2017 -- H 5242

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LC000115

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

____________

A N   A C T

RELATING TO HUMAN SERVICES-- AUTOMOBILE ACCIDENT SOCIAL PROTECTION

ACT

     Introduced By: Representatives Perez, Williams, Fogarty, Slater, and Winfield

     Date Introduced: January 26, 2017

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby

amended by adding thereto the following chapter:

CHAPTER 23

AUTOMOBILE ACCIDENT SOCIAL PROTECTION ACT

     40-23-1. Short title.

     This chapter shall be known as the "Automobile Accident Social Protection Act".

     40-23-2. Definitions.

     As used in this chapter, the following terms shall have the meaning expressed below:

     (1) "AACA" means the Automobile Accident Compensation Administration.

     (2) "Board" means the board of directors of the automobile accident compensation

division of human services.

     (3) "Children" means children, stepchildren, children by adoption and foster children, it

being understood by the latter those individuals who without being children, stepchildren or

children by adoption, have been fostered by other persons as if they were their own children,

during a term of not less than three (3) years, or during two-thirds (2/3) of the life of such

persons, whichever of the two (2) terms is the shorter, immediately and consecutively preceding

the date of the accident which originates a claim under the provisions of this chapter.

     (4) "Department of human services" means the automobile accident compensation

division of the department of human services.

     (5) "Dependency" means whenever it is required that a person be dependent on another,

such dependency shall be economic, real and direct, of a substantial nature and not merely

financial assistance, by which a person depends on the financial contributions of another for

sustenance.

     (6) "Disability" means a disability of such a nature as to prevent the victim from

engaging fully and continuously in any employment or occupation for which the person is

capable by education, experience and training.

     (7) "Employer" means any private person or entity that employs one or more workers or

employees to render any service. The government of the state, the various municipal

governments, boards, commissions, authorities, instrumentalities, public corporations and

agencies of the state shall also be deemed as employers with regard to the workers, employees

and officials they hire.

     (8) "Employment" means any service which the victim was performing in exchange for a

salary, commission or any other kind of remuneration, at the time the disability occurred.

Services rendered by a person shall be deemed as employment under of this chapter, regardless of

whether there is an employer-employee relationship, unless and until the existence of the

following conditions is demonstrated:

     (i) The employer does not exert, nor can exert, any command or supervision over the

person;

     (ii) The person renders the service beyond the employer's normal course, or place of

business;

     (iii) The person renders the service as part of the normal activity of the person's work,

business or profession, which service is available to other people and does not cease when the

contractual relationship with the employer ceases.

     (8) "Executive director" means the executive director of the automobile accident

compensation division of the department of human services.

     (9) "Maintenance" means any type of essential, sudden or unexpected repairs or servicing

required by a motor vehicle to start or continue to operate legally and safely on the public

highways. It excludes vehicle maintenance done in the home, activities related to motor vehicle

cleaning and enhancements, activities related to the business of bodywork, paint and repair of

motor vehicle parts that are not physically attached thereto.

     (10) "Motor vehicles" means any vehicle, including trailers, designed to operate on public

highways propelled by power other than muscular, which type of vehicle is authorized to travel

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on the public highways by the department of transportation by issuing a motor vehicle license to

it.

     (11) "Parents" means father, mother, parents by adoption or foster parents, it being

understood by the latter those individuals who, without being the father, mother or parents by

adoption of other persons, have fostered these persons as if they were their own children, during a

term of not less than three (3) years, or during two-thirds (2/3) of the life of the person so fostered

and treated as their own child, whichever of the two (2) terms is the shorter, immediately and

consecutively preceding the date of the accident which originates a claim under the provisions of

this chapter.

     (12) "Person not responsible for the accident" means any person who does not cause a

traffic accident, but who, at the time the accident occurs, is among the non-coverage exclusions in

this chapter. In these cases, the department of human services shall recover what it disbursed on

such person.

     (13) "Person responsible for the accident" means any person who causes an accident

while driving a motor vehicle recklessly or negligently.

     (14) "Use of the motor vehicle as such" means the use of a motor vehicle for the purpose

of a person transporting the person or others to a different place or to carry, push or tow animals,

plants or objects. It does not include uses of the vehicle incidental to the purpose mentioned

above, nor fortuitous events that do not occur during, or as a direct result of, such use at that

moment or reasonably soon afterwards. It includes loading or unloading the vehicle.

     (15) "Victim" means a natural person who suffers bodily injuries or sickness or death as a

result thereof, as a consequence of the maintenance or use by the natural person or by another

person of a motor vehicle as such vehicle.

     (16) "Wife or husband" means the legal spouse or the woman or man who at the time of

the death of the victim and during the three (3) years immediately preceding the injury live

together with the victim as husband and wife even though not married.

     40-23-3. Applicability and benefits.

     Every natural person who suffers bodily injury, sickness or death as a result thereof, as a

consequence of the maintenance or use by the person or by another person of a motor vehicle as

such shall be entitled to the benefits provided in this chapter. Said person shall hereinafter be

known as "the victim".

     40-23-4. Beneficiaries.

     The following persons shall be deemed as beneficiaries of the victim with the rights and

limitations established hereinbelow:

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     (1) The children of the victim under eighteen (18) years of age on the date of the

accident.

     (2) The children of the victim between the ages of eighteen (18) and twenty-one (21) who

depended on the victim and were students at the moment of the accident.

     (3) The husband or wife of the victim who depends thereon for support.

     (4) The parents of the victim when they depended thereon for their support because they

were unable to provide for themselves and have no other means of support.

     (5) Any person who depends on the victim and is unable to be independent and without

help therefrom.

     40-23-5. Benefits. General.

     (a) Benefits. The benefits provided herein include disability payments, medical hospital

services, dismemberment, death and funeral expenses.

     (b) Payable benefits and available services. The payable benefits shall be as hereinbelow

stipulated, after deducting therefrom any other benefits from other insurance programs to which

the victim or the victim's beneficiaries are eligible and which deduction is provided for hereunder.

     (c) If the victim receives from the department of human services services to which the

victim is eligible under other insurance programs and for which deduction is herein provided, and

said deduction is not made in the cases where it applies, the amount of the corresponding

deduction shall be deducted from the benefits to which the victim is entitled in accordance with

said programs and shall be paid by the agency in charge of the department of human services of

said programs directly to the department of human services, up to the limit of the coverage of the

insurance programs.

     (d) If a victim eligible to weekly compensation benefits for bodily injuries received from

the state insurance fund, by reason of the same automobile accident, benefit payments for

transitory disability, and the manager of the fund decides that the injury of the victim is one of a

non-occupational nature, said payments shall be deducted from the weekly compensation benefits

to which the victim is entitled under this chapter. This deduction shall never be made for an

amount exceeding the weekly compensation benefits to which the victim is entitled. The amount

so deducted shall be reimbursed by the department of human services to the state insurance fund,

upon previous presentation by the manager of the fund of a certified voucher showing liquidation

of the payments made to the victim.

     (e) The claiming and obtaining of benefits by a claimant under the provisions of this

chapter through false information or statements shall be guilty of the crime of perjury.

     (f) If the victim receives payments from other sources for medical-surgical and

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hospitalization services rendered as provided in this chapter, the department of human services

may recover from the victim's beneficiaries up to a sum equal to the value of the services

rendered.

     (g) Deductible benefits. All benefits or advantages that the victim or the victims

beneficiaries may receive or may be entitled to receive from other sources on account of the

injuries suffered shall be deducted from the benefits corresponding to the victim under this

chapter, except when otherwise provided herein. Whenever the victim uses the services provided

by this chapter, the payments that the victim or the victims beneficiaries may receive or may be

entitled to receive from other insurance programs by reason of said services shall be paid to the

department of human services, up to a sum not to exceed the amount expended by the department

of human services to render said service.

     (h) Nondeductible benefits. The following benefits shall be considered nondeductible

benefits and shall not diminish the amount to be collected or received from the department of

human services, nor shall they be payable to the department of human services in case the

services herein provided are used:

     (1) Benefits by reason of the obligation of the family support;

     (2) Inheritance estates;

     (3) Life insurance;

     (4) Gifts;

     (5) Social security benefits. Payments made by the employer to employees shall not be

considered as gifts.

     (i) The death benefit provided in §40-23-7 shall be paid provided the victim dies as a

result of the injuries suffered within one year after the date of the accident.

     (j) If the injuries suffered in an accident caused the losses set forth in this chapter within

fifty-two (52) weeks after the date of the accident, the department of human services shall pay the

sum provided for such losses.

     (k) The board of directors of the department of human services, with the approval of the

commissioner of insurance of Rhode Island, shall increase the benefits provided by this chapter,

including payments for disability, medical-hospital services, dismemberment, death and funeral

expenses benefits. The office of commissioner of insurance shall have sixty (60) days to

determine the source or denial of the increase proposed by the board of directors of AACA. If the

sixty (60) days elapse without any statement from the office of commissioner of insurance, it

shall be understood that there is no objection to the proposed benefits increase and they shall take

effect immediately and/or on the date provided in the determination of increase made by the

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board of directors of AACA.

     (l) Benefits for dismemberment. The following benefits for dismemberment shall be paid

by the department of human services in the event the indicated disabilities occur:

     (1) Loss of sight of both (2) eyes $ 10,000;

     (2) Loss of both (2) feet at or above the ankle 10,000;

     (3) Loss of both (2) arms at or above the wrist 10,000;

     (4) Loss of one (1) arm and one (1) leg 10,000;

     (5) Loss of one (1) arm at or above the wrist 7,500;

     (6) Loss of one (1) leg at or above the ankle 7,500;

     (7) Loss of one (1) hand or one (1) foot 5,000;

     (8) Total loss of sight of one (1) eye 5,000;

     (9) Loss of at least three (3) fingers or three (3) toes 2,500; and

     (10) In case a person suffers more than one of the losses indicated above, the maximum

amount for all the losses shall be ten thousand ($10,000).

     (m) Compensation for loss of income due to disability; reinstatement.

     40-23-6. Compensation for loss of income due to disability - reinstatement.

     (a) Compensation:

     (1) If within the twenty (20) days following the date of the accident the injuries received

disable a victim other than a housewife, the department of human services shall pay to the victim

a benefit for loss of income by disability. The benefit shall be equivalent to fifty percent (50%) of

the weekly income not received by the victim, subject to a maximum of one hundred dollars

($100) weekly while the victim is disabled, during the first fifty-two (52) weeks reckoning from

the date of the accident, and to fifty percent (50%) of the weekly income not received by the

victim, subject to a maximum of one hundred dollars ($100) weekly while the victim is disabled,

during the subsequent fifty-two (52) weeks.

     (2) To avail oneself of the benefit of weekly compensation it shall be required that at the

time of the accident or during any six (6) of the twelve (12) months preceding same the victim

was holding a remunerated job or performing an activity or engaged in a profession or in an

income-yielding business of the victim.

     (3) The regular disability benefit provided by this subsection shall not be paid during the

first fifteen (15) days following the date the disability begins.

     (b) For the purposes of computing the compensation contemplated in this chapter, there

shall be understood that the week consists of five (5) working days and the workday of eight (8)

hours; except that from the facts investigated it is deduced that the victim worked regularly more

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than forty (40) hours a week.

     (c)(1) The loss of income shall be determined by taking as a basis the income earned by

the victim at the time of the accident. If the victim had then no income, the loss of income shall

be computed on the basis of the equivalent of the average weekly income earned by the victim

during the last six (6) of the last twelve (12) months immediately preceding the accident, when

the victim was holding a remunerated job or performed an activity or engaged in a profession or

in an income-yielding business of the victim.

     (ii) The department of human services shall by regulation ad hoc establish the criteria that

may facilitate the determination of loss of income of the victims.

     (iii) When the disabled victim is a housewife (man) the department of human services

shall pay the victim a benefit of twenty-five dollars ($25.00) a week subject to a maximum of

sixteen (16) weeks.

     (2) The loss of income requirement to be entitled to collect weekly compensation for total

and continuous disability shall be deemed as established even though the claimant continues to

receive regular salary payments for accumulated vacation leave, it being understood that in such a

case there is a real loss of income. However, there shall be no loss of income when one continues

to receive regular salary for accumulated sick leave; in that case, the loss of income shall be

established solely if the victim would have been entitled to liquidate sick leave accumulated and

not used, in cash, some time within the term of one year from the date of the accident, in which

case all the time that the victim is absent from work due to injuries suffered in the accident shall

be counted as accumulated and then the loss of income shall be determined in accordance with

what was actually earned or not earned.

     (d) Reinstatement. In the cases of disability covered by this chapter, when the injured

person is employed, the employer shall reserve the job the worker was doing when the disability

commenced and to reinstate the worker in it, subject to the following conditions:

     (1) That the worker requires the employer to reinstate the worker in said job within the

term of fifteen (15) days, counting from the date the worker is discharged from treatment,

provided said requirement is not made after six (6) months have passed from the date of inception

of the disability;

     (2) That the worker is mentally and physically able to fill said job when the worker asks

the employer for reinstatement; and

     (3) That said job exists when the worker requests reinstatement. It shall be understood

that the job exists when it is vacant or filled by another worker. It shall be presumed that the job

was vacant when it was filled by another worker within thirty (30) days following the date the

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reinstatement was requested. If the employer does not comply with the provisions of this clause,

the worker shall be bound to pay the worker or beneficiaries the wages said worker would have

earned if reinstated. The worker shall also be liable for any damages caused. The worker or the

worker's beneficiaries shall file and process the corresponding claim for reinstatement and/or

damages in superior court.

     40-23-7. Death benefits.

     (a) A death benefit of one thousand dollars ($1,000) shall be paid for funeral expenses.

This benefit may be paid, up to the sum of the expenses incurred, to any person who produces

acceptable evidence to the department of human services of having incurred the funeral expenses

of the victim. Any remaining balance shall be paid to the beneficiaries of the victim.

     (b) There shall also be paid the following death benefits, subject to the conditions herein

below indicated:

     (1) Ten thousand dollars ($10,000) to the primary dependent;

     (2) One Thousand dollars ($1,000) to each secondary dependent up to a maximum of five

thousand dollars ($5,000).

     (3) The following benefits to the children of the victim:

     (i) Five thousand dollars ($5,000) for each disabled child regardless of their age;

     (ii) Five thousand dollars ($5,000) for each child four (4) years of age or under;

     (iii) Four thousand dollars ($4,000) for each child over four (4) years, but under ten (10)

years;

     (iv) Three thousand dollars ($3,000) for each child ten (10) years or more but under

fifteen (15) years;

     (v) Two thousand dollars ($2,000) for each child fifteen (15) years of age or over, but

under eighteen (18) years; those children between the ages of eighteen (18) and twenty-one (21)

years who depended on the victim and were students at the time of the accident shall also be

entitled to this benefit. If the benefit for the children, computed according to the preceding

formula, exceeds ten thousand dollars ($10,000), each one's benefit shall be adjusted by

multiplying ten thousand dollars ($10,000) by the ratio there is between the benefit corresponding

to each child according to the above scale and the sum total of the benefits corresponding to all

the children, according to that scale. If the children also qualify as primary dependents, the

benefit corresponding to each one shall be determined by multiplying ten thousand dollars

($10,000) by the ratio there is between the benefit corresponding to each child as such, and the

sum total of the benefits corresponding to all the children as such, according to the provisions of

this section.

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     (c) For the purposes of the death benefit, there shall be considered as primary dependents:

     (1) The wife of the victim, or in lieu thereof;

     (2) The husband of the victim, or in lieu thereof;

     (3) The children of the victim, or in lieu thereof; and

     (4) The parents of the victim.

     (d) For purposes of the death benefit, there shall be considered as secondary dependent:

     (1) The parents of the victim when they do not qualify as primary dependent, or in lieu

thereof; and

     (2) Other dependents.

     40-23-8. Medical-hospital benefits.

     (a) The victim shall be entitled to receive the medical, hospitalization, convalescence

home, and rehabilitation services and medicines that may be reasonably required by the victim's

condition during the two (2) year term following the accident, which may be available within the

jurisdiction of the state of Rhode Island. In the case of paraplegics and quadriplegics, and in cases

of severe trauma and/or multiple fractures with complications of such a nature as to require

prolonged medical treatment, said services may be given for a term longer than two (2) years as

provided by the board through regulations. In connection with the above, "severe trauma" means

injuries whose treatment and rehabilitation require a term longer than two (2) years, in the

judgment of a medical evaluation committee created by the department of human services.

     (b) The department of human services shall provide said services under contract with

physicians and facilities, or directly according to the limits, criteria, and methods of providing

services which it establishes through regulations to such effects. If the victim receives emergency

treatment in a hospital or other types of facilities which do not have service contracts with the

department of human services, or if the latter authorizes the victim to use such facilities, they

shall provide the services and the department of human services shall pay them for the cost of the

services rendered based on an average of the rates used by the department of human services at

present to pay for similar services to hospitals, physicians, laboratories and other entities which

provide health services under contract in the area they are located. In the event the victim has paid

for such services, the victim's would be entitled to claim from the department of human services

the cost of such services on the basis of the above-stated average. The invoices for claims for

health services rendered shall be filed no later than one hundred twenty (120) days as of the date

on which the services were rendered. All claims with respect to the return of invoices or

payments made by the department of human services for health services invoices shall be filed

within forty-five (45) days as of the date of the payment. When the last day to file invoices for

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claims on time is Saturday, Sunday, or a non-working holiday for the department of human

services, said invoices shall be considered as filed on time, as long as they are filed on the next

working day. The department of human services shall not pay invoices received after the deadline

for their filing. All terms and conditions established in this clause are of a jurisdictional nature

and noncompliance therewith bars the department of human services or the court with authority

from considering such matters.

     40-23-9. Benefits: Payment.

     (a) The department of human services shall, by regulation, establish the standards that

will govern the payment of all benefits provided in this chapter, both to victims of accidents and

to their beneficiaries; provided, that:

     (1) When the payment of a benefit for dismemberment is in order, same shall be

liquidated systematically so that the benefits that the victim may receive from the department of

human services do not exceed the equivalent of fifty dollars ($50.00) weekly.

     (2) The death benefits shall be paid at the rate of the equivalent of fifty dollars ($50.00)

weekly for family unit. The department of human services shall determine by regulation what is a

family unit and how the benefit shall be paid when the latter does not exist.

     (3) The department of human services may authorize payments of more than the

equivalent of fifty dollars ($50.00) weekly or the liquidation of the benefit in one single sum,

when it is shown that it will redound in benefit of the victim or the victim's beneficiaries.

     (4) If the amount of the benefit one is entitled to is greater than two thousand dollars

($2,000), the department of human services may require the victim or the victim's beneficiaries to

use said benefit or any part thereof for the purchase of a farm or house, or to acquire a productive

business or to make any other profitable investment.

     (b) The benefits payable under this chapter may not be assigned, sold or transferred and

any contract to such effect shall be void. Benefits may not be seized or confiscated, nor shall the

victim or the victim's beneficiaries be deprived, through a lawsuit, of the possession of same.

     (c) The following persons shall not be entitled to collect the benefits provided by this

chapter for the victim of the accident, but the victim's beneficiaries shall be entitled to the benefits

corresponding to them as such:

     (1) Those whose injuries were caused by an act or omission on their part performed for

the purpose of causing damage to their own person.

     (2) Those who at the time of the accident were driving a motor vehicle without a driver's

license in effect at the time and for the operation of that particular motor vehicle, or whose

vehicle has no valid motor vehicle license and license plate on that date. To the effects of this

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clause, a learner's permit is not sufficient authorization to operate a motorcycle or moped.

     (3) Those who at the time of the accident were participating in automobile races or in

speed tests, either as drivers, passengers, spectators or as officials or employees in areas reserved

for such activities.

     (4) Those whose injuries occurred while committing a criminal act other than a violation

to the traffic laws.

     (5) Those who at the time of the accident were driving their automobile in a state of

drunkenness or under the effect of drugs.

     (d) The benefits provided by this chapter may not be used for the payment of fees for

legal services rendered to the victim by virtue of an application for benefits or of a lawsuit filed

under this chapter, except in the manner the department of human services may be regulation

provide.

     (5) The benefits of this chapter shall only be paid for injuries which have occurred in

Rhode Island and the medical and hospital services shall only be rendered in the state of Rhode

Island.

     40-23-10. Rights of the department of human services to indemnity.

     (a)(1) The department of human services shall be entitled to be indemnified by the person

responsible for the accident for all the expenses incurred by the department of human services in

connection to said accident, if the damages were caused intentionally or under the effects of

alcohol or narcotic drugs, or while driving an automobile without a legal permit to do so, or while

committing a criminal act other than a violation of the traffic laws, or while participating in

automobile races or speed tests.

     (2) The department of human services shall be entitled to be indemnified by the person

who is not responsible for the accident for all expenses incurred by the department of human

services with respect to said person.

     (b) When the victim in the cases provided herein files a legal action against the driver

involved in the accident and the court grants said victim an indemnification under the principle of

liability on the grounds of negligence, the defendant shall inquire, before payment of the

judgment, if the department of human services is entitled to be reimbursed for any or all of the

benefits paid by the latter to the victim. If the department of human services is entitled to such

reimbursement, the payment shall be issued separately in favor of the department of human

services and of the claimant victim for the respective amount corresponding to them. In such

cases, if the defendant pays the judgment without considering the interests of the department of

human services, and if the latter is unable to recover the corresponding sum from the victim, the

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department of human services shall be entitled to be indemnified by the defendant or the plaintiff

for the loss thus suffered.

     (1) The department of human services shall be entitled to resort to the competent court of

first instance in any case seeking indemnification before the courts, based on the application of

the principle of liability on the grounds of negligence, for damages or injuries for which benefits

were provided pursuant to this chapter. The victim or the victim's legal heirs shall be required by

the corresponding court, so that prior to the continuation of the proceedings of the case, the

plaintiff to notify the department of human services with a copy of the claim filed, which shall

include in its caption or in one of its allegations, the number of the case of their claim in the

department of human services. Non-compliance with the provisions in this section shall be

sufficient cause for the corresponding legal action of the case to be dismissed without prejudice,

before the court grants a discretional term for compliance with these provisions, which shall

never be of less than thirty (30) days.

     (2) The department of human services shall be entitled to be indemnified, for the

expenses incurred, by the owner of the motor vehicle according to the corresponding registration

in the department of transportation, who shall be severally liable therefor before the department

of human services, unless the victim is able to prove that the vehicle was stolen.

     (3) In every circumstance under this section in which the department of human services is

entitled to indemnification, it shall exercise the corresponding action within fifteen (15) years

from the date of the accident. The filing of a claim before the court, the authentic extrajudicial

claim, or any act of recognition of a debt by the debtor shall interrupt the term of prescription. In

every case where the fifteen (15) year prescriptive term applies, once the term has elapsed and the

reasonable collections pursuant to the regulation it is hereby authorized to approve, the

department of human services shall proceed to remove the account off its books, having

accredited the collections made.

     (4) In all cases whereby the department of human services is notified of an action under

this chapter, it shall appear in court to exercise its rights. Should the department of human

services fail to appear in court within a term of one year, its cause of action shall be understood to

have been abandoned with prejudice, and the court shall pass judgment to that effect.

     (c) In all cases in which there is a right to recover, pursuant to the preceding subsection, a

lien shall be created over the motor vehicle and over the driver's license of the person liable to

indemnify the department of human services. The department of human services shall file an

application for a notation of lien for money it is owed at the department of transportation. Said

notation shall constitute an actual lien over said motor vehicle and a prohibition against the

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transfer of said motor vehicle or the issuing or renewal of any type of motor vehicle license

and/or driver's license until the lien is paid, nullified or until an agreement to pay is reached with

the department of human services. The department of human services, shall establish the

procedure for the agreements to pay through regulations. Notwithstanding the provisions of the

previous subsection, the title of the motor vehicle with an annotation of lien may be transferred if

the lien is imposed after the date in which the motor vehicle changes owner; in other words, the

date of the formalized transfer on the back of the registration of the motor vehicle or trailer or by

attesting document. The secretary of the department of transportation shall notify the imposition

of the lien in the same manner it is done with respect to administrative fines and the victim shall

keep a register of liens. If the owner of the vehicle and/or driver's license holder affected by the

notation of administrative lien considers that the ACAA is not entitled to recover against the

victim or that the amount imposed for recovery is incorrect, the victim may request an

administrative review at the regional office of the ACAA corresponding to the victim domicile,

by filing a request for a review within thirty (30) days after being notified of the administrative

lien. The department of human services shall provide the procedure for the administrative review

before the ACAA through regulation. The decision from the administrative review shall be

reviewable by the court of first instance, using the procedure provided in the vehicles and traffic

act of Rhode Island for the review of administrative fines. The liens may be paid at the locations

and in the manner stated hereinbelow:

     (1) At the department of transportation, taken in person or through an agent, in cash,

check or certified check, or money order, or a certified check or money order sent by mail,

payable to the automobile accident compensation division of the department of human services.

(2) At the regional offices or at the central office of the automobile accident compensation

division of the department of human services. Taken in person or through an agent in cash, or

certified check or money order payable to the automobile accident compensation division of the

department of human services. Should the payment of the lien be made in the offices of the

automobile accident compensation division of the department of human services, the latter shall

remit to the department of transportation an authorization to cancel the lien and it shall notify the

interested party in writing. The secretary of the department of transportation, the general

treasurer, and the automobile accident compensation division of the department of human

services are hereby authorized to establish by regulations those other provisions that are

necessary to implement the liens' system established herein.

     40-23-11. Claims.

     (a) Every accident which gives rise to a claim for benefits under this chapter shall be

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notified to the police and to the department of human services.

     (b) Every person entitled to claim a benefit under this chapter shall file a person's claim

with the department of human services, except in case of death benefits, within the fifteen (15)

days following the date of the accident.

     (c) The persons entitled to death benefits shall file their claim within one hundred twenty

(120) days after the death of the victim, but in all cases the accident must have been notified to

the department of human services within the fifteen (15) days following the date of its

occurrence.

     (d) Every person entitled to claim a benefit under this chapter shall submit to the

department of human services within the sixty (60) days following the date of the claim, all the

evidence that it may be reasonably possible to obtain in connection with the circumstances of the

accident and the loss suffered and any other data or evidence, including information on plans,

contracts or policies covering or that may cover the benefits provided by this chapter, as well as

any other additional evidence that may be required of the person.

     (e) Noncompliance with the provisions of the preceding subsections may be sufficient

cause for the department of human services to deny the benefits provided by this chapter, unless

the claimant shows to the satisfaction of the department of human services that it was impossible

for the person to comply with the provisions hereof and that the person did it as soon as the

circumstances allowed.

     40-23-12. Tort and related items.

     (a) The benefits provided by this chapter for injuries sustained as a result of automobile

accidents which occurred in the state of Rhode Island shall be paid, up to the limits indicated in

this section, in substitution of the sums that the victim, the victim's survivors or any other person

would otherwise be entitled to claim by reason of the accident under the principle of liability on

the basis of tort, relieving the responsible party from the payment of all claims up to said limits or

up to the amount of the benefits collected by the victim and the victim's beneficiaries, whichever

is greater.

     (b) Any person responsible, through a negligent act on the victim's part, for damages or

injuries for which benefits are provided herein, shall be exempted from application of the

principle of liability on the basis of negligence. Said exemption shall be limited to:

     (1) The amount of one thousand dollars ($1,000) for physical and mental sufferings

including pain, humiliation and similar damages; and

     (2) The sum of two thousand dollars ($2,000) by reason of other damages or losses not

included in subsection (b)(1) of this section.

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     (c) Any person whom a court declares in a civil action responsible for having caused

through negligence injuries for which the victim, the victim's survivors or any other person are

entitled to receive benefits or medical-surgical and hospital services under this chapter, shall be

entitled to a reduction in the sentence to be imposed by the court up to the amount indicated in

this section.

     (1) In each case in which this section applies the court must separately indicate the

amount of indemnity granted for damages due to pain and physical and mental sufferings and the

amount of indemnity granted for other losses.

     (2) The deduction applicable to damages for physical and mental sufferings shall be one

thousand dollars ($1,000).

     (3) The deduction applicable to damages and losses for causes other than physical and

mental sufferings shall be the sum of two thousand dollars ($2,000) or the amount of the total

benefits paid by the department of human services, if said amount is greater than two thousand

dollars ($2,000).

     (4) The indemnity that a court may grant to the survivors of the victim, even when it be

only by reason of moral damages sustained by them on account of the death of said victim, shall

be reduced by a sum equal to the amount of the benefits that the victim and the victim's

beneficiaries have received from the department of human services.

     (5) If the liability for the damages caused lie upon two (2) or more persons, the

deductions provided in this section shall be deducted only once. Same shall be deducted from the

total judgment to be paid by all the parties. The court shall determine the amount of the deduction

which shall apply to each one of said parties.

     (6) The provisions of this section shall be applicable to the judgments rendered in claim

actions brought in connection with accidents which have occurred on and from July 1, 2017.

     40-23-13. Examination, treatment and rehabilitation of injuries; Finding of fact.

     (a) Whenever the physical and mental condition of a person be of importance to a claim

filed or to be filed for payment of past or future benefits, the department of human services may

direct said person to submit to the medical examinations as may be necessary.

     (b) If the person refuses to be submitted to said medical examination or to comply with

any order given by the department of human services in accordance with this section, the

department of human services shall not make any payment whatsoever to said person or to the

person's beneficiaries.

     (c) The department of human services may direct any victim to submit to the

rehabilitation treatment or training that may be reasonable and justified. Refusal to comply with

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these orders may entail the loss of the benefits provided under this chapter.

     (d) Every employer shall be under obligation to allow the examining and copying of and

to furnish to the department of human services, at its request, payrolls, work records and sworn

statements showing the salaries earned by the victim subsequent to the date of the injuries and

during a period of one year prior to the date of the accident.

     (e) Every physician, hospital, clinic or institution of medical services which provides any

services related with an injury for which benefits or services are claimed under this chapter or

which has previously attended the victim in connection with any former injury or condition which

may be connected in any way with the injury for which the claim is made, shall furnish, upon

request of the department of human services, all the information available from records or

memory, including a written report on the history, condition, treatment, dates and costs of the

treatment and other services rendered to the injured person, and shall produce and permit the

inspection of all the records related with said medical history, the condition, treatment, and the

dates and cost thereof, and any other information deemed necessary.

     (f) Every physician-employer, hospital, clinic or any person or institution that furnishes

information requested under the terms of this section, may be reimbursed the cost of furnishing

such information, in accordance with the rates that the department of human services may

establish to that effect.

     (g) The information obtained by the department of human services or by its duly

authorized employees during the course of the investigations performed in the exercise of the

powers granted in this chapter shall be privileged and confidential in nature and may only be

divulged with the authorization of the executive director or that of a court of competent

jurisdiction when the physical condition or the medical treatment of the victim who has filed a

claim against the department of human services is a controversial fact in a judicial proceeding. In

the latter case, the court's authorization shall be deemed to extend only to information related to

the claimant's physical condition or treatment.

     40-23-14. Proceedings to facilitate the investigation and award claims.

     (a) When there is required the appearance of persons, their testimony or the production of

any document or evidence pertinent to any proceeding or investigation under this chapter, the

following provisions shall govern:

     (1) Every summons, requirement or certification issued by the executive director or

authorized representative, or by the board or any of its members, or by the secretary, shall bear

the seal of the department of human services or of the board, as the case may be, and may be

served at any place in the state.

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     (2) When a person summoned or required in accordance with the present provisions fails

to appear to testify or fails to produce or to permit the copying of the books, registries, payrolls,

records or documents, as required, or when any person thus summoned refuses to answer any

question in connection with any matter or investigation under consideration of the department of

human services, the latter may request the assistance of the court of first instance of Rhode Island

to compel the appearance and the testimony of such person and the production and delivery of the

books, registries, payrolls, records or documents requested on the matter under consideration.

     (3) Once the petition is filed with the court of first instance, said court shall issue a

summons requiring and ordering the person to appear and depose or to produce the evidence

requested, or both. Disobedience of the order issued by the court shall be punished as contempt

and the payment of costs and lawyer's fees shall be imposed on the guilty person.

     (b) Any person, except government employees, summoned and appearing before the

board or the department of human services as witness shall receive for each day of appearance a

sum equal to that received by witnesses appearing before the courts of justice.

     40-23-15. The automobile accident compensation department of human services.

     (a) There is hereby created, to carry out the purposes of this chapter, a corporation as a

government instrumentality of the government of the state of Rhode Island to act by its own

authority, under the name of the automobile accident compensation division of the department of

human services.

     (b) The corporate powers of the department of human services shall be exercised by a

board of directors which shall also be responsible for the department of human services of same

and of seeing to the enforcement of the provisions of this chapter. The board shall be composed

of four (4) members appointed by the governor with the advice and consent of the senate. At least

two (2) of the four (4) members shall represent the public interest and one shall be a person

conversant with the insurance business. The first appointments shall be made for a term of two

(2) years in the case of the representatives of the public interest and of one year in the case of the

other two (2) members and until their successors are appointed and qualify. All subsequent

appointments shall be for a term of three (3) years. Three (3) members of the board shall

constitute a quorum. Vacancies of the board shall be filled by appointments made for the

unexpired term for which the member causing the vacancy was appointed. The governor may

remove any member of the board for incompetency in the discharge of duties or for any other

good cause, upon charges brought against the member and after giving the member an

opportunity to be heard. The board shall elect one of its members to act as chairperson and

another to act as secretary. Members of the board shall receive the per diems the board

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determines by regulations for their services, and the department of human services shall

reimburse any necessary expenses incurred to discharge their functions. Those members of the

board who are officials of the government of the state of Rhode Island shall receive no

compensation for their services. The chairperson of the board may receive an additional fee to be

fixed by the board, which shall not exceed an amount equal to fifty percent (50%) of the per diem

received by members of the board. The board shall appoint an executive director who shall be

responsible for the direction of the department of human services of the corporation in accordance

with the standards and conditions that the board may establish.

     (c) The board shall adopt rules for its organization and internal operation and shall

approve and shall cause the promulgation of the necessary regulations to enforce the provisions of

this chapter pursuant to the administrative procedures act including the proceedings for the

payment of premiums and for the payment of claims. In addition to the duties arising from this

chapter, the board shall have the following faculties and obligations:

     (1) Hold, at least four (4) times a year, regular meetings and those special sessions as may

be deemed necessary. The board shall keep full minutes of all its proceedings;

     (2) Consider and take resolutions on matters referred by the executive director;

     (3) Approve the investment of the resources of the department of human services that the

executive director may propose;

     (4) May investigate and shall decide on appeal, at the request of a party, controversies

arising between claimants of the department of human services and the executive director, and

     (5) As soon as possible after each fiscal year, but not later than the first of November of

each year, revise, approve and direct that it be transmitted to the governor and to the general

assembly an annual report containing, among other things, a balance sheet of the economic

conditions; a statement of the receipts and expenditures for the year; detailed statements on the

claims experience of the department of human services for the year, a report on titles of property

investment of the department of human services; and other statistics and financial data that may

be considered necessary for an adequate interpretation of the situation of the department of

human services and of the results of its operations.

     40-23-16. Proceedings of claim awards appeals.

     (a) The executive director shall investigate and decide the claims filed against the

department of human services using such proceedings as the director may deem convenient, as

long as the rights of the parties are guaranteed. In the event that a claimant disagrees with the

executive director's decision, the claimant may request its reconsideration within thirty (30) days

from the date of notice thereof the determination is served or from the date of the postmark if the

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claimant presents it, whichever is later. The claimant may be represented by counsel in this phase

and give testimony and present the evidence the claimant deems convenient. If the claimant

disagrees with the result of the reconsideration, the claimant may request a public hearing before

the executive director or an examiner designated by the claimant within thirty (30) days from the

date the determination is served or the date of the postmark if the claimant presents it, whichever

is later. At this public hearing the claimant cannot submit any evidence to the consideration of the

executive director which the executive director did not have when making the determination,

unless the impossibility of obtaining it previously is shown to the satisfaction of the executive

director. The claimant may appear in person or represented by counsel and a record shall be kept

of the proceedings and of all the testimony given at the hearing, but the testimony need not be

transcribed unless a subsequent appeal is made. In the event that more than one claim is presented

in connection with the same victim and the evidence submitted is the same or substantially the

same in nature, only one record shall be kept of the proceedings and such evidence as may be

produced with respect to one proceeding may be deemed to be produced with respect to the

others, provided none of the claimant is harmed thereby. The rules of evidence that prevail in a

court of justice shall not be mandatory in any proceeding before the executive director. After the

hearing is held, the executive director shall make determinations and conclusions and shall

furnish to each party a copy of a decision and of the findings and conclusions on which it is

based. This decision shall be final unless an appeal is filed before the board.

     (b) The appeal shall be executed by filing a writ of appeal before the secretary of the

board within the thirty (30) days following the date the decision of the executive director is

served or of the date of the postmark if presented, whichever is later. The claimant shall be

entitled to appear in the claimant's own right or assisted by counsel. The executive director shall

cause a certified copy of the record of the case and the transcription of the oral evidence to be

transmitted to the board. The parties may stipulate that the record be limited to a part of the

proceedings or the transcription of the oral evidence. The board shall decide on the basis of the

record before it and of any brief the parties may wish to present. It may, at its discretion, grant

oral hearings to hear the arguments of the parties before deciding. Its decision may be to sustain,

modify or revoke the decision of the executive director, or it may return the case to the latter, with

the pertinent instructions, including an order to consider additional evidence. In cases in which

the board holds oral hearings, these may be presided by a single member of the board designated

by its chairman or by one or more examiners designated by it. The board and each one of its

members, the examiners and the executive director shall be empowered to administer oaths.

     (c) The decision of the board shall be final unless the claimant or the executive director

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requests its judicial review by filing a petition to that effect with the circuit court of appeals

within thirty (30) days after the parties and their respective counsel have been notified of the

decision of the board by mail or in person. The jurisdiction of the court of first instance shall be

limited to issues of law, and the findings of facts, if sustained by substantial evidence, shall be

final.

     (d) All the terms established in this section are of a jurisdictional nature and their

noncompliance deprives the department of human services or the court of authority to deal with

the petition filed. For the department of human services's effects the date of filing of a petition for

reconsideration, for a public hearing before the executive director or for an appeal before the

board of directors shall be the date it is received in the department of human services, when filed

personally, or that of the postmark when it is sent by mail.

     40-23-17. Other faculties and duties of the executive director.

     (a) The executive director shall direct and supervise all technical and administrative

activity of the department of human services and shall appoint or shall hire with the approval of

the board of directors the administrative and technical personnel necessary to carry out the

functions of the department of human services and to pay for such services the compensation that

the board may determine. The officials and employees of the department of human services shall

be included in the exempt service of the personnel act of the state. The executive director shall

also have the following faculties and obligations:

     (1) To establish an office for the department of human services and to provide everything

necessary for the installation of a complete and adequate system of accounting, registries and

adjustment of claims;

     (2) To adopt the procedures necessary to compile and keep the statistical data that may be

necessary to make periodical analysis of the operation costs of the department of human services

and actuarial studies of its operations;

     (3) To attend all meetings of the board and to execute all the resolutions recommended by

it;

     (4) To certify all the necessary payments which have to be made according to the

provisions of this chapter;

     (5) To remit or deposit in the name of the department of human services and to render

accounts, according to law and with the regulations in force, of all the monies received belonging

to the department of human services;

     (6) To prepare regulations for the approval of the board;

     (7) To make recommendations to the board for the investment of the resources of the

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department of human services;

     (8) To prepare the annual report and to submit it to the board for its revision and

approval;

     (9) Submit to the board any report that it may request; and

     (10) Personally, or through the persons whom may delegate, to administer oaths, require

the appearance of persons and the production of any documents or evidence pertinent to any

procedure or investigation authorized by this chapter.

     40-23-18. Other powers and faculties of the department of human services.

     (a) The department of human services shall have the following powers and functions, in

addition to those established in this chapter:

     (1) It shall have perpetual existence, may sue and be sued, and in any action in which it

may intervene it shall be exempt from the payment of costs, charges and counsel fees; counsel

shall be officially designated.

     (2) Investigate all the phases of the problem of automobile accidents including the phases

of the financial liability and of accident prevention and make the pertinent recommendations to

the governor and to the legislature.

     (3) Contract physicians, hospitals, clinics, laboratories and other suppliers of medical

services to carry out the purposes of this chapter. It may also enter into agreements with the state

insurance fund, established under the workmen's accident compensation act, to use its medical-

hospital facilities and with the department of health for the use of the medical hospital facilities of

the state.

     (4) Fix, annually, with the approval of the insurance commissioner the premium that each

vehicle shall pay at the time of registering same, in accordance with the experience and the

corresponding actuarial study.

     (5) To acquire properties for its corporate purposes by purchase or donation, grant or

bequest; to own and exercise all property rights thereon and to dispose of them in accordance

with the terms and conditions that its board of directors may determine; as well as to borrow

money or use any other facility or type of financing for the acquisition of goods that it deems

necessary in the form and means the board of directors deems convenient.

     (6) Acquire all kinds of properties in partial or full payment of debts previously

contracted with the department of human services, when such acquisition is necessary to diminish

or avoid losses in connection with same, to retain such properties for the time it may deem

convenient, to exercise thereon all property rights and to dispose of same in accordance with the

terms and conditions that its board of directors may determine.

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     (7) Exercise all those incidental powers as may be necessary or convenient for the

purposes of carrying out its businesses or purposes.

     (8) Exercise all those corporate powers compatible with those herein set forth which are

conferred by the laws of Rhode Island to corporations and to exercise all those powers, within

and without Rhode Island in the same extent as would or may be done as a natural person.

     (9) Own an official seal and alter same when it so deems convenient.

     40-23-19. Financing.

     (a) The cost of this insurance shall be distributed among all the motor vehicle owners

through an annual contribution to be paid at the time of registering the vehicle.

     (b) At the time of its registration, every vehicle shall pay the annual premium fixed by the

department of human services with the approval of the insurance commissioner. Said premium

shall be renewed on the same date on which the motor vehicle or trailer's license and plates must

be renewed. Van trailer vehicles engaged in maritime transportation to bring freight to Rhode

Island from abroad, and which enter Rhode Island as transients, may choose to pay a special

premium instead of the above stated annual premium, based on their short stay in Rhode Island,

regardless of whether or not they are registered, or regardless of the type of registry. This special

premium shall be fixed by the board of directors of the department of human services as

previously provided and based on how many times these trailers enter Rhode Island. The payment

mechanism for these special premiums shall be provided through a procedure that shall be

established by the department of human services to such effect.

     (c) At the time of registration every vehicle shall pay an annual premium fixed by the

department of human services with the approval of the insurance commissioner. Said premium

shall be renewed on the same date on which the vehicle's or trailer's license and plates must be

renewed.

     (d) Any receipts not required for the payment of claims and expenses shall be deposited

in a reserve fund which shall be used exclusively for the payment of claims in subsequent years,

in case that the claims incurred in any of the said years exceeds the advance claims upon

determining the type of contribution.

     (e) If in any year the receipts and the reserves accrued are not sufficient to cover the

losses and the expenses incurred, the general treasurer shall provide to the department of human

services from any funds available in the general fund of the government, as an advance, the sums

required to remediate [cover] the deficiency.

     40-23-20. Appropriation.

     The sum of one million dollars ($1,000,000) is hereby appropriated from unencumbered

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funds in the general fund to the department of human services as initial capital to carry out the

purposes of this chapter.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HUMAN SERVICES-- AUTOMOBILE ACCIDENT SOCIAL PROTECTION

ACT

***

     This act would create an accident compensation fund to provide payments and benefits to

those injured by uninsured motorists, to be administered by the department of human services.

     This act would take effect upon passage.

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