Chapter 293

2004 -- S 2749 SUBSTITUTE A AS AMENDED

Enacted 07/02/04

 

 

A N A C T

RELATING TO WORKERS' COMPENSATION -- PROCEDURE

     

     

     Introduced By: Senator Roger R. Badeau

     Date Introduced: February 11, 2004

 

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Sections 28-29-2, 28-29-17 and 28-29-19 of the General Laws in Chapter

28-29 entitled "Workers' Compensation -- General Provisions" are hereby amended to read as

follows:

     28-29-2. Definitions. -- In chapters 29 -- 38 of this title, unless the context otherwise

requires:

      (1) "Department" means the department of labor and training.

      (2) "Director" means the director of labor and training or his or her designee unless

specifically stated otherwise.

      (3) (i) "Earnings capacity" means the weekly straight time earnings which an employee

could receive if the employee accepted an actual offer of suitable alternative employment.

Earnings capacity can also be established by the court based on evidence of ability to earn,

including, but not limited to, a determination of the degree of functional impairment and/or

disability, that an employee is capable of employment. The court may, in its discretion, take into

consideration the performance of the employee's duty to actively seek employment in scheduling

the implementation of the reduction. The employer need not identify particular employment

before the court can direct an earnings capacity adjustment. In the event that an employee returns

to light duty employment while partially disabled, an earnings capacity shall not be set based

upon actual wages earned until the employee has successfully worked at light duty for a period of

at least thirteen (13) weeks.

      (ii) As used under the provisions of this title, "functional impairment" means an

anatomical or functional abnormality existing after the date of maximum medical improvement as

determined by a medically or scientifically demonstrable finding and based upon the most recent

edition of the American Medical Association's Guide to the Evaluation of Permanent Impairment

or comparable publications of the American Medical Association.

      (iii) In the event that an employee returns to employment at an average weekly wage

equal to the employee's pre-injury earnings exclusive of overtime, the employee will be presumed

to have regained his/her earning capacity.

      (4) "Employee" means any person who has entered into the employment of or works

under contract of service or apprenticeship with any employer, except that in the case of a city or

town other than the city of Providence it shall only mean that class or those classes of employees

as may be designated by a city, town, or regional school district in a manner provided in this

chapter to receive compensation under chapters 29 -- 38 of this title. Any person employed by the

state of Rhode Island, except for sworn employees of the Rhode Island State Police, who is

otherwise entitled to the benefits of chapter 45-19 shall be subject to the provisions of chapters

29-38 of title 28 for all case management procedures and dispute resolution for all benefits. It

does not include any partner, general or limited, or any partner in a registered limited liability

partnership, or any nonmanager member of a limited liability company, sole proprietor,

independent contractor, or a person whose employment is of a casual nature, and who is

employed other than for the purpose of the employer's trade or business, or a person whose

services are voluntary or who performs charitable acts, nor shall it include the members of the

regularly organized fire and police departments of any town or city. Whenever a contractor has

contracted with the state, a city, town, or regional school district any person employed by that

contractor in work under contract shall not be deemed an employee of the state, city, town, or

regional school district as the case may be. Any person who on or after January 1, 1999, was an

employee and became a corporate officer shall remain an employee, for purposes of these

chapters, unless and until coverage under this act is waived pursuant to subsection 28-29-8(b) or

section 28-29-17. Any person who is appointed a corporate officer between January 1, 1999 and

December 31, 2001, and was not previously an employee of the corporation, will not be

considered an employee, for purposes of these chapters, unless that corporate officer has filed a

notice pursuant to section 28-29-19(b). In the case of a person whose services are voluntary or

who performs charitable acts, any benefit received, in the form of monetary remuneration or

otherwise, shall be reportable to the appropriate taxation authority but shall not be deemed to be

wages earned under contract of hire for purposes of qualifying for benefits under chapters 29 --

38 of this title. Any reference to an employee who had been injured shall, where the employee is

dead, include a reference to his or her dependents as defined in this section, or to his or her legal

representatives, or, where he or she is a minor or incompetent, to his or her conservator or

guardian. A "seasonal occupation" means those occupations in which work is performed on a

seasonal basis of not more than sixteen (16) weeks.

      (5) "Employer" includes any person, partnership, corporation, or voluntary association,

and the legal representative of a deceased employer; it includes the state, and the city of

Providence. It also includes each city, town, and regional school district in the state that votes or

accepts the provisions of chapters 29 -- 38 of this title in the manner provided in this chapter.

      (6) "General or special employer":

      (i) "General employer" includes but is not limited to temporary help companies and

employee leasing companies and means a person who for consideration and as the regular course

of its business supplies an employee with or without vehicle to another person.

      (ii) "Special employer" means a person who contracts for services with a general

employer for the use of an employee, a vehicle, or both.

      (iii) Whenever there is a general employer and special employer wherein the general

employer supplies to the special employer an employee and the general employer pays or is

obligated to pay the wages or salaries of the supplied employee, then, notwithstanding the fact

that direction and control is in the special employer and not the general employer, the general

employer, if it is subject to the provisions of the Workers' Compensation Act or has accepted that

Act, shall be deemed to be the employer as set forth in subdivision (5) of this section and both the

general and special employer shall be the employer for purposes of sections 28-29-17 and 28-29-

18.

      (iv) Effective January 1, 2003, whenever a general employer enters into a contract or

arrangement with a special employer to supply an employee or employees for work, the special

employer shall require written documentation evidencing that the general employer carries

workers' compensation insurance with no indebtedness for its employees for the term of the

contract or arrangement. In the event that the special employer fails to obtain the written

documentation from the general employer, the special employer is deemed to be the employer

pursuant to the provisions of this section.

      (7) (i) "Injury" means and refers to personal injury to an employee arising out of and in

the course of his or her employment, connected and referable to the employment.

      (ii) An injury to an employee while voluntarily participating in a private, group, or

employer-sponsored carpool, vanpool, commuter bus service, or other rideshare program, having

as its sole purpose the mass transportation of employees to and from work shall not be deemed to

have arisen out of and in the course of employment. Nothing in the foregoing provision shall be

held to deny benefits under chapters 29 -- 38 and chapter 47 of this title to employees such as

drivers, mechanics, and others who receive remuneration for their participation in the rideshare

program. Provided, that the foregoing provision shall not bar the right of an employee to recover

against an employer and/or driver for tortious misconduct.

      (8) "Maximum medical improvement" means a point in time when any medically

determinable physical or mental impairment as a result of injury has become stable and when no

further treatment is reasonably expected to materially improve the condition. Neither the need for

future medical maintenance nor the possibility of improvement or deterioration resulting from the

passage of time and not from the ordinary course of the disabling condition, nor the continuation

of a pre-existing condition precludes a finding of maximum medical improvement. A finding of

maximum medical improvement by the workers' compensation court may be reviewed only

where it is established that an employee's condition has substantially deteriorated or improved.

      (9) "Physician" means medical doctor, surgeon, dentist, licensed psychologist,

chiropractor, osteopath, podiatrist, or optometrist, as the case may be.

      (10) "Suitable alternative employment" means employment or an actual offer of

employment which the employee is physically able to perform and will not exacerbate the

employee's health condition and which bears a reasonable relationship to the employee's

qualifications, background, education, and training. The employee's age alone shall not be

considered in determining the suitableness of the alternative employment.

      (11) "Independent contractor" means a person who has filed a notice of designation as

independent contractor with the director pursuant to section 28-29-17.1 or as otherwise found by

the workers' compensation court.

     28-29-17. Waiver of common law rights -- Notice of claim of common law right. --

An employee or corporate officer of an employer or manager of a limited liability company

subject to or who has elected to become subject to the provisions of chapters 29 -- 38 of this title

as provided in section 28-29-8 shall be held to have waived his or her right of action at common

law to recover damages for personal injuries if he or she has not given his or her employer at the

time of the contract of hire or appointment notice in writing that he or she claims that right and

within ten (10) days after that has filed a copy of the notice with the director, or, if the contract of

hire or appointment was made before the employer became subject to or elected to become

subject to the provisions of those chapters, if the employee or corporate officer or manager of a

limited liability company shall not have given the notice and filed it with the director within ten

(10) days after the filing by the employer who is subject to or who has elected to become subject

to the provisions of those chapters of the written statement as provided. That waiver shall

continue in force for the term of one year, and after that, without further act on his or her part, for

successive terms of one year each, unless the employee or corporate officer or manager of a

limited liability company, at least sixty (60) days prior to the expiration of the first or any

succeeding year files with the director a notice in writing to the effect that he or she desires to

claim his or her right of action at common law and within ten (10) days thereafter gives notice of

this to his or her employer.

     28-29-19. Waiver of claim of common law rights. -- (a) Any employee, or corporate

officer or manager of a limited liability company, or the parent or guardian of any minor

employee, who has given notice to the employer that he or she claimed his or her right of action

at common law may waive that claim by filing a notice in writing with the director and the

employer or his or her agent which shall take effect five (5) days after the filing with the director.

      (b) Any person who is appointed a corporate officer between January 1, 1999 and

December 31, 2001 and was not previously an employee of the corporation may elect to become

subject to chapters 29 -- 38 of this title upon filing a notice in writing with the director which

notice takes effect five (5) days after the filing of his or her notice.

     SECTION 2. Section 28-33-3 of the General Laws in Chapter 28-33 entitled "Workers'

Compensation -- Benefits" is hereby repealed.

     28-33-3. Contingent attorneys' fees. -- Contingent fees of attorneys for services under

chapters 29 -- 38 of this title shall be subject to the approval of the workers' compensation court.

     SECTION 3. Sections 28-33-17.3, 28-33-18.3, 28-33-25 and 28-33-25.1 of the General

Laws in Chapter 28-33 entitled "Workers' Compensation -- Benefits" are hereby amended to read

as follows:

     28-33-17.3. Fraud and abuse. -- (a) (1) The workers' compensation court is authorized

and directed to impose sanctions and penalties necessary to maintain the integrity of and to

maintain the high standards of professional conduct in the workers' compensation system. All

pleadings related to proceedings under chapters 29 -- 38 of this title shall be considered an

attestation by counsel that valid grounds exist for the position taken and that the pleading is not

interposed for delay.

      (2) If any judge determines that any proceedings have been brought, prosecuted, or

defended by an employer, insurer, or their counsel without reasonable grounds, then:

      (i) The whole cost of the proceedings shall be assessed upon the employer, insurer, or

counsel, whoever is responsible; and

      (ii) If a subsequent order requires that additional compensation be paid, a penalty of

double the amount of retroactive benefits ordered shall be paid to the employee and the penalty

shall not be included in any formula utilized to establish premium rates for workers'

compensation insurance.

      (3) If any judge determines that any proceedings have been brought or defended by an

employee or his or her counsel without reasonable grounds, the whole cost of the proceedings

shall be assessed against the employee or counsel, whoever is responsible.

      (4) The court shall determine whether an action or defense is frivolous or conduct giving

rise to the action or defense was unreasonable. Where the amount at issue is less than the actual

attorneys' fees of the parties combined, the court shall exercise particular vigilance. Nothing in

this subsection, however, is intended to discourage prompt payment in full of all amounts

required to be paid.

      (5) The appropriate body with professional disciplinary authority over the attorney shall

be notified of the action.

      (b) (1) It is unlawful to do any of the following:

      (i) Make or cause to be made any knowingly false or fraudulent material statement or

material representation for the purpose of obtaining or denying any compensation;

      (ii) Present or cause to be presented any knowingly false or fraudulent written or oral

material statement in support of, or in opposition to, any claim for compensation or petition

regarding the continuation, termination, or modification of benefits;

      (iii) Knowingly assist, aid and abet, solicit, or conspire with any person who engages in

an unlawful act under this section;

      (iv) Make or cause to be made any knowingly false or fraudulent statements with regard

to entitlement to benefits with the intent to discourage an injured worker from claiming benefits

or pursuing a claim;

      (v) Willfully misrepresent or fail to disclose any material fact in order to obtain workers'

compensation insurance at less than the proper rate for the insurance including, but not limited to,

intentionally misleading or failing to disclose information to an insurer regarding the appropriate

rate classification of an employee;

      (vi) Willfully fail to provide a lower rate adjustment favorable to an employer as

required by an approved experience rating plan or regulations promulgated by the insurance

commissioners;

      (vii) Willfully fail to report or provide false or misleading information regarding

ownership changes as required by an approved experience rating plan or regulations promulgated

by the insurance commissioner; or

      (viii) Knowingly assist, aid and abet, solicit or conspire to coerce an employee to

willfully misrepresent an employee's status as a president, one vice president, secretary and/or

treasurer of a corporation or as a member of a limited liability company or as a partner in a

general partnership, limited partnership or a limited liability partnership or as an independent

contractor for the purpose of avoiding the inclusion of that or other employees in a workers'

compensation insurance application, renewal or both.

      (2) For the purposes of this section, "Statement" includes, but is not limited to, any

endorsement of a benefit check, application for insurance coverage, oral or written statement,

proof of injury, bill for services, diagnosis, prescription, hospital or provider records, x-rays, test

results, or other documentation offered as proof of, or in the absence of, a loss, injury, or expense.

      (3) If it is determined that any person concealed or knowingly failed to disclose that

which is required by law to be revealed, knowingly gave or used perjured testimony or false

evidence, knowingly made a false statement of fact, participated in the creation or presentation of

evidence which he or she knows to be false, or otherwise engaged in conduct in violation of

subdivision (1) of this subsection, that person shall be subject in criminal proceedings to a fine

and/or penalty not exceeding fifty thousand dollars ($50,000), or double the value of the fraud,

whichever is greater, or by imprisonment up to five (5) years in state prison or both.

      (4) There shall be a general amnesty until July 1, 1992 for any person receiving

compensation under chapters 29 -- 38 of this title, to the extent compensation has been voluntarily

reduced or relinquished by the employee prior to that date.

      (c) The director of labor and training shall establish a form, in consultation with the

attorney general, to be sent to all workers who are presently receiving benefits and those for

whom first reports of injury are filed in the future which shall give the employee notice that the

endorsement of a benefit check sent pursuant to section 28-35-39 is the employee's affirmation

that he or she is qualified to receive benefits under the Workers' Compensation Act. The insurers

and self-insured employers are directed to send the form to all workers receiving benefits.

      (d) Any employer, or in any case where the employer is a corporation, the president, vice

president, secretary, and treasurer of the corporation, or in any case where the employer is a

limited liability company, the managers, or in any case where the employer is a general

partnership, a limited partnership or a limited liability partnership, the partners, that is found to

have violated this section or section 28-36-15, shall be guilty of a felony for failure to secure and

maintain compensation, and upon conviction, shall be subject to imprisonment of up to two (2)

years, a fine not exceeding ten thousand dollars ($10,000), or both. In any case where the

employer is a corporation, the president, vice president, secretary, and treasurer of the

corporation, shall be severally liable for the fine or subject to imprisonment. ,or both. In any case

where the employer is a limited liability company, the managers shall be severally liable for the

fine or subject to imprisonment, or both. In any case where the employer is a partnership, or a

general partnership, or a limited partnership or a limited liability partnership, the partners shall be

severally liable for the fine or subject to imprisonment, or both.

     28-33-18.3. Continuation of benefits -- Partial incapacity. -- (a) (1) For all injuries

occurring on or after September 1, 1990, in those cases where the employee has received a notice

of intention to terminate partial incapacity benefits pursuant to section 28-33-18, the employee or

his or her duly authorized representative may file with the workers' compensation court a petition

for continuation of benefits on forms prescribed by the workers' compensation court. In any

proceeding before the workers' compensation court on a petition for continuation of partial

incapacity benefits, where the employee demonstrates by a fair preponderance of the evidence

that his or her partial incapacity poses a material hindrance to obtaining employment suitable to

his or her limitation, partial incapacity benefits shall continue. For injuries on and after July 1,

2001 2003, "material hindrance" is defined to include only compensable injuries causing a greater

than sixty-five percent (65%) degree of functional impairment and/or disability. Any period of

time for which the employee has received benefits for total incapacity shall not be included in the

calculation of the three hundred and twelve (312) week period.

      (2) The provisions of this subsection apply to all injuries from Sept. 1, 1990, to July 1,

2001 2003.

      (b) (1) Where any employee's incapacity is partial and has extended for more than three

hundred and twelve (312) weeks and the employee has proved an entitlement to continued

benefits under subsection (a) of this section, payments made to these incapacitated employees

shall be increased annually on the tenth (10th) day of May thereafter so long as the employee

remains incapacitated. The increase shall be by an amount equal to the total percentage increase

in the annual consumer price index, United States city average for urban wage earners and

clerical workers, as formulated and computed by the bureau of labor statistics of the United States

Department of Labor for the period of March 1 to February 28 each year.

      (2) "Index" as used in this section refers to the consumer price index, United States city

average for urban wage earners and clerical workers, as that index was formulated and computed

by the Bureau of Labor Statistics of the United States Department of Labor.

      (3) The annual increase shall be based upon the percentage increase, if any, in the

consumer price index for the month of a given year, over the index for February, the previous

year. Thereafter, increases shall be made on May 10 annually, based upon the percentage

increase, if any, in the consumer price index for the period of March 1 to February 28.

      (4) The computations in this section shall be made by the director of labor and training

and promulgated to insurers and employers making payments required by this section. Increases

shall be paid by insurers and employers without further order of the court. If payment payable

under this section is not mailed within fourteen (14) days after the employer or insurer has been

notified by publication in a newspaper of general circulation in the state it becomes due, there

shall be added to the unpaid payment an amount equal to twenty percent (20%) of it, to be paid at

the same time as but in addition to the payment.

      (5) This section applies only to payment of weekly indemnity benefits to employees as

described in subdivision (1) of this subsection, and does not apply to specific compensation

payments for loss of use or disfigurement or payment of dependency benefits or any other

benefits payable under the Workers' Compensation Act.

      (c) No petitions for commutation shall be allowed or entertained in those cases where an

employee is receiving benefits pursuant to this section.

     28-33-25. Settlement for lump sum or structured-type payment. -- (a) (1) In case

payments have continued for not less than six (6) months, the parties may petition the workers'

compensation court for an order approving a settlement of the future liability for a lump sum or

structured-type periodic payment over a period of time.

      (2) (i) In considering the petition, a judge shall give due weight to the fact that it is the

policy of this chapter that compensation be paid weekly.

      (ii) The petition shall be considered by a judge of the court and may be granted where it

is shown to the satisfaction of the court that the payment of a lump sum or structured-type

payment in lieu of future weekly payments will be in the best interest of all parties including the

employee, employer, insurance carrier, and where applicable, the workers' compensation

administrative fund and the center for Medicare and Medicaid services (CMS) as their interests

may appear. Any proposed settlement that exceeds one hundred four (104) weeks of

compensation for partial incapacity may be rejected by the chief judge in his or her discretion.

The employee shall be entitled to a finding amortizing the net settlement over his or her life

expectancy.

      (iii) In determining whether the settlement is in the best interest of all parties, the judge

may refer the employee for a rehabilitation evaluation pursuant to the provisions of section 28-33-

41.

      (3) Upon payment, the employer and insurer shall be entitled to a duly executed release,

which fully and finally absolves and discharges the employer and insurer from any and all

liability arising out of the injury.

      (b) The provisions of this section shall be strictly construed and all hearings for

commutation shall be conducted in open session.

      (c) No case may be settled to a lump sum or structured-type periodic payment while the

Rhode Island temporary disability insurance fund and/or the department of social and

rehabilitative services has a claim for payments made under chapter 41 of this title unless

agreement is made to pay any claim from the lump sum or structured-type periodic payments.

      (d) Attorneys' fees shall be fixed by the court, but in no event shall any attorney's fee for

representing an employee in connection with a petition brought pursuant to this section exceed a

sum equal to fifteen twenty percent (15%) (20%) of the lump sum or fifteen twenty percent (15%)

(20%) of the structured-type periodic payment reduced to present day value.

      (e) No case shall be settled for a lump sum or structured-type periodic payment unless it

is placed upon the record in open session, that the employer, if insured, has been advised by the

insurer or its agent of the potential effect of the settlement on its workers' compensation premium,

and has the opportunity to appear and state its disapproval of the settlement.

      (f) Settlements must be paid within fourteen (14) days of entry of an order to pay or the

date(s) upon which payment(s) is/are due pursuant to a court order, and a penalty of one hundred

dollars ($100) shall be assessed for every day payment is delinquent.

     28-33-25.1. Settlement of disputed cases. -- Notwithstanding the provisions of sections

28-33-25 and 28-33-26, in cases where liability of the employer for payment of workers'

compensation benefits has not been finally established, the parties may submit a settlement

proposal to the workers' compensation court for approval. If, upon consideration, a judge of the

workers' compensation court deems the settlement proposal to be in the best interest of the

parties, including the employee, employer, insurance carrier, and where applicable the center for

Medicare and Medicaid services (CMS) as their interests may apply, the judge may approve the

settlement. Payment by the employer or insurer shall not be deemed to be the payment of

workers' compensation benefits, but shall be considered a compromise payment of a disputed

claim. The settlement and payment pursuant to it shall not be subject to liens set forth in section

28-33-27(b). Upon payment, the employer and insurer shall be entitled to a duly executed release

that fully and finally absolves and discharges the employer and insurer from any and all liability

arising out of the claimed injury.

     SECTION 4. Section 28-36-15 of the General Laws in Chapter 28-36 entitled "Workers'

Compensation - Insurance" is hereby amended to read as follows:

     28-36-15. Penalty for failure to secure compensation -- Personal liability of

corporate officers. -- (a) Any employer required to secure the payment of compensation under

chapters 29 -- 38 of this title who knowingly fails to secure that compensation shall be guilty of a

felony and shall be subject to imprisonment for up to two (2) years. In addition to the foregoing,

the employer shall be subject to a civil penalty punished by a fine of not less than five hundred

dollars ($500) and not more than one thousand dollars ($1,000) for each day of noncompliance

with the requirements of this title. The director shall institute any and all reasonable measures to

comprehensively monitor, investigate, and otherwise discover all employer noncompliance with

this section and shall establish rules and regulations governing these measures. Each day shall

constitute a separate and distinct offense for calculation of the penalty. Where that employer is a

corporation or a limited liability company or general or limited partnership, the president, vice

president, secretary, and treasurer of the corporation, or member or manager of a limited liability

company or general or limited partner in a registered limited liability partnership shall be also

severally liable for the fine, penalty or imprisonment as provided in this section for the failure of

that corporation to secure the payment of compensation. The president, vice president, secretary,

and treasurer or member or manager or general or limited partner shall be severally personally

liable, jointly with the corporation or company or partnership, for any compensation or other

benefit which may accrue under those chapters in respect to any injury which may occur to any

employee of that corporation while it fails to secure the payment of compensation as required by

those chapters. All criminal actions for any violation of this section shall be prosecuted by the

attorney general. The attorney general shall prosecute actions to enforce the payment of penalties

and fines at the request of the director. The workers' compensation court shall have jurisdiction

over all civil actions filed pursuant to this section.

      (b) (1) As soon as practicable after the director receives notice of noncompliance under

this section, the director shall determine whether cause exists for the imposition of a civil penalty.

Unless the director determines that the noncompliance was unintentional or the result of a clerical

error and subject to the administrative proceedings under subsection (c) of this section, the

director shall commence an action in the workers' compensation court to assess a civil penalty

against the employer as set forth in subsection (a) of this section and shall refer the matter to the

attorney general for prosecution of criminal charges.

      (2) The director shall bring a civil action in the workers' compensation court to collect all

payments and penalties ordered and not paid. All civil actions for any violations of this chapter or

of any of the rules or regulations promulgated by the director, or for the collection of payments in

accordance with section 28-37-13, 28-33-17.3(a)(2) or 28-33-17.3(a)(3) or civil penalties under

this chapter, shall be prosecuted by any qualified member of the Rhode Island bar whom the

director may designate, in the name of the director, and the director is exempt from giving surety

for costs in any proceedings.

      (c) In the case of unintentional noncompliance or noncompliance resulting from clerical

error where the uninsured period is less than one year from the date of discovery and there were

no employees injured during the uninsured period and the employer has not been subject to any

other findings of noncompliance with these chapters, the director shall assess an administrative

penalty of not less than the estimated annual workers' compensation insurance premium for that

employer and not more than triple that amount. Any party has the right to appeal the orders of the

director. Such appeal shall be to the workers' compensation court in the first instance and

thereafter from the workers' compensation court to the Rhode Island supreme court in accordance

with section 28-35-30.

      (d) The director shall collect all payments under this chapter under the rules and

regulations that may be set forth by the director. All fines collected pursuant to this section shall

be deposited to a restricted receipt account to be administered by the director of the department of

labor and training in his or her sole discretion to carry out chapters 29 -- 38 of this title.

      (e) (1) In that the operation of a commercial enterprise without the required workers'

compensation insurance is a crime and creates a clear and present danger of irreparable harm to

employees who are injured while the employer is uninsured, the director shall suspend the

operation of the business immediately and until workers' compensation and employers' liability

insurance is secured consistent with these chapters. The director shall lift the suspension upon

receipt of satisfactory proof of insurance and evidence sufficient to satisfy the director that the

employer is in full compliance with these chapters. Any party has the right to appeal the

suspension to the workers' compensation court where the matter shall proceed pursuant to the

workers' compensation court rules of procedure.

      (2) In the event that the employer shall fail to comply with the director's order of

suspension, the director may apply immediately to the workers' compensation court for an order

directing the employer to comply with the director's prior orders.

      (3) Actions filed with the workers' compensation court pursuant to this section shall not

be subject to a pretrial conference in accordance with section 28-35-20 but shall be assigned

consistent with the workers' compensation court rules of procedure.

      (f) Interest shall accrue on unpaid penalties during the pendency of any appeal at the rate

per annum provided in section 9-21-10.

     SECTION 5. Section 42-35-18 of the General Laws in Chapter 42-35 entitled

"Administrative Procedures" is hereby amended to read as follows:

     42-35-18. Effective date of chapter -- Scope of application and exemptions. -- (a) This

chapter shall take effect upon January 1, 1964, and thereupon all acts and parts of acts

inconsistent herewith shall stand repealed, provided, however, that except as to proceedings

pending on June 30, 1963, this chapter shall apply to all agencies and agency proceedings not

expressly exempted.

      (b) None of the provisions of this chapter shall apply to the following sections and

chapters:

      (1) Section 16-32-10 (University of Rhode Island);

      (2) Chapter 41 of title 16 (New England Higher Education Compact);

      (3) Section 16-33-6 (Rhode Island College);

      (4) Chapter 16 of title 23 (Health Facilities Construction Act);

      (5) Chapter 8 of title 20 (Atlantic States Marine Fisheries Compact);

      (6) Chapter 29 of title 28 (Workers' Compensation -- General Provisions);

      (7) Chapter 30 of title 28 (Workers' Compensation Commission);

      (8) Chapter 31 of title 28 (Workers' Compensation -- State and Municipal Employees);

      (9) Chapter 32 of title 28 (Workers' Compensation -- Report of Injuries);

      (10) Chapter 33 of title 28 (Workers' Compensation -- Benefits);

      (11) Chapter 34 of title 28 (Workers' Compensation -- Occupational Diseases);

      (12) Chapter 36 of title 28 (Workers' Compensation -- Insurance);

      (13) Chapter 35 of title 28 (Workers' Compensation -- Procedure);

      (14) Chapter 37 of title 28 (Workers' Compensation -- Second Injury Indemnity Fund);

      (15) Chapter 38 of title 28 (Dr. John E. Donley Rehabilitation Center);

      (16) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387, section 1.]

      (17) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387, section 1.]

      (18) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387, section 1.]

      (19) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387, section 1.]

      (20) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387, section 1.]

      (21) [Deleted by P.L. 2002, ch. 316, section 1 and by P.L. 2002, ch. 387, section 1.]

      (22) Chapter 7 of title 17 (State Board of Elections);

      (23) Chapter 16 of title 8 (Judicial Tenure and Discipline);

      (24) Chapter 61 of title 42 (State Lottery);

      (25) Chapter 59 of title 16 (Board of Governors for Higher Education);

      (26) Chapter 60 of title 16 (Board of Regents for Elementary and Secondary Education);

      (27) Chapter 24.4 of title 45 (Special Development Districts);

      (28) Chapter 12 of title 35 (The University of Rhode Island Research Corporation).

      (c) The provisions of sections 42-35-9, 42-35-10, 42-35-11, 42-35-12 and 42-35-13 shall

not apply to:

      (1) Any and all acts, decisions, findings, or determinations by the board of review of the

department of labor and training or the director of the department of labor and training or his, her,

its or their duly authorized agents and to any and all procedures or hearings before and by the

director or board of review of the department of labor and training or his or her agents under the

provisions of chapters 39 -- 44 of title 28.

      (2) Section 28-5-17 (Conciliation of charges of unlawful practices).

      (3) Chapter 8 of title 13 (Parole).

      (4) Any and all acts, decisions, findings or determinations by the administrator of the

division of motor vehicles or his or her duly authorized agent and to any and all procedures or

hearings before and by said administrator or his or her said agent under the provisions of chapters

10, 11, 31 to 33, inclusive, of title 31.

      (5) Procedures of the board of examiners of hoisting engineers under chapter 26 of title

28.

     (6) Any and all acts, decisions, findings, or determinations made under authority from the

provisions of chapters 29 -- 38 of title 28, concerning workers' compensation administration,

procedure and benefits.

     SECTION 6. This act shall take effect upon passage.

     

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LC02329/SUB A

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