1     
WORKERS' COMPENSATION DEPENDENT BENEFITS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Karen Mayne

5     
House Sponsor: Mike Schultz

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to workers' compensation death benefits.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies the calculation of death benefits paid to one or more dependents of a
13     deceased employee; and
14          ▸     makes technical changes.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          34A-2-702, as last amended by Laws of Utah 2008, Chapters 27 and 90
22     

23     Be it enacted by the Legislature of the state of Utah:
24          Section 1. Section 34A-2-702 is amended to read:
25          34A-2-702. Employers' Reinsurance Fund -- Injury causing death -- Burial
26     expenses -- Payments to dependents.
27          (1) (a) There is created an Employers' Reinsurance Fund for the purpose of making a
28     payment for an industrial accident or occupational disease occurring on or before June 30,
29     1994. A payment made under this section shall be made in accordance with this chapter or

30     Chapter 3, Utah Occupational Disease Act. The Employers' Reinsurance Fund has no liability
31     for an industrial accident or occupational disease occurring on or after July 1, 1994.
32          (b) The Employers' Reinsurance Fund succeeds to all money previously held in the
33     "Special Fund," the "Combined Injury Fund," or the "Second Injury Fund."
34          (c) The commissioner shall appoint an administrator of the Employers' Reinsurance
35     Fund.
36          (d) The state treasurer shall be the custodian of the Employers' Reinsurance Fund.
37          (e) The administrator shall make provisions for and direct a distribution from the
38     Employers' Reinsurance Fund.
39          (f) Reasonable costs of administering the Employers' Reinsurance Fund or other fees
40     may be paid from the Employers' Reinsurance Fund.
41          (2) The state treasurer shall:
42          (a) receive workers' compensation premium assessments from the State Tax
43     Commission; and
44          (b) invest the Employers' Reinsurance Fund to ensure maximum investment return for
45     both long and short term investments in accordance with Section 51-7-12.5.
46          (3) (a) The administrator may employ, retain, or appoint counsel to represent the
47     Employers' Reinsurance Fund in a proceeding brought to enforce a claim against or on behalf of
48     the Employers' Reinsurance Fund.
49          (b) If requested by the commission, the attorney general shall aid in representation of
50     the Employers' Reinsurance Fund.
51          (4) The liability of the state, its departments, agencies, instrumentalities, elected or
52     appointed officials, or other duly authorized agents, with respect to payment of compensation
53     benefits, expenses, fees, medical expenses, or disbursement properly chargeable against the
54     Employers' Reinsurance Fund, is limited to the cash or assets in the Employers' Reinsurance
55     Fund, and they are not otherwise, in any way, liable for the operation, debts, or obligations of
56     the Employers' Reinsurance Fund.
57          (5) (a) If injury causes death within a period of 312 weeks from the date of the

58     accident, the employer or insurance carrier shall pay:
59          (i) the burial expenses of the deceased as provided in Section 34A-2-418; and
60          (ii) benefits in the amount and to a person provided for in this Subsection (5).
61          (b) (i) If there is a wholly dependent person at the time of the death, the payment by the
62     employer or [its] the employer's insurance carrier shall be:
63          (A) subject to Subsections (5)(b)(i)(B) and (C), 66-2/3% of the decedent's average
64     weekly wage at the time of the injury;
65          (B) not more than a maximum of 85% of the state average weekly wage at the time of
66     the injury per week; and
67          (C) (I) not less than a minimum of $45 per week, plus:
68          (Aa) [$5] $20 for a dependent spouse; and
69          (Bb) [$5] $20 for each dependent minor child under the age of 18 years, up to a
70     maximum of four such dependent minor children; and
71          (II) not exceeding:
72          (Aa) the average weekly wage of the employee at the time of the injury; and
73          (Bb) 85% of the state average weekly wage at the time of the injury per week.
74          (ii) Compensation shall continue during dependency for the remainder of the period
75     between the date of the death and the expiration of 312 weeks after the date of the injury.
76          (iii) (A) The payment by the employer or [its] the employer's insurance carrier to a
77     wholly dependent person during dependency following the expiration of the first 312-week
78     period described in Subsection (5)(b)(ii) shall be an amount equal to the weekly benefits paid to
79     the wholly dependent person during the initial 312-week period, reduced by 50% of the federal
80     social security death benefits the wholly dependent person:
81          (I) is eligible to receive for a week as of the first day the employee is eligible to receive
82     a Social Security death benefit; and
83          (II) receives.
84          (B) An employer or [its] the employer's insurance carrier may not reduce compensation
85     payable under this Subsection (5)(b)(iii) on or after May 5, 2008, to a wholly dependent person

86     by an amount related to a cost-of-living increase to the social security death benefits that the
87     wholly dependent person is first eligible to receive for a week, notwithstanding whether the
88     employee is injured on or before May 4, 2008.
89          (C) For purposes of a wholly dependent person whose compensation payable is reduced
90     under this Subsection (5)(b)(iii) on or before May 4, 2008, the reduction is limited to the
91     amount of the reduction as of May 4, 2008.
92          (iv) The issue of dependency is subject to review at the end of the initial 312-week
93     period and annually after the initial 312-week period. If in a review it is determined that, under
94     the facts and circumstances existing at that time, the applicant is no longer a wholly dependent
95     person, the applicant:
96          (A) may be considered a partly dependent or nondependent person; and
97          (B) shall be paid the benefits as may be determined under Subsection (5)(d)(iii).
98          (c) (i) For purposes of a dependency determination, a surviving spouse of a deceased
99     employee is conclusively presumed to be wholly dependent for a 312-week period from the date
100     of death of the employee. This presumption does not apply after the initial 312-week period.
101          (ii) (A) In determining the annual income of the surviving spouse after the initial
102     312-week period, there shall be excluded 50% of a federal social security death benefit that the
103     surviving spouse:
104          (I) is eligible to receive for a week as of the first day the surviving spouse is eligible to
105     receive a Social Security death benefit; and
106          (II) receives.
107          (B) An employer or [its] the employer's insurance carrier may not reduce compensation
108     payable under this Subsection (5)(c)(ii) on or after May 5, 2008, to a surviving spouse by an
109     amount related to a cost-of-living increase to the social security death benefits that the surviving
110     spouse is first eligible to receive for a week, notwithstanding whether the employee is injured on
111     or before May 4, 2008.
112          (C) For purposes of a surviving spouse whose compensation payable is reduced under
113     this Subsection (5)(c)(ii) on or before May 4, 2008, the reduction is limited to the amount of the

114     reduction as of May 4, 2008.
115          (d) (i) If there is a partly dependent person at the time of the death, the payment shall
116     be:
117          (A) subject to Subsections (5)(d)(i)(B) and (C), 66-2/3% of the decedent's average
118     weekly wage at the time of the injury;
119          (B) not more than a maximum of 85% of the state average weekly wage at the time of
120     the injury per week; and
121          (C) not less than a minimum of $45 per week.
122          (ii) Compensation shall continue during dependency for the remainder of the period
123     between the date of death and the expiration of 312 weeks after the date of injury.
124     Compensation may not amount to more than a maximum of $30,000.
125          (iii) The benefits provided for in this Subsection (5)(d) shall be in keeping with the
126     circumstances and conditions of dependency existing at the date of injury, and any amount paid
127     under this Subsection (5)(d) shall be consistent with the general provisions of this chapter and
128     Chapter 3, Utah Occupational Disease Act.
129          (iv) Benefits to a person determined to be partly dependent under Subsection (5)(c):
130          (A) shall be determined in keeping with the circumstances and conditions of
131     dependency existing at the time of the dependency review; and
132          (B) may be paid in an amount not exceeding the maximum weekly rate that a partly
133     dependent person would receive if wholly dependent.
134          (v) A payment under this section shall be paid to a person during a person's dependency
135     by the employer or [its] the employer's insurance carrier.
136          (e) (i) Subject to Subsection (5)(e)(ii), if there is a wholly dependent person and also a
137     partly dependent person at the time of death, the benefits may be apportioned in a manner
138     consistent with Section 34A-2-414.
139          (ii) The total benefits awarded to all parties concerned may not exceed the maximum
140     provided for by law.
141          (6) The Employers' Reinsurance Fund:

142          (a) shall be:
143          (i) used only in accordance with Subsection (1) for:
144          (A) the purpose of making a payment for an industrial accident or occupational disease
145     occurring on or before June 30, 1994, in accordance with this section and Section 34A-2-703;
146     and
147          (B) payment of:
148          (I) reasonable costs of administering the Employers' Reinsurance Fund; or
149          (II) fees required to be paid by the Employers' Reinsurance Fund;
150          (ii) expended according to processes that can be verified by audit; and
151          (b) may not be used for:
152          (i) administrative costs unrelated to the Employers' Reinsurance Fund; or
153          (ii) an activity of the commission other than an activity described in Subsection (6)(a).