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General Assembly Raised Bill No. 351
February Session, 2020
LCO No. 1812
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, 2020) (a) (1) Wherever the terms 1
"workers' compensation commissioner", "compensation commissioner" 2
or "commissioner" are used to denote a workers' compensation 3
commissioner in the following sections of the general statutes, the terms 4
"administrative law judge" shall be substituted in lieu thereof: 4-186, 5-5
170, 5-192h, 17b-341, 19a-641, 28-14, 29-4a, 31-275, 31-276, 31-277, 31-278, 6
31-279, 31-280, 31-280a, as amended by this act, 31-280b, 31-282, 31-283, 7
31-283d, 31-283e, 31-283f, as amended by this act, 31-284c, 31-286, 31-8
286a, 31-286b, 31-288, 31-289a, 31-290a, 31-293, 31-294b, 31-294c, 31-9
294d, 31-294e, 31-294f, 31-296, 31-296a, 31-297, 31-297a, 31-298, as 10
amended by this act, 31-299, 31-299a, 31-299b, 31-300, 31-301, 31-301c, 11
31-301d, 31-302, 31-306, 31-306b, 31-307a, 31-308, 31-308a, 31-310, 31-312, 12
31-313, 31-315, 31-316, 31-318, 31-321, 31-323, 31-326, 31-327, 31-329, 31-13
341, 31-342, 31-343, 31-349, as amended by this act, 31-349b, 31-349c, 31-14
353, 31-355, 38a-470, 38a-500, 38a-527, 46b-231, 51-49, 51-49a, 51-49b, 51-15
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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51-51h, 51-51i, 51-51k, 51-51l, 51-51m, 51-51n, 51-51o, 51-51p, 51-51q, 51-17
51r, 51-51s, 51-63 and 52-149a. 18
(2) Wherever the terms "workers' compensation commissioner", 19
"compensation commissioner" or "commissioner" are used to denote a 20
workers' compensation commissioner in any public act of the 2020 21
session, the term "administrative law judge" shall be substituted in lieu 22
thereof. 23
(b) The Legislative Commissioners' Office shall, in codifying said 24
sections of the general statutes pursuant to subdivision (1) of subsection 25
(a) of this section or any public act of the 2020 session pursuant to 26
subdivision (2) of subsection (a) of this section, make such technical, 27
grammatical and punctuation changes as are necessary to carry out the 28
purposes of this section. 29
Sec. 2. Subsection (c) of section 31-280a of the general statutes is 30
repealed and the following is substituted in lieu thereof (Effective October 31
1, 2020): 32
(c) The advisory board shall meet at least [twice] once in each 33
calendar quarter and at such other times as the chairman or the 34
chairman of the Workers' Compensation Commission deem necessary. 35
All actions of the advisory board shall require the affirmative vote of six 36
members of the advisory board. The advisory board may bring any 37
matter related to the operation of the workers' compensation system to 38
the attention of the chairman of the Workers' Compensation 39
Commission. The advisory board may adopt any rules of procedure that 40
the board deems necessary to carry out its duties under this chapter. 41
Sec. 3. Section 31-283f of the general statutes is repealed and the 42
following is substituted in lieu thereof (Effective October 1, 2020): 43
(a) A Statistical Division shall be established within the Workers' 44
Compensation Commission. The division shall compile and maintain 45
statistics concerning occupational injuries and diseases, voluntary 46
agreements, status of claims and commissioners' dockets. [The division 47 Raised Bill No. 351
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shall be administered by a full-time salaried director who shall be 48
appointed by the chairman of the Workers' Compensation Commission 49
under the provisions of chapter 67. The director shall report to the 50
chairman.] 51
(b) Sufficient funding for the establishment and maintenance of the 52
Workers' Compensation Statistical Division shall be supplied from the 53
Administrative Costs Fund, as provided in section 31-345. 54
Sec. 4. Section 31-298 of the general statutes is repealed and the 55
following is substituted in lieu thereof (Effective October 1, 2020): 56
Both parties may appear at any hearing, either in person or by 57
attorney or other accredited representative, and no formal pleadings 58
shall be required, beyond any informal notices that the commission 59
approves. In all cases and hearings under the provisions of this chapter, 60
the commissioner shall proceed, so far as possible, in accordance with 61
the rules of equity. He shall not be bound by the ordinary common law 62
or statutory rules of evidence or procedure, but shall make inquiry, 63
through oral testimony, deposition testimony or written and printed 64
records, in a manner that is best calculated to ascertain the substantial 65
rights of the parties and carry out the provisions and intent of this 66
chapter. No fees shall be charged to either party by the commissioner in 67
connection with any hearing or other procedure, but the commissioner 68
shall furnish at cost (1) certified copies of any testimony, award or other 69
matter which may be of record in his office, and (2) duplicates of audio 70
[cassette] recordings of any formal hearings. Witnesses subpoenaed by 71
the commissioner shall be allowed the fees and traveling expenses that 72
are allowed in civil actions, to be paid by the party in whose interest the 73
witnesses are subpoenaed. When liability or extent of disability is 74
contested by formal hearing before the commissioner, the claimant shall 75
be entitled, if he prevails on final judgment, to payment for oral 76
testimony or deposition testimony rendered on his behalf by a 77
competent physician, surgeon or other medical provider, including the 78
stenographic and videotape recording costs thereof, in connection with 79
the claim, the commissioner to determine the reasonableness of such 80 Raised Bill No. 351
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charges. 81
Sec. 5. Section 31-349 of the general statutes is repealed and the 82
following is substituted in lieu thereof (Effective October 1, 2020): 83
[(a)] The fact that an employee has suffered a previous disability, 84
shall not preclude him from compensation for a second injury, nor 85
preclude compensation for death resulting from the second injury. If an 86
employee having a previous disability incurs a second disability from a 87
second injury resulting in a permanent disability caused by both the 88
previous disability and the second injury which is materially and 89
substantially greater than the disability that would have resulted from 90
the second injury alone, he shall receive compensation for (1) the entire 91
amount of disability, including total disability, less any compensation 92
payable or paid with respect to the previous disability, and (2) necessary 93
medical care, as provided in this chapter, notwithstanding the fact that 94
part of the disability was due to a previous disability. For purposes of 95
this [subsection] section, "compensation payable or paid with respect to 96
the previous disability" includes compensation payable or paid 97
pursuant to the provisions of this chapter, as well as any other 98
compensation payable or paid in connection with the previous 99
disability, regardless of the source of such compensation. 100
[(b) As a condition precedent to the liability of the Second Injury 101
Fund, the employer or its insurer shall: (1) Notify the custodian of the 102
fund by certified mail no later than three calendar years after the date of 103
injury or no later than ninety days after completion of payments for the 104
first one hundred and four weeks of disability, whichever is earlier, of 105
its intent to transfer liability for the claim to the Second Injury Fund; (2) 106
include with the notification (A) copies of all medical reports, (B) an 107
accounting of all benefits paid, (C) copies of all findings, awards and 108
approved voluntary agreements, (D) the employer's or insurer's 109
estimate of the reserve amount to ultimate value for the claim, (E) a two-110
thousand-dollar notification fee payable to the custodian to cover the 111
fund's costs in evaluating the claim proposed to be transferred and (F) 112
such other material as the custodian may require. The employer by 113 Raised Bill No. 351
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whom the employee is employed at the time of the second injury, or its 114
insurer, shall in the first instance pay all awards of compensation and 115
all medical expenses provided by this chapter for the first one hundred 116
four weeks of disability. Failure on the part of the employer or an insurer 117
to comply does not relieve the employer or insurer of its obligation to 118
continue furnishing compensation under the provisions of this chapter. 119
The custodian of the fund shall, by certified mail, notify a self-insured 120
employer or an insurer, as applicable, of the rejection of the claim within 121
ninety days after receiving the completed notification. Any claim which 122
is not rejected pursuant to this section shall be deemed accepted, unless 123
the custodian notifies the self-insured employer or the insurer within 124
the ninety-day period that up to an additional ninety days is necessary 125
to determine if the claim for transfer will be accepted. If the claim is 126
accepted for transfer, the custodian shall file with the workers' 127
compensation commissioner for the district in which the claim was filed, 128
a form indicating that the claim has been transferred to the Second 129
Injury Fund and the date that such claim was transferred and shall 130
refund fifteen hundred dollars of the notification fee to the self-insured 131
employer or the insurer, as applicable. A copy of the form shall be 132
mailed to the self-insured employer or the insurer and to the claimant. 133
No further action by the commissioner shall be required to transfer said 134
claim. If the custodian rejects the claim of the employer or its insurer, 135
the question shall be submitted by certified mail within thirty days of 136
the receipt of the notice of rejection by the employer or its insurer to the 137
commissioner having jurisdiction, and the employer or insurer shall 138
continue furnishing compensation until the outcome is finally decided. 139
Claims not submitted to the commissioner within said time period shall 140
be deemed withdrawn with prejudice. If the employer or insurer 141
prevails, or if the custodian accepts the claim all payments made beyond 142
the one-hundred-four-week period shall be reimbursed to the employer 143
or insurer by the Second Injury Fund. 144
(c) If the second injury of an employee results in the death of the 145
employee, and it is determined that the death would not have occurred 146
except for a preexisting permanent physical impairment, the employer 147 Raised Bill No. 351
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or its insurer shall, in the first instance, pay the funeral expense 148
described in this chapter, and shall pay death benefits as may be due for 149
the first one hundred four weeks. The employer or its insurer may 150
thereafter transfer liability for the death benefits to the Second Injury 151
Fund in accordance with the procedures set forth in subsection (b) of 152
this section. 153
(d) Notwithstanding the provisions of this section, no injury which 154
occurs on or after July 1, 1995, shall serve as a basis for transfer of a claim 155
to the Second Injury Fund under this section. All such claims shall 156
remain the responsibility of the employer or its insurer under the 157
provisions of this section. 158
(e) All claims for transfer of injuries for which the fund has been 159
notified prior to July 1, 1995, shall be deemed withdrawn with prejudice, 160
unless the employer or its insurer notifies the custodian of the fund by 161
certified mail prior to October 1, 1995, of its intention to pursue transfer 162
pursuant to the provisions of this section. No notification fee shall be 163
required for notices submitted pursuant to this subsection. This 164
subsection shall not apply to notices submitted prior to July 1, 1995, in 165
response to the custodian's request, issued on March 15, 1995, for 166
voluntary resubmission of notices. 167
(f) No claim, where the custodian of the Second Injury Fund was 168
served with a valid notice of intent to transfer under this section, shall 169
be eligible for transfer to the Second Injury Fund unless all requirements 170
for transfer, including payment of the one hundred and four weeks of 171
benefits by the employer or its insurer, have been completed prior to 172
July 1, 1999. All claims, pursuant to this section, not eligible for transfer 173
to the fund on or before July 1, 1999, will remain the responsibility of the 174
employer or its insurer.] 175
Sec. 6. Subsection (a) of section 31-354 of the general statutes is 176
repealed and the following is substituted in lieu thereof (Effective October 177
1, 2020): 178
(a) There shall be a fund to be known as the Second Injury Fund. Each 179 Raised Bill No. 351
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employer, other than the state, shall, within thirty days after notice 180
given by the State Treasurer, pay to the State Treasurer for the use of the 181
state a sum in payment of his liability under this chapter which shall be 182
calculated in accordance with the Second Injury Fund surcharge base, 183
as defined in section 31-349g, [and shall be assessed in accordance with 184
subsection (f) of section 31-349,] sections 31-349g, 31-349h and 31-349i, 185
this section, section 31-354b and sections 8 and 9 of public act 96-242. 186
Such sum shall be an amount sufficient to (1) pay the debt service on 187
state revenue bond obligations authorized to be issued under and for 188
the purposes set forth in section 31-354b including reserve and covenant 189
coverage requirements, (2) provide for costs and expenses of operating 190
the Second Injury Fund, and (3) pay Second Injury Fund stipulations on 191
claims settled by the custodian or other benefits payable out of the 192
Second Injury Fund and not funded through state revenue bond 193
obligations and shall be determined in accordance with the regulations 194
adopted pursuant to the provisions of section 31-349g. The custodian 195
shall establish a factor for the annual surcharge that caps such surcharge 196
for the fiscal years ending June 30, 1996, 1997 and 1998. In determining 197
such factor the custodian shall consider the funding mechanism 198
authorized by [subsection (f) of section 31-349,] sections 31-349g, 31-199
349h and 31-349i, this section, section 31-354b and sections 8 and 9 of 200
public act 96-242, recognize that an acceptable level of employer 201
assessment is important to the vitality of the economy of the state and 202
nevertheless shall assure provision of services to injured workers that 203
enhances their ability to return to work and improve their quality of life. 204
In any event, such factor shall not exceed, with respect to insured 205
employers, a rate of fifteen per cent on the Second Injury Fund 206
surcharge base with respect to workers' compensation and employers' 207
liability policies and, with respect to self-insured employers, a 208
comparable percentage limitation representing their pro rata share of 209
any assessment. Any employer or any insurance company acting as 210
collection agent for the custodian of the Second Injury Fund who fails to 211
pay in accordance with such regulations shall pay a penalty to the State 212
Treasurer of fifteen per cent on the unpaid assessment or surcharge or 213
fifty dollars, whichever is greater. Interest at the rate of six per cent per 214 Raised Bill No. 351
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annum shall be charged on any amounts owed on assessment audits or 215
surcharge audits. For self-insured employers interest shall accrue thirty 216
days after notice from the Second Injury Fund of the unpaid audit 217
assessment. For insurance companies, the interest shall accrue from the 218
date of the notice of audit errors or deficiencies as determined by the 219
date postmarked by the United States Postal Service. The State Treasurer 220
shall notify each employer of the penalty or interest provision with the 221
notice of assessment. Any partial payments made to the fund shall be 222
first applied to any unpaid penalty, then to any unpaid interest and the 223
remainder, if any, to the unpaid assessment or surcharge. Interest or 224
penalties shall be applied if assessment or surcharge reports or 225
payments are postmarked by the United States Postal Service after the 226
designated due date. The sums received shall be accounted for 227
separately and apart from all other state moneys and the faith and credit 228
of the state of Connecticut is pledged for their safekeeping. The State 229
Treasurer shall be the custodian of the fund and all disbursements from 230
the fund shall be made by the Treasurer or the Treasurer's deputies. The 231
moneys of the fund shall be invested by the Treasurer in accordance 232
with applicable law and section 8 of public act 96-242. Interest, income 233
and dividends from the investments shall be credited to the fund. Each 234
employer, each private insurance carrier acting on behalf of any 235
employer and each interlocal risk management agency acting on behalf 236
of any employer shall annually, on or before April first, report to the 237
State Treasurer, in the form prescribed by the State Treasurer, the 238
amount of money expended by or on behalf of the employer in 239
payments for the preceding calendar year. Each private insurance 240
carrier, each self-insurance group and each interlocal risk management 241
agency shall submit annually, on or before April first, to the State 242
Treasurer, in the form prescribed by the State Treasurer, a report of the 243
total Second Injury Fund surcharge base collected in the preceding 244
calendar year and a report of the projected total Second Injury Fund 245
surcharge base for the current calendar year. The fund shall be used to 246
provide the benefits set forth in section 31-306 for adjustments in the 247
compensation rate and payment of certain death benefits, in section 31-248
307b for adjustments where there are relapses after a return to work, in 249 Raised Bill No. 351
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section 31-307c for totally disabled persons injured prior to October 1, 250
1953, in section 31-349, as amended by this act, for disabled or 251
handicapped employees and in section 31-355 for the payment of 252
benefits due injured employees whose employers or insurance carriers 253
have failed to pay the compensation, and medical expenses required by 254
this chapter, or any other compensation payable from the fund as may 255
be required by any provision contained in this chapter or any other 256
statute and to reimburse employers or insurance carriers for payments 257
made under subsection (b) of section 31-307a. The assessment required 258
by this section is a condition of doing business in this state and failure 259
to pay the assessment, when due, shall result in the denial of the 260
privilege of doing business in this state or to self-insure under section 261
31-284. Any administrative or other costs or expenses incurred by the 262
State Treasurer in connection with carrying out the provisions of this 263
part, including the hiring of necessary employees, shall be paid from the 264
fund. The State Treasurer may adopt regulations, in accordance with the 265
provisions of chapter 54, prescribing the practices, policies and 266
procedures to be followed in the administration of the Second Injury 267
Fund. 268
Sec. 7. Subsection (a) of section 31-355a of the general statutes is 269
repealed and the following is substituted in lieu thereof (Effective October 270
1, 2020): 271
(a) Whenever the Second Injury Fund is required, pursuant to section 272
31-355 [or subsection (c) of section 31-349,] to pay benefits or 273
compensation mandated by the provisions of this chapter for any 274
employer or insurer who fails or is unable to make such payments, the 275
amount so paid by the fund shall be collectible by any means provided 276
by law for the collection of any tax due the state of Connecticut or any 277
subdivision thereof, including any means provided by section 12-35. 278
Tax warrants referred to in said section 12-35 may be signed by the State 279
Treasurer. 280
Sec. 8. Sections 31-276a, 31-298a and 31-304 of the general statutes are 281
repealed. (Effective October 1, 2020) 282 Raised Bill No. 351
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This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2020 New section
Sec. 2 October 1, 2020 31-280a(c)
Sec. 3 October 1, 2020 31-283f
Sec. 4 October 1, 2020 31-298
Sec. 5 October 1, 2020 31-349
Sec. 6 October 1, 2020 31-354(a)
Sec. 7 October 1, 2020 31-355a(a)
Sec. 8 October 1, 2020 Repealer section
Statement of Purpose:
To make minor and technical changes to the Workers' Compensation
Act.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]