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General Assembly Raised Bill No. 907
January Session, 2021
LCO No. 3455
Referred to Committee on LABOR AND PUBLIC
EMPLOYEES
Introduced by:
(LAB)
AN ACT CONCERNING MI NOR AND TECHNICAL CHANGES 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, 2021) (a) (1) Wherever the words 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 4
words "administrative law judge" shall be substituted in lieu thereof: 4-5
186, 5-170, 5-192h, 17b-341, 19a-641, 28-14, 29-4a, 31-275, 31-276, 31-277, 6
31-278, 31-279, 31-280, 31-280a, as amended by this act, 31-280b, 31-282, 7
31-283, 31-283d, 31-283e, 31-283f, as amended by this act, 31-284c, 31-8
286, 31-286a, 31-286b, 31-288, 31-289a, 31-290a, 31-293, 31-294b, 31-294c, 9
31-294d, 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 Raised Bill No. 907
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49c, 51-49d, 51-49g, 51-49h, 51-49i, 51-49j, 51-50, 51-50a, 51-50b, 51-51, 16
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 words "workers' compensation commissioner", 19
"compensation commissioner" or "commissioner" are used to denote a 20
workers' compensation commissioner in any public act of the 2021 21
session, the words "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 2021 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, 2021): 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. Subsection (a) of section 31-283f of the general statutes is 42
repealed and the following is substituted in lieu thereof (Effective October 43
1, 2021): 44
(a) A Statistical Division shall be established within the Workers' 45
Compensation Commission. The division shall compile and maintain 46 Raised Bill No. 907
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statistics concerning occupational injuries and diseases, voluntary 47
agreements, status of claims and commissioners' dockets. [The division 48
shall be administered by a full-time salaried director who shall be 49
appointed by the chairman of the Workers' Compensation Commission 50
under the provisions of chapter 67. The director shall report to the 51
chairman.] 52
Sec. 4. Section 31-298 of the general statutes is repealed and the 53
following is substituted in lieu thereof (Effective October 1, 2021): 54
Both parties may appear at any hearing, either in person or by 55
attorney or other accredited representative, and no formal pleadings 56
shall be required, beyond any informal notices that the commission 57
approves. In all cases and hearings under the provisions of this chapter, 58
the commissioner shall proceed, so far as possible, in accordance with 59
the rules of equity. He shall not be bound by the ordinary common law 60
or statutory rules of evidence or procedure, but shall make inquiry, 61
through oral testimony, deposition testimony or written and printed 62
records, in a manner that is best calculated to ascertain the substantial 63
rights of the parties and carry out the provisions and intent of this 64
chapter. No fees shall be charged to either party by the commissioner in 65
connection with any hearing or other procedure, but the commissioner 66
shall furnish at cost (1) certified copies of any testimony, award or other 67
matter which may be of record in his office, and (2) duplicates of audio 68
[cassette] recordings of any formal hearings. Witnesses subpoenaed by 69
the commissioner shall be allowed the fees and traveling expenses that 70
are allowed in civil actions, to be paid by the party in whose interest the 71
witnesses are subpoenaed. When liability or extent of disability is 72
contested by formal hearing before the commissioner, the claimant shall 73
be entitled, if he prevails on final judgment, to payment for oral 74
testimony or deposition testimony rendered on his behalf by a 75
competent physician, surgeon or other medical provider, including the 76
stenographic and videotape recording costs thereof, in connection with 77
the claim, the commissioner to determine the reasonableness of such 78
charges. 79 Raised Bill No. 907
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Sec. 5. Section 31-349 of the general statutes is repealed and the 80
following is substituted in lieu thereof (Effective October 1, 2021): 81
[(a)] The fact that an employee has suffered a previous disability, 82
shall not preclude him from compensation for a second injury, nor 83
preclude compensation for death resulting from the second injury. If an 84
employee having a previous disability incurs a second disability from a 85
second injury resulting in a permanent disability caused by both the 86
previous disability and the second injury which is materially and 87
substantially greater than the disability that would have resulted from 88
the second injury alone, he shall receive compensation for (1) the entire 89
amount of disability, including total disability, less any compensation 90
payable or paid with respect to the previous disability, and (2) necessary 91
medical care, as provided in this chapter, notwithstanding the fact that 92
part of the disability was due to a previous disability. For purposes of 93
this [subsection,] section, "compensation payable or paid with respect to 94
the previous disability" includes compensation payable or paid 95
pursuant to the provisions of this chapter, as well as any other 96
compensation payable or paid in connection with the previous 97
disability, regardless of the source of such compensation. 98
[(b) As a condition precedent to the liability of the Second Injury 99
Fund, the employer or its insurer shall: (1) Notify the custodian of the 100
fund by certified mail no later than three calendar years after the date of 101
injury or no later than ninety days after completion of payments for the 102
first one hundred and four weeks of disability, whichever is earlier, of 103
its intent to transfer liability for the claim to the Second Injury Fund; (2) 104
include with the notification (A) copies of all medical reports, (B) an 105
accounting of all benefits paid, (C) copies of all findings, awards and 106
approved voluntary agreements, (D) the employer's or insurer's 107
estimate of the reserve amount to ultimate value for the claim, (E) a two-108
thousand-dollar notification fee payable to the custodian to cover the 109
fund's costs in evaluating the claim proposed to be transferred and (F) 110
such other material as the custodian may require. The employer by 111
whom the employee is employed at the time of the second injury, or its 112 Raised Bill No. 907
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insurer, shall in the first instance pay all awards of compensation and 113
all medical expenses provided by this chapter for the first one hundred 114
four weeks of disability. Failure on the part of the employer or an insurer 115
to comply does not relieve the employer or insurer of its obligation to 116
continue furnishing compensation under the provisions of this chapter. 117
The custodian of the fund shall, by certified mail, notify a self-insured 118
employer or an insurer, as applicable, of the rejection of the claim within 119
ninety days after receiving the completed notification. Any claim which 120
is not rejected pursuant to this section shall be deemed accepted, unless 121
the custodian notifies the self-insured employer or the insurer within 122
the ninety-day period that up to an additional ninety days is necessary 123
to determine if the claim for transfer will be accepted. If the claim is 124
accepted for transfer, the custodian shall file with the workers' 125
compensation commissioner for the district in which the claim was filed, 126
a form indicating that the claim has been transferred to the Second 127
Injury Fund and the date that such claim was transferred and shall 128
refund fifteen hundred dollars of the notification fee to the self-insured 129
employer or the insurer, as applicable. A copy of the form shall be 130
mailed to the self-insured employer or the insurer and to the claimant. 131
No further action by the commissioner shall be required to transfer said 132
claim. If the custodian rejects the claim of the employer or its insurer, 133
the question shall be submitted by certified mail within thirty days of 134
the receipt of the notice of rejection by the employer or its insurer to the 135
commissioner having jurisdiction, and the employer or insurer shall 136
continue furnishing compensation until the outcome is finally decided. 137
Claims not submitted to the commissioner within said time period shall 138
be deemed withdrawn with prejudice. If the employer or insurer 139
prevails, or if the custodian accepts the claim all payments made beyond 140
the one-hundred-four-week period shall be reimbursed to the employer 141
or insurer by the Second Injury Fund. 142
(c) If the second injury of an employee results in the death of the 143
employee, and it is determined that the death would not have occurred 144
except for a preexisting permanent physical impairment, the employer 145
or its insurer shall, in the first instance, pay the funeral expense 146 Raised Bill No. 907
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described in this chapter, and shall pay death benefits as may be due for 147
the first one hundred four weeks. The employer or its insurer may 148
thereafter transfer liability for the death benefits to the Second Injury 149
Fund in accordance with the procedures set forth in subsection (b) of 150
this section. 151
(d) Notwithstanding the provisions of this section, no injury which 152
occurs on or after July 1, 1995, shall serve as a basis for transfer of a claim 153
to the Second Injury Fund under this section. All such claims shall 154
remain the responsibility of the employer or its insurer under the 155
provisions of this section. 156
(e) All claims for transfer of injuries for which the fund has been 157
notified prior to July 1, 1995, shall be deemed withdrawn with prejudice, 158
unless the employer or its insurer notifies the custodian of the fund by 159
certified mail prior to October 1, 1995, of its intention to pursue transfer 160
pursuant to the provisions of this section. No notification fee shall be 161
required for notices submitted pursuant to this subsection. This 162
subsection shall not apply to notices submitted prior to July 1, 1995, in 163
response to the custodian's request, issued on March 15, 1995, for 164
voluntary resubmission of notices. 165
(f) No claim, where the custodian of the Second Injury Fund was 166
served with a valid notice of intent to transfer under this section, shall 167
be eligible for transfer to the Second Injury Fund unless all requirements 168
for transfer, including payment of the one hundred and four weeks of 169
benefits by the employer or its insurer, have been completed prior to 170
July 1, 1999. All claims, pursuant to this section, not eligible for transfer 171
to the fund on or before July 1, 1999, will remain the responsibility of the 172
employer or its insurer.] 173
Sec. 6. Subsection (a) of section 31-354 of the general statutes is 174
repealed and the following is substituted in lieu thereof (Effective October 175
1, 2021): 176
(a) There shall be a fund to be known as the Second Injury Fund. Each 177 Raised Bill No. 907
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employer, other than the state, shall, within thirty days after notice 178
given by the State Treasurer, pay to the State Treasurer for the use of the 179
state a sum in payment of his liability under this chapter which shall be 180
calculated in accordance with the Second Injury Fund surcharge base, 181
as defined in section 31-349g, [and shall be assessed in accordance with 182
subsection (f) of section 31-349,] sections 31-349g, 31-349h and 31-349i, 183
this section, section 31-354b and sections 8 and 9 of public act 96-242. 184
Such sum shall be an amount sufficient to (1) pay the debt service on 185
state revenue bond obligations authorized to be issued under and for 186
the purposes set forth in section 31-354b including reserve and covenant 187
coverage requirements, (2) provide for costs and expenses of operating 188
the Second Injury Fund, and (3) pay Second Injury Fund stipulations on 189
claims settled by the custodian or other benefits payable out of the 190
Second Injury Fund and not funded through state revenue bond 191
obligations and shall be determined in accordance with the regulations 192
adopted pursuant to the provisions of section 31-349g. The custodian 193
shall establish a factor for the annual surcharge that caps such surcharge 194
for the fiscal years ending June 30, 1996, 1997 and 1998. In determining 195
such factor the custodian shall consider the funding mechanism 196
authorized by [subsection (f) of section 31-349,] sections 31-349g, 31-197
349h and 31-349i, this section, section 31-354b and sections 8 and 9 of 198
public act 96-242, recognize that an acceptable level of employer 199
assessment is important to the vitality of the economy of the state and 200
nevertheless shall assure provision of services to injured workers that 201
enhances their ability to return to work and improve their quality of life. 202
In any event, such factor shall not exceed, with respect to insured 203
employers, a rate of fifteen per cent on the Second Injury Fund 204
surcharge base with respect to workers' compensation and employers' 205
liability policies and, with respect to self-insured employers, a 206
comparable percentage limitation representing their pro rata share of 207
any assessment. Any employer or any insurance company acting as 208
collection agent for the custodian of the Second Injury Fund who fails to 209
pay in accordance with such regulations shall pay a penalty to the State 210
Treasurer of fifteen per cent on the unpaid assessment or surcharge or 211
fifty dollars, whichever is greater. Interest at the rate of six per cent per 212 Raised Bill No. 907
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annum shall be charged on any amounts owed on assessment audits or 213
surcharge audits. For self-insured employers interest shall accrue thirty 214
days after notice from the Second Injury Fund of the unpaid audit 215
assessment. For insurance companies, the interest shall accrue from the 216
date of the notice of audit errors or deficiencies as determined by the 217
date postmarked by the United States Postal Service. The State Treasurer 218
shall notify each employer of the penalty or interest provision with the 219
notice of assessment. Any partial payments made to the fund shall be 220
first applied to any unpaid penalty, then to any unpaid interest and the 221
remainder, if any, to the unpaid assessment or surcharge. Interest or 222
penalties shall be applied if assessment or surcharge reports or 223
payments are postmarked by the United States Postal Service after the 224
designated due date. The sums received shall be accounted for 225
separately and apart from all other state moneys and the faith and credit 226
of the state of Connecticut is pledged for their safekeeping. The State 227
Treasurer shall be the custodian of the fund and all disbursements from 228
the fund shall be made by the Treasurer or the Treasurer's deputies. The 229
moneys of the fund shall be invested by the Treasurer in accordance 230
with applicable law and section 8 of public act 96-242. Interest, income 231
and dividends from the investments shall be credited to the fund. Each 232
employer, each private insurance carrier acting on behalf of any 233
employer and each interlocal risk management agency acting on behalf 234
of any employer shall annually, on or before April first, report to the 235
State Treasurer, in the form prescribed by the State Treasurer, the 236
amount of money expended by or on behalf of the employer in 237
payments for the preceding calendar year. Each private insurance 238
carrier, each self-insurance group and each interlocal risk management 239
agency shall submit annually, on or before April first, to the State 240
Treasurer, in the form prescribed by the State Treasurer, a report of the 241
total Second Injury Fund surcharge base collected in the preceding 242
calendar year and a report of the projected total Second Injury Fund 243
surcharge base for the current calendar year. The fund shall be used to 244
provide the benefits set forth in section 31-306 for adjustments in the 245
compensation rate and payment of certain death benefits, in section 31-246
307b for adjustments where there are relapses after a return to work, in 247 Raised Bill No. 907
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section 31-307c for totally disabled persons injured prior to October 1, 248
1953, in section 31-349, as amended by this act, for disabled or 249
handicapped employees and in section 31-355 for the payment of 250
benefits due injured employees whose employers or insurance carriers 251
have failed to pay the compensation, and medical expenses required by 252
this chapter, or any other compensation payable from the fund as may 253
be required by any provision contained in this chapter or any other 254
statute and to reimburse employers or insurance carriers for payments 255
made under subsection (b) of section 31-307a. The assessment required 256
by this section is a condition of doing business in this state and failure 257
to pay the assessment, when due, shall result in the denial of the 258
privilege of doing business in this state or to self-insure under section 259
31-284. Any administrative or other costs or expenses incurred by the 260
State Treasurer in connection with carrying out the provisions of this 261
part, including the hiring of necessary employees, shall be paid from the 262
fund. The State Treasurer may adopt regulations, in accordance with the 263
provisions of chapter 54, prescribing the practices, policies and 264
procedures to be followed in the administration of the Second Injury 265
Fund. 266
Sec. 7. Subsection (a) of section 31-355a of the general statutes is 267
repealed and the following is substituted in lieu thereof (Effective October 268
1, 2021): 269
(a) Whenever the Second Injury Fund is required, pursuant to section 270
31-355, [or subsection (c) of section 31-349,] to pay benefits or 271
compensation mandated by the provisions of this chapter for any 272
employer or insurer who fails or is unable to make such payments, the 273
amount so paid by the fund shall be collectible by any means provided 274
by law for the collection of any tax due the state of Connecticut or any 275
subdivision thereof, including any means provided by section 12-35. 276
Tax warrants referred to in said section 12-35 may be signed by the State 277
Treasurer. 278
Sec. 8. Sections 31-276a, 31-298a and 31-304 of the general statutes are 279
repealed. (Effective October 1, 2021) 280 Raised Bill No. 907
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This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2021 New section
Sec. 2 October 1, 2021 31-280a(c)
Sec. 3 October 1, 2021 31-283f(a)
Sec. 4 October 1, 2021 31-298
Sec. 5 October 1, 2021 31-349
Sec. 6 October 1, 2021 31-354(a)
Sec. 7 October 1, 2021 31-355a(a)
Sec. 8 October 1, 2021 Repealer section
LAB Joint Favorable