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S.B. 58 Enrolled
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8 LONG TITLE
9 General Description:
10 This bill modifies the Workers' Compensation Act to address issues related to benefits.
11 Highlighted Provisions:
12 This bill:
13 . defines terms;
14 . imposes penalties if an employer unlawfully, directly pays workers' compensation
15 benefits;
16 . addresses benefits paid a dependent; and
17 . makes technical amendments.
18 Monies Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill coordinates with S.B. 108, Offset of Workers' Compensation and Social
22 Security, to make technical changes.
23 Utah Code Sections Affected:
24 AMENDS:
25 34A-2-102, as last amended by Laws of Utah 2000, Chapter 222
26 34A-2-403, as renumbered and amended by Laws of Utah 1997, Chapter 375
27 34A-2-414, as renumbered and amended by Laws of Utah 1997, Chapter 375
28 34A-2-415, as last amended by Laws of Utah 1998, Chapter 13
29 34A-2-416, as renumbered and amended by Laws of Utah 1997, Chapter 375
30 34A-2-702, as renumbered and amended by Laws of Utah 1997, Chapter 375
31 34A-2-801, as last amended by Laws of Utah 2006, Chapter 295
32 ENACTS:
33 34A-2-201.3, Utah Code Annotated 1953
34
35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 34A-2-102 is amended to read:
37 34A-2-102. Definition of terms.
38 (1) As used in this chapter:
39 [
40 under Section 34A-2-409 .
41 [
42 compensation due:
43 [
44 [
45 [
46 or Chapter 3, Utah Occupational Disease Act.
47 [
48 (A) an administrative law judge; or[
49 (B) in accordance with Section 34A-2-801 [
50 (I) the commissioner; or
51 (II) the Appeals Board [
52 (ii) "Decision" includes:
53 [
54 benefit under this chapter or Chapter 3, Utah Occupational Disease Act; or
55 [
56 Occupational Disease Act.
57 [
58 otherwise.
59 [
60 entitlement to compensation as a consequence of becoming medically impaired as to function.
61 Disability can be total or partial, temporary or permanent, industrial or nonindustrial.
62 [
63 [
64 functional abnormality or loss. Impairment may be either temporary or permanent, industrial or
65 nonindustrial.
66 [
67 duties, privileges, immunities, or other interests of one or more specific persons, but not a class
68 of persons.
69 [
70 employment" includes [
71 an employee because of the employee's employment.
72 [
73 does not include a disease, except as the disease results from the injury.
74 [
75 employment, means the freedom from danger to the life or health of employees reasonably
76 permitted by the nature of the employment.
77 [
78 created in Title 31A, Chapter 33, Workers' Compensation Fund.
79 (2) As used in this chapter and Chapter 3, Utah Occupational Disease Act:
80 (a) "Brother or sister" includes a half brother or sister.
81 (b) "Child" includes:
82 (i) a posthumous child; or
83 (ii) a child legally adopted prior to an injury.
84 Section 2. Section 34A-2-201.3 is enacted to read:
85 34A-2-201.3. Direct payments prohibited except by self-insured employer.
86 (1) An employer who is not a self-insured employer, as defined in Section 34A-2-201.5 ,
87 may not pay a benefit provided for under this chapter and Chapter 3, Utah Occupational Disease
88 Act, directly:
89 (a) to an employee; or
90 (b) for the employee.
91 (2) (a) Subject to Title 63, Chapter 46b, Administrative Procedures Act, if the division
92 finds that an employer is violating or has violated Subsection (1), the division shall send written
93 notice to the employer of the requirements of this section and Section 34A-2-201 .
94 (b) The division shall send the notice described in Subsection (2)(a) to the last address
95 on the records of the commission for the employer.
96 (3) (a) If, after the division mails the notice required by Subsection (2) to an employer,
97 the employer again violates Subsection (1), the division may impose a penalty against the
98 employer of up to $1,000 for each violation.
99 (b) If, after the division imposes a penalty under Subsection (3)(a) against the employer,
100 the employer again violates Subsection (1), the division may impose a penalty of up to $5,000
101 for each violation.
102 (4) The division shall deposit a penalty imposed under Subsection (3) into the
103 Uninsured Employers' Fund created by Section 34A-2-704 to be used for the purposes of that
104 fund.
105 (5) A penalty under this section is in addition to any other penalty imposed under this
106 chapter or Chapter 3 against an employer who fails to comply with Section 34A-2-201 .
107 (6) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
108 commission shall adopt rules to implement this section.
109 Section 3. Section 34A-2-403 is amended to read:
110 34A-2-403. Dependents -- Presumption.
111 (1) (a) The following persons [
112 support upon a deceased employee:
113 [
114 (1)(b) and (2)(b);
115 (ii) a child who is 18 years of age or older:
116 (A) if the child is:
117 (I) physically or mentally incapacitated; and
118 (II) dependent upon the parent[
119
120 and
121 (B) subject to the conditions of Subsections (1)(b) and (2)(b); and
122 [
123 34A-2-702 (5)[
124 time of the employee's death.
125 (b) Subsections (1)(a)(i) and (ii) require that:
126 (i) the deceased employee be the parent of the child; or
127 (ii) (A) the deceased employee be legally bound to support the child; and
128 (B) the child be living with the deceased employee at the time of the death of the
129 employee.
130 (2) (a) In a case not provided for in Subsection (1), the question of dependency, in
131 whole or in part, shall be determined in accordance with the facts in each particular case existing
132 at the time of the injury or death of an employee[
133 (i) except for purposes of a dependency [
134 34A-2-702 (5)[
135 (ii) subject to the other provisions of this section.
136 (b) A person may not be considered [
137 (i) a member of the family of the deceased employee;
138 (ii) the spouse of the deceased employee;
139 (iii) a lineal descendant or ancestor of the deceased employee; or
140 (iv) a brother or sister of the deceased employee.
141 [
142 [
143 [
144 [
145 [
146 Section 4. Section 34A-2-414 is amended to read:
147 34A-2-414. Benefits in case of death -- Distribution of award to dependents --
148 Death of dependents -- Remarriage of surviving spouse.
149 (1) (a) [
150 an employee shall be paid to one or more of the dependents of the decedent employee for the
151 benefit of all the dependents[
152 (b) [
153 determined by the commission, benefits in case of death of an employee shall be apportioned
154 among the dependents [
155
156 [
157
158 (i) dividing the amount of benefits by the number of dependents; and
159 (ii) allotting each dependent an equal share.
160 (c) If one or more of the dependents described in Subsection (1)(a) is partly dependent,
161 the commission may apportion the benefits in a manner different than Subsection (1)(b).
162 (d) In the case of a minor child who is a dependent, a benefit shall be paid to:
163 (i) the minor child's surviving parent; or
164 (ii) if there is no surviving parent, a court appointed custodian or guardian.
165 (2) [
166 benefit is paid for a dependent, shall apply the [
167 more beneficiaries [
168
169 (3) In all cases of death [
170 (a) the dependents are a surviving spouse and one or more minor children, it [
171 is sufficient for the surviving spouse to [
172 for benefits on behalf of [
173 (b) all of the dependents are [
174
175 (4) [
176 and interests of [
177
178 have a surviving parent or court appointed custodian or guardian, direct that the benefits be
179 deposited into an interest bearing account for the purpose of receiving a payment due the minor
180 [
181 (b) Monies deposited into an interest bearing account under Subsection (4)(a) shall be
182 released to:
183 (i) a court appointed custodian or guardian of the minor dependent when the custodian
184 or guardian is appointed; or
185 (ii) a minor dependent when the minor dependent becomes 18 years of age.
186 (c) The commission, in accordance with Title 63, Chapter 46a, Utah Administrative
187 Rulemaking Act, may make rules related to the requirements of an interest bearing account
188 described in Subsection (4)(a).
189 (5) [
190 covered by weekly payments authorized by this section, the right of the deceased dependent to
191 compensation under this chapter or Chapter 3, Utah Occupational Disease Act, [
192 ceases.
193 (6) (a) If a surviving spouse, who is a dependent of a deceased employee and who is
194 receiving the benefits of this chapter or Chapter 3, remarries, [
195 spouse's sole right after the remarriage to further [
196 is the right to receive in a lump sum the lesser of:
197 (i) the balance of the weekly compensation payments unpaid:
198 (A) from the [
199 (B) to the end of [
200 resulted; or
201 (ii) an amount equal to 52 weeks of compensation at the weekly compensation rate the
202 surviving spouse [
203 (b) [
204 on which a surviving spouse remarries, benefits payable under this chapter or Chapter 3, [
205
206
207 [
208 section shall be paid at intervals of not less than four weeks.
209 Section 5. Section 34A-2-415 is amended to read:
210 34A-2-415. Increase of benefits to a dependent -- Effect of death, marriage,
211 majority, or termination of dependency of children -- Death, divorce, or remarriage of
212 spouse.
213 If [
214 dependent minor child [
215 Occupational Disease Act, the [
216 cease [
217 [
218
219 (1) a minor child:
220 (a) dies;
221 (b) marries;
222 (c) becomes 18 years of age; or
223 (d) is no longer dependent; or
224 (2) [
225 (a) dies;
226 (b) divorces the employee; or
227 (c) subject to [
228 spouse, remarries.
229 Section 6. Section 34A-2-416 is amended to read:
230 34A-2-416. Additional benefits in special cases.
231 (1) [
232 wholly dependent person under this chapter or Chapter 3, Utah Occupational Disease Act,
233 extend indefinitely if at the termination of the benefits:
234 (a) the wholly dependent person is still in a dependent condition; and
235 (b) under all reasonable circumstances the wholly dependent person should be entitled
236 to additional benefits.
237 (2) If benefits are extended under Subsection (1):
238 (a) the liability of the employer or insurance carrier involved may not be extended; and
239 (b) the additional benefits allowed shall be paid out of the Employers' Reinsurance Fund
240 created in Subsection 34A-2-702 (1).
241 Section 7. Section 34A-2-702 is amended to read:
242 34A-2-702. Employers' Reinsurance Fund -- Injury causing death -- Burial
243 expenses -- Payments to dependents.
244 (1) (a) There is created an Employers' Reinsurance Fund for the purpose of making
245 [
246 disease occurring on or before June 30, 1994. [
247 section shall be made in accordance with this chapter or Chapter 3, Utah Occupational Disease
248 Act. The Employers' Reinsurance Fund [
249 accident or occupational [
250 (b) The Employers' Reinsurance Fund [
251 held in the "Special Fund," the "Combined Injury Fund," or the "Second Injury Fund."
252 (c) The commissioner shall appoint an administrator of the Employers' Reinsurance
253 Fund.
254 (d) The state treasurer shall be the custodian of the Employers' Reinsurance Fund[
255
256 (e) The administrator shall make provisions for and direct [
257 Employers' Reinsurance Fund.
258 [
259 fees may be paid from the [
260 (2) The state treasurer shall:
261 (a) receive workers' compensation premium assessments from the State Tax
262 Commission; and
263 (b) invest the Employers' Reinsurance Fund to ensure maximum investment return for
264 both long and short term investments in accordance with Section 51-7-12.5 .
265 (3) (a) The administrator may employ, retain, or appoint counsel to represent the
266 Employers' Reinsurance Fund in [
267 against or on behalf of the [
268 (b) If requested by the commission, the attorney general shall aid in representation of
269 the [
270 (4) The liability of the state, its departments, agencies, instrumentalities, elected or
271 appointed officials, or other duly authorized agents, with respect to payment of [
272 compensation benefits, expenses, fees, medical expenses, or disbursement properly chargeable
273 against the Employers' Reinsurance Fund, is limited to the cash or assets in the Employers'
274 Reinsurance Fund, and they are not otherwise, in any way, liable for the operation, debts, or
275 obligations of the Employers' Reinsurance Fund.
276 (5) (a) If injury causes death within a period of 312 weeks from the date of the
277 accident, the employer or insurance carrier shall pay:
278 (i) the burial expenses of the deceased as provided in Section 34A-2-418 [
279 [
280 (ii) benefits in the [
281
282 [
283 death, the payment by the employer or its insurance carrier shall be:
284 (A) subject to Subsections (5)(b)(i)(B) and (C), 66-2/3% of the decedent's average
285 weekly wage at the time of the injury[
286 (B) not more than a maximum of 85% of the state average weekly wage at the time of
287 the injury per week; and
288 (C) (I) not less than a minimum of $45 per week, plus:
289 (Aa) $5 for a dependent spouse[
290 (Bb) $5 for each dependent minor child under the age of 18 years, up to a maximum of
291 four such dependent minor children[
292 (II) not exceeding:
293 (Aa) the average weekly wage of the employee at the time of the injury[
294
295 (Bb) 85% of the state average weekly wage at the time of the injury per week.
296 (ii) Compensation shall continue during dependency for the remainder of the period
297 between the date of the death and the expiration of 312 weeks after the date of the injury.
298 (iii) The payment by the employer or its insurance carrier to a wholly dependent
299 [
300 described in Subsection (5)[
301 [
302 50% of any weekly federal Social Security death benefits paid to [
303 [
304 (iv) The issue of dependency [
305
306 If in [
307 the applicant is no longer a wholly dependent person, the applicant:
308 (A) may be considered a partly dependent or nondependent person; and
309 (B) shall be paid [
310 may be determined under Subsection (5)[
311 [
312 deceased employee [
313 period from the date of death of the employee. This presumption [
314 the initial 312-week period [
315 (ii) In determining the [
316 initial 312-week period, [
317 Security death benefits received by that surviving spouse shall be excluded.
318 [
319 the payment shall be:
320 (A) subject to Subsection (5)(d)(i)(B) and (C), 66-2/3% of the decedent's average
321 weekly wage at the time of the injury[
322 (B) not more than a maximum of 85% of the state average weekly wage at the time of
323 the injury per week; and
324 (C) not less than a minimum of $45 per week.
325 (ii) Compensation shall continue during dependency for the remainder of the period
326 between the date of death and the expiration of 312 weeks after the date of injury [
327
328 than a maximum of $30,000.
329 (iii) The benefits provided for in this Subsection (5)(d) shall be in keeping with the
330 circumstances and conditions of dependency existing at the date of injury, and any amount
331 [
332 with the general provisions of this chapter and Chapter 3, Utah Occupational Disease Act.
333 (iv) Benefits to [
334 (5)[
335 (A) shall be determined [
336 circumstances and conditions of dependency existing at the time of the dependency review; and
337 (B) may be paid in an amount not exceeding the maximum weekly rate that a partly
338 dependent [
339 (v) [
340 during [
341 [
342 [
343
344
345 34A-2-414 .
346 (ii) The total benefits awarded to all parties concerned [
347 maximum provided for by law.
348 (6) The Employers' Reinsurance Fund:
349 (a) shall be:
350 (i) used only in accordance with Subsection (1) for:
351 (A) the purpose of making [
352 or occupational [
353 section and Section 34A-2-703 ; and
354 (B) payment of:
355 (I) reasonable costs of administering the Employers' Reinsurance Fund; or
356 (II) fees required to be paid by the Employers' Reinsurance Fund;
357 (ii) expended according to processes that can be verified by audit; and
358 (b) may not be used for:
359 (i) administrative costs unrelated to the [
360 (ii) [
361 (6)(a).
362 Section 8. Section 34A-2-801 is amended to read:
363 34A-2-801. Initiating adjudicative proceedings -- Procedure for review of
364 administrative action.
365 (1) (a) To contest an action of the employee's employer or its insurance carrier
366 concerning a compensable industrial accident or occupational disease alleged by the employee[
367 or a dependent any of the following shall file an application for hearing with the Division of
368 Adjudication:
369 (i) the employee; [
370 (ii) a representative of the employee, the qualifications of whom are defined in rule by
371 the commission[
372 (iii) a dependent as described in Section 34A-2-403 .
373 (b) To appeal the imposition of a penalty or other administrative act imposed by the
374 division on the employer or its insurance carrier for failure to comply with this chapter or
375 Chapter 3, Utah Occupational Disease Act, any of the following shall file an application for
376 hearing with the Division of Adjudication:
377 (i) the employer;
378 (ii) the insurance carrier; or
379 (iii) a representative of either the employer or the insurance carrier, the qualifications of
380 whom are defined in rule by the commission.
381 (c) A person providing goods or services described in Subsections 34A-2-407 (12) and
382 34A-3-108 (12) may file an application for hearing in accordance with Section 34A-2-407 or
383 34A-3-108 .
384 (d) An attorney may file an application for hearing in accordance with Section
385 34A-1-309 .
386 (2) Unless a party in interest appeals the decision of an administrative law judge in
387 accordance with Subsection (3), the decision of an administrative law judge on an application
388 for hearing filed under Subsection (1) is a final order of the commission 30 days after the [
389 day on which the decision is issued.
390 (3) (a) A party in interest may appeal the decision of an administrative law judge by
391 filing a motion for review with the Division of Adjudication within 30 days of the date the
392 decision is issued.
393 (b) Unless a party in interest to the appeal requests under Subsection (3)(c) that the
394 appeal be heard by the Appeals Board, the commissioner shall hear the review.
395 (c) A party in interest may request that an appeal be heard by the Appeals Board by
396 filing the request with the Division of Adjudication:
397 (i) as part of the motion for review; or
398 (ii) if requested by a party in interest who did not file a motion for review, within 20
399 days of the [
400 (d) A case appealed to the Appeals Board shall be decided by the majority vote of the
401 Appeals Board.
402 (4) All records on appeals shall be maintained by the Division of Adjudication. Those
403 records shall include an appeal docket showing the receipt and disposition of the appeals on
404 review.
405 (5) Upon appeal, the commissioner or Appeals Board shall make its decision in
406 accordance with Section 34A-1-303 .
407 (6) The commissioner or Appeals Board shall promptly notify the parties to [
408
409 (7) The decision of the commissioner or Appeals Board is final unless within 30 days
410 after the date the decision is issued further appeal is initiated under the provisions of this section
411 or Title 63, Chapter 46b, Administrative Procedures Act.
412 (8) (a) Within 30 days after the [
413 Appeals Board is issued, [
414 action in the court of appeals against the commissioner or Appeals Board for the review of the
415 decision of the commissioner or Appeals Board.
416 (b) In an action filed under Subsection (8)(a):
417 (i) any other party to the proceeding before the commissioner or Appeals Board shall be
418 made a party; and
419 (ii) the commission shall be made a party.
420 (c) A party claiming to be aggrieved may seek judicial review only if the party [
421
422 (d) At the request of the court of appeals, the commission shall certify and file with the
423 court all documents and papers and a transcript of all testimony taken in the matter together
424 with the decision of the commissioner or Appeals Board.
425 Section 9. Coordinating S.B. 58 with S.B. 108 -- Technical amendments.
426 If this S.B. 58 and S.B. 108, Offset of Workers' Compensation and Social Security, both
427 pass, it is the intent of the Legislature that the Office of Legislative Research and General
428 Counsel in preparing the Utah Code database for publication coordinate the bills as follows:
429 (1) the amendments to Subsection 34A-2-702 (5)(b)(i) in this bill supersede the
430 amendments to that subsection in S.B. 108;
431 (2) the amendments to Subsection 34A-2-702 (5)(b)(iii) in S.B. 108 supercede the
432 amendments to that subsection in this bill;
433 (3) the amendments to Subsections 34A-2-702 (5)(b)(iv) and (5)(c)(i) in this bill
434 supersede the amendments to those subsections in S.B. 108;
435 (4) the amendments to Subsection 34A-2-702 (5)(c)(ii) in S.B. 108 supersede the
436 amendments to that subsection in this bill, except that the introductory phrase in Subsection
437 34A-2-702 (5)(c)(ii)(A) is deleted and replaced with the following:
438 "(ii)(A) In determining the annual income of the surviving spouse after the initial
439 312-week period, there shall be excluded 50% of a federal Social Security death benefit that the
440 surviving spouse:"; and
441 (5) the amendments to Subsections 34A-2-702 (5)(d) and (e) in this bill supersede the
442 amendments to those subsections in S.B. 108.
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