As Introduced                            1            

123rd General Assembly                                             4            

   Regular Session                             H. B. No. 611       5            

      1999-2000                                                    6            


                      REPRESENTATIVE CATES                         8            


_________________________________________________________________   9            

                          A   B I L L                                           

             To amend sections 4121.31, 4123.511, 4123.52, and     11           

                4123.84 of the Revised Code to require the         12           

                Administrator of Workers' Compensation and the     13           

                Industrial Commission jointly to adopt rules                    

                governing the submission and sending of documents  14           

                via electronic transmission, to modify the         15           

                processing requirements for claim applications                  

                that are not written, and to declare an            16           

                emergency.                                                      




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        18           

      Section 1.  That sections 4121.31, 4123.511, 4123.52, and    20           

4123.84 of the Revised Code be amended to read as follows:         21           

      Sec. 4121.31.  (A)  The administrator of workers'            30           

compensation and the industrial commission jointly shall adopt     31           

rules covering the following general topics with respect to this   32           

chapter and Chapter 4123. of the Revised Code:                     33           

      (A)(1)  Rules that set forth any general policy and the      35           

principal operating procedures of the bureau of workers'           36           

compensation or commission, including but not limited to:          37           

      (1)(a)  Assignment to various operational units of any       39           

duties placed upon the administrator or the commission by          40           

statute;                                                                        

      (2)(b)  Procedures for decision-making;                      42           

      (3)(c)  Procedures governing the appearances of a claimant,  44           

employer, or their representatives before the agency in a          45           

hearing;                                                           46           

                                                          2      


                                                                 
      (4)(d)  Procedures that inform claimants, on request, of     48           

the status of a claim and any actions necessary to maintain the    49           

claim;                                                             50           

      (5)(e)  Time goals for activities of the bureau or           52           

commission;                                                                     

      (6)(f)  Designation of the person or persons authorized to   54           

issue directives with directives numbered and distributed from a   55           

central distribution point to persons on a list maintained for     56           

that purpose.                                                      57           

      (B)(2)  A rule barring any employee of the bureau or         59           

commission from having a workers' compensation claims file in the  60           

employee's possession unless the file is necessary to the          61           

performance of the employee's duties.                              62           

      (C)(3)  All claims, whether of a state fund or               64           

self-insuring employer, be processed in an orderly, uniform, and   65           

timely fashion.                                                    66           

      (4)  RULES GOVERNING THE SUBMISSION AND SENDING OF           68           

APPLICATIONS, NOTICES, EVIDENCE, AND OTHER DOCUMENTS BY            69           

ELECTRONIC MEANS.  THE RULES SHALL PROVIDE THAT WHERE THIS         70           

CHAPTER OR CHAPTER 4123., 4127., OR 4131. OF THE REVISED CODE      72           

REQUIRES THAT A DOCUMENT BE IN WRITING OR REQUIRES A SIGNATURE,                 

THE ADMINISTRATOR AND THE COMMISSION, TO THE EXTENT OF THEIR       74           

RESPECTIVE JURISDICTIONS, MAY APPROVE OF AND PROVIDE FOR THE       75           

ELECTRONIC SUBMISSION AND SENDING OF THOSE DOCUMENTS, AND THE USE  76           

OF AN ELECTRONIC SIGNATURE ON THOSE DOCUMENTS.                     77           

      (B)  AS USED IN THIS SECTION:                                79           

      (1)  "ELECTRONIC" INCLUDES ELECTRICAL, DIGITAL, MAGNETIC,    81           

OPTICAL, ELECTROMAGNETIC, OR ANY OTHER FORM OF TECHNOLOGY THAT     82           

ENTAILS CAPABILITIES SIMILAR TO THESE TECHNOLOGIES.                83           

      (2)  "ELECTRONIC RECORD" MEANS A RECORD GENERATED,           85           

COMMUNICATED, RECEIVED, OR STORED BY ELECTRONIC MEANS FOR USE IN   86           

AN INFORMATION SYSTEM OR FOR TRANSMISSION FROM ONE INFORMATION     87           

SYSTEM TO ANOTHER.                                                              

      (3)  "ELECTRONIC SIGNATURE" MEANS A SIGNATURE IN ELECTRONIC  89           

                                                          3      


                                                                 
FORM ATTACHED TO OR LOGICALLY ASSOCIATED WITH AN ELECTRONIC        90           

RECORD.                                                                         

      Sec. 4123.511.  (A)  Within seven days after receipt of any  100          

claim under this chapter, the bureau of workers' compensation                   

shall notify the claimant and the employer of the claimant of the  101          

receipt of the claim and of the facts alleged therein.  If the     102          

bureau receives from a person other than the claimant written or   103          

telecommunicated information OR INFORMATION COMMUNICATED VERBALLY  104          

OVER THE TELEPHONE indicating that an injury or occupational       105          

disease has occurred or been contracted with WHICH may be          106          

compensable under this chapter, the bureau shall notify the        108          

employee and the employer of the information.  If the information  109          

is provided by any method of telecommunication VERBALLY OVER THE   110          

TELEPHONE, the person providing the information shall provide      112          

written verification of the information to the bureau according    113          

to division (E) of section 4123.84 of the Revised Code.  The       114          

receipt of the information in writing, or if INITIALLY by a        115          

method of telecommunications TELEPHONE, the SUBSEQUENT written     117          

verification, and the notice by the bureau shall be considered an  118          

application for compensation under section 4123.84 or 4123.85 of   119          

the Revised Code, provided that the conditions of division (E) of  120          

section 4123.84 of the Revised Code apply to information provided  121          

by a method of telecommunication VERBALLY OVER THE TELEPHONE.      122          

Upon receipt of a claim, the bureau shall advise the claimant of   123          

the claim number assigned and the claimant's right to                           

representation in the processing of a claim or to elect no         125          

representation.  If the bureau determines that a claim is          126          

determined to be a compensable lost-time claim, the bureau shall   127          

notify the claimant and the employer of the availability of        128          

rehabilitation services.  No bureau or industrial commission       129          

employee shall directly or indirectly convey any information in    130          

derogation of this right. This section shall in no way abrogate    131          

the bureau's responsibility to aid and assist a claimant in the    132          

filing of a claim and to advise the claimant of the claimant's     133          

                                                          4      


                                                                 
rights under the law.                                                           

      The administrator of workers' compensation shall assign all  135          

claims and investigations to the bureau service office from which  136          

investigation and determination may be made most expeditiously.    137          

      The bureau shall investigate the facts concerning an injury  139          

or occupational disease and ascertain such facts in whatever       140          

manner is most appropriate and may obtain statements of the        141          

employee, employer, attending physician, and witnesses in          142          

whatever manner is most appropriate.                               143          

      (B)(1)  Except as provided in division (B)(2) of this        145          

section, in claims other than those in which the employer is a     146          

self-insuring employer, if the administrator determines under      147          

division (A) of this section that a claimant is or is not          148          

entitled to an award of compensation or benefits, the              149          

administrator shall issue an order no later than twenty-eight      151          

days after the sending of the notice under division (A) of this    152          

section, granting or denying the payment of the compensation or    153          

benefits, or both as is appropriate to the claimant.               154          

Notwithstanding the time limitation specified in this division                  

for the issuance of an order, if a medical examination of the      155          

claimant is required by statute, the administrator promptly shall  156          

schedule the claimant for that examination and shall issue an      157          

order no later than twenty-eight days after receipt of the report  158          

of the examination.  The administrator shall notify the claimant   159          

and the employer of the claimant and their respective              160          

representatives in writing of the nature of the order and the      161          

amounts of compensation and benefit payments involved.  The        162          

employer or claimant may appeal the order pursuant to division     163          

(C) of this section within fourteen days after the date of the     164          

receipt of the order.  The employer and claimant may waive, in     165          

writing, their rights to an appeal under this division.            166          

      (2)  Notwithstanding the time limitation specified in        168          

division (B)(1) of this section for the issuance of an order, if   169          

the employer certifies a claim for payment of compensation or      170          

                                                          5      


                                                                 
benefits, or both, to a claimant, and the administrator has        171          

completed the investigation of the claim, the payment of benefits  173          

or compensation, or both, as is appropriate, shall commence upon   174          

the later of the date of the certification or completion of the    175          

investigation and issuance of the order by the administrator,      176          

provided that the administrator shall issue the order no later     177          

than the time limitation specified in division (B)(1) of this      178          

section.                                                           179          

      (3)  If an appeal is made under division (B)(1) or (2) of    181          

this section, the administrator shall forward the claim file to    182          

the appropriate district hearing officer within seven days of the  183          

appeal.  In contested claims other than state fund claims, the     184          

administrator shall forward the claim within seven days of the     185          

administrator's receipt of the claim to the commission, which      187          

shall refer the claim to an appropriate district hearing officer   188          

for a hearing in accordance with division (C) of this section.     189          

      (C)  If an employer or claimant timely appeals the order of  191          

the administrator issued under division (B) of this section or in  192          

the case of other contested claims other than state fund claims,   193          

the commission shall refer the claim to an appropriate district    194          

hearing officer according to rules the commission adopts under     195          

section 4121.36 of the Revised Code.  The district hearing         196          

officer shall notify the parties and their respective              197          

representatives of the time and place of the hearing.              198          

      The district hearing officer shall hold a hearing on a       200          

disputed issue or claim within forty-five days after the filing    202          

of the appeal under this division and issue a decision within      203          

seven days after holding the hearing.  The district hearing        204          

officer shall notify the parties and their respective                           

representatives in writing of the order.  Any party may appeal an  206          

order issued under this division pursuant to division (D) of this  207          

section within fourteen days after receipt of the order under      208          

this division.                                                     209          

      (D)  Upon the timely filing of an appeal of the order of     211          

                                                          6      


                                                                 
the district hearing officer issued under division (C) of this     212          

section, the commission shall refer the claim file to an           213          

appropriate staff hearing officer according to its rules adopted   214          

under section 4121.36 of the Revised Code.  The staff hearing      215          

officer shall hold a hearing within forty-five days after the      216          

filing of an appeal under this division and issue a decision       217          

within seven days after holding the hearing under this division.   220          

The staff hearing officer shall notify the parties and their       221          

respective representatives in writing of the staff hearing                      

officer's order.  Any party may appeal an order issued under this  223          

division pursuant to division (E) of this section within fourteen  224          

days after receipt of the order under this division.               225          

      (E)  Upon the filing of a timely appeal of the order of the  227          

staff hearing officer issued under division (D) of this section,   228          

the commission or a designated staff hearing officer, on behalf    229          

of the commission, shall determine whether the commission will     231          

hear the appeal.  If the commission or the designated staff                     

hearing officer decides to hear the appeal, the commission or the  233          

designated staff hearing officer shall notify the parties and      234          

their respective representatives in writing of the time and place  235          

of the hearing.  The commission shall hold the hearing within      236          

forty-five days after the filing of the notice of appeal and,      237          

within seven days after the conclusion of the hearing, the         238          

commission shall issue its order affirming, modifying, or          239          

reversing the order issued under division (D) of this section.     240          

The commission shall notify the parties and their respective       241          

representatives in writing of the order.  If the commission or     242          

the designated staff hearing officer determines not to hear the    243          

appeal, within fourteen days after the filing of the notice of     244          

appeal, the commission or the designated staff hearing officer     245          

shall issue an order to that effect and notify the parties and                  

their respective representatives in writing of that order.         246          

      Except as otherwise provided in this chapter and Chapters    248          

4121., 4127., and 4131. of the Revised Code, any party may appeal  249          

                                                          7      


                                                                 
an order issued under this division to the court pursuant to       250          

section 4123.512 of the Revised Code within sixty days after       251          

receipt of the order, subject to the limitations contained in      252          

that section.                                                      253          

      (F)  Every notice of an appeal from an order issued under    255          

divisions (B), (C), (D), and (E) of this section shall state the   256          

names of the claimant and employer, the number of the claim, the   257          

date of the decision appealed from, and the fact that the          258          

appellant appeals therefrom.                                       259          

      (G)  All of the following apply to the proceedings under     261          

divisions (C), (D), and (E) of this section:                       262          

      (1)  The parties shall proceed promptly and without          264          

continuances except for good cause;                                265          

      (2)  The parties, in good faith, shall engage in the free    267          

exchange of information relevant to the claim prior to the         268          

conduct of a hearing according to the rules the commission adopts  269          

under section 4121.36 of the Revised Code;                         270          

      (3)  The administrator is a party and may appear and         272          

participate at all administrative proceedings on behalf of the     273          

state insurance fund.  However, in cases in which the employer is  274          

represented, the administrator shall neither present arguments     275          

nor introduce testimony that is cumulative to that presented or    276          

introduced by the employer or the employer's representative.  The  277          

administrator may file an appeal under this section on behalf of                

the state insurance fund; however, except in cases arising under   278          

section 4123.343 of the Revised Code, the administrator only may   279          

appeal questions of law or issues of fraud when the employer       280          

appears in person or by representative.                                         

      (H)  Except as provided in section 4121.63 of the Revised    282          

Code and division (J) of this section, payments of compensation    283          

to a claimant or on behalf of a claimant as a result of any order  284          

issued under this chapter shall commence upon the earlier of the   285          

following:                                                                      

      (1)  Fourteen days after the date the administrator issues   287          

                                                          8      


                                                                 
an order under division (B) of this section, unless that order is  288          

appealed;                                                          289          

      (2)  The date when the employer has waived the right to      292          

appeal a decision issued under division (B) of this section;       293          

      (3)  If no appeal of an order has been filed under this      295          

section or to a court under section 4123.512 of the Revised Code,  296          

the expiration of the time limitations for the filing of an        297          

appeal of an order;                                                298          

      (4)  The date of receipt by the employer of an order of a    300          

district hearing officer, a staff hearing officer, or the          302          

industrial commission issued under division (C), (D), or (E) of    303          

this section.                                                                   

      (I)  No medical benefits payable under this chapter or       305          

Chapter 4121., 4127., or 4131. of the Revised Code are payable     306          

until the earlier of the following:                                307          

      (1)  The date of the issuance of the staff hearing           309          

officer's order under division (D) of this section;                310          

      (2)  The date of the final administrative or judicial        312          

determination.                                                     313          

      (J)  Upon the final administrative or judicial               315          

determination under this section or section 4123.512 of the        316          

Revised Code of an appeal of an order to pay compensation, if a    317          

claimant is found to have received compensation pursuant to a      318          

prior order which is reversed upon subsequent appeal, the          319          

claimant's employer, if a self-insuring employer, or the bureau,   321          

shall withhold from any amount to which the claimant becomes       322          

entitled pursuant to any claim, past, present, or future, under    323          

Chapter 4121., 4123., 4127., or 4131. of the Revised Code, the     324          

amount of previously paid compensation to the claimant which, due  325          

to reversal upon appeal, the claimant is not entitled, pursuant    326          

to the following criteria:                                         327          

      (1)  No withholding for the first twelve weeks of temporary  329          

total disability compensation pursuant to section 4123.56 of the   330          

Revised Code shall be made;                                        331          

                                                          9      


                                                                 
      (2)  Forty per cent of all awards of compensation paid       333          

pursuant to sections 4123.56 and 4123.57 of the Revised Code,      334          

until the amount overpaid is refunded;                             335          

      (3)  Twenty-five per cent of any compensation paid pursuant  337          

to section 4123.58 of the Revised Code until the amount overpaid   338          

is refunded;                                                       339          

      (4)  If, pursuant to an appeal under section 4123.512 of     341          

the Revised Code, the court of appeals or the supreme court        342          

reverses the allowance of the claim, then no amount of any         343          

compensation will be withheld.                                     344          

      The administrator and self-insuring employers, as            346          

appropriate, are subject to the repayment schedule of this         347          

division only with respect to an order to pay compensation that    348          

was properly paid under a previous order, but which is                          

subsequently reversed upon an administrative or judicial appeal.   349          

The administrator and self-insuring employers are not subject to,  350          

but may utilize, the repayment schedule of this division, or any   351          

other lawful means, to collect payment of compensation made to a   352          

person who was not entitled to the compensation due to fraud as    353          

determined by the administrator or the industrial commission.      354          

      (K)  If a staff hearing officer or the commission fails to   356          

issue a decision or the commission fails to refuse to hear an      357          

appeal within the time periods required by this section, payments  358          

to a claimant shall cease until the staff hearing officer or       359          

commission issues a decision or hears the appeal, unless the       360          

failure was due to the fault or neglect of the employer or the     361          

employer agrees that the payments should continue for a longer     362          

period of time.                                                    363          

      (L)  Except as otherwise provided in this section or         365          

section 4123.522 of the Revised Code, no appeal is timely filed    366          

under this section unless the appeal is filed with the time        367          

limits set forth in this section.                                               

      (M)  No person who is not an employee of the bureau or       369          

commission or who is not by law given access to the contents of a  370          

                                                          10     


                                                                 
claims file shall have a file in the person's possession.          371          

      (N)  Upon application of a party who resides in an area in   374          

which an emergency or disaster is declared, the industrial         375          

commission and hearing officers of the commission may waive the    376          

time frame within which claims and appeals of claims set forth in  377          

this section must be filed upon a finding that the applicant was   378          

unable to comply with a filing deadline due to an emergency or a   379          

disaster.                                                                       

      As used in this division:                                    381          

      (1)  "Emergency" means any occasion or instance for which    383          

the governor of Ohio or the president of the United States         385          

publicly declares an emergency and orders state or federal         386          

assistance to save lives and protect property, the public health   387          

and safety, or to lessen or avert the threat of a catastrophe.     388          

      (2)  "Disaster" means any natural catastrophe or fire,       390          

flood, or explosion, regardless of the cause, that causes damage   391          

of sufficient magnitude that the governor of Ohio or the           392          

President PRESIDENT of the United States, through a public         393          

declaration, orders state or federal assistance to alleviate       395          

damage, loss, hardship, or suffering that results from the         396          

occurrence.                                                                     

      Sec. 4123.52.  The jurisdiction of the industrial            405          

commission and the authority of the administrator of workers'      406          

compensation over each case is continuing, and the commission may  407          

make such modification or change with respect to former findings   408          

or orders with respect thereto, as, in its opinion is justified.   409          

No modification or change nor any finding or award in respect of   410          

any claim shall be made with respect to disability, compensation,  411          

dependency, or benefits, after six years from the date of injury   413          

in the absence of the payment of medical benefits under this                    

chapter, in which event the modification, change, finding, or      414          

award shall be made within six years after the payment of medical  416          

benefits, or in the absence of payment of compensation under                    

section 4123.57, 4123.58, or division (A) or (B) of section        418          

                                                          11     


                                                                 
4123.56 of the Revised Code or wages in lieu of compensation in a  419          

manner so as to satisfy the requirements of section 4123.84 of                  

the Revised Code, in which event the modification, change,         420          

finding, or award shall be made within ten years from the date of  421          

the last payment of compensation or from the date of death, nor    422          

unless written notice of claim for the specific part or parts of   423          

the body injured or disabled has been given as provided in         424          

section 4123.84 or 4123.85 of the Revised Code, and the            425          

commission shall not make any modification, change, finding, or    426          

award which shall award compensation for a back period in excess   427          

of two years prior to the date of filing application therefor.     428          

This section does not affect the right of a claimant to            429          

compensation accruing subsequent to the filing of any such         430          

application, provided the application is filed within the time     431          

limit provided in this section.                                                 

      This section does not deprive the commission of its          433          

continuing jurisdiction to determine the questions raised by any   434          

application for modification of award which has been filed with    435          

the commission after June 1, 1932, and prior to the expiration of  436          

the applicable period but in respect to which no award has been    437          

granted or denied during the applicable period.                    438          

      The commission may, by general rules, provide for the        440          

destruction of files of cases in which no further action may be    441          

taken.                                                             442          

      The commission and administrator of workers' compensation    444          

each may, by general rules, provide for the retention and          445          

destruction of all other records in their possession or under      446          

their control pursuant to section 121.211 and sections 149.34 to   447          

149.36 of the Revised Code.  The bureau of workers' compensation   448          

may purchase or rent required equipment for the document           449          

retention media, as determined necessary to preserve the records.  450          

Photographs, microphotographs, microfilm, films, or other direct   451          

document retention media, when properly identified, have the same  452          

effect as the original record and may be offered in like manner    453          

                                                          12     


                                                                 
and may be received as evidence in PROCEEDINGS BEFORE THE          454          

INDUSTRIAL COMMISSION, STAFF HEARING OFFICERS, AND DISTRICT        455          

HEARING OFFICERS, AND IN any court where the original record       457          

could have been introduced.                                                     

      Sec. 4123.84.  (A)  In all cases of injury or death, claims  466          

for compensation or benefits for the specific part or parts of     467          

the body injured shall be forever barred unless, within two years  468          

after the injury or death:                                         469          

      (1)  Written notice of the specific part or parts of the     471          

body claimed to have been injured has been made to the industrial  472          

commission or the bureau of workers' compensation;                 473          

      (2)  The employer, with knowledge of a claimed compensable   475          

injury or occupational disease, has paid wages in lieu of          476          

compensation for total disability;                                 477          

      (3)  In the event the employer is a self-insuring employer,  479          

one of the following has occurred:                                 480          

      (a)  Written notice of the specific part or parts of the     482          

body claimed to have been injured has been given to the            483          

commission or bureau or the employer has furnished treatment by a  484          

licensed physician in the employ of an employer, provided,         485          

however, that the furnishing of such treatment shall not           486          

constitute a recognition of a claim as compensable, but shall do   487          

no more than satisfy the requirements of this section;             488          

      (b)  Compensation or benefits have been paid or furnished    490          

equal to or greater than is provided for in sections 4123.52,      491          

4123.55 to 4123.62, and 4123.64 to 4123.67 of the Revised Code.    492          

      (4)  Written notice of death has been given to the           494          

commission or bureau.                                                           

      (B)  The bureau shall provide printed notices quoting in     496          

full division (A) of this section, and every self-insuring         497          

employer shall post and maintain at all times one or more of the   498          

notices in conspicuous places in the workshop or places of         499          

employment.                                                        500          

      (C)  The commission has continuing jurisdiction as set       502          

                                                          13     


                                                                 
forth in section 4123.52 of the Revised Code over a claim which    503          

meets the requirement of this section, including jurisdiction to   504          

award compensation or benefits for loss or impairment of bodily    505          

functions developing in a part or parts of the body not specified  506          

pursuant to division (A)(1) of this section, if the commission     507          

finds that the loss or impairment of bodily functions was due to   508          

and a result of or a residual of the injury to one of the parts    509          

of the body set forth in the written notice filed pursuant to      510          

division (A)(1) of this section.                                   511          

      (D)  Any claim pending before the administrator, the         513          

commission, or a court on December 11, 1967, in which the remedy   514          

is affected by this section is governed by this section.           515          

      (E)  Notwithstanding the requirement that the notice         517          

required to be given to the bureau, commission, or employer under  518          

this section is to be in writing, the bureau may accept, assign a  519          

claim number, and process a CLAIM WHEN notice IS provided by any   521          

method of telecommunication VERBALLY OVER THE TELEPHONE.           522          

Immediately upon receipt of the telecommunicated notice PROVIDED   524          

VERBALLY OVER THE TELEPHONE, the bureau shall send a written       525          

notice to the employer of the bureau's receipt of the              526          

telecommunicated VERBAL notice.  Within fifteen days after         527          

receipt of the BUREAU'S WRITTEN notice, the employer may in        529          

writing either verify or not verify the telecommunicated VERBAL    530          

notice.  If the bureau does not receive the written notification   532          

from the employer or receives a written notification verifying     533          

the telecommunicated VERBAL notice within such time period, the    535          

claim is validly filed and such telecommunicated VERBAL notice     536          

tolls the statute of limitations in regard to the claim filed and  537          

is considered to meet the requirements of written notice required  538          

by this section.                                                                

      (F)  As used in division (A)(3)(b) of this section,          540          

"benefits" means payments by a self-insuring employer to, or on    541          

behalf of, an employee for a hospital bill, a medical bill to a    542          

licensed physician or hospital, or an orthopedic or prosthetic     543          

                                                          14     


                                                                 
device.                                                            544          

      Section 2.  That existing sections 4121.31, 4123.511,        546          

4123.52, and 4123.84 of the Revised Code are hereby repealed.      547          

      Section 3.  This act is hereby declared to be an emergency   549          

measure necessary for the immediate preservation of the public     550          

peace, health, and safety.  The reason for such necessity is to    551          

enable the Bureau of Workers' Compensation to continue processing  552          

claims and the Industrial Commission to continue adjudicating      553          

claims in a timely and efficient manner and to ensure that         554          

unnecessary lapses and avoidable delays do not interfere with the  555          

continuing care and treatment of claimants throughout the state.   556          

Therefore, this act shall go into immediate effect.                557