Second Regular Session Seventy-third General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 22-0920.01 Yelana Love x2295 HOUSE BILL 22-1347 House Committees Senate Committees Business Affairs & Labor Business, Labor, & Technology A BILL FOR AN ACT C ONCERNING WORKERS ' COMPENSATION , AND, IN CONNECTION101 THEREWITH, INCREASING FUNERAL BENEFITS , ALLOWING FOR102 ADVANCE MILEAGE EXPENSE PAYMENTS , ADDRESSING THE103 PAYMENT OF SCHEDULED RATINGS , AND REQUIRING REPORTING104 OF CERTAIN ACTIVE MEDICAL TREATMENTS .105 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill amends the "Workers' Compensation Act of Colorado" by: ! Creating a process for a claimant to receive advance SENATE Amended 2nd Reading April 28, 2022 HOUSE 3rd Reading Unamended April 18, 2022 HOUSE 2nd Reading Unamended April 14, 2022 HOUSE SPONSORSHIP Daugherty, Bacon, Bernett, Bird, Boesenecker, Duran, Exum, Gonzales-Gutierrez, Gray, Herod, Jodeh, Lindsay, Mullica, Titone, Weissman, Woodrow SENATE SPONSORSHIP Rodriguez, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. payment for mileage expenses for travel that is reasonably necessary and related to obtaining compensable treatment, supplies, or services; ! Specifying how to determine the benefit amount for medical impairment when the amount payable using the schedule of injuries would exceed the amount payable for nonscheduled injuries; ! Increasing the benefit payable for funeral and burial expenses; and ! Requiring reporting of active medical treatments necessary to cure and relieve an injury lasting for a period of more than 180 calendar days after the date of the injury. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 8-42-101, amend (7)2 as follows:3 8-42-101. Employer must furnish medical aid - approval of4 plan - fee schedule - contracting for treatment - no recovery from5 employee - medical treatment guidelines - accreditation of physicians6 and other medical providers - mileage reimbursement - rules -7 definition - repeal. (7) (a) E XCEPT AS PROVIDED IN SUBSECTIONS (7)(b)8 AND (7)(c) OF THIS SECTION, a claimant must submit a request for mileage9 expense reimbursement for travel reasonably necessary and related to10 obtaining compensable treatment, supplies, or services specified in11 subsection (1)(a) of this section to the employer or, if insured, to the12 employer's insurer no later than one hundred twenty days after the date13 the expense is incurred, unless good cause for a later submission is14 shown. Good cause includes a failure by the employer or employer's15 insurer to provide the notice in the brochure required by section 8-43-20316 (3)(c)(IV). Within thirty days after the date the claimant submits the17 request for mileage expense reimbursement, the employer or employer's18 insurer shall pay the mileage expenses or, if denying the request, provide19 1347-2- written notice to the claimant stating the reason the request was denied.1 (b) W ITHIN SEVEN DAYS AFTER THE DATE OF RECEIPT OF A2 CLAIMANT'S WRITTEN REQUEST FOR ADVANCE MILEAGE EXPENSES FOR3 TRAVEL THAT IS REASONABLY NECESSARY AND RELATED TO OBTAINING4 COMPENSABLE TREATMENT , SUPPLIES, OR SERVICES SPECIFIED IN5 SUBSECTION (1)(a) OF THIS SECTION AND REQUIRES ROUND -TRIP TRAVEL6 GREATER THAN ONE HUNDRED MILES , THE EMPLOYER OR THE EMPLOYER'S7 INSURER SHALL PAY THE ADVANCE MILEAGE EXPENSES OR , IF DENYING8 THE REQUEST, PROVIDE WRITTEN NOTICE TO THE CLAIMANT STATING THE9 REASON THE REQUEST WAS DENIED .10 (c) I F ADVANCE MILEAGE EXPENSE PAYMENT IS MADE PURSUANT11 TO THIS SUBSECTION (7), AND THE SPECIFIC TRAVEL FOR WHICH PAYMENT12 WAS PROVIDED DOES NOT OCCUR , THE EMPLOYER OR, IF INSURED, THE13 EMPLOYER'S INSURER IS ENTITLED TO A CREDIT IN THE AMOUNT OF THE14 PAYMENT TO BE APPLIED AGAINST LIABILITY FOR ANY FUTURE MILEAGE15 EXPENSE REIMBURSEMENTS .16 SECTION 2. In Colorado Revised Statutes, 8-42-107, amend17 (1)(b), (8)(a), and (8)(c.5); and add (7)(b)(IV) as follows:18 8-42-107. Permanent partial disability benefits - schedule -19 medical impairment benefits - how determined. (1) Benefits20 available. (b) When an injury results in permanent medical impairment21 and the employee has an injury or injuries not LISTED on the schedule22 specified in subsection (2) of this section, the employee shall be IS limited23 to medical impairment benefits as specified in subsection (8) of this24 section, EXCEPT AS PROVIDED IN SUBSECTION (7)(b)(IV) OF THIS SECTION.25 (7) (b) (IV) W HEN AN EMPLOYEE SUSTAINS AN INJURY ON THE26 SCHEDULE OF INJURIES LISTED IN SUBSECTION (2) OF THIS SECTION THAT27 1347 -3- MAY ALSO BE COMPENSATED AS SPECIFIED IN SUBSECTION (8) OF THIS1 SECTION, IF THE AMOUNT OF COMPENSATION FOR MEDICAL IMPAIRMENT2 WHEN USING THE SCHEDULE OF INJURIES IN SUBSECTION (2) OF THIS3 SECTION WOULD BE GREATER THAN THE NONSCHEDULED IMPAIRMENT4 BENEFITS IN SUBSECTION (8) OF THIS SECTION, THEN THE EMPLOYEE IS5 ENTITLED TO THE COMPENSATION SPECIFIED IN SUBSECTION (2) OF THIS6 SECTION.7 (8) Medical impairment benefits - determination of MMI for8 scheduled and nonscheduled injuries. (a) When an injury results in9 permanent medical impairment not set forth in the schedule in subsection10 (2) of this section, the employee shall be IS limited to medical impairment11 benefits calculated as provided in this subsection (8), EXCEPT AS12 PROVIDED IN SUBSECTION (7)(b)(IV) OF THIS SECTION. The procedures for13 determination of maximum medical improvement set forth in paragraph 14 (b) of this subsection (8) shall be SUBSECTION (8)(b) OF THIS SECTION ARE15 available in cases of injuries set forth in the schedule in subsection (2) of16 this section and also in cases of injuries that are not set forth in said17 schedule.18 (c.5) When an injury results in the total loss or total loss of use of19 an arm at the shoulder, a forearm at the elbow, a hand at the wrist, a leg20 at the hip or so near thereto as to preclude the use of an artificial limb, the21 loss of a leg at or above the knee where the stump remains sufficient to22 permit the use of an artificial limb, a foot at the ankle, an eye, or a23 combination of any such losses, the benefits for such loss shall be24 determined pursuant to this subsection (8), EXCEPT AS PROVIDED IN25 SUBSECTION (7)(b)(IV) OF THIS SECTION.26 SECTION 3. In Colorado Revised Statutes, amend 8-42-123 as27 1347 -4- follows:1 8-42-123. Funeral and burial expenses. (1) When, as a2 proximate result of an injury, death occurs to an injured employee, there3 shall be paid in one lump sum within thirty days after death a sum not to4 exceed seven thousand TWELVE THOUSAND FIVE HUNDRED dollars for5 reasonable funeral and burial expenses. Said sum may be paid to the6 undertaker, cemetery, PERSON PROVIDING FUNERAL OR BURIAL SERVICES7 or any other person who has paid the funeral and burial costs. if the8 director so orders. If the employee leaves no dependents, compensation9 shall be IS limited to said sum and the compensation if any, which has10 THAT MAY HAVE accrued to date of death and OR BEEN PAID TO THE11 DECEASED EMPLOYEE DURING THE DECEASED EMPLOYEE 'S LIFETIME FOR12 DISABILITY; the medical, surgical, and hospital expenses provided in13 articles 40 to 47 of this title TITLE 8; AND ANY AMOUNT OR PAYMENT DUE14 UNDER SECTION 8-46-101. IF THe deceased employee leaves dependents,15 said sum shall be paid in addition to all other sums of compensation16 provided for in this article ARTICLE 42.17 (2) O N JULY 1, 2023, AND EACH JULY 1 THEREAFTER, THE18 DIRECTOR SHALL ADJUST THE MAXIMUM AMOUNT PAYABLE FOR FUNERAL19 AND BURIAL EXPENSES PROVIDED IN SUBSECTION (1) OF THIS SECTION BY20 THE PERCENTAGE OF THE ADJUSTMENT MADE BY THE DIRECTOR TO THE21 STATE AVERAGE WEEKLY WAGE PURSUANT TO SECTION 8-47-106.22 SECTION 4. In Colorado Revised Statutes, 8-43-101, amend (1)23 as follows:24 8-43-101. Record of injuries - occupational disease - reported25 to division - rules - definition. (1) (a) Every employer shall keep a26 record of: All EMPLOYEE injuries that result in fatality, to, or permanent27 1347 -5- physical impairment, of, or lost time from work for the injured employee1 in excess of three shifts or calendar days, OR ACTIVE MEDICAL2 TREATMENT FOR A PERIOD OF MORE THAN ONE HUNDRED EIGHTY3 CALENDAR DAYS AFTER THE DATE THE INJURY WAS FIRST REPORTED TO4 THE EMPLOYER; and the contraction by an employee of an occupational5 disease that has been listed by the director by rule. Within ten days after6 notice or knowledge that an employee has contracted such an7 occupational disease; or the occurrence of a permanently physically 8 impairing injury or OF AN INJURY THAT RESULTS IN PERMANENT PHYSICAL9 IMPAIRMENT, OF A lost-time injury, to an employee; OR OF AN INJURY10 THAT RESULTS IN ACTIVE MEDICAL TREATMENT FOR A PERIOD OF MORE11 THAN ONE HUNDRED EIGHTY CALENDAR DAYS AFTER THE DATE THE12 INJURY WAS FIRST REPORTED TO THE EMPLOYER , or immediately in the13 case of a fatality, the employer shall, upon forms prescribed by the14 division for that purpose, report TO THE DIVISION said occupational15 disease, permanently physically impairing injury, lost-time injury, INJURY16 REQUIRING ACTIVE MEDICAL TREATMENT FOR A PERIOD OF MORE THAN17 ONE HUNDRED EIGHTY CALENDAR DAYS AFTER THE DATE THE INJURY WAS18 FIRST REPORTED TO THE EMPLOYER, or fatality. to the division. The report19 shall MUST contain such THE information as shall be required by the20 director.21 (b) A S USED IN THIS SUBSECTION (1), "ACTIVE MEDICAL22 TREATMENT":23 (I) M EANS TREATMENT THAT IS DETERMINED BY AN AUTHORIZED24 TREATING PHYSICIAN TO BE REASONABLY NECESSARY TO CURE AND25 RELIEVE THE INJURY AND THAT REQUIRES ONGOING SUPERVISION BY AN26 AUTHORIZED TREATING PHYSICIAN AS DOCUMENTED BY WRITTEN MEDICAL27 1347 -6- REPORT;1 (II) D OES NOT INCLUDE TREATMENT THAT IS NOT REASONABLY2 EXPECTED TO IMPROVE THE CONDITION OR ANY TREATMENT THAT DOES3 NOT REQUIRE THE SUPERVISION OF A LICENSED PHYSICIAN , INCLUDING4 GYM OR POOL MEMBERSHIPS OR HOME EXERCISE PROGRAMS ; AND5 (III) T ERMINATES WHEN THERE HAS BEEN AN ABANDONMENT OF6 CARE OR DISCHARGE FROM CARE FOR NONCOMPLIANCE PRIOR TO7 EXPIRATION OF THE ONE-HUNDRED-EIGHTY-DAY PERIOD SET FORTH IN8 SUBSECTION (1)(a) OF THIS SECTION.9 SECTION 5. In Colorado Revised Statutes, 8-44-206, amend 10 (3)(a), (4)(a), and (5); and repeal (2) as follows:11 8-44-206. Guaranty fund - immediate payment fund.12 (2) Creation of special funds board - duties. (a) For the purposes of13 carrying out this section, there is hereby created a special funds board14 which shall exercise its powers and perform its duties and functions as15 specified in this subsection (2) under the department of labor and16 employment as if the same were transferred to the department by a type17 2 transfer as such transfer is defined in the "Administrative Organization18 Act of 1968", article 1 of title 24, C.R.S. Said board shall be composed19 of five members: Four members who are managers or employees of20 self-insured employers in good standing, two of whom shall demonstrate21 knowledge of risk management and finance, and the executive director.22 (b) With the exception of the executive director, the board23 members shall be appointed by the governor and approved by the senate.24 The terms of the members of the board first appointed shall be four years,25 three years, two years, and one year, respectively. Thereafter, the term for26 each appointed board member shall be four years. Members of the board27 1347 -7- may be reappointed and the executive director shall serve continuously.1 (c) The members of the board shall receive no compensation but2 shall be reimbursed for actual and necessary traveling and subsistence3 expenses incurred in the performance of their duties as members of the4 board.5 (d) (I) The board shall determine the assessments to be made6 pursuant to subsections (3) and (4) of this section and shall determine the7 qualifications and requirements for any claims administrators hired to8 adjust the claims of a self-insurer who fails to meet his obligations with9 respect to benefits awarded pursuant to articles 40 to 47 of this title.10 (II) The board shall also participate, in an advisory capacity only,11 in matters concerning the granting or termination of self-insurance12 permits and the setting of security requirements.13 (3) Immediate payment fund - assessments - creation of fund.14 (a) The board DIRECTOR shall impose an assessment upon each employer15 self-insured under section 8-44-201. Assessments under this subsection16 (3) shall be based upon a ratio equal to the self-insured employer's paid17 workers' compensation medical and indemnity losses for the most recent18 self-insurance permit year divided by the aggregate sum of paid medical19 and indemnity losses by all self-insured employers for that year. Such20 losses shall be determined on July 1, 1990, for the most recently21 completed permit year, and on the first day of July for each year thereafter22 until the minimum fund balance has been reached. Contributions to the23 fund shall not be assets of the self-insured employer.24 (4) Guaranty fund - assessments - creation of fund. (a) When25 the board DIRECTOR determines that existing security held by an employer26 self-insured under section 8-44-201 is insufficient to meet its existing27 1347 -8- liability for workers' compensation benefits, the board DIRECTOR shall1 impose an assessment on each self-insured employer. The assessment2 shall be based on a ratio which equals each self-insured employer's paid3 workers' compensation medical and indemnity losses for the most recent4 self-insurance permit year divided by the aggregate sum of paid medical5 and indemnity losses by all self-insured employers for that year. If6 necessary, the executive director may direct the board DIRECTOR to make7 an annual assessment thereafter until such time as the present value of the8 guaranty fund, created in paragraph (b) of this subsection (4) SUBSECTION9 (4)(b) OF THIS SECTION, equals the total liability for workers' 10 compensation benefits which are in excess of the security held by the11 defaulting self-insured employers.12 (5) The department shall select any claims administrators required13 under this section based on the qualifications and requirements14 established by the board DIRECTOR. For the purpose of contracting for15 such services, the department shall not be subject to articles 101 to 11416 of title 24. C.R.S.17 SECTION 6. Act subject to petition - effective date -18 applicability. (1) This act takes effect at 12:01 a.m. on the day following19 the expiration of the ninety-day period after final adjournment of the20 general assembly; except that, if a referendum petition is filed pursuant21 to section 1 (3) of article V of the state constitution against this act or an22 item, section, or part of this act within such period, then the act, item,23 section, or part will not take effect unless approved by the people at the24 general election to be held in November 2022 and, in such case, will take25 effect on the date of the official declaration of the vote thereon by the26 governor.27 1347 -9- (2) This act applies to injuries occurring, and mileage1 reimbursement claims in existence, on or after the applicable effective2 date of this act.3 1347 -10-