HB 1867 Specifies that beginning January 1, 2017, certain shareholders of S corporations may elect to reject workers' compensation insurance coverage

Current Bill Summary

- Prepared by Senate Research -

HB 1867 - Beginning January 1, 2017, the act authorizes a shareholder of an S corporation with at least 40% interest in the S corporation to elect to reject coverage under the Workers' Compensation Law by providing written notice. Failure to provide notice is not grounds for a shareholder to claim that the rejection is not legal. The rejection of coverage may be rescinded, however the shareholder will only be entitled to benefits that accrued on or after the date the notice is received by the insurance company. This act also exempts veterans' organization volunteers who are not paid wages from coverage under workers' compensation statutes.

This provision is identical to a provision in HCS/HB 1955 (2016) and similar to HB 148 (2015).

The act also exempts volunteers of qualified tax-exempt veterans' organizations from workers' compensation laws.

This provision is identical to a provision in CCS/SB 700 (2016), HCS/HB 1955 (2016), and SCS/HB 615 (2015).

SCOTT SVAGERA

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