As Introduced 1
122nd General Assembly 4
Regular Session H. B. No. 363 5
1997-1998 6
REPRESENTATIVES THOMPSON-JOHNSON 8
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A B I L L
To amend sections 121.03, 2317.45, 4121.12, 12
4121.121, 4121.125, and 4123.511 and to enact 14
section 4123.49 of the Revised Code to make 15
appropriations for the Bureau of Workers' 16
Compensation for the biennium beginning July 1, 17
1997, and ending June 30, 1999, and to provide 18
authorization and conditions for the operation of 19
Bureau of Workers' Compensation programs. 20
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 21
Section 1. That sections 121.03, 2317.45, 4121.12, 23
4121.121, 4121.125, and 4123.511 be amended and section 4123.49 25
of the Revised Code be enacted to read as follows:
Sec. 121.03. The following administrative department heads 36
shall be appointed by the governor, with the advice and consent 37
of the senate, and shall hold their offices during the term of 38
the appointing governor, except as provided in division (W) of 40
this section, and are subject to removal at the pleasure of the 41
governor.
(A) The director of budget and management; 43
(B) The director of commerce; 45
(C) The director of transportation; 47
(D) The director of agriculture; 49
(E) The director of human services; 52
(F) Until July 1, 1997, the director of liquor control; 54
(G) The director of public safety; 56
(H) The superintendent of insurance; 58
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(I) The director of development; 60
(J) The tax commissioner; 62
(K) The director of administrative services; 64
(L) The administrator of the bureau of employment 66
services; 67
(M) The director of natural resources; 69
(N) The director of mental health; 71
(O) The director of mental retardation and developmental 73
disabilities; 74
(P) The director of health; 76
(Q) The director of youth services; 78
(R) The director of rehabilitation and correction; 80
(S) The director of environmental protection; 82
(T) The director of aging; 84
(U) The director of alcohol and drug addiction services; 86
(W)(V) The administrator of workers' compensation who 88
meets the qualifications required under division (A) of section 89
4121.121 of the Revised Code, who shall serve as administrator, 90
subject to removal at the pleasure of the governor, until the 91
date the workers' compensation oversight commission appoints the 92
administrator as provided in division (F)(10) of section 4121.12 93
of the Revised Code.
Sec. 2317.45. (A) As used in this section: 102
(1) "Collateral benefits" means benefits that are paid by 104
any source, including workers' compensation benefits, to or on 106
behalf of the plaintiff as a result of an injury or loss to
person or property, regardless of whether there is an obligation 107
to pay back the money or other benefits, in whole or in part, 108
upon recovery in a tort action. "Collateral benefits" does not 109
include life insurance proceeds.
(2) "Tort action" means a civil action for damages for 112
injury, death, or loss to person or property. "Tort action" 113
includes a product liability claim but does not include a civil 114
action for damages for a breach of contract or another agreement 115
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between persons.
(3) "Trier of fact" means the jury or, in a nonjury 117
action, the court.
(B) In determining the amount of the compensatory damages 120
that are recoverable by the plaintiff in a tort action, the trier 122
of fact shall consider, if presented in the tort action, relevant
collateral benefits that have been paid, or that the source of 123
the benefits has acknowledged are payable, from insurance other 124
than insurance for which the plaintiff, spouse of the plaintiff, 125
or parent of the plaintiff if the plaintiff is a minor, has paid 126
a premium, insurance that is subject to a right of subrogation, 127
WORKERS' COMPENSATION BENEFITS THAT ARE SUBJECT TO A RIGHT OF 128
SUBROGATION, or insurance that has any other obligation of 130
repayment, including, but not limited to, evidence of the amount 131
of the collateral benefit and of the costs, premiums, or charges
for the collateral benefits. 132
(C) This section does not apply as follows: 134
(1) In tort actions against the state in the court of 136
claims. Division (D) of section 2743.02 or division (B)(2) of 138
section 3345.40 of the Revised Code applies to collateral 139
recoveries or sources of plaintiffs in those tort actions.
(2) In tort actions against political subdivisions of this 141
state that are commenced under or are subject to Chapter 2744. of 142
the Revised Code. Division (B) of section 2744.05 of the Revised 144
Code applies to collateral sources of plaintiffs in those tort
actions. 145
(D) This section shall be considered to be purely remedial 147
in operation and shall be applied in a remedial manner in any 148
civil action commenced on or after the effective date of the 149
amendment to this section JANUARY 27, 1997, in which this section 150
is relevant, regardless of when the cause of action accrued and 151
notwithstanding any other section of the Revised Code or prior 152
rule of law of this state, but shall not be construed to apply to 153
any civil action pending prior to the effective date of the 154
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amendment to this section JANUARY 27, 1997. 155
Sec. 4121.12. (A) There is hereby created the workers' 165
compensation oversight commission consisting of nine members, of 166
which members the governor shall appoint five with the advice and 167
consent of the senate. Of the five members the governor 169
appoints, two shall be individuals who, on account of their 171
previous vocation, employment, or affiliations, can be classed as 173
representative of employees, at least one of whom is
representative of employees who are members of an employee 175
organization; two shall be individuals who, on account of their 177
previous vocation, employment, or affiliations, can be classed as 179
representative of employers, one of whom represents self-insuring 180
employers and one of whom has experience as an employer in 181
compliance with section 4123.35 of the Revised Code other than a 183
self-insuring employer, and one of those two representatives also
shall represent employers whose employees are not members of an 184
employee organization; and one shall represent the public and 185
also be an individual who, on account of the individual's 186
previous vocation, employment, or affiliations, cannot be classed 187
as either predominantly representative of employees or of 188
employers. The governor shall select the chairperson of the 189
commission who shall serve as chairperson at the pleasure of the 190
governor. No more than three members appointed by the governor 193
shall belong to or be affiliated with the same political party. 194
Each of these five members shall have at least three years' 196
experience in the field of insurance, finance, workers' 197
compensation, law, accounting, actuarial, personnel, investments, 198
or data processing, or in the management of an organization whose 199
size is commensurate with that of the bureau of workers' 200
compensation. At least one of these five members shall be an 201
attorney licensed under Chapter 4705. of the Revised Code to 202
practice law in this state. 203
(B) Of the initial appointments made to the commission, 206
the governor shall appoint one member who represents employees to 207
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a term ending one year after September 1, 1995, one member who 208
represents employers to a term ending two years after the 210
effective date of this section, the member who represents the 211
public to a term ending three years after September 1, 1995, one 214
member who represents employees to a term ending four years after 215
September 1, 1995, and one member who represents employers to a 217
term ending five years after September 1, 1995. Thereafter, 219
terms of office shall be for five years, with each term ending on 220
the same day of the same month as did the term that it succeeds. 222
Each member shall hold office from the date of his appointment 223
until the end of the term for which the member was appointed. 224
The governor shall not appoint any person to more than two 226
full terms of office on the commission. This restriction does 227
not prevent the governor from appointing a person to fill a 228
vacancy caused by the death, resignation, or removal of a 229
commission member and also appointing that person twice to full 230
terms on the commission, or from appointing a person previously 231
appointed to fill less than a full term twice to full terms on 232
the commission. Any member appointed to fill a vacancy occurring 233
prior to the expiration date of the term for which the member's 235
predecessor was appointed shall hold office as a member for the
remainder of that term. A member shall continue in office 236
subsequent to the expiration date of the member's term until a 238
successor takes office or until a period of sixty days has 239
elapsed, whichever occurs first. 240
(C) In making appointments to the commission, the governor 243
shall select the members from the list of names submitted by the 246
workers' compensation oversight commission nominating committee 247
pursuant to this division. Within fourteen days after the 248
governor calls the initial meeting of the nominating committee
pursuant to division (C) of section 4121.123 of the Revised Code, 249
the nominating committee shall submit to the governor, for the 252
initial appointments, a list containing four separate names for 254
each of the members on the commission. Within fourteen days 256
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after the submission of the list, the governor shall appoint 257
individuals from the list.
For the appointment of the member who is representative of 259
employees who are members of an employee organization, both for 260
initial appointments and for the filling of vacancies, the list 261
of four names submitted by the nominating committee shall be 262
comprised of four individuals who are members of the executive 263
committee of the largest statewide labor federation.
Thereafter, within sixty days after a vacancy occurring as 267
a result of the expiration of a term and within thirty days after 268
other vacancies occurring on the commission, the nominating 269
committee shall submit a list containing four names for each 271
vacancy. Within fourteen days after the submission of the list, 273
the governor shall appoint individuals from the list. With 275
respect to the filling of vacancies, the nominating committee 276
shall provide the governor with a list of four individuals who 277
are, in the judgment of the nominating committee, the most fully 278
qualified to accede to membership on the commission. The 279
nominating committee shall not include the name of an individual 280
upon the list for the filling of vacancies if the appointment of
that individual by the governor would result in more than three 281
members of the commission belonging to or being affiliated with 282
the same political party. The committee shall include on the 283
list for the filling of vacancies only the names of attorneys 284
admitted to practice law in this state if, to fulfill the
requirement of division (A) of section 4121.12 of the Revised 285
Code, the vacancy must be filled by an attorney. 286
In order for the name of an individual to be submitted to 288
the governor under this division, the nominating committee shall 290
approve the individual by an affirmative vote of a majority of 292
its members.
(D) The remaining four members of the commission shall be 295
the chairperson and ranking minority member of the standing 296
committees of the house of representatives and of the senate to
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which legislation concerning this chapter and Chapters 4123., 297
4127., and 4131. of the Revised Code normally are referred, or a 299
designee of the chairperson or ranking minority member, provided 300
that the designee is a member of the standing committee. 301
Legislative members shall serve during the session of the general 302
assembly to which they are elected and for as long as they are 303
members of the general assembly. Legislative members shall serve 304
in an advisory capacity to the commission and shall have no 306
voting rights on matters coming before the commission. 308
Membership on the commission by legislative members shall not be 309
deemed as holding a public office. 310
(E) All members of the commission shall receive their 313
reasonable and necessary expenses pursuant to section 126.31 of 314
the Revised Code while engaged in the performance of their duties 316
as members. Legislative members also shall receive fifty dollars 317
per meeting that they attend. Members appointed by the governor 318
also shall receive an annual salary as follows:
(a)(1) On and before August 31, 1998, not to exceed six 321
thousand dollars payable at the rate of five hundred dollars per 322
month. A member shall receive the monthly five hundred dollar 323
salary only if the member has attended at least one meeting of 325
the commission during that month. A member may receive no more
than the monthly five hundred dollar salary regardless of the 327
number of meetings held by the commission during a month or the 328
number of meetings in excess of one within a month that the 329
member attends.
(b)(2) After August 31, 1998, not to exceed eighteen 331
thousand dollars payable at the rate of fifteen hundred dollars 332
per month. A member shall receive the monthly fifteen hundred 333
dollar salary only if the member has attended at least one 334
meeting of the commission during that month. A member may 335
receive no more than the monthly fifteen hundred dollar salary
regardless of the number of meetings held by the commission 336
during the month or the number of meetings in excess of one 337
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within a month that the member attends. 338
The administrator of workers' compensation shall provide 340
professional and clerical assistance to the commission, as the 341
commission considers appropriate. 342
(F) The commission shall: 344
(1) Review progress of the bureau in meeting its cost and 347
quality objectives and in complying with this chapter and 348
Chapters 4123., 4127., and 4131. of the Revised Code; 349
(2) Issue an annual report on the cost and quality 351
objectives of the bureau to the president of the senate, the 353
speaker of the house of representatives, and the governor; 354
(3) Review all independent financial audits of the bureau. 356
The administrator shall provide access to records of the bureau 357
to facilitate the review required under this division. 358
(4) Study issues as requested by the administrator or the 360
governor;
(5) Contract with an independent actuarial firm to assist 362
the commission in making recommendations to the administrator 363
regarding premium rates;
(6) Establish objectives, policies, and criteria for the 366
administration of the investment program that include asset 368
allocation targets and ranges, risk factors, asset class
benchmarks, time horizons, total return objectives, and 369
performance evaluation guidelines, and monitor the 371
administrator's progress in implementing the objectives, 372
policies, and criteria on a quarterly basis. The commission
shall publish the objectives, policies, and criteria no less than 374
annually and shall make copies available to interested parties. 375
The commission shall prohibit, on a prospective basis, specific 377
investment activity it finds to be contrary to its investment
objectives, policies, and criteria. 378
The investment policy in existence on the effective date of 380
this amendment shall continue until the commission approves 381
objectives, policies, and criteria for the administration of the 382
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investment program pursuant to this section. 383
(7) Advise and consent on all of the following: 385
(a) Administrative rules the administrator submits to it 388
pursuant to division (B)(5) of section 4121.121 of the Revised
Code for the classification of occupations or industries, for 390
premium rates and contributions, for the amount to be credited to 391
the surplus fund, for rules and systems of rating, rate 392
revisions, and merit rating;
(b) The overall policy of the bureau of workers' 395
compensation as set by the administrator;
(c) The duties and authority conferred upon the 397
administrator pursuant to section 4121.37 of the Revised Code; 398
(d) Rules the administrator adopts for the health 400
partnership program and the qualified health plan system, as 401
provided in sections 4121.44, 4121.441, and 4121.442 of the 402
Revised Code.
(8) Perform all duties required under section 4121.125 of 404
the Revised Code; 405
(9) After August 31, 1998, appoint an administrator who 407
meets the qualifications required under section 4121.121 of the 408
Revised Code and fix the salary of the administrator, the amount 410
of which the commission shall base upon the experience of the 412
administrator and the responsibilities and duties of the
administrator pursuant to this chapter and Chapters 4123., 4127., 413
and 4131. of the Revised Code. 414
(G) The commission may enter into an employment contract 416
with an administrator it appoints, provided that the contract 417
does not exceed two years in length. 419
(H) As used in this section, "employee organization" means 421
any labor or bona fide organization in which employees 422
participate and which exists for the purpose, in whole or in 424
part, of dealing with employers concerning grievances, labor 425
disputes, wages, hours, terms and other conditions of employment. 426
Sec. 4121.121. (A) There is hereby created the bureau of 436
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workers' compensation, which shall be administered by the 437
administrator of workers' compensation. A person appointed to 438
the position of administrator shall possess significant 439
management experience in effectively managing an organization or 440
organizations of substantial size and complexity. Before
September 1, 1998, the THE governor shall appoint the 442
administrator as provided in section 121.03 of the Revised Code, 443
and the administrator shall serve at the pleasure of the 445
governor. The governor shall fix the administrator's salary on 447
the basis of the administrator's experience and the
administrator's responsibilities and duties under this chapter 449
and Chapter CHAPTERS 4123., 4127., and 4131. of the Revised Code. 450
The governor shall not appoint to the position of administator 451
any person who has, or whose spouse has, given a contribution to
the campaign committee of the governor in an amount greater than 453
one thousand dollars during the two-year period immediately 454
preceding the date of the appointment of the administrator.
After August 31, 1998, the workers' compensation oversight 457
commission shall appoint the administrator as provided in
division (F)(9) of section 4121.12 of the Revised Code, and the 459
administrator shall serve at the pleasure of the oversight 461
commission. The oversight commission shall fix the 462
administrator's salary on the basis of the administrator's
experience and the administrator's responsibilities and duties 463
under this chapter and Chapters 4123., 4127., and 4131. of the 465
Revised Code.
The administrator shall hold no other public office and 467
shall devote full time to the duties of administrator. Before 469
entering upon the duties of the office, the administrator shall 470
take an oath of office as required by sections 3.22 and 3.23 of 471
the Revised Code, and shall file in the office of the secretary 472
of state, a bond signed by the administrator and by surety 473
approved by the governor, for the sum of fifty thousand dollars 475
payable to the state, conditioned upon the faithful performance 476
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of the administrator's duties.
(B) The administrator is responsible for the management of 479
the bureau of workers' compensation and for the discharge of all 480
administrative duties imposed upon the administrator in this 481
chapter and Chapters 4123., 4127., and 4131. of the Revised Code, 483
and in the discharge thereof shall do all of the following: 484
(1) Establish the overall administrative policy of the 487
bureau for the purposes of this chapter and Chapters 4123.,
4127., and 4131. of the Revised Code, and perform all acts and 488
exercise all authorities and powers, discretionary and otherwise 490
that are required of or vested in the bureau or any of its 491
employees in this chapter and Chapters 4123., 4127., and 4131. of 492
the Revised Code, except the acts and the exercise of authority 493
and power that is required of and vested in the oversight 494
commission or the industrial commission pursuant to those 495
chapters. The treasurer of state shall honor all warrants signed 496
by the administrator, or by one or more of the administrator's 497
employees, authorized by the administrator in writing, or bearing 499
the facsimile signature of the administrator or such employee 500
under sections 4123.42 and 4123.44 of the Revised Code. 501
(2) Employ, direct, and supervise all employees required 503
in connection with the performance of the duties assigned to the 504
bureau by this chapter and Chapters 4123., 4127., and 4131. of 505
the Revised Code, and may establish job classification plans and 506
compensation for all employees of the bureau provided that this 507
grant of authority shall not be construed as affecting any 508
employee for whom the state employment relations board has 509
established an appropriate bargaining unit under section 4117.06 510
of the Revised Code. All positions of employment in the bureau 511
are in the classified civil service except those employees the 512
administrator may appoint to serve at the administrator's 513
pleasure in the unclassified civil service pursuant to section 514
124.11 of the Revised Code. The administrator shall fix the 515
salaries of employees the administrator appoints to serve at the 517
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administrator's pleasure, including the chief operating officer, 518
staff physicians, ATTORNEYS OF THE BUREAU'S LEGAL SECTION AND
THEIR IMMEDIATE SUPERVISORS, and other senior management 519
personnel of the bureau. 521
THE ADMINISTRATOR MAY APPOINT A PERSON HOLDING A CERTIFIED 523
POSITION IN THE CLASSIFIED SERVICE TO ANY STATE POSITION IN THE 524
UNCLASSIFIED SERVICE OF THE BUREAU OF WORKERS' COMPENSATION. A 525
PERSON SO APPOINTED SHALL RETAIN THE RIGHT TO RESUME THE POSITION 527
AND STATUS HELD BY THE PERSON IN THE CLASSIFIED SERVICE
IMMEDIATELY PRIOR TO THE PERSON'S APPOINTMENT IN THE UNCLASSIFIED 529
SERVICE. IF THE POSITION THE PERSON PREVIOUSLY HELD HAS BEEN 530
FILLED OR PLACED IN THE UNCLASSIFIED SERVICE, OR IS OTHERWISE 531
UNAVAILABLE, THE PERSON SHALL BE APPOINTED TO A POSITION IN THE 532
CLASSIFIED SERVICE WITHIN THE BUREAU THAT THE ADMINISTRATOR 533
CERTIFIES IS COMPARABLE IN COMPENSATION TO THE POSITION THE 534
PERSON PREVIOUSLY HELD. REINSTATEMENT TO A POSITION IN THE 535
CLASSIFIED SERVICE SHALL BE TO A POSITION SUBSTANTIALLY EQUAL TO 536
THAT HELD PREVIOUSLY, AS CERTIFIED BY THE ADMINISTRATOR. SERVICE 537
IN THE POSITION IN THE UNCLASSIFIED SERVICE SHALL BE COUNTED AS 538
SERVICE IN THE POSITION IN THE CLASSIFIED SERVICE HELD BY THE 539
PERSON IMMEDIATELY PRIOR TO THE PERSON'S APPOINTMENT IN THE 540
UNCLASSIFIED SERVICE. WHEN A PERSON IS REINSTATED TO A POSITION 541
IN THE CLASSIFIED SERVICE AS PROVIDED IN THIS SECTION, THE PERSON 542
IS ENTITLED TO ALL RIGHTS, STATUS, AND BENEFITS ACCRUING TO THE 543
POSITION DURING THE PERSON'S TIME OF SERVICE IN THE POSITION IN 544
THE UNCLASSIFIED SERVICE. 545
(3) Reorganize the work of the bureau, its sections, 547
departments, and offices to the extent necessary to achieve the 548
most efficient performance of its functions and to that end may 549
establish, change, or abolish positions and assign and reassign 550
duties and responsibilities of every employee of the bureau. All 551
persons employed by the commission in positions that, after 553
November 3, 1989, are supervised and directed by the 554
administrator under this section are transferred to the bureau in 555
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their respective classifications but subject to reassignment and 556
reclassification of position and compensation as the 557
administrator determines to be in the interest of efficient 558
administration. The civil service status of any person employed 559
by the commission is not affected by this section. Personnel 560
employed by the bureau or the commission who are subject to 561
Chapter 4117. of the Revised Code shall retain all of their 562
rights and benefits conferred pursuant to that chapter as it 563
presently exists or is hereafter amended and nothing in this 564
chapter or Chapter 4123. of the Revised Code shall be construed 565
as eliminating or interfering with Chapter 4117. of the Revised 566
Code or the rights and benefits conferred under that chapter to 567
public employees or to any bargaining unit. 568
(4) Provide offices, equipment, supplies, and other 570
facilities for the bureau. The administrator also shall provide 572
suitable office space in the service offices for the district 573
hearing officers, the staff hearing officers, and commission 574
employees as requested by the commission.
(5) Prepare and submit to the oversight commission 577
information the administrator considers pertinent or the 578
oversight commission requires, together with the administrator's 581
recommendations, in the form of administrative rules, for the 582
advice and consent of the oversight commission, for 583
classifications of occupations or industries, for premium rates 584
and contributions, for the amount to be credited to the surplus 585
fund, for rules and systems of rating, rate revisions, and merit 586
rating. The administrator shall obtain, prepare, and submit any 587
other information the oversight commission requires for the 589
prompt and efficient discharge of its duties. 591
(6) Keep the accounts required by division (A) of section 593
4123.34 of the Revised Code and all other accounts and records 594
necessary to the collection, administration, and distribution of 595
the workers' compensation funds and shall obtain the statistical 596
and other information required by section 4123.19 of the Revised 597
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Code. 598
(7) Exercise the investment powers vested in the 600
administrator by section 4123.44 of the Revised Code in 601
accordance with the investment objectives, policies, and criteria 603
established by the oversight commission pursuant to section 604
4121.12 of the Revised Code. The administrator shall not engage 605
in any prohibited investment activity specified by the oversight 606
commission pursuant to division (F)(6) of section 4121.12 of the 607
Revised Code. All business shall be transacted, all funds 608
invested, all warrants for money drawn and payments made, and all 609
cash and securities and other property held, in the name of the 610
bureau, or in the name of its nominee, provided that nominees are
authorized by the administrator solely for the purpose of 612
facilitating the transfer of securities, and restricted to the 613
administrator and designated employees. 614
(8) Make contracts for and supervise the construction of 617
any project or improvement or the construction or repair of 618
buildings under the control of the bureau. 619
(9) Purchase supplies, materials, equipment, and services; 621
make contracts for, operate, and superintend the telephone, other 622
telecommunication, and computer services for the use of the 623
bureau; and make contracts in connection with office 624
reproduction, forms management, printing, and other services. 625
(10) Separately from the budget the industrial commission 628
submits, prepare and submit to the director of budget and 629
management a budget for each biennium. The budget submitted 630
shall include estimates of the costs and necessary expenditures 631
of the bureau in the discharge of any duty imposed by law as well 632
as the costs of furnishing office space to the district hearing 633
officers, staff hearing officers, and commission employees under 634
division (D) of this section. 635
(11) As promptly as possible in the course of efficient 637
administration, decentralize and relocate such of the personnel 638
and activities of the bureau as is appropriate to the end that 639
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the receipt, investigation, determination, and payment of claims 640
may be undertaken at or near the place of injury or the residence 641
of the claimant and for that purpose establish regional offices, 642
in such places as the administrator considers proper, capable of 644
discharging as many of the functions of the bureau as is 645
practicable so as to promote prompt and efficient administration 646
in the processing of claims. All active and inactive lost-time 647
claims files shall be held at the service office responsible for 648
the claim. A claimant, at the claimant's request, shall be 649
provided with information by telephone as to the location of the 651
file pertaining to claim. The administrator shall ensure that 652
all service office employees report directly to the director for 653
their service office.
(12) Provide a written binder on new coverage where the 655
administrator considers it to be in the best interest of the 656
risk. The administrator, or any other person authorized by the 657
administrator, shall grant the binder upon submission of a 659
request for coverage by the employer. A binder is effective for 660
a period of thirty days from date of issuance and is 661
nonrenewable. Payroll reports and premium charges shall coincide 662
with the effective date of the binder. 663
(13) Set standards for the reasonable and maximum handling 665
time of claims payment functions, ensure, by rules, the impartial 666
and prompt treatment of all claims and employer risk accounts, 667
and establish a secure, accurate method of time stamping all 668
incoming mail and documents hand delivered to bureau employees. 669
(14) Ensure that all employees of the bureau follow the 671
orders and rules of the commission as such orders and rules 672
relate to the commission's overall adjudicatory policy-making and 673
management duties under this chapter and Chapters 4123., 4127., 674
and 4131. of the Revised Code. 675
(15) Manage and operate a data processing system with a 677
common data base for the use of both the bureau and the 678
commission and, in consultation with the commission, using 679
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electronic data processing equipment, shall develop a claims 680
tracking system that is sufficient to monitor the status of a 681
claim at any time and that lists appeals that have been filed and 682
orders or determinations that have been issued pursuant to 683
section 4123.511 or 4123.512 of the Revised Code, including the 684
dates of such filings and issuances. 685
(16) Establish and maintain a medical section within the 687
bureau. The medical section shall do all of the following: 688
(a) Assist the administrator in establishing standard 690
medical fees, approving medical procedures, and determining 691
eligibility and reasonableness of the compensation payments for 692
medical, hospital, and nursing services, and in establishing 693
guidelines for payment policies which recognize usual, customary, 694
and reasonable methods of payment for covered services; 695
(b) Provide a resource to respond to questions from claims 697
examiners for employees of the bureau; 698
(c) Audit fee bill payments; 700
(d) Implement a program to utilize, to the maximum extent 702
possible, electronic data processing equipment for storage of 703
information to facilitate authorizations of compensation payments 704
for medical, hospital, drug, and nursing services; 705
(e) Perform other duties assigned to it by the 707
administrator. 708
(17) Appoint, as the administrator determines necessary, 710
panels to review and advise the administrator on disputes arising 712
over a determination that a health care service or supply 713
provided to a claimant is not covered under this chapter or 714
Chapter 4123. of the Revised Code or is medically unnecessary. 715
If an individual health care provider is involved in the dispute, 716
the panel shall consist of individuals licensed pursuant to the 717
same section of the Revised Code as such health care provider. 718
(18) Pursuant to section 4123.65 of the Revised Code, 720
approve applications for the final settlement of claims for 721
compensation or benefits under this chapter and Chapters 4123., 722
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4127., and 4131. of the Revised Code as the administrator 723
determines appropriate, except in regard to the applications of 725
self-insuring employers and their employees; 726
(19) Comply with section 3517.13 of the Revised Code, and 728
except in regard to contracts entered into pursuant to the 731
authority contained in section 4121.44 of the Revised Code,
comply with the competitive bidding procedures set forth in the 733
Revised Code for all contracts into which the administrator 734
enters provided that those contracts fall within the type of 735
contracts and dollar amounts specified in the Revised Code for 736
competitive bidding and further provided that those contracts are 737
not otherwise specifically exempt from the competitive bidding 738
procedures contained in the Revised Code. 739
(20) Adopt, with the advice and consent of the oversight 741
commission, rules for the operation of the bureau. 743
(21) Prepare and submit to the oversight commission 745
information the administrator considers pertinent or the 746
oversight commission requires, together with the administrator's 747
recommendations, in the form of administrative rules, for the 748
advice and consent of the oversight commission, for the health 749
partnership program and the qualified health plan system, as
provided in sections 4121.44, 4121.441, and 4121.442 of the 750
Revised Code.
(C) The administrator, with the advice and consent of the 752
senate, shall appoint a chief operating officer who has 754
significant experience in the field of workers' compensation 755
insurance or other similar insurance industry experience if the
administrator does not possess such experience. The chief 756
operating officer shall not commence the chief operating 757
officer's duties until after the senate consents to the chief 758
operating officer's appointment. The chief operating officer 759
shall serve in the unclassified civil service of the state. 760
Sec. 4121.125. (A) The workers' compensation oversight 770
commission may contract with one or more outside actuarial firms 771
18
and other professional persons, as the oversight commission 772
determines necessary, to assist the oversight commission in 773
measuring the performance of Ohio's workers' compensation system 774
and in comparing Ohio's workers' compensation system to other 775
state and private workers' compensation systems. The oversight 776
commission, actuarial firm or firms, and professional persons 777
shall make such measurements and comparisons using accepted 778
insurance industry standards, including, but not limited to, 779
standards promulgated by the National Council on Compensation 781
Insurance.
(B) The oversight commission may contract with one or more 783
outside firms to conduct management and financial audits of the 785
workers' compensation system, including audits of the reserve 786
fund belonging to the state insurance fund, and to establish 787
objective quality management principles and methods by which to 788
review the performance of the workers' compensation system.
(C) The oversight commission shall include any actuarial, 790
managerial, or financial report completed under its authority 792
pursuant to division (A) or (B) of this section in the next 793
regularly published report of the oversight commission. 794
(D) The oversight commission shall publish monthly reports 796
that include, but are not limited to, all of the following: 797
(1) Comparative and competitive data concerning Ohio's 799
workers' compensation system and the workers' compensation system 800
of other states on all of the following subjects: 802
(a) Average length of time to process contested and 805
uncontested claims;
(b) Length of time to investigate claims that raise 807
suspicion of fraudulent activity; 808
(c) Average indemnity cost of claims; 810
(d) Average medical costs of claims reported according to 812
the types of awards and separately reported according to the 813
types of injuries; 814
(e) Comparisons of Ohio classification manual rates with 817
19
comparable rates in other states, and after the administrator of 818
workers' compensation classifies occupations and industries and 819
determines risks of different classes according to the National 820
Council on Compensation Insurance, comparisons of rates in Ohio 822
with rates of other states that use National Council on 823
Compensation Insurance codes;
(f) Effectiveness of rehabilitation, both private and 825
within the state's workers' compensation system, including the 826
number of individuals referred, the percentage completing a 827
rehabilitation program, and the percentage of those finding 828
employment after successful completion of a rehabilitation 829
program.
(2) Data concerning Ohio's workers' compensation system 831
concerning all of the following: 832
(a) Performance of the investments of the bureau of 834
workers' compensation; 835
(b) Effectiveness of the bureau in collecting delinquent 838
payments that are due from employers pursuant to Chapters 4121., 839
4123., 4127., and 4131. of the Revised Code, including a
crosscheck with other state agencies to which employers are 841
required under law to make payments;
(c) Effectiveness of the bureau in subrogation claims; 844
(d) Performance measurements of managed care organizations 847
within the health partnership program and the qualified health 848
plan system;
(e) Return-to-work rates, medical outcome measures, and 851
other measures that the oversight commission or general assembly
determines; 852
(f) Adequacy of the reserve fund to cover indemnity costs 855
of the state insurance fund;
(g) The total number of claims filed in the time period 857
occurring subsequent to publication of the report that 858
immediately precedes publication of the report for which the 859
information is being compiled according to the type of claim, 861
20
employer classification, and claim result;
(h) The effectiveness of the bureau in identifying and 863
eliminating fraud in the workers' compensation system and in 864
recovering workers' compensation resources. 865
The reports published under this division shall include 867
data from the bureau and the industrial commission regarding 868
state fund, self-insuring, and public employers. 869
(E) The administrator and the industrial commission shall 871
compile information and provide access to records of the bureau 872
and the industrial commission to the oversight commission to the 873
extent necessary for fulfillment of all BOTH of the following 874
requirements: 875
(1) Conduct of the measurements and comparisons described 878
in division (A) of this section; 879
(2) Conduct of the management and financial audits and 881
establishment of the principles and methods described in division 882
(B) of this section; 883
(3) Publishing of the reports described in divisions (C) 886
and (D) of this section.
(F)(D) The administrator shall pay the expenses incurred 889
by the oversight commission to effectively fulfill its duties and 890
exercise its powers under this section as the administrator pays 891
other operating expenses of the bureau. 892
Sec. 4123.49. (A) IF THE ADMINISTRATOR OF WORKERS' 895
COMPENSATION DETERMINES PURSUANT TO AN AUDIT OR RECONCILIATION 896
CONDUCTED UNDER THIS CHAPTER OR CHAPTER 4121. OF THE REVISED CODE 897
THAT MONEY IS OWED TO THE BUREAU OF WORKERS' COMPENSATION BY AN 898
EMPLOYER OR EMPLOYEE, OR BY A HEALTH CARE PROVIDER OR MANAGED 899
CARE ORGANIZATION DOING BUSINESS WITH THE BUREAU, THE BUREAU MAY
ENTER INTO A PAYMENT AGREEMENT WITH THE INDEBTED EMPLOYER, 900
EMPLOYEE, HEALTH CARE PROVIDER, OR MANAGED CARE ORGANIZATION. 901
THE AGREEMENT SHALL INCLUDE ALL OF THE FOLLOWING: 902
(1) A SCHEDULE OF INSTALLMENT PAYMENTS WHEREBY THE MONEY 904
OWED TO THE BUREAU IS TO BE PAID IN FULL WITHIN A PERIOD NOT TO 905
21
EXCEED ONE YEAR;
(2) A PROVISION SPECIFYING THAT THE INDEBTED EMPLOYER, 907
EMPLOYEE, HEALTH CARE PROVIDER, OR MANAGED CARE ORGANIZATION MAY 908
PAY THE ENTIRE BALANCE OWED AT ANY TIME DURING THE TERM OF THE 909
AGREEMENT;
(3) A PROVISION SPECIFYING THAT IF ANY INSTALLMENT IS NOT 911
PAID IN FULL WITHIN FORTY-FIVE DAYS AFTER IT IS DUE, THE ENTIRE 912
BALANCE OWED IS IMMEDIATELY DUE AND PAYABLE; 913
(4) ANY OTHER TERMS OR CONDITIONS DETERMINED BY THE 915
ADMINISTRATOR.
(B) THE ADMINISTRATOR MAY REQUIRE AN INDEBTED EMPLOYER, 917
EMPLOYEE, HEALTH CARE PROVIDER, OR MANAGED CARE ORGANIZATION TO 918
PAY INTEREST ON THE MONEY OWED TO THE BUREAU. THE ADMINISTRATOR 919
MAY DETERMINE THE RATE OF, AND INCLUDE A PROVISION IN A PAYMENT 920
AGREEMENT REQUIRING THE PAYMENT OF, SUCH INTEREST. NEITHER THE 921
OBLIGATION TO PAY INTEREST NOR THE RATE OF INTEREST IS SUBJECT TO 922
NEGOTIATION BETWEEN THE ADMINISTRATOR AND THE INDEBTED EMPLOYER,
EMPLOYEE, HEALTH CARE PROVIDER, OR MANAGED CARE ORGANIZATION. 923
(C) IF THE INDEBTED EMPLOYER, EMPLOYEE, HEALTH CARE 925
PROVIDER, OR MANAGED CARE ORGANIZATION FAILS TO PAY ANY 926
INSTALLMENT IN FULL WITHIN FORTY-FIVE DAYS AFTER ITS DUE DATE, 927
THE ADMINISTRATOR SHALL CERTIFY TO THE ATTORNEY GENERAL THE 928
ENTIRE BALANCE OWED, FOR COLLECTION UNDER SECTION 131.02 OF THE 929
REVISED CODE. THE ADMINISTRATOR MAY WITHHOLD FUNDS FROM PAYMENTS
MADE TO AN INDEBTED EMPLOYER, EMPLOYEE, HEALTH CARE PROVIDER, OR 930
MANAGED CARE ORGANIZATION UNDER THIS CHAPTER OR CHAPTER 4121. OF 931
THE REVISED CODE TO SATISFY A JUDGMENT SECURED BY THE ATTORNEY 932
GENERAL.
(D) THE ADMINISTRATOR SHALL DEPOSIT ALL MONEY COLLECTED 934
UNDER THIS SECTION INTO THE STATE INSURANCE FUND. 935
Sec. 4123.511. (A) Within seven days after receipt of any 946
claim under this chapter, the bureau of workers' compensation
shall notify the claimant and the employer of the claimant of the 947
receipt of the claim and of the facts alleged therein. If the 948
22
bureau receives from a person other than the claimant written or 949
telecommunicated information indicating that an injury or 950
occupational disease has occurred or been contracted which may be 951
compensable under this chapter, the bureau shall notify the 952
employee and the employer of the information. If the information 953
is provided by any method of telecommunication, the person 954
providing the information shall provide written verification of 955
the information to the bureau according to division (E) of 956
section 4123.84 of the Revised Code. The receipt of the 957
information in writing, or if by a method of telecommunications, 958
the written verification, and the notice by the bureau shall be 959
considered an application for compensation under section 4123.84 960
or 4123.85 of the Revised Code provided that the conditions of 961
division (E) of section 4123.84 of the Revised Code apply to 962
information provided by a method of telecommunication. Upon 963
receipt of a claim, the bureau shall advise the claimant of the 964
claim number assigned and the claimant's right to representation 965
in the processing of a claim or to elect no representation. If 966
the bureau determines that a claim is determined to be a 967
compensable lost time claim, the bureau shall notify the claimant 968
and the employer of the availability of rehabilitation services. 969
No bureau or industrial commission employee shall directly or 970
indirectly convey any information in derogation of this right. 971
This section shall in no way abrogate the bureau's responsibility 972
to aid and assist a claimant in the filing of a claim and to 973
advise the claimant of the claimant's rights under the law. 974
The administrator of workers' compensation shall assign all 976
claims and investigations to the bureau service office from which 977
investigation and determination may be made most expeditiously. 978
The bureau shall investigate the facts concerning an injury 980
or occupational disease and ascertain such facts in whatever 981
manner is most appropriate and may obtain statements of the 982
employee, employer, attending physician, and witnesses in 983
whatever manner is most appropriate. 984
23
(B)(1) Except as provided in division (B)(2) of this 986
section, in claims other than those in which the employer is a 987
self-insuring employer, if the administrator determines under 988
division (A) of this section that a claimant is or is not 989
entitled to an award of compensation or benefits, the 990
administrator shall issue an order, no sooner than twenty-one 991
days but no later than twenty-eight days after the sending of the 993
notice under division (A) of this section, granting or denying 994
the payment of the compensation or benefits, or both as is 995
appropriate to the claimant. Notwithstanding the time limitation 996
specified in this division for the issuance of an order, if a 997
medical examination of the claimant is required by statute, the 998
administrator promptly shall schedule the claimant for that
examination and shall issue an order no later than twenty-eight 999
days after receipt of the report of the examination. The 1,000
administrator shall notify the claimant and the employer of the 1,002
claimant and their respective representatives in writing of the 1,003
nature of the order and the amounts of compensation and benefit 1,004
payments involved. The employer or claimant may appeal the order 1,005
pursuant to division (C) of this section within fourteen days 1,006
after the date of the receipt of the order. The employer and 1,007
claimant may waive, in writing, their rights to an appeal under 1,008
this division.
(2) Notwithstanding the time limitation specified in 1,010
division (B)(1) of this section for the issuance of an order, if 1,011
the employer certifies a claim for payment of compensation or 1,012
benefits, or both, to a claimant, and the administrator has 1,013
completed the investigation of the claim, the payment of benefits 1,015
or compensation, or both, as is appropriate, shall commence upon 1,016
the later of the date of the certification or completion of the 1,017
investigation and issuance of the order by the administrator, 1,018
provided that the administrator shall issue the order no later 1,019
than the time limitation specified in division (B)(1) of this 1,020
section. 1,021
24
(3) If an appeal is made under division (B)(1) or (2) of 1,023
this section, the administrator shall forward the claim file to 1,024
the appropriate district hearing officer within seven days of the 1,025
appeal. In contested claims other than state fund claims, the 1,026
administrator shall forward the claim within seven days of the 1,027
administrator's receipt of the claim to the commission, which 1,029
shall refer the claim to an appropriate district hearing officer 1,030
for a hearing in accordance with division (C) of this section. 1,031
(C) If an employer or claimant timely appeals the order of 1,033
the administrator issued under division (B) of this section or in 1,034
the case of other contested claims other than state fund claims, 1,035
the commission shall refer the claim to an appropriate district 1,036
hearing officer according to rules the commission adopts under 1,037
section 4121.36 of the Revised Code. The district hearing 1,038
officer shall notify the parties and their respective 1,039
representatives of the time and place of the hearing. 1,040
The district hearing officer shall hold a hearing on a 1,042
disputed issue or claim within forty-five days after the filing 1,044
of the appeal under this division and issue a decision within 1,045
seven days after holding the hearing. The district hearing 1,046
officer shall notify the parties and their respective
representatives in writing of the order. Any party may appeal an 1,048
order issued under this division pursuant to division (D) of this 1,049
section within fourteen days after receipt of the order under 1,050
this division. 1,051
(D) Upon the timely filing of an appeal of the order of 1,053
the district hearing officer issued under division (C) of this 1,054
section, the commission shall refer the claim file to an 1,055
appropriate staff hearing officer according to its rules adopted 1,056
under section 4121.36 of the Revised Code. The staff hearing 1,057
officer shall hold a hearing within forty-five days after the 1,058
filing of an appeal under this division and issue a decision 1,059
within seven days after holding the hearing under this division. 1,062
The staff hearing officer shall notify the parties and their 1,063
25
respective representatives in writing of his THE STAFF HEARING
OFFICER'S order. Any party may appeal an order issued under this 1,065
division pursuant to division (E) of this section within fourteen 1,066
days after receipt of the order under this division. 1,067
(E) Upon the filing of a timely appeal of the order of the 1,069
staff hearing officer issued under division (D) of this section, 1,070
the commission or a designated staff hearing officer, on behalf 1,071
of the commission, shall determine whether the commission will 1,073
hear the appeal. If the commission or the designated staff
hearing officer decides to hear the appeal, the commission or the 1,075
designated staff hearing officer shall notify the parties and 1,076
their respective representatives in writing of the time and place 1,077
of the hearing. The commission shall hold the hearing within 1,078
forty-five days after the filing of the notice of appeal and, 1,079
within seven days after the conclusion of the hearing, the 1,080
commission shall issue its order affirming, modifying, or 1,081
reversing the order issued under division (D) of this section. 1,082
The commission shall notify the parties and their respective 1,083
representatives in writing of the order. If the commission or 1,084
the designated staff hearing officer determines not to hear the 1,085
appeal, within fourteen days after the filing of the notice of 1,086
appeal, the commission or the designated staff hearing officer 1,087
shall issue an order to that effect and notify the parties and
their respective representatives in writing of that order. 1,088
Except as otherwise provided in this chapter and Chapters 1,090
4121., 4127., and 4131. of the Revised Code, any party may appeal 1,091
an order issued under this division to the court pursuant to 1,092
section 4123.512 of the Revised Code within sixty days after 1,093
receipt of the order, subject to the limitations contained in 1,094
that section. 1,095
(F) Every notice of an appeal from an order issued under 1,097
divisions (B), (C), (D), and (E) of this section shall state the 1,098
names of the claimant and employer, the number of the claim, the 1,099
date of the decision appealed from, and the fact that the 1,100
26
appellant appeals therefrom. 1,101
(G) All of the following apply to the proceedings under 1,103
divisions (C), (D), and (E) of this section: 1,104
(1) The parties shall proceed promptly and without 1,106
continuances except for good cause; 1,107
(2) The parties, in good faith, shall engage in the free 1,109
exchange of information relevant to the claim prior to the 1,110
conduct of a hearing according to the rules the commission adopts 1,111
under section 4121.36 of the Revised Code; 1,112
(3) The administrator is a party and may appear and 1,114
participate at all administrative proceedings on behalf of the 1,115
state insurance fund. However, in cases in which the employer is 1,116
represented, the administrator shall neither present arguments 1,117
nor introduce testimony that is cumulative to that presented or 1,118
introduced by the employer or the employer's representative. The 1,119
administrator may file an appeal under this section on behalf of
the state insurance fund; however, except in cases arising under 1,120
section 4123.343 of the Revised Code, the administrator only may 1,121
appeal questions of law or issues of fraud when the employer 1,122
appears in person or by representative.
(H) Except as provided in division (J) of this section, 1,124
payments of compensation to a claimant or on behalf of a claimant 1,125
as a result of any order issued under this chapter shall commence 1,126
upon the earlier of the following: 1,127
(1) Fourteen days after the date the administrator issues 1,129
an order under division (B) of this section, unless that order is 1,130
appealed; 1,131
(2) The date when the employer has waived the right to 1,133
appeal a decision issued under division (B) of this section; 1,134
(3) If no appeal of an order has been filed under this 1,136
section or to a court under section 4123.512 of the Revised Code, 1,137
the expiration of the time limitations for the filing of an 1,138
appeal of an order; 1,139
(4) The date of receipt by the employer of an order of a 1,141
27
district hearing officer, a staff hearing officer, or the 1,144
industrial commission issued under division (C), (D), or (E) of 1,145
this section. 1,146
(I) No medical benefits payable under this chapter or 1,148
Chapter 4121., 4127., or 4131. of the Revised Code are payable 1,149
until the earlier of the following: 1,150
(1) The date of the issuance of the staff hearing 1,152
officer's order under division (D) of this section; 1,153
(2) The date of the final administrative or judicial 1,155
determination. 1,156
(J) Upon the final administrative or judicial 1,158
determination UNDER THIS SECTION OR SECTION 4123.512 OF THE 1,159
REVISED CODE OF AN APPEAL OF AN ORDER TO PAY COMPENSATION, if a 1,160
claimant is found to have received compensation PURSUANT to A 1,161
PRIOR ORDER which the claimant was not entitled IS REVERSED UPON 1,162
SUBSEQUENT APPEAL, the claimant's employer, if a self-insuring 1,163
employer, or the bureau, shall withhold from any amount to which 1,165
the claimant becomes entitled pursuant to any claim, past, 1,166
present, or future, under Chapter 4121., 4123., 4127., or 4131. 1,167
of the Revised Code, the amount OF PREVIOUSLY PAID COMPENSATION 1,168
to which the claimant was WHICH, DUE TO REVERSAL UPON APPEAL, THE 1,169
CLAIMANT IS not entitled, pursuant to the following criteria: 1,170
(1) No withholding for the first twelve weeks of temporary 1,172
total disability compensation pursuant to section 4123.56 of the 1,173
Revised Code shall be made; 1,174
(2) Forty per cent of all awards of compensation paid 1,176
pursuant to sections 4123.56 and 4123.57 of the Revised Code, 1,177
until the amount overpaid is refunded; 1,178
(3) Twenty-five per cent of any compensation paid pursuant 1,180
to section 4123.58 of the Revised Code until the amount overpaid 1,181
is refunded; 1,182
(4) If, pursuant to an appeal under section 4123.512 of 1,184
the Revised Code, the court of appeals or the supreme court 1,185
reverses the allowance of the claim, then no amount of any 1,186
28
compensation will be withheld. 1,187
THE ADMINISTRATOR AND SELF-INSURING EMPLOYERS, AS 1,189
APPROPRIATE, ARE SUBJECT TO THE REPAYMENT SCHEDULE OF THIS 1,190
DIVISION ONLY WITH RESPECT TO AN ORDER TO PAY COMPENSATION THAT 1,191
WAS PROPERLY PAID UNDER A PREVIOUS ORDER, BUT WHICH IS
SUBSEQUENTLY REVERSED UPON AN ADMINISTRATIVE OR JUDICIAL APPEAL. 1,192
THE ADMINISTRATOR AND SELF-INSURING EMPLOYERS ARE NOT SUBJECT TO, 1,193
BUT MAY UTILIZE, THE REPAYMENT SCHEDULE OF THIS DIVISION, OR ANY 1,194
OTHER LAWFUL MEANS, TO COLLECT PAYMENT OF COMPENSATION MADE TO A 1,195
PERSON WHO WAS NOT ENTITLED TO THE COMPENSATION DUE TO FRAUD OR 1,196
HUMAN ERROR.
(K) If a staff hearing officer or the commission fails to 1,198
issue a decision or the commission fails to refuse to hear an 1,199
appeal within the time periods required by this section, payments 1,200
to a claimant shall cease until the staff hearing officer or 1,201
commission issues a decision or hears the appeal, unless the 1,202
failure was due to the fault or neglect of the employer or the 1,203
employer agrees that the payments should continue for a longer 1,204
period of time. 1,205
(L) Except as provided in section 4123.522 of the Revised 1,207
Code, no appeal is timely filed under this section unless the 1,208
appeal is filed with the time limits set forth in this section. 1,209
(M) No person who is not an employee of the bureau or 1,211
commission or who is not by law given access to the contents of a 1,212
claims file shall have a file in the person's possession. 1,213
Section 2. That existing sections 121.03, 2317.45, 1,215
4121.12, 4121.121, 4121.125, and 4123.511 of the Revised Code are 1,217
hereby repealed.
Section 3. The Administrator of Workers' Compensation 1,219
shall submit a series of reports to the Workers' Compensation 1,220
Oversight Commission and the General Assembly semiannually during 1,221
the 1997-1999 biennium, beginning on or before October 1, 1997, 1,222
containing information relative to all of the following: 1,224
(A) The premium cost per worker, which reports the average 1,226
29
annual cost a state fund employer pays to provide workers' 1,227
compensation coverage for its employees. The premium cost per 1,228
worker is calculated by adding together an employer's total 1,229
amounts of premiums and assessments paid during a calendar year 1,230
and dividing that sum by the employer's average number of 1,231
workers. 1,232
(B) The claims cost per worker, which reports the average 1,234
annual benefit cost paid for each worker who is employed by a 1,235
state fund employer during the preceding twelve months. The 1,236
claims cost per worker is calculated by dividing an employer's 1,237
total claim expenses paid during the preceding twelve months by 1,238
the employer's average number of workers. 1,239
(C) The administrative cost per claim, which reports the 1,241
average annual administrative expense a state fund employer pays 1,242
to process a claim. The administrative cost per claim is 1,243
calculated by dividing an employer's total amount of 1,244
administrative expenses incurred during the preceding twelve 1,245
months by the total number of claims the employer processed. 1,246
(D) The direct loss ratio, which measures the relationship 1,248
between an employer's revenues and workers' compensation benefits 1,250
paid to an injured worker during the preceding twelve months; 1,251
(E) The rate of return generated by investments of the 1,253
Bureau of Workers' Compensation; 1,254
(F) The customer service index, which accounts for various 1,256
statistical measures reflecting the Bureau's customer service 1,257
levels; 1,258
(G) The Health Partnership Program performance index, 1,260
which measures the effectiveness of managed care organizations 1,261
working for the Bureau and reflects the quality of care, customer 1,262
satisfaction, and cost of care provided by the managed care 1,263
organizations; 1,264
(H) The rate of injury in the state per 1,000 workers; 1,266
(I) The average number of days the Bureau takes to 1,268
adjudicate an injured worker's medical bill fee; 1,269
30
(J) The return-to-work rate of state fund employers' 1,271
injured workers who do not receive workers' compensation benefits 1,272
for at least ninety days following their injury, which reports 1,273
the number of injured workers who returned to work as a 1,274
percentage of total injuries; 1,275
(K) The average number of days it takes for an employer or 1,277
injured worker to report an injury to the Bureau, which is 1,278
calculated by taking the average number of days between the date 1,279
of injury and the date the claim was filed with the Bureau; 1,280
(L) The percentage of indemnity claims adjudicated by the 1,282
Bureau within fourteen days of the injury. 1,283
Section 4. All items in this section are hereby 1,285
appropriated out of any moneys in the state treasury to the 1,286
credit of the designated fund. For all appropriations made in 1,287
this act, those in the first column are for fiscal year 1998, and 1,288
those in the second column are for fiscal year 1999.
BWC BUREAU OF WORKERS' COMPENSATION 1,289
FND ALI ALI TITLE FY 1998 FY 1999 1,292
Workers' Compensation Fund Group 1,294
023 855-401 William Green Lease 1,297
Payments to OBA $ 14,665,000 $ 15,465,000 1,299
4Y6 855-611 J.L. Camera Center 1,301
Rent $ 1,592,800 $ 1,681,997 1,303
4Y6 855-612 J.L. Camera Center 1,305
Operating $ 7,381,302 $ 7,345,026 1,307
023 855-407 Claims, Risk & 1,309
Medical Management $ 129,400,786 $ 123,784,337 1,311
023 855-408 Fraud Prevention $ 8,200,705 $ 8,111,383 1,315
023 855-409 Administrative 1,317
Services $ 111,629,196 $ 114,654,976 1,319
023 855-410 Attorney General 1,321
Payments $ 3,017,914 $ 3,227,422 1,323
825 855-605 DWRF $ 635,629 $ 651,961 1,327
822 855-606 Coal Workers' Fund $ 73,684 $ 75,545 1,331
31
823 855-608 Marine Industry $ 42,536 $ 43,599 1,335
826 855-609 Safety & Hygiene $ 17,981,552 $ 17,991,764 1,339
TOTAL WCF Workers' Compensation 1,340
Fund Group $ 294,621,104 $ 293,033,010 1,343
TOTAL ALL BUDGET FUND GROUPS $ 294,621,104 $ 293,033,010 1,346
Workers' Compensation Fraud Unit 1,348
The Workers' Compensation Section Fund (Fund 195) shall 1,350
receive payments from the Bureau of Workers' Compensation at the 1,351
beginning of each quarter of each fiscal year to fund expenses of 1,352
the Workers' Compensation Fraud Unit of the Attorney General's 1,353
Office. Of the foregoing appropriation item 855-410, Attorney 1,354
General Payments, $659,151 in fiscal year 1998 and $676,002 in
fiscal year 1999 shall be used to provide such payments. 1,355
William Green Lease Payments 1,357
The foregoing appropriation item 855-401, William Green 1,359
Lease Payments to OBA, shall be used for lease payments to the 1,360
Ohio Building Authority, and these appropriations shall be used 1,361
to meet all payments at the times they are required to be made 1,362
during the period from July 1, 1997, to June 30, 1999, by the 1,363
Bureau of Workers' Compensation to the Ohio Building Authority
pursuant to leases and agreements made under Chapter 152. of the 1,364
Revised Code and Section 6 of Am. Sub. H.B. 743 of the 118th 1,365
General Assembly. Of the amounts received in Fund 023, 1,366
appropriation line item 855-401, up to $30,130,000 shall be
restricted for lease rental payments to the Ohio Building 1,367
Authority. If it is determined that additional appropriations 1,368
are necessary for such purpose, such amounts are hereby 1,369
appropriated.
Notwithstanding any other provision of law to the contrary, 1,371
all tenants of the William Green Building not funded by the 1,372
Workers' Compensation Fund (Fund 023) shall pay their fair share 1,373
of the costs of lease payments to the Workers' Compensation Fund 1,374
(Fund 023) by intrastate transfer voucher.
Camera Center 1,376
32
The Camera Center Fund (Fund 4Y6) created in division (F) 1,378
of section 4121.62 of the Revised Code shall receive revenues 1,379
raised by the fees Camera Center charges for its services and 1,380
rent paid by tenants of the Center's facilities. The foregoing 1,381
appropriation item 855-611, J.L. Camera Center Rent, shall be
used to pay rent, including building operating expenses, of the 1,382
J. Leonard Camera Rehabilitation Center in Columbus. The 1,383
foregoing appropriation item 855-612, J.L. Camera Center 1,384
Operating, shall be used for all other expenses for the Center. 1,385
The Bureau of Workers' Compensation shall not consider 1,387
appropriations made to the Camera Center Fund (Fund 4Y6) when 1,388
establishing administrative cost rates.
Balances 1,390
Notwithstanding any provision of law to the contrary, the 1,392
Director of Budget and Management shall make any transfers of 1,393
cash balances between funds made necessary by the creation of new 1,394
funds, or the consolidation of funds as authorized by the General 1,395
Assembly. Within the first five days after the effective date of 1,396
this section, the administering agency head shall certify to the 1,397
Director an estimate of the amount of the cash balance to be
transferred to the receiving fund. The Director may transfer the 1,398
estimated amount when needed to make payments. Within thirty 1,399
days after the effective date of this section, the administering 1,400
agency head shall certify the final amount to the Director. The 1,401
Director shall transfer the difference between any estimated
amount previously transferred and such certified final amount. 1,402
To implement such funding changes as described above 1,404
pertaining to prior year encumbrance balances and commensurate 1,405
appropriation authority, in fiscal year 1998 the Director of 1,406
Budget and Management may cancel encumbrances outstanding on June 1,407
30, 1997, and reestablish such prior year encumbrances or parts 1,408
of encumbrances as needed in fiscal year 1998 in the appropriate
fund or appropriation line item as authorized in this act for the 1,409
same purpose and to the same vendor. As determined by the 1,410
33
Director, the appropriation authority necessary to reestablish 1,411
such prior year encumbrances in fiscal year 1998 in a different 1,412
fund or appropriation line item within an agency or between
agencies is hereby authorized. The Director shall reduce each 1,413
prior year's appropriation authority by the amount of the 1,414
encumbrances canceled in their respective funds and appropriation 1,415
line items.
Vocational Rehabilitation 1,417
The Bureau of Workers' Compensation and the Rehabilitation 1,419
Services Commission shall enter into an interagency agreement for 1,420
the provision of vocational rehabilitation services and staff to 1,421
mutually eligible clients. The Bureau shall provide $519,608 in 1,422
fiscal year 1998 and $534,157 in fiscal year 1999 from the State 1,423
Insurance Fund to fund vocational rehabilitation services and 1,424
staff in accordance with the interagency agreement. 1,425
Fund Balance 1,427
Any unencumbered cash balance in excess of $45,000,000 in 1,429
the Workers' Compensation Fund (Fund 023) on the thirtieth day of 1,430
June of each fiscal year shall be used to reduce the 1,431
administrative cost rate charged to employers to cover 1,432
appropriations for Bureau of Workers' Compensation and Industrial 1,433
Commission operations. 1,434
Section 5. Accounting 1,436
Within the limits set forth in this act, the Director of 1,439
Budget and Management shall establish accounts indicating the 1,440
source and amount of funds for each appropriation made in this
act, and shall determine the form and manner in which 1,441
appropriation accounts shall be maintained. 1,442
The appropriations made in this act are subject to all 1,444
provisions of the main operating appropriations act of the 122nd 1,445
General Assembly that are generally applicable to such 1,446
appropriations.
Section 6. Reissuance of Voided Warrants 1,448
In order to provide funds for the reissuance of voided 1,450
34
warrants pursuant to section 117.47 of the Revised Code, there is 1,451
hereby appropriated, out of moneys in the state treasury from the 1,452
fund credited as provided in section 117.47 of the Revised Code, 1,453
that amount sufficient to pay such warrants when approved by the 1,454
Office of Budget and Management. 1,455
Section 7. Judgments Against State 1,457
Any appropriations contained in this act, except those to 1,459
be applied to or used for payment of guarantees by or on behalf 1,460
of the state or for debt service on bonds, notes, or certificates 1,461
of participation, may be used pursuant to section 2743.15, 1,462
2743.19, or 2743.191 of the Revised Code for the purpose of 1,463
satisfying judgments, settlements, or administrative awards 1,464
ordered or approved by the Court of Claims in connection with 1,465
civil actions against the state. 1,466
Section 8. Reappropriation of Unexpended Balances 1,468
Notwithstanding section 131.33 of the Revised Code, 1,470
unexpended balances of appropriations and reappropriations 1,471
against which encumbrances have been lawfully incurred by a state 1,472
agency are, at the close of fiscal year 1997, to the extent of 1,473
such encumbrances, hereby reappropriated from the funds from 1,474
which they were originally appropriated and reappropriated and, 1,475
except for encumbrances for items of special order manufacture 1,476
not available on term contract or open market, made available for 1,477
the purpose of discharging such encumbrances for a period of five 1,478
months from the end of the fiscal year. Unexpended balances of 1,479
appropriations and reappropriations against which encumbrances 1,480
for items of special order manufacture not available on term 1,481
contract or in the open market have been lawfully incurred are, 1,482
at the close of the fiscal year, to the extent of such 1,483
encumbrances, hereby reappropriated and made available for the
purpose of discharging such encumbrances for a period of five 1,484
months from the end of the fiscal year or, if the Director of 1,485
Budget and Management approves, for a period of not more than 1,486
twelve months from the end of the fiscal year. 1,487
35
Any items for which unexpended balances are reappropriated 1,489
beyond a five-month period from the end of the fiscal year shall 1,490
be reported to the Controlling Board by the Director of Budget 1,491
and Management. The report on each such item shall include the 1,492
item, the cost of the item, the vendor involved, and the delivery 1,493
date. Such reports to the board shall be updated on a quarterly 1,494
basis while the encumbrance remains open. 1,495
After any such period, reappropriations made for the 1,497
purpose of discharging encumbrances for operating expenses, 1,498
defined as those encumbrances incurred for personal services, 1,499
maintenance, and equipment, are canceled. Reappropriations for 1,500
encumbrances other than operating expenses or items of special 1,501
manufacture not available on term contract or in the open market 1,502
may be extended by obtaining the approval of the Director of 1,503
Budget and Management.
Section 9. If any item of law that constitutes the whole 1,505
or part of a codified or uncodified section of law contained in 1,506
this act, or if any application of any item of law that 1,507
constitutes the whole or part of a codified or uncodified section 1,509
of law contained in this act, is held invalid, the invalidity 1,510
does not affect other items of law or applications of items of 1,511
law that can be given effect without the invalid item of law or 1,512
application. To this end, the items of law of which the codified 1,513
and uncodified sections contained in this act are composed, and 1,514
their applications, are independent and severable.
Section 10. Except as otherwise specifically provided in 1,516
this act, the codified and uncodified sections of law contained 1,517
in this act, and the items of law of which the codified and 1,518
uncodified sections of law contained in this act are composed, 1,519
are not subject to the referendum. Therefore, under Ohio 1,520
Constitution, Article II, Section 1d and section 1.471 of the 1,521
Revised Code, the codified and uncodified sections of law 1,522
contained in this act, and the items of law of which the codified 1,524
and uncodified sections of law contained in this act are 1,525
36
composed, except as otherwise specifically provided in this act, 1,526
go into immediate effect when this act becomes law.
Section 11. Sections 121.03, 2317.45, 4121.12, 4121.121, 1,528
4121.125, 4123.49, and 4123.511 of the Revised Code, as amended 1,529
or enacted by this act, and Section 12 of this act; and the items 1,530
of law of which such sections, as amended or enacted by this act, 1,531
are composed, are subject to the referendum. Therefore, under 1,532
Ohio Constitution, Article II, Section 1c and section 1.471 of 1,533
the Revised Code, such sections as amended or enacted by this 1,534
act, and the items of law of which such sections as amended or 1,535
enacted by this act are composed, take effect on the ninety-first 1,537
day after this act is filed with the Secretary of State. If, 1,538
however, a referendum petition is filed against any such section 1,539
as amended or enacted by this act, or against any item of law of 1,540
which any such section as amended or enacted by this act is 1,541
composed, the section as amended or enacted, or item of law, 1,542
unless rejected at the referendum, takes effect at the earliest 1,543
time permitted by law.
Section 12. Section 121.03 of the Revised Code is 1,546
presented in this act as a composite of the section as amended by 1,547
both Am. Sub. H.B. 7 and Am. Sub. S.B. 162 of the 121st General 1,548
Assembly, with the new language of neither of the acts shown in 1,550
capital letters. This is in recognition of the principle stated 1,551
in division (B) of section 1.52 of the Revised Code that such 1,552
amendments are to be harmonized where not substantively 1,553
irreconcilable and constitutes a legislative finding that such is 1,554
the resulting version in effect prior to the effective date of 1,555
this act.