Senate File 378 - Introduced



                                       SENATE FILE       
                                       BY  COMMITTEE ON BUSINESS AND
                                           LABOR RELATIONS

                                       (SUCCESSOR TO SSB 1050)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to workers' compensation liability insurance, the
  2    payment of certain weekly workers' compensation benefits, and
  3    workers' compensation settlements and filings, and providing
  4    for civil penalties.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 1208SV 81
  7 av/gg/14

PAG LIN



  1  1    Section 1.  Section 22.7, Code 2005, is amended by adding
  1  2 the following new subsections:
  1  3    NEW SUBSECTION.  51.  Confidential information, as defined
  1  4 in section 86.45, subsection 1, filed with the workers'
  1  5 compensation commissioner.
  1  6    NEW SUBSECTION.  52.  A report of issuance or cancellation
  1  7 of a policy of workers' compensation liability insurance made
  1  8 pursuant to section 87.1, subsection 4.
  1  9    Sec. 2.  Section 85.27, subsection 7, Code 2005, is amended
  1 10 to read as follows:
  1 11    7.  If, after the third day of incapacity to work following
  1 12 the date of sustaining a compensable injury which does not
  1 13 result in permanent partial disability, or if, at any time
  1 14 after sustaining a compensable injury which results in
  1 15 permanent partial disability, an employee, who is not
  1 16 receiving weekly benefits under section 85.33 or section
  1 17 85.34, subsection 1, returns to work and is required to leave
  1 18 work for one full day or less to receive services pursuant to
  1 19 this section, the employee shall be paid an amount equivalent
  1 20 to the wages lost at the employee's regular rate of pay for
  1 21 the time the employee is required to leave work.  For the
  1 22 purposes of this subsection, "day of incapacity to work" means
  1 23 eight hours of accumulated absence from work due to incapacity
  1 24 to work or due to the receipt of services pursuant to this
  1 25 section.  The employer shall make the payments under this
  1 26 subsection as wages to the employee after making such
  1 27 deductions from the amount as legally required or customarily
  1 28 made by the employer from wages.  Payments made under this
  1 29 subsection shall be required to be reimbursed pursuant to any
  1 30 insurance policy covering workers' compensation.  Payments
  1 31 under this subsection shall not be construed to be payment of
  1 32 weekly benefits.
  1 33    Sec. 3.  Section 85.35, Code 2005, is amended to read as
  1 34 follows:
  1 35    85.35  SETTLEMENT IN CONTESTED CASE SETTLEMENTS.
  2  1    1.  The parties to a contested case or persons who are
  2  2 involved in a dispute which could culminate in a contested
  2  3 case may enter into a settlement of any claim arising under
  2  4 this chapter or chapter 85A, 85B, or 86, providing for final
  2  5 disposition of the claim, provided that no final disposition
  2  6 affecting rights to future benefits may be had when the only
  2  7 dispute is the degree of disability resulting from an injury
  2  8 for which an award for payments or agreement for settlement
  2  9 under section 86.13 has been made.  The settlement shall be in
  2 10 writing on forms prescribed by the workers' compensation
  2 11 commissioner and submitted to the workers' compensation
  2 12 commissioner for approval.
  2 13    2.  The parties may enter into an agreement for settlement
  2 14 that establishes the employer's liability, fixes the nature
  2 15 and extent of the employee's current right to accrued
  2 16 benefits, and establishes the employee's right to statutory
  2 17 benefits that accrue in the future.
  2 18    3.  The parties may enter into a compromise settlement of
  2 19 the employee's claim to benefits as a full and final
  2 20 disposition of the claim.
  2 21    4.  The parties may enter into a settlement that is a
  2 22 combination of an agreement for settlement and a compromise
  2 23 settlement that establishes the employer's liability for part
  2 24 of a claim but makes a full and final disposition of other
  2 25 parts of a claim.
  2 26    5.  A contingent settlement may be made and approved,
  2 27 conditioned upon subsequent approval by a court or
  2 28 governmental agency, or upon any other subsequent event that
  2 29 is expected to occur within one year from the date of the
  2 30 settlement.  If the subsequent approval or event does not
  2 31 occur, the contingent settlement and its approval may be
  2 32 vacated by order of the workers' compensation commissioner
  2 33 upon a petition for vacation filed by one of the parties or
  2 34 upon agreement by all parties.  If a contingent settlement is
  2 35 vacated, the running of any period of limitation provided for
  3  1 in section 85.26 is tolled from the date the settlement was
  3  2 initially approved until the date that the settlement is
  3  3 vacated, and the claim is restored to the status that the
  3  4 claim held when the contingent settlement was initially
  3  5 approved.  The contingency on a settlement lapses and the
  3  6 settlement becomes final and fully enforceable if an action to
  3  7 vacate the contingent settlement or to extend the period of
  3  8 time allowed for the subsequent approval or event to occur is
  3  9 not initiated within one year from the date that the
  3 10 contingent settlement was initially approved.
  3 11    6.  The parties may agree that settlement proceeds, which
  3 12 are paid in a lump sum, are intended to compensate the injured
  3 13 worker at a given monthly or weekly rate over the life
  3 14 expectancy of the injured worker.  If such an agreement is
  3 15 reached, neither the weekly compensation rate which either has
  3 16 been paid, or should have been paid, throughout the case, nor
  3 17 the maximum statutory weekly rate applicable to the injury
  3 18 shall apply.  Instead, the rate set forth in the settlement
  3 19 agreement shall be the rate for the case.
  3 20    The settlement shall not be approved unless evidence of a
  3 21 bona fide dispute exists concerning any of the following:
  3 22    1.  The claimed injury arose out of or in the course of the
  3 23 employment.
  3 24    2.  The injured employee gave notice under section 85.23.
  3 25    3.  Whether or not the statutes of limitations as provided
  3 26 in section 85.26 have run.  When the issue involved is whether
  3 27 or not the statute of limitations of section 85.26, subsection
  3 28 2, has run, the final disposition shall pertain to the right
  3 29 to weekly compensation unless otherwise provided for in
  3 30 subsection 7 of this section.
  3 31    4.  The injury was caused by the employee's willful intent
  3 32 to injure the employee's self or to willfully injure another.
  3 33    5.  Intoxication, which did not arise out of and in the
  3 34 course of employment but which was due to the effects of
  3 35 alcohol or another narcotic, depressant, stimulant,
  4  1 hallucinogenic, or hypnotic drug not prescribed by an
  4  2 authorized medical practitioner, was a substantial factor in
  4  3 causing the employee's injury.
  4  4    6.  The injury was caused by the willful act of a third
  4  5 party directed against the employee for reasons personal to
  4  6 such employee.
  4  7    7.  This chapter or chapter 85A, 85B, 86 or 87 applies to
  4  8 the party making the claim.
  4  9    8.  A substantial portion of the claimed disability is
  4 10 related to physical or mental conditions other than those
  4 11 caused by the injury.
  4 12    7.  A settlement shall be approved by the workers'
  4 13 compensation commissioner if the parties show all of the
  4 14 following:
  4 15    a.  Substantial evidence exists to support the terms of the
  4 16 settlement.
  4 17    b. Waiver of the employee's right to a hearing, decision,
  4 18 and statutory benefits is made knowingly by the employee.
  4 19    c.  The settlement is a reasonable and informed compromise
  4 20 of the competing interests of the parties.
  4 21    If an employee is represented by legal counsel, it is
  4 22 presumed that the required showing for approval of the
  4 23 settlement has been made.
  4 24    8.  Approval of a settlement by the workers' compensation
  4 25 commissioner shall be is binding on the parties and shall not
  4 26 be construed as an original proceeding.  Notwithstanding any
  4 27 provisions of this chapter and chapters 85A, 85B, 86 and 87,
  4 28 an approved compromise settlement shall constitute a final bar
  4 29 to any further rights arising under this chapter and chapters
  4 30 85A, 85B, 86, and 87.  Such regarding the subject matter of
  4 31 the compromise and a payment made pursuant to a compromise
  4 32 settlement agreement shall not be construed as the payment of
  4 33 weekly compensation.
  4 34    Sec. 4.  Section 86.24, subsection 4, Code 2005, is amended
  4 35 to read as follows:
  5  1    4.  A transcript of a contested case proceeding shall be
  5  2 provided by an appealing party at the party's cost and an
  5  3 affidavit shall be filed by the appealing party or the party's
  5  4 attorney with the workers' compensation commissioner within
  5  5 ten days after the filing of the appeal to the workers'
  5  6 compensation commissioner stating that the transcript has been
  5  7 ordered and identifying the name and address of the reporter
  5  8 or reporting firm from which the transcript has been ordered.
  5  9    Sec. 5.  NEW SECTION.  86.45  CONFIDENTIAL INFORMATION.
  5 10    1.  "Confidential information", for the purposes of this
  5 11 section, means all information that is filed with the workers'
  5 12 compensation commissioner as a result of an employee's injury
  5 13 or death that would allow the identification of the employee
  5 14 or the employee's dependents.  Confidential information
  5 15 includes first reports of injury and subsequent reports of
  5 16 claim activity.  Confidential information does not include
  5 17 pleadings, motions, decisions, opinions, or applications for
  5 18 settlement that are filed with the workers' compensation
  5 19 commissioner.
  5 20    2.  The workers' compensation commissioner shall not
  5 21 disclose confidential information except as follows:
  5 22    a.  Pursuant to the terms of a written waiver of
  5 23 confidentiality executed by the employee or the dependents of
  5 24 the employee whose information is filed with the workers'
  5 25 compensation commissioner.
  5 26    b.  To another governmental agency, or to an advisory,
  5 27 rating, or research organization, for the purpose of compiling
  5 28 statistical data, evaluating the state's workers' compensation
  5 29 system, or conducting scientific, medical, or public policy
  5 30 research, where such disclosure will not allow the
  5 31 identification of the employee or the employee's dependents.
  5 32    c.  To the employee or to the agent or attorney of the
  5 33 employee whose information is filed with the workers'
  5 34 compensation commissioner.
  5 35    d.  To the person or to the agent of the person who
  6  1 submitted the information to the workers' compensation
  6  2 commissioner.
  6  3    e.  To an agent, representative, attorney, investigator,
  6  4 consultant, or adjuster of an employer, or insurance carrier
  6  5 or third=party administrator of workers' compensation
  6  6 benefits, who is involved in administering a claim for such
  6  7 benefits related to the injury or death of the employee whose
  6  8 information is filed with the workers' compensation
  6  9 commissioner.
  6 10    f.  To all parties to a contested case proceeding before
  6 11 the workers' compensation commissioner in which the employee
  6 12 or a dependent of the employee, whose information is filed
  6 13 with the workers' compensation commissioner, is a party.
  6 14    g.  In compliance with a subpoena.
  6 15    h.  To an agent, representative, attorney, investigator,
  6 16 consultant, or adjuster of the employee, employer, or
  6 17 insurance carrier or third=party administrator of insurance
  6 18 benefits, who is involved in administering a claim for
  6 19 insurance benefits related to the injury or death of the
  6 20 employee whose information is filed with the workers'
  6 21 compensation commissioner.
  6 22    i.  To another governmental agency that is charged with the
  6 23 duty of enforcing liens or rights of subrogation or indemnity.
  6 24    3.  This section does not create a cause of action for a
  6 25 violation of its provisions against the workers' compensation
  6 26 commissioner or against the state or any governmental
  6 27 subdivision of the state.
  6 28    Sec. 6.  Section 87.1, Code 2005, is amended to read as
  6 29 follows:
  6 30    87.1  INSURANCE OF LIABILITY REQUIRED.
  6 31    1.  Every employer subject to the provisions of this and
  6 32 chapters 85, 85A, 85B, and 86, unless relieved therefrom as
  6 33 hereinafter provided, shall insure the employer's liability
  6 34 thereunder in some corporation, association, or organization
  6 35 approved by the commissioner of insurance.
  7  1    2.  A motor carrier who contracts with an owner=operator
  7  2 who is acting as an independent contractor pursuant to section
  7  3 85.61, subsection 13, shall not be required to insure the
  7  4 motor carrier's liability for the owner=operator.  A motor
  7  5 carrier may procure compensation liability insurance coverage
  7  6 for these owner=operators, and may charge the owner=operator
  7  7 for the costs of the premiums.  A motor carrier shall require
  7  8 the owner=operator to provide and maintain a certificate of
  7  9 workers' compensation insurance covering the owner=operator's
  7 10 employees.  An owner=operator shall remain responsible for
  7 11 providing compensation liability insurance for the owner=
  7 12 operator's employees.
  7 13    3.  Every such employer shall exhibit, on demand of the
  7 14 workers' compensation commissioner, evidence of the employer's
  7 15 compliance with this section; and if such employer refuses, or
  7 16 neglects to comply with this section, the employer shall be
  7 17 liable in case of injury to any worker in the employer's
  7 18 employ under the common law as modified by statute.
  7 19    4.  a.  Every insurer that issues a policy of workers'
  7 20 compensation liability insurance providing coverage required
  7 21 by this section shall, within thirty days after issuance and
  7 22 after subsequent cancellation of the policy, report such
  7 23 issuance or cancellation to the workers' compensation
  7 24 commissioner or to the commissioner's designee in the manner
  7 25 prescribed by the commissioner by rule.  Such report shall
  7 26 include the name and address of the insured employer; the name
  7 27 and address of the insurer that issued the policy; the
  7 28 effective date of the policy; the effective date of the
  7 29 cancellation, if applicable; any deductible included in the
  7 30 policy; and such other information as the commissioner
  7 31 requires by rule.
  7 32    b.  Notwithstanding chapter 22, a report of issuance or
  7 33 cancellation of a policy of workers' compensation liability
  7 34 insurance made pursuant to this subsection shall be kept
  7 35 confidential and is not subject to public examination or
  8  1 copying.  The workers' compensation commissioner or the
  8  2 commissioner's designee may publicly disclose information
  8  3 contained in such a report to persons other than the insured,
  8  4 the insurer, and persons servicing the policy, except that
  8  5 information relating to experience, payroll, loss data, the
  8  6 expiration date of the policy, and classification information
  8  7 shall not be publicly disclosed except as is reasonably
  8  8 necessary in the course of a regulatory investigation or
  8  9 enforcement action.
  8 10    c.  The absence of a report showing that a policy of
  8 11 workers' compensation liability insurance was issued to an
  8 12 employer and was in effect on a particular date creates a
  8 13 rebuttable presumption that such a policy was not issued or in
  8 14 effect on that date.
  8 15    d.  If an insurer fails to report the issuance or
  8 16 cancellation of a policy of workers' compensation liability
  8 17 insurance in the time and manner required by this subsection
  8 18 and by rule, the workers' compensation commissioner may assess
  8 19 a civil penalty against the insurer in the amount of one
  8 20 hundred dollars for each failure to report.  The commissioner
  8 21 may increase the civil penalty against the insurer to one
  8 22 thousand dollars for each failure to report if such failure is
  8 23 discovered in the course of a contested case proceeding that
  8 24 was filed against an employer because the employer appeared to
  8 25 be uninsured due to the absence of a report by the insurer
  8 26 showing that a policy of workers' compensation liability
  8 27 insurance was in effect for the employer.
  8 28    Sec. 7.  Section 87.11, unnumbered paragraph 1, Code 2005,
  8 29 is amended to read as follows:
  8 30    When an employer coming under this chapter furnishes
  8 31 satisfactory proofs to the insurance commissioner of such
  8 32 employer's solvency and financial ability to pay the
  8 33 compensation and benefits as by law provided and to make such
  8 34 payments to the parties when entitled thereto, or when such
  8 35 employer deposits with the insurance commissioner security
  9  1 satisfactory to the insurance commissioner and the workers'
  9  2 compensation commissioner as guaranty for the payment of such
  9  3 compensation, such employer shall be relieved of the
  9  4 provisions of this chapter requiring insurance; but such
  9  5 employer shall, from time to time, furnish such additional
  9  6 proof of solvency and financial ability to pay as may be
  9  7 required by such insurance commissioner or workers'
  9  8 compensation commissioner.  Such security shall be held in
  9  9 trust for the sole purpose of paying compensation and benefits
  9 10 and is not subject to attachment, levy, execution,
  9 11 garnishment, liens, or any other form of encumbrance.  A
  9 12 political subdivision, including a city, county, community
  9 13 college, or school corporation, that is self=insured for
  9 14 workers' compensation is not required to submit a plan or
  9 15 program to the insurance commissioner for review and approval.
  9 16    Sec. 8.  Section 87.11, unnumbered paragraph 3, Code 2005,
  9 17 is amended to read as follows:
  9 18    If an employer becomes insolvent and a debtor under 11
  9 19 U.S.C., on or after January 1, 1990, or ceases doing business,
  9 20 this paragraph applies.  The commissioner of insurance
  9 21 commissioner may request of the workers' compensation
  9 22 commissioner that all future payments of workers' compensation
  9 23 weekly benefits, medical expenses, or other payments pursuant
  9 24 to chapter 85, 85A, 85B, 86, or 87 be commuted to a present
  9 25 lump sum.  The workers' compensation commissioner shall fix
  9 26 the lump sum of probable future medical expenses and weekly
  9 27 compensation benefits, or other benefits payable pursuant to
  9 28 chapter 85, 85A, 85B, 86, or 87, capitalized at their present
  9 29 value upon the basis of interest at the rate provided in
  9 30 section 535.3 for court judgments and decrees.  If an employer
  9 31 ceases doing business without becoming insolvent, the
  9 32 insurance commissioner shall publish notice of the time and
  9 33 manner for filing claims against the employer in a newspaper
  9 34 of general circulation in the county or counties within this
  9 35 state where the employer is known to have maintained a place
 10  1 of business.  The notice shall be published in two series of
 10  2 publications.  The first series of publications shall be
 10  3 published once each week for three consecutive weeks as soon
 10  4 as reasonably practical after the date that the insurance
 10  5 commissioner becomes aware that the employer has ceased doing
 10  6 business.  The second series of publications shall be
 10  7 published once each week for three consecutive weeks within
 10  8 the period of one year before the time for filing claims
 10  9 expires.  Defects in the notice or publication shall not
 10 10 affect the period for filing claims against the employer or
 10 11 give rise to a claim against the insurance commissioner.  All
 10 12 claims that are not otherwise barred shall become barred if
 10 13 not filed within five years after the date the employer ceased
 10 14 doing business, as determined by the insurance commissioner,
 10 15 including claims for review reopening, benefits under section
 10 16 85.27, and latent injuries.  The insurance commissioner of
 10 17 insurance shall be discharged from all further liability for
 10 18 the commuted workers' compensation claim upon payment of the
 10 19 present lump sum to either the claimant, or a licensed insurer
 10 20 for purchase of an annuity or other periodic payment plan for
 10 21 the benefit of the claimant.
 10 22    Sec. 9.  Section 87.14A, Code 2005, is amended to read as
 10 23 follows:
 10 24    87.14A  INSURANCE OR BOND REQUIRED.
 10 25    An employer subject to this chapter and chapters 85, 85A,
 10 26 85B, and 86 shall not engage in business without first
 10 27 obtaining insurance covering compensation benefits or
 10 28 obtaining relief from insurance as provided in this chapter or
 10 29 furnishing a bond pursuant to section 87.16.  A person who
 10 30 willfully and knowingly violates this section is guilty of a
 10 31 class "D" felony.
 10 32    Sec. 10.  Section 87.19, unnumbered paragraph 1, Code 2005,
 10 33 is amended to read as follows:
 10 34    Upon the receipt of information by the workers'
 10 35 compensation commissioner of any employer failing to comply
 11  1 with sections 87.16 and 87.17 section 87.14A, the commissioner
 11  2 shall at once notify such employer by certified mail that
 11  3 unless such employer comply with the requirements of law,
 11  4 legal proceedings will be instituted to enforce such
 11  5 compliance.
 11  6    Sec. 11.  Section 87.20, Code 2005, is amended to read as
 11  7 follows:
 11  8    87.20  REVOCATION OF RELEASE FROM INSURANCE.
 11  9    The insurance commissioner with the concurrence of the
 11 10 workers' compensation commissioner may, at any time, upon
 11 11 reasonable notice to such employer and upon hearing, revoke
 11 12 for cause any order theretofore made relieving any employer
 11 13 from carrying insurance as provided by this chapter.
 11 14    Sec. 12.  Sections 87.16 and 87.17, Code 2005, are
 11 15 repealed.
 11 16                           EXPLANATION
 11 17    This bill contains various provisions relating to workers'
 11 18 compensation liability insurance, payment of certain weekly
 11 19 workers' compensation benefits, and workers' compensation
 11 20 settlements and filings.
 11 21    Code section 22.7 is amended to provide that confidential
 11 22 information, as defined in new Code section 86.45 in the bill,
 11 23 which is filed with the workers' compensation commissioner, is
 11 24 a confidential public record for purposes of this state's
 11 25 public records law.
 11 26    Code section 22.7 is also amended to provide that a report
 11 27 of issuance or cancellation of a policy of workers'
 11 28 compensation liability insurance which is filed with the
 11 29 workers' compensation commissioner, is a confidential public
 11 30 record for purposes of this state's public records law.
 11 31    Code section 85.27 is amended to provide that for purposes
 11 32 of paying lost wages pursuant to subsection 7, "day of
 11 33 incapacity to work" means eight hours of accumulated absence
 11 34 from work due to incapacity to work or due to the receipt of
 11 35 services pursuant to that section.
 12  1    Code section 85.35 is amended to modify settlement
 12  2 procedures for workers' compensation claims.  The bill
 12  3 provides that parties may enter into an agreement for
 12  4 settlement that establishes the employer's liability, fixes
 12  5 the nature and extent of the employee's rights to accrued
 12  6 benefits, and establishes the employee's right to statutory
 12  7 benefits that accrue in the future; a compromise settlement of
 12  8 an employee's claim to benefits that is a full and final
 12  9 disposition of the claim; or a settlement that is a
 12 10 combination of an agreement for settlement and a compromise
 12 11 settlement that establishes the employer's liability for part
 12 12 of a claim but makes a full and final disposition of other
 12 13 parts of a claim.
 12 14    Code section 85.35 is also amended to provide for a
 12 15 contingent settlement, which may be made and approved by the
 12 16 workers' compensation commissioner, conditioned upon
 12 17 subsequent approval by a court or governmental agency or upon
 12 18 any other event that is expected to occur within one year from
 12 19 the date of the settlement.  The bill provides that if the
 12 20 subsequent approval or event does not occur, the contingent
 12 21 settlement and its approval can be vacated by order of the
 12 22 workers' compensation commissioner upon a petition by one of
 12 23 the parties or upon agreement by all parties.  If such a
 12 24 contingent settlement is vacated, the running of any statute
 12 25 of limitations provided for in Code section 85.26 is
 12 26 considered to be stopped from the date that the contingent
 12 27 settlement was initially approved until the date that the
 12 28 settlement is vacated and the claim is then restored to the
 12 29 status that it held at the time the settlement was initially
 12 30 approved.  The contingency on a settlement lapses and the
 12 31 settlement becomes final and fully enforceable if an action to
 12 32 vacate the settlement or to extend the period of time allowed
 12 33 for the subsequent approval or event to occur is not initiated
 12 34 within one year from the date that the contingent settlement
 12 35 was initially approved.
 13  1    The bill strikes the requirement in Code section 85.35 that
 13  2 the parties produce evidence of a bona fide dispute before a
 13  3 final settlement can be approved by the workers' compensation
 13  4 commissioner.  The bill provides that a settlement cannot be
 13  5 approved unless the parties show that substantial evidence
 13  6 exists to support the terms of the settlement, waiver of the
 13  7 employee's right to a hearing, decision, and statutory
 13  8 benefits is made knowingly by the employee, and the settlement
 13  9 is a reasonable and informed compromise of the competing
 13 10 interests of the parties.  The bill also provides that if an
 13 11 employee is represented by legal counsel, it is presumed that
 13 12 the required showing has been made.
 13 13    The bill amends Code section 86.24, subsection 4, by
 13 14 eliminating the requirement that a party filing an appeal must
 13 15 file a notice of having ordered a transcript.
 13 16    The bill enacts new Code section 86.45, which defines
 13 17 "confidential information" to mean all information that is
 13 18 filed with the workers' compensation commissioner as a result
 13 19 of an employee's injury or death that would allow
 13 20 identification of the employee or the employee's dependents.
 13 21 "Confidential information" includes first reports of injury
 13 22 and subsequent reports of claim activity but does not include
 13 23 pleadings, motions, decisions, opinions, or applications for
 13 24 settlement that are filed with the workers' compensation
 13 25 commissioner.
 13 26    The bill provides that the workers' compensation
 13 27 commissioner shall not disclose such confidential information
 13 28 except pursuant to the terms of a written waiver of
 13 29 confidentiality executed by the employee or the dependents of
 13 30 the employee whose information is filed with the workers'
 13 31 compensation commissioner; to another governmental agency or
 13 32 to an advisory, rating, or research organization for the
 13 33 purpose of compiling statistical data, or conducting
 13 34 scientific, medical, or public policy research, where such
 13 35 disclosure will not allow identification of the employee or
 14  1 the employee's dependents; to the employee or to the agent or
 14  2 attorney of the employee whose information is filed with the
 14  3 workers' compensation commissioner; to the person or agent of
 14  4 the person who submitted the information to the workers'
 14  5 compensation commissioner; to an agent, representative,
 14  6 attorney, investigator, consultant, or adjuster of an
 14  7 employer, or insurance carrier or third=party administrator of
 14  8 workers' compensation benefits, who is involved in
 14  9 administering a claim for such benefits related to the injury
 14 10 or death of the employee whose information is filed with the
 14 11 workers' compensation commissioner; to all parties to a
 14 12 contested case proceeding before the workers' compensation
 14 13 commissioner in which the employee or a dependent of the
 14 14 employee, whose information is filed with the workers'
 14 15 compensation commissioner, is a party; in compliance with a
 14 16 subpoena; to an agent, representative, attorney, investigator,
 14 17 consultant, or adjuster of the employee, employer, or
 14 18 insurance carrier or third=party administrator of insurance
 14 19 benefits, who is involved in administering a claim for
 14 20 insurance benefits related to the injury or death of the
 14 21 employee whose information is filed with the workers'
 14 22 compensation commissioner; or to a governmental agency that is
 14 23 charged with a duty to enforce liens or rights of subrogation
 14 24 or indemnity.
 14 25    The bill also provides that new Code section 86.45 does not
 14 26 create a cause of action for a violation of its provisions
 14 27 against the workers' compensation commissioner or against the
 14 28 state or any governmental subdivision of the state.
 14 29    Code section 87.1 adds a new provision requiring every
 14 30 insurer that issues workers' compensation liability insurance
 14 31 policies to file a report with the workers' compensation
 14 32 commissioner within 30 days of the issuance or cancellation of
 14 33 such a policy.  The bill requires the reports to be kept
 14 34 confidential, notwithstanding the public records law in Code
 14 35 chapter 22.  The workers' compensation commissioner may
 15  1 publicly disclose some information contained in the reports
 15  2 except that information relating to experience, payroll, loss
 15  3 data, the policy's expiration date, or classification shall
 15  4 not be disclosed unless the disclosure of that information is
 15  5 reasonably necessary in the course of a regulatory
 15  6 investigation or enforcement action.  The bill also provides
 15  7 that the absence of such a report creates a rebuttable
 15  8 presumption that a policy of workers' compensation insurance
 15  9 was not issued to an employer or was not in effect on a
 15 10 particular date.
 15 11    An insurer who fails to report the issuance or cancellation
 15 12 of a workers' compensation insurance policy as required by the
 15 13 provision may be assessed a civil penalty by the workers'
 15 14 compensation commissioner in the amount of $100 for each
 15 15 failure to report and $1,000 for each failure to report if
 15 16 such failure is discovered in the course of a contested case
 15 17 proceeding that was filed against an employer because the
 15 18 employer appeared to be uninsured due to the absence of the
 15 19 report.
 15 20    Code section 87.11 is amended to provide that the amount of
 15 21 security deposited by a self=insured employer shall be
 15 22 determined by the insurance commissioner and not the workers'
 15 23 compensation commissioner and that the security is held in
 15 24 trust for the sole purpose of paying compensation and benefits
 15 25 and is not subject to attachment, levy, execution,
 15 26 garnishment, liens, or any other form of encumbrance.  The
 15 27 bill also provides that proof of solvency shall be given to
 15 28 the insurance commissioner, not the workers' compensation
 15 29 commissioner.
 15 30    Code section 87.11 is also amended to provide that if a
 15 31 self=insured employer ceases doing business without becoming
 15 32 insolvent, the insurance commissioner shall publish notice of
 15 33 the time and manner for filing claims against the employer as
 15 34 specified in the bill.  Defects in the notice or publication
 15 35 do not affect the period for filing claims against the
 16  1 employer or give rise to claims against the insurance
 16  2 commissioner and certain claims not otherwise barred become
 16  3 barred if not filed within five years after the date the
 16  4 employer ceased doing business, as determined by the insurance
 16  5 commissioner.
 16  6    Code section 87.14A is amended to remove the reference to
 16  7 the bonding requirements contained in Code section 87.16.
 16  8    Code section 87.19 is amended to provide that an employer
 16  9 that fails to comply with the provisions of Code chapters 85,
 16 10 85A, 85B, 86, and 87, as set forth in Code section 87.14A, may
 16 11 be subject to enforcement proceedings.
 16 12    The bill amends Code section 87.20 to provide that the
 16 13 insurance commissioner may revoke, for cause, an order
 16 14 relieving an employer from carrying insurance as required by
 16 15 Code chapter 87 without the concurrence of the workers'
 16 16 compensation commissioner.
 16 17    The bill repeals Code section 87.16, which requires an
 16 18 employer who has failed to carry workers' compensation
 16 19 insurance or to obtain relief from carrying such insurance, to
 16 20 furnish a bond approved by the workers' compensation
 16 21 commissioner.
 16 22    The bill also repeals Code section 87.17, which requires an
 16 23 employer to post a notice stating the nature of the security
 16 24 furnished in lieu of insurance to secure workers' compensation
 16 25 payments.
 16 26 LSB 1208SV 81
 16 27 av:rj/gg/14.1