HB 1237 Modifies provisions of workers' compensation law
Bill Summary
- Prepared by Senate Research -

HS/HCS/HBs 1237, 1409, 1166, 1154 & 1491 - This act modifies provisions of Workers' Compensation Law.

1. This act adds limited liability partners to the definition of "employer" and includes family member employees when counting the total number of employees.

2. Currently, any reference to the employer also includes his insurer. Under this act, it would also include a group self- insurer.

3. This act removes application of Workers' Compensation benefits to co-partners, but applies to employees related to a partner or sole proprietor within the third degree unless withdrawn from coverage.

4. Currently, any city or county is required to receive a certificate of workers' compensation insurance from any applicant before issuing an occupational or business license. This act would limit the requirement to contractors only, and would require applicants of contractors who are exempt from workers' compensation insurance to sign an affidavit attesting to their exemption. No duty to investigate shall be placed upon the city or county. This portion of the act is similar to SB 733 (1996).

6. Currently, family-member employees are exempt from Workers' Compensation Law. This act removes such exemption. Currently, exempted employers may subject themselves or any class of exempted employees to Workers' Compensation Law by filing with the Division a notice of election to accept the provisions. This act instead provides that the employer may elected coverage by purchasing a workers' compensation insurance policy or endorsement or by filing written notice to the group self- insurer.

7. Fraudulent and unlawful workers' compensation insurance acts are punishable as a Class A misdemeanor, or a Class D felony upon a second conviction.

8. This act requires the Director of the Workers' Compensation Division to establish a procedure for reactivation of claims for good cause shown, and only for the payment of life- threatening surgical procedures, or for prosthetic devices

10. This act removes filing requirements for Timeliness of Payment Reports and publishing requirements of Reports of Payment Performance.

11. This act allows credits against benefits owed for employers who pay unemployment compensation to the same employee at the same time.

12. This act changes the weekly rate of compensation as provided in the Schedule of Losses for complete deafness. Complete deafness in both ears is changed from 168 to 180. Complete deafness in one year is changed from 44 to 49.

13. This act changes permanent partial disability payments for deafness in one year from 40 to 49 weeks, and for total occupational deafness in both ears from 48 to 80 weeks.

14. Currently, a party may submit interrogatories to the opposing party's physician without additional cost. This provision is removed.

15. This act reinstates a provision which expired on 8/28/96, regarding an injured employee of multiple employers. The provision placed responsibility on the employer for whom the employee was employed at the time of the injury.

16. When calculating the total average weekly wage of any employee who has multiple employments, this act specifies that such employments apply to the employee's entitlement to temporary total or partial disability benefits only. Upon approval of an administrative law judge, legal advisor or the Labor and Industrial Relations Commission, a compromise lump sum settlement in permanent total or permanent partial disability cases which prorates the lump sum settlement over life expectancy may be entered into.

17. This act requires groups of employers qualified to insure their liability pursuant to Chapter 537, RSMo, to use a uniform experience rating plan and to develop experience ratings. Entities qualified to group self-insure shall not authorize discounts greater than 25% beginning 1/1/99.

18. Section 287.337 is repealed, which requires rates and rating systems for construction employees to be based on the intrastate modification rate if the employer has a credible Missouri Intrastate Modification Rate; Employers without such a rate are subjected to a higher rate. This provision is identical to part of SCS/SB 270 (1997).

19. Currently, there are different reporting requirements for injuries involving less than $500 in medical costs. This act would remove the distinction in reporting injuries, making all injuries reported in the same way, as was done prior to 1993. This provision is identical to SB 730 (1996) and part of SCS/SB 270 (1997).

20. A written award shall be issued no later than 90 days after the last day of the hearing. The hearing shall conclude no later than 30 days after commencement of the hearing, except in extraordinary circumstances.

21. This act allows filings by electronic fax on applications for review.

22. The appellate court shall have jurisdiction to review all Labor Commission decisions where the Workers' Compensation Division has original jurisdiction.

23. Currently, compensation which is commuted to the value of future installments includes 4% interest with annual rests. Such interest is removed in this act.

24. Current law authorizes up to 20 Administrative Law Judges (ALJs). This act authorizes up to 25, however, only one additional appointment is authorized per year through 2004, at which point up to 30 ALJs are authorized. The Division of Workers' Compensation shall perform evaluations on ALJs, associate ALJs, and legal advisors.

25. ALJs may reopen claims to correct clerical errors only within 20 days of the original award or settlement.

26. Legal advisors shall receive 80% of an associate circuit judge's compensation. Chief legal advisors shall receive the same rate as a legal advisor plus two thousand dollars. ALJs shall receive 90% of an associate circuit judge's compensation. The ALJ in charge shall receive the same rate as an ALJ plus five thousand dollars. This provision is similar to part of SB 584 (1998).

27. This act allows hearings to be conducted in the county where the employee's employment was principally localized.

28. This act provides that records shall be available for at least ten years.

29. This act requires the Department of Higher Education to collect and distribute funds for the Kids' Chance Scholarship, established in this act. The Director of the Division of Workers' Compensation shall annually deposit $50,000 from premium taxes into the scholarship fund beginning in October of 1999, and until 2008. The scholarship shall be provided for children of workers who were seriously injured or died in a work-related accident or occupational disease covered by Workers' Compensation Law. The Department of Higher Education shall promulgate rules relating to the scholarship fund.
MARGARET J. TOALSON

SCA 1 - KIDS CHANCE INC. MONEY IS FROM PREMIUMS

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