Chief Sponsor: James A. Dunnigan

Senate Sponsor: Curtis S. Bramble


8     General Description:
9          This bill amends provisions of the Utah Labor Code regarding the Workers'
10     Compensation Advisory Council and the Labor Commission's Appeals Board.
11     Highlighted Provisions:
12          This bill:
13          ▸     permits the governor to appoint alternate members to the Labor Commission's
14     Appeals Board under certain conditions;
15          ▸     establishes term limits and compensation for alternate members of the Appeals
16     Board;
17          ▸     amends the membership of the Workers' Compensation Advisory Council to include
18     the following nonvoting members:
19               •     one member of the Senate appointed by the president of the Senate; and
20               •     one member of the House of Representatives appointed by the speaker of the
21     House of Representatives;
22          ▸     provides for the compensation of council members who are legislators; and
23          ▸     makes technical and conforming changes.
24     Money Appropriated in this Bill:
25          None
26     Other Special Clauses:
27          None
28     Utah Code Sections Affected:
29     AMENDS:

30          34A-1-205, as last amended by Laws of Utah 2013, Chapter 428
31          34A-2-107, as last amended by Laws of Utah 2018, Chapters 268 and 319

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 34A-1-205 is amended to read:
35          34A-1-205. Appeals Board -- Chair -- Appointment -- Compensation --
36     Qualifications.
37          (1) (a) There is created the Appeals Board within the commission consisting of three
38     members.
39          (b) The board may call and preside at adjudicative proceedings to review an order or
40     decision that is subject to review by the Appeals Board under this title.
41          (2) (a) [ The governor shall appoint the members with] With the consent of the Senate
42     and in accordance with this section[.], the governor shall appoint:
43          [(b)] (i) [One] one member of the board [shall be appointed] to represent employers[,
44     in making this appointment, the governor shall consider nominations from employer
45     organizations.]; and
46          [(c)] (ii) [One] one member of the board [shall be appointed] to represent employees[,
47     in making this appointment, the governor shall consider nominations from employee
48     organizations].
49          (b) With the advice and consent of the Senate and in accordance with this section, the
50     governor may appoint:
51          (i) one alternate member of the board to represent employers in the event that the
52     member representing employers is unavailable; or
53          (ii) one alternate member of the board to represent employees in the event that the
54     member representing employees is unavailable.
55          (c) In making the appointments described in this subsection, the governor shall:
56          (i) when appointing a member or alternate member to represent employers, consider
57     nominations from employer organizations;

58          (ii) when appointing a member or alternate member to represent employees, consider
59     nominations from employee organizations;
60          [(d)] (iii) [No] ensure that no more than two members [may] belong to the same
61     political party[.]; and
62          (iv) ensure that an alternate member belongs to the same political party as the member
63     for whom the alternate stands in.
64          [(e)] (d) The governor shall, at the time of appointment or reappointment, make
65     appointments to the board so that at least two of the members of the board are members of the
66     Utah State Bar in good standing or resigned from the Utah State Bar in good standing.
67          (3) (a) The term of a member and an alternate member shall be six years beginning on
68     March 1 of the year the member or alternate member is appointed, except that the governor
69     shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the
70     terms of members and alternate members are staggered so that one member and alternate
71     member is appointed every two years.
72          (b) The governor may remove a member or alternate member only for inefficiency,
73     neglect of duty, malfeasance or misfeasance in office, or other good and sufficient cause.
74          (c) A member or alternate member shall hold office until a successor is appointed and
75     has qualified.
76          (4) A member and alternate member shall be part-time and receive compensation as
77     provided by Title 67, Chapter 19, Utah State Personnel Management Act.
78          (5) (a) The chief officer of the board shall be the chair, who shall serve as the executive
79     and administrative head of the board.
80          (b) The governor shall appoint and may remove at will the chair from the position of
81     chair.
82          (6) A majority of the board shall constitute a quorum to transact business.
83          (7) (a) The commission shall provide the Appeals Board necessary staff support,
84     except as provided in Subsection (7)(b).
85          (b) At the request of the Appeals Board, the attorney general shall act as an impartial

86     aid to the Appeals Board in outlining the facts and the issues.
87          Section 2. Section 34A-2-107 is amended to read:
88          34A-2-107. Appointment of workers' compensation advisory council --
89     Composition -- Terms of members -- Duties -- Compensation.
90          (1) [The commissioner shall appoint a] There is created a workers' compensation
91     advisory council composed of:
92          (a) the following voting members whom the commissioner shall appoint:
93          (i) five employer representatives; and
94          (ii) five employee representatives; [and]
95          (b) the following nonvoting members whom the commissioner shall appoint:
96          (i) a representative of the workers' compensation insurance carrier that provides
97     workers' compensation insurance under Section 31A-22-1001;
98          (ii) a representative of a workers' compensation insurance carrier different from the
99     workers' compensation insurance carrier listed in Subsection (1)(b)(i);
100          (iii) a representative of health care providers;
101          (iv) the Utah insurance commissioner or the insurance commissioner's designee;
102          (v) the commissioner or the commissioner's designee; and
103          (vi) a representative of hospitals[.]; and
104          (c) the following nonvoting members:
105          (i) a member of the Senate whom the president of the Senate shall appoint; and
106          (ii) a member of the House of Representatives whom the speaker of the House of
107     Representatives shall appoint.
108          (2) Employers and employees shall consider nominating members of groups who
109     historically may have been excluded from the council, such as women, minorities, and
110     individuals with disabilities.
111          (3) (a) Except as required by Subsection (3)(b), as terms of current council members
112     expire, the commissioner, the president of the Senate, or the speaker of the House of
113     Representatives shall appoint in accordance with Subsection (1) each new member or

114     reappointed member to a two-year term beginning July 1 and ending June 30.
115          (b) Notwithstanding the requirements of Subsection (3)(a), the commissioner shall, at
116     the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
117     council members are staggered so that approximately half of the council is appointed every two
118     years.
119          (4) (a) When a vacancy occurs in the membership for any reason, the replacement shall
120     be appointed for the unexpired term.
121          (b) The commissioner shall terminate the term of a council member who ceases to be
122     representative as designated by the member's original appointment.
123          (5) The council shall confer at least quarterly for the purpose of advising the
124     commission, the division, and the Legislature on:
125          (a) the Utah workers' compensation and occupational disease laws;
126          (b) the administration of the laws described in Subsection (5)(a); and
127          (c) rules related to the laws described in Subsection (5)(a).
128          (6) Regarding workers' compensation, rehabilitation, and reemployment of employees
129     who acquire a disability because of an industrial injury or occupational disease the council
130     shall:
131          (a) offer advice on issues requested by:
132          (i) the commission;
133          (ii) the division; and
134          (iii) the Legislature; and
135          (b) make recommendations to:
136          (i) the commission; and
137          (ii) the division.
138          (7) (a) The council shall:
139          (i) study how to reduce hospital costs for purposes of medical benefits for workers'
140     compensation;
141          (ii) study hospital billing and payment trends in the state;

142          (iii) study hospital fee schedules used in other states; and
143          (iv) collect information from third-party hospital bill review companies in the state or
144     region, to identify an average reimbursement rate that represents the approximate rate at which
145     a workers' compensation insurance carrier or self-insured employer should expect to reimburse
146     a hospital for billed hospital fees for covered medical services in the state.
147          (b) In accordance with Section 68-3-14, the council shall submit a written report to the
148     Business and Labor Interim Committee no later than September 1, 2019, 2020, and 2021. Each
149     written report shall include:
150          (i) recommendations on how to reduce hospital costs for purposes of medical benefits
151     for workers' compensation;
152          (ii) aggregate data on hospital billing and payment trends in the state;
153          (iii) the results of the council's study of hospital fee schedules from other states; and
154          (iv) the approximate rate at which a workers' compensation insurance carrier or
155     self-insured employer should expect to reimburse a hospital for billed hospital fees for covered
156     medical services, calculated in accordance with Subsection (7)(a)(iv).
157          (c) For each report described in Subsection (7)(b), the commission may contract with a
158     third-party expert to assist with the council's duties described in Subsections (7)(a) and (b).
159          (8) The commissioner or the commissioner's designee shall serve as the chair of the
160     council and call the necessary meetings.
161          (9) The commission shall provide staff support to the council.
162          (10) (a) [A] Except as provided in Subsections (10)(b) and (10)(c), a member may not
163     receive compensation or benefits for the member's service[, but].
164          (b) A member who is not a legislator may receive per diem and travel expenses in
165     accordance with:
166          [(a)] (i) Section 63A-3-106;
167          [(b)] (ii) Section 63A-3-107; and
168          [(c)] (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
169     63A-3-107.

170          (c) A member who is a legislator may receive compensation and travel expenses in
171     accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation
172     and Expenses.