2018 -- S 2594

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO LABOR AND LABOR RELATIONS - RHODE ISLAND UNINSURED

EMPLOYERS FUND

     

     Introduced By: Senators Lombardi, McCaffrey, Lynch Prata, Jabour, and Nesselbush

     Date Introduced: March 01, 2018

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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

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

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

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

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

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

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

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state fiscal year ending June 30, 2018 June 30, 2019, the legislature may appropriate up to two

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

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uninsured employers fund.

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

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

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

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

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

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

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

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

 

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

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

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

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limitations set forth herein.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Island supreme court.

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

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

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

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future benefits payable directly to the employee.

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     (f) This section shall apply to injuries that occur on or after July 1, 2018 July 1, 2019.

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     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 - RHODE ISLAND UNINSURED

EMPLOYERS FUND

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     This act would extend the effective date of the Rhode Island uninsured employers fund to

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July 1, 2019.

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     This act would take effect upon passage.

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