2017 -- S 0508

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LC001679

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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 -- WORKERS' COMPENSATION

     Introduced By: Senators Ciccone, DiPalma, Seveney, and Cote

     Date Introduced: March 02, 2017

     Referred To: Senate Labor

     It is enacted by the General Assembly as follows:

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

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

     28-53-2. Establishment -- Sources -- Administration.

     (a) There shall be established within the department of labor and training a special

restricted receipt account to be known as the Rhode Island uninsured employers fund. The fund

shall be capitalized from excise taxes assessed against uninsured employers pursuant to the

provisions of § 28-53-9 of this chapter and from general revenues appropriated by the legislature.

Beginning in state fiscal year ending June 30, 2017 2019, the legislature may appropriate up to

two million dollars ($2,000,000) in general revenue funds annually for deposit into the Rhode

Island uninsured employers fund.

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

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

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

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

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

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

     28-53-7. Payments to employees of uninsured employers.

     (a) Where it is determined that the employee was injured in the course of employment

while working for an employer who fails to maintain a policy of workers' compensation insurance

as required by § 28-36-1 et seq., the uninsured employers fund shall pay the benefits to which the

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

limitations set forth herein.

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

pursuant to § 28-30-1 et seq.; provided, however, that the uninsured employers fund and the

employer shall be named as parties to any petition seeking payment of benefits from the fund.

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

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

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

loss of function and disfigurement pursuant to the provisions of § 28-33-19.

     (d) The fund shall pay cost, counsel, and witness fees, as provided in § 28-35-32, to any

employee who successfully prosecutes any petitions for compensation; petitions for medical

expenses; petitions to amend a pretrial order or memorandum of agreement; and all other

employee petitions; and to employees who successfully defend, in whole or in part, proceedings

seeking to reduce or terminate any and all workers' compensation benefits; provided, however,

that the attorney's fees awarded to counsel who represent the employee in petitions for lump-sum

commutation filed pursuant to § 28-33-25, or in the settlement of disputed cases pursuant to § 28-

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

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

Island supreme court.

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

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

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

future benefits payable directly to the employee.

     (f) This section shall apply to injuries that occur on or after July 1, 2017 2019.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO LABOR AND LABOR RELATIONS -- WORKERS' COMPENSATION

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     This act would delay funding of the Rhode Island Uninsured Employers Fund by the

General Assembly until July 30, 2019. It would also make the Rhode Island Uninsured

Employers Fund available to employees injured at work on or after July 1, 2019.

     This act would take effect upon passage.

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