2018 Second Extraordinary Session ENROLLED SENATE BILL NO. 20 BY SENATORS RISER AND HEWITT 1 AN ACT 2 To amend and reenact R.S. 23:1170(A), 1172(A), 1172.1(C), 1172.2(D), 1178(D), 3 1291.1(C)(1) and (E), 1310.3(E), and 1310.13, relative to the Office of Workers' 4 Compensation Administrative Fund in the state treasury; to provide for the 5 dedication, use, investment, and appropriation of monies in the Office of Workers' 6 Compensation Administrative Fund; to provide for an effective date; and to provide 7 for related matters. 8 Be it enacted by the Legislature of Louisiana: 9 Section 1. R.S. 23:1170(A), 1172(A), 1172.1(C), 1172.2(D), 1178(D), 1291.1(C)(1) 10 and (E), 1310.3(E), and 1310.13 are hereby amended and reenacted to read as follows: 11 §1170. Penalty for failure to secure workers' compensation insurance; assessment 12 and collection 13 A. In addition to any other penalty prescribed by law, any employer who fails 14 to secure compensation required by R.S. 23:1168 shall be liable for a civil penalty, 15 to be assessed by the workers' compensation judge, of not more than two hundred 16 fifty dollars per employee for a first offense, and liable for a civil penalty of not more 17 than five hundred dollars per employee for a second or subsequent offense; however, 18 the maximum civil penalty for a first offense shall not exceed ten thousand dollars Page 1 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 20 ENROLLED 1 for all related series of violations. All civil penalties collected shall be deposited in 2 the Office of Workers' Compensation Administrative Account Fund established in 3 R.S. 23:1291.1(E). 4 * * * 5 §1172. Criminal penalties 6 A. Any employer who willfully fails to provide security for compensation 7 required by R.S. 23:1168 shall be subject to a fine of up to two hundred fifty dollars 8 per day that the employer willfully failed to provide security for compensation or 9 imprisonment with or without hard labor for not more than one year, or both such 10 fine and imprisonment. All fines collected shall be deposited in the Office of 11 Workers' Compensation Administrative Account Fund established in R.S. 12 23:1291.1(E). 13 * * * 14 §1172.1. Willful misrepresentation by employer; aid or abet; criminal penalties; 15 civil immunity 16 * * * 17 C. Whoever violates any provision of this Section shall be imprisoned, with 18 or without hard labor, for not less than one year nor more than ten years, or fined up 19 to two hundred fifty dollars per day that the employer willfully failed to provide 20 security for compensation, or both. All fines collected shall be deposited in the 21 Office of Workers' Compensation Administrative Account Fund established in R.S. 22 23:1291.1(E). 23 * * * 24 §1172.2. Unlawful practices 25 * * * 26 D. Whoever violates any provision of this Section shall be imprisoned, with 27 or without hard labor, for not less than one year nor more than ten years, or fined up 28 to two hundred fifty dollars per day that such person's violation of any provision of 29 this Section resulted in failure to properly provide security for compensation, or 30 both. All fines collected shall be deposited in the Office of Workers' Compensation Page 2 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 20 ENROLLED 1 Administrative Account Fund established in R.S. 23:1291.1(E). 2 * * * 3 §1178. Cost containment meeting; incentive discount 4 * * * 5 D. Any eligible employer who has been given notice of a cost containment 6 meeting, and fails to attend shall be fined an amount equalling equaling two percent 7 of the Louisiana workers' compensation premium for the succeeding policy year. The 8 fine shall be payable to the executive director of the commission and shall be 9 remitted to the state treasurer for deposit in the Office of Workers' Compensation 10 Administrative Account Fund. 11 * * * 12 §1291.1. Annual reports; assessment; collection 13 * * * 14 C.(1) The director of the office of workers' compensation administration shall 15 provide by regulation for the collection of the amounts assessed against each insurer 16 and employer. Collection of funds under the provisions of this Subsection shall be 17 accomplished by the office of workers' compensation administration, the amount 18 collected to be determined by the director. Such amounts shall be paid into the Office 19 of Workers' Compensation Administrative Account Fund within thirty days from the 20 date that notice is served upon such insurer or employer. 21 * * * 22 E. There is hereby created and established in the state treasury a special 23 agency account fund, which shall be designated as the "Office of Worker's 24 Workers' Compensation Administrative Account Fund". The account fund shall be 25 maintained as a separate account in the treasury for the sole purpose of funding the 26 administrative expenses of the office of worker's workers' compensation 27 administration of the Louisiana Workforce Commission as set forth in R.S. 23:1291 28 et seq. Funds shall be withdrawn therefrom only pursuant to legislative appropriation 29 and shall be subject to budgetary control as provided by law. All remaining and 30 unencumbered balances at the end of any fiscal year shall remain to the credit of the Page 3 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 20 ENROLLED 1 account fund and shall be used solely for the purpose stated in this Section. Funding 2 deposited into the account shall be considered fees and self-generated revenues and 3 shall be available for annual appropriations by the legislature. 4 * * * 5 §1310.3. Initiation of claims; voluntary mediation; procedure 6 * * * 7 E. If any party fails to appear at a mediation conference ordered by the judge 8 or requested by the parties after proper notice, the workers' compensation judge upon 9 request of a party may fine the delinquent party an amount not to exceed five 10 hundred dollars, which shall be payable to the Office of Workers' Compensation 11 Administrative Account Fund. In addition, the workers' compensation judge may 12 assess against the party failing to attend costs and reasonable attorney fees incurred 13 by any other party in connection with the conference. The penalties provided for in 14 this Subsection shall be assessed by the workers' compensation judge only after a 15 contradictory hearing which shall be held prior to the hearing on the merits of the 16 dispute. 17 * * * 18 §1310.13. Expenses of director; penalties imposed by Act; payment into special 19 state treasury fund 20 All penalties imposed by the Worker's Workers' Compensation Act, except 21 those specifically payable to claimants, or as otherwise specifically provided by law, 22 shall be deposited into the Office of Worker's Workers' Compensation 23 Administrative Account Fund and used in those amounts appropriated by the 24 legislature as provided for in R.S. 23:1291.1(E). 25 Section 2. The provisions of R.S. 23:1170(A), 1172(A), 1172.1(C), 1172.2(D), 26 1178(D), 1291.1(C)(1) and (E), 1310.3(E), and 1310.13, as amended by the Act which 27 originated as Senate Bill No. 400 of the 2018 Regular Session of the Legislature are hereby 28 superceded by the provisions of this Act and shall not become effective. 29 Section 3. This Act shall become effective upon signature by the governor or, if not 30 signed by the governor, upon expiration of the time for bills to become law without signature Page 4 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 20 ENROLLED 1 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If 2 vetoed by the governor and subsequently approved by the legislature, this Act shall become 3 effective on the day following such approval. PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 5 of 5 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.