Download This Version in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
Indicates Matter Stricken
Indicates New Matter
COMMITTEE REPORT
April 23, 2003
S. 549
Introduced by Senators Land, Martin, J. Verne Smith, Hawkins and McConnell
S. Printed 4/23/03--S.
Read the first time April 2, 2003.
To whom was referred a Bill (S. 549) to amend Section 42-7-310, as amended, Code of Laws of South Carolina, 1976, relating to the establishment of the Second Injury Fund, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
LARRY A. MARTIN for Committee.
EXPLANATION OF IMPACT:
The changes would result in decreased claims cost to the Second Injury Fund, which in turn would decrease assessments charged by the fund to other insurance carriers, including the State Accident Fund.
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTION 42-7-310, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE ESTABLISHMENT OF THE SECOND INJURY FUND, SO AS TO PROHIBIT REIMBURSEMENTS TO EMPLOYERS OR CARRIERS WHICH HAVE DEFAULTED ON THEIR CURRENT ASSESSMENTS UNTIL THE ASSESSMENTS ARE PAID IN FULL; TO AMEND SECTION 42-9-400, AS AMENDED, RELATING TO THE MANNER IN WHICH AN EMPLOYER OR INSURANCE CARRIER SHALL BE REIMBURSED FROM THE SECOND INJURY FUND WHEN DISABILITY RESULTS FROM PREEXISTING IMPAIRMENT AND SUBSEQUENT INJURY, SO AS TO FURTHER PROVIDE FOR WHAT AN EMPLOYER MUST ESTABLISH IN ORDER TO QUALIFY FOR REIMBURSEMENT; AND TO AMEND SECTION 42-9-410, RELATING TO REIMBURSEMENT FROM THE SECOND INJURY FUND FOR AN EMPLOYEE WHO BECOMES TOTALLY AND PERMANENTLY DISABLED IN A SUBSEQUENT INJURY, SO AS TO FURTHER PROVIDE FOR WHAT AN EMPLOYER MUST ESTABLISH IN ORDER TO RECEIVE THESE ADDITIONAL BENEFITS FROM THE SECOND INJURY FUND.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 42-7-310(d)(2) of the 1976 Code, as last amended by Act 364 of 2000, is further amended to read:
"(2) equitable assessments upon each carrier which, as used in this section, includes all insurance carriers, self-insurers, and the State Accident Fund. Each carrier shall make payments to the fund in an amount equal to that proportion of one hundred seventy-five percent of the total disbursement made from the fund during the preceding fiscal year less the amount of net assets in the fund as of June thirtieth of the preceding fiscal year which the normalized premium of each carrier bore to the normalized premium of all carriers during the preceding calendar year. Each insurance carrier, self-insurer, and the State Accident Fund shall make payment based upon workers' compensation normalized premiums during the preceding calendar year. The charge to each insurance carrier is a charge based upon normalized premiums. An employer who has ceased to be a self-insurer shall continue to be liable for any assessments into the fund on account of any benefits paid by him during such calendar year. Any assessment levied or established in accordance with this section constitutes a personal debt of every employer or insurance carrier so assessed and is due and payable to the Second Injury Fund when payment is called for by the fund. In the event of failure to pay any assessment upon the date determined by the fund, the employer or insurance carrier may immediately be assessed a penalty in an amount not exceeding ten percent of the unpaid assessment. If the employer or insurance carrier fails to pay the assessment and penalty within thirty days, they shall be barred from any recovery from the fund on all claims without exception until the assessment and penalty are paid in full. the The director may file a complaint for collection against the employer or insurance carrier in a court of competent jurisdiction for the assessment, penalty, and interest at the legal rate, and the employer/carrier is responsible for attorney's fees and costs. The penalty and interest under this subsection are payable to the Second Injury Fund. At the time of the filing of the complaint, the fund shall also notify the South Carolina Department of Insurance and the South Carolina Workers' Compensation Commission, and these government agencies shall take the appropriate legal and administrative action immediately."
SECTION 2. Section 42-9-400(c) of the 1976 Code is amended to read:
"(c) In order to qualify under this section for reimbursement from the Second Injury Fund, the employer must establish when claim is made for reimbursement thereunder, that the employer had knowledge of the permanent physical impairment at the time that the employee was hired, or at the time the employee was retained in employment after the employer acquired such knowledge. Provided, however, However, the employer may qualify for reimbursement hereunder upon proof that he did not have prior knowledge of the employee's preexisting physical impairment because the existence of such the condition was concealed by the employee or was unknown to the employee."
SECTION 3. Section 42-9-410(d) of the 1976 Code is amended to read:
"(d) In order to receive additional benefits from the Second Injury Fund as permitted by Sections 42-9-150 and 42-9-170, the employer shall establish that he had notice knowledge of the employee's preexisting permanent physical impairment prior to the time of the subsequent injury by accident, unless the employer can establish that the employee had no knowledge of such preexisting impairment he did not have prior knowledge of the employee's preexisting physical impairment because the existence of the condition was concealed by the employee."
SECTION 4. This act takes effect upon approval by the Governor.
This web page was last updated on Thursday, June 25, 2009 at 10:16 A.M.