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H.B. 174

             1     

WORKERS' COMPENSATION - FIRE

             2     
DEPARTMENT EMPLOYEES

             3     
2002 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Joseph G. Murray

             6      This act modifies the Utah Labor Code to provide for a presumption that certain
             7      occupational diseases are employment related for fire department employees and to make
             8      technical changes.
             9      This act affects sections of Utah Code Annotated 1953 as follows:
             10      AMENDS:
             11          34A-2-413, as renumbered and amended by Chapter 375, Laws of Utah 1997
             12      ENACTS:
             13          34A-3-113, Utah Code Annotated 1953
             14      Be it enacted by the Legislature of the state of Utah:
             15          Section 1. Section 34A-2-413 is amended to read:
             16           34A-2-413. Permanent total disability -- Amount of payments -- Rehabilitation.
             17          (1) (a) In cases of permanent total disability resulting from an industrial accident or
             18      occupational disease, the employee shall receive compensation as outlined in this section.
             19          (b) [To] Except as provided in Section 34A-3-113 , to establish entitlement to permanent
             20      total disability compensation, the employee has the burden of proof to show by a preponderance
             21      of evidence that:
             22          (i) the employee sustained a significant impairment or combination of impairments as a
             23      result of the industrial accident or occupational disease that gives rise to the permanent total
             24      disability entitlement;
             25          (ii) the employee is permanently totally disabled; and
             26          (iii) the industrial accident or occupational disease was the direct cause of the employee's
             27      permanent total disability.


             28          (c) To find an employee permanently totally disabled, the commission shall conclude that:
             29          (i) the employee is not gainfully employed;
             30          (ii) the employee has an impairment or combination of impairments that limit the
             31      employee's ability to do basic work activities;
             32          (iii) the industrial or occupationally caused impairment or combination of impairments
             33      prevent the employee from performing the essential functions of the work activities for which the
             34      employee has been qualified until the time of the industrial accident or occupational disease that
             35      is the basis for the employee's permanent total disability claim; and
             36          (iv) the employee cannot perform other work reasonably available, taking into
             37      consideration the employee's age, education, past work experience, medical capacity, and residual
             38      functional capacity.
             39          (d) Evidence of an employee's entitlement to disability benefits other than those provided
             40      under this chapter and Chapter 3, Utah Occupational Disease Act, if relevant, may be presented
             41      to the commission, but is not binding and creates no presumption of an entitlement under this
             42      chapter and Chapter 3, Utah Occupational Disease Act.
             43          (2) For permanent total disability compensation during the initial 312-week entitlement,
             44      compensation shall be 66-2/3% of the employee's average weekly wage at the time of the injury,
             45      limited as follows:
             46          (a) compensation per week may not be more than 85% of the state average weekly wage
             47      at the time of the injury;
             48          (b) compensation per week may not be less than the sum of $45 per week, plus $5 for a
             49      dependent spouse, plus $5 for each dependent child under the age of 18 years, up to a maximum
             50      of four dependent minor children, but not exceeding the maximum established in Subsection (2)(a)
             51      nor exceeding the average weekly wage of the employee at the time of the injury; and
             52          (c) after the initial 312 weeks, the minimum weekly compensation rate under Subsection
             53      (2)(b) shall be 36% of the current state average weekly wage, rounded to the nearest dollar.
             54          (3) For claims resulting from an accident or disease arising out of and in the course of the
             55      employee's employment on or before June 30, 1994:
             56          (a) The employer or its insurance carrier is liable for the initial 312 weeks of permanent
             57      total disability compensation except as outlined in Section 34A-2-703 as in effect on the date of
             58      injury.


             59          (b) The employer or its insurance carrier may not be required to pay compensation for any
             60      combination of disabilities of any kind, as provided in this section and Sections 34A-2-410 through
             61      34A-2-412 and Sections 34A-2-501 through 34A-2-507 in excess of the amount of compensation
             62      payable over the initial 312 weeks at the applicable permanent total disability compensation rate
             63      under Subsection (2).
             64          (c) Any overpayment of this compensation shall be reimbursed to the employer or its
             65      insurance carrier by the Employers' Reinsurance Fund and shall be paid out of the Employers'
             66      Reinsurance Fund's liability to the employee.
             67          (d) After an employee has received compensation from the employee's employer, its
             68      insurance carrier, or the Employers' Reinsurance Fund for any combination of disabilities
             69      amounting to 312 weeks of compensation at the applicable permanent total disability compensation
             70      rate, the Employers' Reinsurance Fund shall pay all remaining permanent total disability
             71      compensation.
             72          (e) Employers' Reinsurance Fund payments shall commence immediately after the
             73      employer or its insurance carrier has satisfied its liability under this Subsection (3) or Section
             74      34A-2-703 .
             75          (4) For claims resulting from an accident or disease arising out of and in the course of the
             76      employee's employment on or after July 1, 1994:
             77          (a) The employer or its insurance carrier is liable for permanent total disability
             78      compensation.
             79          (b) The employer or its insurance carrier may not be required to pay compensation for any
             80      combination of disabilities of any kind, as provided in this section and Sections 34A-2-410 through
             81      34A-2-412 and Sections 34A-2-501 through 34A-2-507 , in excess of the amount of compensation
             82      payable over the initial 312 weeks at the applicable permanent total disability compensation rate
             83      under Subsection (2).
             84          (c) Any overpayment of this compensation shall be recouped by the employer or its
             85      insurance carrier by reasonably offsetting the overpayment against future liability paid before or
             86      after the initial 312 weeks.
             87          (5) Notwithstanding the minimum rate established in Subsection (2), the compensation
             88      payable by the employer, its insurance carrier, or the Employers' Reinsurance Fund, after an
             89      employee has received compensation from the employer or the employer's insurance carrier for any


             90      combination of disabilities amounting to 312 weeks of compensation at the applicable total
             91      disability compensation rate, shall be reduced, to the extent allowable by law, by the dollar amount
             92      of 50% of the Social Security retirement benefits received by the employee during the same period.
             93          (6) (a) A finding by the commission of permanent total disability is not final, unless
             94      otherwise agreed to by the parties, until:
             95          (i) an administrative law judge reviews a summary of reemployment activities undertaken
             96      pursuant to Chapter 8, Utah Injured Worker Reemployment Act;
             97          (ii) the employer or its insurance carrier submits to the administrative law judge a
             98      reemployment plan as prepared by a qualified rehabilitation provider reasonably designed to return
             99      the employee to gainful employment or the employer or its insurance carrier provides the
             100      administrative law judge notice that the employer or its insurance carrier will not submit a plan;
             101      and
             102          (iii) the administrative law judge, after notice to the parties, holds a hearing, unless
             103      otherwise stipulated, to consider evidence regarding rehabilitation and to review any reemployment
             104      plan submitted by the employer or its insurance carrier under Subsection (6)(a)(ii).
             105          (b) Prior to the finding becoming final, the administrative law judge shall order:
             106          (i) the initiation of permanent total disability compensation payments to provide for the
             107      employee's subsistence; and
             108          (ii) the payment of any undisputed disability or medical benefits due the employee.
             109          (c) The employer or its insurance carrier shall be given credit for any disability payments
             110      made under Subsection (6)(b) against its ultimate disability compensation liability under this
             111      chapter or Chapter 3, Utah Occupational Disease Act.
             112          (d) An employer or its insurance carrier may not be ordered to submit a reemployment
             113      plan. If the employer or its insurance carrier voluntarily submits a plan, the plan is subject to
             114      Subsections (6)(d)(i) through (iii).
             115          (i) The plan may include retraining, education, medical and disability compensation
             116      benefits, job placement services, or incentives calculated to facilitate reemployment funded by the
             117      employer or its insurance carrier.
             118          (ii) The plan shall include payment of reasonable disability compensation to provide for
             119      the employee's subsistence during the rehabilitation process.
             120          (iii) The employer or its insurance carrier shall diligently pursue the reemployment plan.


             121      The employer's or insurance carrier's failure to diligently pursue the reemployment plan shall be
             122      cause for the administrative law judge on the administrative law judge's own motion to make a
             123      final decision of permanent total disability.
             124          (e) If a preponderance of the evidence shows that successful rehabilitation is not possible,
             125      the administrative law judge shall order that the employee be paid weekly permanent total
             126      disability compensation benefits.
             127          (7) (a) The period of benefits commences on the date the employee became permanently
             128      totally disabled, as determined by a final order of the commission based on the facts and evidence,
             129      and ends:
             130          (i) with the death of the employee; or
             131          (ii) when the employee is capable of returning to regular, steady work.
             132          (b) An employer or its insurance carrier may provide or locate for a permanently totally
             133      disabled employee reasonable, medically appropriate, part-time work in a job earning at least
             134      minimum wage provided that employment may not be required to the extent that it would
             135      disqualify the employee from Social Security disability benefits.
             136          (c) An employee shall fully cooperate in the placement and employment process and
             137      accept the reasonable, medically appropriate, part-time work.
             138          (d) In a consecutive four-week period when an employee's gross income from the work
             139      provided under Subsection (7)(b) exceeds $500, the employer or insurance carrier may reduce the
             140      employee's permanent total disability compensation by 50% of the employee's income in excess
             141      of $500.
             142          (e) If a work opportunity is not provided by the employer or its insurance carrier, a
             143      permanently totally disabled employee may obtain medically appropriate, part-time work subject
             144      to the offset provisions contained in Subsection (7)(d).
             145          (f) (i) The commission shall establish rules regarding the part-time work and offset.
             146          (ii) The adjudication of disputes arising under Subsection (7) is governed by Part 8,
             147      Adjudication.
             148          (g) The employer or its insurance carrier shall have the burden of proof to show that
             149      medically appropriate part-time work is available.
             150          (h) The administrative law judge may:
             151          (i) excuse an employee from participation in any job that would require the employee to


             152      undertake work exceeding the employee's medical capacity and residual functional capacity or for
             153      good cause; or
             154          (ii) allow the employer or its insurance carrier to reduce permanent total disability benefits
             155      as provided in Subsection (7)(d) when reasonable, medically appropriate, part-time employment
             156      has been offered but the employee has failed to fully cooperate.
             157          (8) When an employee has been rehabilitated or the employee's rehabilitation is possible
             158      but the employee has some loss of bodily function, the award shall be for permanent partial
             159      disability.
             160          (9) As determined by an administrative law judge, an employee is not entitled to disability
             161      compensation, unless the employee fully cooperates with any evaluation or reemployment plan
             162      under this chapter or Chapter 3, Utah Occupational Disease Act. The administrative law judge
             163      shall dismiss without prejudice the claim for benefits of an employee if the administrative law
             164      judge finds that the employee fails to fully cooperate, unless the administrative law judge states
             165      specific findings on the record justifying dismissal with prejudice.
             166          (10) (a) The loss or permanent and complete loss of the use of both hands, both arms, both
             167      feet, both legs, both eyes, or any combination of two such body members constitutes total and
             168      permanent disability, to be compensated according to this section.
             169          (b) A finding of permanent total disability pursuant to Subsection (10)(a) is final.
             170          (11) (a) An insurer or self-insured employer may periodically reexamine a permanent total
             171      disability claim, except those based on Subsection (10), for which the insurer or self-insured
             172      employer had or has payment responsibility to determine whether the worker remains permanently
             173      totally disabled.
             174          (b) Reexamination may be conducted no more than once every three years after an award
             175      is final, unless good cause is shown by the employer or its insurance carrier to allow more frequent
             176      reexaminations.
             177          (c) The reexamination may include:
             178          (i) the review of medical records;
             179          (ii) employee submission to reasonable medical evaluations;
             180          (iii) employee submission to reasonable rehabilitation evaluations and retraining efforts;
             181          (iv) employee disclosure of Federal Income Tax Returns;
             182          (v) employee certification of compliance with Section 34A-2-110 ; and


             183          (vi) employee completion of sworn affidavits or questionnaires approved by the division.
             184          (d) The insurer or self-insured employer shall pay for the cost of a reexamination with
             185      appropriate employee reimbursement pursuant to rule for reasonable travel allowance and per diem
             186      as well as reasonable expert witness fees incurred by the employee in supporting the employee's
             187      claim for permanent total disability benefits at the time of reexamination.
             188          (e) If an employee fails to fully cooperate in the reasonable reexamination of a permanent
             189      total disability finding, an administrative law judge may order the suspension of the employee's
             190      permanent total disability benefits until the employee cooperates with the reexamination.
             191          (f) (i) Should the reexamination of a permanent total disability finding reveal evidence that
             192      reasonably raises the issue of an employee's continued entitlement to permanent total disability
             193      compensation benefits, an insurer or self-insured employer may petition the Division of
             194      Adjudication for a rehearing on that issue. The petition shall be accompanied by documentation
             195      supporting the insurer's or self-insured employer's belief that the employee is no longer
             196      permanently totally disabled.
             197          (ii) If the petition under Subsection (11)(f)(i) demonstrates good cause, as determined by
             198      the Division of Adjudication, an administrative law judge shall adjudicate the issue at a hearing.
             199          (iii) Evidence of an employee's participation in medically appropriate, part-time work may
             200      not be the sole basis for termination of an employee's permanent total disability entitlement, but
             201      the evidence of the employee's participation in medically appropriate, part-time work under
             202      Subsection (7) may be considered in the reexamination or hearing with other evidence relating to
             203      the employee's status and condition.
             204          (g) In accordance with Section 34A-1-309 , the administrative law judge may award
             205      reasonable attorneys fees to an attorney retained by an employee to represent the employee's
             206      interests with respect to reexamination of the permanent total disability finding, except if the
             207      employee does not prevail, the attorneys fees shall be set at $1,000. The attorneys fees shall be
             208      paid by the employer or its insurance carrier in addition to the permanent total disability
             209      compensation benefits due.
             210          (h) During the period of reexamination or adjudication if the employee fully cooperates,
             211      each insurer, self-insured employer, or the Employers' Reinsurance Fund shall continue to pay the
             212      permanent total disability compensation benefits due the employee.
             213          (12) If any provision of this section, or the application of any provision to any person or


             214      circumstance, is held invalid, the remainder of this section shall be given effect without the invalid
             215      provision or application.
             216          Section 2. Section 34A-3-113 is enacted to read:
             217          34A-3-113. Presumption for fire department employees.
             218          (1) As used in this section:
             219          (a) (i) "Fire department employee" means an individual that:
             220          (A) is a member of a fire department or other organization that:
             221          (I) provides fire suppression and other fire-related services; and
             222          (II) is an agency of a political subdivision; and
             223          (B) (I) is in a capacity that includes responsibility for the extinguishment of fire; or
             224          (II) is an emergency medical service provider, as defined in Section 26-8a-102 , who is a
             225      member of a fire department or other organization described in Subsection (1)(a)(i) when
             226      providing services as an emergency medical service provider.
             227          (ii) "Fire department employee" includes a volunteer member of a fire department or other
             228      organization described in Subsection (1)(a)(i).
             229          (b) (i) "Line-of-duty employment" means an activity of a fire department employee for
             230      which the fire department employee is obligated or authorized to perform as a fire department
             231      employee by:
             232          (A) rule;
             233          (B) condition of employment or service; or
             234          (C) law.
             235          (ii) "Line-of-duty employment" includes a social, ceremonial, or athletic function that the
             236      fire department employee is assigned to or compensated for by the fire department or other
             237      organization that is being served by the fire department employee.
             238          (c) "Presumptive occupational disease" means:
             239          (i) heart disease, including:
             240          (A) coronary sclerosis; or
             241          (B) myocarditis;
             242          (ii) hypertension;
             243          (iii) lung disease, including pneumonia;
             244          (iv) one of the following cancers;


             245          (A) aden cancer;
             246          (B) bladder cancer;
             247          (C) brain cancer;
             248          (D) breast cancer;
             249          (E) cancer of the blood or lymphatic systems;
             250          (F) cancer of the digestive system;
             251          (G) colon cancer;
             252          (H) kidney cancer;
             253          (I) leukemia;
             254          (J) liver cancer;
             255          (K) lung cancer;
             256          (L) lymphoma, except for Hodgkin's disease;
             257          (M) mesothelioma of the respiratory tract;
             258          (N) multiple myeloma;
             259          (O) pancreatic cancer;
             260          (P) prostate cancer;
             261          (Q) rectal cancer;
             262          (R) skin cancer;
             263          (S) testicular cancer; or
             264          (T) throat cancer; or
             265          (v) the following infectious diseases:
             266          (A) botulinum toxin;
             267          (B) cholera;
             268          (C) diphtheria;
             269          (D) ebola;
             270          (E) hemorrhagic fever;
             271          (F) hepatitis A, B, or C;
             272          (G) inhalation anthrax;
             273          (H) meningococcal disease;
             274          (I) pneumonic plague;
             275          (J) Q fever;


             276          (K) rabies;
             277          (L) ricin;
             278          (M) smallpox;
             279          (N) staphylococcal enterotoxin B;
             280          (O) T-2 mycotoxins;
             281          (P) tuberculosis;
             282          (Q) tularemia;
             283          (R) Venezuelan equine encephalitis; or
             284          (S) any uncommon infectious disease the contraction of which the commission by rule,
             285      made in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, determines
             286      to be related to the hazards which a fire department employee would be subject.
             287          (2) Notwithstanding the other provisions of this chapter or Chapter 2, Workers'
             288      Compensation Act, for a claim for compensation under this chapter that meets the requirements
             289      of Subsection (3), there is a rebuttable presumption that a presumptive occupational disease:
             290          (a) arose out of and in the course of line-of-duty employment; and
             291          (b) is medically caused or aggravated by the line-of-duty employment described in
             292      Subsection (2)(a).
             293          (3) The presumption described in Subsection (2) is created if:
             294          (a) the claim for compensation under this chapter is filed within the time periods provided
             295      in Sections 34A-3-108 and 34A-3-109 ;
             296          (b) the fire department employee for which the claim is filed is employed in the
             297      line-of-duty employment:
             298          (i) for at least 36 months; and
             299          (ii) (A) at the time the claim for compensation is filed; or
             300          (B) within no more than three years before the claim for compensation is filed;
             301          (c) (i) as a condition of being employed in line-of-duty employment, the fire department
             302      employee passed a physical examination before the fire department employee made a claim under
             303      this chapter for a presumptive occupational disease; and
             304          (ii) the examination described in Subsection (3)(c)(i) did not indicate evidence of a
             305      presumptive occupational disease; and
             306          (d) the claim for compensation under this chapter is for a presumptive occupational


             307      disease.
             308          (4) The presumption described in Subsection (2) may be rebutted if the employer or the
             309      employer's insurer establishes by a preponderance of the evidence that the presumptive
             310      occupational disease:
             311          (a) did not arise out of and in the course of the line-of-duty employment; and
             312          (b) was not medically caused or aggravated by the line-of-duty employment described in
             313      Subsection (4)(a).
             314          (5) Notwithstanding Subsection (3), an employer is not liable for a presumptive
             315      occupational disease if after a fire department employee is no longer employed in the line-of-duty
             316      employment, the fire department employee is injuriously exposed to the hazards of the presumptive
             317      occupational disease as provided in Section 34A-3-105 .
             318          (6) Notwithstanding the other provisions of this section, Title 26, Chapter 6a, Disease
             319      Testing and Workers' Compensation Presumption for Benefit of Emergency Medical Services
             320      Providers, governs whether there is or is not a presumption that a disease, as defined in Section
             321      26-6a-1 , is compensable under this chapter or Chapter 2, Workers' Compensation Act.
             322          (7) This section may not be construed as preventing a fire department employee from
             323      receiving workers' compensation benefits under this chapter or Chapter 2, Workers' Compensation
             324      Act, because the fire department employee fails to meet the requirements under this section to
             325      establish the rebuttable presumption described in Subsection (2).





Legislative Review Note
    as of 1-29-02 7:11 AM



This bill creates a class consisting of certain firefighters and medical providers of fire departments.
For this class the bill provides a rebuttable presumption that certain diseases presumptively arose
as a result of working for the fire department and therefore are compensable under workers'
compensation statutes. Under equal protection principles of the Constitution of the United States
and the uniform operation of the laws provisions of the Utah Constitution, there are limits on a
legislature's ability to establish classifications and then treat members of the classes differently.
In addition, because of the exclusive remedy element of workers' compensation, the open courts
provision of the Utah Constitution may be implicated if the remedies provided under workers'
compensation are found inadequate. In examining the permissibility of classes, courts look to
factors such as the relationship between the class and the legislative objective being pursued. For
example, a court may look at the relationship between the creation of the presumption and the level
of exposure fire department employees may experience because of the nature of their employment.

Office of Legislative Research and General Counsel


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