H.F. _____ Section 1. Section 85.16, subsection 2, Code 2013, is 1 amended to read as follows: 2 2. a. By the employee’s intoxication, which did not arise 3 out of and in the course of employment but which was due 4 to the effects of alcohol or another narcotic, depressant, 5 stimulant, hallucinogenic, or hypnotic drug not prescribed by 6 an authorized medical practitioner, if the intoxication was a 7 substantial factor in causing the injury. 8 b. For the purpose of disallowing compensation under this 9 subsection, the following applies: 10 (1) If the employer shows that, at the time of the injury 11 or immediately following the injury, the employee had positive 12 test results reflecting the presence of alcohol, or another 13 narcotic, depressant, stimulant, hallucinogenic, or hypnotic 14 drug, which drug either was not prescribed by an authorized 15 medical practitioner or was not used in accordance with the 16 prescribed use of the drug, it shall be presumed that the 17 employee was intoxicated at the time of the injury and that 18 intoxication was a substantial factor in causing the injury. 19 (2) Once the employer has made a showing as provided 20 in subparagraph (1), the burden of proof shall be on the 21 employee to establish that the employee was not intoxicated 22 at the time of the injury, or that intoxication was not a 23 substantial factor in causing the injury, in order to overcome 24 the presumption. 25 Sec. 2. Section 85.23, Code 2013, is amended to read as 26 follows: 27 85.23 Notice of injury —— failure to give. 28 Unless the employer or the employer’s representative shall 29 have actual knowledge of the occurrence of an injury received 30 within ninety days from the date of the occurrence of the 31 injury, or unless the employee or someone on the employee’s 32 behalf or a dependent or someone on the dependent’s behalf 33 shall give notice thereof to the employer within ninety days 34 from the date of the occurrence of the injury, no compensation 35 -1- LSB 1854YC (9) 85 av/rj 1/ 11

H.F. _____ shall be allowed. For the purposes of this section, “date of 1 the occurrence of the injury” means the date that the employee 2 knew or should have known that the injury was work-related. 3 Sec. 3. Section 85.26, subsection 1, Code 2013, is amended 4 to read as follows: 5 1. An original proceeding for benefits under this chapter 6 or chapter 85A , 85B , or 86 , shall not be maintained in any 7 contested case unless the proceeding is commenced within two 8 years from the date of the occurrence of the injury for which 9 benefits are claimed or, if weekly compensation benefits are 10 paid under section 86.13 , within three years from the date of 11 the last payment of weekly compensation benefits. For the 12 purposes of this subsection, “date of the occurrence of the 13 injury” means the date that the employee knew or should have 14 known that the injury was work-related. 15 Sec. 4. Section 85.27, subsection 2, Code 2013, is amended 16 to read as follows: 17 2. a. Any employee, employer or insurance carrier making 18 or defending a claim for benefits agrees to the release of all 19 information to which the employee, employer, or carrier has 20 access concerning the employee’s physical or mental condition 21 relative to the claim and further waives any privilege for the 22 release of the information. The information shall be made 23 available to any party or the party’s representative upon 24 request. Any institution or person releasing the information 25 to a party or the party’s representative shall not be liable 26 criminally or for civil damages by reason of the release of 27 the information. If release of information is refused the 28 party requesting the information may apply to the workers’ 29 compensation commissioner for relief. The information 30 requested shall be submitted to the workers’ compensation 31 commissioner who shall determine the relevance and materiality 32 of the information to the claim and enter an order accordingly. 33 b. For the purposes of this subsection, information 34 concerning surveillance conducted of an employee or the written 35 -2- LSB 1854YC (9) 85 av/rj 2/ 11

H.F. _____ or electronic record of such surveillance does not constitute 1 information that is subject to the requirements of paragraph 2 “a” . Information concerning surveillance of an employee or 3 the written or electronic record of such surveillance is 4 not required to be made available to a party or the party’s 5 representative until ten days after the information or record 6 of surveillance is made available to a medical provider or 7 expert for consideration in the treatment or evaluation of the 8 employee or until twenty days before hearing, if the party 9 possessing the information or record of surveillance intends to 10 introduce the information or record of surveillance as evidence 11 at hearing. 12 Sec. 5. Section 85.34, subsection 2, paragraph u, Code 2013, 13 is amended to read as follows: 14 u. In all cases of permanent partial disability other than 15 those hereinabove described or referred to in paragraphs “a” 16 through “t” hereof, the compensation shall be paid during 17 the number of weeks in relation to five hundred weeks as the 18 reduction in the employee’s earning capacity caused by the 19 disability bears in relation to the earning capacity that the 20 employee possessed when the injury occurred. A determination 21 of the reduction in the employee’s earning capacity caused by 22 the disability shall take into account the permanent partial 23 disability of the employee and the number of future years 24 reasonably anticipated that the employee would work at the time 25 of the injury. If an employee who is eligible for benefits 26 under this paragraph returns to work or is offered work for 27 which the employee receives or would receive the same or 28 greater salary, wages, or earnings than the employee received 29 at the time of the injury, the employee shall be compensated 30 only based upon the employee’s functional disability resulting 31 from the injury, and not in relation to the employee’s earning 32 capacity. 33 Sec. 6. Section 85.34, subsection 3, Code 2013, is amended 34 by adding the following new paragraph: 35 -3- LSB 1854YC (9) 85 av/rj 3/ 11

H.F. _____ NEW PARAGRAPH . c. An employee shall not be awarded 1 compensation for permanent total disability under this 2 subsection if the employee is receiving a salary, wages, or 3 earnings from an employer, payments for services rendered 4 by the employee, payments representing the employee’s share 5 of profits of a privately held corporation, or unemployment 6 compensation benefits. 7 Sec. 7. Section 85.34, subsection 5, Code 2013, is amended 8 to read as follows: 9 5. Recovery of employee overpayment. If an employee is paid 10 any weekly benefits for an injury in excess of that required 11 by this chapter and chapters 85A , 85B , and 86 , the excess paid 12 by the employer shall be credited first against the liability 13 of the employer for any future weekly benefits due pursuant to 14 subsection 2 , for a that injury, and then for any future weekly 15 benefits due pursuant to subsection 2 for subsequent injury 16 to the same employee. An overpayment can be established only 17 when the overpayment is recognized in a settlement agreement 18 approved under section 86.13 , pursuant to final agency action 19 in a contested case which was commenced within three years from 20 the date that weekly benefits were last paid for the claim 21 for which the benefits were overpaid, or pursuant to final 22 agency action in a contested case for a prior injury to the 23 same employee. The credit shall remain available for eight 24 years after the date the overpayment was established. If an 25 overpayment is established pursuant to this subsection , the 26 employee and employer may enter into a written settlement 27 agreement providing for the repayment by the employee of the 28 overpayment. The agreement is subject to the approval of the 29 workers’ compensation commissioner. The employer shall not 30 take any adverse action against the employee for failing to 31 agree to such a written settlement agreement. 32 Sec. 8. Section 85.34, subsection 7, Code 2013, is amended 33 by striking the subsection and inserting in lieu thereof the 34 following: 35 -4- LSB 1854YC (9) 85 av/rj 4/ 11

H.F. _____ 7. Successive disabilities. An employer is liable for 1 compensating only that portion of an employee’s disability that 2 arises out of and in the course of the employee’s employment 3 with the employer and that relates specifically to the injury, 4 event, or activity that is the basis for the employee’s 5 claim for benefits under this chapter or chapter 85A or 85B. 6 An employer is not liable for compensating an employee’s 7 preexisting disability that arose out of and in the course of 8 employment with a different employer, from a prior injury with 9 the same employer to the extent that the employee’s preexisting 10 disability has already been compensated under this chapter or 11 chapter 85A or 85B, or from causes unrelated to employment. 12 Sec. 9. Section 85.45, subsection 1, unnumbered paragraph 13 1, Code 2013, is amended to read as follows: 14 Future payments of compensation may be commuted to a present 15 worth lump sum payment only upon application of a party and 16 upon written consent of all parties to the proposed commutation 17 and on the following conditions: 18 Sec. 10. Section 85.61, subsection 7, unnumbered paragraph 19 1, Code 2013, is amended to read as follows: 20 The words “personal injury arising out of and in the course 21 of the employment” shall include injuries to employees whose 22 services are being performed on, in, or about the premises 23 which are occupied, used, or controlled by the employer, and 24 also injuries to those who are engaged elsewhere in places 25 where their employer’s business requires their presence and 26 subjects them to dangers incident to the business. For the 27 purposes of this subsection, an injury arises out of and in the 28 course of employment only when the employee’s work activities 29 are found to be a substantial factor in causing the injury. 30 Sec. 11. Section 85.71, subsection 1, paragraph a, Code 31 2013, is amended to read as follows: 32 a. The employer has a place of business in this state and 33 the employee regularly works at or from that place of business , 34 or the employer has a place of business in this state and the 35 -5- LSB 1854YC (9) 85 av/rj 5/ 11

H.F. _____ employee is domiciled in this state . 1 Sec. 12. Section 86.26, Code 2013, is amended to read as 2 follows: 3 86.26 Judicial review —— stay —— bond required . 4 1. Judicial review of decisions or orders of the workers’ 5 compensation commissioner may be sought in accordance 6 with chapter 17A . Notwithstanding chapter 17A , the Iowa 7 administrative procedure Act, petitions for judicial review 8 may be filed in the district court of the county in which the 9 hearing under section 86.17 was held, the workers’ compensation 10 commissioner shall transmit to the reviewing court the original 11 or a certified copy of the entire record of the contested case 12 which is the subject of the petition within thirty days after 13 receiving written notice from the party filing the petition 14 that a petition for judicial review has been filed, and an 15 application for stay of agency action during the pendency of 16 judicial review shall not be filed in the division of workers’ 17 compensation of the department of workforce development 18 but shall be filed with the district court. Such a review 19 proceeding shall be accorded priority over other matters 20 pending before the district court. 21 2. Notwithstanding section 17A.19, subsection 5, a timely 22 petition for judicial review filed pursuant to this section 23 shall stay execution or enforcement of a decision or order of 24 the workers’ compensation commissioner if the party seeking 25 judicial review posts a bond securing the award with the 26 district court within thirty days of filing the petition, in a 27 reasonable amount as the court shall fix and approve. Unless 28 the party posting the bond objects within twenty days from 29 the posting of the bond that the amount of the bond is not 30 reasonable or the party whose interests are protected by the 31 bond objects within twenty days from the posting of the bond to 32 the amount of the bond by filing an objection with the district 33 court, the amount of the bond shall be deemed reasonable and 34 adequate. If, upon objection, the district court orders the 35 -6- LSB 1854YC (9) 85 av/rj 6/ 11

H.F. _____ amount of the bond to be modified, the party seeking judicial 1 review shall repost the bond in the amount ordered within 2 twenty days of the date of the order modifying the bond, to 3 continue the stay of execution or enforcement of the decision 4 or order. 5 Sec. 13. Section 86.42, Code 2013, is amended to read as 6 follows: 7 86.42 Judgment by district court on award. 8 Any party in interest may present a file-stamped copy 9 of an order or decision of the commissioner, from which a 10 timely petition for judicial review has not been filed or if 11 judicial review has been filed, which has not had execution or 12 enforcement stayed as provided in section 17A.19, subsection 13 5 86.26, subsection 2 , or an order or decision of a deputy 14 commissioner from which a timely appeal has not been taken 15 within the agency and which has become final by the passage of 16 time as provided by rule and section 17A.15 , or an agreement 17 for settlement approved by the commissioner, and all papers 18 in connection therewith, to the district court where judicial 19 review of the agency action may be commenced. The court shall 20 render a decree or judgment and cause the clerk to notify the 21 parties. The decree or judgment, in the absence of a petition 22 for judicial review or if judicial review has been commenced, 23 in the absence of a stay of execution or enforcement of the 24 decision or order of the workers’ compensation commissioner 25 as provided in section 86.26, subsection 2 , or in the absence 26 of an act of any party which prevents a decision of a deputy 27 workers’ compensation commissioner from becoming final, has the 28 same effect and in all proceedings in relation thereto is the 29 same as though rendered in a suit duly heard and determined by 30 the court. 31 EXPLANATION 32 This bill makes various changes to laws relating to workers’ 33 compensation benefits and procedures. 34 Code section 85.16(2) is amended to include a presumption 35 -7- LSB 1854YC (9) 85 av/rj 7/ 11

H.F. _____ that an employee was intoxicated at the time of an injury and 1 that intoxication was a substantial factor in causing the 2 injury, if the employer demonstrates that the employee had 3 positive test results at the time of the injury, or immediately 4 after the injury, reflecting the presence of alcohol or 5 drugs that were either not prescribed by an authorized 6 medical practitioner, or were not used in accordance with the 7 prescribed use of the drug. Once the employer makes such 8 a showing, the burden of proof shifts to the employee to 9 establish that the employee was not intoxicated at the time of 10 the injury or that intoxication was not a substantial factor 11 in causing the injury. 12 Code section 85.23 is amended to provide that for purposes of 13 the requirement that an employee notify the employer within 90 14 days from the date of the occurrence of an injury, “date of the 15 occurrence of the injury” means the date that the employee knew 16 or should have known that the injury was work-related. 17 Code section 85.26(1) is amended to provide that for 18 purposes of the requirement that an original proceeding for 19 workers’ compensation benefits must be commenced within two 20 years from the date of the occurrence of the injury, “date of 21 the occurrence of the injury” means the date that the employee 22 knew or should have known that the injury was work-related. 23 Code section 85.27(2) is amended to provide that information 24 concerning surveillance conducted of an employee or the written 25 or electronic record of such surveillance does not constitute 26 information concerning the employee’s physical or mental 27 condition that must be released upon request to any party 28 as currently required. Information concerning surveillance 29 or the written or electronic record of surveillance is not 30 required to be made available to a party until 10 days after 31 the information or record of surveillance is made available 32 to a medical provider or expert for consideration in the 33 treatment or evaluation of the employee or until 20 days before 34 hearing, if the party possessing the information or record of 35 -8- LSB 1854YC (9) 85 av/rj 8/ 11

H.F. _____ surveillance intends to introduce the information or record as 1 evidence at hearing. 2 Code section 85.34(2)(u), relating to compensation of an 3 employee who has permanent partial disability of the body 4 as a whole, requires a determination of the reduction in 5 the employee’s earning capacity caused by the disability in 6 relation to the earning capacity that the employee possessed 7 when the injury occurred. This provision is amended to provide 8 that a determination of the reduction in the employee’s earning 9 capacity caused by the disability must take into account the 10 permanent partial disability of the employee and the number of 11 years it was reasonably anticipated that the employee would 12 continue to work at the time of the injury. If an employee who 13 is eligible for benefits under this provision returns to work 14 or is offered work for which the employee receives or would 15 receive the same or greater salary, wages, or earnings than 16 the employee received at the time of the injury, the employee 17 shall be compensated only based upon the employee’s functional 18 disability resulting from the injury, and not in relation to 19 the employee’s earning capacity. 20 Code section 85.34(3), relating to compensation for an 21 injury causing total disability, is amended to provide that 22 an employee shall not be awarded compensation for permanent 23 total disability if the employee is receiving a salary, wages, 24 or earnings from an employer, payments for services rendered 25 by the employee, payments representing the employee’s share 26 of profits of a privately held corporation, or unemployment 27 compensation benefits. 28 Code section 85.34(5) is amended to provide that if an 29 employee is paid any weekly benefits for an injury in excess of 30 that required by the workers’ compensation law, the excess paid 31 by the employer shall be credited first against the liability 32 of the employer for any future weekly benefits due for that 33 injury, and then for any future weekly benefits due for any 34 subsequent injury to the same employee. 35 -9- LSB 1854YC (9) 85 av/rj 9/ 11

H.F. _____ Code section 85.34(7) is amended to provide that in 1 the case of successive disabilities of an employee, an 2 employer is liable for compensating only that portion of the 3 employee’s disability that arises out of and in the course 4 of the employee’s employment with the employer and relates 5 specifically to the injury, event, or accident that is the 6 basis for the employee’s claim for benefits. An employer 7 is not liable for compensating an employee’s preexisting 8 disability that arose out of and in the course of employment 9 with a different employer, from a prior injury with the 10 same employer to the extent that the preexisting disability 11 has already been compensated, or for causes unrelated to 12 employment. 13 Code section 85.45(1) is amended to provide that future 14 payments of compensation may be commuted to a present worth 15 lump sum payment only upon application of a party and upon 16 written consent of all parties to the proposed commutation as 17 well as upon a finding of specified conditions. 18 Code section 85.61(7), which defines the words “personal 19 injury arising out of and in the course of the employment”, is 20 amended to include that, for purposes of this definition, an 21 injury arises out of and in the course of employment only when 22 the employee’s work activities are found to be a substantial 23 factor in causing the injury. 24 Code section 85.71 is amended to provide that Iowa workers’ 25 compensation law is not applicable when an employee is injured 26 while working outside the state for an employer who has a place 27 of business in this state and the employee domiciled in this 28 state. 29 Code section 86.26 is amended to provide that 30 notwithstanding the procedures for staying the execution or 31 enforcement of an agency action contained in Code chapter 17A, 32 the administrative procedures Act, the filing of a petition 33 for judicial review of a decision or order of the workers’ 34 compensation commissioner stays such execution or enforcement 35 -10- LSB 1854YC (9) 85 av/rj 10/ 11

H.F. _____ if the party seeking judicial review posts a bond securing the 1 award with the district court within 30 days of the filing 2 in a reasonable amount as the court shall fix and approve. 3 Unless the party posting the bond objects within 20 days that 4 the amount of the bond is not reasonable or the party whose 5 interests are protected by the bond objects within 20 days to 6 the amount of the bond, the bond shall be deemed reasonable 7 and adequate. If, upon objection, the district court modifies 8 the amount of the bond, the party seeking judicial review 9 shall repost the bond in the amount ordered within 20 days of 10 the date of the modification order, to continue the stay of 11 execution or enforcement. 12 Code section 86.42 is amended to provide that a party in 13 interest cannot obtain a judgment by the district court on an 14 award of workers’ compensation benefits contained in a decision 15 or order if a petition for judicial review has been filed and 16 there is a stay of execution or enforcement as provided in Code 17 section 86.26. 18 -11- LSB 1854YC (9) 85 av/rj 11/ 11