that no final disposition affecting rights to
     2  9 future benefits may be had when the only dispute is
     2 10 the degree of disability resulting from an injury for
     2 11 which an award for payments or agreement for
     2 12 settlement under section 86.13 has been made.  The
     2 13 settlement shall be in writing on forms prescribed by
     2 14 the workers' compensation commissioner and submitted
     2 15 to the workers' compensation commissioner for
     2 16 approval.
     2 17    2.  The parties may enter into an agreement for
     2 18 settlement that establishes the employer's liability,
     2 19 fixes the nature and extent of the employee's current
     2 20 right to accrued benefits, and establishes the
     2 21 employee's right to statutory benefits that accrue in
     2 22 the future.
     2 23    3.  The parties may enter into a compromise
     2 24 settlement of the employee's claim to benefits as a
     2 25 full and final disposition of the claim.
     2 26    4.  The parties may enter into a settlement that is
     2 27 a combination of an agreement for settlement and a
     2 28 compromise settlement that establishes the employer's
     2 29 liability for part of a claim but makes a full and
     2 30 final disposition of other parts of a claim.
     2 31    5.  A contingent settlement may be made and
     2 32 approved, conditioned upon subsequent approval by a
     2 33 court or governmental agency, or upon any other
     2 34 subsequent event that is expected to occur within one
     2 35 year from the date of the settlement.  If the
     2 36 subsequent approval or event does not occur, the
     2 37 contingent settlement and its approval may be vacated
     2 38 by order of the workers' compensation commissioner
     2 39 upon a petition for vacation filed by one of the
     2 40 parties or upon agreement by all parties.  If a
     2 41 contingent settlement is vacated, the running of any
     2 42 period of limitation provided for in section 85.26 is
     2 43 tolled from the date the settlement was initially
     2 44 approved until the date that the settlement is
     2 45 vacated, and the claim is restored to the status that
     2 46 the claim held when the contingent settlement was
     2 47 initially approved.  The contingency on a settlement
     2 48 lapses and the settlement becomes final and fully
     2 49 enforceable if an action to vacate the contingent
     2 50 settlement or to extend the period of time allowed for
     3  1 the subsequent approval or event to occur is not
     3  2 initiated within one year from the date that the
     3  3 contingent settlement was initially approved.
     3  4    6.  The parties may agree that settlement proceeds,
     3  5 which are paid in a lump sum, are intended to
     3  6 compensate the injured worker at a given monthly or
     3  7 weekly rate over the life expectancy of the injured
     3  8 worker.  If such an agreement is reached, neither the
     3  9 weekly compensation rate which either has been paid,
     3 10 or should have been paid, throughout the case, nor the
     3 11 maximum statutory weekly rate applicable to the injury
     3 12 shall apply.  Instead, the rate set forth in the
     3 13 settlement agreement shall be the rate for the case.
     3 14    The settlement shall not be approved unless
     3 15 evidence of a bona fide dispute exists concerning any
     3 16 of the following:
     3 17    1.  The claimed injury arose out of or in the
     3 18 course of the employment.
     3 19    2.  The injured employee gave notice under section
     3 20 85.23.
     3 21    3.  Whether or not the statutes of limitations as
     3 22 provided in section 85.26 have run.  When the issue
     3 23 involved is whether or not the statute of limitations
     3 24 of section 85.26, subsection 2, has run, the final
     3 25 disposition shall pertain to the right to weekly
     3 26 compensation unless otherwise provided for in
     3 27 subsection 7 of this section.
     3 28    4.  The injury was caused by the employee's willful
     3 29 intent to injure the employee's self or to willfully
     3 30 injure another.
     3 31    5.  Intoxication, which did not arise out of and in
     3 32 the course of employment but which was due to the
     3 33 effects of alcohol or another narcotic, depressant,
     3 34 stimulant, hallucinogenic, or hypnotic drug not
     3 35 prescribed by an authorized medical practitioner, was
     3 36 a substantial factor in causing the employee's injury.
     3 37    6.  The injury was caused by the willful act of a
     3 38 third party directed against the employee for reasons
     3 39 personal to such employee.
     3 40    7.  This chapter or chapter 85A, 85B, 86 or 87
     3 41 applies to the party making the claim.
     3 42    8.  A substantial portion of the claimed disability
     3 43 is related to physical or mental conditions other than
     3 44 those caused by the injury.
     3 45    7.  A settlement shall be approved by the workers'
     3 46 compensation commissioner if the parties show all of
     3 47 the following:
     3 48    a.  Substantial evidence exists to support the
     3 49 terms of the settlement.
     3 50    b.  Waiver of the employee's right to a hearing,
     4  1 decision, and statutory benefits is made knowingly by
     4  2 the employee.
     4  3    c.  The settlement is a reasonable and informed
     4  4 compromise of the competing interests of the parties.
     4  5    If an employee is represented by legal counsel, it
     4  6 is presumed that the required showing for approval of
     4  7 the settlement has been made.
     4  8    8.  Approval of a settlement by the workers'
     4  9 compensation commissioner shall be is binding on the
     4 10 parties and shall not be construed as an original
     4 11 proceeding.  Notwithstanding any provisions of this
     4 12 chapter and chapters 85A, 85B, 86 and 87, an approved
     4 13 compromise settlement shall constitute a final bar to
     4 14 any further rights arising under this chapter and
     4 15 chapters 85A, 85B, 86, and 87.  Such regarding the
     4 16 subject matter of the compromise and a payment made
     4 17 pursuant to a compromise settlement agreement shall
     4 18 not be construed as the payment of weekly
     4 19 compensation.
     4 20    Sec.    .  Section 85.38, subsection 2, unnumbered
     4 21 paragraph 2, Code 2005, is amended to read as follows:
     4 22    If an employer denies liability under this chapter,
     4 23 chapter 85A, or chapter 85B, for payment for any
     4 24 medical services received or weekly compensation
     4 25 requested by an employee with a disability, and the
     4 26 employee is a beneficiary under either an individual
     4 27 or group plan for nonoccupational illness, injury, or
     4 28 disability, the nonoccupational plan shall not deny
     4 29 payment for the medical services received or for
     4 30 benefits under the plan on the basis that the
     4 31 employer's liability for the medical services under
     4 32 this chapter, chapter 85A, or chapter 85B is
     4 33 unresolved.
     4 34    Sec.    .  Section 85.71, Code 2005, is amended by
     4 35 adding the following new subsection:
     4 36    NEW SUBSECTION.  5.  The employer has a place of
     4 37 business in Iowa, and the employee is working under a
     4 38 contract of hire which provides that the employee's
     4 39 workers' compensation claims be governed by Iowa law.
     4 40    Sec.    .  Section 86.24, subsection 4, Code 2005,
     4 41 is amended to read as follows:
     4 42    4.  A transcript of a contested case proceeding
     4 43 shall be provided to the workers' compensation
     4 44 commissioner by an appealing party at the party's cost
     4 45 and an affidavit shall be filed by the appealing party
     4 46 or the party's attorney with the workers' compensation
     4 47 commissioner within ten days after the filing of the
     4 48 appeal to the workers' compensation commissioner
     4 49 stating that the transcript has been ordered and
     4 50 identifying the name and address of the reporter or
     5  1 reporting firm from which the transcript has been
     5  2 ordered.
     5  3    Sec.    .  NEW SECTION.  86.45  CONFIDENTIAL
     5  4 INFORMATION.
     5  5    1.  "Confidential information", for the purposes of
     5  6 this section, means all information that is filed with
     5  7 the workers' compensation commissioner as a result of
     5  8 an employee's injury or death that would allow the
     5  9 identification of the employee or the employee's
     5 10 dependents.  Confidential information includes first
     5 11 reports of injury and subsequent reports of claim
     5 12 activity.  Confidential information does not include
     5 13 pleadings, motions, decisions, opinions, or
     5 14 applications for settlement that are filed with the
     5 15 workers' compensation commissioner.
     5 16    2.  The workers' compensation commissioner shall
     5 17 not disclose confidential information except as
     5 18 follows:
     5 19    a.  Pursuant to the terms of a written waiver of
     5 20 confidentiality executed by the employee or the
     5 21 dependents of the employee whose information is filed
     5 22 with the workers' compensation commissioner.
     5 23    b.  To another governmental agency, or to an
     5 24 advisory, rating, or research organization, for the
     5 25 purpose of compiling statistical data, evaluating the
     5 26 state's workers' compensation system, or conducting
     5 27 scientific, medical, or public policy research, where
     5 28 such disclosure will not allow the identification of
     5 29 the employee or the employee's dependents.
     5 30    c.  To the employee or to the agent or attorney of
     5 31 the employee whose information is filed with the
     5 32 workers' compensation commissioner.
     5 33    d.  To the person or to the agent of the person who
     5 34 submitted the information to the workers' compensation
     5 35 commissioner.
     5 36    e.  To an agent, representative, attorney,
     5 37 investigator, consultant, or adjuster of an employer,
     5 38 or insurance carrier or third=party administrator of
     5 39 workers' compensation benefits, who is involved in
     5 40 administering a claim for such benefits related to the
     5 41 injury or death of the employee whose information is
     5 42 filed with the workers' compensation commissioner.
     5 43    f.  To all parties to a contested case proceeding
     5 44 before the workers' compensation commissioner in which
     5 45 the employee or a dependent of the employee, whose
     5 46 information is filed with the workers' compensation
     5 47 commissioner, is a party.
     5 48    g.  In compliance with a subpoena.
     5 49    h.  To an agent, representative, attorney,
     5 50 investigator, consultant, or adjuster of the employee,
     6  1 employer, or insurance carrier or third=party
     6  2 administrator of insurance benefits, who is involved
     6  3 in administering a claim for insurance benefits
     6  4 related to the injury or death of the employee whose
     6  5 information is filed with the workers' compensation
     6  6 commissioner.
     6  7    i.  To another governmental agency that is charged
     6  8 with the duty of enforcing liens or rights of
     6  9 subrogation or indemnity.
     6 10    3.  This section does not create a cause of action
     6 11 for a violation of its provisions against the workers'
     6 12 compensation commissioner or against the state or any
     6 13 governmental subdivision of the state.
     6 14    Sec.    .  Section 87.11, unnumbered paragraph 1,
     6 15 Code 2005, is amended to read as follows:
     6 16    When an employer coming under this chapter
     6 17 furnishes satisfactory proofs to the insurance
     6 18 commissioner of such employer's solvency and financial
     6 19 ability to pay the compensation and benefits as by law
     6 20 provided and to make such payments to the parties when
     6 21 entitled thereto, or when such employer deposits with
     6 22 the insurance commissioner security satisfactory to
     6 23 the insurance commissioner and the workers'
     6 24 compensation commissioner as guaranty for the payment
     6 25 of such compensation, such employer shall be relieved
     6 26 of the provisions of this chapter requiring insurance;
     6 27 but such employer shall, from time to time, furnish
     6 28 such additional proof of solvency and financial
     6 29 ability to pay as may be required by such insurance
     6 30 commissioner or workers' compensation commissioner.
     6 31 Such security shall be held in trust for the sole
     6 32 purpose of paying compensation and benefits and is not
     6 33 subject to attachment, levy, execution, garnishment,
     6 34 liens, or any other form of encumbrance.  However, the
     6 35 insurance commissioner shall be reimbursed from the
     6 36 security for all costs and fees incurred by the
     6 37 insurance commissioner in resolving disputes involving
     6 38 the security.  A political subdivision, including a
     6 39 city, county, community college, or school
     6 40 corporation, that is self=insured for workers'
     6 41 compensation is not required to submit a plan or
     6 42 program to the insurance commissioner for review and
     6 43 approval.
     6 44    Sec.    .  Section 87.14A, Code 2005, is amended to
     6 45 read as follows:
     6 46    87.14A  INSURANCE OR BOND REQUIRED.
     6 47    An employer subject to this chapter and chapters
     6 48 85, 85A, 85B, and 86 shall not engage in business
     6 49 without first obtaining insurance covering
     6 50 compensation benefits or obtaining relief from
     7  1 insurance as provided in this chapter or furnishing a
     7  2 bond pursuant to section 87.16.  A person who
     7  3 willfully and knowingly violates this section is
     7  4 guilty of a class "D" felony.
     7  5    Sec.    .  Section 87.19, unnumbered paragraph 1,
     7  6 Code 2005, is amended to read as follows:
     7  7    Upon the receipt of information by the workers'
     7  8 compensation commissioner of any employer failing to
     7  9 comply with sections 87.16 and 87.17 section 87.14A,
     7 10 the commissioner shall at once notify such employer by
     7 11 certified mail that unless such employer comply with
     7 12 the requirements of law, legal proceedings will be
     7 13 instituted to enforce such compliance.
     7 14    Sec.    .  Section 87.20, Code 2005, is amended to
     7 15 read as follows:
     7 16    87.20  REVOCATION OF RELEASE FROM INSURANCE.
     7 17    The insurance commissioner with the concurrence of
     7 18 the workers' compensation commissioner may, at any
     7 19 time, upon reasonable notice to such employer and upon
     7 20 hearing, revoke for cause any order theretofore made
     7 21 relieving any employer from carrying insurance as
     7 22 provided by this chapter.
     7 23    Sec.    .  Section 91A.3, subsection 3, Code 2005,
     7 24 is amended to read as follows:
     7 25    3.  The wages paid under subsection 1 shall be sent
     7 26 to the employee by mail or be paid at the employee's
     7 27 normal place of employment during normal employment
     7 28 hours or at a place and hour mutually agreed upon by
     7 29 the employer and employee, or the employee may elect
     7 30 to have the wages sent for direct deposit, on or by
     7 31 the regular payday of the employee, into a financial
     7 32 institution designated by the employee.  An employer
     7 33 shall not require a current employee to participate in
     7 34 direct deposit.  The employer may require, as a
     7 35 condition of hire, a new employee to sign up for
     7 36 direct deposit of the employee's wages in a financial
     7 37 institution of the employee's choice unless either of
     7 38 the following conditions exist:
     7 39    a.  The costs to the employee of establishing and
     7 40 maintaining an account for purposes of the direct
     7 41 deposit would effectively reduce the employee's wages
     7 42 to a level below the minimum wage provided under
     7 43 section 91D.1.
     7 44    b.  The provisions of a collective bargaining
     7 45 agreement mutually agreed upon by the employer and the
     7 46 employee organization prohibit the employer from
     7 47 requiring an employee to sign up for direct deposit as
     7 48 a condition of hire.
     7 49    Sec.    .  Section 91A.6, Code 2005, is amended by
     7 50 adding the following new subsection:
     8  1    NEW SUBSECTION.  4.  On each regular payday, the
     8  2 employer shall send to each employee by mail or shall
     8  3 provide at the employee's normal place of employment
     8  4 during normal employment hours a statement showing the
     8  5 hours the employee worked, the wages earned by the
     8  6 employee, and deductions made for the employee.  An
     8  7 employer who provides each employee access to view an
     8  8 electronic statement of the employee's earnings and
     8  9 provides the employee free and unrestricted access to
     8 10 a printer to print the employee's statement of
     8 11 earnings, if the employee chooses, is in compliance
     8 12 with this subsection.
     8 13    Sec.    .  Sections 87.16 and 87.17, Code 2005, are
     8 14 repealed.
     8 15    Sec.    .  EFFECTIVE DATE.  This division of this
     8 16 Act takes effect July 1, 2005.>
     8 17 #9.  Title page, line 1, by striking the word
     8 18 <appropriation> and inserting the following:
     8 19 <financial and regulatory>.
     8 20 #10.  Title page, line 2, by inserting after the
     8 21 figure <2004,> the following:  <making civil penalties
     8 22 applicable>.
     8 23 #11.  By renumbering, relettering, or redesignating
     8 24 and correcting internal references as necessary.
     8 25
     8 26
     8 27                               
     8 28 COMMITTEE ON APPROPRIATIONS
     8 29 DIX of Butler, Chairperson
     8 30 SF 342.305 81
     8 31 jp/cf/4971

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