House File 2532 - Introduced
HOUSE FILE
BY R. OLSON
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act pertaining to workers' compensation laws by regulating
2 insurance policy inclusions, debt collection practices,
3 calculation of weekly benefits of certain employees, liability
4 for employees of certain contractors, and timely payment of
5 benefits by insurers.
6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 85.1, subsection 6, Code 2005, is
1 2 amended to read as follows:
1 3 6. Employers may with respect to an employee or a
1 4 classification of employees exempt from coverage provided by
1 5 this chapter pursuant to subsection 1, 2, or 3, 4, or 5, other
1 6 than the employee or classification of employees with respect
1 7 to whom a rule of liability or a method of compensation is
1 8 established by the Congress of the United States, assume a
1 9 liability for compensation imposed upon employers by this
1 10 chapter, for the benefit of employees within the coverage of
1 11 this chapter, by the purchase of valid workers' compensation
1 12 insurance that does not specifically including exclude the
1 13 employee or classification of employees. The purchase of and
1 14 acceptance by an employer of valid workers' compensation
1 15 insurance applicable to the employee or classification of
1 16 employees constitutes an assumption by the employer of
1 17 liability without any further act on the part of the employer,
1 18 but only with respect to the employee or classification of
1 19 employees as are within the coverage of the workers'
1 20 compensation insurance contract and only for the time period
1 21 in which the insurance contract is in force. Upon an election
1 22 of such coverage, the employee or classification of employees
1 23 shall accept compensation in the manner provided by this
1 24 chapter and the employer shall be relieved from any other
1 25 liability for recovery of damage, or other compensation for
1 26 injury.
1 27 Sec. 2. Section 85.27, subsection 6, Code Supplement 2005,
1 28 is amended to read as follows:
1 29 6. While a contested case proceeding for determination of
1 30 liability for workers' compensation benefits is pending before
1 31 the workers' compensation commissioner relating to an injury
1 32 alleged to have given rise to treatment, no debt collection,
1 33 as defined by section 537.7102, shall be undertaken against an
1 34 employee or the employee's dependents for the collection of
1 35 charges for that treatment rendered an employee by any health
2 1 service provider. If debt collection is undertaken after a
2 2 creditor receives actual notice that a contested case
2 3 proceeding for determination of liability for workers'
2 4 compensation benefits is pending, such debt collection shall
2 5 constitute a prohibited practice under section 537.7103, and
2 6 the employee or the employee's dependents are entitled to the
2 7 remedies provided in section 537.5201. However, the health
2 8 service provider may send one itemized written bill to the
2 9 employee setting forth the amount of the charges in connection
2 10 with the treatment after notification of the contested case
2 11 proceeding.
2 12 Sec. 3. Section 85.33, subsection 4, Code 2005, is amended
2 13 to read as follows:
2 14 4. If an employee is entitled to temporary partial
2 15 benefits under subsection 3 of this section, the employer for
2 16 whom the employee was working at the time of injury shall pay
2 17 to the employee weekly compensation benefits, as provided in
2 18 section 85.32, for and during the period of temporary partial
2 19 disability. The temporary partial benefit shall be sixty=six
2 20 and two=thirds percent of the difference between the
2 21 employee's weekly earnings at the time of injury, computed in
2 22 compliance with section 85.36, and the employee's actual gross
2 23 weekly income from employment during the period of temporary
2 24 partial disability. If at the time of injury an employee is
2 25 paid on the basis of the output of the employee, with a
2 26 minimum guarantee pursuant to a written employment agreement,
2 27 the minimum guarantee shall be used as the employee's weekly
2 28 earnings at the time of injury. However, the weekly
2 29 compensation benefits shall not exceed the payments to which
2 30 the employee would be entitled under section 85.36 or section
2 31 85.37, or under subsection 1 of this section.
2 32 Sec. 4. Section 85.61, subsection 2, Code Supplement 2005,
2 33 is amended to read as follows:
2 34 2. a. "Employer" includes and applies to a person, firm,
2 35 association, or corporation, state, county, municipal
3 1 corporation, school corporation, area education agency,
3 2 township as an employer of volunteer fire fighters, volunteer
3 3 emergency rescue technicians, and emergency medical care
3 4 providers only, benefited fire district, and the legal
3 5 representatives of a deceased employer. "Employer" includes
3 6 and applies to a rehabilitation facility approved for
3 7 purchase=of=service contracts or for referrals by the
3 8 department of human services or the department of education.
3 9 b. "Employer" also includes and applies to an eligible
3 10 postsecondary institution as defined in section 261C.3,
3 11 subsection 1, a school corporation, or an accredited nonpublic
3 12 school if a student enrolled in the eligible postsecondary
3 13 institution, school corporation, or accredited nonpublic
3 14 school is providing unpaid services under a school=to=work
3 15 program that includes, but is not limited to, the components
3 16 provided for in section 258.10, subsection 2, paragraphs "a"
3 17 through "f". However, if a student participating in a school=
3 18 to=work program is participating in open enrollment under
3 19 section 282.18, "employer" means the receiving district.
3 20 "Employer" also includes and applies to a community college as
3 21 defined in section 260C.2, if a student enrolled in the
3 22 community college is providing unpaid services under a school=
3 23 to=work program that includes, but is not limited to, the
3 24 components provided for in section 258.10, subsection 2,
3 25 paragraphs "a" through "f", and that is offered by the
3 26 community college pursuant to a contractual agreement with a
3 27 school corporation or accredited nonpublic school to provide
3 28 the program. If a student participating in a school=to=work
3 29 program that includes, but is not limited to, the components
3 30 provided for in section 258.10, subsection 2, paragraphs "a"
3 31 through "f", is paid for services provided under the program,
3 32 "employer" means any entity otherwise defined as an employer
3 33 under this subsection which pays the student for providing
3 34 services under the program.
3 35 c. "Employer" also includes and applies to a person who
4 1 contracts with a contractor for purposes of the person's trade
4 2 or business and the person shall be subject to the
4 3 jurisdiction of the workers' compensation commissioner and to
4 4 all of the provisions of this chapter and chapters 85B, 86,
4 5 and 87, as to all personal injuries sustained by employees of
4 6 the contractor arising out of and in the course of performance
4 7 of the contract with the person, if the contractor has failed
4 8 to insure the contractor's workers' compensation liability or
4 9 to obtain relief from insurance as provided in chapter 87. A
4 10 person who pays benefits pursuant to this paragraph is
4 11 considered to be the employer of the contractor's employees
4 12 for purposes of the exclusive remedy provisions of sections
4 13 85.3 and 85.20, and for purposes of the subrogation and
4 14 indemnity provisions of section 85.22. A person who pays
4 15 benefits to the employees of a contractor pursuant to this
4 16 paragraph is entitled to be indemnified, with interest, by the
4 17 contractor. A person shall not be charged a premium for
4 18 workers' compensation insurance for coverage of a contractor's
4 19 employees if the person holds a current certificate of
4 20 insurance or self=insurance showing that the contractor with
4 21 whom the person has a contract is in compliance with chapter
4 22 87.
4 23 Sec. 5. Section 87.8, unnumbered paragraph 1, Code 2005,
4 24 is amended to read as follows:
4 25 An insurer shall pay, when due, all benefits and
4 26 compensation for which the insured is liable under this
4 27 state's workers' compensation laws, regardless of whether the
4 28 insured has reimbursed the insurer for any deductible due
4 29 under the policy of insurance. No policy of insurance issued
4 30 under this chapter shall contain any provision relieving the
4 31 insurer from payment if the insured becomes insolvent or
4 32 discharged in bankruptcy during the period that the policy is
4 33 in operation, or the compensation, or any part of it, is
4 34 unpaid.
4 35 Sec. 6. Section 537.7103, Code Supplement 2005, is amended
5 1 by adding the following new subsection:
5 2 NEW SUBSECTION. 7. A debt collector shall not collect or
5 3 attempt to collect charges from an employee or an employee's
5 4 dependents for treatment rendered the employee by any health
5 5 service provider, after receiving actual notice that a
5 6 contested case proceeding for determination of liability of
5 7 workers' compensation benefits is pending as provided in
5 8 section 85.27, subsection 6.
5 9 EXPLANATION
5 10 Code section 85.1, subsection 6, is amended to provide that
5 11 an employer assumes liability for workers' compensation
5 12 coverage of certain domestic, casual, and agricultural
5 13 employees that are exempt from workers' compensation
5 14 requirements, by purchasing coverage that does not
5 15 specifically exclude them. The bill also provides that an
5 16 employer cannot assume liability for workers' compensation
5 17 coverage of police officers and firefighters who are entitled
5 18 to benefits under Code chapters 410 and 411, and certain
5 19 officers of a corporation other than a family farm corporation
5 20 who voluntarily reject workers' compensation coverage.
5 21 Currently, any employee exempt from workers' compensation
5 22 requirements under this section is covered under a workers'
5 23 compensation insurance policy only if the policy specifically
5 24 includes the employee.
5 25 Code section 85.27, subsection 6, and Code section 537.7103
5 26 are amended to provide that debt collection for charges
5 27 rendered to an employee by a health services provider that is
5 28 undertaken after a creditor receives actual notice that a
5 29 contested case proceeding for determination of liability for
5 30 workers' compensation benefits is pending, constitutes a
5 31 prohibited practice under the Iowa consumer credit code and
5 32 entitles the employee or the employee's dependents to the
5 33 remedies provided by the Iowa consumer credit code.
5 34 Code section 85.33, subsection 4, is amended to remove a
5 35 provision allowing an injured employee paid on the basis of
6 1 output, with a minimum written guarantee, to be paid weekly
6 2 workers' compensation temporary partial disability benefits
6 3 using the minimum guarantee as the employee's weekly earnings
6 4 at the time of injury.
6 5 Code section 85.61, subsection 2, is amended to provide
6 6 that an "employer" for purposes of workers' compensation laws
6 7 includes a person who contracts with a contractor for purposes
6 8 of the person's trade or business. The bill provides that
6 9 such a person is liable for all personal injuries sustained by
6 10 employees of the contractor arising out of and in the
6 11 performance of the contract with the person, if the contractor
6 12 has failed to insure its workers' compensation liability. The
6 13 bill provides that a person who is liable for such workers'
6 14 compensation benefits is considered to be the employer of the
6 15 contractor's employees for purposes of exclusive remedy
6 16 provisions and subrogation and indemnity provisions. The bill
6 17 also provides that such a person is entitled to be indemnified
6 18 with interest by the contractor for the cost of benefits paid
6 19 to the contractor's employees. The bill provides that a
6 20 person shall not be charged a premium for coverage of a
6 21 contractor's employees if the person holds a current
6 22 certificate showing that the contractor has complied with the
6 23 insurance or self=insurance requirements of Code chapter 87.
6 24 Code section 87.8 is amended to provide that an insurer
6 25 must pay all workers' compensation benefits when due,
6 26 regardless of whether the insured (the employer) has
6 27 reimbursed the insurer for any deductible due under the policy
6 28 of insurance.
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