Connecticut 2020 Regular Session

Connecticut Senate Bill SB00351 Compare Versions

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55 General Assembly Raised Bill No. 351
66 February Session, 2020
77 LCO No. 1812
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1010 Referred to Committee on LABOR AND PUBLIC EMPLOYEES
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1313 Introduced by:
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1919 AN ACT CONCERNING MI NOR AND TECHNICAL CH ANGES TO THE
2020 WORKERS' COMPENSATIO N ACT.
2121 Be it enacted by the Senate and House of Representatives in General
2222 Assembly convened:
2323
2424 Section 1. (NEW) (Effective October 1, 2020) (a) (1) Wherever the terms 1
2525 "workers' compensation commissioner", "compensation commissioner" 2
2626 or "commissioner" are used to denote a workers' compensation 3
2727 commissioner in the following sections of the general statutes, the terms 4
2828 "administrative law judge" shall be substituted in lieu thereof: 4-186, 5-5
2929 170, 5-192h, 17b-341, 19a-641, 28-14, 29-4a, 31-275, 31-276, 31-277, 31-278, 6
3030 31-279, 31-280, 31-280a, as amended by this act, 31-280b, 31-282, 31-283, 7
3131 31-283d, 31-283e, 31-283f, as amended by this act, 31-284c, 31-286, 31-8
3232 286a, 31-286b, 31-288, 31-289a, 31-290a, 31-293, 31-294b, 31-294c, 31-9
3333 294d, 31-294e, 31-294f, 31-296, 31-296a, 31-297, 31-297a, 31-298, as 10
3434 amended by this act, 31-299, 31-299a, 31-299b, 31-300, 31-301, 31-301c, 11
3535 31-301d, 31-302, 31-306, 31-306b, 31-307a, 31-308, 31-308a, 31-310, 31-312, 12
3636 31-313, 31-315, 31-316, 31-318, 31-321, 31-323, 31-326, 31-327, 31-329, 31-13
3737 341, 31-342, 31-343, 31-349, as amended by this act, 31-349b, 31-349c, 31-14
3838 353, 31-355, 38a-470, 38a-500, 38a-527, 46b-231, 51-49, 51-49a, 51-49b, 51-15
3939 49c, 51-49d, 51-49g, 51-49h, 51-49i, 51-49j, 51-50, 51-50a, 51-50b, 51-51, 16 Raised Bill No. 351
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4545 51-51h, 51-51i, 51-51k, 51-51l, 51-51m, 51-51n, 51-51o, 51-51p, 51-51q, 51-17
4646 51r, 51-51s, 51-63 and 52-149a. 18
4747 (2) Wherever the terms "workers' compensation commissioner", 19
4848 "compensation commissioner" or "commissioner" are used to denote a 20
4949 workers' compensation commissioner in any public act of the 2020 21
5050 session, the term "administrative law judge" shall be substituted in lieu 22
5151 thereof. 23
5252 (b) The Legislative Commissioners' Office shall, in codifying said 24
5353 sections of the general statutes pursuant to subdivision (1) of subsection 25
5454 (a) of this section or any public act of the 2020 session pursuant to 26
5555 subdivision (2) of subsection (a) of this section, make such technical, 27
5656 grammatical and punctuation changes as are necessary to carry out the 28
5757 purposes of this section. 29
5858 Sec. 2. Subsection (c) of section 31-280a of the general statutes is 30
5959 repealed and the following is substituted in lieu thereof (Effective October 31
6060 1, 2020): 32
6161 (c) The advisory board shall meet at least [twice] once in each 33
6262 calendar quarter and at such other times as the chairman or the 34
6363 chairman of the Workers' Compensation Commission deem necessary. 35
6464 All actions of the advisory board shall require the affirmative vote of six 36
6565 members of the advisory board. The advisory board may bring any 37
6666 matter related to the operation of the workers' compensation system to 38
6767 the attention of the chairman of the Workers' Compensation 39
6868 Commission. The advisory board may adopt any rules of procedure that 40
6969 the board deems necessary to carry out its duties under this chapter. 41
7070 Sec. 3. Section 31-283f of the general statutes is repealed and the 42
7171 following is substituted in lieu thereof (Effective October 1, 2020): 43
7272 (a) A Statistical Division shall be established within the Workers' 44
7373 Compensation Commission. The division shall compile and maintain 45
7474 statistics concerning occupational injuries and diseases, voluntary 46
7575 agreements, status of claims and commissioners' dockets. [The division 47 Raised Bill No. 351
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8181 shall be administered by a full-time salaried director who shall be 48
8282 appointed by the chairman of the Workers' Compensation Commission 49
8383 under the provisions of chapter 67. The director shall report to the 50
8484 chairman.] 51
8585 (b) Sufficient funding for the establishment and maintenance of the 52
8686 Workers' Compensation Statistical Division shall be supplied from the 53
8787 Administrative Costs Fund, as provided in section 31-345. 54
8888 Sec. 4. Section 31-298 of the general statutes is repealed and the 55
8989 following is substituted in lieu thereof (Effective October 1, 2020): 56
9090 Both parties may appear at any hearing, either in person or by 57
9191 attorney or other accredited representative, and no formal pleadings 58
9292 shall be required, beyond any informal notices that the commission 59
9393 approves. In all cases and hearings under the provisions of this chapter, 60
9494 the commissioner shall proceed, so far as possible, in accordance with 61
9595 the rules of equity. He shall not be bound by the ordinary common law 62
9696 or statutory rules of evidence or procedure, but shall make inquiry, 63
9797 through oral testimony, deposition testimony or written and printed 64
9898 records, in a manner that is best calculated to ascertain the substantial 65
9999 rights of the parties and carry out the provisions and intent of this 66
100100 chapter. No fees shall be charged to either party by the commissioner in 67
101101 connection with any hearing or other procedure, but the commissioner 68
102102 shall furnish at cost (1) certified copies of any testimony, award or other 69
103103 matter which may be of record in his office, and (2) duplicates of audio 70
104104 [cassette] recordings of any formal hearings. Witnesses subpoenaed by 71
105105 the commissioner shall be allowed the fees and traveling expenses that 72
106106 are allowed in civil actions, to be paid by the party in whose interest the 73
107107 witnesses are subpoenaed. When liability or extent of disability is 74
108108 contested by formal hearing before the commissioner, the claimant shall 75
109109 be entitled, if he prevails on final judgment, to payment for oral 76
110110 testimony or deposition testimony rendered on his behalf by a 77
111111 competent physician, surgeon or other medical provider, including the 78
112112 stenographic and videotape recording costs thereof, in connection with 79
113113 the claim, the commissioner to determine the reasonableness of such 80 Raised Bill No. 351
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119119 charges. 81
120120 Sec. 5. Section 31-349 of the general statutes is repealed and the 82
121121 following is substituted in lieu thereof (Effective October 1, 2020): 83
122122 [(a)] The fact that an employee has suffered a previous disability, 84
123123 shall not preclude him from compensation for a second injury, nor 85
124124 preclude compensation for death resulting from the second injury. If an 86
125125 employee having a previous disability incurs a second disability from a 87
126126 second injury resulting in a permanent disability caused by both the 88
127127 previous disability and the second injury which is materially and 89
128128 substantially greater than the disability that would have resulted from 90
129129 the second injury alone, he shall receive compensation for (1) the entire 91
130130 amount of disability, including total disability, less any compensation 92
131131 payable or paid with respect to the previous disability, and (2) necessary 93
132132 medical care, as provided in this chapter, notwithstanding the fact that 94
133133 part of the disability was due to a previous disability. For purposes of 95
134134 this [subsection] section, "compensation payable or paid with respect to 96
135135 the previous disability" includes compensation payable or paid 97
136136 pursuant to the provisions of this chapter, as well as any other 98
137137 compensation payable or paid in connection with the previous 99
138138 disability, regardless of the source of such compensation. 100
139139 [(b) As a condition precedent to the liability of the Second Injury 101
140140 Fund, the employer or its insurer shall: (1) Notify the custodian of the 102
141141 fund by certified mail no later than three calendar years after the date of 103
142142 injury or no later than ninety days after completion of payments for the 104
143143 first one hundred and four weeks of disability, whichever is earlier, of 105
144144 its intent to transfer liability for the claim to the Second Injury Fund; (2) 106
145145 include with the notification (A) copies of all medical reports, (B) an 107
146146 accounting of all benefits paid, (C) copies of all findings, awards and 108
147147 approved voluntary agreements, (D) the employer's or insurer's 109
148148 estimate of the reserve amount to ultimate value for the claim, (E) a two-110
149149 thousand-dollar notification fee payable to the custodian to cover the 111
150150 fund's costs in evaluating the claim proposed to be transferred and (F) 112
151151 such other material as the custodian may require. The employer by 113 Raised Bill No. 351
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157157 whom the employee is employed at the time of the second injury, or its 114
158158 insurer, shall in the first instance pay all awards of compensation and 115
159159 all medical expenses provided by this chapter for the first one hundred 116
160160 four weeks of disability. Failure on the part of the employer or an insurer 117
161161 to comply does not relieve the employer or insurer of its obligation to 118
162162 continue furnishing compensation under the provisions of this chapter. 119
163163 The custodian of the fund shall, by certified mail, notify a self-insured 120
164164 employer or an insurer, as applicable, of the rejection of the claim within 121
165165 ninety days after receiving the completed notification. Any claim which 122
166166 is not rejected pursuant to this section shall be deemed accepted, unless 123
167167 the custodian notifies the self-insured employer or the insurer within 124
168168 the ninety-day period that up to an additional ninety days is necessary 125
169169 to determine if the claim for transfer will be accepted. If the claim is 126
170170 accepted for transfer, the custodian shall file with the workers' 127
171171 compensation commissioner for the district in which the claim was filed, 128
172172 a form indicating that the claim has been transferred to the Second 129
173173 Injury Fund and the date that such claim was transferred and shall 130
174174 refund fifteen hundred dollars of the notification fee to the self-insured 131
175175 employer or the insurer, as applicable. A copy of the form shall be 132
176176 mailed to the self-insured employer or the insurer and to the claimant. 133
177177 No further action by the commissioner shall be required to transfer said 134
178178 claim. If the custodian rejects the claim of the employer or its insurer, 135
179179 the question shall be submitted by certified mail within thirty days of 136
180180 the receipt of the notice of rejection by the employer or its insurer to the 137
181181 commissioner having jurisdiction, and the employer or insurer shall 138
182182 continue furnishing compensation until the outcome is finally decided. 139
183183 Claims not submitted to the commissioner within said time period shall 140
184184 be deemed withdrawn with prejudice. If the employer or insurer 141
185185 prevails, or if the custodian accepts the claim all payments made beyond 142
186186 the one-hundred-four-week period shall be reimbursed to the employer 143
187187 or insurer by the Second Injury Fund. 144
188188 (c) If the second injury of an employee results in the death of the 145
189189 employee, and it is determined that the death would not have occurred 146
190190 except for a preexisting permanent physical impairment, the employer 147 Raised Bill No. 351
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196196 or its insurer shall, in the first instance, pay the funeral expense 148
197197 described in this chapter, and shall pay death benefits as may be due for 149
198198 the first one hundred four weeks. The employer or its insurer may 150
199199 thereafter transfer liability for the death benefits to the Second Injury 151
200200 Fund in accordance with the procedures set forth in subsection (b) of 152
201201 this section. 153
202202 (d) Notwithstanding the provisions of this section, no injury which 154
203203 occurs on or after July 1, 1995, shall serve as a basis for transfer of a claim 155
204204 to the Second Injury Fund under this section. All such claims shall 156
205205 remain the responsibility of the employer or its insurer under the 157
206206 provisions of this section. 158
207207 (e) All claims for transfer of injuries for which the fund has been 159
208208 notified prior to July 1, 1995, shall be deemed withdrawn with prejudice, 160
209209 unless the employer or its insurer notifies the custodian of the fund by 161
210210 certified mail prior to October 1, 1995, of its intention to pursue transfer 162
211211 pursuant to the provisions of this section. No notification fee shall be 163
212212 required for notices submitted pursuant to this subsection. This 164
213213 subsection shall not apply to notices submitted prior to July 1, 1995, in 165
214214 response to the custodian's request, issued on March 15, 1995, for 166
215215 voluntary resubmission of notices. 167
216216 (f) No claim, where the custodian of the Second Injury Fund was 168
217217 served with a valid notice of intent to transfer under this section, shall 169
218218 be eligible for transfer to the Second Injury Fund unless all requirements 170
219219 for transfer, including payment of the one hundred and four weeks of 171
220220 benefits by the employer or its insurer, have been completed prior to 172
221221 July 1, 1999. All claims, pursuant to this section, not eligible for transfer 173
222222 to the fund on or before July 1, 1999, will remain the responsibility of the 174
223223 employer or its insurer.] 175
224224 Sec. 6. Subsection (a) of section 31-354 of the general statutes is 176
225225 repealed and the following is substituted in lieu thereof (Effective October 177
226226 1, 2020): 178
227227 (a) There shall be a fund to be known as the Second Injury Fund. Each 179 Raised Bill No. 351
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233233 employer, other than the state, shall, within thirty days after notice 180
234234 given by the State Treasurer, pay to the State Treasurer for the use of the 181
235235 state a sum in payment of his liability under this chapter which shall be 182
236236 calculated in accordance with the Second Injury Fund surcharge base, 183
237237 as defined in section 31-349g, [and shall be assessed in accordance with 184
238238 subsection (f) of section 31-349,] sections 31-349g, 31-349h and 31-349i, 185
239239 this section, section 31-354b and sections 8 and 9 of public act 96-242. 186
240240 Such sum shall be an amount sufficient to (1) pay the debt service on 187
241241 state revenue bond obligations authorized to be issued under and for 188
242242 the purposes set forth in section 31-354b including reserve and covenant 189
243243 coverage requirements, (2) provide for costs and expenses of operating 190
244244 the Second Injury Fund, and (3) pay Second Injury Fund stipulations on 191
245245 claims settled by the custodian or other benefits payable out of the 192
246246 Second Injury Fund and not funded through state revenue bond 193
247247 obligations and shall be determined in accordance with the regulations 194
248248 adopted pursuant to the provisions of section 31-349g. The custodian 195
249249 shall establish a factor for the annual surcharge that caps such surcharge 196
250250 for the fiscal years ending June 30, 1996, 1997 and 1998. In determining 197
251251 such factor the custodian shall consider the funding mechanism 198
252252 authorized by [subsection (f) of section 31-349,] sections 31-349g, 31-199
253253 349h and 31-349i, this section, section 31-354b and sections 8 and 9 of 200
254254 public act 96-242, recognize that an acceptable level of employer 201
255255 assessment is important to the vitality of the economy of the state and 202
256256 nevertheless shall assure provision of services to injured workers that 203
257257 enhances their ability to return to work and improve their quality of life. 204
258258 In any event, such factor shall not exceed, with respect to insured 205
259259 employers, a rate of fifteen per cent on the Second Injury Fund 206
260260 surcharge base with respect to workers' compensation and employers' 207
261261 liability policies and, with respect to self-insured employers, a 208
262262 comparable percentage limitation representing their pro rata share of 209
263263 any assessment. Any employer or any insurance company acting as 210
264264 collection agent for the custodian of the Second Injury Fund who fails to 211
265265 pay in accordance with such regulations shall pay a penalty to the State 212
266266 Treasurer of fifteen per cent on the unpaid assessment or surcharge or 213
267267 fifty dollars, whichever is greater. Interest at the rate of six per cent per 214 Raised Bill No. 351
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273273 annum shall be charged on any amounts owed on assessment audits or 215
274274 surcharge audits. For self-insured employers interest shall accrue thirty 216
275275 days after notice from the Second Injury Fund of the unpaid audit 217
276276 assessment. For insurance companies, the interest shall accrue from the 218
277277 date of the notice of audit errors or deficiencies as determined by the 219
278278 date postmarked by the United States Postal Service. The State Treasurer 220
279279 shall notify each employer of the penalty or interest provision with the 221
280280 notice of assessment. Any partial payments made to the fund shall be 222
281281 first applied to any unpaid penalty, then to any unpaid interest and the 223
282282 remainder, if any, to the unpaid assessment or surcharge. Interest or 224
283283 penalties shall be applied if assessment or surcharge reports or 225
284284 payments are postmarked by the United States Postal Service after the 226
285285 designated due date. The sums received shall be accounted for 227
286286 separately and apart from all other state moneys and the faith and credit 228
287287 of the state of Connecticut is pledged for their safekeeping. The State 229
288288 Treasurer shall be the custodian of the fund and all disbursements from 230
289289 the fund shall be made by the Treasurer or the Treasurer's deputies. The 231
290290 moneys of the fund shall be invested by the Treasurer in accordance 232
291291 with applicable law and section 8 of public act 96-242. Interest, income 233
292292 and dividends from the investments shall be credited to the fund. Each 234
293293 employer, each private insurance carrier acting on behalf of any 235
294294 employer and each interlocal risk management agency acting on behalf 236
295295 of any employer shall annually, on or before April first, report to the 237
296296 State Treasurer, in the form prescribed by the State Treasurer, the 238
297297 amount of money expended by or on behalf of the employer in 239
298298 payments for the preceding calendar year. Each private insurance 240
299299 carrier, each self-insurance group and each interlocal risk management 241
300300 agency shall submit annually, on or before April first, to the State 242
301301 Treasurer, in the form prescribed by the State Treasurer, a report of the 243
302302 total Second Injury Fund surcharge base collected in the preceding 244
303303 calendar year and a report of the projected total Second Injury Fund 245
304304 surcharge base for the current calendar year. The fund shall be used to 246
305305 provide the benefits set forth in section 31-306 for adjustments in the 247
306306 compensation rate and payment of certain death benefits, in section 31-248
307307 307b for adjustments where there are relapses after a return to work, in 249 Raised Bill No. 351
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313313 section 31-307c for totally disabled persons injured prior to October 1, 250
314314 1953, in section 31-349, as amended by this act, for disabled or 251
315315 handicapped employees and in section 31-355 for the payment of 252
316316 benefits due injured employees whose employers or insurance carriers 253
317317 have failed to pay the compensation, and medical expenses required by 254
318318 this chapter, or any other compensation payable from the fund as may 255
319319 be required by any provision contained in this chapter or any other 256
320320 statute and to reimburse employers or insurance carriers for payments 257
321321 made under subsection (b) of section 31-307a. The assessment required 258
322322 by this section is a condition of doing business in this state and failure 259
323323 to pay the assessment, when due, shall result in the denial of the 260
324324 privilege of doing business in this state or to self-insure under section 261
325325 31-284. Any administrative or other costs or expenses incurred by the 262
326326 State Treasurer in connection with carrying out the provisions of this 263
327327 part, including the hiring of necessary employees, shall be paid from the 264
328328 fund. The State Treasurer may adopt regulations, in accordance with the 265
329329 provisions of chapter 54, prescribing the practices, policies and 266
330330 procedures to be followed in the administration of the Second Injury 267
331331 Fund. 268
332332 Sec. 7. Subsection (a) of section 31-355a of the general statutes is 269
333333 repealed and the following is substituted in lieu thereof (Effective October 270
334334 1, 2020): 271
335335 (a) Whenever the Second Injury Fund is required, pursuant to section 272
336336 31-355 [or subsection (c) of section 31-349,] to pay benefits or 273
337337 compensation mandated by the provisions of this chapter for any 274
338338 employer or insurer who fails or is unable to make such payments, the 275
339339 amount so paid by the fund shall be collectible by any means provided 276
340340 by law for the collection of any tax due the state of Connecticut or any 277
341341 subdivision thereof, including any means provided by section 12-35. 278
342342 Tax warrants referred to in said section 12-35 may be signed by the State 279
343343 Treasurer. 280
344344 Sec. 8. Sections 31-276a, 31-298a and 31-304 of the general statutes are 281
345345 repealed. (Effective October 1, 2020) 282 Raised Bill No. 351
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351351 This act shall take effect as follows and shall amend the following
352352 sections:
353353
354354 Section 1 October 1, 2020 New section
355355 Sec. 2 October 1, 2020 31-280a(c)
356356 Sec. 3 October 1, 2020 31-283f
357357 Sec. 4 October 1, 2020 31-298
358358 Sec. 5 October 1, 2020 31-349
359359 Sec. 6 October 1, 2020 31-354(a)
360360 Sec. 7 October 1, 2020 31-355a(a)
361361 Sec. 8 October 1, 2020 Repealer section
362362
363363 Statement of Purpose:
364364 To make minor and technical changes to the Workers' Compensation
365365 Act.
366366 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
367367 that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
368368 underlined.]
369369