S.B. 160 Enrolled





Chief Sponsor: John L. Valentine

House Sponsor: Brian M. Greene

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Workers' Compensation Act to address settlements.
             10      Highlighted Provisions:
             11          This bill:
             12          .    permits settlements after the 12 year statute of limitations;
             13          .    permits settlements for claims under the Employers' Reinsurance Fund or the
             14      Uninsured Employers' Fund;
             15          .    clarifies that a full and final settlement extinguishes the employer's obligations
             16      unless issues are preserved;
             17          .    addresses method of payments under the full and final settlement; and
             18          .    makes technical and conforming changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25           34A-2-420 , as renumbered and amended by Laws of Utah 1997, Chapter 375
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 34A-2-420 is amended to read:
             29           34A-2-420. Continuing jurisdiction of commission -- No authority to change

             30      statutes of limitation -- Authority to destroy records -- Interest on award -- Authority to
             31      approve final settlement claims.
             32          (1) (a) The powers and jurisdiction of the commission over each case [shall be] is
             33      continuing.
             34          (b) After notice and hearing, the Division of Adjudication, commissioner, or Appeals
             35      Board in accordance with Part 8, Adjudication, may from time to time modify or change a
             36      former finding or order of the commission.
             37          (c) This section may not be interpreted as modifying [in any respect] the statutes of
             38      limitations contained in Section 34A-2-417 or other sections of this chapter or Chapter 3, Utah
             39      Occupational Disease Act, or authorizing the commission to change these statutes of
             40      limitations.
             41          [(d) The commission may not in any respect change the statutes of limitation referred
             42      to in Subsection (1)(c).]
             43          (d) In addition to other settlements permissible under this chapter or Chapter 3, Utah
             44      Occupational Disease Act, and notwithstanding Subsection (1)(c), the commission may
             45      approve a full and final settlement of an employee's claim for compensation under this chapter
             46      or Chapter 3, Utah Occupational Disease Act, including the payment of medical and disability
             47      benefits, if:
             48          (i) (A) the employee's claim for medical benefits is allowed under Subsection
             49      34A-2-417 (1), but the payment of disability benefits associated with the medical benefits and
             50      resulting treatment is barred pursuant to Subsection 34A-2-417 (2); and
             51          (B) the full and final settlement is presented to the commission for approval; or
             52          (ii) an employee's claim for compensation under this chapter or Chapter 3, Utah
             53      Occupational Disease Act, is the liability of the Employers' Reinsurance Fund created in
             54      Section 34A-2-702 or the Uninsured Employers' Fund created in Section 34A-2-704 .
             55          (2) [Records] A record pertaining to [cases that have] a case that has been closed and
             56      inactive for 10 years, other than [cases] a case of total permanent disability or [cases] a case in
             57      which a claim has been filed as in Section 34A-2-417 , may be destroyed at the discretion of the

             58      commission.
             59          (3) [Awards] An award made by a final order of the commission shall include interest
             60      at the rate of 8% per annum from the date when each benefit payment would have otherwise
             61      become due and payable.
             62          (4) Notwithstanding Subsection (1) and Section 34A-2-108 , an administrative law
             63      judge shall review and may approve the agreement of the parties to enter into a full and final
             64      settlement by means of a:
             65          (a) compromise settlement of disputed medical, disability, or death benefit entitlements
             66      under this chapter or Chapter 3, Utah Occupational Disease Act; or
             67          (b) commutation and settlement of reasonable future medical, disability, or death
             68      benefit entitlements under this chapter or Chapter 3 by means of a lump sum payment,
             69      structured settlement, or other appropriate payout.
             70          (5) A full and final settlement approved under this section shall extinguish the
             71      employer's liability to the employee under this chapter and Chapter 3, Utah Occupational and
             72      Disease Act, except for an issue that is expressly preserved.
             73          (6) A full and final settlement effectuating a compromise or commutation may provide
             74      for payment of benefits:
             75          (a) in cash or cash equivalents; or
             76          (b) through an insurance contract or by a third party if the commission determines that
             77      the payment provisions:
             78          (i) are secure and assign, transfer, or reinsure the financial obligation to make benefit
             79      payments to a qualified third party in compliance with commission rules; or
             80          (ii) do not relieve the parties of their underlying liability for payments required by the
             81      full and final settlement agreement.

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