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repealed and the following is substituted in lieu thereof (Effective 10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repealed and the following is substituted in lieu thereof (Effective 23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