House File 2304

                                       HOUSE FILE       
                                       BY  COMMITTEE ON COMMERCE,
                                           REGULATION AND LABOR

                                       (SUCCESSOR TO HF 2027)


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

                                      A BILL FOR

  1 An Act relating to the provision of workers' compensation
  2    benefits, to the release of information concerning such
  3    benefits, and to workers' compensation liability insurance.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5406HV 80
  6 av/pj/5

PAG LIN

  1  1    Section 1.  Section 22.7, Code Supplement 2003, is amended
  1  2 by adding the following new subsection:
  1  3    NEW SUBSECTION.  48.  Confidential information filed with
  1  4 the workers' compensation commissioner as defined in section
  1  5 86.45, subsection 1.
  1  6    Sec. 2.  Section 85.27, subsection 7, Code 2003, is amended
  1  7 to read as follows:
  1  8    7.  If, after the third day of incapacity to work following
  1  9 the date of sustaining a compensable injury which does not
  1 10 result in permanent partial disability, or if, at any time
  1 11 after sustaining a compensable injury which results in
  1 12 permanent partial disability, an employee, who is not
  1 13 receiving weekly benefits under section 85.33 or section
  1 14 85.34, subsection 1, returns to work and is required to leave
  1 15 work for one full day or less to receive services pursuant to
  1 16 this section, the employee shall be paid an amount equivalent
  1 17 to the wages lost at the employee's regular rate of pay for
  1 18 the time the employee is required to leave work.  For the
  1 19 purposes of this subsection, "day of incapacity to work" means
  1 20 eight hours of accumulated absence from work due to incapacity
  1 21 to work or due to the receipt of services pursuant to this
  1 22 subsection.  The employer shall make the payments under this
  1 23 subsection as wages to the employee after making such
  1 24 deductions from the amount as legally required or customarily
  1 25 made by the employer from wages.  Payments made under this
  1 26 subsection shall be required to be reimbursed pursuant to any
  1 27 insurance policy covering workers' compensation.  Payments
  1 28 under this subsection shall not be construed to be payment of
  1 29 weekly benefits.
  1 30    Sec. 3.  Section 85.36, Code 2003, is amended by adding the
  1 31 following new subsection:
  1 32    NEW SECTION.  5A.  In the case of an employee who is
  1 33 employed pursuant to a contract for a specified period of
  1 34 time, but is paid on a pay period basis where the pay periods
  1 35 extend beyond the contract period, the employee's weekly gross
  2  1 earnings shall be computed by dividing the total amount paid
  2  2 to the employee pursuant to the contract by fifty=two.
  2  3    Sec. 4.  Section 85.38, subsection 2, Code 2003, is amended
  2  4 to read as follows:
  2  5    2.  CREDIT FOR BENEFITS PAID UNDER GROUP PLANS.  In the
  2  6 event the employee with a disability shall receive any
  2  7 benefits, including medical, surgical, or hospital benefits,
  2  8 under any group plan covering nonoccupational disabilities
  2  9 contributed to wholly or partially by the employer, which
  2 10 benefits should not have been paid or payable if any rights of
  2 11 recovery existed under this chapter, chapter 85A, or chapter
  2 12 85B, then the amounts so paid to the employee from the group
  2 13 plan shall be credited to or against any compensation
  2 14 payments, including medical, surgical, or hospital, made or to
  2 15 be made under this chapter, chapter 85A, or chapter 85B.  The
  2 16 amounts so credited shall be deducted from the payments made
  2 17 under these chapters.  Any nonoccupational plan shall be
  2 18 reimbursed in the amount deducted.  This section shall not
  2 19 apply to payments made under any group plan which would have
  2 20 been payable even though there was an injury under this
  2 21 chapter or an occupational disease under chapter 85A or an
  2 22 occupational hearing loss under chapter 85B.  Any employer
  2 23 receiving such credit shall keep the employee safe and
  2 24 harmless from any and all claims or liabilities that may be
  2 25 made against them by reason of having received the payments
  2 26 only to the extent of the credit.
  2 27    If an employer denies liability under this chapter, chapter
  2 28 85A, or chapter 85B, for payment for any medical services
  2 29 received or weekly compensation requested by an employee with
  2 30 a disability, and the employee is a beneficiary under either
  2 31 an individual or group plan for nonoccupational illness,
  2 32 injury, or disability, the nonoccupational plan shall not deny
  2 33 payment for the medical services received or benefits under
  2 34 the plan on the basis that the employer's liability for the
  2 35 medical services under this chapter, chapter 85A, or chapter
  3  1 85B is unresolved.
  3  2    Sec. 5.  NEW SECTION.  86.16  HEARINGS == SCHEDULING.
  3  3    Pursuant to rules adopted under chapter 17A, all contested
  3  4 cases before the workers' compensation commissioner shall be
  3  5 brought to issue and heard on a date that is no more than
  3  6 fourteen months from the date the original notice and petition
  3  7 is filed, except that a continuance for a hearing date later
  3  8 than fourteen months from the date of filing may be granted
  3  9 upon a showing of good cause.
  3 10    Sec. 6.  Section 86.24, subsection 4, Code 2003, is amended
  3 11 to read as follows:
  3 12    4.  A transcript of a contested case proceeding shall be
  3 13 provided by an appealing party at the party's cost and an
  3 14 affidavit shall be filed by the appealing party or the party's
  3 15 attorney with the workers' compensation commissioner within
  3 16 ten days after the filing of the appeal to the workers'
  3 17 compensation commissioner stating that the transcript has been
  3 18 ordered and identifying the name and address of the reporter
  3 19 or reporting firm from which the transcript has been ordered.
  3 20    Sec. 7.  NEW SECTION.  86.45  CONFIDENTIAL INFORMATION.
  3 21    1.  "Confidential information", for the purposes of this
  3 22 section, means all information that is filed with the workers'
  3 23 compensation commissioner as a result of an employee's injury
  3 24 or death that would allow the identification of the employee
  3 25 or the employee's dependents.  Confidential information
  3 26 includes first reports of injury and subsequent reports of
  3 27 claim activity.  Confidential information does not include
  3 28 pleadings, motions, decisions, opinions, or applications for
  3 29 settlement that are filed with the workers' compensation
  3 30 commissioner.
  3 31    2.  The workers' compensation commissioner shall not
  3 32 disclose confidential information except as follows:
  3 33    a.  Pursuant to the terms of a written waiver of
  3 34 confidentiality executed by the employee or the dependents of
  3 35 the employee whose information is filed with the workers'
  4  1 compensation commissioner.
  4  2    b.  To another governmental agency, or to an advisory,
  4  3 rating, or research organization, for the purpose of compiling
  4  4 statistical data, evaluating the state's workers' compensation
  4  5 system, or conducting scientific, medical, or public policy
  4  6 research, where such disclosure will not allow the
  4  7 identification of the employee or the employee's dependents.
  4  8    c.  To the employee or to the agent or attorney of the
  4  9 employee whose information is filed with the workers'
  4 10 compensation commissioner.
  4 11    d.  To the person or to the agent of the person who
  4 12 submitted the information to the workers' compensation
  4 13 commissioner.
  4 14    e.  To an agent, representative, attorney, investigator,
  4 15 consultant, or adjuster of an employer, or insurance carrier
  4 16 or third=party administrator of workers' compensation
  4 17 benefits, who is involved in administering a claim for such
  4 18 benefits related to the injury or death of the employee whose
  4 19 information is filed with the workers' compensation
  4 20 commissioner.
  4 21    f.  To all parties to a contested case proceeding before
  4 22 the workers' compensation commissioner in which the employee
  4 23 or a dependent of the employee, whose information is filed
  4 24 with the workers' compensation commissioner, is a party.
  4 25    g.  In compliance with a subpoena.
  4 26    h.  To an agent, representative, attorney, investigator,
  4 27 consultant, or adjuster of the employee, employer, or
  4 28 insurance carrier or third=party administrator of insurance
  4 29 benefits, who is involved in administering a claim for
  4 30 insurance benefits related to the injury or death of the
  4 31 employee whose information is filed with the workers'
  4 32 compensation commissioner.
  4 33    3.  This section does not create a cause of action for a
  4 34 violation of its provisions against the workers' compensation
  4 35 commissioner or against the state or any governmental
  5  1 subdivision of the state.
  5  2    Sec. 8.  Section 87.11, unnumbered paragraph 1, Code 2003,
  5  3 is amended to read as follows:
  5  4    When an employer coming under this chapter furnishes
  5  5 satisfactory proofs to the insurance commissioner of such
  5  6 employer's solvency and financial ability to pay the
  5  7 compensation and benefits as by law provided and to make such
  5  8 payments to the parties when entitled thereto, or when such
  5  9 employer deposits with the insurance commissioner security
  5 10 satisfactory to the insurance commissioner and the workers'
  5 11 compensation commissioner as guaranty for the payment of such
  5 12 compensation, such employer shall be relieved of the
  5 13 provisions of this chapter requiring insurance; but such
  5 14 employer shall, from time to time, furnish such additional
  5 15 proof of solvency and financial ability to pay as may be
  5 16 required by such insurance commissioner or workers'
  5 17 compensation commissioner.  Such security shall be held in
  5 18 trust for the sole purpose of paying compensation and benefits
  5 19 and is not subject to attachment, levy, execution,
  5 20 garnishment, liens, or any other form of encumbrance.  A
  5 21 political subdivision, including a city, county, community
  5 22 college, or school corporation, that is self=insured for
  5 23 workers' compensation is not required to submit a plan or
  5 24 program to the insurance commissioner for review and approval.
  5 25    Sec. 9.  Section 87.11, unnumbered paragraph 3, Code 2003,
  5 26 is amended to read as follows:
  5 27    If an employer becomes insolvent and a debtor under 11
  5 28 U.S.C., on or after January 1, 1990, or ceases doing business,
  5 29 this paragraph applies.  The commissioner of insurance
  5 30 commissioner may request of the workers' compensation
  5 31 commissioner that all future payments of workers' compensation
  5 32 weekly benefits, medical expenses, or other payments pursuant
  5 33 to chapter 85, 85A, 85B, 86, or 87 be commuted to a present
  5 34 lump sum.  The workers' compensation commissioner shall fix
  5 35 the lump sum of probable future medical expenses and weekly
  6  1 compensation benefits, or other benefits payable pursuant to
  6  2 chapter 85, 85A, 85B, 86, or 87, capitalized at their present
  6  3 value upon the basis of interest at the rate provided in
  6  4 section 535.3 for court judgments and decrees.  If an employer
  6  5 ceases doing business without becoming insolvent, the
  6  6 insurance commissioner shall publish notice of the time and
  6  7 manner for filing claims against the employer in a newspaper
  6  8 in general circulation in the county or counties within the
  6  9 state where the employer is known to have maintained a place
  6 10 of business.  The notice shall be published once each week for
  6 11 three consecutive weeks with the last publication not less
  6 12 than thirty days before the time for filing claims expires.
  6 13 Defects in the notice or publication shall not affect the
  6 14 period for filing claims against the employer or give rise to
  6 15 a claim against the insurance commissioner.  All claims that
  6 16 are not otherwise barred shall become barred if not filed
  6 17 within five years after the date the employer ceased doing
  6 18 business, as determined by the insurance commissioner,
  6 19 including claims for review reopening, benefits under section
  6 20 85.27, and latent injuries.  The commissioner of insurance
  6 21 commissioner shall be discharged from all further liability
  6 22 for the commuted workers' compensation claim upon payment of
  6 23 the present lump sum to either the claimant, or a licensed
  6 24 insurer for purchase of an annuity or other periodic payment
  6 25 plan for the benefit of the claimant.
  6 26    Sec. 10.  Section 87.14A, Code 2003, is amended to read as
  6 27 follows:
  6 28    87.14A  INSURANCE OR BOND REQUIRED.
  6 29    An employer subject to this chapter and chapters 85, 85A,
  6 30 85B, and 86 shall not engage in business without first
  6 31 obtaining insurance covering compensation benefits or
  6 32 obtaining relief from insurance as provided in this chapter or
  6 33 furnishing a bond pursuant to section 87.16.  A person who
  6 34 willfully and knowingly violates this section is guilty of a
  6 35 class "D" felony.
  7  1    Sec. 11.  Section 87.19, unnumbered paragraph 1, Code 2003,
  7  2 is amended to read as follows:
  7  3    Upon the receipt of information by the workers'
  7  4 compensation commissioner of any employer failing to comply
  7  5 with sections 87.16 and 87.17 section 87.14A, the commissioner
  7  6 shall at once notify such employer by certified mail that
  7  7 unless such employer comply with the requirements of law,
  7  8 legal proceedings will be instituted to enforce such
  7  9 compliance.
  7 10    Sec. 12.  Section 87.20, Code 2003, is amended to read as
  7 11 follows:
  7 12    87.20  REVOCATION OF RELEASE FROM INSURANCE.
  7 13    The insurance commissioner with the concurrence of the
  7 14 workers' compensation commissioner may, at any time, upon
  7 15 reasonable notice to such employer and upon hearing, revoke
  7 16 for cause any order theretofore made relieving any employer
  7 17 from carrying insurance as provided by this chapter.
  7 18    Sec. 13.  Sections 87.16 and 87.17, Code 2003, are
  7 19 repealed.
  7 20 HF 2304
  7 21 av/es/25