Senate Bill No. 290
Introduced By keating, simon, burnett, benedict, harp, gage, cocchiarella, mood, crismore, shea, glaser, keenan, menahan, sliter, squires, wilson, emerson, christiaens, tash, harper, kitzenberg, aklestad, pavlovich, thomas, grinde, van valkenburg, ellis, feland, mahlum
A Bill for an Act entitled: "An Act generally revising the workers' compensation administration fund; eliminating
assessment funding to the department of commerce AND PROVIDING SUBSTITUTE FUNDING FOR THE BOILER
INSPECTION PROGRAM; clarifying those fees that are deposited to the administration fund; revising the method of
assessment and the assessment base; revising the payment and collection requirements; PROVIDING FOR FORMATION
OF A WORKERS' COMPENSATION REGULATION ADVISORY COUNCIL; amending section SECTIONS
39-71-201 AND 50-74-219, MCA; and providing effective dates, retroactive applicability dates, and a termination date."
Be it enacted by the Legislature of the State of Montana:
Section 1. Section 39-71-201, MCA, is amended to read:
"39-71-201. Administration fund. (1) A workers' compensation administration fund is established out of which all costs
of administering the Workers' Compensation and Occupational Disease Acts and the various statutory occupational safety
acts the department and the boiler inspections the department of commerce must administer, with the exception of the
subsequent injury fund, as provided for in 39-71-907, and the uninsured employers' fund, are to be paid upon lawful
appropriation. The following money collected by the department must be deposited shall collect and deposit in the state
treasury to the credit of the workers' compensation administrative fund and must be used for the administrative expenses of
the department and for the administrative expenses of the department of commerce for the purposes of 50-74-101:
(a) all fees and penalties provided in 39-71-205 and, 39-71-223, 39-71-304, 39-71-307, 39-71-308, 39-71-315, 39-71-316,
39-71-401(6), 39-71-2204, 39-71-2205, and 39-71-2337; and
(b) all fees paid for inspection of boilers as required by law;
(c) all fees taxes FEES paid from by an assessment on each plan No. 1 employer, plan No. 2 insurer, and plan No. 3, the
state fund. The assessments must be levied against the preceding calendar year's gross annual payroll of the plan No. 1
employers and the gross annual direct premiums collected in Montana on the policies of the plan No. 2 insurers, insuring
employers covered under the chapter, during the preceding calendar year . However, an assessment of the plan No. 1
employer or plan No. 2 insurer may not be less than $200 $500. If at any time during the fiscal year a plan No. 1 employer
is granted permission to self-insure or a plan No. 2 insurer is authorized to insure employers under this chapter, that plan
No. 1 employer or plan No. 2 insurer is subject to assessment. The assessments must be sufficient to fund the direct costs
identified to the three plans and an equitable portion of the indirect costs based on the ratio of the preceding fiscal year's
indirect costs distributed to the plans, using proper accounting and cost allocation procedures. Plan No. 3 must be assessed
an amount sufficient to fund the direct costs and an equitable portion of the indirect costs of regulating plan No. 3. Other
sources of revenue, including unexpended funds from the preceding fiscal year, must be used to reduce the costs before
levying the assessments.
(2) The administration fund must be debited with expenses incurred by the department in the general administration of the provisions of this chapter, including the salaries of its members, officers, and employees and the travel expenses of the members, officers, and employees, as provided for in 2-18-501 through 2-18-503, as amended, incurred while on the business of the department either within or without the state.
(3) Disbursements from the administration money must be made after being approved by the department upon a claim
therefor."
Section 2. Section 39-71-201, MCA, is amended to read:
"39-71-201. Administration fund. (1) A workers' compensation administration fund is established out of which all costs
of administering the Workers' Compensation and Occupational Disease Acts and the various statutory occupational safety
acts the department and the boiler inspections the department of commerce must administer, with the exception of the
subsequent injury fund, as provided for in 39-71-907, and the uninsured employers' fund, are to be paid upon lawful
appropriation. The following money collected by the department must be deposited shall collect and deposit in the state
treasury to the credit of the workers' compensation administrative fund and must be used for the administrative expenses of
the department and for the administrative expenses of the department of commerce for the purposes of 50-74-101:
(a) all fees and penalties provided in 39-71-205 and, 39-71-223, 39-71-304, 39-71-307, 39-71-308, 39-71-315, 39-71-316,
39-71-401(6), 39-71-2204, 39-71-2205, and 39-71-2337; and
(b) all fees paid for inspection of boilers as required by law;
(c)(b) all fees taxes FEES paid from by an assessment on each plan No. 1 employer, plan No. 2 insurer, and plan No. 3, the
state fund. The assessments must be levied against the preceding calendar year's gross annual payroll of the plan No. 1
employers and the gross annual direct premiums collected in Montana on the policies of the plan No. 2 insurers, insuring
employers covered under the chapter, during the preceding calendar year. However, an must be 2.15% 2.6% of the
following benefits paid during the preceding calendar year for injuries covered by the Workers' Compensation Act and the
Occupational Disease Act without regard to the application of any deductible whether the employer or the insurer pays the
losses:
(i) total compensation benefits paid; and
(ii) except for medical benefits in excess of $200,000 per occurrence that are exempt from assessment, total medical benefits paid for medical treatment rendered to an injured worker, including hospital treatment and prescription drugs.
(2) Each plan No. 1 employer, plan No. 2 insurer subject to the provisions of this section, and plan No. 3, the state fund, shall file annually on March 31 in the form and containing the information required by the department a report of paid losses pursuant to subsection (1)(b).
(3) An assessment of the plan No. 1 employer or plan No. 2 insurer may not be less than $200 $500. If at any time during
the fiscal year a plan No. 1 employer is granted permission to self-insure or a plan No. 2 insurer is authorized to insure
employers under this chapter, that plan No. 1 employer or plan No. 2 insurer is subject to an initial assessment equal to the
minimum assessment against plan No. 1 employers and plan No. 2 insurers.
(4) Payment of the assessment required by this section must be submitted by the employer under plan No. 1, plan No. 2, or plan No. 3 in:
(a) one installment made on or before June 30 JULY 1; or
(b) two equal installments made on or before June 30 JULY 1 and December 31 of each year. If an employer or insurer
fails to pay the assessment required under this section, the department may impose a fine of $100 plus interest on the
delinquent amount at the annual interest rate of 12%. The assessments must be sufficient to fund the direct costs identified
to the three plans and an equitable portion of the indirect costs based on the ratio of the preceding fiscal year's indirect costs
distributed to the plans, using proper accounting and cost allocation procedures. Plan No. 3 must be assessed an amount
sufficient to fund the direct costs and an equitable portion of the indirect costs of regulating plan No. 3. Other sources of
revenue, including unexpended funds from the preceding fiscal year, must be used to reduce the costs before levying the
assessments.
(2)(5) The administration fund must be debited with expenses incurred by the department in the general administration of
the provisions of this chapter, including the salaries of its members, officers, and employees and the travel expenses of the
members, officers, and employees, as provided for in 2-18-501 through 2-18-503, as amended, incurred while on the
business of the department either within or without the state.
(3)(6) Disbursements from the administration money must be made after being approved by the department upon claim
therefor for disbursement."
SECTION 3. SECTION 50-74-219, MCA, IS AMENDED TO READ:
"50-74-219. Fee for inspection. (1) Whenever a department inspector inspects a boiler, a fee must be charged and collected by the department prior to issuance of an inspection certificate in accordance with the following schedule:
(1)(a) operating certificate, $20 $26;
(2)(b) internal inspection, $40 $75;
(3)(c) external inspection:
(a)(i) hot water heating and supply, $15 $30;
(b)(ii) steam heating, $20 $40; and
(c)(iii) power boiler, $30 $55; and
(4)(d) special inspection, $50 per hour plus expenses.
(2) Fees collected under this section must be deposited in a department state special revenue account for administration of the boiler inspection program."
NEW SECTION. SECTION 4. WORKERS' COMPENSATION REGULATION ADVISORY COUNCIL. (1) THERE IS CREATED A WORKERS' COMPENSATION REGULATION ADVISORY COUNCIL PURSUANT TO 2-15-122 TO REVIEW THE STATE'S WORKERS' COMPENSATION REGULATORY SYSTEM AND MAKE RECOMMENDATIONS TO THE GOVERNOR REGARDING:
(A) APPROPRIATE REGULATORY GOALS;
(B) NECESSARY REGULATORY ACTIVITIES TO MEET IDENTIFIED GOALS; AND
(C) APPROPRIATE AND EQUITABLE FUNDING LEVELS AND FUNDING MECHANISMS TO MEET IDENTIFIED GOALS.
(2) THE COUNCIL MUST COMPRISE A BROAD SPECTRUM OF PARTIES WHO HAVE A DIRECT INTEREST IN WORKERS' COMPENSATION ISSUES AND MUST INCLUDE BUT IS NOT LIMITED TO REPRESENTATIVES OF:
(A) WORKERS' COMPENSATION INSURERS;
(B) INSURED AND SELF-INSURED EMPLOYERS;
(C) ORGANIZED LABOR;
(D) THE MONTANA CHAMBER OF COMMERCE;
(E) THE MONTANA HOSPITAL ASSOCIATION;
(F) THE MONTANA MEDICAL ASSOCIATION;
(G) THE MEDIA;
(H)(G) THE DEPARTMENT OF LABOR AND INDUSTRY;
(I)(H) THE MONTANA SENATE;
(J)(I) THE MONTANA HOUSE OF REPRESENTATIVES;
(K)(J) THE PUBLIC.
(3) THE COUNCIL SHALL SEEK BROAD INPUT FOR THEIR REVIEW, INCLUDING BUT NOT LIMITED TO INFORMATION REGARDING MONTANA'S CURRENT REGULATIONS, NATIONAL BENCHMARKS, AND OTHER STATE REGULATORY SCHEMES.
NEW SECTION. SECTION 5. REQUIRED REPORT. FOR PURPOSES OF FEES ASSESSED ON OR AFTER JULY 1, 1999, EACH PLAN NO. 1 EMPLOYER, PLAN NO. 2 INSURER, AND PLAN NO. 3, THE STATE FUND, SHALL FILE ON MARCH 31, 1999, IN THE FORM AND CONTAINING THE INFORMATION REQUIRED BY THE DEPARTMENT OF LABOR AND INDUSTRY A REPORT OF PAID LOSSES.
NEW SECTION. SECTION 6. CODIFICATION INSTRUCTION. [SECTION 4] IS INTENDED TO BE CODIFIED AS AN INTEGRAL PART OF TITLE 2, CHAPTER 15, AND THE PROVISIONS OF TITLE 2, CHAPTER 15, APPLY TO [SECTION 4].
NEW SECTION. Section 7. Effective dates -- retroactive applicability. (1) [Sections 1, and 4 THROUGH 6, AND 8
and this section] are effective on passage and approval and [section 1] applies retroactively, within the meaning of 1-2-109,
to taxes collected on or after June 30, 1997.
(2) [SECTION 1] APPLIES TO FEES ASSESSED ON INSURERS ON OR BEFORE JUNE 30, 1999.
(2)(3) [Section 2] is effective July 1, 1999, and applies retroactively, within the meaning of 1-2-109, to taxes collected on
or after June 30, 1998 JULY 1, 1999, AND APPLIES TO FEES ASSESSED ON INSURERS ON OR AFTER JULY 1,
1999.
(4) [SECTION 3] IS EFFECTIVE JULY 1, 1997.
NEW SECTION. Section 8. Termination. [Section SECTIONS 1 AND 5] terminates June 30, 1998 1999.
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