Current Status Bill Number:3802 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19950314 Primary Sponsor:A. Young All Sponsors:A. Young, R. Smith, Bailey, Keegan, Meacham, Mason, Inabinett, J. Brown, Hutson, Vaughn, Hines, Clyburn, Gamble, Byrd, Jennings, Witherspoon and Moody-Lawrence Drafted Document Number:bbm\9891jm.95 Companion Bill Number:723 Residing Body:House Current Committee:Labor, Commerce and Industry Committee 26 HLCI Subject:Workers' compensation self-insurer
Body Date Action Description Com Leg Involved
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House 19950314 Introduced, read first time, 26 HLCI
referred to Committee
View additional legislative information at the LPITS web site.
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.