2017 -- H 6211

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LC002442

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- INDIVIDUALIZED WORKER

SAVINGS ACCOUNT PROGRAM ACT

     Introduced By: Representative Jared R. Nunes

     Date Introduced: May 11, 2017

     Referred To: House Labor

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 28-39 of the General Laws entitled "Temporary Disability

Insurance - General Provisions" is hereby repealed in its entirety.

CHAPTER 28-39

Temporary Disability Insurance - General Provisions

     28-39-1. Short title.

     Chapters 39 -- 41 of this title shall be known and may be cited as the "Rhode Island

Temporary Disability Insurance Act".

     28-39-2. Definitions.

     The following words and phrases, as used in chapters 39 -- 41 of this title, have the

following meanings unless the context clearly requires otherwise:

     (1) "Average weekly wage" means the amount determined by dividing the individual's

total wages earned for services performed in employment within his or her base period by the

number of that individual's credit weeks within the base period;

     (2) "Base period" with respect to an individual's benefit year when the benefit year begins

on or after October 7, 1990, means the first four (4) of the most recently completed five (5)

calendar quarters immediately preceding the first day of an individual's benefit year; provided,

that for any individual's benefit year when the benefit year begins on or after October 4, 1992,

and for any individual deemed monetarily ineligible for benefits under the "base period" as

defined in this subdivision, the department shall make a re-determination of entitlement based

upon an alternate base period which consists of the last four (4) completed calendar quarters

immediately preceding the first day of the claimant's benefit year. Notwithstanding anything

contained to the contrary in this subdivision, the base period shall not include any calendar

quarter previously used to establish a valid claim for benefits; provided, however, that the "base

period" with respect to members of the United States military service, the Rhode Island National

Guard, or a United States military reserve force, and who served in a United States declared

combat operation during their military service, who file a claim for benefits following their

release from their state or federal active military service and who are deemed to be monetarily

ineligible for benefits under this section, shall mean the first four (4) of the most recently

completed five (5) calendar quarters immediately preceding the first day the individual was called

into that state or federal active military service; provided, that for any individual deemed

monetarily ineligible for benefits under the "base period" as defined in this section, the

department shall make a re-determination of entitlement based upon an alternative base period

which consists of the last four (4) completed calendar quarters immediately preceding the first

day the claimant was called into that state or federal active military service. Notwithstanding any

provision of this section of the general or public laws to the contrary, the base period shall not

include any calendar quarter previously used to establish a valid claim for benefits;

     (3) "Benefit" means the money payable, as provided in chapters 39 -- 41 of this title, to

an individual as compensation for his or her unemployment caused by sickness;

     (4) "Benefit credits" means the total amount of money payable to an individual as

benefits, as provided in § 28-41-7;

     (5) "Benefit rate" means the money payable to an individual as compensation, as

provided in chapters 39 -- 41 of this title, for his or her wage losses with respect to any week

during which his or her unemployment is caused by sickness;

     (6) "Benefit year" with respect to any individual who does not already have a benefit year

in effect, and who files a valid claim for benefits as of November 16, 1958 or any later date,

means fifty-two (52) consecutive calendar weeks, the first of which shall be the week containing

the day as of which he or she first files that valid claim in accordance with regulations adopted as

subsequently prescribed; provided, that for any benefit year beginning on or after October 7,

1990, the benefit year shall be fifty-three (53) consecutive calendar weeks if the subsequent filing

of a new valid claim immediately following the end of a previous benefit year would result in the

overlapping of any quarter of the base period of the prior new claim. In no event shall a new

benefit year begin prior to the Sunday next following the end of the old benefit year;

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     (i) For benefit years that begin on or after July 1, 2012, an individual's benefit year will

begin on the Sunday of the calendar week in which an individual first became unemployed due to

sickness and for which the individual has filed a valid claim for benefits;

     (7) "Board" means the board of review as created under chapter 19 of title 42;

     (8) "Calendar quarter" has the same definition as contained in chapter 42 of this title;

     (9) "Credit week" means any week within an individual's base period in which that

individual earns wages amounting to at least twenty (20) times the minimum hourly wage as

defined in chapter 12 of this title, for performing services in employment for one or more

employers subject to chapters 39 -- 41 of this title;

     (10) "Director" means the director of the department of labor and training;

     (11) "Employee" means any person who is or has been employed by an employer subject

to chapters 39 -- 41 of this title and in employment subject to those chapters;

     (12) "Employer" means any employing unit that is an employer under chapters 42 -- 44

of this title;

     (13) "Employing unit" has the same definition as contained in chapter 42 of this title and

includes any governmental entity that elects to become subject to the provisions of chapters 39 --

41 of this title, in accordance with the provisions of §§ 28-39-3.1 and 28-39-3.2;

     (14) "Employment" has the same definition as contained in chapter 42 of this title;

     (15) "Employment office" has the same definition as contained in chapter 42 of this title;

     (16) "Fund" means the Rhode Island temporary disability insurance fund established by

this chapter;

     (17) "Partial unemployment due to sickness" For weeks beginning on or after January 1,

2006 an individual shall be deemed partially unemployed due to sickness in any week of less than

full-time work if he or she fails to earn in wages for services for that week an amount equal to the

weekly benefit rate for total unemployment due to sickness to which he or she would be entitled

if totally unemployed due to sickness and eligible.

     (i) For the purposes of this subdivision and subdivision (22) of this section, "Wages"

includes only that part of remuneration for any work, which is in excess of one-fifth (1/5) of the

weekly benefit rate for total unemployment, rounded to the next lower multiple of one dollar

($1.00), to which the individual would be entitled if totally unemployed and eligible in any one

week, and "services" includes only that part of any work for which remuneration in excess of

one-fifth (1/5) of the weekly benefit rate for total unemployment, rounded to the next lower

multiple of one dollar ($1.00), to which the individual would be entitled if totally unemployed

and eligible in any one week is payable; provided, that nothing contained in this paragraph shall

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permit any individual to whom remuneration is payable for any work performed in any week in

an amount equal to, or greater than, his or her weekly benefit rate to receive benefits under this

subdivision for that week.

     (18) "Reserve fund" means the temporary disability insurance reserve fund established by

§ 28-39-7;

     (19) "Services" means all endeavors undertaken by an individual that are paid for by

another or with respect to which the individual performing the services expects to receive wages

or profits;

     (20) "Sickness". An individual shall be deemed to be sick in any week in which, because

of his or her physical or mental condition, including pregnancy, he or she is unemployed and

unable to perform his or her regular or customary work or services;

     (21) (i) "Taxes" means the money payments required by chapters 39 -- 41 of this title, to

be made to the temporary disability insurance fund or to the temporary disability insurance

reserve fund.

     (ii) Wherever and whenever in chapters 39 -- 41 of this title, the words "contribution"

and/or "contributions" appear, those words shall be construed to mean the "taxes," as defined in

this subdivision, which are the money payments required by those chapters to be made to the

temporary disability insurance fund or to the temporary disability insurance reserve fund;

     (22) "Wages" has the same definition as contained in chapter 42 of this title; provided,

that no individual shall be denied benefits under chapters 39 -- 41 of this title because his or her

employer continues to pay to that individual his or her regular wages, or parts of them, while he

or she is unemployed due to sickness and unable to perform his or her regular or customary work

or services. The amount of any payments, whether or not under a plan or system, made to or on

behalf of an employee by his or her employer after the expiration of six (6) calendar months

following the last calendar month in which the employee performed actual bona fide personal

services for his or her employer, shall not be deemed to be wages either for the purpose of paying

contributions thereon under chapter 40 of this title, or for the purpose of being used as a basis for

paying benefits under chapter 41 of this title; and

     (23) "Week" has the same definition as contained in chapter 42 of this title.

     28-39-3. Exemption of governmental entities.

     Governmental entities as defined in § 28-42-3(22) shall not be deemed to be employing

units subject to chapters 39 -- 41 of this title and services performed in the employ of those

governmental entities shall not be deemed to be employment subject to those chapters; provided,

that certain governmental entities may elect to become subject to chapters 39 -- 41 of this title in

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accordance with §§ 28-39-3.1 and 28-39-3.2. Unionized state employees may elect to become

subject to chapters 39 -- 41 of this title through the collective bargaining process.

     28-39-3.1. Employees of certain governmental entities eligible by election.

     Notwithstanding any inconsistent provisions of chapters 39 -- 41 of this title, a

governmental entity which is a political subdivision or instrumentality of a political subdivision,

or an instrumentality of more than one of them or any instrumentality of them and one or more

other political subdivisions, may become subject to those chapters by election. The appropriate

political subdivision may for itself or any pertinent instrumentality of it elect that all services

performed by individuals or specific classes of individuals in its employ shall be deemed to

constitute employment subject to these chapters with exceptions set forth in § 28-39-3.3;

provided, that if the instrumentality pertains to more than one political subdivision, all those

subdivisions shall be required to be parties to the election. Upon the approval of an election as

provided in § 28-39-3.2, the governmental entity shall, for the purposes of these chapters, be

deemed to be an employer of the individual or classes of individuals for whom the election is

approved. Except as otherwise provided in this title, all other provisions of these chapters shall

continue to be applicable in connection with the employment.

     28-39-3.2. Manner of election.

     The election shall be made by submitting to the director a duly certified copy of a

resolution or act of the legislative body of the political subdivision or subdivisions passed in

accordance with their ordinances. Upon receipt of the certified copy of the resolution or act, the

director shall specify the date as of which the governmental entity shall become subject to these

provisions. Notwithstanding any provisions of chapters 39 -- 41 of this title to the contrary, any

political subdivision or subdivisions in this state may elect in accordance with these provisions

that services performed by individuals for its highway department or department of public works,

including full-time highway surveyors, whether or not those surveyors are elected, shall be

deemed to be in employment.

     28-39-3.3. Exemptions from "employment".

     For the purposes of §§ 28-39-3.1 and 28-39-3.2 "employment" does not include services

performed by:

     (1) Elected officials;

     (2) Individuals on any work-relief project undertaken by governmental entities;

     (3) Members of the legislative body, or members of the judiciary of a political

subdivision;

     (4) Employees serving on a temporary basis in case of fire, storm, snow, earthquake,

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flood, or similar emergency; or

     (5) Positions which, under or pursuant to the laws of this state, are designated as:

     (i) Major non-tenured policymaking or advisory positions; or

     (ii) Policymaking or advisory positions, the performance of the duties of which ordinarily

does not require more than eight (8) hours per week.

     28-39-4. Creation of fund -- Sources.

     (a) There is created the temporary disability insurance fund, to be administered by the

director, without liability on the part of the state beyond the amounts paid into and earned by the

fund. This fund shall consist of:

     (1) All payments made subsequent to June 30, 1947, in accordance with § 28-39-29, and

all payments of interest;

     (2) All moneys requisitioned from the unemployment trust fund and deposited into this

fund;

     (3) All moneys that may be allocated to the fund from the temporary disability insurance

reserve fund;

     (4) All property and securities acquired by and through the use of moneys belonging to

the fund; and

     (5) Interest earned upon the moneys belonging to the fund.

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

     28-39-5. Withdrawals from fund.

     The temporary disability insurance fund shall be administered and used solely to pay

benefits upon vouchers drawn on the fund by the director pursuant to regulations and no other

disbursements shall be made from it except as provided in §§ 28-39-33, 28-39-34, and 28-40-6.

Those regulations shall be governed by and be consistent with any applicable constitutional

requirements, but the procedure prescribed by those rules shall be deemed to satisfy and shall be

in lieu of any and all statutory requirements for specific appropriation or other formal release by

state officers of state moneys prior to their expenditure which might otherwise be applicable to

withdrawals from the fund.

     28-39-6. Treasurer of fund.

     The general treasurer shall be custodian and treasurer of the fund and shall pay all

vouchers duly authenticated and drawn upon the fund. He or she shall have custody of all moneys

belonging to the fund and not otherwise held or deposited or invested pursuant to chapters 39 --

41 of this title. The general treasurer shall give bond conditioned on the faithful performance of

his or her duties as custodian and treasurer of the fund, in a form prescribed by statute and

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approved by the attorney general, and in an amount specified by the director and approved by the

governor. All premiums upon bonds required pursuant to this section when furnished by an

authorized surety company or by a duly constituted governmental bonding fund shall be paid by

the state from funds made available for that purpose by the general assembly. The general

treasurer shall deposit the moneys in his or her custody subject to chapters 39 -- 41 of this title.

The general treasurer, as treasurer of the fund, shall assign any subordinates or employees to the

department of labor and training that he or she deems necessary, and shall be paid out of funds

made available to the department for administration purposes.

     28-39-7. Creation of reserve fund -- Sources.

     (a) There is created the temporary disability insurance reserve fund, to be administered in

the manner subsequently prescribed in this chapter, without liability on the part of the state

beyond the amounts paid into and earned by the reserve fund. This reserve fund shall consist of:

     (1) All contributions;

     (2) All penalties paid subsequent to June 30, 1947, pursuant to §§ 28-39-23 -- 28-39-32

and §§ 28-40-1 -- 28-40-8;

     (3) All other moneys paid into and received by the reserve fund;

     (4) Property and securities acquired by and through the use of moneys belonging to the

reserve fund; and

     (5) Interest earned upon the moneys belonging to the reserve fund.

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

     28-39-8. Withdrawals from reserve fund.

     The reserve fund shall be administered and used in any manner that the general assembly

shall from time to time prescribe for purposes designed to benefit individuals prevented by injury

or sickness from performing their regular or customary work; provided, that any sums that may

be requisitioned from the fund by the director, for the expenses of administering chapters 39 -- 41

of this title, may be withdrawn from the reserve fund from time to time for the payment of those

expenses in accordance with §§ 28-39-33 and 28-39-34. In the event that the balance in the

temporary disability insurance fund at any time is insufficient to pay benefits under chapters 39 --

41 of this title, the governor, or the governor's authorized representative, shall cause those sums

that may be required for the payment of those benefits to be transferred from the temporary

disability insurance reserve fund to the temporary disability insurance fund.

     28-39-9. Custodian of reserve fund.

     The general treasurer shall be custodian of the reserve fund, and shall pay all vouchers

duly drawn upon the reserve fund and properly authenticated. He or she shall have custody of all

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moneys belonging to the reserve fund and not otherwise held or deposited or invested pursuant to

chapters 39 -- 41 of this title. The general treasurer shall give bond conditioned on the faithful

performance of his or her duties as custodian of the fund, in a form prescribed by statute and

approved by the attorney general, and in an amount specified by the director and approved by the

governor. All premiums upon bonds required pursuant to this section when furnished by an

authorized surety company or by a duly constituted governmental bonding fund shall be paid by

the state from funds made available for that purpose by the general assembly.

     28-39-10. Responsibility for administration.

     Chapters 39 -- 41 of this title shall be administered by the department of labor and

training. The director and the board of review shall have the same powers and duties with relation

to those chapters as they have to chapters 42 -- 44 of this title.

     28-39-11. Recommendations to protect fund -- Emergency modification of rules.

     (a) Whenever the director believes that a change in contribution and/or benefit rates shall

become necessary to protect the solvency of the fund, he or she shall at once inform the governor

and the general assembly of this and make recommendations accordingly.

     (b) In that case the governor may declare an emergency and authorize the director to

announce a modified scale of benefits, an increased waiting period, or other changes in rules and

regulations regarding eligibility for payment of benefits which the director may deem necessary

to assure the solvency of the fund. The modified regulation shall be in effect until the governor

declares the emergency at an end, or until further action is taken by the general assembly.

     28-39-12. Examination of claimants.

     The director may require any benefit claimant to submit to a reasonable examination or

examinations for the purpose of determining his or her physical or mental condition, the

examination or examinations to be conducted by a qualified healthcare provider appointed by the

director, and to be made at those times and places that such qualified healthcare provider, with the

approval of the director, require.

     28-39-13. Legal representation in actions.

     On the request of the director or the board of review, the attorney general shall represent

the director or the board of review and the state in any court action relating to chapters 39 -- 41 of

this title or their administration and enforcement, except as special counsel may be designated by

the director with the approval of the governor and except as otherwise provided in those chapters.

     28-39-14. Employers' records and reports.

     Every employer and every employing unit employing any person in employment in this

state shall keep true and accurate employment records of all persons employed by him or her, and

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of the weekly hours worked for him or her by each, and of the weekly wages paid by him or her

to each person. Every employer and employing unit shall keep records containing any other

information that may be prescribed. Those records shall at all times be available within this state

and shall be open to inspection by the director or his or her authorized representatives at any

reasonable time and as often as the director deems necessary. The director may require from any

employer, or employing unit, employing any person in this state, any reports covering persons

employed by him or her, on employment, wages, hours, unemployment, and related matters

which the director deems necessary to the effective administration of chapters 39 -- 41 of this

title.

     28-39-15. Procedural regulations -- Record of proceedings and testimony.

     The manner in which any disputed claims or any other controversies arising out of the

interpretation or application of chapters 39 -- 41 of this title are presented, or the manner in which

hearings and appeals are conducted, shall be in accordance with the prescribed regulations,

whether or not those regulations conform to common law or statutory rules of evidence and other

technical rules of procedure. A full and complete record shall be kept of all proceedings in

connection with a disputed claim. All testimony at any hearing upon a disputed claim shall be

recorded but need not be transcribed unless the disputed claim is further appealed.

     28-39-16. Enforcement of subpoenas.

     In case of contumacy by, or refusal to obey a subpoena issued to, any person, pursuant to

chapters 39 -- 41 of this title, the sixth division of the district court, upon application by the

director or the board of review, shall have jurisdiction to issue to that person an order requiring

that person to appear before the director or his or her duly authorized representative, or the board

of review or its duly authorized representatives, there to produce evidence if so ordered or there

to give testimony touching the matter under investigation or in question. Any failure to obey that

order of the court may be punished by the court as a contempt of court. A party aggrieved by an

order of the court may appeal that order to the supreme court in accordance with the procedures

contained in Article I of the Supreme Court Rules.

     28-39-17. Witness fees.

     Witnesses subpoenaed pursuant to chapters 39 -- 41 of this title shall be allowed fees at a

rate fixed by the director. Those fees shall be deemed a part of the expense of administering

chapters 39 -- 41 of this title.

     28-39-18. Parties to judicial review -- Legal representation.

     The director or the board of review shall be deemed to be a party to any judicial action

involving decisions which have been appealed to the courts and may be represented in any

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judicial action by any qualified attorney designated by him, her, or it for that purpose, or at his,

her, or its request, by the attorney general.

     28-39-19. Information held confidential.

     Every employee of the department of labor and training is expressly prohibited from

divulging to any individual not officially connected with the department: (1) any information

obtained by the employee in the regular course of duty, or from the records and reports of

employing units, or from the permanent records of the department, which would reveal the

identity of any individual or employing unit; (2) the number of persons employed by any

employing unit; (3) matters relating to employment of any employing unit; (4) the wages earned

or paid to any individual; (5) the hours worked by an individual; (6) the type of sickness suffered

by any individual; or (7) any other information relative to the temporary disability claim or

payment of it; provided, that this prohibition shall not apply to information concerning wages

earned or paid requested in a family court proceeding pursuant to §§ 15-5-24 and 15-5-25 or to

information concerning wages earned or paid requested in a superior court proceeding pursuant to

§§ 12-25-3 and 12-25-7.

     28-39-20. Denial of requests for confidential information.

     Every request for information relating to the data referred to in § 28-39-19 shall be

denied, and the individual making that request shall be informed that all requests for information

must be directed to the director.

     28-39-21. Denial of requests for information from employment reports.

     Every request for information directed to the director shall be denied if the request would

necessitate that individual to divulge any information that is declared in § 28-42-38 to be held

confidential by the director.

     28-39-22. Agencies entitled to information.

     Notwithstanding § 28-39-21, the director is authorized to divulge the information

confidentially held by the department to the agencies enumerated in § 28-42-38 as proper

agencies entitled to access to that information relating to the administration of temporary

disability insurance.

     28-39-23. False representations to obtain benefits.

     Whoever knowingly makes a false statement or representation to obtain or increase any

benefit or other payment under chapters 39 -- 41 of this title, either for himself or herself or for

any other person, shall upon conviction be punished by a fine of not less than twenty dollars

($20.00) nor more than fifty dollars ($50.00), or by imprisonment not longer than thirty (30) days,

or by both that fine and imprisonment; and each false statement or representation shall constitute

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a separate and distinct offense.

     28-39-24. False representations to avoid contributions -- Failure to produce evidence

-- Inducing waiver of rights.

     Any individual, or employing unit or its agent, who willfully makes a false statement or

representation to avoid becoming or remaining subject thereto, or to avoid or reduce any

contribution or other payment required of an employing unit under chapters 39 -- 41 of this title,

or who willfully fails or refuses to appear or to testify or produce records as lawfully required

hereunder, or who tries to induce any individual to waive any right under those chapters, shall

upon conviction be punished by a fine of not less than twenty dollars ($20.00) nor more than two

hundred dollars ($200), or by imprisonment not longer than sixty (60) days, or by both. that fine

and imprisonment. Each false statement or representation, and each day of that failure or refusal,

shall constitute a separate and distinct offense. If the employer in question is a corporation, every

officer of the corporation who knowingly participates in any violation specified in this section

shall be subject to these penalties.

     28-39-25. Criminal penalty for failure to make contributions or reports.

     Any individual, or employing unit or its agent, who knowingly fails or refuses to make

any contribution or other payment required of an employing unit under chapters 39 -- 41 of this

title, or who knowingly fails or refuses to make any contribution or report at the time and in the

manner required by the rules and regulations, shall upon conviction be punished by a fine of not

less than ten dollars ($10.00) nor more than one hundred dollars ($100), or by imprisonment not

longer than sixty (60) days, or by both that fine and imprisonment, and each day of that failure or

refusal shall constitute a separate and distinct offense. If the employer in question is a

corporation, every officer of the corporation who knowingly participates in any violation

specified in this section shall be subject to these penalties.

     28-39-26. Pecuniary penalty for failure to make contributions or reports.

     An employer who fails to file any report required under chapters 39 -- 41 of this title, or

who fails or refuses to pay any contributions required under those chapters in the manner and at

the times required by the laws and regulations or as the director may, in accordance with those

laws and regulations, prescribe, shall pay a penalty of ten dollars ($10.00) for each failure or

refusal to file, and where any contribution is due, shall pay an additional penalty of ten percent

(10%) of the amount due. These penalties shall be paid into the temporary disability insurance

reserve fund, and shall be in addition to contributions and interest required to be paid as provided

in chapters 39 -- 41; provided, that if any employer fails to pay the penalty, when assessed, it

shall be collected by civil action as provided in § 28-40-12.

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     28-39-27. Penalty for violations generally.

     Any violation of any provision of chapters 39 -- 41 of this title or of any order, rule, or

regulation of the department for which a penalty is neither prescribed above nor provided by any

other applicable statute, shall be punished by a fine of not less than twenty dollars ($20.00) nor

more than fifty dollars ($50.00), or by imprisonment not longer than thirty (30) days, or by both

that fine and imprisonment.

     28-39-28. Disposition of fines.

     All fines specified or provided for in §§ 28-39-23 -- 28-39-32 shall be paid to the

temporary disability insurance reserve fund.

     28-39-29. Recovery of benefits paid in error.

     Any individual who, by reason of a mistake or misrepresentation made by himself or

herself or another, has received any sum as benefits under chapters 39 -- 41 of this title, in any

week in which any condition for the receipt of those benefits imposed by those chapters was not

fulfilled by him or her, or with respect to any week in which he or she was disqualified from

receiving those benefits, shall in the discretion of the director be liable to have that sum deducted

from any future benefits payable to him or her under those chapters, or shall be liable to repay to

the director for the temporary disability insurance fund a sum equal to the amount so received and

that sum shall be collectible in the manner provided in § 28-40-12 for the collection of past due

contributions.

     28-39-30. Prosecution of actions for penalties.

     The director shall be the party complainant to any complaint and warrant brought to

invoke the penalties provided for in §§ 28-39-23 -- 28-39-32 and the director shall be exempt

from giving surety for costs in any action.

     28-39-31. Prosecution of criminal actions.

     All criminal actions for any violation of chapters 39 -- 41 of this title or any rule or

regulation of the department shall be prosecuted by the attorney general or by any qualified

member of the Rhode Island bar that shall be designated by the director and approved by the

attorney general to institute and prosecute that action.

     28-39-32. Limitation of prosecutions.

     No person shall be convicted of any offense for any violation of chapters 39 -- 41 of this

title or any rule or regulation of the department unless the complaint or warrant for that violation

has been issued within five (5) years from the time of the commission of the offense.

     28-39-33. Use of federal funds for administration.

     To the extent that funds are made available by the federal government, under title III of

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the Social Security Act, (42 U.S.C. § 501 et seq.), or otherwise for such purpose, the expenses of

administering chapters 39 -- 41 of this title shall be paid from those funds, provided that this

section shall not be considered to permit any expenditure of funds from the employment security

administration account contrary to § 28-42-29. In the event that the Social Security Act is

amended to permit funds granted under Title III to be used to pay expenses of administering a

sickness compensation law, such as chapters 39 -- 41 of this title, then from and after the effective

date of that amendment, the expenses of administering those chapters shall be paid out of the

employment security administration account or any other account or fund in which funds granted

under Title III are deposited.

     28-39-34. Appropriations for administration.

     The general assembly shall annually appropriate a sum sufficient for the payment of

expenses of administering chapters 39 -- 41 of this title during each fiscal year, which sum shall

be payable out of the temporary disability insurance reserve fund; provided, that those sums shall

be available to the director for the payment of expenses of administration of those chapters only

to the extent that moneys received from the federal government are not available for that purpose

as provided in § 28-39-33.

     28-39-35. Educational program.

     The director shall undertake an educational publicity program designed to safeguard the

fund created by this chapter. The director shall solicit the co-operation and assistance of labor,

industry, and the public generally, in effecting that program. In the exercise of his or her authority

under this chapter, the director shall give publicity to the need for accident prevention, and the

preservation of health. He or she shall publicize the need for industrial employment to provide the

best available safeguards for workers, as well as appropriate sanitary facilities, and he or she shall

also publicize the potential results of malingering.

     28-39-36. Repealed.

     28-39-37. Functions of treasurer and director of administration.

     The general treasurer and the state director of administration shall have the same powers

and duties with relation to chapters 39 -- 41 of this title as they respectively have to chapters 42 --

44 of this title.

     28-39-38. Construction of provisions.

     Chapters 39 -- 41 of this title shall be construed liberally in aid of their declared purpose,

which declared purpose is to lighten the burden which now falls on the unemployed worker and

his family.

     28-39-39. Reservation of legislative control.

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     All the rights, privileges, or immunities conferred by chapters 39 -- 41 of this title, or by

acts done pursuant to these chapters, shall exist subject to the power of the general assembly to

amend or repeal these chapters at any time.

     28-39-40. Severability.

     If any provision of chapters 39 -- 41 of this title, or its application to any person or

circumstances, is held invalid, the remainder of the chapters and the application of that provision

to other persons or circumstances shall not be affected by that invalidity.

     28-39-41. Task Force. [Effective January 1, 2017.]

     (a) There is hereby established a task force on temporary disability insurance fraud and

program integrity. The task force shall consist of the following members or their designees:

     (1) The director of labor and training or designee;

     (2) The secretary of health and human services or designee;

     (3) The director of health or designee;

     (4) The director of the office of management and budget or designee; and

     (5) The attorney general or designee.

     The director of labor and training shall chair the task force.

     (b) The task force shall coordinate joint efforts to combat fraud and abuse in the

temporary disability insurance program. The task force shall:

     (1) Foster appropriate use of the program by both claimants and qualified healthcare

providers by educating them about the intent of the program, the benefits provided, acceptable

use of benefits, and applicable requirements;

     (2) Protect the integrity of the temporary disability insurance fund by performing joint

investigations into fraudulent activities; and

     (3) Employ best practices, as established by other insurance programs both public and

private, to ensure program goals and objectives are aimed at providing efficient and effective

services to all customers.

     (c) Notwithstanding any other law or regulation to the contrary, the task force shall

facilitate timely information sharing between and among task force members, including the

establishment of protocols by which participating agencies will advise or refer to other agencies

matters of potential interest.

     SECTION 2. Chapter 28-40 of the General Laws entitled "Temporary Disability

Insurance - Contributions" is hereby repealed in its entirety.

CHAPTER 28-40

Temporary Disability Insurance - Contributions

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     28-40-1. Amount of employee contributions -- Wages on which based.

     (a) The taxable wage base under this chapter for each calendar year shall be equal to the

greater of thirty-eight thousand dollars ($38,000) or the annual earnings needed by an individual

to qualify for the maximum weekly benefit amount and the maximum duration under chapters 39

-- 41 of this title. That taxable wage base shall be computed as follows: Every September 30, the

maximum weekly benefit amount in effect as of that date shall be multiplied by thirty (30) and

the resultant product shall be divided by thirty-six hundredths (.36). If the result thus obtained is

not an even multiple of one hundred dollars ($100), it shall be rounded upward to the next higher

even multiple of one hundred dollars ($100). That taxable wage base shall be effective for the

calendar year beginning on the next January 1.

     (b) Each employee shall contribute with respect to employment after the date upon which

the employer becomes subject to chapters 39 -- 41 of this title, an amount equal to the fund cost

rate times the wages paid by the employer to the employee up to the taxable wage base as defined

and computed in subsection (a) of this section. The employee contribution rate for the following

calendar year shall be determined by computing the fund cost rate on or before November 15 of

each year as follows:

     (1) The total amount of disbursements made from the fund for the twelve (12) month

period ending on the immediately preceding September 30 shall be divided by the total taxable

wages paid by employers during the twelve (12) month period ending on the immediately

preceding June 30. The ratio thus obtained shall be multiplied by one hundred (100) and the

resultant product if not an exact multiple of one-tenth of one percent (0.1%) shall be rounded

down to the next lowest multiple of one-tenth of one percent (0.1%);

     (2) If the fund balance as of the preceding September 30 is less than the total

disbursements from the fund for the six (6) month period ending on that September 30, that

difference shall be added to the total disbursements for the twelve (12) month period ending

September 30 for the purpose of computing the fund cost rate, and if the resulting fund cost rate is

not an exact multiple of one-tenth of one percent (0.1%) it shall be rounded to the nearest

multiple of one-tenth of one percent (0.1%).

     28-40-2. Exemption of employee dependent on spiritual healing.

     An employee who adheres to the faith or teachings of any church, sect, or denomination

and in accordance with its creed, tenets, or principles, depends for healing upon prayer or spiritual

means in the practice of religion, shall be exempt from chapters 39 -- 41 of this title and excluded

from these provisions upon the filing with the director and with his or her employer, affidavits, in

duplicate, stating that adherence and dependence, and disclaiming any and all benefits under

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those chapters whether or not arising before the passage of these provisions, and stating the name

of the employer of that employee, which affidavits shall contain certifications by the president of

the church which that employee attends, or certifications of any practitioner in the state who is

authorized to practice healing based upon prayer or spiritual means, stating the adherence and

dependence of that employee. Subsequently, that employee and his or her employer shall be

exempt from liability for contributions with respect to that employee provided for under chapters

39 -- 41 of this title, and the employer shall be entitled to rely upon the affidavit filed with it

unless and until it receives notice from the director that these provisions have not been complied

with or that the affidavit is not in proper form. In case the employee, after the filing of the

affidavits, obtains new employment, he or she must file new affidavits as provided in this section

in order to be exempt from chapters 39 -- 41 of this title.

     28-40-2.1. Exemption of minors fourteen (14) and fifteen (15) years of age.

     Minors fourteen (14) and fifteen (15) years of age shall be exempt from chapters 39 -- 41

of this title.

     28-40-2.2. Exemption of certain disabled persons.

     Disabled persons employed through a "supported employment" program as described in

the federal Rehabilitation Act amendments of 1992 (see 29 U.S.C. § 701 et seq.) and who are

ineligible to receive temporary disability benefits because their pay is too low may elect to be

exempt from the provisions of chapters 39 -- 41 of this title.

     28-40-3. Withholding and disposition of contributions.

     Each employer shall withhold in trust contributions from the wages of his or her

employees at the time those wages are earned or paid, shall show the deduction on his or her

payroll records, and shall furnish to his or her employees any evidence of the deduction as the

director may prescribe. Each employer shall transmit all contributions withheld to the temporary

disability insurance fund in the manner, at the time, and under the conditions that shall be

prescribed by regulations.

     28-40-3.1. Contributions held in trust for state.

     (a) All contributions withheld by any employer from employees in accordance with the

provisions of this chapter, and all contributions withheld by any employer from employees under

color of those provisions, shall constitute a trust fund for the state until paid to the director.

     (b) That trust shall be enforceable against:

     (1) The employer;

     (2) Any officer, agent, servant, or employee of any corporate employer responsible for

either the withholding or payment, or both, of the contribution; and

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     (3) Any person receiving any part of the fund without consideration, or knowing that the

employer or any officer, agent, servant, or employee or any corporate employer is committing a

breach of trust.

     28-40-3.2. Notice to segregate trust funds.

     If the director believes that the payment to the state of the trust fund established under §

28-40-3.1 will be jeopardized by delay, neglect, or misappropriation, he or she shall then notify

the employer that the trust fund shall be segregated, and be kept separate and apart from all other

funds and assets of the employer and shall not be commingled with any other funds or assets.

That notice shall be given by either hand delivery or by registered mail, return receipt requested.

Within four (4) days after the sending of that notice, all taxes which subsequently either become

collectible or are collected shall be deposited weekly in any financial institution in the state and

those contributions shall be designated as a special fund in trust for the state and payable to the

state by the employer as trustee of that fund.

     28-40-3.3. Penalty for misappropriation.

     Any employer and any officer, agent, servant, or employee of any corporate employer

responsible for either the withholding or payment of contributions, who appropriates or converts

the contributions withheld to his or her own use or to any use other than the payment of the

contributions, to the extent that the money required to be withheld is not available for payment on

the due date as prescribed in this chapter, shall upon conviction for each offense be fined not

more than one thousand dollars ($1,000) or be imprisoned for not exceeding one year, or shall be

both fined and imprisoned, the fine and imprisonment to be in addition to any other penalty

provided by this chapter.

     28-40-3.4. Set-off for delinquent contributions.

     If the director determines that any individual, or employing unit or its agent, has failed or

refused to transmit contributions withheld from the wages of employees in accordance with

chapters 39 -- 41 of this title, the director shall notify the state controller of this delinquency. The

state controller, upon certification of the amount of the delinquency by the director, shall set-off

the amount of the delinquency against any payment due that person or entity and the director shall

credit that amount against the contributions due. The director may not seek set-off until such time

as a delinquency determination for the contributions has been directed to the person or entity. If a

person or entity assessed a delinquency determination for contributions has requested a hearing

on the assessment within the applicable statutory period, no request for set-off may be made

while the matter is pending in the hearing or from any appeal from the hearing.

     28-40-4. Employer's liability for contributions not withheld.

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     If any employer fails to deduct the contributions of any of his or her employees at the

time their wages are paid or fails to make a deduction at the time wages are paid for the next

succeeding payroll period, he or she alone shall subsequently be liable for those contributions,

and, for the purposes of §§ 28-39-23 -- 28-39-32 and 28-40-9 -- 28-40-16 those contributions

shall be treated as employers' contributions required from him or her.

     28-40-5. Adjustment of erroneous deductions or payments.

     If more or less than the correct amount of contributions imposed under §§ 28-40-1 -- 28-

40-4 is paid with respect to any wage payments, then, under prescribed regulations, proper

adjustments with respect to the contributions shall be made, without interest, in computing

contributions next due and payable after the discovery of the error with respect to the next

subsequent wage payment by the same employer. If more or less than the correct amount of

contributions imposed under §§ 28-40-1 -- 28-40-4 is paid with respect to any wage payment,

then, under prescribed regulations, proper adjustments with respect to both the contributions and

the amount to be deducted shall be made, without interest, in connection with the next wage

payment to the same employee by the same employer.

     28-40-6. Overpayments.

     (a) If an employer or employee makes application for refund or credit of any amount paid

as contributions or interest under this title, and the director determines that the amount or any

portion of it was erroneously collected, the director shall, in his or her discretion, either allow a

credit for it, or by voucher duly drawn by the director in an amount and in any manner that the

director may prescribe, direct the general treasurer to pay the amount determined to be

erroneously collected from the temporary disability insurance reserve fund.

     (b) If, in the discretion of the director, a credit is to be allowed, that credit shall be

applied against the payment or payments of contributions next due from that employer

subsequent to the determination of the director.

     (c) No refund or credit shall be allowed with respect to a payment as contributions or

interest, unless an application for it is made in writing on or before whichever of the following

dates is later:

     (1) One year from the date on which the payment was made; or

     (2) Three (3) years from the last day of the period with respect to which the payment was

made.

     (d) For a like cause and within the same period, a refund may be made, or a credit

allowed, on the motion of the director.

     (e) No interest shall be allowed or paid with respect to any refund.

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     (f) No refund or credit shall be allowed if the amount involved is less than one dollar

($1.00).

     (g) Nothing in this title shall be construed to authorize any refund or credit of money due

and payable under the law and regulations in effect at the time the money was paid.

     28-40-6.1. Refunds to disabled persons.

     (a) Disabled persons employed through a "supported employment" program as described

in the federal Rehabilitation Act amendments of 1992 (see 29 U.S.C. § 701 et seq.) and who: (1)

were or are ineligible to receive temporary disability benefits because their pay is too low and (2)

during one or more periods of such ineligibility they made contributions to the temporary

disability insurance fund, shall be entitled to a refund of the contributions, without interest.

     (b) A person eligible for a refund pursuant to subsection (a) of this section for

contributions made during the period commencing three (3) years prior to June 30, 1995, shall be

entitled for one year after that date to apply for a refund of the contribution, and shall have one

year from the date of contribution to apply for a refund of contributions made after June 30, 1995.

     28-40-6.2. Set-off for delinquent income taxes.

     (a) If the tax administrator determines a person has neglected or refused to pay personal

income taxes as defined in chapter 30 of title 44, the tax administrator shall notify the director of

labor and training of the delinquency. The director, upon certification of the amount of tax

delinquency by the tax administrator, shall set off the amount of the tax delinquency against any

temporary disability insurance tax refund due that person and shall forward that amount to the tax

administrator.

     (b) The tax administrator may not seek such a set-off unless a delinquency determination

for the personal income tax has first been directed to the person. Provided, further, that if a person

assessed a delinquency determination for the personal income tax has requested a hearing within

the statutory period, no request for set off may be made while the matter is pending in hearing or

any appeal from the hearing.

     28-40-7. Appeals to board of review.

     Any employer, employee, or other person aggrieved by any decision of fact or law by the

director as to his, her, or its liability to make contributions or to withhold and pay contributions,

or as to the amount of contributions due from or to be withheld and paid by him, her, or it under

chapters 39 -- 41 of this title, or by any refusal of the director to grant a refund or credit under §

28-40-6, may, either on behalf of himself or herself, or on behalf of his or her employees or other

persons aggrieved by the decision, or on behalf of both himself or herself and those employees or

persons, within fifteen (15) days after notice of the decision has been mailed to his, her, or its

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last-known address, file an appeal in writing with the board of review, setting forth the grounds

for the appeal. If an appeal is duly filed, the board of review shall set a time and place to give the

appellant an opportunity to show cause as to why the decision of the director should be changed.

Following that hearing, the board of review shall, as promptly as possible, notify the appellant

and the director of its decision on the appeal. The decision shall become final unless the appellant

or the director files an appeal to the courts in accordance with §§ 28-41-26 -- 28-41-29.

     28-40-8. Date from which employees become subject to provisions.

     If any employing unit which is or becomes an employer subject to chapters 39 -- 41 of

this title within the calendar year 1942, or within any calendar year after that, the employees of

that employing unit shall become subject to all the provisions of those chapters from the date

upon which that employing unit became an employer subject to the provisions of those chapters.

     28-40-9. Interest on delinquent payments.

     Employers who fail to make payment of contributions, as required by chapters 39 -- 41 of

this title, or by the prescribed rules and regulations, shall be additionally liable to the temporary

disability insurance reserve fund for interest on those delinquent payments at the rate of one and

one-half percent (1 1/2%) per month from the date the payment became due until paid.

     28-40-10. Priority of contributions in insolvency or bankruptcy.

     In the event of any distribution of an employer's assets pursuant to an order of any court

under the laws of this state, including any receivership, assignment for benefit of creditors,

adjudicated insolvency, composition, or similar proceeding, contribution payments then or

subsequently due shall have the same priority as given to wage claims of not more than one

hundred dollars ($100) to each claimant, earned within six (6) months of the commencement of

the proceeding. In the event of an employer's adjudication in bankruptcy, judicially confirmed

extension proposal, or composition, under the federal Bankruptcy Act, 11 U.S.C. § 101 et seq.,

contributions then or subsequently due shall be entitled to the priority provided in 11 U.S.C. §

507.

     28-40-11. Determination of unreported contributions due.

     If an employer for any reporting period fails to make any report used for the purpose of

determining the amount of contributions payable under chapters 39 -- 41 of this title at the time

and in the manner required by the prescribed rules and regulations, or if those reports when filed

are incorrect or insufficient, and the employer fails to file a corrected or sufficient report within

twenty (20) days after the director has required it by written notice, the director shall determine

on the basis of such information as the director may be able to obtain, the amount of contributions

due from that employer, and the director shall give written notice to any employer of the amount

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of contributions so determined. That determination shall finally and irrevocably fix the amount of

contributions due unless the employer, within twenty (20) days after the giving of that notice,

applies to the board of review for a hearing, or unless the director on his or her own volition

reduces the amount.

     28-40-12. Civil action to recover contributions.

     If any employer fails to make any payment of contributions or interest on them at the

time and in the manner required by the prescribed rules and regulations, the amount of

contributions so due shall be collected by civil action. All civil actions shall be instituted in the

name of the director, and he or she shall be exempt from giving any surety for costs. Civil actions

brought under this section, to collect contributions or interest on them, shall be heard by the court

having jurisdiction at the earliest possible date, and shall be entitled to preference upon the

calendar of the court over all other civil actions except petitions for a judicial review under

chapters 39 -- 41 of this title.

     28-40-13. Representation of director in civil actions.

     In any civil action brought to enforce chapters 39 -- 41 of this title, the director may be

represented by any qualified attorney whom the director has designated and employed for this

purpose or, at the director's request, by the attorney general.

     28-40-14. Contributions as debt to state -- Lien on real estate.

     (a) (1) The amount of any contributions, interest, and penalties imposed upon any

employer under this chapter shall:

     (i) Be a debt due to the state;

     (ii) Constitute a trust fund for the state until paid to the director;

     (iii) Be recoverable at law in the same manner as other debts; and

     (iv) Until collected constitute a lien upon all the real property located in this state of the

following persons or entities:

     (A) The employer;

     (B) Any officer, agent, servant, or employee of any corporate employer responsible for

either the withholding or payment, or both, of the contribution; and

     (C) Any person receiving any part of the fund without consideration, or knowing that the

employer or any officer, agent, servant, or employee or any corporate employer is committing a

breach of trust.

     (2) The lien shall take precedence over any other lien or encumbrance on that property

except as provided in this section. The director may file a notice of that tax lien with the records

of land evidence for the city or town where that property is located and it shall be the duty of the

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recorder of deeds or the city or town clerk having custody of those records to receive, file, and

index that notice under the name of the lienee. Any of the preceding provisions of this section to

the contrary notwithstanding, the lien imposed by this section shall not be valid with respect to

property in any city or town as against any bona fide purchaser, mortgagee, or lessee, whose

interest in that real property appears of record in that city or town prior to the time of filing of that

notice of tax lien in that city or town.

     (b) The notice of the tax lien filed shall: (1) be in writing; (2) contain the name and last

known address of the lienee, and (3) state that the lienee is indebted to the state under this

chapter. The notice need not describe the lienee's property, or specify the amount of contributions

owed, or the period of time covered by the delinquency. When the notice is filed in a city or town

by the director, it shall, unless sooner discharged or released, also apply to property in the city or

town subsequently acquired by the lienee during a period of six (6) years from the date of filing

and that filing need not be repeated for each successive delinquency of the lienee. The notice

shall expire six (6) years from the date of filing unless renewed by again filing a similar notice on

or before the expiration date. The director shall be obliged to discharge or release the notice of

lien when the lienee is no longer delinquent in the payment of any contributions, interest, or

penalties, whether incurred prior or subsequent to the date of filing of that notice, or upon request,

following the expiration of the statutory lien period, as set forth in this section.

     (c) For the filing of a notice of lien or discharge of a lien, the recorder of deeds or the city

or town clerk shall be paid, out of any money appropriated for expenses of the director, a fee of

four dollars ($4.00) for a completed entry.

     (d) The authority granted in this section to the director to file a notice of lien shall not be

held to repeal or amend in any other respect § 28-39-19.

     28-40-15. Notice of transfer of business -- Contributions due immediately.

     The sale or transfer by any employer other than receivers, assignees under a voluntary

assignment for the benefit of creditors, trustees in bankruptcy, or public officers acting under

judicial process, of the major part in value of the assets of that employer otherwise than in the

ordinary course of trade and the regular and usual prosecution of that employer's business, shall

be fraudulent and void as against the state, unless that employer shall, at least five (5) days before

the sale or transfer, notify the director of the proposed sale or transfer and of its price, terms, and

conditions and of the character and location of those assets. Whenever that employer makes that

sale or transfer, all contributions imposed by this chapter shall be paid at the time when the

director is so notified or, if he or she is not so notified, at the time when he or she should have

been notified.

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     28-40-16. Collection powers.

     (a) The director shall have, for the collection of the contributions imposed by this chapter,

all powers as are prescribed for collection of contributions in this title. The director may require

any person subject to the taxes imposed by this chapter to file with him or her a bond, issued by a

surety company authorized to transact business in this state, in such an amount as the director

may fix, to secure the payment of the contributions, penalties, and interest due or which may

become due from that employer.

     (b) (1) The director may require the employer to deposit with the general treasurer a bond

by way of cash or other security satisfactory to the director in an amount to be determined by the

director, but not greater than an amount equal to double the amount of the estimated tax that

would normally be due from the employer each month under this chapter, but in no case shall the

deposit be less than one hundred dollars ($100).

     (2) Where an employer who has deposited a bond with the general treasurer under

subdivision (1) of this subsection has failed to collect or remit contributions in accordance with

this chapter, the director may, upon giving written notice to the employer by registered mail or

personal service, apply the bond in whole or in part to the amount that should have been

collected, remitted, or paid by the employer.

     28-40-17. Repealed.

     28-40-18. Waiver of contributions and interest under one dollar.

     If the total amount due to the department of labor and training from an employer in

contributions and/or interest for any period is less than one dollar ($1.00), this amount shall not

be assessed.

     SECTION 3. Chapter 28-41 of the General Laws entitled "Temporary Disability

Insurance - Benefits" is hereby repealed in its entirety.

CHAPTER 28-41

Temporary Disability Insurance - Benefits

     28-41-1. Fund from which benefits payable -- Agencies through which paid.

     Benefits shall be payable from the fund and shall be paid through employment offices, or

any other agencies that the director may designate and the federal Social Security Administration

may approve, in accordance with prescribed regulations.

     28-41-2. Wages included for benefit purposes.

     Notwithstanding any provisions of chapters 39 -- 41 of this title to the contrary, "wages"

as used in the phrase "wages for employment from employers" means, with reference to the

benefits provisions of chapters 39 -- 41 of this title, only those wages which are paid subsequent

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to the date upon which the employing unit, by whom those wages were paid, has satisfied the

conditions of § 28-39-2 (12) with respect to becoming an employer subject to those chapters. No

individual shall be denied benefits under chapters 39 -- 41 of this title because his or her

employer continued to pay to that individual his or her regular wages, or parts of them, while he

or she was sick and unable to perform his or her regular or customary work or services. The

amount of any payments, whether or not under a plan or system, made to or on behalf of an

employee by his or her employer after the expiration of six (6) calendar months following the last

calendar month in which the employee performed actual bona fide personal services for that

employer, shall not be deemed to be wages for the purpose of being used as a basis for paying

benefits under chapter 41 of this title.

     28-41-3. Inclusion of unpaid wages.

     Wages earned by an employee for employment from employers, which remain unpaid

because the assets of the employer for whom that employment was rendered are in the custody or

control of an assignee for the benefit of a creditor, receiver, trustee, or any other fiduciary

appointed by or under the control of a court of competent jurisdiction, shall, for all purposes of §§

28-41-1 -- 28-41-6 and § 28-41-11, be deemed to be, and shall be treated as though those wages

had been paid to that employee during the calendar year within which those wages were earned.

     28-41-4. Repealed.

     28-41-5. Weekly benefit rate -- Dependents' allowances.

     (a) (1) Benefit rate. The benefit rate payable under this chapter to any eligible individual

with respect to any week of his or her unemployment due to sickness, when that week occurs

within a benefit year, shall be, for benefit years beginning on or after October 7, 1990, four and

sixty-two hundredths percent (4.62%) of the wages paid to the individual in that calendar quarter

of the base period in which the individual's wages were highest; provided, however, that the

benefit rate shall not exceed eighty-five percent (85%) of the average weekly wage paid to

individuals covered by chapters 42 -- 44 of this title for the preceding calendar year ending

December 31. If the maximum weekly benefit rate is not an exact multiple of one dollar ($1.00)

then the rate shall be raised to the next higher multiple of one dollar ($1.00). Those weekly

benefit rates shall be effective throughout the benefit years beginning on or after July 1 of the

year prior to July of the succeeding calendar year.

     (2) The benefit rate of any individual, if not an exact multiple of one dollar ($1.00), shall

be raised to the next higher multiple of one dollar ($1.00).

     (b) Dependents' allowances. An individual to whom benefits for unemployment due to

sickness are payable under this chapter with respect to any week, shall, in addition to those

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benefits, be paid with respect to each week a dependent's allowance of ten dollars ($10.00) or

seven percent (7%), of the individual's benefit rate, payable under subsection (a) of this section,

whichever is greater for each of that individual's children, including adopted and stepchildren or

that individual's court appointed wards who, at the beginning of the individual's benefit year, is

under eighteen (18) years of age and who is at that time in fact dependent on that individual. A

dependent's allowance shall also be paid to that individual for any child, including an adopted

child or a stepchild or that individual's court appointed ward, eighteen (18) years of age or over,

incapable of earning any wages because of mental or physical incapacity, and who is dependent

on that individual in fact at the beginning of the individual's benefit year, including individuals

who have been appointed the legal guardian of that child by the appropriate court. However, in no

instance shall the number of dependents for which an individual may receive dependents'

allowances exceed five (5) in total. The weekly total of dependents' allowances payable to any

individual, if not an exact multiple of one dollar ($1.00), shall be rounded to the next lower

multiple of one dollar ($1.00). The number of an individual's dependents, and the fact of their

dependency, shall be determined as of the beginning of that individual's benefit year; provided,

that only one individual shall be entitled to a dependent's allowance for the same dependent with

respect to any week. Each individual who claims a dependent's allowance shall establish his or

her claim to it to the satisfaction of the director under procedures established by the director.

     (c) Any individual's benefit rate and/or dependents' allowance in effect for a benefit year

shall continue in effect until the end of that benefit year.

     (d) Partial unemployment due to sickness. For weeks beginning on or after January 1,

2006, an individual partially unemployed due to sickness and otherwise eligible in any week shall

be paid sufficient benefits with respect to that week, so that his or her wages, rounded to the next

higher multiple of one dollar ($1.00), and his or her benefits combined will equal in amount the

weekly benefit rate to which he or she would be entitled if totally unemployed due to sickness in

that week; provided that an individual must have been totally unemployed due to sickness for at

least seven (7) consecutive days prior to claiming partial benefits under this provision; provided,

that this provision shall not apply if the individual is entitled to lag day benefits pursuant to § 28-

41-9; provided, further, that nothing contained herein shall permit any individual to whom

remuneration is payable for any work performed in any week in an amount equal to or greater

than his or her weekly benefit rate to receive benefits or waiting period credit for that week.

     28-41-6. Effect on waiting period credit and benefits of receipt of workers'

compensation payments.

     (a) No individual shall be entitled to receive waiting period credit benefits or dependents'

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allowances with respect to which benefits are paid or payable to that individual under any

workers' compensation law of this state, any other state, or the federal government, on account of

any disability caused by accident or illness. In the event that workers' compensation benefits are

subsequently awarded to an individual, whether on a weekly basis or as a lump sum, for a week

or weeks with respect to which that individual has received waiting period credit, benefits, or

dependents' allowances, under chapters 39 -- 41 of this title, the director, for the temporary

disability insurance fund, shall be subrogated to that individual's rights in that award to the extent

of the amount of benefits and/or dependents' allowances paid to him or her under those chapters.

     Provided, however, that nothing herein shall be construed to deny benefits or waiting

period credit benefits or dependents' allowances under this chapter to individuals who receive a

lump sum settlement pursuant to § 28-33-25 and subsequently apply for benefits under this

chapter as long as the sickness or illness is materially different from the one for which the

individual was paid workers' compensation, is not affected by said injury and/or the medical

condition did not result from the injury for which the employee was paid workers' compensation

benefits.

     (b) (1) Whenever an employer or his or her insurance carrier has been notified that an

individual has filed a claim for unemployment due to sickness for any week or weeks under

chapters 39 -- 41 of this title for which week or weeks that individual is or may be eligible for

benefits under chapters 29 -- 38 of this title, that notice shall constitute a lien upon any pending

award, order, or settlement to that individual under chapters 29 -- 38 of this title.

     (2) The employer or his insurance carrier shall be required to reimburse the director, for

the temporary disability insurance fund, the amount of benefits and/or dependents' allowances

received by the individual under chapters 39 -- 41 of this title, for any week or weeks for which

that award, order, or settlement is made.

     (c) Whenever an individual becomes entitled to or is awarded workers' compensation

benefits for the same week or weeks with respect to which he has received benefits and/or

dependents' allowances under chapters 39 -- 41 of this title, and notice of that receipt has been

given to the division of workers' compensation of the department of labor and training and/or the

workers' compensation court, the division or court is required to and shall incorporate in the

award, order, or approval of settlement, an order requiring the employer or his or her insurance

carrier to reimburse the director, for the temporary disability insurance fund, the amount of any

disability benefits and/or dependents' allowances which may have been paid to the employee for

unemployment due to sickness for those weeks under chapters 39 -- 41 of this title. Nothing

herein shall be construed to deny benefits under this chapter to individuals who receive a lump

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sum settlement pursuant to § 28-33-25 and subsequently apply for benefits under this chapter as

long as the sickness or illness is materially different from the one for which the individual was

paid workers' compensation, is not affected by said injury and/or the medical condition did not

result from the injury for which the employee was paid workers' compensation benefits.

     (d) If, through inadvertence, error, or mistake, an individual has received benefit

payments and/or dependents' allowances for any week or weeks under chapters 39 -- 41 of this

title, and has also received payments for the same week or weeks under any workers'

compensation law of this state, any other state, or of the federal government, he or she shall, in

the discretion of the director of the department of labor and training, be liable to have that sum

deducted from any benefits payable to him or her under chapters 39 -- 41 of this title, or shall be

liable to repay to the director, for the temporary disability insurance fund, a sum equal to that

amount received, and that sum shall be collectible in the manner provided in § 28-40-12 for the

collection of past due contributions.

     (e) Notwithstanding any other provision of this section, no individual who, prior to

September 1, 1969, has sustained an injury by reason of which he or she may be eligible for

benefits under chapters 29-38 of this title shall be deprived of any rights which he or she may

have under chapters 39 -- 41 of this title.

     28-41-7. Total amount of benefits.

     The total amount of benefits payable during a benefit year to any eligible individual shall

be an amount equal to thirty-six percent (36%) of the individual's total wages for employment by

employers subject to chapters 39 -- 41 of this title during his or her base period; provided, that no

individual shall be paid total benefits in any benefit year which exceed thirty (30) times his or her

weekly benefit rate; provided further, that dependents' allowances to which he or she might be

entitled under § 28-41-5 shall be in addition to these total benefits. If the total amount of benefits

is not an exact multiple of one dollar ($1.00), then it shall be raised to the next higher multiple of

one dollar ($1.00).

     28-41-8. Pregnancy benefits.

     An eligible individual who is unemployed due to sickness resulting from pregnancy,

childbirth, miscarriage, or abortion shall be entitled to receive those benefits which are regularly

provided for unemployment due to sickness in chapters 39 -- 41 of this title.

     28-41-9. Lag day benefits.

     (a) An individual who, having been unemployed due to sickness and who is in receipt of

benefits under this chapter, returns to work prior to the end of the immediately succeeding week,

shall be entitled to one-fifth (1/5) of his or her benefit rate for each day of unemployment due to

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sickness in which work is ordinarily performed in the occupation in which he or she is employed

during the week in which he or she returns to work, figured to the highest dollar, including any

holiday when the performance of services is waived by his or her employer; provided, that in no

case shall any individual be entitled to more than four-fifths (4/5) of his benefit rate, figured to

the highest dollar, for that week.

     (b) An individual who, having been unemployed due to sickness at a later date during his

or her benefit year, again becomes unemployed due to sickness, and refiles his or her claim for

benefits, shall, if his or her first day of unemployment begins on a day subsequent to the first day

of any week, be entitled to one-fifth (1/5) of his or her benefit rate for each day in that week in

which work is ordinarily performed in the occupation in which he or she was last employed,

including any holiday when the performance of services is waived by his or her employer, figured

to the highest dollar, if his or her unemployment continues for seven (7) consecutive calendar

days, including the first day of unemployment due to sickness for which he or she has refiled his

or her claim. In no case shall any individual be entitled to more than four-fifths (4/5) of his or her

benefit rate, figured to the highest dollar, for the week in which his or her unemployment begins

on a day subsequent to the first day of that week.

     28-41-10. Benefits payable for last week of benefit year.

     Notwithstanding any provision of chapters 39 -- 41 of this title to the contrary, if the

benefit year of an individual terminates prior to the end of a week throughout which he or she is

unemployed due to sickness and eligible and his or her benefit credits for that benefit year have

not been exhausted, then that individual shall be entitled to receive for that week the full amount

of benefits which he or she would have received if his or her benefit year had not so terminated;

provided, that this shall in no manner affect the establishment of a new base period and benefit

year in accordance with § 28-39-2(2) and (6).

     28-41-11. Eligibility.

     (a) For benefit years beginning on or after July 1, 1981 and prior to October 7, 1990, an

individual shall be deemed eligible for benefits for any given week of his or her unemployment

due to sickness only if he or she has, within the base period immediately preceding the benefit

year in which that week of unemployment occurs, earned wages amounting to at least twenty (20)

times the minimum hourly wage as defined in chapter 12 of this title, in each of at least twenty

(20) weeks or, in the alternative, in an amount equal to three (3) times the total minimum amount

required in this chapter.

     (b) In order to be deemed eligible for benefits, an individual whose benefit year begins on

or after October 7, 1990: must have been paid wages in:

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     (1) Any one calendar quarter of the base period which are at least two hundred (200)

times the minimum hourly wage, as defined in chapter 12 of this title, and must have been paid

wages in the base period amounting to at least one and one-half (1 1/2) times the wages paid to

the individual in that calendar quarter of the base period in which the individual's wages were

highest; provided, that the minimum amount of total base period wages paid to the individual

must be at least four hundred (400) times the minimum hourly wage, as defined in chapter 12 of

this title. The base period wages must have been paid to the individual for performing services in

employment for one or more employers subject to chapters 39 -- 41 of this title; or, in the

alternative,

     (2) The base period for performing services in employment for one or more employers

subject to chapters 39 -- 41 of this title amounting to at least three (3) times the total minimum

amount required in subdivision (1) of this subsection.

     (c) In addition to the provisions of subsection (b) of this section, for benefit years that

begin on or after July 1, 2012, an individual must have been unemployed due to sickness for at

least seven (7) consecutive days in order to be eligible for benefits.

     28-41-12. Repealed.

     28-41-13. Disqualification by receipt of unemployment compensation benefits.

     (a) (1) An individual shall be disqualified from receiving benefits during any week with

respect to which he or she will receive remuneration in the form of benefits under an

unemployment compensation law of any state or of the United States.

     (2) Notwithstanding any provisions of chapters 39 -- 41 of this title to the contrary, an

individual receiving unemployment compensation and who is injured while unemployed and who

is then denied unemployment compensation as a result of those injuries, shall, if otherwise

eligible, be entitled to receive temporary disability insurance benefits without serving a waiting

period as required in § 28-41-12.

     (b) Notwithstanding any provisions of chapters 39 -- 41 of this title to the contrary, if an

individual has been determined to have been paid unemployment compensation benefits and/or

dependents' allowances under chapters 42 -- 44 of this title, for the same week or weeks with

respect to which the individual was entitled to receive temporary disability insurance benefits

and/or dependents' allowances under chapters 39 -- 41 of this title, that individual shall, at the

discretion of the director, be liable to have that sum deducted from any benefits payable to him or

her under chapters 39 -- 41 of this title for the same week or weeks, to reimburse the director for

the employment security fund.

     28-41-14. Disqualification by conviction of fraud.

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     (a) An individual who has been convicted by a court of competent jurisdiction of

knowingly or fraudulently making a false statement, or knowingly or fraudulently

misrepresenting a material fact, with intent to defraud the temporary disability insurance fund of

any benefit or wrongfully to obtain or increase any benefit, either for himself or herself or for any

other person, shall be disqualified from receiving benefits for a period of one year following that

conviction.

     (b) This disqualification shall be imposed by the director and shall be in addition to any

criminal penalty which may be imposed under any other provision in chapters 39 -- 41 of this

title.

     28-41-15. Filing of claims -- Restriction on waiting period credit or benefits -- Copies

of law and regulations. [Effective until January 1, 2017.]

     (a) Benefit claims shall be filed pursuant to prescribed regulations.

     (b) No individual shall be eligible for waiting period credits or benefits under this title for

any week of unemployment due to sickness which occurs more than fifty-two (52) weeks prior to

the time when written notice of his or her claim for waiting period credits or benefits is mailed or

delivered to the department of labor and training or such other agency as the director may

designate.

     (c) Each employer shall post and maintain printed statements of subsection (b) of this

section and of those regulations, in places readily accessible to individuals in his or her service.

Those printed statements shall be supplied by the director to each employer without cost to that

employer.

     (d) Upon the filing of a claim, the director shall promptly mail a notice of the filing of the

claim to the claimant's most recent employer and to all employers for whom the claimant states

he or she performed services and earned wages during his or her base period. The employers shall

promptly furnish the information required to determine the claimant's benefit rights. If the

claimant's employer or employers have any information which might affect either the validity of

the claim or the right of the claimant to waiting period credit or benefits, the employer shall return

the notice with this information. Notwithstanding any inconsistent provisions of chapters 39 -- 41

of this title, any employer who fails without good cause as established to the satisfaction of the

director to return the notice within seven (7) working days of its mailing shall pay a penalty of

twenty-five dollars ($25.00) for each failure. This penalty shall be paid into the temporary

disability insurance reserve fund and if any employer fails to pay the penalty, when assessed, it

shall be collected by civil action as provided in § 28-40-12.

     28-41-15. Filing of claims -- Restriction on benefits -- Copies of law and regulations.

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[Effective January 1, 2017.]

     (a) Benefit claims shall be filed pursuant to prescribed regulations.

     (b) No individual shall be eligible for benefits under this title for any week of

unemployment due to sickness that occurs more than ninety (90) days prior to the time when

written notice of his or her claim for benefits is mailed or delivered to the department of labor and

training or such other agency as the director may designate. Notwithstanding the above, the

director may extend the claim filing period up to twenty-six (26) weeks if the individual can show

a good, medical reason for the delay in filing the claim for benefits.

     (c) Each employer shall post and maintain printed statements of subsection (b) and of

those regulations, in places readily accessible to individuals in his or her service. Those printed

statements shall be supplied by the director to each employer without cost to that employer.

     (d) Upon the filing of a claim, the director shall promptly mail a notice of the filing of the

claim to the claimant's most recent employer and to all employers for whom the claimant states

he or she performed services and earned wages during his or her base period. The employers shall

promptly furnish the information required to determine the claimant's benefit rights. If the

claimant's employer or employers have any information that might affect either the validity of the

claim or the right of the claimant to waiting period credit or benefits, the employer shall return the

notice with this information. Notwithstanding any inconsistent provisions of chapters 39 -- 41 of

this title, any employer who fails, without good cause as established to the satisfaction of the

director, to return the notice within seven (7) working days of its mailing shall pay a penalty of

twenty-five dollars ($25.00) for each failure. This penalty shall be paid into the temporary

disability insurance reserve fund and, if any employer fails to pay the penalty, when assessed, it

shall be collected by civil action as provided in § 28-40-12.

     28-41-16. Determination of claim.

     (a) Upon the filing of a claim, the director shall promptly examine the claim and on the

basis of facts found by the director and records maintained by the department, the claim shall be

determined to be valid or invalid. If the claim is determined to be valid, the director shall

promptly notify the claimant as to the week with respect to which benefits shall commence, the

weekly benefit amount payable, and the maximum duration of those benefits. If the claim is

determined to be invalid, the director shall likewise notify the claimant and any other interested

parties of that determination and the reasons for it. If the processing of the claim is delayed for

any reason, the director shall notify the claimant, in writing, within three (3) weeks of the date the

application for benefits is filed of the reason for the delay. Unless the claimant or any other

interested party, within fifteen (15) days, requests a hearing before the board of review, the

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determination with reference to the claim is final. However, for good cause shown the fifteen (15)

day period may be extended after notification by the director has been mailed to his or her last

known address, as provided in this section. At any time within one year from the date of a

monetary determination, the director, upon request of the claimant or on his or her own motion,

may reconsider his or her determination if he or she finds that an error in computation or identity

has occurred in connection with it or that additional wages pertinent to the claimant's status have

become available, or if that determination has been made as a result of a nondisclosure or

misrepresentation of a material fact.

     (b) If an appeal is duly filed, benefits with respect to the period prior to the final decision,

if it is found that those benefits are payable, shall be paid only after the decision. If an appeal

tribunal affirms a decision of the director, or the board of review affirms a decision of an appeal

tribunal allowing benefits, those benefits shall be paid regardless of any appeal which may

subsequently be taken.

     28-41-17. Appeal tribunals.

     To hear and decide disputed claims, the board of review may appoint one or more

impartial referees, each of whom shall constitute an appeal tribunal to hear and decide appeals

from determinations and re-determinations. The board may make appointments to this tribunal

and fix its salaries in accordance with the state civil service law, rules, and regulations. No person

shall participate on behalf of the board in any case in which he or she is an interested party.

     28-41-18. Filing of appeal -- Parties -- Withdrawal.

     Any claimant may file an appeal from the determination of the director to an appeal

tribunal within the specified time. The parties to an appeal from a determination shall include all

interested parties, including the director. Appeals may be withdrawn at the request of the

appellant and with the permission of the appeal tribunal, if the record preceding the appeal and

the request for the withdrawal support the correctness of the determination and indicate that no

coercion or fraud is involved in the withdrawal.

     28-41-19. Hearing by appeal tribunal -- Regulations -- Record of proceedings.

     A reasonable opportunity for a fair hearing shall promptly be afforded all interested

parties. An appeal tribunal shall inquire into and develop all facts bearing on the issues and shall

receive and consider evidence without regard to statutory and common-law rules. The board of

review shall adopt regulations governing the manner of filing appeals and the conduct of hearings

and appeals, consistent with chapters 39 -- 41 of this title. A record shall be kept of all testimony

and proceedings in an appeal, but testimony need not be transcribed unless further review is

initiated.

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     28-41-20. Consolidated appeals.

     When the same or substantially similar evidence is material to the matter in issue with

respect to more than one individual, the same time and place for considering all those cases may

be fixed, hearings on the evidence jointly conducted, a single record of the proceedings made, and

evidence introduced with respect to one proceeding considered as introduced in the others,

provided no party is prejudiced thereby.

     28-41-21. Decision of appeal tribunal or referee.

     (a) After a hearing, an appeal tribunal shall make findings and conclusions promptly and

on the basis of the findings and conclusions affirm, modify, or reverse the director's

determination. Each party shall be promptly furnished a copy of the decision and the supporting

findings and conclusions. This decision shall be final unless further review is initiated pursuant to

§ 28-41-22 within fifteen (15) days after the decision has been mailed to each party's last known

address or otherwise delivered to him or her, provided that that period may be extended for good

cause.

     (b) A decision of the referee of the board of review shall be honored and complied with

until or unless modified or overruled by the board or a court of competent jurisdiction.

     28-41-22. Appeal to and review by board.

     Any party in interest, including the director, shall be allowed an appeal to the board of

review from the decision of an appeal tribunal. The board on its own motion may initiate a review

of a decision or determination of an appeal tribunal within fifteen (15) days after the date of

decision. The board may affirm, modify, or reverse the findings or conclusions of the appeal

tribunal solely on the basis of previously submitted evidence or upon the basis of such additional

evidence as it may direct to be taken.

     28-41-23. Removal to board of cases pending before appeal tribunals.

     The board of review may remove to itself or transfer to another appeal tribunal any

appeal pending before an appeal tribunal. An appeal so removed to the board before a fair hearing

has been completed shall be given a fair hearing by the board, as required by § 28-41-19 with

respect to proceedings before an appeal tribunal.

     28-41-24. Conclusiveness of decisions -- Reopening in cases of fraud or coercion.

     All final determinations and decisions shall be conclusive upon all parties in interest,

including the director. The director, appeal tribunal, or board of review shall reopen a

determination or decision or revoke permission for withdrawal of an appeal if:

     (1) He, she, or it finds that a worker or employer has been defrauded or coerced in

connection with the determination, decision, or withdrawal of the appeal; and

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     (2) The defrauded or coerced person informs the appropriate officer or body of the fraud

or coercion within sixty (60) days after he or she has become aware of the fraud or within sixty

(60) days after the coercion has been removed.

     28-41-25. Rule of decision -- Certification of questions to board.

     Final decisions of the board of review and the principles of law declared in their support

shall be binding in all subsequent proceedings involving similar questions, unless expressly or

impliedly overruled by a later decision of the board or of a court of competent jurisdiction. Final

decisions of appeal tribunals and the principles of law declared in their support shall be binding

on the director and shall further be persuasive authority in subsequent appeal tribunal

proceedings. If in any subsequent proceedings, the director or an appeal tribunal has serious doubt

as to the correctness of any principles previously declared by an appeal tribunal or by the board,

or if there is an apparent inconsistency or conflict in final decisions of comparable authority, then

the findings of fact in that case may be certified, together with the question of law involved, to the

board. After giving notice and reasonable opportunity for a hearing upon the law to all parties to

the proceedings, the board shall certify to the director or appeal tribunal and the parties in interest,

its answer to the question submitted, or the board, in its discretion, may remove to itself the entire

proceeding as provided in § 28-41-23 and render its decision upon the entire case.

     28-41-26. Denial of appeal to board deemed decision of board.

     For the purposes of judicial review, an appeal tribunal's decision from which an

application for appeal has been denied by the board of review shall be deemed to be the decision

of the board, except that the time for initiating judicial review shall run from the date of the

mailing or delivery of the notice of the denial of the application for appeal by the board.

     28-41-27. Judicial appeals.

     Appeals from administrative orders or decisions made pursuant to any provisions of this

chapter shall be to the sixth division district court, pursuant to chapter 35 of title 42, the

Administrative Procedures Act.

     28-41-28. Parties to review -- Service of petition -- Certification of record.

     The board of review and all parties to the proceedings before it shall be parties to the

review proceedings. If the director is a party respondent, the petition shall be served by leaving

with him or her, or any representative whom he or she designates for that purpose, as many

copies of the petition as there are respondents. Within ten (10) days after filing of the petition, an

affidavit of compliance shall be filed with the superior court in which the petition has been filed.

The director shall file with the court certified copies of the record of the case together with his or

her petition for review or his or her answer to the appellant's petition. Upon the filing of a petition

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for review by the director, or upon service of a petition upon him or her, the director shall send a

copy of the petition by registered or certified mail to each party and that mailing shall constitute

service upon the parties.

     28-41-29. Questions reviewed by court -- Additional evidence -- Precedence --

Appeal to supreme court.

     The jurisdiction of the reviewing court shall be confined to questions of law and, in the

absence of fraud, the findings of fact by the board of review, if supported by substantial evidence

regardless of statutory or common-law rules, shall be conclusive. Additional evidence required by

the court shall be taken before the board, and the board, after hearing that additional evidence,

shall file with the court any additional or modified findings of fact or conclusions that it may

make, together with transcripts of the additional record. All proceedings under §§ 28-41-26 -- 28-

41-29 shall be summarily heard and given precedence over all other civil cases. Appeals

involving benefit rights shall be given precedence over all other cases arising under chapters 39 --

41 of this title. An appeal may be taken from the decision of the superior court to the supreme

court in the same manner as an appeal is taken under § 28-35-29, relating to appeals in cases

under the workers' compensation law.

     28-41-30. Waiver of rights -- Agreement to pay employer's contributions.

     No agreement by any individual to waive his or her right to benefits or any other right

under chapters 39 -- 41 of this title shall be valid. No agreement by any individual in the employ

of any person or concern, to pay all or any portion of the contributions required under these

chapters from employers, shall be valid. No employer shall make or require or accept any

deduction from wages to finance the contributions required of him or her, or require or accept any

waiver by an individual of any right under chapters 39 -- 41 of this title. The director shall have

power to take any steps necessary or suitable under those chapters to correct or prosecute any

violation.

     28-41-31. Fees charged claimants.

     No individual claiming benefits shall be charged fees of any kind by the director or his or

her representative, or by the board of review or its representatives, in any proceeding under

chapters 39 -- 41 of this title. Any individual claiming benefits in any proceeding or court action

may be represented by counsel or other duly authorized agent. The director shall have the

authority to fix the fees of that counsel or other duly authorized agent, but no counsel or agents

shall together be allowed to charge or receive for those services more than ten per cent (10%) of

the maximum benefits at issue in that proceeding or court action except as specifically allowed by

the superior court.

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     28-41-32. Exemption of benefits from assignment or process.

     Benefits which are due or may become due under chapters 39 -- 41 of this title shall not

be assigned, pledged, or encumbered before payment. When awarded, adjudged, or paid, so long

as they are not mingled with other funds of the recipient, the benefits shall be exempt from all

claims of creditors, and from levy, execution, and attachment or other remedy now or

subsequently provided for recovery or collection of debt, which exemption may not be waived.

     28-41-33. Legal counsel to board of review.

     (a) The board of review shall be empowered to appoint and employ a qualified attorney,

who shall act in accordance with any instructions that he or she may receive from the board

concerning appeals from its decisions and other related duties, and shall be paid an annual base

salary of eleven thousand dollars ($11,000).

     (b) Whenever the board becomes a party to court action, the attorney shall represent its

interests before the courts.

     (c) The duly appointed attorney shall serve in this capacity for a term of three (3) years

from the date of his or her appointment by the board, and until his or her successor is appointed.

     28-41-34. Temporary caregiver insurance.

     The purpose of this chapter is to establish, within the state temporary disability insurance

program, a temporary caregiver insurance program to provide wage replacement benefits in

accordance with the provisions of this chapter, to workers who take time off work to care for a

seriously ill child, spouse, domestic partner, parent, parent-in-law, grandparent, or to bond with a

new child.

     Definitions as used in this chapter:

     (1) "Child" means a biological, adopted, or foster son or daughter, a stepson or

stepdaughter, a legal ward, a son or daughter of a domestic partner, or a son or daughter of an

employee who stands in loco parentis to that child.

     (2) "Newborn child" means a child under one year of age.

     (3) "Adopted child" means a child adopted by, or placed for adoption with, the employee.

     (4) "Bonding or bond" means to develop a psychological and emotional attachment

between a child and his or her parent(s) or persons who stand in loco parentis. This shall involve

being in one another's physical presence.

     (5) "Parent" means a biological, foster, or adoptive parent, a stepparent, a legal guardian,

or other person who stands in loco parentis to the employee or the employee's spouse or domestic

partner when he/she was a child.

     (6) "Domestic partner" means a party to a civil union as defined by chapter 15-3.1.

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     (7) "Spouse" means a party in a common law marriage, a party in a marriage conducted

and recognized by another state or country, or in a marriage as defined by chapter 15-3.

     (8) "Grandparent" means a parent of the employee's parent.

     (9) "Parent-in-law" means the parent of the employee's spouse or domestic partner.

     (10) "Employee" means any person who is or has been employed by an employer subject

to chapters 39 through 41 of this title and in employment subject to those chapters.

     (11) "Serious health condition" means any illness, injury, impairment, or physical or

mental condition that involves inpatient care in a hospital, hospice, residential health care facility,

or continued treatment or continuing supervision by a licensed health care provider.

     (12) "Department" means the department of labor and training.

     (13) "Persons who stand in loco parentis" means those with day-to-day responsibilities to

care for and financially support a child or, in the case of an employee, who had such

responsibility for the employee when the employee was a child. A biological or legal relationship

shall not be required.

     28-41-35. Benefits.

     (a) Subject to the conditions set forth in this chapter, an employee shall be eligible for

temporary caregiver benefits for any week in which he or she is unable to perform his or her

regular and customary work because he or she is:

     (1) Bonding with a newborn child or a child newly placed for adoption or foster care with

the employee or domestic partner in accordance with the provisions of subdivision 28-41-

36(c)(1); or

     (2) Caring for a child, a parent, parent-in-law, grandparent, spouse, or domestic partner,

who has a serious health condition, subject to a waiting period in accordance with the provisions

of § 28-41-12. Employees may use accrued sick time during eligibility waiting period in

accordance with the policy of the individual's employer.

     (b) Temporary caregiver benefits shall be available only to the employee exercising his or

her right to leave while covered by the temporary caregiver insurance program. An employee

shall file a written intent with their employer, in accordance with rules and regulations

promulgated by the department, with a minimum of thirty (30) days notice prior to

commencement of the family leave. Failure by the employee to provide the written intent may

result in delay or reduction in the claimant's benefits, except in the event the time of the leave is

unforeseeable or the time of the leave changes for unforeseeable circumstances.

     (c) Employees cannot file for both temporary caregiver benefits and temporary disability

benefits for the same purpose, concurrently, in accordance with all provisions of this act and

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chapters 39-41.

     (d) Temporary caregiver benefits may be available to any individual exercising his or her

right to leave while covered by the temporary caregiver insurance program, commencing on or

after January 1, 2014, which shall not exceed the individual's maximum benefits in accordance

with chapters 39-41. The benefits for the temporary caregiver program shall be payable with

respect to the first day of leave taken after the waiting period and each subsequent day of leave

during that period of family temporary disability leave. Benefits shall be in accordance with the

following: