House File 567 - Introduced HOUSE FILE 567 BY COMMITTEE ON LABOR (SUCCESSOR TO HSB 101) A BILL FOR An Act relating to stays of decrees or judgments in workers’ 1 compensation cases pending judicial review. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1779HV (1) 84 av/rj
H.F. 567 Section 1. Section 86.26, Code 2011, is amended to read as 1 follows: 2 86.26 Judicial review —— stays . 3 1. Judicial review of decisions or orders of the workers’ 4 compensation commissioner may be sought in accordance 5 with chapter 17A . Notwithstanding chapter 17A , the Iowa 6 administrative procedure Act, petitions for judicial review 7 may be filed in the district court of the county in which the 8 hearing under section 86.17 was held, the workers’ compensation 9 commissioner shall transmit to the reviewing court the original 10 or a certified copy of the entire record of the contested case 11 which is the subject of the petition within thirty days after 12 receiving written notice from the party filing the petition 13 that a petition for judicial review has been filed, and an 14 application for stay of agency action during the pendency of 15 judicial review shall not be filed in the division of workers’ 16 compensation of the department of workforce development 17 but shall be filed with the district court. Such a review 18 proceeding shall be accorded priority over other matters 19 pending before the district court. 20 2. If the commissioner’s order or decision that is the 21 subject of judicial review proceedings has been reduced to 22 a decree or judgment by the district court as provided in 23 section 86.42, upon application by any party seeking judicial 24 review, the district court shall enter a stay of execution 25 or enforcement of that decree or judgment enforcing the 26 commissioner’s order or decision provided that the party 27 seeking the stay does all of the following: 28 a. Identifies for the district court those parts of the 29 commissioner’s order or decision that are being contested on 30 judicial review. 31 b. Certifies to the district court that the party will 32 comply with the commissioner’s order or decision with respect 33 to those parts of the commissioner’s order or decision that 34 the party is not contesting on judicial review, including 35 -1- LSB 1779HV (1) 84 av/rj 1/ 5
H.F. 567 payment of all accrued or ongoing benefits which are not 1 being contested on judicial review, and provision of any 2 alternate medical care or ongoing medical care ordered by the 3 commissioner that is not being contested on judicial review. 4 c. Posts a supersedeas bond with the district court in an 5 amount and in the manner required by law or rule of court for 6 appeals arising from civil money judgments except as provided 7 in section 625A.9. The district court shall have the authority 8 to review the amount and sufficiency of the bond. 9 3. a. If a party contests on judicial review an order or 10 decision by the commissioner directing alternate medical care 11 or ongoing medical care pursuant to section 85.27, the district 12 court shall enter a stay of execution or enforcement of its 13 decree or judgment pertaining to such order or decision only 14 after weighing all of the following: 15 (1) The likelihood that the party seeking the stay will 16 prevail upon judicial review. 17 (2) The urgency of the ordered alternate or ongoing medical 18 care. 19 (3) The likelihood and magnitude of harm to the employee 20 from a delay in receiving the ordered alternate or ongoing 21 medical care. 22 (4) The employee’s ability to obtain the same or similar 23 alternate or ongoing medical care from another source. 24 b. The district court may order a hearing and take such 25 evidence as the district court deems appropriate in evaluating 26 an application for stay of enforcement or execution of a decree 27 or judgment pertaining to the commissioner’s order or decision 28 for alternate or ongoing medical care. 29 c. A denial of an application for a stay of enforcement or 30 execution of a decree or judgment pertaining to an order or 31 decision for alternate or ongoing medical care shall not affect 32 the stay of any other contested portion of the commissioner’s 33 order or decision during the pendency of the judicial review 34 proceedings. 35 -2- LSB 1779HV (1) 84 av/rj 2/ 5
H.F. 567 d. Upon application by any party and a showing of a material 1 change in circumstances regarding alternate or ongoing medical 2 care, the district court may modify its prior ruling as to a 3 stay of such alternate or ongoing medical care. 4 e. The party making the application for a stay or 5 modification of a stay for enforcement or execution of the 6 decree or judgment pertaining to the commissioner’s order or 7 decision for alternate or ongoing medical care shall bear the 8 burden of establishing the need for the stay or modification 9 of the stay. 10 4. Upon appeal from a final district court ruling on a 11 petition for judicial review, the stay of the enforcement or 12 execution of the decree or judgment shall remain in force until 13 such time as all appeals have been resolved, provided that the 14 party seeking the stay maintains an appropriate supersedeas 15 bond. 16 5. Upon application by any party, the district court may 17 modify the scope of the stay to encompass only those portions 18 of the decree or judgment pertaining to the commissioner’s 19 order or decision that are being contested in an appeal from a 20 final district court ruling on a petition for judicial review. 21 Sec. 2. Section 86.42, Code 2011, is amended to read as 22 follows: 23 86.42 Judgment by district court on award. 24 1. Any party in interest may present a file-stamped copy 25 of an order or decision of the commissioner, from which a 26 timely petition for judicial review has not been filed or if 27 judicial review has been filed, which has not had execution or 28 enforcement stayed as provided in section 17A.19, subsection 5 29 86.26 , or an order or decision of a deputy commissioner from 30 which a timely appeal has not been taken within the agency 31 and which has become final by the passage of time as provided 32 by rule and section 17A.15 , or an agreement for settlement 33 approved by the commissioner, and all papers in connection 34 therewith, to the district court where judicial review of the 35 -3- LSB 1779HV (1) 84 av/rj 3/ 5
H.F. 567 agency action may be commenced. The court shall render a 1 decree or judgment and cause the clerk to notify the parties. 2 2. The decree or judgment, in the absence of a petition 3 for judicial review or if judicial review has been commenced, 4 in the absence of a stay of execution or enforcement of the 5 decision or order of the workers’ compensation commissioner, or 6 in the absence of an act of any party which prevents a decision 7 of a deputy workers’ compensation commissioner from becoming 8 final, has the same effect and in all proceedings in relation 9 thereto is the same as though rendered in a suit duly heard and 10 determined by the court. 11 EXPLANATION 12 This bill relates to stays of execution or enforcement 13 of workers’ compensation orders or decisions that have been 14 reduced to a decree or judgment by the district court pending 15 judicial review. 16 The bill requires a district court to grant an application 17 for a stay of execution or enforcement of an order or decision 18 of the workers’ compensation commissioner that has been reduced 19 to a decree or judgment by the district court and is the 20 subject of judicial review proceedings if the applicant for 21 the stay identifies the parts of the commissioner’s order or 22 decision that are being contested on judicial review; certifies 23 to the court that the party will comply with those parts of 24 the commissioner’s order or decision that the party is not 25 contesting; and posts a supersedeas bond with the court in the 26 amount and in the manner required by law or court rules for 27 appeals arising from civil money judgments except as provided 28 in Code section 625A.9. 29 If a party is contesting on judicial review an order or 30 decision for alternate or ongoing medical care for an injured 31 employee, the district court shall enter a stay of enforcement 32 or execution of its decree or judgment pertaining to such 33 medical care only upon weighing the likelihood that the 34 party seeking the stay will prevail upon judicial review; the 35 -4- LSB 1779HV (1) 84 av/rj 4/ 5
H.F. 567 urgency of the ordered alternate or ongoing medical care; the 1 likelihood and magnitude of harm to the employee from a delay 2 in receiving the ordered medical care; and the employee’s 3 ability to obtain the same or similar medical care from another 4 source. 5 The district court may order a hearing to evaluate an 6 application for a stay of its decree or judgment pertaining to 7 an order or decision for alternate or ongoing medical care. 8 The denial of an application for such a stay does not affect 9 the stay of any other contested portion of the commissioner’s 10 order or decision during the pendency of the judicial review 11 proceedings. Upon application by any party, a ruling as to a 12 stay of a decree or judgment pertaining to an order or decision 13 for alternate or ongoing medical care may be modified upon a 14 showing of a material change in circumstances regarding the 15 medical care by the party requesting the modification. 16 Upon appeal from a final district court ruling on a petition 17 for judicial review, a stay remains in force until all appeals 18 have been resolved as long as the appropriate supersedeas 19 bond is maintained by the party seeking the stay. The stay 20 can also be modified to encompass only those portions of the 21 commissioner’s order or decision that are being contested in 22 an appeal from a final district court ruling on a petition for 23 judicial review. 24 Code section 86.42 is amended by changing an internal 25 reference to indicate that the applicable procedure to obtain 26 a stay of enforcement or execution of an order or decision of 27 the workers’ compensation commissioner that has been reduced 28 to a decree or judgment is now contained in Code section 86.26 29 instead of pursuant to the general procedure for obtaining 30 a stay contained in Code section 17A.17(5) of the Iowa 31 administrative procedure Act. 32 -5- LSB 1779HV (1) 84 av/rj 5/ 5