H 3802 Session 111 (1995-1996)
H 3802 General Bill, By Young-Brickell, Bailey, J. Brown, A.W. Byrd, Clyburn,
Gamble, J. Hines, H.G. Hutson, Inabinett, Jennings, Keegan, Mason, Meacham,
Moody-Lawrence, R. Smith, Vaughn and Witherspoon
Similar(S 723)
A Bill to amend Section 42-7-200, as amended, Code of Laws of South Carolina,
1976, relating to the South Carolina Workers' Compensation Uninsured
Employers' Fund, so as to provide, among other things, that this Fund also
ensures the payment of Workers' Compensation benefits to the employees of
companies which were previously qualified as self-insurers if security posted
by the individual self-insurer proves inadequate to pay existing claims, and
that this Fund similarly ensures the payment of Workers' Compensation benefits
to the employees of companies which were previously participants in group
self-insurance funds if both the posted security of the group and the joint
and several liability of the members of the group at the time of the loss
prove inadequate to pay existing claims.
03/14/95 House Introduced and read first time HJ-163
03/14/95 House Referred to Committee on Labor, Commerce and
Industry HJ-164
A BILL
TO AMEND SECTION 42-7-200, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE
SOUTH CAROLINA WORKERS' COMPENSATION
UNINSURED EMPLOYERS' FUND, SO AS TO PROVIDE,
AMONG OTHER THINGS, THAT THIS FUND ALSO ENSURES
THE PAYMENT OF WORKERS' COMPENSATION BENEFITS
TO THE EMPLOYEES OF COMPANIES WHICH WERE
PREVIOUSLY QUALIFIED AS SELF-INSURERS IF SECURITY
POSTED BY THE INDIVIDUAL SELF-INSURER PROVES
INADEQUATE TO PAY EXISTING CLAIMS, AND THAT THIS
FUND SIMILARLY ENSURES THE PAYMENT OF WORKERS'
COMPENSATION BENEFITS TO THE EMPLOYEES OF
COMPANIES WHICH WERE PREVIOUSLY PARTICIPANTS IN
GROUP SELF-INSURANCE FUNDS IF BOTH THE POSTED
SECURITY OF THE GROUP AND THE JOINT AND SEVERAL
LIABILITY OF THE MEMBERS OF THE GROUP AT THE
TIME OF THE LOSS PROVE INADEQUATE TO PAY
EXISTING CLAIMS.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 42-7-200(A) of the 1976 Code, as last
amended by Act 459 of 1994, is further amended to read:
"(A) There is established within the office of the Second
Injury Fund the South Carolina Workers' Compensation Uninsured
Employers' Fund to ensure payment of workers' compensation
benefits to injured employees whose employers have failed to
acquire necessary coverage for employees. This fund also
ensures the payment of workers' compensation benefits to the
employees of companies which were previously qualified as
self-insurers if security posted by the individual self-insurer proves
inadequate to pay existing claims. Similarly, this fund ensures the
payment of workers' compensation benefits to the employees of
companies which were previously participants in group
self-insurance funds if both the posted security of the group and the
joint and several liability of the members of the group at the time
of the loss prove inadequate to pay existing claims. The fund
must be administered by the director of the Second Injury Fund
who shall establish procedures to implement this section.
When an employee makes a claim for benefits pursuant to Title
42 and the State Workers' Compensation Commission determines
that the employer is subject to Title 42 and is operating without
insurance or as an unqualified self-insurer, or as a qualified
self-insurer who has become insolvent, or as a member of a
self-insurance group that has become insolvent, the commission
shall notify the fund of the claim. The fund shall pay or defend
the claim as it considers necessary in accordance with the
provisions of Title 42.
When the fund is notified of a claim, the fund may place a lien
on the assets of the employer, or upon members at the time of
the loss of the self-insurance group of which the employer was a
member, by way of lis pendens or otherwise so as to protect
the fund from payments of costs and benefits. If the fund is
required to incur costs or expenses or to pay benefits, the fund has
a lien against the assets of the employer, or against any member
at the time of the loss of a self-insurance group of which the
employer was a member, to the full extent of all costs,
expenses, and benefits paid and may file notice of the lien with the
clerk of court or register of mesne conveyances of any county in
which the employer or self-insurance group member has
assets in the same manner as the filing of South Carolina tax liens
and with the Secretary of State in the same manner as utilized under
Title 36 (Uniform Commercial Code). Any of the employer's
assets sold or conveyed during the litigation of the claim must be
sold or conveyed subject to the lien.
The fund has all rights of attachment set forth in Section
15-19-10 and has the right to proceed otherwise in the collection of
its lien in the same manner as the Department of Revenue and
Taxation is allowed to enforce a collection of taxes generally
pursuant to Section 12-49-10, et seq. When all benefits due the
claimant, as well as all expenses and costs of litigation, have been
paid, the fund shall file notice of the total of all monies paid with
the clerk of court in any county in which the employer or
self-insurance group member has assets and with the Secretary
of State. This notice constitutes a judgment against the employer
or self-insurance group member and has priority as a first
lien in the same manner as liens of the Department of Revenue and
Taxation, subject only to the lien of the Department of Revenue and
Taxation pursuant to Section 12-49-10, et seq. If the employer
or self-insurance group member files for bankruptcy or
otherwise is placed into receivership, the fund becomes a secured
creditor to the assets of the employer or self-insurance group
member in the same manner as the Department of Revenue and
Taxation has priority for unpaid taxes, subject only to the lien of
the Department of Revenue and Taxation. The fund otherwise has
all rights and remedies afforded the Department of Revenue and
Taxation as set forth in Section 12-54-10, et seq."
SECTION 2. This act takes effect upon approval by the
Governor.
-----XX----- |