Connecticut 2019 Regular Session

Connecticut House Bill HB07241 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 4863 \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07241-R01-
4		-	HB.docx
5		-	1 of 8
	3	+
	4	+	LCO No. 4863 1 of 9
6	5
7	6		General Assembly Raised Bill No. 7241
8	7		January Session, 2019
9	8		LCO No. 4863
10	9
11	10
12		-	Referred to Committee on LABOR AND PUBLIC
13		-	EMPLOYEES
	11	+	Referred to Committee on LABOR AND PUBLIC EMPLOYEES
14	12
15	13
16	14		Introduced by:
17	15		(LAB)
	16	+
18	17
19	18
20	19
21	20		AN ACT CONCERNING MI NOR AND TECHNICAL CHANGES TO THE
22	21		WORKERS' COMPENSATIO N ACT.
23	22		Be it enacted by the Senate and House of Representatives in General
24	23		Assembly convened:
25	24
26	25		Section 1. (NEW) (Effective October 1, 2019) (a) Wherever the words 1
27	26		"workers' compensation c ommissioner" or "compensation 2
28	27		commissioner" are used in the general statutes, the words 3
29	28		"administrative law judge" shall be substituted in lieu thereof. 4
30	29		(b) The Legislative Commissioners' Office shall, in codifying the 5
31	30		provisions of this section, make such technical, grammatical and 6
32	31		punctuation changes as are necessary to carry out the purposes of this 7
33	32		section. 8
34	33		Sec. 2. Subsection (c) of section 31-280a of the general statutes is 9
35	34		repealed and the following is substituted in lieu thereof (Effective 10
36	35		October 1, 2019): 11
37	36		(c) The advisory board shall meet at least [twice] once in each 12
38		-	calendar quarter and at such other times as the chairman or the 13 Raised Bill No. 7241
	37	+	calendar quarter and at such other times as the chairman or the 13
	38	+	chairman of the Workers' Compensation Commission deem necessary. 14 Raised Bill No. 7241
39	39
40	40
41		-	LCO 4863 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07241-
42		-	R01-HB.docx }
43		-	2 of 8
44	41
45		-	chairman of the Workers' Compensation Commission deem necessary. 14
	42	+	LCO No. 4863 2 of 9
	43	+
46	44		All actions of the advisory board shall require the affirmative vote of 15
47	45		six members of the advisory board. The advisory board may bring any 16
48	46		matter related to the operation of the workers' compensation system to 17
49	47		the attention of the chairman of the Workers' Compensation 18
50	48		Commission. The advisory board may adopt any rules of procedure 19
51	49		that the board deems necessary to carry out its duties under this 20
52	50		chapter. 21
53	51		Sec. 3. Subsection (a) of section 31-283f of the general statutes is 22
54	52		repealed and the following is substituted in lieu thereof (Effective 23
55	53		October 1, 2019): 24
56	54		(a) A Statistical Division shall be established within the Workers' 25
57	55		Compensation [Commission] Commission's Management Information 26
58	56		Systems Division. The division shall compile and maintain statistics 27
59	57		concerning occupational injuries and diseases, voluntary agreements, 28
60	58		status of claims and commissioners' dockets. [The division shall be 29
61	59		administered by a full-time salaried director who shall be appointed 30
62	60		by the chairman of the Workers' Compensation Commission under the 31
63	61		provisions of chapter 67. The director shall report to the chairman.] 32
64	62		Sec. 4. Section 31-349 of the general statutes is repealed and the 33
65	63		following is substituted in lieu thereof (Effective October 1, 2019): 34
66	64		[(a)] The fact that an employee has suffered a previous disability, 35
67	65		shall not preclude him from compensation for a second injury, nor 36
68	66		preclude compensation for death resulting from the second injury. If 37
69	67		an employee having a previous disability incurs a second disability 38
70	68		from a second injury resulting in a permanent disability caused by 39
71	69		both the previous disability and the second injury which is materially 40
72	70		and substantially greater than the disability that would have resulted 41
73	71		from the second injury alone, he shall receive compensation for (1) the 42
74	72		entire amount of disability, including total disability, less any 43
75	73		compensation payable or paid with respect to the previous disability, 44
76		-	and (2) necessary medical care, as provided in this chapter, 45 Raised Bill No. 7241
	74	+	and (2) necessary medical care, as provided in this chap ter, 45
	75	+	notwithstanding the fact that part of the disability was due to a 46 Raised Bill No. 7241
77	76
78	77
79		-	LCO 4863 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07241-
80		-	R01-HB.docx }
81		-	3 of 8
82	78
83		-	notwithstanding the fact that part of the disability was due to a 46
	79	+	LCO No. 4863 3 of 9
	80	+
84	81		previous disability. For purposes of this [subsection,] section 47
85	82		"compensation payable or paid with respect to the previous disability" 48
86	83		includes compensation payable or paid pursuant to the provisions of 49
87	84		this chapter, as well as any other compensation payable or paid in 50
88	85		connection with the previous disability, regardless of the source of 51
89	86		such compensation. 52
90	87		[(b) As a condition precedent to the liability of the Second Injury 53
91	88		Fund, the employer or its insurer shall: (1) Notify the custodian of the 54
92	89		fund by certified mail no later than three calendar years after the date 55
93	90		of injury or no later than ninety days after completion of payments for 56
94	91		the first one hundred and four weeks of disability, whichever is earlier, 57
95	92		of its intent to transfer liability for the claim to the Second Injury Fund; 58
96	93		(2) include with the notification (A) copies of all medical reports, (B) an 59
97	94		accounting of all benefits paid, (C) copies of all findings, awards and 60
98	95		approved voluntary agreements, (D) the employer's or insurer's 61
99	96		estimate of the reserve amount to ultimate value for the claim, (E) a 62
100	97		two-thousand-dollar notification fee payable to the custodian to cover 63
101	98		the fund's costs in evaluating the claim proposed to be transferred and 64
102	99		(F) such other material as the custodian may require. The employer by 65
103	100		whom the employee is employed at the time of the second injury, or its 66
104	101		insurer, shall in the first instance pay all awards of compensation and 67
105	102		all medical expenses provided by this chapter for the first one hundred 68
106	103		four weeks of disability. Failure on the part of the employer or an 69
107	104		insurer to comply does not relieve the employer or insurer of its 70
108	105		obligation to continue furnishing compensation under the provisions 71
109	106		of this chapter. The custodian of the fund shall, by certified mail, notify 72
110	107		a self-insured employer or an insurer, as applicable, of the rejection of 73
111	108		the claim within ninety days after receiving the completed notification. 74
112	109		Any claim which is not rejected pursuant to this section shall be 75
113	110		deemed accepted, unless the custodian notifies the self-insured 76
114	111		employer or the insurer within the ninety-day period that up to an 77
115	112		additional ninety days is necessary to determine if the claim for 78
116		-	transfer will be accepted. If the claim is accepted for transfer, the 79 Raised Bill No. 7241
	113	+	transfer will be accepted. If the claim is accepted for transfer, the 79
	114	+	custodian shall file with the workers' compensation commissioner for 80 Raised Bill No. 7241
117	115
118	116
119		-	LCO 4863 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07241-
120		-	R01-HB.docx }
121		-	4 of 8
122	117
123		-	custodian shall file with the workers' compensation commissioner for 80
	118	+	LCO No. 4863 4 of 9
	119	+
124	120		the district in which the claim was filed, a form indicating that the 81
125	121		claim has been transferred to the Second Injury Fund and the date that 82
126	122		such claim was transferred and shall refund fifteen hundred dollars of 83
127	123		the notification fee to the self-insured employer or the insurer, as 84
128	124		applicable. A copy of the form shall be mailed to the self-insured 85
129	125		employer or the insurer and to the claimant. No further action by the 86
130	126		commissioner shall be required to transfer said claim. If the custodian 87
131	127		rejects the claim of the employer or its insurer, the question shall be 88
132	128		submitted by certified mail within thirty days of the receipt of the 89
133	129		notice of rejection by the employer or its insurer to the commissioner 90
134	130		having jurisdiction, and the employer or insurer shall continue 91
135	131		furnishing compensation until the outcome is finally decided. Claims 92
136	132		not submitted to the commissioner within said time period shall be 93
137	133		deemed withdrawn with prejudice. If the employer or insurer prevails, 94
138	134		or if the custodian accepts the claim all payments made beyond the 95
139	135		one-hundred-four-week period shall be reimbursed to the employer or 96
140	136		insurer by the Second Injury Fund. 97
141	137		(c) If the second injury of an employee results in the death of the 98
142	138		employee, and it is determined that the death would not have occurred 99
143	139		except for a preexisting permanent physical impairment, the employer 100
144	140		or its insurer shall, in the first instance, pay the funeral expense 101
145	141		described in this chapter, and shall pay death benefits as may be due 102
146	142		for the first one hundred four weeks. The employer or its insurer may 103
147	143		thereafter transfer liability for the death benefits to the Second Injury 104
148	144		Fund in accordance with the procedures set forth in subsection (b) of 105
149	145		this section. 106
150	146		(d) Notwithstanding the provisions of this section, no injury which 107
151	147		occurs on or after July 1, 1995, shall serve as a basis for transfer of a 108
152	148		claim to the Second Injury Fund under this section. All such claims 109
153	149		shall remain the responsibility of the employer or its insurer under the 110
154	150		provisions of this section. 111
155		-	(e) All claims for transfer of injuries for which the fund has been 112 Raised Bill No. 7241
	151	+	(e) All claims for transfer of injuries for which the fund has been 112
	152	+	notified prior to July 1, 1995, shall be deemed withdrawn with 113 Raised Bill No. 7241
156	153
157	154
158		-	LCO 4863 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07241-
159		-	R01-HB.docx }
160		-	5 of 8
161	155
162		-	notified prior to July 1, 1995, shall be deemed withdrawn with 113
	156	+	LCO No. 4863 5 of 9
	157	+
163	158		prejudice, unless the employer or its insurer notifies the custodian of 114
164	159		the fund by certified mail prior to October 1, 1995, of its intention to 115
165	160		pursue transfer pursuant to the provisions of this section. No 116
166	161		notification fee shall be required for notices submitted pursuant to this 117
167	162		subsection. This subsection shall not apply to notices submitted prior 118
168	163		to July 1, 1995, in response to the custodian's request, issued on March 119
169	164		15, 1995, for voluntary resubmission of notices. 120
170	165		(f) No claim, where the custodian of the Second Injury Fund was 121
171	166		served with a valid notice of intent to transfer under this section, shall 122
172	167		be eligible for transfer to the Second Injury Fund unless all 123
173	168		requirements for transfer, including payment of the one hundred and 124
174	169		four weeks of benefits by the employer or its insurer, have been 125
175	170		completed prior to July 1, 1999. All claims, pursuant to this section, not 126
176	171		eligible for transfer to the fund on or before July 1, 1999, will remain 127
177	172		the responsibility of the employer or its insurer.] 128
178	173		Sec. 5. Subsection (a) of section 31-354 of the general statutes is 129
179	174		repealed and the following is substituted in lieu thereof (Effective 130
180	175		October 1, 2019): 131
181	176		(a) There shall be a fund to be known as the Second Injury Fund. 132
182	177		Each employer, other than the state, shall, within thirty days after 133
183	178		notice given by the State Treasurer, pay to the State Treasurer for the 134
184	179		use of the state a sum in payment of his liability under this chapter 135
185	180		which shall be calculated in accordance with the Second Injury Fund 136
186	181		surcharge base, as defined in section 31-349g, [and shall be assessed in 137
187	182		accordance with subsection (f) of section 31-349,] sections 31-349g, 31-138
188	183		349h and 31-349i, this section, section 31-354b and sections 8 and 9 of 139
189	184		public act 96-242. Such sum shall be an amount sufficient to (1) pay the 140
190	185		debt service on state revenue bond obligations authorized to be issued 141
191	186		under and for the purposes set forth in section 31-354b including 142
192	187		reserve and covenant coverage requirements, (2) provide for costs and 143
193	188		expenses of operating the Second Injury Fund, and (3) pay Second 144
194		-	Injury Fund stipulations on claims settled by the custodian or other 145 Raised Bill No. 7241
	189	+	Injury Fund stipulations on claims settled by the custodian or other 145
	190	+	benefits payable out of the Second Injury Fund and not funded 146 Raised Bill No. 7241
195	191
196	192
197		-	LCO 4863 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07241-
198		-	R01-HB.docx }
199		-	6 of 8
200	193
201		-	benefits payable out of the Second Injury Fund and not funded 146
	194	+	LCO No. 4863 6 of 9
	195	+
202	196		through state revenue bond obligations and shall be determined in 147
203	197		accordance with the regulations adopted pursuant to the provisions of 148
204	198		section 31-349g. The custodian shall establish a factor for the annual 149
205	199		surcharge that caps such surcharge for the fiscal years ending June 30, 150
206	200		1996, 1997 and 1998. In determining such factor the custodian shall 151
207	201		consider the funding mechanism authorized by [subsection (f) of 152
208	202		section 31-349,] sections 31-349g, 31-349h and 31-349i, this section, 153
209	203		section 31-354b and sections 8 and 9 of public act 96-242, recognize that 154
210	204		an acceptable level of employer assessment is important to the vitality 155
211	205		of the economy of the state and nevertheless shall assure provision of 156
212	206		services to injured workers that enhances their ability to return to work 157
213	207		and improve their quality of life. In any event, such factor shall not 158
214	208		exceed, with respect to insured employers, a rate of fifteen per cent on 159
215	209		the Second Injury Fund surcharge base with respect to workers' 160
216	210		compensation and employers' liability policies and, with respect to 161
217	211		self-insured employers, a comparable percentage limitation 162
218	212		representing their pro rata share of any assessment. Any employer or 163
219	213		any insurance company acting as collection agent for the custodian of 164
220	214		the Second Injury Fund who fails to pay in accordance with such 165
221	215		regulations shall pay a penalty to the State Treasurer of fifteen per cent 166
222	216		on the unpaid assessment or surcharge or fifty dollars, whichever is 167
223	217		greater. Interest at the rate of six per cent per annum shall be charged 168
224	218		on any amounts owed on assessment audits or surcharge audits. For 169
225	219		self-insured employers interest shall accrue thirty days after notice 170
226	220		from the Second Injury Fund of the unpaid audit assessment. For 171
227	221		insurance companies, the interest shall accrue from the date of the 172
228	222		notice of audit errors or deficiencies as determined by the date 173
229	223		postmarked by the United States Postal Service. The State Treasurer 174
230	224		shall notify each employer of the penalty or interest provision with the 175
231	225		notice of assessment. Any partial payments made to the fund shall be 176
232	226		first applied to any unpaid penalty, then to any unpaid interest and the 177
233	227		remainder, if any, to the unpaid assessment or surcharge. Interest or 178
234	228		penalties shall be applied if assessment or surcharge reports or 179
235		-	payments are postmarked by the United States Postal Service after the 180 Raised Bill No. 7241
	229	+	payments are postmarked by the United States Postal Service after the 180
	230	+	designated due date. The sums received shall be accounted for 181 Raised Bill No. 7241
236	231
237	232
238		-	LCO 4863 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07241-
239		-	R01-HB.docx }
240		-	7 of 8
241	233
242		-	designated due date. The sums received shall be accounted for 181
	234	+	LCO No. 4863 7 of 9
	235	+
243	236		separately and apart from all other state moneys and the faith and 182
244	237		credit of the state of Connecticut is pledged for their safekeeping. The 183
245	238		State Treasurer shall be the custodian of the fund and all 184
246	239		disbursements from the fund shall be made by the Treasurer or the 185
247	240		Treasurer's deputies. The moneys of the fund shall be invested by the 186
248	241		Treasurer in accordance with applicable law and section 8 of public act 187
249	242		96-242. Interest, income and dividends from the investments shall be 188
250	243		credited to the fund. Each employer, each private insurance carrier 189
251	244		acting on behalf of any employer and each interlocal risk management 190
252	245		agency acting on behalf of any employer shall annually, on or before 191
253	246		April first, report to the State Treasurer, in the form prescribed by the 192
254	247		State Treasurer, the amount of money expended by or on behalf of the 193
255	248		employer in payments for the preceding calendar year. Each private 194
256	249		insurance carrier, each self-insurance group and each interlocal risk 195
257	250		management agency shall submit annually, on or before April first, to 196
258	251		the State Treasurer, in the form prescribed by the State Treasurer, a 197
259	252		report of the total Second Injury Fund surcharge base collected in the 198
260	253		preceding calendar year and a report of the projected total Second 199
261	254		Injury Fund surcharge base for the current calendar year. The fund 200
262	255		shall be used to provide the benefits set forth in section 31-306 for 201
263	256		adjustments in the compensation rate and payment of certain death 202
264	257		benefits, in section 31-307b for adjustments where there are relapses 203
265	258		after a return to work, in section 31-307c for totally disabled persons 204
266	259		injured prior to October 1, 1953, in section 31-349 for disabled or 205
267	260		handicapped employees and in section 31-355 for the payment of 206
268	261		benefits due injured employees whose employers or insurance carriers 207
269	262		have failed to pay the compensation, and medical expenses required 208
270	263		by this chapter, or any other compensation payable from the fund as 209
271	264		may be required by any provision contained in this chapter or any 210
272	265		other statute and to reimburse employers or insurance carriers for 211
273	266		payments made under subsection (b) of section 31 -307a. The 212
274	267		assessment required by this section is a condition of doing business in 213
275	268		this state and failure to pay the assessment, when due, shall result in 214
276		-	the denial of the privilege of doing business in this state or to self-215 Raised Bill No. 7241
	269	+	the denial of the privilege of doing business in this state or to self-215
	270	+	insure under section 31-284. Any administrative or other costs or 216 Raised Bill No. 7241
277	271
278	272
279		-	LCO 4863 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07241-
280		-	R01-HB.docx }
281		-	8 of 8
282	273
283		-	insure under section 31-284. Any administrative or other costs or 216
	274	+	LCO No. 4863 8 of 9
	275	+
284	276		expenses incurred by the State Treasurer in connection with carrying 217
285	277		out the provisions of this part, including the hiring of necessary 218
286	278		employees, shall be paid from the fund. The State Treasurer may adopt 219
287	279		regulations, in accordance with the provisions of chapter 54, 220
288	280		prescribing the practices, policies and procedures to be followed in the 221
289	281		administration of the Second Injury Fund. 222
290	282		Sec. 6. Subsection (a) of section 31-355a of the general statutes is 223
291	283		repealed and the following is substituted in lieu thereof (Effective 224
292	284		October 1, 2019): 225
293	285		(a) Whenever the Second Injury Fund is required, pursuant to 226
294	286		section 31-355 [or subsection (c) of section 31-349,] to pay benefits or 227
295	287		compensation mandated by the provisions of this chapter for any 228
296	288		employer or insurer who fails or is unable to make such payments, the 229
297	289		amount so paid by the fund shall be collectible by any means provided 230
298	290		by law for the collection of any tax due the state of Connecticut or any 231
299	291		subdivision thereof, including any means provided by section 12-35. 232
300	292		Tax warrants referred to in said section 12-35 may be signed by the 233
301	293		State Treasurer. 234
302	294		Sec. 7. Sections 31-276a, 31-298a and 31-304 of the general statutes 235
303	295		are repealed. (Effective October 1, 2019) 236
304	296		This act shall take effect as follows and shall amend the following
305	297		sections:
306	298
307	299		Section 1 October 1, 2019 New section
308	300		Sec. 2 October 1, 2019 31-280a(c)
309	301		Sec. 3 October 1, 2019 31-283f(a)
310	302		Sec. 4 October 1, 2019 31-349
311	303		Sec. 5 October 1, 2019 31-354(a)
312	304		Sec. 6 October 1, 2019 31-355a(a)
313	305		Sec. 7 October 1, 2019 Repealer section
314	306
315		-	LAB Joint Favorable Raised Bill No. 7241
	307	+	Statement of Purpose:
	308	+	To make minor and technical changes to the Workers' Compensation
	309	+	Act. Raised Bill No. 7241
316	310
317	311
318		-	LCO 4863 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07241-
319		-	R01-HB.docx }
320		-	9 of 9
321	312
	313	+	LCO No. 4863 9 of 9
	314	+
	315	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	316	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	317	+	not underlined.]
322	318