H*3744 Session 106 (1985-1986)
H*3744(Rat #0493, Act #0443 of 1986) General Bill, By
House Labor, Commerce and Industry
Similar(H 3648)
A Bill to amend Sections 38-59-140 through 38-59-190, Code of Laws of South
Carolina, 1976, relating to Patients' Compensation Fund for the benefit of
licensed health care providers, so as to change the method by which providers
may participate in the Fund; require that in addition to annual membership
fees, the Board may make deficit assessments when insufficient funds are
available to meet the Fund's liability, to provide that membership in the Fund
is contingent upon the Fund member making timely payments of all member fees
and deficit assessments; delete the requirement that the State Treasurer must
invest and reinvest the Fund in short-term interest bearing investments;
delete the requirement that reports of audits of the Fund be prepared in
accordance with general accepted accounting principles, to provide a procedure
by which health care providers may withdraw from participation in the Fund;
delete the provision that a provider participating in the Fund is liable for
losses up to the amount of its coverage and to authorize the provider to
receive an appropriate reduction of its assessment of the Fund; and delete the
requirement that any person affected by any ruling, action, or decision by or
on behalf of the Fund may appeal to the Commission within thirty days and to
add the provision that any ruling, action, or decision by or on behalf of the
Fund is subject to review as provided in Section 1-23-380.
04/02/86 House Introduced, read first time, placed on calendar
without reference HJ-2122
04/09/86 House Read second time HJ-2258
04/10/86 House Read third time and sent to Senate HJ-2314
04/22/86 Senate Introduced and read first time SJ-2202
04/22/86 Senate Referred to Committee on Judiciary SJ-2203
04/24/86 Senate Recalled from Committee on Judiciary SJ-2317
04/24/86 Senate Referred to Committee on Banking and Insurance SJ-231
05/01/86 Senate Recalled from Committee on Banking and Insurance
SJ-2427
05/08/86 Senate Read second time SJ-2551
05/13/86 Senate Read third time and enrolled SJ-2592
05/21/86 Ratified R 493
05/26/86 Signed By Governor
05/26/86 Effective date 05/26/86
05/26/86 Act No. 443
06/06/86 Copies available
(A443, R493, H3744)
AN ACT TO AMEND SECTIONS 38-59-140 THROUGH 38-59-190, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO PATIENTS' COMPENSATION FUND FOR THE BENEFIT OF
LICENSED HEALTH CARE PROVIDERS, SO AS TO CHANGE THE METHOD BY WHICH PROVIDERS MAY
PARTICIPATE IN THE FUND; REQUIRE THAT IN ADDITION TO ANNUAL MEMBERSHIP FEES, THE
BOARD MAY MAKE DEFICIT ASSESSMENTS WHEN INSUFFICIENT FUNDS ARE AVAILABLE TO MEET
THE FUND'S LIABILITY, TO PROVIDE THAT MEMBERSHIP IN THE FUND IS CONTINGENT UPON
THE FUND MEMBER MAKING TIMELY PAYMENTS OF ALL MEMBER FEES AND DEFICIT
ASSESSMENTS; DELETE THE REQUIREMENT THAT THE STATE TREASURER MUST INVEST AND
REINVEST THE FUND IN SHORT-TERM INTEREST BEARING INVESTMENTS; DELETE THE
REQUIREMENT THAT REPORTS OF AUDITS OF THE FUND BE PREPARED IN ACCORDANCE WITH
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, TO PROVIDE A PROCEDURE BY WHICH HEALTH
CARE PROVIDERS MAY WITHDRAW FROM PARTICIPATION IN THE FUND; DELETE THE PROVISION
THAT A PROVIDER PARTICIPATING IN THE FUND IS LIABLE FOR LOSSES UP TO THE AMOUNT
OF ITS COVERAGE AND TO AUTHORIZE THE PROVIDER TO RECEIVE AN APPROPRIATE REDUCTION
OF ITS ASSESSMENT OF THE FUND; AND DELETE THE REQUIREMENT THAT ANY PERSON
AFFECTED BY ANY RULING, ACTION, OR DECISION BY OR ON BEHALF OF THE FUND MAY
APPEAL TO THE COMMISSION WITHIN THIRTY DAYS AND TO ADD THE PROVISION THAT ANY
RULING, ACTION, OR DECISION BY OR ON BEHALF OF THE FUND IS SUBJECT TO REVIEW AS
PROVIDED IN SECTION 1-23-380 OF THE 1976 CODE.
Be it enacted by the General Assembly of the State of South Carolina:
Fees and assessments
SECTION 1. Section 38-59-140 of the 1976 Code is amended to read:
"Section 38-59-140. All South Carolina licensed health care providers may
participate in the fund and maintain participation by remitting to the Board the
appropriate membership fees and deficit assessments as are required by the Board
on or before the providers' membership anniversary date."
Fees
SECTION 2. Section 38-59-150 of the 1976 Code is amended to read:
"Section 38-59-150. All fund members shall pay annual membership fees set
by the board. In addition to the annual membership fees, the board may make
deficit assessments upon the determination by the board that insufficient money
is available to meet the fund's liabilities.
Membership in the fund is contingent upon the fund member making timely payment
of all membership fees and deficit assessments.
Self-insureds are eligible for membership in the fund upon compliance with the
requirements of the board of governors and shall pay the same membership fees and
deficit assessments as the members."
Fund held in trust
SECTION 3. Section 38-59-160 of the 1976 Code is amended to read:
"Section 38-59-160. The fund, and any income from it, must be held in
trust, deposited in the office of the State Treasurer, and kept in a segregated
account entitled 'Patients' Compensation Fund', invested and reinvested by the
State Treasurer in the same manner as provided by law for the investment of other
state funds in interest-bearing investments and shall not become a part of the
general fund of the State. All expenses of collecting, protecting, and
administering the fund must be paid from the fund."
Records to be audited
SECTION 4. Subsections (3) and (4) of Section 38-59-170 of the 1976 Code are
amended to read:
"(3) On or before December thirty-first of each year the State Auditor
shall audit the records of the fund and shall furnish an audited financial report
to all fund participants, the Department of Insurance, the Legislative Audit
Council, and the Budget and Control Board.
(4) All health care providers participating in the fund may withdraw from
participation upon written notice of thirty days prior to the date of withdrawal.
However, the providers remain subject to any assessment pertaining to any year
in which such provider participated in the fund. A member who withdraws during
any year is entitled to a pro rata return of the annual membership fee."
Defense of claim
SECTION 5. Subsection (2) of Section 38-59-180 of the 1976 Code is amended to
read:
"(2) It is the responsibility of the insurer providing insurance for a
provider who is also covered by the fund or for the self-insured provider covered
by the fund to provide an adequate defense on any claim filed that potentially
affects the fund with respect to such insurance contracts or self-insured's
liability. The insurers or self-insured providers shall act in a fiduciary
relationship with respect to any claim affecting the fund. No settlement
exceeding one hundred thousand dollars per incident, or three hundred thousand
dollars in the aggregate for one year, may be agreed to unless approved by the
Board."
Subsection deleted
SECTION 6. Subsection (5) of Section 38-59-180 of the 1976 Code is amended by
deleting it in its entirety.
Judicial review
SECTION 7. Section 38-59-190 of the 1976 Code is amended to read:
"Section 38-59-190. Any ruling, action, or decision by or on behalf of
the fund is subject to judicial review as provided in Section 1-23-380 of the
1976 Code."
Time effective
SECTION 8. This act shall take effect upon approval by the Governor. |