Senate Amendment to House File 2411 H-8393 Amend House File 2411, as passed by the House, as follows: 1 1. Page 1, after line 18 by inserting: 2 < Sec. ___. Section 85.27, subsection 5, Code 2022, is 3 amended to read as follows: 4 5. a. When an artificial member or orthopedic appliance, 5 whether or not previously furnished by the employer, is damaged 6 or made unusable by circumstances arising out of and in the 7 course of employment other than through ordinary wear and tear, 8 the employer shall repair or replace it. When any crutch, 9 artificial member or appliance, whether or not previously 10 furnished by the employer, either is damaged or made unusable 11 in conjunction with a personal injury entitling the employee to 12 disability benefits or services as provided by this section , 13 or is damaged in connection with employee actions taken which 14 avoid such personal injury, the employer shall repair or 15 replace it. 16 b. Subject to paragraph “a” but notwithstanding any other 17 provision of this section, an employer shall not be required 18 to provide for the repair or replacement of an employee’s 19 permanent prosthetic device if the employee has an account 20 credited to the employee pursuant to section 85.65, subsection 21 2, in relation to that permanent prosthetic device. 22 Sec. ___. Section 85.35, Code 2022, is amended by adding the 23 following new subsection: 24 NEW SUBSECTION . 7A. a. If an injury relating to a claim 25 results in the injured worker needing a medically necessary 26 permanent prosthetic device or an alteration of an existing 27 medically necessary permanent prosthetic device, a settlement 28 pursuant to this section must describe the medically necessary 29 permanent prosthetic device and identify which portion of 30 the settlement proceeds are for the purpose of covering the 31 estimated cost of future repair or replacement of the device. 32 b. Upon the approval of a settlement by the workers’ 33 compensation commissioner, moneys identified for the purpose 34 of covering the cost of future repair or replacement of a 35 -1- HF 2411.4633.S (1) 89 mb 1/ 6 #1.

permanent prosthetic device shall be paid to the treasurer 1 of state as the custodian of the second injury fund for 2 administration pursuant to section 85.65, subsection 2, section 3 85.66, and section 85.67A. 4 c. Notwithstanding any other provision of this chapter, 5 moneys identified for the purpose of covering the estimated 6 cost of future repair or replacement of a permanent prosthetic 7 device shall not be used to calculate an injured worker’s 8 compensation schedule. 9 Sec. ___. Section 85.45, Code 2022, is amended by adding the 10 following new subsection: 11 NEW SUBSECTION . 4. When commuting future payments pursuant 12 to this section, if the claim for workers’ compensation 13 benefits was related to an injury that resulted in the injured 14 worker needing a medically necessary permanent prosthetic 15 device or an alteration of an existing medically necessary 16 permanent prosthetic device, a portion of the lump sum payment 17 must be designated for the purpose of covering the estimated 18 cost of repair or replacement of the permanent prosthetic 19 device. Moneys identified pursuant to this subsection shall 20 be paid to the treasurer of state as custodian of the second 21 injury fund for administration pursuant to section 85.65, 22 subsection 2, section 85.66, and section 85.67A. 23 Sec. ___. Section 85.48, Code 2022, is amended to read as 24 follows: 25 85.48 Partial commutation. 26 1. When partial commutation is ordered, the workers’ 27 compensation commissioner shall fix the lump sum to be paid 28 at an amount which will equal the future payments for the 29 period commuted, capitalized at their present value upon the 30 basis of interest at the rate provided in section 535.3 for 31 court judgments and decrees. Provisions shall be made for the 32 payment of weekly compensation not included in the commutation 33 with all remaining payments to be paid over the same period 34 of time as though the commutation had not been made by either 35 -2- HF 2411.4633.S (1) 89 mb 2/ 6

eliminating weekly payments from the first or last part of the 1 payment period or by a pro rata reduction in the weekly benefit 2 amount over the entire payment period. 3 2. When commuting future payments pursuant to this 4 section, if the claim for workers’ compensation benefits was 5 related to an injury that resulted in the injured worker 6 needing a medically necessary permanent prosthetic device or 7 an alteration of an existing medically necessary permanent 8 prosthetic device, a portion of the lump sum payment must be 9 designated for the purposes of covering the estimated cost 10 of repair or replacement of the permanent prosthetic device. 11 Moneys identified pursuant to this subsection shall be paid to 12 the treasurer of state as custodian of the second injury fund 13 for administration pursuant to section 85.65, subsection 2, 14 section 85.66, and section 85.67A. 15 Sec. ___. Section 85.61, Code 2022, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 01. “Alteration” means a material change 18 to a permanent prosthetic device that is necessary due to an 19 employee’s injury, without which would not allow the injured 20 employee use of the prosthetic device as effectively as prior 21 to the injury. 22 Sec. ___. Section 85.65, Code 2022, is amended to read as 23 follows: 24 85.65 Payments to second injury fund. 25 1. The employer, or, if insured, the insurance carrier in 26 each case of compensable injury causing death, shall pay to 27 the treasurer of state for the second injury fund the sum of 28 twelve thousand dollars in a case where there are dependents 29 and forty-five thousand dollars in a case where there are no 30 dependents. The payment shall be made at the time compensation 31 payments are begun, or at the time the burial expenses are 32 paid in a case where there are no dependents. However, the 33 payments shall be required only in cases of injury resulting in 34 death coming within the purview of this chapter and occurring 35 -3- HF 2411.4633.S (1) 89 mb 3/ 6

after July 1, 1978. These payments shall be in addition to 1 any payments of compensation to injured employees or their 2 dependents, or of burial expenses as provided in this chapter . 3 2. a. The employer, or, if insured, the insurance carrier 4 shall pay to the treasurer of state for the second injury 5 fund the sum of moneys designated for the purpose of covering 6 the estimated cost of repair or replacement of a permanent 7 prosthetic device for an injured worker pursuant to section 8 85.35, 85.45, or 85.48. 9 b. (1) Upon receipt of moneys pursuant to paragraph “a” , 10 the treasurer of state shall credit the employee for the full 11 amount received. 12 (2) Moneys received by the treasurer of state pursuant to 13 this paragraph for a permanent prosthetic device that was not 14 medically necessary prior to an injury shall be credited to 15 the injured worker in a new account relating to that permanent 16 prosthetic device. 17 (3) Moneys received by the treasurer of state pursuant to 18 this paragraph for an existing permanent prosthetic device that 19 requires alteration due to an injury shall be credited to the 20 employee’s account relating to that prosthetic device if one 21 exists, or credited to a new account if one is not in existence 22 for that prosthetic device. 23 c. Moneys credited to an employee pursuant to this 24 subsection may only be used for the purposes designated in 25 section 85.67A and only in relation to the permanent prosthetic 26 device for which the account was created. 27 Sec. ___. Section 85.66, subsection 2, Code 2022, is amended 28 to read as follows: 29 2. The treasurer of state is charged with the conservation 30 of the assets of the second injury fund. Moneys collected in 31 the second injury fund shall be disbursed only for the purposes 32 stated in this subchapter , and shall not at any time be 33 appropriated or diverted to any other use or purpose. Except 34 for reimbursements to the attorney general provided for in 35 -4- HF 2411.4633.S (1) 89 mb 4/ 6

section 85.67 , disbursements Disbursements from the fund shall 1 only be paid by the treasurer of state only for reimbursements 2 pursuant to section 85.67, for payments pursuant to section 3 85.67A, or upon the written order of the workers’ compensation 4 commissioner. The treasurer of state shall invest any surplus 5 moneys of the fund in securities which constitute legal 6 investments for state funds under the laws of this state, and 7 may sell any of the securities in which the fund is invested, 8 if necessary, for the proper administration or in the best 9 interests of the fund. 10 Sec. ___. NEW SECTION . 85.67A Administration of fund —— 11 permanent prosthetic devices. 12 1. For the purposes of this section: 13 a. “Prosthetic device” or “device” means a permanent 14 prosthetic device for which an account has been established 15 pursuant to section 85.65, subsection 2. 16 b. “Prosthetics supplier” means a person or business who 17 makes or repairs permanent prosthetic devices. 18 c. “Voucher” means a written statement that identifies all 19 of the following: 20 (1) The prosthetic device requiring repair or replacement. 21 (2) Whether the device appears to require repair or 22 replacement and the reason the device requires repair or 23 replacement. 24 (3) The exact amount, including taxes, necessary to pay for 25 the repair or replacement of the device. 26 2. The treasurer of state shall pay moneys from an account 27 established pursuant to section 85.65, subsection 2, to 28 a prosthetics supplier for the replacement or repair of a 29 prosthetic device upon the receipt of a voucher. 30 3. a. If an employee dies prior to receiving all moneys 31 credited to the employee pursuant to section 85.65, subsection 32 2, the treasurer of state shall pay the remaining moneys to the 33 employer which originally contributed such moneys. 34 b. If an employer cannot be paid pursuant to paragraph 35 -5- HF 2411.4633.S (1) 89 mb 5/ 6

“a” , the treasurer of state shall pay remaining moneys to the 1 insurer named in relation to the claim from which the credits 2 arose. 3 c. If an employer or insurer cannot be paid pursuant 4 to paragraphs “a” and “b” , the treasurer of state shall pay 5 remaining moneys to the employee’s beneficiaries. 6 d. If the employee did not designate any beneficiaries, 7 remaining moneys shall be paid to the employee’s estate. 8 4. The labor commissioner and the commissioner of 9 insurance may adopt rules pursuant to chapter 17A to implement 10 this section. Such rules may include guidelines for which 11 prosthetics suppliers may provide a repair or replacement 12 for a prosthetic device, the form a voucher must take, and 13 information in addition to content described in subsection 1, 14 paragraph “c” , that must appear on a voucher. > 15 2. By renumbering as necessary. 16 -6- HF 2411.4633.S (1) 89 mb 6/ 6