Connecticut House Bill HB05201

Connecticut 2010 Regular Session

• Introduced: 2/16/10
• Refer: 2/16/10
• Report Pass: 3/4/10
• Refer: 3/9/10
• Report Pass: 3/16/10
• Engrossed: 4/7/10
• Report Pass: 4/9/10
• Chaptered: 4/29/10
• Enrolled: 4/30/10
• Passed: 5/5/10

Caption

An Act Concerning Interest Penalties On Late Payment Of Assessments To The Second Injury Fund.

Impact

The bill will significantly impact state laws governing employer contributions to the Second Injury Fund, which is intended to help workers who sustain injuries. By imposing stricter penalties for late payments, it encourages employers to comply with financial obligations, enhancing the reliability of funding for benefits owed to injured employees. The State Treasurer is appointed as the custodian of the fund, ensuring accurate tracking and timely management of incoming payments and the distribution of benefits.

Summary

House Bill 5201 seeks to amend provisions related to the Second Injury Fund in the context of late payments of assessments. The legislation establishes interest penalties for employers who fail to meet payment deadlines, thereby incentivizing timely contributions to the fund. The bill outlines specific penalties for noncompliance, including a maximum penalty of fifteen percent on unpaid assessments or a minimum fee, aiming to enhance the state's ability to manage funds associated with workers' compensation obligations effectively.

Sentiment

The sentiment surrounding HB 5201 appears to be largely positive among lawmakers who recognize the necessity of ensuring that funds are available to support injured workers. Proponents argue that the bill would strengthen the financial integrity of the Second Injury Fund and provide much-needed resources for workers' compensation claims. However, concerns have been raised by some stakeholders about the potential burden of penalties on struggling employers during economically challenging times.

Contention

Notable points of contention revolve around the balance between enforcing payment compliance and accommodating the financial realities faced by employers. Some critics question whether the penalties might disproportionately impact smaller businesses that may already be operating on thin margins. Additionally, there is an underlying debate about the adequacy of the current assessment rates and whether they truly reflect the necessary funding levels for the compensation needs of injured workers, which could affect the overall sustainability of the fund.