AB547: Bill Text

LRB-3192/2

GMM:jlg:kjf

1999 - 2000 LEGISLATURE

1999 Assembly BILL 547

October 20, 1999 - Introduced by Representatives Vrakas and Turner, cosponsored by Senators Baumgart and Zien. Referred to Committee on Labor and Employment.

AB547,1,5 An Act to repeal 102.01 (2) (b); to amend 15.227 (4), 15.227 (11), 102.05 (1), 102.07 (7) (a), 102.07 (7) (b), 102.07 (12m), 102.077 (3), 102.16 (2) (d), 102.18 (3), 102.29 (8), 102.475 (title), 102.475 (1), 102.475 (8) (b) and 102.87 (9); and to create 102.475 (8) (am) and 102.475 (8) (dm) of the statutes; relating to: various changes to the worker's compensation law.

Analysis by the Legislative Reference Bureau

This bill makes various changes relating to worker's compensation, as administered by the department of workforce development (DWD), as follows:

Withdrawal from coverage

Under current law, every person who usually employs three or more employes and every person who usually employs less than three employes, but who has paid wages of $500 or more in any calendar quarter for services performed in this state, is subject to the worker's compensation law. An employer who has not usually employed three employes and who has not paid wages of at least $500 in this state in any calendar quarter in a calendar year, however, may withdraw from coverage under the worker's compensation law. This bill restricts withdrawal from worker's compensation coverage for an employer who has not usually employed three employes only if the employer has not paid wages of at least $500 in this state in every calendar quarter in a calendar year.

Coverage of diving team members

Under current law, a member of a volunteer fire department or legally organized rescue squad is considered to be an employe of that department or squad for purposes of worker's compensation coverage except that, if that department or squad has not insured its liability for worker's compensation to its employes, the county or municipality within which that department or squad is organized is liable for that worker's compensation. Current law also permits DWD to issue an order permitting the county within which a volunteer fire department, legally organized rescue squad or ambulance service provider is organized to assume full liability for worker's compensation for all volunteer members of that department, squad or provider.

This bill provides that a member of a legally organized diving team is considered to be an employe of that team for purposes of worker's compensation coverage except that, if that team has not insured its liability for worker's compensation to its employes, the county or municipality within which that team is organized is liable for that worker's compensation. The bill also permits DWD to issue an order permitting the county within which a legally organized diving team is organized to assume full liability for worker's compensation for all volunteer members of that team.

Under current law, if a law enforcement officer, correctional officer, fire fighter, rescue squad member, national guard member, state defense force member or emergency management employe or volunteer dies as a result of an injury sustained while performing services growing out of and incidental to his or her employment or volunteer activity or dies while totally and permanently disabled as a result of such an injury, DWD must pay death benefits of not less than $50,000 to the person's dependents.

This bill requires DWD to pay death benefits of not less than $50,000 to the dependents of a diving team member who dies as a result of an injury sustained while performing services growing out of and incidental to his or her employment or volunteer activity or who dies while totally and permanently disabled as a result of such an injury.

Extension of expiring provisions

Currently, a student of a public school or a private school, while he or she is engaged in performing services as part of a school work training, work experience or work study program, who is not on the payroll of an employer that is providing the work training or work experience or who is not otherwise receiving compensation on which a worker's compensation carrier could assess premiums on that employer, is an employe of a school district or private school that elects to name the student as an employe for purposes of worker's compensation coverage. Also, under current law, a student who is named as an employe of a school district or private school for purposes of worker's compensation coverage and who makes a claim for worker's compensation against his or her school district or private school may not also make a claim for worker's compensation or maintain an action in tort against the employer that provided the work training or work experience from which the claim arose. Currently, these provisions do not apply to injuries occurring after December 31, 1999. This bill extends that expiration date to December 31, 2001.

Under current law, DWD may determine the reasonableness of the fees charged for health services that are provided for an injured employe for whom worker's compensation is paid. Currently, DWD's authority to determine the reasonableness of a health service fee expires on July 1, 2000. This bill extends that expiration date to July 1, 2002.

Council on worker's compensation and self-insurers council

Under current law, there is created in DWD a council on worker's compensation whose duties include advising DWD in carrying out the purposes of the worker's compensation law, submitting recommendations relating to amendments to the worker's compensation law to each regular session of the legislature and reporting its views on pending legislation relating to worker's compensation to the proper legislative committees. Currently, the members of the council on worker's compensation are appointed by the labor and industry review commission (LIRC), and a designated employe of DWD or LIRC may serve as chairperson of the council. This bill requires the secretary of workforce development, rather than LIRC, to appoint the members of the council on worker's compensation. The bill also eliminates the option of designating an employe of LIRC to serve as chairperson of the council.

Under current law, there is created in DWD a self-insurers council whose duties include advising DWD on matters relating to employers that self-insure their worker's compensation liability rather than purchase insurance to cover that liability, including any proposed revocation by DWD of an employer's self-insured status. Currently, the members of the self-insurers council are appointed by LIRC. This bill requires the secretary of workforce development to appoint the members of the self-insurers council.

Deputy administrator of worker's compensation division of DWD

Under current law, DWD must have on its staff such examiners as are necessary to hear and decide disputed claims for worker's compensation and to assist in the administration of the worker's compensation law. An examiner may make findings and orders, and approve, review, set aside, modify or confirm stipulations of settlement and compromises of claims for worker's compensation. Current law defines "examiner" to include the deputy administrator of the worker's compensation division of DWD. This bill eliminates the inclusion of the deputy administrator of that division as an "examiner" under the worker's compensation law.

Petitions for review of a worker's compensation decision

Under current law, LIRC must dismiss a petition for review of a DWD hearing examiner's decision awarding or denying worker's compensation that is not received by DWD or LIRC within 21 days after DWD mailed a copy of the examiner's findings and order to the petitioner's last-known address, unless the petition shows probable good cause that the reason for failure to timely file the petition was beyond the petitioner's control. This bill requires LIRC to dismiss such a petition that is not timely filed unless the petitioner shows probable good cause that the reason for failure to timely file the petition was beyond the petitioner's control.

Uninsured employers fund

Under current law, DWD administers an uninsured employers fund, from which DWD pays to an injured employe of an uninsured employer compensation that is equal to the amount of worker's compensation that the uninsured employer owes to the injured employe. This bill corrects an incorrect reference in current law to the "insured employers fund" by changing that reference to the "uninsured employers fund".

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB547, s. 1 Section 1. 15.227 (4) of the statutes is amended to read:

AB547,4,10 15.227 (4) Council on worker's compensation. There is created in the department of workforce development a council on worker's compensation appointed by the labor and industry review commission secretary of workforce development to consist of a member or designated employe of the department of workforce development or the labor and industry review commission as chairperson, 5 representatives of employers and 5 representatives of employes. The commission secretary of workforce development shall also appoint 3 representatives of insurers authorized to do a worker's compensation insurance business in this state as nonvoting members of the council.

AB547, s. 2 Section 2. 15.227 (11) of the statutes is amended to read:

AB547,4,15 15.227 (11) Self-insurers council. There is created in the department of workforce development a self-insurers council consisting of 5 members appointed by the labor and industry review commission secretary of workforce development for 3-year terms.

AB547, s. 3 Section 3. 102.01 (2) (b) of the statutes is repealed.

AB547, s. 4 Section 4. 102.05 (1) of the statutes is amended to read:

AB547,5,12 102.05 (1) An employer who has had no employe at any time within a continuous period of 2 years shall be deemed to have effected withdrawal, which shall be effective on the last day of such period. An employer who has not usually employed 3 employes and who has not paid wages of at least $500 for employment in this state in any every calendar quarter in a calendar year may file a withdrawal notice with the department, which withdrawal shall take effect 30 days after the date of such filing or at such later date as is specified in the notice. If an employer who is subject to this chapter only because the employer elected to become subject to this chapter under sub. (2) cancels or terminates his or her contract for the insurance of compensation under this chapter, that employer is deemed to have effected withdrawal, which shall be effective on the day after the contract is canceled or terminated.

AB547, s. 5 Section 5. 102.07 (7) (a) of the statutes is amended to read:

AB547,5,24 102.07 (7) (a) Every member of any a volunteer fire company or fire department organized under ch. 213 or any, a legally organized rescue squad shall be deemed or a legally organized diving team is considered to be an employe of such that company, department or, squad or team. Every such member of a company, department, squad or team described in this paragraph, while serving as an auxiliary police officer at an emergency, shall also be deemed is also considered to be an employe of said that company, department or, squad or team. If such a company, department or, squad or team described in this paragraph has not insured its liability for compensation to its employes, the municipality or county within which such that company, department or, squad or team was organized shall be liable for such that compensation.

AB547, s. 6 Section 6. 102.07 (7) (b) of the statutes is amended to read:

AB547,6,6 102.07 (7) (b) The department may issue an order under s. 102.31 (1) (b) permitting the county within which a volunteer fire company or fire department organized under ch. 213, a legally organized rescue squad or, an ambulance service provider, as defined in s. 146.50 (1) (c), or a legally organized diving team is organized to assume full liability for the compensation provided under this chapter of all volunteer members of that company, department, squad or , provider or team.

AB547, s. 7 Section 7. 102.07 (12m) of the statutes is amended to read:

AB547,6,15 102.07 (12m) A student of a public school, as described in s. 115.01 (1), or a private school, as defined in s. 115.001 (3r), while he or she is engaged in performing services as part of a school work training, work experience or work study program, and who is not on the payroll of an employer that is providing the work training or work experience or who is not otherwise receiving compensation on which a worker's compensation carrier could assess premiums on that employer, is an employe of a school district or private school that elects under s. 102.077 to name the student as its employe. This subsection does not apply after December 31, 1999 2001.

AB547, s. 8 Section 8. 102.077 (3) of the statutes is amended to read:

AB547,6,17 102.077 (3) This section does not apply after December 31, 1999 2001.

AB547, s. 9 Section 9. 102.16 (2) (d) of the statutes is amended to read:

AB547,7,8 102.16 (2) (d) For fee disputes that are submitted to the department before July 1, 2000 2002, the department shall analyze the information provided to the department under par. (c) according to the criteria provided in this paragraph to determine the reasonableness of the disputed fee. The department shall determine that a disputed fee is reasonable and order that the disputed fee be paid if that fee is at or below the mean fee for the health service procedure for which the disputed fee was charged, plus 1.5 standard deviations from that mean, as shown by data from a data base that is certified by the department under par. (h). The department shall determine that a disputed fee is unreasonable and order that a reasonable fee be paid if the disputed fee is above the mean fee for the health service procedure for which the disputed fee was charged, plus 1.5 standard deviations from that mean, as shown by data from a data base that is certified by the department under par. (h), unless the health service provider proves to the satisfaction of the department that a higher fee is justified because the service provided in the disputed case was more difficult or more complicated to provide than in the usual case.

AB547, s. 10 Section 10. 102.18 (3) of the statutes is amended to read:

AB547,8,2 102.18 (3) A party in interest may petition the commission for review of an examiner's decision awarding or denying compensation if the department or commission receives the petition within 21 days after the department mailed a copy of the examiner's findings and order to the party's last-known address. The commission shall dismiss a petition which is not timely filed unless the petition petitioner shows probable good cause that the reason for failure to timely file was beyond the petitioner's control. If no petition is filed within 21 days from the date that a copy of the findings or order of the examiner is mailed to the last-known address of the parties in interest, the findings or order shall be considered final unless set aside, reversed or modified by the examiner within that time. If the findings or order are set aside by the examiner the status shall be the same as prior to the findings or order set aside. If the findings or order are reversed or modified by the examiner the time for filing a petition commences with the date that notice of reversal or modification is mailed to the last-known address of the parties in interest. The commission shall either affirm, reverse, set aside or modify the findings or order in whole or in part, or direct the taking of additional evidence. This action shall be based on a review of the evidence submitted.

AB547, s. 11 Section 11. 102.29 (8) of the statutes is amended to read:

AB547,8,10 102.29 (8) No student of a public school, as described in s. 115.01 (1), or a private school, as defined in s. 115.001 (3r), who is named under s. 102.077 as an employe of the school district or private school for purposes of this chapter and who makes a claim for compensation under this chapter may make a claim or maintain an action in tort against the employer that provided the work training or work experience from which the claim arose. This subsection does not apply to injuries occurring after December 31, 1999 2001.