Amendment ASA1-AB686

AB686-ASA1,13,11 b. "Forest product" includes Christmas trees, firewood, maple syrup, and any other product derived from wood or wood fiber that is manufactured with woodworking equipment, such as saws, planers, drills, chippers, lumber dry kilns, sanders, glue presses, nailers, notchers, shapers, lathes, molders, and other similar finishing equipment.

AB686-ASA1,13,17 2. The department, under rules promulgated by the department, may permit 2 or more employers engaged in the forest industry that have combined assets of $1,000,000 or more to enter into an agreement to pool their liabilities under this chapter for the purpose of obtaining an exemption from the duty under par. (a) to insure payment of those liabilities, if those employers agree to assume joint and several liability for the payment of those liabilities.

AB686-ASA1,14,8 3. The department may grant a written order of exemption to a group of employers described in subd. 2. that shows its financial ability to pay the amount of compensation, agrees to report faithfully all compensable injuries, and agrees to comply with this chapter and the rules of the department. The department may condition the granting of an exemption upon the group's furnishing of satisfactory security to guarantee payment of all claims under compensation. The department may require that bonds or other personal guarantees be enforceable against sureties in the same manner as an award may be enforced. The department may from time to time require proof of financial ability of the self-insured group to pay compensation. Any exemption shall be void if the application for it contains a financial statement that is false in any material respect. An employer that is a member of a group that files an application containing a false financial statement remains subject to par. (a). The department may promulgate rules establishing an amount to be charged to an initial applicant for exemption under this subdivision and an annual amount to be charged to self-insured groups that have been exempted under this subdivision.

AB686-ASA1, s. 26 Section 26. 102.28 (2) (c) of the statutes is amended to read:

AB686-ASA1,15,8 102.28 (2) (c) Revocation of exemption. The department, after seeking the advice of the self-insurers council, may revoke an exemption granted to an a self-insured employer under par. (b) or to a self-insured group under par. (bm) 3., upon giving the self-insured employer or self-insured group 10 days' written notice, if the department finds that the employer's financial condition of the self-insured employer or self-insured group is inadequate to pay its employees' claims for compensation, that the self-insured employer or self-insured group has received an excessive number of claims for compensation, or that the self-insured employer or self-insured group has failed to discharge faithfully its obligations according to the agreement contained in the application for exemption. The self-insured employer or self-insured group may, within 10 days after receipt of the notice of revocation, request in writing a review of the revocation by the secretary or the secretary's designee and the secretary or the secretary's designee shall review the revocation within 30 days after receipt of the request for review. If the self-insured employer or self-insured group is aggrieved by the determination of the secretary or the secretary's designee, the self-insured employer or self-insured group may, within 10 days after receipt of notice of that determination, request a hearing under s. 102.17. If the secretary or the secretary's designee determines that the employer's exemption of the self-insured employer or of the self-insured group should be revoked, the self-insured employer, or each employer that is a member of the self-insured group, shall obtain insurance coverage as required under par. (a) immediately upon receipt of notice of that determination and, notwithstanding the pendency of proceedings under ss. 102.17 to 102.25, shall keep that coverage in force until another exemption under par. (b) or (bm) 3. is granted.

AB686-ASA1, s. 27 Section 27. 102.28 (2) (d) of the statutes is amended to read:

AB686-ASA1,15,15 102.28 (2) (d) Effect of insuring with unauthorized insurer. An A self-insured employer who or self-insured group that procures an exemption under par. (b) or (bm) 3. and thereafter enters into any agreement for excess insurance coverage with an insurer not authorized to do business in this state shall report that agreement to the department immediately. The placing of such coverage shall not by itself be grounds for revocation of the exemption.

AB686-ASA1, s. 28 Section 28. 102.28 (7) (title) of the statutes is amended to read:

AB686-ASA1,15,17 102.28 (7) (title) Insolvent self-insured employers; assessments.

AB686-ASA1, s. 29 Section 29. 102.28 (7) (a) of the statutes is amended to read:

AB686-ASA1,16,8 102.28 (7) (a) If an employer who is currently or was formerly exempted by written order of the department under sub. (2) (b) is unable to pay an award, judgment is rendered in accordance with s. 102.20 against that employer, and execution is levied and returned unsatisfied in whole or in part, payments for the employer's liability shall be made from the fund established under sub. (8). If a currently or formerly exempted employer files for bankruptcy and not less than 60 days after that filing the department has reason to believe that compensation payments due are not being paid, the department in its discretion may make payment for the employer's liability from the fund established under sub. (8). The secretary of administration shall proceed to recover such those payments from the employer or the employer's receiver or trustee in bankruptcy, and may commence an action or proceeding or file a claim therefor for those payments. The attorney general shall appear on behalf of the secretary of administration in any such action or proceeding. All moneys recovered in any such action or proceeding shall be paid into the fund established under sub. (8).

AB686-ASA1, s. 30 Section 30. 102.28 (7) (b) of the statutes is amended to read:

AB686-ASA1,17,2 102.28 (7) (b) Each self-insured employer that is exempted by written order of the department under sub. (2) (b) shall pay into the fund established by sub. (8) a sum equal to that assessed against each of the other such exempt self-insured employers upon the issuance of an initial order. The order shall provide for a sum sufficient to secure estimated payments of the insolvent exempt self-insured employer due for the period up to the date of the order and for one year following the date of the order and to pay the estimated cost of insurance carrier or insurance service organization services under par. (c). Payments ordered to be made to the fund shall be paid to the department within 30 days. If additional moneys are required, further assessments shall be made based on orders of the department with assessment prorated on the basis of the gross payroll for this state of the exempt self-insured employer, reported to the department for the previous calendar year for unemployment insurance purposes under ch. 108. If the exempt self-insured employer is not covered under ch. 108, then the department shall determine the comparable gross payroll for the exempt self-insured employer. If payment of any assessment made under this subsection is not made within 30 days of the order of the department, the attorney general may appear on behalf of the state to collect the assessment.

AB686-ASA1, s. 31 Section 31. 102.28 (9) of the statutes is created to read:

AB686-ASA1,17,18 102.28 (9) Insolvent self-insured groups; assessments. (a) If a group of employers that is or was exempted by written order of the department under sub. (2) (bm) 3. is unable to pay an award, judgment is rendered in accordance with s. 102.20 against that group, and execution is levied and returned unsatisfied in whole or in part, payments for the group's liability shall be made from the fund established under sub. (10). If a currently or formerly exempted group of employers files for bankruptcy and not less than 60 days after that filing the department has reason to believe that compensation payments due are not being paid, the department in its discretion may make payment for the group's liability from the fund established under sub. (10). The secretary of administration shall proceed to recover those payments from the group, the members of the group, or the group's receiver or trustee in bankruptcy, and may commence an action or proceeding or file a claim for those payments. The attorney general shall appear on behalf of the secretary of administration in any such action or proceeding. All moneys recovered in any such action or proceeding shall be paid into the fund established under sub. (10).

AB686-ASA1,18,11 (b) Each self-insured group that is exempted by written order of the department under sub. (2) (bm) 3. shall pay into the fund established under sub. (10) a sum equal to that assessed against each of the other such exempt self-insured groups upon the issuance of an initial order. The order shall provide for a sum sufficient to secure estimated payments of the insolvent exempt self-insured group due for the period up to the date of the order and for one year following the date of the order and to pay the estimated cost of insurance carrier or insurance service organization services under par. (c). Payments ordered to be made to the fund shall be paid to the department within 30 days. If additional moneys are required, further assessments shall be made based on orders of the department with assessment prorated on the basis of the gross payroll for this state of each employer that is a member of the exempt self-insured group, reported to the department for the previous calendar year for unemployment insurance purposes under ch. 108. If an employer that is a member of the exempt self-insured is not covered under ch. 108, then the department shall determine the comparable gross payroll for the employer. If payment of any assessment made under this subsection is not made within 30 days of the order of the department, the attorney general may appear on behalf of the state to collect the assessment.

AB686-ASA1,18,14 (c) The department may retain an insurance carrier or insurance service organization to process, investigate, and pay valid claims. The charge for such service shall be paid from the fund as provided under par. (b).

AB686-ASA1, s. 32 Section 32. 102.28 (10) of the statutes is created to read:

AB686-ASA1,18,18 102.28 (10) Self-insured groups liability fund. The moneys paid into the state treasury under sub. (9), together with all accrued interest, shall constitute the "self-insured groups liability fund."

AB686-ASA1, s. 33 Section 33. 102.33 (2) (b) (intro.) of the statutes is amended to read:

AB686-ASA1,19,6 102.33 (2) (b) (intro.) Notwithstanding par. (a), a record maintained by the department that reveals the identity of an employee who claims worker's compensation benefits, the nature of the employee's claimed injury, the employee's past or present medical condition, the extent of the employee's disability, the amount, type or duration of benefits paid to the employee or any financial information provided to the department by a self-insured employer or self-insured group or by an applicant for exemption under s. 102.28 (2) (b) or (bm) 3. is confidential and not open to public inspection or copying under s. 19.35 (1). The department may deny a request made under s. 19.35 (1) or, subject to s. 102.17 (2m) and (2s), refuse to honor a subpoena issued by an attorney of record in a civil or criminal action or special proceeding to inspect and copy a record that is confidential under this paragraph, unless one of the following applies:

AB686-ASA1, s. 34 Section 34. 102.33 (2) (b) 3. of the statutes is amended to read:

AB686-ASA1,19,16 102.33 (2) (b) 3. The record that is requested contains financial information provided by a self-insured employer or self-insured group or by an applicant for exemption under s. 102.28 (2) (b) or (bm) 3. and the requester is the self-insured employer or self-insured group or applicant for exemption or an attorney or authorized agent of the self-insured employer, self-insured group, or applicant for exemption. An attorney or authorized agent of the self-insured employer or self-insured group or of the applicant for exemption shall provide a written authorization for inspection and copying from the self-insured employer or self-insured group or applicant for exemption if requested by the department.

AB686-ASA1, s. 35 Section 35. 102.75 (1) of the statutes is amended to read:

AB686-ASA1,20,9 102.75 (1) The department shall assess upon and collect from each licensed worker's compensation insurance carrier and, from each self-insured employer exempted under s. 102.28 (2) (b) by special order or by rule, and from each self-insured group exempted under s. 102.28 (2) (bm) 3. by special rule or order, the proportion of total costs and expenses incurred by the council on worker's compensation for travel and research and by the department and the commission in the administration of this chapter for the current fiscal year, plus any deficiencies in collections and anticipated costs from the previous fiscal year, that the total indemnity paid or payable under this chapter by each such carrier and, exempt self-insured employer, and exempt self-insured group in worker's compensation cases initially closed during the preceding calendar year, other than for increased, double, or treble compensation, bore to the total indemnity paid in cases closed the previous calendar year under this chapter by all carriers and, exempt employer self-insured employers, and exempt self-insured groups other than for increased, double, or treble compensation. The council on worker's compensation and the commission shall annually certify any costs and expenses for worker's compensation activities to the department at such time as the secretary requires.

AB686-ASA1, s. 36 Section 36. 102.75 (2) of the statutes is amended to read:

AB686-ASA1,20,17 102.75 (2) The department shall require that payments for costs and expenses for each fiscal year shall be made on such dates as the department prescribes by each licensed worker's compensation insurance carrier and, by each self-insured employer exempted under s. 102.28 (2) (b), and by each self-insured group exempted under s. 102.28 (2) (bm) 3. Each such payment shall be a sum equal to a proportionate share of the annual costs and expenses assessed upon each carrier and, self-insured employer, and self-insured group as estimated by the department.

AB686-ASA1, s. 37 Section 37. 102.75 (4) of the statutes is amended to read:

AB686-ASA1,21,2 102.75 (4) From the appropriation under s. 20.445 (1) (ha), the department shall allocate the amounts that it collects in application fees from employers applying for exemption under s. 102.28 (2) (b) and from groups of employers applying for exemption under s. 102.28 (2) (bm) 3. and the annual amount that it collects from self-insured employers that have been exempted under s. 102.28 (2) (b) and from self-insured groups that have been exempted under s. 102.28 (2) (bm) 3. to fund the activities of the department under s. 102.28 (2) (b), (bm), and (c).

AB686-ASA1,21,3 (End)