2012 -- S 2301 SUBSTITUTE A

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LC00854/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO LABOR AND LABOR RELATIONS - RHODE ISLAND UNINSURED

EMPLOYERS FUND

     Introduced By: Senators P Fogarty, Ruggerio, McCaffrey, Bates, and Goodwin

     Date Introduced: February 01, 2012

     Referred To: Senate Labor

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 28-53-2 and 28-53-7 of the General Laws in Chapter 28-53

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entitled "Rhode Island Uninsured Employers Fund" are hereby amended to read as follows:

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     28-53-2. Establishment -- Sources -- Administration. -- (a) There shall be established

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within the department of labor and training a special restricted receipt account to be known as the

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Rhode Island uninsured employers fund. The fund shall be capitalized from excise taxes assessed

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against uninsured employers pursuant to the provisions of section 28-53-9 of this chapter and

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from general revenues appropriated by the legislature. Beginning in state fiscal year ending June

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30, 2012 2013, the legislature may appropriate up to two million dollars ($2,000,000) in general

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revenue funds annually for deposit into the Rhode Island uninsured employers fund.

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      (b) All moneys in the fund shall be mingled and undivided. The fund shall be

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administered by the director of the department of labor and training or his or her designee, but in

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no case shall the director incur any liability beyond the amounts paid into and earned by the fund.

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      (c) All amounts owed to the uninsured employers fund from illegally uninsured

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employers are intended to be excise taxes and as such, all ambiguities and uncertainties are to be

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resolved in favor of a determination that such assessments are excise taxes.

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     28-53-7. Payments to employees of uninsured employers. -- (a) Where it is determined

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that the employee was injured in the course of employment while working for an employer who

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fails to maintain a policy of workers' compensation insurance as required by Rhode Island general

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laws section 28-36-1, et seq., the uninsured employers fund shall pay the benefits to which the

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injured employee would be entitled pursuant to chapters 29 to 38 of this title subject to the

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limitations set forth herein.

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      (b) The workers' compensation court shall hear all petitions for payment from the fund

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pursuant to Rhode Island general laws section 28-30-1, et seq., provided, however, that the

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uninsured employers fund and the employer shall be named as parties to any petition seeking

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payment of benefits from the fund.

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      (c) Where an employee is deemed to be entitled to benefits from the uninsured

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employers fund, the fund shall pay benefits for disability and medical expenses as provided

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pursuant to chapters 29 to 38 of this title except that the employee shall not be entitled to receive

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benefits for loss of function and disfigurement pursuant to the provisions of Rhode Island general

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laws section 28-33-19.

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      (d) The fund shall pay cost, counsel and witness fees as provided in Rhode Island

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general laws section 28-35-32 to any employee who successfully prosecutes any petitions for

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compensation, petitions for medical expenses, petitions to amend a pretrial order or memorandum

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of agreement and all other employee petitions and to employees who successfully defend, in

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whole or in part, proceedings seeking to reduce or terminate any and all workers' compensation

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benefits; provided, however, that the attorney's fees awarded to counsel who represent the

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employee in petitions for lump sum commutation filed pursuant to Rhode Island general laws

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section 28-33-25 or in the settlement of disputed cases pursuant to Rhode Island general laws

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section 28-33-25.1 shall be limited to the maximum amount paid to counsel who serve as court

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appointed attorneys in workers' compensation proceedings as established by rule or order of the

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Rhode Island supreme court.

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      (e) In the event that the uninsured employer makes payment of any monies to the

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employee to compensate the employee for lost wages or medical expenses, the fund shall be

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entitled to a credit for all such monies received by or on behalf of the employee against any future

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benefits payable directly to the employee.

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      (f) This section shall apply to injuries that occur on or after January 1, 2012 2013.

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     SECTION 2. This act shall take effect upon passage and shall apply retroactively to all

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claims regardless of the date of injury.

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LC00854/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO LABOR AND LABOR RELATIONS - RHODE ISLAND UNINSURED

EMPLOYERS FUND

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     This act would provide that commencing in fiscal year ending June 30, 2013, the general

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assembly may appropriate up to $2,000,000 for deposit into the uninsured employers fund.

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     The act would also provide that payments from the uninsured employers fund would

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apply to injuries occurring on or after January 1, 2013.

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     This act would take effect upon passage and would apply retroactively to all claims

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regardless of the date of injury.

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LC00854/SUB A

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