S 0372 General Bill, By Martin
 A BILL TO AMEND SECTION 42-7-10 OF THE 1976 CODE, RELATING TO THE STATE
 ACCIDENT FUND, TO PROVIDE THAT THE STATE TREASURER SHALL INVEST THE TRUST FUND
 IN THE SAME MANNER AND IN THE SAME TYPE AND GRADE OF SECURITIES AS IS THE
 ACCUMULATED ACCOUNT OF THE SOUTH CAROLINA RETIREMENT SYSTEM; TO AMEND SECTION
 42-7-50 OF THE 1976 CODE, RELATING TO PARTICIPATION IN THE STATE ACCIDENT
 FUND, TO PROVIDE THAT AN APPLICANT FOR COVERAGE UNDER THIS SECTION MUST
 PRESENT ITS RECENT LOSS HISTORY, UPON WHICH ITS PREMIUM CHARGES MUST BE BASED,
 AND THAT THE STATE ACCIDENT FUND MAY DENY OR REFUSE TO RENEW COVERAGE UNDER
 CERTAIN CIRCUMSTANCES; AND TO ADD SECTION 42-7-85 TO PROVIDE THAT EMPLOYERS
 INSURED UNDER THIS ARTICLE MUST MAKE REASONABLE EFFORTS TO PROVIDE OR ARRANGE
 FOR LIMITED DUTY WORK.

   02/18/03  Senate Introduced and read first time SJ-4
   02/18/03  Senate Referred to Committee on Judiciary SJ-4
   04/23/03  Senate Committee report: Favorable with amendment
                     Judiciary SJ-19
   04/24/03  Senate Amended SJ-59
   04/24/03  Senate Read second time SJ-59
   04/29/03  Senate Read third time and sent to House SJ-47
   04/30/03  House  Introduced and read first time HJ-13
   04/30/03  House  Referred to Committee on Ways and Means HJ-13

Indicates Matter Stricken

Indicates New Matter

COMMITTEE AMENDMENT ADOPTED

April 24, 2003

S. 372

S. Printed 4/24/03--S.

Read the first time February 18, 2003.

TO AMEND SECTION 42-7-10 OF THE 1976 CODE, RELATING TO THE STATE ACCIDENT FUND, TO PROVIDE THAT THE STATE TREASURER SHALL INVEST THE TRUST FUND IN THE SAME MANNER AND IN THE SAME TYPE AND GRADE OF SECURITIES AS IS THE ACCUMULATED ACCOUNT OF THE SOUTH CAROLINA RETIREMENT SYSTEM; TO AMEND SECTION 42-7-50 OF THE 1976 CODE, RELATING TO PARTICIPATION IN THE STATE ACCIDENT FUND, TO PROVIDE THAT AN APPLICANT FOR COVERAGE UNDER THIS SECTION MUST PRESENT ITS RECENT LOSS HISTORY, UPON WHICH ITS PREMIUM CHARGES MUST BE BASED, AND THAT THE STATE ACCIDENT FUND MAY DENY OR REFUSE TO RENEW COVERAGE UNDER CERTAIN CIRCUMSTANCES; AND TO ADD SECTION 42-7-85 TO PROVIDE THAT EMPLOYERS INSURED UNDER THIS ARTICLE MUST MAKE REASONABLE EFFORTS TO PROVIDE OR ARRANGE FOR LIMITED DUTY WORK.

Amend Title To Conform

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 42-7-10 of the 1976 Code is amended to read:

"Section 42-7-10.    (A) There is established as a separate agency of state government a separate fund to be known as the State Accident Fund, hereinafter referred to as the `fund' or `state fund' in this article. This fund consists of annual premium charges, recoveries from the Second Injury Fund, recoveries by subrogation and, subject to subsection (B) of this section, of all income or revenue derived from investing these funds. Receipts for the credit of the fund and expenditures from the fund must be handled in the manner provided by law governing all other state funds except that the State Treasurer shall invest the state fund in the same manner and in the same type and grade of securities as is the accumulated account of the South Carolina Retirement System.

(B)    One-third of the investment income generated in Fiscal Year 1990-91 and two-thirds of the income generated in Fiscal Year 1991-92 must be credited to the state fund in those years respectively. Thereafter all All such income must be credited to the state fund except that the State Treasurer may charge the state fund, and credit to the general fund, the customary investment management fee. Unless the balance of the state fund should exceed the actuarial estimate of ultimate claim liability in three consecutive years, no funds of the state fund may be applied in any state appropriations bill for any purpose other than for funding workers' compensation claim obligations and operating expenses as provided in Section 42-7-90."

SECTION    2.    Section 42-7-50 of the 1976 Code is amended to read:

"Section 42-7-50.    Any county or municipality in the State or any agency or institution thereof shall have the option of participating under the provisions of this article but no county, municipality, agency, or institution thereof shall be covered by the workers' compensation insurance provided in this article until payment of the annual charge provided in this Title title shall have been made to the fund, nor shall any county, municipality, agency, or institution thereof be covered by this insurance after the lapse of the period for which the annual charge has been paid. The director shall notify each county, municipality, agency, or institution thereof at least thirty days before the expiration date of its coverage in order that the county, municipality, agency, or institution may keep its insurance in force continuously. An applicant for coverage under this article must present its recent loss history, upon which its premium charges must be based. The state fund may, upon proper notice, cancel or refuse to renew coverage under this article if the applicant or insured refuses to provide loss history information or to cooperate with state fund recommendations regarding safety and health, drug-free workplace, loss prevention, or return-to-work programs."

SECTION    3.    Chapter 7, Title 42 of the 1976 Code is amended by adding:

"Section 42-7-85.    Employers insured under this article must make reasonable efforts to provide or arrange for limited duty work consistent with limitations specified by the treating physician. When such limited work cannot be provided within a worker's regular workplace but can be provided by another public funded entity, the employer may arrange for such limited duty work and assign its employee to such public funded work, whether or not such other agency will itself pay for such limited work. A worker so assigned shall, while performing the assigned tasks, be deemed for all purposes to be an employee of and performing official duties for the assigning employer during such arrangement and such arrangements shall constitute providing limited duty for purposes of Section 42-9-260(B)(5)."

SECTION    4.    This act takes effect upon approval by the Governor.