SF 454 (LSB 2164XS (3) 91)

SENATE FILE 454

BY  TOWNSEND, TRONE GARRIOTT, DONAHUE, DOTZLER, WINCKLER, ZIMMER, BLAKE, WAHLS, and BISIGNANO

A BILL FOR

An Act relating to standards for determination of loss or permanent impairment for purposes of permanent partial disability under workers’ compensation and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 85.34, subsection 2, unnumbered paragraph 1, Code 2025, is amended to read as follows:
   Compensation for permanent partial disability shall begin when it is medically indicated that maximum medical improvement from the injury has been reached and that the extent of loss or percentage of permanent impairment can be determined by use of the most recent annual update to the most recent edition of the guides to the evaluation of permanent impairment, published by the American medical association, as adopted by the workers’ compensation commissioner by rule pursuant to chapter 17A. The compensation shall be in addition to the benefits provided by sections 85.27 and 85.28. The compensation shall be based upon the extent of the disability and upon the basis of eighty percent per week of the employee’s average spendable weekly earnings, but not more than a weekly benefit amount, rounded to the nearest dollar, equal to one hundred eighty-four percent of the statewide average weekly wage paid employees as determined by the department of workforce development under section 96.1A, subsection 35, and in effect at the time of the injury. The minimum weekly benefit amount shall be equal to the weekly benefit amount of a person whose gross weekly earnings are thirty-five percent of the statewide average weekly wage. For all cases of permanent partial disability, compensation shall be paid as follows:
    Sec. 2.  Section 85.34, subsection 2, paragraph x, Code 2025, is amended to read as follows:
   x.  In all cases of permanent partial disability described in paragraphs “a” through “u”, or paragraph “v” when determining functional disability and not loss of earning capacity, the extent of loss or percentage of permanent impairment shall be determined solely by utilizing the most recent annual update to the most recent edition of the guides to the evaluation of permanent impairment, published by the American medical association, as adopted by the workers’ compensation commissioner by rule pursuant to chapter 17A. Lay testimony or agency expertise shall not be utilized in determining loss or percentage of permanent impairment pursuant to paragraphs “a” through “u”, or paragraph “v” when determining functional disability and not loss of earning capacity.
    Sec. 3.  APPLICABILITY.  This Act applies to determinations of extent of loss or percentage of permanent impairment for purposes of section 85.34, subsection 2, occurring on or after the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, determinations of extent of loss or percentage of permanent impairment for purposes of permanent partial disability under workers’ compensation use the guides to the evaluation of permanent impairment published by the American medical association, as adopted by the workers’ compensation commissioner by rule. This bill specifies that the most recent annual update to the most recent edition of the guides shall be used. The bill strikes the requirement that the workers’ compensation commissioner adopt the guides by rule.
   The workers’ compensation commissioner has adopted the fifth edition of the guides, published in 2001, by rule. The most recent annual update to the most recent edition of the guides is currently the 2024 update to the sixth edition.
   The bill applies to determinations of extent of loss or percentage of permanent impairment for purposes of permanent partial disability under workers’ compensation occurring on or after the effective date of the bill.