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SENATE FLOOR VERSION
February 9, 2021
SENATE BILL NO. 1013 By: Daniels
An Act relating to workers’ compensation compliance
investigations; amending 51 O.S. 2011, Section
24A.12, which relates to liti gation and investigatory
files; authorizing Workers’ Compensation Commission
to keep certain files confidential; amending Sections
40, as amended by Section 16, Chapter 476, O.S.L.
2019, and 105, Chapter 208, O.S.L. 2013 (85A O.S.
Supp. 2020, Sections 40 and 105), which relate to
failure to secure compensation and employees as
witnesses; authorizing Workers’ Compensation
Commission to keep certain files confidential;
construing provisions; updating statutory reference;
and declaring an emergen cy.
BE IT ENACTED BY THE PEOPLE OF THE S TATE OF OKLAHOMA:
SECTION 1. AMENDATORY 51 O.S. 2011, Section 24A.12, is
amended to read as follows:
Section 24A.12. Except as otherwise provi ded by state or local
law, the Attorney General of the State of Oklahoma and agency
attorneys authorized by law, the Workers’ Compensation Commission,
the office of the district attorney of any county of the state, and
the office of the municipal attorney of any municipality may keep
its litigation files and investigatory reports confidentia l.
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SECTION 2. AMENDATORY Section 40, Chapter 208, O.S.L.
2013, as amended by Section 16, Chapter 476, O.S.L. 2019 (85A O.S.
Supp. 2020, Section 40), is amended to read as fol lows:
Section 40. A. 1. Any employer who fails to sec ure
compensation required under this act the Administrative Workers ’
Compensation Act, upon conviction, shall be guilty of a misdemeanor
and subject to a fine of up to T en Thousand Dollars ($10,000.00) to
be deposited in the Workers ’ Compensation Commission Revolving Fund.
2. This subsection shall not affect any other liability of the
employer under this act the Administrative Workers ’ Compensation
Act.
B. 1. Whenever the Workers’ Compensation Commission has reason
to believe that any employer required to secure the payment of
compensation under this act the Administrative Workers ’ Compensation
Act has failed to do so, the Commission shall serve on the employer
a proposed judgment declaring the employer to be in violation of
this act the Administrative Wo rkers’ Compensation Act and containing
the amount, if any, of the civil penalty to be assessed against the
employer under paragraph 5 of this subsection.
2. a. An employer may contest a proposed judgment of the
Commission issued under paragraph 1 of this s ubsection
by filing with the Commission, within twen ty (20) days
of receipt of the proposed judgment, a written request
for a hearing.
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b. The request for a hearing does not need to be in any
particular form but shall specify the grounds on which
the person contests the proposed judgment, the
proposed assessment, or both.
c. If a written request for hearing is not filed with the
Commission within the time specified in subp aragraph a
of this paragraph, the proposed judgment, the proposed
penalty, or both, shall be a final judgment of the
Commission and shall n ot be subject to further review
by any court, except if the employer sho ws good cause
why it did not timely contest t he judgment or penalty.
d. A proposed judgment by the Commission under this
section shall be prima facie correct, and the burden
is on the employer to prove that the proposed judgment
is incorrect.
3. a. If the employer alleges that a carrier has contracte d
to provide it workers ’ compensation insurance coverage
for the period in question, th e employer shall include
the allegation in its reque st for hearing and shall
name the carrier.
b. The Commission shall promp tly notify the carrier of
the employer’s allegation and of the date of hearing.
c. The carrier shall promptly, and no later than fiv e (5)
days before the hearing, respond in writing to the
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employer’s allegation by providing evidence of
coverage for the per iod in question or by
affirmatively denying t he employer’s allegation.
4. Hearings under this section shall be procedurally conduct ed
as provided in Sections 69 through 78 of this tit le.
5. The Commission may assess a fine against an employer who
fails to secure the payment of compensation in an am ount up to One
Thousand Dollars ($1,000.00) per day of violation payable to the
Workers’ Compensation Commission Revolving Fund, not to exc eed a
total of Fifty Thousand Dollars ($50,000.00) for the first
violation.
6. If an employer fails to secure the pa yment of compensation
or pay any civil penalty assessed against the employer after a
judgment issued under this section has become final by operation of
law or on appeal, the Commission may petition the Oklahoma County
District Court or the district court of the county where the
employer’s principal place of business is located for an order
enjoining the employer from engaging in further empl oyment until
such time as the employer secures the payment of compensati on or
makes full payment of all civil penalti es.
7. Upon any penalty becoming final under this section, the
Commission may institut e collection proceedings against any assets
of the employer independently or in district court including, but
not limited to, an asset hearing, garnishment of income and wages,
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judgment lien, or an intercept of an income tax refund consistent
with Section 205.2 of Title 68 of the Oklahoma Statutes.
8. Information subject to subsection A or B of Section 4 -508 of
Title 40 of the Oklahoma Statutes may be disclosed to the em ployees
of the Commission for purposes of investigation and enforcement of
workers’ compensation coverage requirements pursuant to this tit le,
and such information shall be admissible in any hearing before an
administrative law judge of the Commission.
9. Litigation files and investigatory reports of the Commission
arising from enforcement of the provisions of this section shall be
confidential pursuant to Section 24A.12 of Title 51 of the Oklahoma
Statutes.
SECTION 3. AMENDATORY Section 105, Chapter 208, O.S.L.
2013 (85A O.S. Supp. 2020, Section 105), is amended to read as
follows:
Section 105. A. No employee of the Workers ’ Compensation
Commission shall be competent to testify on any matter concerning
any information the employ ee has received through the performance of
the employee’s duties under the provisio ns of this act the
Administrative Workers’ Compensation Act; provided, however, such
provision shall not be construed to prohibit testimony by an
attorney of the Compliance Division of the Commission or an
investigator of the Division called to provide testimony by the
attorney.
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B. The commissioners and employees of the Commission shall not
solicit employment for any attorney or physician nor shall they
recommend or refer an y claimant or employer to an attorney or
physician. If any employee of the Commission makes such a
solicitation, recommendation or reference, that person, upon
conviction, shall be guilty of a misdemeanor punishable, for each
offense, by a fine of not mor e than One Thousand Dollars ($1,000.00)
or by imprisonment in the county jail not to ex ceed one (1) year, or
by both such fine and imprisonment. The Commission shall
immediately terminate the employment of any employee who is guilty
of such solicitation, recommendation or reference. A commissioner
guilty of such solicitation, recommendatio n or reference shall be
subject to removal from office.
C. No administrative law judge shall engage in any ex parte
communication with any party to an action pending be fore the
Commission or with any witness or med ical provider regarding the
merits of a specific matter pending before the judge for resolution.
Any violation of this provision shall subject the judge to
disqualification from the action or matter upon prese ntation of an
application for disqualification .
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMIT TEE ON JUDICIARY
February 9, 2021 - DO PASS