House File 518 - Reprinted HOUSE FILE 518 BY COMMITTEE ON COMMERCE (SUCCESSOR TO HSB 169) (COMPANION TO LSB 1691SV BY COMMITTEE ON COMMERCE) (As Amended and Passed by the House March 16, 2017 ) A BILL FOR An Act relating to workers’ compensation and including 1 applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 HF 518 (2) 87 av/rj/md
H.F. 518 Section 1. Section 85.16, subsection 2, Code 2017, 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, both of the following apply: 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 overcome the presumption by establishing that the 22 employee was not intoxicated at the time of the injury, or 23 that intoxication was not a substantial factor in causing the 24 injury. 25 Sec. 2. Section 85.18, Code 2017, is amended to read as 26 follows: 27 85.18 Contract to relieve not operative. 28 No contract, rule, or device whatsoever shall operate to 29 relieve the employer, in whole or in part, from any liability 30 created by this chapter except as herein provided. This 31 section does not create a private cause of action. 32 Sec. 3. Section 85.23, Code 2017, is amended to read as 33 follows: 34 85.23 Notice of injury —— failure to give. 35 -1- HF 518 (2) 87 av/rj/md 1/ 16
H.F. 518 Unless the employer or the employer’s representative shall 1 have actual knowledge of the occurrence of an injury received 2 within ninety days from the date of the occurrence of the 3 injury, or unless the employee or someone on the employee’s 4 behalf or a dependent or someone on the dependent’s behalf 5 shall give notice thereof to the employer within ninety days 6 from the date of the occurrence of the injury, no compensation 7 shall be allowed. For the purposes of this section, “date of 8 the occurrence of the injury” means the date that the employee 9 knew or should have known that the injury was work-related. 10 Sec. 4. Section 85.26, subsection 1, Code 2017, is amended 11 to read as follows: 12 1. An original proceeding for benefits under this chapter 13 or chapter 85A , 85B , or 86 , shall not be maintained in any 14 contested case unless the proceeding is commenced within two 15 years from the date of the occurrence of the injury for which 16 benefits are claimed or, if weekly compensation benefits are 17 paid under section 86.13 , within three years from the date of 18 the last payment of weekly compensation benefits. For the 19 purposes of this section, “date of the occurrence of the injury” 20 means the date that the employee knew or should have known that 21 the injury was work-related. 22 Sec. 5. Section 85.33, subsection 3, Code 2017, is amended 23 to read as follows: 24 3. a. If an employee is temporarily, partially disabled 25 and the employer for whom the employee was working at the time 26 of injury offers to the employee suitable work consistent 27 with the employee’s disability the employee shall accept the 28 suitable work, and be compensated with temporary partial 29 benefits. If the employer offers the employee suitable work 30 and the employee refuses to accept the suitable work with 31 the same offered by the employer, the employee shall not be 32 compensated with temporary partial, temporary total, or healing 33 period benefits during the period of the refusal. Work offered 34 at the employer’s principal place of business or established 35 -2- HF 518 (2) 87 av/rj/md 2/ 16
H.F. 518 place of operation where the employee has previously worked is 1 presumed to be geographically suitable for an employee whose 2 duties involve travel away from the employer’s principal place 3 of business or established place of operation more than fifty 4 percent of the time. If suitable work is not offered by the 5 employer for whom the employee was working at the time of the 6 injury and the employee who is temporarily partially disabled 7 elects to perform work with a different employer, the employee 8 shall be compensated with temporary partial benefits. 9 b. The employer shall communicate an offer of temporary 10 work to the employee in writing, including details of lodging, 11 meals, and transportation, and shall communicate to the 12 employee that if the employee refuses the offer of temporary 13 work, the employee shall communicate the refusal and the reason 14 for the refusal to the employer in writing and that during the 15 period of the refusal the employee will not be compensated with 16 temporary partial, temporary total, or healing period benefits, 17 unless the work refused is not suitable. If the employee 18 refuses the offer of temporary work on the grounds that the 19 work is not suitable, the employee shall communicate the 20 refusal, along with the reason for the refusal, to the employer 21 in writing at the time the offer of work is refused. Failure to 22 communicate the reason for the refusal in this manner precludes 23 the employee from raising suitability of the work as the reason 24 for the refusal until such time as the reason for the refusal 25 is communicated in writing to the employer. 26 Sec. 6. Section 85.34, subsection 2, unnumbered paragraph 27 1, Code 2017, is amended to read as follows: 28 Compensation for permanent partial disability shall begin at 29 the termination of the healing period provided in subsection 1 30 when it is medically indicated that maximum medical improvement 31 from the injury has been reached and that the extent of loss or 32 percentage of permanent impairment can be determined by use of 33 the guides to the evaluation of permanent impairment, published 34 by the American medical association, as adopted by the workers’ 35 -3- HF 518 (2) 87 av/rj/md 3/ 16
H.F. 518 compensation commissioner by rule pursuant to chapter 17A . The 1 compensation shall be in addition to the benefits provided by 2 sections 85.27 and 85.28 . The compensation shall be based 3 upon the extent of the disability and upon the basis of eighty 4 percent per week of the employee’s average spendable weekly 5 earnings, but not more than a weekly benefit amount, rounded to 6 the nearest dollar, equal to one hundred eighty-four percent of 7 the statewide average weekly wage paid employees as determined 8 by the department of workforce development under section 96.19, 9 subsection 36 , and in effect at the time of the injury. The 10 minimum weekly benefit amount shall be equal to the weekly 11 benefit amount of a person whose gross weekly earnings are 12 thirty-five percent of the statewide average weekly wage. For 13 all cases of permanent partial disability compensation shall 14 be paid as follows: 15 Sec. 7. Section 85.34, subsection 2, Code 2017, is amended 16 by adding the following new paragraph: 17 NEW PARAGRAPH . 0n. For the loss of a shoulder, weekly 18 compensation during four hundred weeks. 19 Sec. 8. Section 85.34, subsection 2, paragraph u, Code 2017, 20 is amended to read as follows: 21 u. In all cases of permanent partial disability other than 22 those hereinabove described or referred to in paragraphs “a” 23 through “t” hereof, the compensation shall be paid during 24 the number of weeks in relation to five hundred weeks as the 25 reduction in the employee’s earning capacity caused by the 26 disability bears in relation to the earning capacity that the 27 employee possessed when the injury occurred. A determination 28 of the reduction in the employee’s earning capacity caused 29 by the disability shall take into account the permanent 30 partial disability of the employee and the number of years in 31 the future it was reasonably anticipated that the employee 32 would work at the time of the injury. If an employee who 33 is eligible for compensation under this paragraph returns to 34 work or is offered work for which the employee receives or 35 -4- HF 518 (2) 87 av/rj/md 4/ 16
H.F. 518 would receive the same or greater salary, wages, or earnings 1 than the employee received at the time of the injury, the 2 employee shall be compensated based only upon the employee’s 3 functional impairment resulting from the injury, and not in 4 relation to the employee’s earning capacity. Notwithstanding 5 section 85.26, subsection 2, if an employee who is eligible 6 for compensation under this paragraph returns to work with the 7 same employer and is compensated based only upon the employee’s 8 functional impairment resulting from the injury as provided 9 in this paragraph and is terminated from employment by that 10 employer, the award or agreement for settlement for benefits 11 under this chapter shall be reviewed upon commencement of 12 reopening proceedings by the employee for a determination of 13 any reduction in the employee’s earning capacity caused by the 14 employee’s permanent partial disability. 15 Sec. 9. Section 85.34, subsection 2, Code 2017, is amended 16 by adding the following new paragraphs: 17 NEW PARAGRAPH . w. In all cases of permanent partial 18 disability described in paragraphs “a” through “t” , or paragraph 19 “u” when determining functional disability and not loss of 20 earning capacity, the extent of loss or percentage of permanent 21 impairment shall be determined solely by utilizing the guides 22 to the evaluation of permanent impairment, published by the 23 American medical association, as adopted by the workers’ 24 compensation commissioner by rule pursuant to chapter 17A. 25 Lay testimony or agency expertise shall not be utilized in 26 determining loss or percentage of permanent impairment pursuant 27 to paragraphs “a” through “t” , or paragraph “u” when determining 28 functional disability and not loss of earning capacity. 29 NEW PARAGRAPH . x. Compensation for permanent partial 30 disability for an injury shall terminate on the date when 31 compensation for permanent total disability for any injury 32 begins. An employee shall not receive compensation for 33 permanent partial disability if the employee is receiving 34 compensation for permanent total disability. 35 -5- HF 518 (2) 87 av/rj/md 5/ 16
H.F. 518 Sec. 10. Section 85.34, subsection 3, Code 2017, is amended 1 to read as follows: 2 3. Permanent total disability. 3 a. Compensation for an injury causing permanent total 4 disability shall be upon the basis of eighty percent per week 5 of the employee’s average spendable weekly earnings, but not 6 more than a weekly benefit amount, rounded to the nearest 7 dollar, equal to two hundred percent of the statewide average 8 weekly wage paid employees as determined by the department 9 of workforce development under section 96.19, subsection 36 , 10 and in effect at the time of the injury. The minimum weekly 11 benefit amount is equal to the weekly benefit amount of a 12 person whose gross weekly earnings are thirty-five percent of 13 the statewide average weekly wage. The weekly compensation is 14 payable during the period of the employee’s disability until 15 the employee is no longer permanently and totally disabled . 16 b. Such compensation shall be in addition to the benefits 17 provided in sections 85.27 and 85.28 . No compensation shall 18 be payable under this subsection for any injury for which 19 compensation is payable under subsection 2 of this section . 20 In the event compensation has been paid to any person under 21 any provision of this chapter , chapter 85A or chapter 85B for 22 the same an injury producing a total permanent disability, any 23 such amounts so paid shall be deducted from the total amount 24 of compensation payable for such permanent total disability. 25 An employee shall not receive compensation for permanent 26 partial disability if the employee is receiving compensation 27 for permanent total disability. 28 Sec. 11. Section 85.34, subsection 3, Code 2017, is amended 29 by adding the following new paragraphs: 30 NEW PARAGRAPH . c. An employee forfeits the employee’s 31 weekly compensation for a permanent total disability under this 32 subsection for a week in which the employee is receiving a 33 payment equal to or greater than fifty percent of the statewide 34 average weekly wage from any of the following sources: 35 -6- HF 518 (2) 87 av/rj/md 6/ 16
H.F. 518 (1) Gross earnings from any employer. 1 (2) Payment for current services from any source. 2 NEW PARAGRAPH . d. An employee is not entitled to 3 compensation for a permanent total disability under this 4 subsection while the employee is receiving unemployment 5 compensation under chapter 96. 6 Sec. 12. Section 85.34, subsections 4 and 5, Code 2017, are 7 amended to read as follows: 8 4. Credits for excess payments. If an employee is paid 9 weekly compensation benefits for temporary total disability 10 under section 85.33, subsection 1 , for a healing period 11 under section 85.34, subsection 1 , or for temporary partial 12 disability under section 85.33, subsection 2 , in excess of 13 that required by this chapter and chapters 85A , 85B , and 86 , 14 the excess paid by the employer shall be credited against the 15 liability of the employer for permanent partial disability 16 under section 85.34, subsection 2 any future weekly benefits 17 due for an injury to that employee , provided that the employer 18 or the employer’s representative has acted in good faith in 19 determining and notifying an employee when the temporary total 20 disability, healing period, or temporary partial disability 21 benefits are terminated. 22 5. Recovery of employee overpayment. If an employee is paid 23 any weekly benefits in excess of that required by this chapter 24 and chapters 85A , 85B , and 86 , the excess paid by the employer 25 shall be credited against the liability of the employer for 26 any future weekly benefits due pursuant to subsection 2 , for 27 a any current or subsequent injury to the same employee. An 28 overpayment can be established only when the overpayment is 29 recognized in a settlement agreement approved under section 30 86.13 , pursuant to final agency action in a contested case 31 which was commenced within three years from the date that 32 weekly benefits were last paid for the claim for which the 33 benefits were overpaid, or pursuant to final agency action 34 in a contested case for a prior injury to the same employee. 35 -7- HF 518 (2) 87 av/rj/md 7/ 16
H.F. 518 The credit shall remain available for eight years after the 1 date the overpayment was established. If an overpayment 2 is established pursuant to this subsection , the employee 3 and employer may enter into a written settlement agreement 4 providing for the repayment by the employee of the overpayment. 5 The agreement is subject to the approval of the workers’ 6 compensation commissioner. The employer shall not take any 7 adverse action against the employee for failing to agree to 8 such a written settlement agreement. 9 Sec. 13. Section 85.34, subsection 7, paragraph a, Code 10 2017, is amended to read as follows: 11 a. An employer is fully liable for compensating all only 12 that portion of an employee’s disability that arises out of and 13 in the course of the employee’s employment with the employer 14 and that relates to the injury that serves as the basis for 15 the employee’s claim for compensation under this chapter, 16 or chapter 85A, 85B, or 86 . An employer is not liable for 17 compensating an employee’s preexisting disability that arose 18 out of and in the course of employment from a prior injury with 19 the employer, to the extent that the employee’s preexisting 20 disability has already been compensated under this chapter, 21 or chapter 85A, 85B, or 86. An employer is not liable for 22 compensating an employee’s preexisting disability that arose 23 out of and in the course of employment with a different 24 employer or from causes unrelated to employment. 25 Sec. 14. Section 85.34, subsection 7, paragraphs b and c, 26 Code 2017, are amended by striking the paragraphs. 27 Sec. 15. Section 85.39, Code 2017, is amended to read as 28 follows: 29 85.39 Examination of injured employees. 30 1. After an injury, the employee, if requested by the 31 employer, shall submit for examination at some reasonable 32 time and place and as often as reasonably requested, to a 33 physician or physicians authorized to practice under the laws 34 of this state or another state, without cost to the employee; 35 -8- HF 518 (2) 87 av/rj/md 8/ 16
H.F. 518 but if the employee requests, the employee, at the employee’s 1 own cost, is entitled to have a physician or physicians 2 of the employee’s own selection present to participate in 3 the examination. If an employee is required to leave work 4 for which the employee is being paid wages to attend the 5 requested examination, the employee shall be compensated at 6 the employee’s regular rate for the time the employee is 7 required to leave work, and the employee shall be furnished 8 transportation to and from the place of examination, or the 9 employer may elect to pay the employee the reasonable cost of 10 the transportation. The refusal of the employee to submit to 11 the examination shall suspend forfeit the employee’s right to 12 any compensation for the period of the refusal. Compensation 13 shall not be payable for the period of suspension refusal . 14 2. If an evaluation of permanent disability has been made by 15 a physician retained by the employer and the employee believes 16 this evaluation to be too low, the employee shall, upon 17 application to the commissioner and upon delivery of a copy of 18 the application to the employer and its insurance carrier, be 19 reimbursed by the employer the reasonable fee for a subsequent 20 examination by a physician of the employee’s own choice, and 21 reasonably necessary transportation expenses incurred for the 22 examination. The physician chosen by the employee has the 23 right to confer with and obtain from the employer-retained 24 physician sufficient history of the injury to make a proper 25 examination. An employer is only liable to reimburse an 26 employee for the cost of an examination conducted pursuant to 27 this subsection if the injury for which the employee is being 28 examined is determined to be compensable under this chapter or 29 chapter 85A or 85B. An employer is not liable for the cost of 30 such an examination if the injury for which the employee is 31 being examined is determined not to be a compensable injury. A 32 determination of the reasonableness of a fee for an examination 33 made pursuant to this subsection, shall be based on the typical 34 fee charged by a medical provider to perform an impairment 35 -9- HF 518 (2) 87 av/rj/md 9/ 16
H.F. 518 rating in the local area where the examination is conducted. 1 Sec. 16. Section 85.45, subsection 1, unnumbered paragraph 2 1, Code 2017, is amended to read as follows: 3 Future payments of compensation may be commuted to a present 4 worth lump sum payment only upon application of a party to 5 the commissioner and upon written consent of all parties to 6 the proposed commutation or partial commutation, and on the 7 following conditions: 8 Sec. 17. Section 85.45, Code 2017, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 3. The parties to any commutation or 11 partial commutation of future payments agreed to and ordered 12 pursuant to this section may agree that the employee has the 13 right to benefits pursuant to section 85.27 under such terms 14 and conditions as agreed to by the parties, for a specified 15 period of time after the commutation or partial commutation 16 agreement has been ordered by the workers’ compensation 17 commissioner. During that specified period of time, the 18 commissioner shall have jurisdiction of the commutation or 19 partial commutation agreement for the purpose of adjudicating 20 the employee’s entitlement to benefits provided for in section 21 85.27 as provided in the agreement. 22 Sec. 18. Section 85.70, Code 2017, is amended to read as 23 follows: 24 85.70 Additional payment for attendance —— rehabilitation and 25 training —— new career vocational training and education program . 26 1. An employee who has sustained an injury resulting in 27 permanent partial or permanent total disability, for which 28 compensation is payable under this chapter other than an 29 injury to the shoulder compensable pursuant to section 85.34, 30 subsection 2, paragraph “0n” , and who cannot return to gainful 31 employment because of such disability, shall upon application 32 to and approval by the workers’ compensation commissioner 33 be entitled to a one hundred dollar weekly payment from the 34 employer in addition to any other benefit payments, during each 35 -10- HF 518 (2) 87 av/rj/md 10/ 16
H.F. 518 full week in which the employee is actively participating in a 1 vocational rehabilitation program recognized by the vocational 2 rehabilitation services division of the department of 3 education. The workers’ compensation commissioner’s approval 4 of such application for payment may be given only after a 5 careful evaluation of available facts, and after consultation 6 with the employer or the employer’s representative. 7 Judicial review of the decision of the workers’ compensation 8 commissioner may be obtained in accordance with the terms of 9 the Iowa administrative procedure Act, chapter 17A , and in 10 section 86.26 . Such additional benefit payment shall be paid 11 for a period not to exceed thirteen consecutive weeks except 12 that the workers’ compensation commissioner may extend the 13 period of payment not to exceed an additional thirteen weeks if 14 the circumstances indicate that a continuation of training will 15 in fact accomplish rehabilitation. 16 2. a. An employee who has sustained an injury to 17 the shoulder resulting in permanent partial disability 18 for which compensation is payable under section 85.34, 19 subsection 2, paragraph “0n” , and who cannot return to gainful 20 employment because of such disability, shall be evaluated 21 by the department of workforce development regarding career 22 opportunities in specific fields aligning with postsecondary 23 career and technical education programs that provide 24 instruction in the areas of agriculture, family and consumer 25 sciences, health occupations, business, industrial technology, 26 and marketing, that allow for accommodation of the employee’s 27 disability and to determine if the employee would benefit 28 from participation in the new career vocational training and 29 education program offered through an area community college, 30 that will allow the employee to return to the workforce. 31 b. Upon completion of the evaluation and a determination 32 by the department that the employee is a candidate for the new 33 career vocational training and education program, the employee 34 shall be referred by the department to the community college 35 -11- HF 518 (2) 87 av/rj/md 11/ 16
H.F. 518 that is in the closest proximity to the employee’s residence, 1 or upon agreement of the department and the employee, to 2 the community college that offers a vocational training and 3 education program that best meets the employee’s needs, for 4 enrollment in the new career vocational training and education 5 program at the community college for the purpose of providing 6 the employee with occupational training that will result in, at 7 a minimum, the awarding of an associate degree or completion 8 of a certificate program and will enable the employee to 9 return to the workforce. If an employee does not enroll in 10 the new career vocational training and education program at 11 the community college to which the employee has been referred 12 by the department within six months after the referral, the 13 employee is no longer eligible to participate in the program. 14 c. The employee shall be entitled to financial support from 15 the employer or the employer’s insurer for participation in 16 the new career vocational and education training program in 17 a total amount not to exceed fifteen thousand dollars to be 18 used for the payment of tuition and fees and the purchase of 19 required supplies. The community college in which an employee 20 is enrolled pursuant to the program shall bill the employer 21 or the employer’s insurer for the employee’s tuition and fees 22 each semester, or the equivalent, that the employee is enrolled 23 in the program. The employer or the employer’s insurer shall 24 also pay for the purchase of supplies required by the employee 25 to participate in the program, upon receipt of documentation 26 from the employee detailing the cost of the supplies and the 27 necessity for purchasing the supplies. Such documentation may 28 include written course requirements or other documentation from 29 the community college or the course instructor regarding the 30 necessity for the purchase of certain supplies. 31 d. The employer or the employer’s insurer may request a 32 periodic status report each semester from the community college 33 documenting the employee’s attendance and participation in 34 and completion of the education and training program. If an 35 -12- HF 518 (2) 87 av/rj/md 12/ 16
H.F. 518 employee does not meet the attendance requirements of the 1 community college at which the employee is enrolled or does not 2 maintain a passing grade in each course in which the employee 3 is enrolled each semester, or the equivalent, the employee’s 4 eligibility for continued participation in the program is 5 terminated. 6 e. The community college shall also provide the employer 7 or the employer’s insurer with documentation detailing that 8 the receipt of funds by the community college pursuant to this 9 subsection is for the payment of tuition and fees and the 10 purchase of required supplies. 11 f. Beginning on or before December 1, 2018, the department 12 of workforce development, in cooperation with the department 13 of education, the insurance division of the department of 14 commerce, and all community colleges that are participating 15 in the new career and vocational training and education 16 program, shall prepare an annual report for submission to the 17 general assembly that provides information about the status 18 of the program including but not limited to the utilization 19 of and participants in the program, program completion rates, 20 employment rates after completion of the program and the types 21 of employment obtained by the program participants, and the 22 effects of the program on workers’ compensation premium rates. 23 Sec. 19. Section 85.71, subsection 1, paragraph a, Code 24 2017, is amended to read as follows: 25 a. The employer has a place of business in this state and 26 the employee regularly works at or from that place of business , 27 or the employer has a place of business in this state and the 28 employee is domiciled in this state . 29 Sec. 20. Section 86.26, Code 2017, is amended to read as 30 follows: 31 86.26 Judicial review. 32 1. Judicial review of decisions or orders of the workers’ 33 compensation commissioner may be sought in accordance 34 with chapter 17A . Notwithstanding chapter 17A , the Iowa 35 -13- HF 518 (2) 87 av/rj/md 13/ 16
H.F. 518 administrative procedure Act, petitions for judicial review 1 may be filed in the district court of the county in which the 2 hearing under section 86.17 was held, the workers’ compensation 3 commissioner shall transmit to the reviewing court the original 4 or a certified copy of the entire record of the contested case 5 which is the subject of the petition within thirty days after 6 receiving written notice from the party filing the petition 7 that a petition for judicial review has been filed, and an 8 application for stay of agency action during the pendency of 9 judicial review shall not be filed in the division of workers’ 10 compensation of the department of workforce development 11 but shall be filed with the district court. Such a review 12 proceeding shall be accorded priority over other matters 13 pending before the district court. 14 2. Notwithstanding section 17A.19, subsection 5, a timely 15 petition for judicial review filed pursuant to this section 16 shall stay execution or enforcement of a decision or order of 17 the workers’ compensation commissioner if the party seeking 18 judicial review posts a bond securing any compensation awarded 19 pursuant to the decision or order with the district court 20 within thirty days of filing the petition, in a reasonable 21 amount as fixed and approved by the court. Unless either the 22 party posting the bond files an objection with the court, 23 within twenty days from the date that the bond is fixed and 24 approved by the court, that the amount of the bond is not 25 reasonable, or the party whose interests are protected by the 26 bond files an objection with the court, within twenty days from 27 the date that the amount of the bond is fixed and approved by 28 the court, that the amount of the bond is not reasonable or 29 adequate, the amount of the bond shall be deemed reasonable and 30 adequate. If, upon objection, the district court orders the 31 amount of the bond posted to be modified, the party seeking 32 judicial review shall repost the bond in the amount ordered, 33 within twenty days of the date of the order modifying the bond, 34 in order to continue the stay of execution or enforcement 35 -14- HF 518 (2) 87 av/rj/md 14/ 16
H.F. 518 of the decision or order of the workers’ compensation 1 commissioner. 2 Sec. 21. Section 86.39, Code 2017, is amended to read as 3 follows: 4 86.39 Fees —— approval. 5 1. All fees or claims for legal, medical, hospital, and 6 burial services rendered under this chapter and chapters 85 , 7 85A , 85B , and 87 are subject to the approval of the workers’ 8 compensation commissioner. For services rendered in the 9 district court and appellate courts, the attorney fee is 10 subject to the approval of a judge of the district court. 11 2. An attorney shall not recover fees for legal services 12 based on the amount of compensation voluntarily paid or 13 agreed to be paid to an employee for temporary or permanent 14 disability under this chapter, or chapter 85, 85A, 85B, or 15 87. An attorney shall only recover a fee based on the amount 16 of compensation that the attorney demonstrates would not have 17 been paid to the employee but for the efforts of the attorney. 18 Any disputes over the recovery of attorney fees under this 19 subsection shall be resolved by the workers’ compensation 20 commissioner. 21 Sec. 22. Section 86.42, Code 2017, is amended to read as 22 follows: 23 86.42 Judgment by district court on award. 24 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 29 5 , or section 86.26, subsection 2, or an order or decision 30 of a deputy commissioner from which a timely appeal has not 31 been taken within the agency and which has become final by 32 the passage of time as provided by rule and section 17A.15 , 33 or an agreement for settlement approved by the commissioner, 34 and all papers in connection therewith, to the district court 35 -15- HF 518 (2) 87 av/rj/md 15/ 16
H.F. 518 where judicial review of the agency action may be commenced. 1 The court shall render a decree or judgment and cause the 2 clerk to notify the parties. The decree or judgment, in the 3 absence of a petition for judicial review or if judicial review 4 has been commenced, in the absence of a stay of execution 5 or enforcement of the decision or order of the workers’ 6 compensation commissioner as provided in section 17A.19, 7 subsection 5, or section 86.26, subsection 2 , or in the absence 8 of an act of any party which prevents a decision of a deputy 9 workers’ compensation commissioner from becoming final, has the 10 same effect and in all proceedings in relation thereto is the 11 same as though rendered in a suit duly heard and determined by 12 the court. 13 Sec. 23. Section 535.3, subsection 1, Code 2017, is amended 14 to read as follows: 15 1. a. Interest shall be allowed on all money due on 16 judgments and decrees of courts at a rate calculated according 17 to section 668.13 , except for interest due pursuant to section 18 85.30 for which the rate shall be ten percent per year . 19 b. Notwithstanding paragraph “a” , interest due pursuant 20 to section 85.30 shall accrue from the date each compensation 21 payment is due at an annual rate equal to the one-year treasury 22 constant maturity published by the federal reserve in the most 23 recent H15 report settled as of the date of injury, plus two 24 percent. 25 Sec. 24. APPLICABILITY. 26 1. The sections of this Act amending sections 85.16, 85.18, 27 85.23, 85.26, 85.33, 85.34, 85.39, 85.71, 86.26, 86.39, and 28 86.42 apply to injuries occurring on or after the effective 29 date of this Act. 30 2. The sections of this Act amending section 85.45 apply to 31 commutations for which applications are filed on or after the 32 effective date of this Act. 33 -16- HF 518 (2) 87 av/rj/md 16/ 16