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To amend sections 121.52, 4121.12, 4121.125, 4121.62, | 1 |
4121.70, 4121.75, 4123.29, 4123.34, 4123.35, and | 2 |
4123.82 of the Revised Code and to amend Section | 3 |
512.45 of Am. Sub. H.B. 100 of the 127th General | 4 |
Assembly to create the Deputy Inspector General | 5 |
for the Bureau of Workers' Compensation and | 6 |
Industrial Commission Fund; to create the | 7 |
Competitive Workers' Compensation Task Force; to | 8 |
make other changes to the Workers' Compensation | 9 |
Law; to make appropriations for the Bureau of | 10 |
Workers' Compensation and for the Workers' | 11 |
Compensation Council for the biennium beginning | 12 |
July 1, 2009, and ending June 30, 2011; and to | 13 |
provide authorization and conditions for the | 14 |
operation of the Bureau's and the Council's | 15 |
programs. | 16 |
Section 101. That sections 121.52, 4121.12, 4121.125, | 17 |
4121.62, 4121.70, 4121.75, 4123.29, and 4123.34, 4123.35, and | 18 |
4123.82 of the Revised Code be amended to read as follows: | 19 |
Sec. 121.52. There is hereby created in the office of the | 20 |
inspector general the office of deputy inspector general for the | 21 |
bureau of workers' compensation and industrial commission. The | 22 |
inspector general shall appoint the deputy inspector general, and | 23 |
the deputy inspector general shall serve at the pleasure of the | 24 |
inspector general. A person employed as the deputy inspector | 25 |
general shall have the same qualifications as those specified in | 26 |
section 121.49 of the Revised Code for the inspector general. The | 27 |
inspector general shall provide professional and clerical | 28 |
assistance to the deputy inspector general. | 29 |
The deputy inspector general for the bureau of workers' | 30 |
compensation and the industrial commission shall investigate | 31 |
wrongful acts or omissions that have been committed by or are | 32 |
being committed by officers or employees of the bureau of workers' | 33 |
compensation and the industrial commission. The deputy inspector | 34 |
general has the same powers and duties regarding matters | 35 |
concerning the bureau and the commission as those specified in | 36 |
sections 121.42, 121.43, and 121.45 of the Revised Code for the | 37 |
inspector general. Complaints may be filed with the deputy | 38 |
inspector general in the same manner as prescribed for complaints | 39 |
filed with the inspector general under section 121.46 of the | 40 |
Revised Code. All investigations conducted and reports issued by | 41 |
the deputy inspector general are subject to section 121.44 of the | 42 |
Revised Code. | 43 |
There is hereby created in the state treasury the deputy | 44 |
inspector general for the bureau of workers' compensation and | 45 |
industrial commission fund, which shall consist of moneys | 46 |
deposited into it that the inspector general receives from the | 47 |
administrator of workers' compensation and receives from the | 48 |
industrial commission in accordance with this section. The | 49 |
inspector general shall use the fund to pay the costs incurred | 50 |
by the deputy inspector general in performing the duties of the | 51 |
deputy inspector general as required under this section. | 52 |
The members of the industrial commission, bureau of workers' | 53 |
compensation board of directors, workers' compensation audit | 54 |
committee, workers' compensation actuarial committee, and workers' | 55 |
compensation investment committee, and the administrator | 56 |
57 | |
and the bureau shall cooperate with and provide assistance to the | 58 |
deputy inspector general in the performance of any investigation | 59 |
conducted by the deputy inspector general. In particular, those | 60 |
persons shall make their premises, equipment, personnel, books, | 61 |
records, and papers readily available to the deputy inspector | 62 |
general. In the course of an investigation, the deputy inspector | 63 |
general may question any person employed by the industrial | 64 |
commission or the administrator and any person transacting | 65 |
business with the industrial commission, the board, the audit | 66 |
committee, the actuarial committee, the investment committee, the | 67 |
administrator, or the bureau and may inspect and copy any books, | 68 |
records, or papers in the possession of those persons or entities, | 69 |
taking care to preserve the confidentiality of information | 70 |
contained in responses to questions or the books, records, or | 71 |
papers that are made confidential by law. | 72 |
In performing any investigation, the deputy inspector general | 73 |
shall avoid interfering with the ongoing operations of the | 74 |
entities being investigated, except insofar as is reasonably | 75 |
necessary to successfully complete the investigation. | 76 |
At the conclusion of an investigation conducted by the deputy | 77 |
inspector general for the bureau of workers' compensation and | 78 |
industrial commission, the deputy inspector general shall deliver | 79 |
to the board, the administrator, the industrial commission, and | 80 |
the governor any case for which remedial action is necessary. The | 81 |
deputy inspector general shall maintain a public record of the | 82 |
activities of the office of the deputy inspector general to the | 83 |
extent permitted under this section, ensuring that the rights of | 84 |
the parties involved in each case are protected. The inspector | 85 |
general shall include in the annual report required under section | 86 |
121.48 of the Revised Code a summary of the activities of the | 87 |
deputy inspector general during the previous year. | 88 |
No person shall disclose any information that is designated | 89 |
as confidential in accordance with section 121.44 of the Revised | 90 |
Code or any confidential information that is acquired in the | 91 |
course of an investigation conducted under this section | 92 |
93 | |
disclosure of that information. | 94 |
Sec. 4121.12. (A) There is hereby created the bureau of | 95 |
workers' compensation board of directors consisting of eleven | 96 |
members to be appointed by the governor with the advice and | 97 |
consent of the senate. One member shall be an individual who, on | 98 |
account of the individual's previous vocation, employment, or | 99 |
affiliations, can be classed as a representative of employees; two | 100 |
members shall be individuals who, on account of their previous | 101 |
vocation, employment, or affiliations, can be classed as | 102 |
representatives of employee organizations and at least one of | 103 |
these two individuals shall be a member of the executive committee | 104 |
of the largest statewide labor federation; three members shall be | 105 |
individuals who, on account of their previous vocation, | 106 |
employment, or affiliations, can be classed as representatives of | 107 |
employers, one of whom represents self-insuring employers, one of | 108 |
whom is a state fund employer who employs one hundred or more | 109 |
employees, and one of whom is a state fund employer who employs | 110 |
less than one hundred employees; two members shall be individuals | 111 |
who, on account of their vocation, employment, or affiliations, | 112 |
can be classed as investment and securities experts who have | 113 |
direct experience in the management, analysis, supervision, or | 114 |
investment of assets and are residents of this state; one member | 115 |
who shall be a certified public accountant; one member who shall | 116 |
be an actuary who is a member in good standing with the American | 117 |
academy of actuaries or who is an associate or fellow with the | 118 |
society of actuaries; and one member shall represent the public | 119 |
and also be an individual who, on account of the individual's | 120 |
previous vocation, employment, or affiliations, cannot be classed | 121 |
as either predominantly representative of employees or of | 122 |
employers. The governor shall select the chairperson of the board | 123 |
who shall serve as chairperson at the pleasure of the governor. | 124 |
None of the members of the board, within one year immediately | 125 |
preceding the member's appointment, shall have been employed by | 126 |
the bureau of workers' compensation or by any person, partnership, | 127 |
or corporation that has provided to the bureau services of a | 128 |
financial or investment nature, including the management, | 129 |
analysis, supervision, or investment of assets. | 130 |
(B) Of the initial appointments made to the board, the | 131 |
governor shall appoint the member who represents employees, one | 132 |
member who represents employers, and the member who represents | 133 |
the public to a term
ending one year after | 134 |
135 | |
one member who represents employee organizations, one member who | 136 |
is an investment and securities expert, and the member who is a | 137 |
certified public accountant to a term ending two years after | 138 |
139 | |
represents employers, one member who represents employee | 140 |
organizations, one member who is an investment and securities | 141 |
expert, and the member who is an actuary to a term ending three | 142 |
years after | 143 |
Thereafter, terms of office shall be for three years, with each | 144 |
term ending on the same day of the same month as did the term that | 145 |
it succeeds. Each member shall hold office from the date of the | 146 |
member's appointment until the end of the term for which the | 147 |
member was appointed. | 148 |
Members may be reappointed. Any member appointed to fill a | 149 |
vacancy occurring prior to the expiration date of the term for | 150 |
which the member's predecessor was appointed shall hold office as | 151 |
a member for the remainder of that term. A member shall continue | 152 |
in office subsequent to the expiration date of the member's term | 153 |
until a successor takes office or until a period of sixty days has | 154 |
elapsed, whichever occurs first. | 155 |
(C) In making appointments to the board, the governor shall | 156 |
select the members from the list of names submitted by the | 157 |
workers' compensation board of directors nominating committee | 158 |
pursuant to this division. The nominating committee shall submit | 159 |
to the governor a list containing four separate names for each of | 160 |
the members on the board. Within fourteen days after the | 161 |
submission of the list, the governor shall appoint individuals | 162 |
from the list. | 163 |
| 164 |
occurring as a result of the expiration of a term and within | 165 |
thirty days after other vacancies occurring on the board, the | 166 |
nominating committee shall submit an initial list containing four | 167 |
names for each vacancy. Within fourteen days after the submission | 168 |
of the initial list, the governor either shall appoint | 169 |
individuals from that list or request the nominating committee to | 170 |
submit another list of four names for each member the governor | 171 |
has not appointed from the initial list, which list the | 172 |
nominating committee shall submit to the governor within fourteen | 173 |
days after the governor's request. The governor then shall | 174 |
appoint, within seven days after the submission of the second | 175 |
list, one of the individuals from either list to fill the vacancy | 176 |
for which the governor has not made an appointment from the | 177 |
initial list. If the governor appoints an individual to fill a | 178 |
vacancy occurring as a result of the expiration of a term, the | 179 |
individual appointed shall begin serving as a member of the board | 180 |
when the term for which the individual's predecessor was appointed | 181 |
expires or immediately upon appointment by the governor, whichever | 182 |
occurs later. With respect to the filling of vacancies, the | 183 |
nominating committee shall provide the governor with a list of | 184 |
four individuals who are, in the judgment of the nominating | 185 |
committee, the most fully qualified to accede to membership on | 186 |
the board. | 187 |
In order for the name of an individual to be submitted to the | 188 |
governor under this division, the nominating committee shall | 189 |
approve the individual by an affirmative vote of a majority of its | 190 |
members. | 191 |
(D) All members of the board shall receive their reasonable | 192 |
and necessary expenses pursuant to section 126.31 of the Revised | 193 |
Code while engaged in the performance of their duties as members | 194 |
and also shall receive an annual salary not to exceed sixty | 195 |
thousand dollars in total, payable on the following basis: | 196 |
(1) Except as provided in division (D)(2) of this section, a | 197 |
member shall receive two thousand five hundred dollars during a | 198 |
month in which the member attends one or more meetings of the | 199 |
board and shall receive no payment during a month in which the | 200 |
member attends no meeting of the board. | 201 |
(2) A member may receive no more than thirty thousand dollars | 202 |
per year to compensate the member for attending meetings of the | 203 |
board, regardless of the number of meetings held by the board | 204 |
during a year or the number of meetings in excess of twelve within | 205 |
a year that the member attends. | 206 |
(3) Except as provided in division (D)(4) of this section, if | 207 |
a member serves on the workers' compensation audit committee, | 208 |
workers' compensation actuarial committee, or the workers' | 209 |
compensation investment committee, the member shall receive two | 210 |
thousand five hundred dollars during a month in which the member | 211 |
attends one or more meetings of the committee on which the member | 212 |
serves and shall receive no payment during any month in which the | 213 |
member attends no meeting of that committee. | 214 |
(4) A member may receive no more than thirty thousand dollars | 215 |
per year to compensate the member for attending meetings of any of | 216 |
the committees specified in division (D)(3) of this section, | 217 |
regardless of the number of meetings held by a committee during a | 218 |
year or the number of committees on which a member serves. | 219 |
The chairperson of the board shall set the meeting dates of | 220 |
the board as necessary to perform the duties of the board under | 221 |
this chapter and Chapters 4123., 4125., 4127., 4131., and 4167. | 222 |
of the Revised Code. The board shall meet at least twelve times a | 223 |
year. The administrator of workers' compensation shall provide | 224 |
professional and clerical assistance to the board, as the board | 225 |
considers appropriate. | 226 |
(E) Before entering upon the duties of office, each appointed | 227 |
member of the board shall take an oath of office as required by | 228 |
sections 3.22 and 3.23 of the Revised Code and file in the office | 229 |
of the secretary of state the bond required under section 4121.127 | 230 |
of the Revised Code. | 231 |
(F) The board shall: | 232 |
(1) Establish the overall administrative policy for the | 233 |
bureau for the purposes of this chapter and Chapters 4123., 4125., | 234 |
4127., 4131., and 4167. of the Revised Code; | 235 |
(2) Review progress of the bureau in meeting its cost and | 236 |
quality objectives and in complying with this chapter and Chapters | 237 |
4123., 4125., 4127., 4131., and 4167. of the Revised Code; | 238 |
(3) Submit an annual report to the president of the senate, | 239 |
the speaker of the house of representatives, the governor, and the | 240 |
workers' compensation council and include all of the following in | 241 |
that report: | 242 |
(a) An evaluation of the cost and quality objectives of the | 243 |
bureau; | 244 |
(b) A statement of the net assets available for the provision | 245 |
of compensation and benefits under this chapter and Chapters | 246 |
4123., 4127., and 4131. of the Revised Code as of the last day of | 247 |
the fiscal year; | 248 |
(c) A statement of any changes that occurred in the net | 249 |
assets available, including employer premiums and net investment | 250 |
income, for the provision of compensation and benefits and payment | 251 |
of administrative expenses, between the first and last day of the | 252 |
fiscal year immediately preceding the date of the report; | 253 |
(d) The following information for each of the six consecutive | 254 |
fiscal years occurring previous to the report: | 255 |
(i) A schedule of the net assets available for compensation | 256 |
and benefits; | 257 |
(ii) The annual cost of the payment of compensation and | 258 |
benefits; | 259 |
(iii) Annual administrative expenses incurred; | 260 |
(iv) Annual employer premiums allocated for the provision of | 261 |
compensation and benefits. | 262 |
(e) A description of any significant changes that occurred | 263 |
during the six years for which the board provided the information | 264 |
required under division (F)(3)(d) of this section that affect the | 265 |
ability of the board to compare that information from year to | 266 |
year. | 267 |
(4) Review all independent financial audits of the bureau. | 268 |
The administrator shall provide access to records of the bureau to | 269 |
facilitate the review required under this division. | 270 |
(5) Study issues as requested by the administrator or the | 271 |
governor; | 272 |
(6) Contract with all of the following: | 273 |
(a) An independent actuarial firm to assist the board in | 274 |
making recommendations to the administrator regarding premium | 275 |
rates; | 276 |
(b) An outside investment counsel to assist the workers' | 277 |
compensation investment committee in fulfilling its duties; | 278 |
(c) An independent fiduciary counsel to assist the board in | 279 |
the performance of its duties. | 280 |
(7) Approve the investment policy developed by the workers' | 281 |
compensation investment committee pursuant to section 4121.129 of | 282 |
the Revised Code if the policy satisfies the requirements | 283 |
specified in section 4123.442 of the Revised Code. | 284 |
(8) Review and publish the investment policy no less than | 285 |
annually and make copies available to interested parties. | 286 |
(9) Prohibit, on a prospective basis, any specific investment | 287 |
it finds to be contrary to the investment policy approved by the | 288 |
board. | 289 |
(10) Vote to open each investment class and allow the | 290 |
administrator to invest in an investment class only if the board, | 291 |
by a majority vote, opens that class; | 292 |
(11) After opening a class but prior to the administrator | 293 |
investing in that class, adopt rules establishing due diligence | 294 |
standards for employees of the bureau to follow when investing in | 295 |
that class and establish policies and procedures to review and | 296 |
monitor the performance and value of each investment class; | 297 |
(12) Submit a report annually on the performance and value of | 298 |
each investment class to the governor, the president and minority | 299 |
leader of the senate, | 300 |
house of representatives, and the workers' compensation council. | 301 |
(13) Advise and consent on all of the following: | 302 |
(a) Administrative rules the administrator submits to it | 303 |
pursuant to division (B)(5) of section 4121.121 of the Revised | 304 |
Code for the classification of occupations or industries, for | 305 |
premium rates and contributions, for the amount to be credited to | 306 |
the surplus fund, for rules and systems of rating, rate revisions, | 307 |
and merit rating; | 308 |
(b) The duties and authority conferred upon the administrator | 309 |
pursuant to section 4121.37 of the Revised Code; | 310 |
(c) Rules the administrator adopts for the health partnership | 311 |
program and the qualified health plan system, as provided in | 312 |
sections 4121.44, 4121.441, and 4121.442 of the Revised Code; | 313 |
(d) Rules the administrator submits to it pursuant to Chapter | 314 |
4167. of the Revised Code regarding the public employment risk | 315 |
reduction program and the protection of public health care workers | 316 |
from exposure incidents. | 317 |
As used in this division, "public health care worker" and | 318 |
"exposure incident" have the same meanings as in section 4167.25 | 319 |
of the Revised Code. | 320 |
(14) Perform all duties required under this chapter and | 321 |
Chapters 4123., 4125., 4127., 4131., and 4167. of the Revised | 322 |
Code; | 323 |
(15) Meet with the governor on an annual basis to discuss the | 324 |
administrator's performance of the duties specified in this | 325 |
chapter and Chapters 4123., 4125., 4127., 4131., and 4167. of the | 326 |
Revised Code; | 327 |
(16) Develop and participate in a bureau of workers' | 328 |
compensation board of directors education program that consists of | 329 |
all of the following: | 330 |
(a) An orientation component for newly appointed members; | 331 |
(b) A continuing education component for board members who | 332 |
have served for at least one year; | 333 |
(c) A curriculum that includes education about each of the | 334 |
following topics: | 335 |
(i) Board member duties and responsibilities; | 336 |
(ii) Compensation and benefits paid pursuant to this chapter | 337 |
and Chapters 4123., 4127., and 4131. of the Revised Code; | 338 |
(iii) Ethics; | 339 |
(iv) Governance processes and procedures; | 340 |
(v) Actuarial soundness; | 341 |
(vi) Investments; | 342 |
(vii) Any other subject matter the board believes is | 343 |
reasonably related to the duties of a board member. | 344 |
(17) Submit the program developed pursuant to division | 345 |
(F)(16) of this section to the workers' compensation council for | 346 |
approval; | 347 |
(18) Hold all sessions, classes, and other events for the | 348 |
program developed pursuant to division (F)(16) of this section in | 349 |
this state. | 350 |
(G) The board may do both of the following: | 351 |
(1) Vote to close any investment class; | 352 |
(2) Create any committees in addition to the workers' | 353 |
compensation audit committee, the workers' compensation actuarial | 354 |
committee, and the workers' compensation investment committee that | 355 |
the board determines are necessary to assist the board in | 356 |
performing its duties. | 357 |
(H) The office of a member of the board who is convicted of | 358 |
or pleads guilty to a felony, a theft offense as defined in | 359 |
section 2913.01 of the Revised Code, or a violation of section | 360 |
102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31, | 361 |
2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be | 362 |
deemed vacant. The vacancy shall be filled in the same manner as | 363 |
the original appointment. A person who has pleaded guilty to or | 364 |
been convicted of an offense of that nature is ineligible to be a | 365 |
member of the board. A member who receives a bill of indictment | 366 |
for any of the offenses specified in this section shall be | 367 |
automatically suspended from the board pending resolution of the | 368 |
criminal matter. | 369 |
(I) For the purposes of division (G)(1) of section 121.22 of | 370 |
the Revised Code, the meeting between the governor and the board | 371 |
to review the administrator's performance as required under | 372 |
division (F)(15) of this section shall be considered a meeting | 373 |
regarding the employment of the administrator. | 374 |
Sec. 4121.125. (A) The bureau of workers' compensation board | 375 |
of directors, based upon recommendations of the workers' | 376 |
compensation actuarial committee, may contract with one or more | 377 |
outside actuarial firms and other professional persons, as the | 378 |
board determines necessary, to assist the board in measuring the | 379 |
performance of Ohio's workers' compensation system and in | 380 |
comparing Ohio's workers' compensation system to other state and | 381 |
private workers' compensation systems. The board, actuarial firm | 382 |
or firms, and professional persons shall make such measurements | 383 |
and comparisons using accepted insurance industry standards, | 384 |
including, but not limited to, standards promulgated by the | 385 |
National Council on Compensation Insurance. | 386 |
(B) The board may contract with one or more outside firms to | 387 |
conduct management and financial audits of the workers' | 388 |
compensation system, including audits of the reserve fund | 389 |
belonging to the state insurance fund, and to establish objective | 390 |
quality management principles and methods by which to review the | 391 |
performance of the workers' compensation system. | 392 |
(C) The board shall do all of the following: | 393 |
(1) Contract to have prepared annually by or under the | 394 |
supervision of an actuary a report that meets the requirements | 395 |
specified under division (E) of this section and that consists of | 396 |
an actuarial valuation of the assets, liabilities, and funding | 397 |
requirements of the state insurance fund and all other funds | 398 |
specified in this chapter and Chapters 4123., 4127., and 4131. of | 399 |
the Revised Code; | 400 |
(2) Require that the actuary or person supervised by an | 401 |
actuary referred to in division (C)(1) of this section complete | 402 |
the valuation in accordance with the actuarial standards of | 403 |
practice promulgated by the actuarial standards board of the | 404 |
American academy of actuaries; | 405 |
(3) Submit the report referred to in division (C)(1) of this | 406 |
section to the workers' compensation council and the standing | 407 |
committees of the house of representatives and the senate with | 408 |
primary responsibility for workers' compensation legislation | 409 |
410 | |
following the year for which the valuation was made; | 411 |
(4) Have an actuary or a person who provides actuarial | 412 |
services under the supervision of an actuary, at such time as the | 413 |
board determines, and at least once during the five-year period | 414 |
that commences on | 415 |
10, 2007, and once within each five-year period thereafter, | 416 |
conduct an actuarial investigation of the experience of | 417 |
employers, the mortality, service, and injury rate of employees, | 418 |
and the payment of temporary total disability, permanent partial | 419 |
disability, and permanent total disability under sections 4123.56 | 420 |
to 4123.58 of the Revised Code to update the actuarial | 421 |
assumptions used in the report required by division (C)(1) of | 422 |
this section; | 423 |
(5) Submit the report required under division (F) of this | 424 |
section to the council and the standing committees of the house of | 425 |
representatives and the senate with primary responsibility for | 426 |
workers' compensation legislation not later than the first day of | 427 |
November following the fifth year of the period that the report | 428 |
covers; | 429 |
(6) Have prepared by or under the supervision of an actuary | 430 |
an actuarial analysis of any introduced legislation expected to | 431 |
have a measurable financial impact on the workers' compensation | 432 |
system; | 433 |
(7) Submit the report required under division (G) of this | 434 |
section to the legislative service commission, the standing | 435 |
committees of the house of representatives and the senate with | 436 |
primary responsibility for workers' compensation legislation, and | 437 |
the council not later than sixty days after the date of | 438 |
introduction of the legislation. | 439 |
(D) The administrator of workers' compensation and the | 440 |
industrial commission shall compile information and provide access | 441 |
to records of the bureau and the industrial commission to the | 442 |
board to the extent necessary for fulfillment of both of the | 443 |
following requirements: | 444 |
(1) Conduct of the measurements and comparisons described in | 445 |
division (A) of this section; | 446 |
(2) Conduct of the management and financial audits and | 447 |
establishment of the principles and methods described in division | 448 |
(B) of this section. | 449 |
(E) The firm or person with whom the board contracts pursuant | 450 |
to division (C)(1) of this section shall prepare a report of the | 451 |
valuation and submit the report to the board. The firm or person | 452 |
shall include all of the following information in the report that | 453 |
is required under division (C)(1) of this section: | 454 |
(1) A summary of the compensation and benefit provisions | 455 |
evaluated; | 456 |
(2) A summary of the census data and financial information | 457 |
used in the valuation; | 458 |
(3) A description of the actuarial assumptions, actuarial | 459 |
cost method, and asset valuation method used in the valuation; | 460 |
(4) A summary of findings that includes a statement of the | 461 |
actuarial accrued compensation and benefit liabilities and | 462 |
unfunded actuarial accrued compensation and benefit liabilities; | 463 |
(5) A schedule showing the effect of any changes in the | 464 |
compensation and benefit provisions, actuarial assumptions, or | 465 |
cost methods since the previous annual actuarial valuation report | 466 |
was submitted to the board. | 467 |
(F) The actuary or person whom the board designates to | 468 |
conduct an actuarial investigation under division (C)(4) of this | 469 |
section shall prepare a report of the actuarial investigation and | 470 |
shall submit the report to the board. The actuary or person shall | 471 |
prepare the report and make any recommended changes in actuarial | 472 |
assumptions in accordance with the actuarial standards of practice | 473 |
promulgated by the actuarial standards board of the American | 474 |
academy of actuaries. The actuary or person shall include all of | 475 |
the following information in the report: | 476 |
(1) A summary of relevant decrement and economic assumption | 477 |
experience; | 478 |
(2) Recommended changes in actuarial assumptions to be used | 479 |
in subsequent actuarial valuations required by division (C)(1) of | 480 |
this section; | 481 |
(3) A measurement of the financial effect of the recommended | 482 |
changes in actuarial assumptions. | 483 |
(G) The actuary or person whom the board designates to | 484 |
conduct the actuarial analysis under division (C)(6) of this | 485 |
section shall prepare a report of the actuarial analysis and shall | 486 |
submit that report to the board. The actuary or person shall | 487 |
complete the analysis in accordance with the actuarial standards | 488 |
of practice promulgated by the actuarial standards board of the | 489 |
American academy of actuaries. The actuary or person shall include | 490 |
all of the following information in the report: | 491 |
(1) A summary of the statutory changes being evaluated; | 492 |
(2) A description of or reference to the actuarial | 493 |
assumptions and actuarial cost method used in the report; | 494 |
(3) A description of the participant group or groups included | 495 |
in the report; | 496 |
(4) A statement of the financial impact of the legislation, | 497 |
including the resulting increase, if any, in employer premiums, in | 498 |
actuarial accrued liabilities, and, if an increase in actuarial | 499 |
accrued liabilities is predicted, the per cent of premium increase | 500 |
that would be required to amortize the increase in those | 501 |
liabilities as a level per cent of employer premiums over a period | 502 |
not to exceed thirty years. | 503 |
(5) A statement of whether the employer premiums paid to the | 504 |
bureau of workers' compensation after the proposed change is | 505 |
enacted are expected to be sufficient to satisfy the funding | 506 |
objectives established by the board. | 507 |
(H) The board may, at any time, request an actuary to make | 508 |
any studies or actuarial valuations to determine the adequacy of | 509 |
the premium rates established by the administrator in accordance | 510 |
with sections 4123.29 and 4123.34 of the Revised Code, and may | 511 |
adjust those rates as recommended by the actuary. | 512 |
(I) The board shall have an independent auditor, at least | 513 |
once every ten years, conduct a fiduciary performance audit of the | 514 |
investment program of the bureau of workers' compensation. That | 515 |
audit shall include an audit of the investment policies approved | 516 |
by the board and investment procedures of the bureau. The board | 517 |
shall submit a copy of that audit to the auditor of state. | 518 |
(J) The administrator, with the advice and consent of the | 519 |
board, shall employ an internal auditor who shall report findings | 520 |
directly to the board, workers' compensation audit committee, and | 521 |
administrator, except that the internal auditor shall not report | 522 |
findings directly to the administrator when those findings involve | 523 |
malfeasance, misfeasance, or nonfeasance on the part of the | 524 |
administrator. The board and the workers' compensation audit | 525 |
committee may request and review internal audits conducted by the | 526 |
internal auditor. | 527 |
(K) The administrator shall pay the expenses incurred by the | 528 |
board to effectively fulfill its duties and exercise its powers | 529 |
under this section as the administrator pays other operating | 530 |
expenses of the bureau. | 531 |
Sec. 4121.62. (A) The authority granted to the administrator | 532 |
of workers' compensation pursuant to sections 4121.61 to 4121.69 | 533 |
of the Revised Code includes the authority to do all of the | 534 |
following: | 535 |
(1) Contract with any public or private person for the | 536 |
rendition of rehabilitation services; | 537 |
(2) Take actions and utilize money in the state insurance | 538 |
fund as necessary to obtain federal funds and assistance in the | 539 |
maximum amounts and most advantageous proportions and terms | 540 |
possible; | 541 |
(3) Conduct rehabilitation educational programs for employers | 542 |
and employees | 543 |
| 544 |
545 | |
546 |
(B) | 547 |
548 | |
549 | |
550 | |
551 | |
552 | |
553 | |
554 | |
555 | |
556 |
| 557 |
558 | |
559 | |
560 | |
561 | |
562 | |
563 | |
564 | |
565 |
| 566 |
Code shall be interpreted to grant authority to the administrator | 567 |
to require a claimant to utilize a public provider of | 568 |
rehabilitation services, counseling, or training. | 569 |
Sec. 4121.70. (A) There is hereby created the | 570 |
labor-management government
advisory council consisting of | 571 |
fifteen members appointed as follows: | 572 |
(1) The governor, with the advice and consent of the senate, | 573 |
shall appoint three members who, by training and vocation, are | 574 |
representative of labor and three members who, by training and | 575 |
vocation, are representative of employers. | 576 |
(2) Ex officio, the chairpersons of the standing committees | 577 |
of the house of representatives and the senate to which | 578 |
legislation concerned with workers' compensation is customarily | 579 |
referred. A chairperson may designate the vice-chairperson of the | 580 |
committee to serve instead. | 581 |
(3) One person who by training and vocation represents labor | 582 |
and one person who by training and vocation represents employers | 583 |
of differing political parties appointed by the speaker of the | 584 |
house of representatives. | 585 |
(4) One person who by training and vocation represents labor | 586 |
and one person who by training and vocation represents employers | 587 |
of differing political parties appointed by the president of the | 588 |
senate. | 589 |
(5) One person who by training and vocation represents | 590 |
nonprofit vocational rehabilitation services providers that | 591 |
deliver services to injured workers, appointed by the speaker of | 592 |
the house of representatives; | 593 |
(6) One person who by training and vocation represents | 594 |
nonprofit vocational rehabilitation services providers that | 595 |
deliver services to injured workers, appointed by the president of | 596 |
the senate; | 597 |
(7) The governor, with the advice and consent of the senate, | 598 |
shall apoint one member who, by training and vocation, represents | 599 |
a nonprofit association of vocational rehabilitation services | 600 |
providers that deliver services to injured workers. | 601 |
(B) Members appointed by the governor shall serve for a term | 602 |
of six years with each term ending on the same day of the year in | 603 |
which the member was first appointed, except that each member | 604 |
shall serve for a period of sixty additional days at the end of | 605 |
the member's term or until the member's successor is appointed and | 606 |
qualifies, whichever date occurs first. Of the members first | 607 |
appointed to the council by the governor, one member each | 608 |
representing labor and management shall serve an initial term of | 609 |
two years, one member each representing labor and management shall | 610 |
serve a term of four years, and the remaining two members shall | 611 |
serve full six-year terms. The members initially appointed by the | 612 |
speaker of the house of representatives and the president of the | 613 |
senate shall serve a term of six years. Thereafter, members shall | 614 |
be appointed to and serve full six-year terms. Members are | 615 |
eligible for reappointment to any number of additional terms. | 616 |
Legislative members shall serve a term that coincides with | 617 |
the two-year legislative session in which they are first appointed | 618 |
with each term ending on the thirty-first day of December of the | 619 |
even-numbered year. Legislative members are eligible for | 620 |
reappointment. | 621 |
Vacancies on the council shall be filled in the same manner | 622 |
as the original appointment. All members of the council shall | 623 |
serve without additional compensation but shall be reimbursed by | 624 |
the bureau of workers' compensation for actual and necessary | 625 |
expenses. | 626 |
The council shall advise the bureau of workers' compensation | 627 |
board of directors and the administrator of workers' compensation | 628 |
on the quality and effectiveness of rehabilitation services and | 629 |
make recommendations pertaining to the bureau's rehabilitation | 630 |
program, including the operation of that program. | 631 |
| 632 |
633 | |
634 | |
635 | |
636 |
Sec. 4121.75. (A) There is hereby created in the | 637 |
legislative branch of government the workers' compensation | 638 |
council, which is created for the purpose of reviewing the | 639 |
soundness of the workers' compensation system and legislation | 640 |
involving or affecting the workers' compensation system. The | 641 |
council shall not be involved in the daily operations and | 642 |
oversight of the bureau of workers' compensation or the | 643 |
industrial commission. Members of the council shall be appointed | 644 |
as follows: | 645 |
(1) Three members of the senate, appointed by the president | 646 |
of the senate, not more than two of whom may be members of the | 647 |
same political party; | 648 |
(2) Three members of the house of representatives, appointed | 649 |
by the speaker of the house of representatives, not more than two | 650 |
of whom may be members of the same political party; | 651 |
(3) | 652 |
653 | |
654 | |
655 | |
representatives, who shall represent employers who employ one | 656 |
hundred or
more
employees | 657 |
(4) One member, appointed by the president of the senate, | 658 |
shall represent employers who employ less than one hundred | 659 |
employees | 660 |
(5) One member, appointed by the speaker of the house of | 661 |
representatives, who shall represent
employees | 662 |
(6) One member, appointed by the president of the senate, who | 663 |
shall represent injured workers | 664 |
(7) One member, who shall represent the public and also be an | 665 |
individual who, on account of the individual's previous vocation, | 666 |
employment, or affiliations, cannot be classed as either | 667 |
predominantly representative of employees or of employers and who | 668 |
the speaker of the house of representatives and the president of | 669 |
the senate, shall alternate in the appointment of for a term. | 670 |
671 |
(8) Of the five members appointed in divisions (A)(3), (4), | 672 |
(5), (6), and (7) of this section, at least one shall be a person | 673 |
with investment expertise. | 674 |
(B) The council also shall consist of the chairperson of the | 675 |
industrial commission and the administrator of workers' | 676 |
compensation, who shall be nonvoting ex officio members of the | 677 |
council. | 678 |
(C) The president of the senate and the speaker of the house | 679 |
of representatives shall make the initial appointments required | 680 |
under divisions (A)(1) and (2) of this section not later than | 681 |
thirty days after September 10, 2007. The members of the council | 682 |
who are appointed from the membership of the senate and the | 683 |
house of representatives shall serve during their terms as | 684 |
members of the general assembly. Notwithstanding the adjournment | 685 |
of the general assembly of which the member is a member or the | 686 |
expiration of the member's term as a member of such general | 687 |
assembly, a member shall continue in office subsequent to the | 688 |
expiration date of the member's term on the council until the | 689 |
member's successor takes office or until a period of sixty days | 690 |
has elapsed, whichever occurs first. | 691 |
(D) The president of the senate and the speaker of the house | 692 |
of representatives shall make the initial appointments required | 693 |
under division (A)(3) of this section not later than ninety days | 694 |
after September 10, 2007. Of these initial appointments to the | 695 |
council, one member shall be appointed for a term ending one | 696 |
year after September 10, 2007, two members shall be appointed | 697 |
for terms ending two years after September 10, 2007, and two | 698 |
members shall be appointed for terms ending three years after | 699 |
September 10, 2007. Thereafter, terms shall be for three years, | 700 |
except for the term of the member appointed under division (A)(7) | 701 |
of this section who shall serve a term of two years, with each | 702 |
term ending on the same day of the same month as did the term | 703 |
that
it succeeds. Each member appointed under
| 704 |
(A)(3), (4), (5), (6), and (7) of this section shall hold office | 705 |
from the date of appointment until the end of the term for | 706 |
which the appointment was made. Members may be reappointed. Any | 707 |
member
appointed
pursuant to | 708 |
(5), (6), and (7) of this section to fill a vacancy occurring | 709 |
prior to the expiration of the term for which the member's | 710 |
predecessor was appointed shall hold office for the remainder of | 711 |
that term. Each member appointed
pursuant to
| 712 |
(A)(3), (4), (5), (6), and (7) of this section shall continue in | 713 |
office subsequent to the expiration date of the member's term | 714 |
until the
member's successor takes office | 715 |
716 |
(E) Vacancies shall be filled in the manner prescribed for | 717 |
original appointments. | 718 |
Sec. 4123.29. (A) The administrator of workers' | 719 |
compensation, subject to the approval of the bureau of workers' | 720 |
compensation board of directors, shall do all of the following: | 721 |
(1) Classify occupations or industries with respect to their | 722 |
degree of hazard and determine the risks of the different classes | 723 |
according to the categories the national council on compensation | 724 |
insurance establishes that are applicable to employers in this | 725 |
state; | 726 |
(2)(a) Fix the rates of premium of the risks of the classes | 727 |
based upon the total payroll in each of the classes of occupation | 728 |
or industry sufficiently large to provide a fund for the | 729 |
compensation provided for in this chapter and to maintain a state | 730 |
insurance fund from year to year. The administrator shall set the | 731 |
rates at a level that assures the solvency of the fund. Where the | 732 |
payroll cannot be obtained or, in the opinion of the | 733 |
administrator, is not an adequate measure for determining the | 734 |
premium to be paid for the degree of hazard, the administrator | 735 |
may determine the rates of premium upon such other basis, | 736 |
consistent with insurance principles, as is equitable in view of | 737 |
the degree of hazard, and whenever in this chapter reference is | 738 |
made to payroll or expenditure of wages with reference to fixing | 739 |
premiums, the reference shall be construed to have been made also | 740 |
to such other basis for fixing the rates of premium as the | 741 |
administrator may determine under this section. | 742 |
(b) If an employer elects to obtain other-states' coverage | 743 |
pursuant to section 4123.292 of the Revised Code through either | 744 |
the administrator, if the administrator elects to offer such | 745 |
coverage, or an other-states' insurer, calculate the employer's | 746 |
premium for the state insurance fund in the same manner as | 747 |
otherwise required under division (A) of this section and section | 748 |
4123.34 of the Revised Code, except that when the administrator | 749 |
determines the expenditure of wages, payroll, or both upon which | 750 |
to base the employer's premium, the administrator shall use only | 751 |
the expenditure of wages, payroll, or both attributable to the | 752 |
labor performed and services provided by that employer's employees | 753 |
when those employees performed labor and provided services in this | 754 |
state only and to which the other-states' coverage does not | 755 |
apply. | 756 |
(c) The administrator in setting or revising rates shall | 757 |
furnish to employers an adequate explanation of the basis for the | 758 |
rates set. | 759 |
(3) Develop and make available to employers who are paying | 760 |
premiums to the state insurance fund alternative premium plans. | 761 |
Alternative premium plans shall include retrospective rating | 762 |
plans. The administrator may make available plans under which an | 763 |
advanced deposit may be applied against a specified deductible | 764 |
amount per claim. | 765 |
(4)(a) Offer to insure the obligations of employers under | 766 |
this chapter under a plan that groups, for rating purposes, | 767 |
employers, and pools the risk of the employers within the group | 768 |
provided that the employers meet all of the following conditions: | 769 |
(i) All of the employers within the group are members of an | 770 |
organization that has been in existence for at least two years | 771 |
prior to the date of application for group coverage; | 772 |
(ii) The organization was formed for purposes other than that | 773 |
of obtaining group workers' compensation under this division; | 774 |
(iii) The employers' business in the organization is | 775 |
substantially similar such that the risks which are grouped are | 776 |
substantially homogeneous; | 777 |
(iv) The group of employers consists of at least one hundred | 778 |
members or the aggregate workers' compensation premiums of the | 779 |
members, as determined by the administrator, are expected to | 780 |
exceed one hundred fifty thousand dollars during the coverage | 781 |
period; | 782 |
(v) The formation and operation of the group program in the | 783 |
organization will substantially improve accident prevention and | 784 |
claims handling for the employers in the group; | 785 |
(vi) Each employer seeking to enroll in a group for workers' | 786 |
compensation coverage has an industrial insurance account in good | 787 |
standing with the bureau of workers' compensation such that at the | 788 |
time the agreement is processed no outstanding premiums, | 789 |
penalties, or assessments are due from any of the employers. | 790 |
(b) If an organization sponsors more than one employer group | 791 |
to participate in group plans established under this section, that | 792 |
organization may submit a single application that supplies all of | 793 |
the information necessary for each group of employers that the | 794 |
organization wishes to sponsor. | 795 |
(c) In providing employer group plans under division (A)(4) | 796 |
of this section, the administrator shall consider an employer | 797 |
group as a single employing entity for purposes of group rating. | 798 |
No employer may be a member of more than one group for the | 799 |
purpose of obtaining workers' compensation coverage under this | 800 |
division. | 801 |
(d) At the time the administrator revises premium rates | 802 |
pursuant to this section and section 4123.34 of the Revised Code, | 803 |
if the premium rate of an employer who participates in a group | 804 |
plan established under this section changes from the rate | 805 |
established for the previous year, the administrator, in addition | 806 |
to sending the invoice with the rate revision to that employer, | 807 |
shall send a copy of that invoice to the third-party administrator | 808 |
that administers the group plan for that employer's group. | 809 |
(e) In providing employer group plans under division (A)(4) | 810 |
of this section, the administrator shall establish a program | 811 |
designed to mitigate the impact of a significant claim that would | 812 |
come into the experience of a private, state fund group-rated | 813 |
employer for the first time and be a contributing factor in that | 814 |
employer being excluded from a group-rated plan. The administrator | 815 |
shall establish eligibility criteria and requirements that such | 816 |
employers must satisfy in order to participate in this program. | 817 |
For purposes of this program, the administrator shall establish a | 818 |
discount on premium rates applicable to employers who qualify for | 819 |
the program. | 820 |
(f) In no event shall division (A)(4) of this section be | 821 |
construed as granting to an employer status as a self-insuring | 822 |
employer. | 823 |
(g)(i) An employer that is merging operations with another | 824 |
employer shall notify the administrator of workers' compensation | 825 |
of the merger not more than thirty days after the merger takes | 826 |
effect. | 827 |
(ii) If the administrator receives a notice from one or more | 828 |
employers of a merger of operations between those employers as | 829 |
described in division (A)(4)(f)(i) of this section, and if any | 830 |
employer involved in the merger participates in a group plan | 831 |
established under this section, the administrator shall provide | 832 |
a written notice to the organization that sponsors and the third | 833 |
party administrator that administers the group plan in which an | 834 |
employer who is involved in the merger participates informing | 835 |
that organization and the third party administrator about the | 836 |
merger. | 837 |
(iii) The administrator shall comply with the notice | 838 |
requirements of division (A)(4)(f)(i) of this section relative to | 839 |
every employer that participates in a group plan that is involved | 840 |
in a merger about which the administrator receives a notice | 841 |
described in that division. | 842 |
| 843 |
occupations or industries that are sufficiently distinct so as not | 844 |
to group employers in classifications that unfairly represent the | 845 |
risks of employment with the employer. | 846 |
(5) Generally promote employer participation in the state | 847 |
insurance fund through the regular dissemination of information to | 848 |
all classes of employers describing the advantages and benefits of | 849 |
opting to make premium payments to the fund. To that end, the | 850 |
administrator shall regularly make employers aware of the various | 851 |
workers' compensation premium packages developed and offered | 852 |
pursuant to this section. | 853 |
(6) Make available to every employer who is paying premiums | 854 |
to the state insurance fund a program whereby the employer or the | 855 |
employer's agent pays to the claimant or on behalf of the claimant | 856 |
the first fifteen thousand dollars of a compensable workers' | 857 |
compensation medical-only claim filed by that claimant that is | 858 |
related to the same injury or occupational disease. No formal | 859 |
application is required; however, an employer must elect to | 860 |
participate by telephoning the bureau after July 1, 1995. Once an | 861 |
employer has elected to participate in the program, the employer | 862 |
will be responsible for all bills in all medical-only claims with | 863 |
a date of injury the same or later than the election date, unless | 864 |
the employer notifies the bureau within fourteen days of receipt | 865 |
of the notification of a claim being filed that it does not wish | 866 |
to pay the bills in that claim, or the employer notifies the | 867 |
bureau that the fifteen thousand dollar maximum has been paid, or | 868 |
the employer notifies the bureau of the last day of service on | 869 |
which it will be responsible for the bills in a particular | 870 |
medical-only claim. If an employer elects to enter the program, | 871 |
the administrator shall not reimburse the employer for such | 872 |
amounts paid and shall not charge the first fifteen thousand | 873 |
dollars of any medical-only claim paid by an employer to the | 874 |
employer's experience or otherwise use it in merit rating or | 875 |
determining the risks of any employer for the purpose of payment | 876 |
of premiums under this chapter. A certified health care provider | 877 |
shall extend to an employer who participates in this program the | 878 |
same rates for services rendered to an employee of that employer | 879 |
as the provider bills the administrator for the same type of | 880 |
medical claim processed by the bureau and shall not charge, | 881 |
assess, or otherwise attempt to collect from an employee any | 882 |
amount for covered services or supplies that is in excess of that | 883 |
rate. If an employer elects to enter the program and the employer | 884 |
fails to pay a bill for a medical-only claim included in the | 885 |
program, the employer shall be liable for that bill and the | 886 |
employee for whom the employer failed to pay the bill shall not | 887 |
be liable for that bill. The administrator shall adopt rules to | 888 |
implement and administer division (A)(6) of this section. Upon | 889 |
written request from the bureau, the employer shall provide | 890 |
documentation to the bureau of all medical-only bills that they | 891 |
are paying directly. Such requests from the bureau may not be | 892 |
made more frequently than on a semiannual basis. Failure to | 893 |
provide such documentation to the bureau within thirty days of | 894 |
receipt of the request may result in the employer's forfeiture of | 895 |
participation in the program for such injury. The provisions of | 896 |
this section shall not apply to claims in which an employer with | 897 |
knowledge of a claimed compensable injury or occupational disease, | 898 |
has paid wages in lieu of compensation or total disability. | 899 |
(B) The administrator shall supply an employer, at the time | 900 |
the employer institutes coverage under this chapter and first | 901 |
selects a managed care organization under the health partnership | 902 |
program, with a list of all groups participating in the group | 903 |
rating program created pursuant to this section and a list of all | 904 |
premium discount programs offered by the administrator pursuant to | 905 |
this chapter. | 906 |
(C) The administrator, with the advice and consent of the | 907 |
board, by rule, may do both of the following: | 908 |
(1) Grant an employer who makes the employer's semiannual | 909 |
premium payment at least one month prior to the last day on which | 910 |
the payment may be made without penalty, a discount as the | 911 |
administrator fixes from time to time; | 912 |
(2) Levy a minimum annual administrative charge upon risks | 913 |
where semiannual premium reports develop a charge less than the | 914 |
administrator considers adequate to offset administrative costs of | 915 |
processing. | 916 |
(D) The administrator shall adopt a rule that sets an | 917 |
estimated discount for programs or alternative premium plans not | 918 |
later than the first day of September prior to the policy year in | 919 |
which the premium rate is to be in effect and shall adopt a rule | 920 |
that sets the actual discount for programs or alternative premium | 921 |
plans not later than the first day of January of the year in which | 922 |
the discount for programs or alternative premium plans is to be in | 923 |
effect, except for the premium year starting July 1, 2010, in | 924 |
which case the rule that sets the estimate shall not be adopted. | 925 |
Sec. 4123.34. It shall be the duty of the bureau of | 926 |
workers' compensation board of directors and the administrator of | 927 |
workers' compensation to safeguard and maintain the solvency of | 928 |
the state insurance fund and all other funds specified in this | 929 |
chapter and Chapters 4121., 4127., and 4131. of the Revised Code. | 930 |
The administrator, in the exercise of the powers and discretion | 931 |
conferred upon the administrator in section 4123.29 of the Revised | 932 |
Code, shall fix and maintain, with the advice and consent of the | 933 |
board, for each class of occupation or industry, the lowest | 934 |
possible rates of premium consistent with the maintenance of a | 935 |
solvent state insurance fund and the creation and maintenance of a | 936 |
reasonable surplus, after the payment of legitimate claims for | 937 |
injury, occupational disease, and death that the administrator | 938 |
authorizes to be paid from the state insurance fund for the | 939 |
benefit of injured, diseased, and the dependents of killed | 940 |
employees. In establishing rates, the administrator shall take | 941 |
into account the necessity of ensuring sufficient money is set | 942 |
aside in the premium payment security fund to cover any defaults | 943 |
in premium obligations. The administrator shall observe all of the | 944 |
following requirements in fixing the rates of premium for the | 945 |
risks of occupations or industries: | 946 |
(A) The administrator shall keep an accurate account of the | 947 |
money paid in premiums by each of the several classes of | 948 |
occupations or industries, and the losses on account of injuries, | 949 |
occupational disease, and death of employees thereof, and also | 950 |
keep an account of the money received from each individual | 951 |
employer and the amount of losses incurred against the state | 952 |
insurance fund on account of injuries, occupational disease, and | 953 |
death of the employees of the employer. | 954 |
(B) | 955 |
insurance fund shall be set aside for the creation of a surplus | 956 |
957 | |
958 | |
959 | |
state insurance fund | 960 |
961 | |
962 | |
4121., 4125., 4127., or 4131. of the Revised Code to the surplus | 963 |
fund, the surplus created in this division, the statutory surplus | 964 |
fund, or the statutory surplus of the state insurance fund are | 965 |
hereby deemed to be references to the surplus fund account. The | 966 |
administrator may transfer the portion of the state insurance fund | 967 |
to the surplus fund account as the administrator determines is | 968 |
necessary to satisfy the needs of the surplus fund account and to | 969 |
guarantee the solvency of the state insurance fund and the | 970 |
surplus fund account. In addition to all statutory authority | 971 |
under this chapter and Chapter 4121. of the Revised Code, the | 972 |
administrator has discretionary and contingency authority to | 973 |
make charges to the surplus fund account. The administrator | 974 |
shall account for all charges, whether statutory, discretionary, | 975 |
or contingency, that the administrator may make to the surplus | 976 |
fund account. A revision of basic rates shall be made annually | 977 |
on the first day of July. | 978 |
Notwithstanding any provision of the law to the contrary, one | 979 |
hundred eighty days after the effective date on which | 980 |
self-insuring employers first may elect under division (D) of | 981 |
section 4121.66 of the Revised Code to directly pay for | 982 |
rehabilitation expenses, the administrator shall calculate the | 983 |
deficit, if any, in the portion of the surplus fund account that | 984 |
is used for reimbursement to self-insuring employers for all | 985 |
expenses other than handicapped reimbursement under section | 986 |
4123.343 of the Revised Code. The administrator, from time to | 987 |
time, may determine whether the surplus fund account has such a | 988 |
deficit and may assess all self-insuring employers who | 989 |
participated in the portion of the surplus fund account during | 990 |
the accrual of the deficit and who during that time period have | 991 |
not made the election under division (D) of section 4121.66 of | 992 |
the Revised Code the amount the administrator determines | 993 |
necessary to reduce the deficit. | 994 |
Revisions of basic rates shall be in accordance with the | 995 |
oldest four of the last five calendar years of the combined | 996 |
accident and occupational disease experience of the administrator | 997 |
in the administration of this chapter, as shown by the accounts | 998 |
kept as provided in this section, excluding the experience of | 999 |
employers that are no longer active if the administrator | 1000 |
determines that the inclusion of those employers would have a | 1001 |
significant negative impact on the remainder of the employers in a | 1002 |
particular manual classification; and the administrator shall | 1003 |
adopt rules, with the advice and consent of the board, governing | 1004 |
rate revisions, the object of which shall be to make an equitable | 1005 |
distribution of losses among the several classes of occupation or | 1006 |
industry, which rules shall be general in their application. | 1007 |
(C) The administrator may apply that form of rating system | 1008 |
that the administrator finds is best calculated to merit rate or | 1009 |
individually rate the risk more equitably, predicated upon the | 1010 |
basis of its individual industrial accident and occupational | 1011 |
disease experience, and may encourage and stimulate accident | 1012 |
prevention. The administrator shall develop fixed and equitable | 1013 |
rules controlling the rating system, which rules shall conserve to | 1014 |
each risk the basic principles of workers' compensation insurance. | 1015 |
(D) The administrator, from the money paid into the state | 1016 |
insurance fund, shall set aside into an account of the state | 1017 |
insurance fund titled a premium payment security fund sufficient | 1018 |
money to pay for any premiums due from an employer and uncollected | 1019 |
that are in excess of the employer's premium security deposit. | 1020 |
The fund shall be in the custody of the treasurer of state. | 1021 |
All investment earnings of the fund shall be deposited in the | 1022 |
fund. Disbursements from the fund shall be made by the bureau of | 1023 |
workers' compensation upon order of the administrator to the state | 1024 |
insurance fund. The use of the moneys held by the premium payment | 1025 |
security fund is restricted to reimbursement to the state | 1026 |
insurance fund of premiums due and uncollected in excess of an | 1027 |
employer's premium security deposit. The moneys constituting the | 1028 |
premium payment security fund shall be maintained without regard | 1029 |
to or reliance upon any other fund. This section does not prevent | 1030 |
the deposit or investment of the premium payment security fund | 1031 |
with any other fund created by this chapter, but the premium | 1032 |
payment security fund is separate and distinct for every other | 1033 |
purpose and a strict accounting thereof shall be maintained. | 1034 |
(E) The administrator may grant discounts on premium rates | 1035 |
for employers who meet either of the following requirements: | 1036 |
(1) Have not incurred a compensable injury for one year or | 1037 |
more and who maintain an employee safety committee or similar | 1038 |
organization or make periodic safety inspections of the workplace. | 1039 |
(2) Successfully complete a loss prevention program | 1040 |
prescribed by the superintendent of the division of safety and | 1041 |
hygiene and conducted by the division or by any other person | 1042 |
approved by the superintendent. | 1043 |
(F)(1) In determining the premium rates for the construction | 1044 |
industry the administrator shall calculate the employers' premiums | 1045 |
based upon the actual remuneration construction industry employees | 1046 |
receive from construction industry employers, provided that the | 1047 |
amount of remuneration the administrator uses in calculating the | 1048 |
premiums shall not exceed an average weekly wage equal to one | 1049 |
hundred fifty per cent of the statewide average weekly wage as | 1050 |
defined in division (C) of section 4123.62 of the Revised Code. | 1051 |
(2) Division (F)(1) of this section shall not be construed as | 1052 |
affecting the manner in which benefits to a claimant are awarded | 1053 |
under this chapter. | 1054 |
(3) As used in division (F) of this section, "construction | 1055 |
industry" includes any activity performed in connection with the | 1056 |
erection, alteration, repair, replacement, renovation, | 1057 |
installation, or demolition of any building, structure, highway, | 1058 |
or bridge. | 1059 |
(G) Commencing with the bureau of workers' compensation | 1060 |
policy year beginning on July 1, 2010, the administrator shall | 1061 |
offer a workplace safety program to all employers, whether or not | 1062 |
the employers participate in a group as described in division | 1063 |
(A)(4) of section 4123.29 of the Revised Code. The administrator | 1064 |
shall provide any employer who participates in the workplace | 1065 |
safety program a discount on the employer's premiums of not less | 1066 |
than two per cent. | 1067 |
(H) Commencing with the bureau of workers' compensation | 1068 |
policy year beginning on July 1, 2010, the administrator shall | 1069 |
offer a drug free workplace program to all employers, whether or | 1070 |
not the employers participate in a group as described in division | 1071 |
(A)(4) of section 4123.29 of the Revised Code. The administrator | 1072 |
shall provide any employer who participates in the drug free | 1073 |
workplace program a discount of not less than three per cent per | 1074 |
year on the employer's premiums for each year the employer | 1075 |
participates in the program. | 1076 |
(I) The administrator of workers' compensation shall not | 1077 |
place a limit on the length of time that an employer may | 1078 |
participate in the bureau of workers' compensation drug free | 1079 |
workplace and workplace safety programs. | 1080 |
Sec. 4123.35. (A) Except as provided in this section, every | 1081 |
employer mentioned in division (B)(2) of section 4123.01 of the | 1082 |
Revised Code, and every publicly owned utility shall pay | 1083 |
semiannually in the months of January and July into the state | 1084 |
insurance fund the amount of annual premium the administrator of | 1085 |
workers' compensation fixes for the employment or occupation of | 1086 |
the employer, the amount of which premium to be paid by each | 1087 |
employer to be determined by the classifications, rules, and rates | 1088 |
made and published by the administrator. The employer shall pay | 1089 |
semiannually a further sum of money into the state insurance fund | 1090 |
as may be ascertained to be due from the employer by applying the | 1091 |
rules of the administrator, and a receipt or certificate | 1092 |
certifying that payment has been made, along with a written notice | 1093 |
as is required in section 4123.54 of the Revised Code, shall be | 1094 |
mailed immediately to the employer by the bureau of workers' | 1095 |
compensation. The receipt or certificate is prima-facie evidence | 1096 |
of the payment of the premium, and the proper posting of the | 1097 |
notice constitutes the employer's compliance with the notice | 1098 |
requirement mandated in section 4123.54 of the Revised Code. | 1099 |
The bureau of workers' compensation shall verify with the | 1100 |
secretary of state the existence of all corporations and | 1101 |
organizations making application for workers' compensation | 1102 |
coverage and shall require every such application to include the | 1103 |
employer's federal identification number. | 1104 |
An employer as defined in division (B)(2) of section 4123.01 | 1105 |
of the Revised Code who has contracted with a subcontractor is | 1106 |
liable for the unpaid premium due from any subcontractor with | 1107 |
respect to that part of the payroll of the subcontractor that is | 1108 |
for work performed pursuant to the contract with the employer. | 1109 |
Division (A) of this section providing for the payment of | 1110 |
premiums semiannually does not apply to any employer who was a | 1111 |
subscriber to the state insurance fund prior to January 1, 1914, | 1112 |
or who may first become a subscriber to the fund in any month | 1113 |
other than January or July. Instead, the semiannual premiums shall | 1114 |
be paid by those employers from time to time upon the expiration | 1115 |
of the respective periods for which payments into the fund have | 1116 |
been made by them. | 1117 |
The administrator shall adopt rules to permit employers to | 1118 |
make periodic payments of the semiannual premium due under this | 1119 |
division. The rules shall include provisions for the assessment of | 1120 |
interest charges, where appropriate, and for the assessment of | 1121 |
penalties when an employer fails to make timely premium payments. | 1122 |
An employer who timely pays the amounts due under this division is | 1123 |
entitled to all of the benefits and protections of this chapter. | 1124 |
Upon receipt of payment, the bureau immediately shall mail a | 1125 |
receipt or certificate to the employer certifying that payment has | 1126 |
been made, which receipt is prima-facie evidence of payment. | 1127 |
Workers' compensation coverage under this chapter continues | 1128 |
uninterrupted upon timely receipt of payment under this division. | 1129 |
Every public employer, except public employers that are | 1130 |
self-insuring employers under this section, shall comply with | 1131 |
sections 4123.38 to 4123.41, and 4123.48 of the Revised Code in | 1132 |
regard to the contribution of moneys to the public insurance fund. | 1133 |
(B) Employers who will abide by the rules of the | 1134 |
administrator and who may be of sufficient financial ability to | 1135 |
render certain the payment of compensation to injured employees or | 1136 |
the dependents of killed employees, and the furnishing of medical, | 1137 |
surgical, nursing, and hospital attention and services and | 1138 |
medicines, and funeral expenses, equal to or greater than is | 1139 |
provided for in sections 4123.52, 4123.55 to 4123.62, and 4123.64 | 1140 |
to 4123.67 of the Revised Code, and who do not desire to insure | 1141 |
the payment thereof or indemnify themselves against loss sustained | 1142 |
by the direct payment thereof, upon a finding of such facts by the | 1143 |
administrator, may be granted the privilege to pay individually | 1144 |
compensation, and furnish medical, surgical, nursing, and hospital | 1145 |
services and attention and funeral expenses directly to injured | 1146 |
employees or the dependents of killed employees, thereby being | 1147 |
granted status as a self-insuring employer. The administrator may | 1148 |
charge employers who apply for the status as a self-insuring | 1149 |
employer a reasonable application fee to cover the bureau's costs | 1150 |
in connection with processing and making a determination with | 1151 |
respect to an application. | 1152 |
All employers granted status as self-insuring employers shall | 1153 |
demonstrate sufficient financial and administrative ability to | 1154 |
assure that all obligations under this section are promptly met. | 1155 |
The administrator shall deny the privilege where the employer is | 1156 |
unable to demonstrate the employer's ability to promptly meet all | 1157 |
the obligations imposed on the employer by this section. | 1158 |
(1) The administrator shall consider, but is not limited to, | 1159 |
the following factors, where applicable, in determining the | 1160 |
employer's ability to meet all of the obligations imposed on the | 1161 |
employer by this section: | 1162 |
(a) The employer employs a minimum of five hundred employees | 1163 |
in this state; | 1164 |
(b) The employer has operated in this state for a minimum of | 1165 |
two years, provided that an employer who has purchased, acquired, | 1166 |
or otherwise succeeded to the operation of a business, or any part | 1167 |
thereof, situated in this state that has operated for at least two | 1168 |
years in this state, also shall qualify; | 1169 |
(c) Where the employer previously contributed to the state | 1170 |
insurance fund or is a successor employer as defined by bureau | 1171 |
rules, the amount of the buyout, as defined by bureau rules; | 1172 |
(d) The sufficiency of the employer's assets located in this | 1173 |
state to insure the employer's solvency in paying compensation | 1174 |
directly; | 1175 |
(e) The financial records, documents, and data, certified by | 1176 |
a certified public accountant, necessary to provide the employer's | 1177 |
full financial disclosure. The records, documents, and data | 1178 |
include, but are not limited to, balance sheets and profit and | 1179 |
loss history for the current year and previous four years. | 1180 |
(f) The employer's organizational plan for the administration | 1181 |
of the workers' compensation law; | 1182 |
(g) The employer's proposed plan to inform employees of the | 1183 |
change from a state fund insurer to a self-insuring employer, the | 1184 |
procedures the employer will follow as a self-insuring employer, | 1185 |
and the employees' rights to compensation and benefits; and | 1186 |
(h) The employer has either an account in a financial | 1187 |
institution in this state, or if the employer maintains an account | 1188 |
with a financial institution outside this state, ensures that | 1189 |
workers' compensation checks are drawn from the same account as | 1190 |
payroll checks or the employer clearly indicates that payment will | 1191 |
be honored by a financial institution in this state. | 1192 |
The administrator may waive the requirements of divisions | 1193 |
(B)(1)(a) and (b) of this section and the requirement of division | 1194 |
(B)(1)(e) of this section that the financial records, documents, | 1195 |
and data be certified by a certified public accountant. The | 1196 |
administrator shall adopt rules establishing the criteria that an | 1197 |
employer shall meet in order for the administrator to waive the | 1198 |
requirement of division (B)(1)(e) of this section. Such rules may | 1199 |
require additional security of that employer pursuant to division | 1200 |
(E) of section 4123.351 of the Revised Code. | 1201 |
The administrator shall not grant the status of self-insuring | 1202 |
employer to the state, except that the administrator may grant the | 1203 |
status of self-insuring employer to a state institution of higher | 1204 |
education, excluding its hospitals, that meets the requirements of | 1205 |
division (B)(2) of this section. | 1206 |
(2) When considering the application of a public employer, | 1207 |
except for a board of county commissioners described in division | 1208 |
(G) of section 4123.01 of the Revised Code, a board of a county | 1209 |
hospital, or a publicly owned utility, the administrator shall | 1210 |
verify that the public employer satisfies all of the following | 1211 |
requirements as the requirements apply to that public employer: | 1212 |
(a) For the two-year period preceding application under this | 1213 |
section, the public employer has maintained an unvoted debt | 1214 |
capacity equal to at least two times the amount of the current | 1215 |
annual premium established by the administrator under this chapter | 1216 |
for that public employer for the year immediately preceding the | 1217 |
year in which the public employer makes application under this | 1218 |
section. | 1219 |
(b) For each of the two fiscal years preceding application | 1220 |
under this section, the unreserved and undesignated year-end fund | 1221 |
balance in the public employer's general fund is equal to at least | 1222 |
five per cent of the public employer's general fund revenues for | 1223 |
the fiscal year computed in accordance with generally accepted | 1224 |
accounting principles. | 1225 |
(c) For the five-year period preceding application under this | 1226 |
section, the public employer, to the extent applicable, has | 1227 |
complied fully with the continuing disclosure requirements | 1228 |
established in rules adopted by the United States securities and | 1229 |
exchange commission under 17 C.F.R. 240.15c 2-12. | 1230 |
(d) For the five-year period preceding application under this | 1231 |
section, the public employer has not had its local government fund | 1232 |
distribution withheld on account of the public employer being | 1233 |
indebted or otherwise obligated to the state. | 1234 |
(e) For the five-year period preceding application under this | 1235 |
section, the public employer has not been under a fiscal watch or | 1236 |
fiscal emergency pursuant to section 118.023, 118.04, or 3316.03 | 1237 |
of the Revised Code. | 1238 |
(f) For the public employer's fiscal year preceding | 1239 |
application under this section, the public employer has obtained | 1240 |
an annual financial audit as required under section 117.10 of the | 1241 |
Revised Code, which has been released by the auditor of state | 1242 |
within seven months after the end of the public employer's fiscal | 1243 |
year. | 1244 |
(g) On the date of application, the public employer holds a | 1245 |
debt rating of Aa3 or higher according to Moody's investors | 1246 |
service, inc., or a comparable rating by an independent rating | 1247 |
agency similar to Moody's investors service, inc. | 1248 |
(h) The public employer agrees to generate an annual | 1249 |
accumulating book reserve in its financial statements reflecting | 1250 |
an actuarially generated reserve adequate to pay projected claims | 1251 |
under this chapter for the applicable period of time, as | 1252 |
determined by the administrator. | 1253 |
(i) For a public employer that is a hospital, the public | 1254 |
employer shall submit audited financial statements showing the | 1255 |
hospital's overall liquidity characteristics, and the | 1256 |
administrator shall determine, on an individual basis, whether the | 1257 |
public employer satisfies liquidity standards equivalent to the | 1258 |
liquidity standards of other public employers. | 1259 |
(j) Any additional criteria that the administrator adopts by | 1260 |
rule pursuant to division (E) of this section. | 1261 |
The administrator shall not approve the application of a | 1262 |
public employer, except for a board of county commissioners | 1263 |
described in division (G) of section 4123.01 of the Revised Code, | 1264 |
a board of a county hospital, or publicly owned utility, who does | 1265 |
not satisfy all of the requirements listed in division (B)(2) of | 1266 |
this section. | 1267 |
(C) A board of county commissioners described in division (G) | 1268 |
of section 4123.01 of the Revised Code, as an employer, that will | 1269 |
abide by the rules of the administrator and that may be of | 1270 |
sufficient financial ability to render certain the payment of | 1271 |
compensation to injured employees or the dependents of killed | 1272 |
employees, and the furnishing of medical, surgical, nursing, and | 1273 |
hospital attention and services and medicines, and funeral | 1274 |
expenses, equal to or greater than is provided for in sections | 1275 |
4123.52, 4123.55 to 4123.62, and 4123.64 to 4123.67 of the Revised | 1276 |
Code, and that does not desire to insure the payment thereof or | 1277 |
indemnify itself against loss sustained by the direct payment | 1278 |
thereof, upon a finding of such facts by the administrator, may be | 1279 |
granted the privilege to pay individually compensation, and | 1280 |
furnish medical, surgical, nursing, and hospital services and | 1281 |
attention and funeral expenses directly to injured employees or | 1282 |
the dependents of killed employees, thereby being granted status | 1283 |
as a self-insuring employer. The administrator may charge a board | 1284 |
of county commissioners described in division (G) of section | 1285 |
4123.01 of the Revised Code that applies for the status as a | 1286 |
self-insuring employer a reasonable application fee to cover the | 1287 |
bureau's costs in connection with processing and making a | 1288 |
determination with respect to an application. All employers | 1289 |
granted such status shall demonstrate sufficient financial and | 1290 |
administrative ability to assure that all obligations under this | 1291 |
section are promptly met. The administrator shall deny the | 1292 |
privilege where the employer is unable to demonstrate the | 1293 |
employer's ability to promptly meet all the obligations imposed on | 1294 |
the employer by this section. The administrator shall consider, | 1295 |
but is not limited to, the following factors, where applicable, in | 1296 |
determining the employer's ability to meet all of the obligations | 1297 |
imposed on the board as an employer by this section: | 1298 |
(1) The board as an employer employs a minimum of five | 1299 |
hundred employees in this state; | 1300 |
(2) The board has operated in this state for a minimum of two | 1301 |
years; | 1302 |
(3) Where the board previously contributed to the state | 1303 |
insurance fund or is a successor employer as defined by bureau | 1304 |
rules, the amount of the buyout, as defined by bureau rules; | 1305 |
(4) The sufficiency of the board's assets located in this | 1306 |
state to insure the board's solvency in paying compensation | 1307 |
directly; | 1308 |
(5) The financial records, documents, and data, certified by | 1309 |
a certified public accountant, necessary to provide the board's | 1310 |
full financial disclosure. The records, documents, and data | 1311 |
include, but are not limited to, balance sheets and profit and | 1312 |
loss history for the current year and previous four years. | 1313 |
(6) The board's organizational plan for the administration of | 1314 |
the workers' compensation law; | 1315 |
(7) The board's proposed plan to inform employees of the | 1316 |
proposed self-insurance, the procedures the board will follow as a | 1317 |
self-insuring employer, and the employees' rights to compensation | 1318 |
and benefits; | 1319 |
(8) The board has either an account in a financial | 1320 |
institution in this state, or if the board maintains an account | 1321 |
with a financial institution outside this state, ensures that | 1322 |
workers' compensation checks are drawn from the same account as | 1323 |
payroll checks or the board clearly indicates that payment will be | 1324 |
honored by a financial institution in this state; | 1325 |
(9) The board shall provide the administrator a surety bond | 1326 |
in an amount equal to one hundred twenty-five per cent of the | 1327 |
projected losses as determined by the administrator. | 1328 |
(D) The administrator shall require a surety bond from all | 1329 |
self-insuring employers, issued pursuant to section 4123.351 of | 1330 |
the Revised Code, that is sufficient to compel, or secure to | 1331 |
injured employees, or to the dependents of employees killed, the | 1332 |
payment of compensation and expenses, which shall in no event be | 1333 |
less than that paid or furnished out of the state insurance fund | 1334 |
in similar cases to injured employees or to dependents of killed | 1335 |
employees whose employers contribute to the fund, except when an | 1336 |
employee of the employer, who has suffered the loss of a hand, | 1337 |
arm, foot, leg, or eye prior to the injury for which compensation | 1338 |
is to be paid, and thereafter suffers the loss of any other of the | 1339 |
members as the result of any injury sustained in the course of and | 1340 |
arising out of the employee's employment, the compensation to be | 1341 |
paid by the self-insuring employer is limited to the disability | 1342 |
suffered in the subsequent injury, additional compensation, if | 1343 |
any, to be paid by the bureau out of the surplus created by | 1344 |
section 4123.34 of the Revised Code. | 1345 |
(E) In addition to the requirements of this section, the | 1346 |
administrator shall make and publish rules governing the manner of | 1347 |
making application and the nature and extent of the proof required | 1348 |
to justify a finding of fact by the administrator as to granting | 1349 |
the status of a self-insuring employer, which rules shall be | 1350 |
general in their application, one of which rules shall provide | 1351 |
that all self-insuring employers shall pay into the state | 1352 |
insurance fund such amounts as are required to be credited to the | 1353 |
surplus fund in division (B) of section 4123.34 of the Revised | 1354 |
Code. The administrator may adopt rules establishing requirements | 1355 |
in addition to the requirements described in division (B)(2) of | 1356 |
this section that a public employer shall meet in order to qualify | 1357 |
for self-insuring status. | 1358 |
Employers shall secure directly from the bureau central | 1359 |
offices application forms upon which the bureau shall stamp a | 1360 |
designating number. Prior to submission of an application, an | 1361 |
employer shall make available to the bureau, and the bureau shall | 1362 |
review, the information described in division (B)(1) of this | 1363 |
section, and public employers shall make available, and the bureau | 1364 |
shall review, the information necessary to verify whether the | 1365 |
public employer meets the requirements listed in division (B)(2) | 1366 |
of this section. An employer shall file the completed application | 1367 |
forms with an application fee, which shall cover the costs of | 1368 |
processing the application, as established by the administrator, | 1369 |
by rule, with the bureau at least ninety days prior to the | 1370 |
effective date of the employer's new status as a self-insuring | 1371 |
employer. The application form is not deemed complete until all | 1372 |
the required information is attached thereto. The bureau shall | 1373 |
only accept applications that contain the required information. | 1374 |
(F) The bureau shall review completed applications within a | 1375 |
reasonable time. If the bureau determines to grant an employer the | 1376 |
status as a self-insuring employer, the bureau shall issue a | 1377 |
statement, containing its findings of fact, that is prepared by | 1378 |
the bureau and signed by the administrator. If the bureau | 1379 |
determines not to grant the status as a self-insuring employer, | 1380 |
the bureau shall notify the employer of the determination and | 1381 |
require the employer to continue to pay its full premium into the | 1382 |
state insurance fund. The administrator also shall adopt rules | 1383 |
establishing a minimum level of performance as a criterion for | 1384 |
granting and maintaining the status as a self-insuring employer | 1385 |
and fixing time limits beyond which failure of the self-insuring | 1386 |
employer to provide for the necessary medical examinations and | 1387 |
evaluations may not delay a decision on a claim. | 1388 |
(G) The administrator shall adopt rules setting forth | 1389 |
procedures for auditing the program of self-insuring employers. | 1390 |
The bureau shall conduct the audit upon a random basis or whenever | 1391 |
the bureau has grounds for believing that a self-insuring employer | 1392 |
is not in full compliance with bureau rules or this chapter. | 1393 |
The administrator shall monitor the programs conducted by | 1394 |
self-insuring employers, to ensure compliance with bureau | 1395 |
requirements and for that purpose, shall develop and issue to | 1396 |
self-insuring employers standardized forms for use by the | 1397 |
self-insuring employer in all aspects of the self-insuring | 1398 |
employers' direct compensation program and for reporting of | 1399 |
information to the bureau. | 1400 |
The bureau shall receive and transmit to the self-insuring | 1401 |
employer all complaints concerning any self-insuring employer. In | 1402 |
the case of a complaint against a self-insuring employer, the | 1403 |
administrator shall handle the complaint through the | 1404 |
self-insurance division of the bureau. The bureau shall maintain a | 1405 |
file by employer of all complaints received that relate to the | 1406 |
employer. The bureau shall evaluate each complaint and take | 1407 |
appropriate action. | 1408 |
The administrator shall adopt as a rule a prohibition against | 1409 |
any self-insuring employer from harassing, dismissing, or | 1410 |
otherwise disciplining any employee making a complaint, which rule | 1411 |
shall provide for a financial penalty to be levied by the | 1412 |
administrator payable by the offending self-insuring employer. | 1413 |
(H) For the purpose of making determinations as to whether to | 1414 |
grant status as a self-insuring employer, the administrator may | 1415 |
subscribe to and pay for a credit reporting service that offers | 1416 |
financial and other business information about individual | 1417 |
employers. The costs in connection with the bureau's subscription | 1418 |
or individual reports from the service about an applicant may be | 1419 |
included in the application fee charged employers under this | 1420 |
section. | 1421 |
(I) The administrator, notwithstanding other provisions of | 1422 |
this chapter, may permit a self-insuring employer to resume | 1423 |
payment of premiums to the state insurance fund with appropriate | 1424 |
credit modifications to the employer's basic premium rate as such | 1425 |
rate is determined pursuant to section 4123.29 of the Revised | 1426 |
Code. | 1427 |
(J) On the first day of July of each year, the administrator | 1428 |
shall calculate separately each self-insuring employer's | 1429 |
assessments for the safety and hygiene fund, administrative costs | 1430 |
pursuant to section 4123.342 of the Revised Code, and for the | 1431 |
portion of the surplus fund under division (B) of section 4123.34 | 1432 |
of the Revised Code that is not used for handicapped | 1433 |
reimbursement, on the basis of the paid compensation attributable | 1434 |
to the individual self-insuring employer according to the | 1435 |
following calculation: | 1436 |
(1) The total assessment against all self-insuring employers | 1437 |
as a class for each fund and for the administrative costs for the | 1438 |
year that the assessment is being made, as determined by the | 1439 |
administrator, divided by the total amount of paid compensation | 1440 |
for the previous calendar year attributable to all amenable | 1441 |
self-insuring employers; | 1442 |
(2) Multiply the quotient in division (J)(1) of this section | 1443 |
by the total amount of paid compensation for the previous calendar | 1444 |
year that is attributable to the individual self-insuring employer | 1445 |
for whom the assessment is being determined. Each self-insuring | 1446 |
employer shall pay the assessment that results from this | 1447 |
calculation, unless the assessment resulting from this calculation | 1448 |
falls below a minimum assessment, which minimum assessment the | 1449 |
administrator shall determine on the first day of July of each | 1450 |
year with the advice and consent of the bureau of workers' | 1451 |
compensation board of directors, in which event, the self-insuring | 1452 |
employer shall pay the minimum assessment. | 1453 |
In determining the total amount due for the total assessment | 1454 |
against all self-insuring employers as a class for each fund and | 1455 |
the administrative assessment, the administrator shall reduce | 1456 |
proportionately the total for each fund and assessment by the | 1457 |
amount of money in the self-insurance assessment fund as of the | 1458 |
date of the computation of the assessment. | 1459 |
The administrator shall calculate the assessment for the | 1460 |
portion of the surplus fund under division (B) of section 4123.34 | 1461 |
of the Revised Code that is used for handicapped reimbursement in | 1462 |
the same manner as set forth in divisions (J)(1) and (2) of this | 1463 |
section except that the administrator shall calculate the total | 1464 |
assessment for this portion of the surplus fund only on the basis | 1465 |
of those self-insuring employers that retain participation in the | 1466 |
handicapped reimbursement program and the individual self-insuring | 1467 |
employer's proportion of paid compensation shall be calculated | 1468 |
only for those self-insuring employers who retain participation in | 1469 |
the handicapped reimbursement program. The administrator, as the | 1470 |
administrator determines appropriate, may determine the total | 1471 |
assessment for the handicapped portion of the surplus fund in | 1472 |
accordance with sound actuarial principles. | 1473 |
The administrator shall calculate the assessment for the | 1474 |
portion of the surplus fund under division (B) of section 4123.34 | 1475 |
of the Revised Code that under division (D) of section 4121.66 of | 1476 |
the Revised Code is used for rehabilitation costs in the same | 1477 |
manner as set forth in divisions (J)(1) and (2) of this section, | 1478 |
except that the administrator shall calculate the total assessment | 1479 |
for this portion of the surplus fund only on the basis of those | 1480 |
self-insuring employers who have not made the election to make | 1481 |
payments directly under division (D) of section 4121.66 of the | 1482 |
Revised Code and an individual self-insuring employer's proportion | 1483 |
of paid compensation only for those self-insuring employers who | 1484 |
have not made that election. | 1485 |
The administrator shall calculate the assessment for the | 1486 |
portion of the surplus fund under division (B) of section 4123.34 | 1487 |
of the Revised Code that is used for reimbursement to a | 1488 |
self-insuring employer under division (H) of section 4123.512 of | 1489 |
the Revised Code in the same manner as set forth in divisions | 1490 |
(J)(1) and (2) of this section except that the administrator shall | 1491 |
calculate the total assessment for this portion of the surplus | 1492 |
fund only on the basis of those self-insuring employers that | 1493 |
retain participation in reimbursement to the self-insuring | 1494 |
employer under division (H) of section 4123.512 of the Revised | 1495 |
Code and the individual self-insuring employer's proportion of | 1496 |
paid compensation shall be calculated only for those self-insuring | 1497 |
employers who retain participation in reimbursement to the | 1498 |
self-insuring employer under division (H) of section 4123.512 of | 1499 |
the Revised Code. | 1500 |
An employer who no longer is a self-insuring employer in this | 1501 |
state or who no longer is operating in this state, shall continue | 1502 |
to pay assessments for administrative costs and for the portion of | 1503 |
the surplus fund under division (B) of section 4123.34 of the | 1504 |
Revised Code that is not used for handicapped reimbursement, based | 1505 |
upon paid compensation attributable to claims that occurred while | 1506 |
the employer was a self-insuring employer within this state. | 1507 |
(K) The administrator shall deposit any moneys received from | 1508 |
a self-insuring employer for the self-insuring employer's | 1509 |
assessment to pay the costs solely attributable to the workers' | 1510 |
compensation council into the administrative assessment account | 1511 |
described in division (B) of section 4123.342 of the Revised Code | 1512 |
for the administrative cost assessment collected by the | 1513 |
administrator for the council. There is hereby created in the | 1514 |
state treasury the self-insurance assessment fund. All investment | 1515 |
earnings of the fund shall be deposited in the fund. The | 1516 |
administrator shall use the money in the self-insurance | 1517 |
assessment fund only for administrative costs as specified in | 1518 |
section 4123.341 of the Revised Code. | 1519 |
(L) Every self-insuring employer shall certify, in affidavit | 1520 |
form subject to the penalty for perjury, to the bureau the amount | 1521 |
of the self-insuring employer's paid compensation for the previous | 1522 |
calendar year. In reporting paid compensation paid for the | 1523 |
previous year, a self-insuring employer shall exclude from the | 1524 |
total amount of paid compensation any reimbursement the | 1525 |
self-insuring employer receives in the previous calendar year from | 1526 |
the surplus fund pursuant to section 4123.512 of the Revised Code | 1527 |
for any paid compensation. The self-insuring employer also shall | 1528 |
exclude from the paid compensation reported any amount recovered | 1529 |
under section 4123.931 of the Revised Code and any amount that is | 1530 |
determined not to have been payable to or on behalf of a claimant | 1531 |
in any final administrative or judicial proceeding. The | 1532 |
self-insuring employer shall exclude such amounts from the paid | 1533 |
compensation reported in the reporting period subsequent to the | 1534 |
date the determination is made. The administrator shall adopt | 1535 |
rules, in accordance with Chapter 119. of the Revised Code, that | 1536 |
provide for all of the following: | 1537 |
(1) Establishing the date by which self-insuring employers | 1538 |
must submit such information and the amount of the assessments | 1539 |
provided for in division (J) of this section for employers who | 1540 |
have been granted self-insuring status within the last calendar | 1541 |
year; | 1542 |
(2) If an employer fails to pay the assessment when due, the | 1543 |
administrator may add a late fee penalty of not more than five | 1544 |
hundred dollars to the assessment plus an additional penalty | 1545 |
amount as follows: | 1546 |
(a) For an assessment from sixty-one to ninety days past due, | 1547 |
the prime interest rate, multiplied by the assessment due; | 1548 |
(b) For an assessment from ninety-one to one hundred twenty | 1549 |
days past due, the prime interest rate plus two per cent, | 1550 |
multiplied by the assessment due; | 1551 |
(c) For an assessment from one hundred twenty-one to one | 1552 |
hundred fifty days past due, the prime interest rate plus four per | 1553 |
cent, multiplied by the assessment due; | 1554 |
(d) For an assessment from one hundred fifty-one to one | 1555 |
hundred eighty days past due, the prime interest rate plus six per | 1556 |
cent, multiplied by the assessment due; | 1557 |
(e) For an assessment from one hundred eighty-one to two | 1558 |
hundred ten days past due, the prime interest rate plus eight per | 1559 |
cent, multiplied by the assessment due; | 1560 |
(f) For each additional thirty-day period or portion thereof | 1561 |
that an assessment remains past due after it has remained past due | 1562 |
for more than two hundred ten days, the prime interest rate plus | 1563 |
eight per cent, multiplied by the assessment due. | 1564 |
(3) An employer may appeal a late fee penalty and penalty | 1565 |
assessment to the administrator. | 1566 |
For purposes of division (L)(2) of this section, "prime | 1567 |
interest rate" means the average bank prime rate, and the | 1568 |
administrator shall determine the prime interest rate in the same | 1569 |
manner as a county auditor determines the average bank prime rate | 1570 |
under section 929.02 of the Revised Code. | 1571 |
The administrator shall include any assessment and penalties | 1572 |
that remain unpaid for previous assessment periods in the | 1573 |
calculation and collection of any assessments due under this | 1574 |
division or division (J) of this section. | 1575 |
(M) As used in this section, "paid compensation" means all | 1576 |
amounts paid by a self-insuring employer for living maintenance | 1577 |
benefits, all amounts for compensation paid pursuant to sections | 1578 |
4121.63, 4121.67, 4123.56, 4123.57, 4123.58, 4123.59, 4123.60, and | 1579 |
4123.64 of the Revised Code, all amounts paid as wages in lieu of | 1580 |
such compensation, all amounts paid in lieu of such compensation | 1581 |
under a nonoccupational accident and sickness program fully funded | 1582 |
by the self-insuring employer, and all amounts paid by a | 1583 |
self-insuring employer for a violation of a specific safety | 1584 |
standard pursuant to Section 35 of Article II, Ohio Constitution | 1585 |
and section 4121.47 of the Revised Code. | 1586 |
(N) Should any section of this chapter or Chapter 4121. of | 1587 |
the Revised Code providing for self-insuring employers' | 1588 |
assessments based upon compensation paid be declared | 1589 |
unconstitutional by a final decision of any court, then that | 1590 |
section of the Revised Code declared unconstitutional shall revert | 1591 |
back to the section in existence prior to November 3, 1989, | 1592 |
providing for assessments based upon payroll. | 1593 |
(O) The administrator may grant a self-insuring employer the | 1594 |
privilege to self-insure a construction project entered into by | 1595 |
the self-insuring employer that is scheduled for completion within | 1596 |
six years after the date the project begins, and the total cost of | 1597 |
which is estimated to exceed one hundred million dollars or, for | 1598 |
employers described in division (R) of this section, if the | 1599 |
construction project is estimated to exceed twenty-five million | 1600 |
dollars. The administrator may waive such cost and time criteria | 1601 |
and grant a self-insuring employer the privilege to self-insure a | 1602 |
construction project regardless of the time needed to complete the | 1603 |
construction project and provided that the cost of the | 1604 |
construction project is estimated to exceed fifty million dollars. | 1605 |
A self-insuring employer who desires to self-insure a construction | 1606 |
project shall submit to the administrator an application listing | 1607 |
the dates the construction project is scheduled to begin and end, | 1608 |
the estimated cost of the construction project, the contractors | 1609 |
and subcontractors whose employees are to be self-insured by the | 1610 |
self-insuring employer, the provisions of a safety program that is | 1611 |
specifically designed for the construction project, and a | 1612 |
statement as to whether a collective bargaining agreement | 1613 |
governing the rights, duties, and obligations of each of the | 1614 |
parties to the agreement with respect to the construction project | 1615 |
exists between the self-insuring employer and a labor | 1616 |
organization. | 1617 |
A self-insuring employer may apply to self-insure the | 1618 |
employees of either of the following: | 1619 |
(1) All contractors and subcontractors who perform labor or | 1620 |
work or provide materials for the construction project; | 1621 |
(2) All contractors and, at the administrator's discretion, a | 1622 |
substantial number of all the subcontractors who perform labor or | 1623 |
work or provide materials for the construction project. | 1624 |
Upon approval of the application, the administrator shall | 1625 |
mail a certificate granting the privilege to self-insure the | 1626 |
construction project to the self-insuring employer. The | 1627 |
certificate shall contain the name of the self-insuring employer | 1628 |
and the name, address, and telephone number of the self-insuring | 1629 |
employer's representatives who are responsible for administering | 1630 |
workers' compensation claims for the construction project. The | 1631 |
self-insuring employer shall post the certificate in a conspicuous | 1632 |
place at the site of the construction project. | 1633 |
The administrator shall maintain a record of the contractors | 1634 |
and subcontractors whose employees are covered under the | 1635 |
certificate issued to the self-insured employer. A self-insuring | 1636 |
employer immediately shall notify the administrator when any | 1637 |
contractor or subcontractor is added or eliminated from inclusion | 1638 |
under the certificate. | 1639 |
Upon approval of the application, the self-insuring employer | 1640 |
is responsible for the administration and payment of all claims | 1641 |
under this chapter and Chapter 4121. of the Revised Code for the | 1642 |
employees of the contractor and subcontractors covered under the | 1643 |
certificate who receive injuries or are killed in the course of | 1644 |
and arising out of employment on the construction project, or who | 1645 |
contract an occupational disease in the course of employment on | 1646 |
the construction project. For purposes of this chapter and Chapter | 1647 |
4121. of the Revised Code, a claim that is administered and paid | 1648 |
in accordance with this division is considered a claim against the | 1649 |
self-insuring employer listed in the certificate. A contractor or | 1650 |
subcontractor included under the certificate shall report to the | 1651 |
self-insuring employer listed in the certificate, all claims that | 1652 |
arise under this chapter and Chapter 4121. of the Revised Code in | 1653 |
connection with the construction project for which the certificate | 1654 |
is issued. | 1655 |
A self-insuring employer who complies with this division is | 1656 |
entitled to the protections provided under this chapter and | 1657 |
Chapter 4121. of the Revised Code with respect to the employees of | 1658 |
the contractors and subcontractors covered under a certificate | 1659 |
issued under this division for death or injuries that arise out | 1660 |
of, or death, injuries, or occupational diseases that arise in the | 1661 |
course of, those employees' employment on that construction | 1662 |
project, as if the employees were employees of the self-insuring | 1663 |
employer, provided that the self-insuring employer also complies | 1664 |
with this section. No employee of the contractors and | 1665 |
subcontractors covered under a certificate issued under this | 1666 |
division shall be considered the employee of the self-insuring | 1667 |
employer listed in that certificate for any purposes other than | 1668 |
this chapter and Chapter 4121. of the Revised Code. Nothing in | 1669 |
this division gives a self-insuring employer authority to control | 1670 |
the means, manner, or method of employment of the employees of the | 1671 |
contractors and subcontractors covered under a certificate issued | 1672 |
under this division. | 1673 |
The contractors and subcontractors included under a | 1674 |
certificate issued under this division are entitled to the | 1675 |
protections provided under this chapter and Chapter 4121. of the | 1676 |
Revised Code with respect to the contractor's or subcontractor's | 1677 |
employees who are employed on the construction project which is | 1678 |
the subject of the certificate, for death or injuries that arise | 1679 |
out of, or death, injuries, or occupational diseases that arise in | 1680 |
the course of, those employees' employment on that construction | 1681 |
project. | 1682 |
The contractors and subcontractors included under a | 1683 |
certificate issued under this division shall identify in their | 1684 |
payroll records the employees who are considered the employees of | 1685 |
the self-insuring employer listed in that certificate for purposes | 1686 |
of this chapter and Chapter 4121. of the Revised Code, and the | 1687 |
amount that those employees earned for employment on the | 1688 |
construction project that is the subject of that certificate. | 1689 |
Notwithstanding any provision to the contrary under this chapter | 1690 |
and Chapter 4121. of the Revised Code, the administrator shall | 1691 |
exclude the payroll that is reported for employees who are | 1692 |
considered the employees of the self-insuring employer listed in | 1693 |
that certificate, and that the employees earned for employment on | 1694 |
the construction project that is the subject of that certificate, | 1695 |
when determining those contractors' or subcontractors' premiums or | 1696 |
assessments required under this chapter and Chapter 4121. of the | 1697 |
Revised Code. A self-insuring employer issued a certificate under | 1698 |
this division shall include in the amount of paid compensation it | 1699 |
reports pursuant to division (L) of this section, the amount of | 1700 |
paid compensation the self-insuring employer paid pursuant to this | 1701 |
division for the previous calendar year. | 1702 |
Nothing in this division shall be construed as altering the | 1703 |
rights of employees under this chapter and Chapter 4121. of the | 1704 |
Revised Code as those rights existed prior to September 17, 1996. | 1705 |
Nothing in this division shall be construed as altering the rights | 1706 |
devolved under sections 2305.31 and 4123.82 of the Revised Code as | 1707 |
those rights existed prior to September 17, 1996. | 1708 |
As used in this division, "privilege to self-insure a | 1709 |
construction project" means privilege to pay individually | 1710 |
compensation, and to furnish medical, surgical, nursing, and | 1711 |
hospital services and attention and funeral expenses directly to | 1712 |
injured employees or the dependents of killed employees. | 1713 |
(P) A self-insuring employer whose application is granted | 1714 |
under division (O) of this section shall designate a safety | 1715 |
professional to be responsible for the administration and | 1716 |
enforcement of the safety program that is specifically designed | 1717 |
for the construction project that is the subject of the | 1718 |
application. | 1719 |
A self-insuring employer whose application is granted under | 1720 |
division (O) of this section shall employ an ombudsperson for the | 1721 |
construction project that is the subject of the application. The | 1722 |
ombudsperson shall have experience in workers' compensation or the | 1723 |
construction industry, or both. The ombudsperson shall perform all | 1724 |
of the following duties: | 1725 |
(1) Communicate with and provide information to employees who | 1726 |
are injured in the course of, or whose injury arises out of | 1727 |
employment on the construction project, or who contract an | 1728 |
occupational disease in the course of employment on the | 1729 |
construction project; | 1730 |
(2) Investigate the status of a claim upon the request of an | 1731 |
employee to do so; | 1732 |
(3) Provide information to claimants, third party | 1733 |
administrators, employers, and other persons to assist those | 1734 |
persons in protecting their rights under this chapter and Chapter | 1735 |
4121. of the Revised Code. | 1736 |
A self-insuring employer whose application is granted under | 1737 |
division (O) of this section shall post the name of the safety | 1738 |
professional and the ombudsperson and instructions for contacting | 1739 |
the safety professional and the ombudsperson in a conspicuous | 1740 |
place at the site of the construction project. | 1741 |
(Q) The administrator may consider all of the following when | 1742 |
deciding whether to grant a self-insuring employer the privilege | 1743 |
to self-insure a construction project as provided under division | 1744 |
(O) of this section: | 1745 |
(1) Whether the self-insuring employer has an organizational | 1746 |
plan for the administration of the workers' compensation law; | 1747 |
(2) Whether the safety program that is specifically designed | 1748 |
for the construction project provides for the safety of employees | 1749 |
employed on the construction project, is applicable to all | 1750 |
contractors and subcontractors who perform labor or work or | 1751 |
provide materials for the construction project, and has as a | 1752 |
component, a safety training program that complies with standards | 1753 |
adopted pursuant to the "Occupational Safety and Health Act of | 1754 |
1970," 84 Stat. 1590, 29 U.S.C.A. 651, and provides for continuing | 1755 |
management and employee involvement; | 1756 |
(3) Whether granting the privilege to self-insure the | 1757 |
construction project will reduce the costs of the construction | 1758 |
project; | 1759 |
(4) Whether the self-insuring employer has employed an | 1760 |
ombudsperson as required under division (P) of this section; | 1761 |
(5) Whether the self-insuring employer has sufficient surety | 1762 |
to secure the payment of claims for which the self-insuring | 1763 |
employer would be responsible pursuant to the granting of the | 1764 |
privilege to self-insure a construction project under division | 1765 |
(O) of this section. | 1766 |
(R) As used in divisions (O), (P), and (Q), "self-insuring | 1767 |
employer" includes the following employers, whether or not they | 1768 |
have been granted the status of being a self-insuring employer | 1769 |
under division (B) of this section: | 1770 |
(1) A state institution of higher education; | 1771 |
(2) A school district; | 1772 |
(3) A county school financing district; | 1773 |
(4) An educational service center; | 1774 |
(5) A community school established under Chapter 3314. of the | 1775 |
Revised Code; | 1776 |
(6) A municipal power agency as defined in section 3734.058 | 1777 |
of the Revised Code. | 1778 |
(S) As used in this section: | 1779 |
(1) "Unvoted debt capacity" means the amount of money that a | 1780 |
public employer may borrow without voter approval of a tax levy; | 1781 |
(2) "State institution of higher education" means the state | 1782 |
universities listed in section 3345.011 of the Revised Code, | 1783 |
community colleges created pursuant to Chapter 3354. of the | 1784 |
Revised Code, university branches created pursuant to Chapter | 1785 |
3355. of the Revised Code, technical colleges created pursuant to | 1786 |
Chapter 3357. of the Revised Code, and state community colleges | 1787 |
created pursuant to Chapter 3358. of the Revised Code. | 1788 |
Sec. 4123.82. (A) All contracts and agreements are void | 1789 |
which undertake to indemnify or insure an employer against loss or | 1790 |
liability for the payment of compensation to workers or their | 1791 |
dependents for death, injury, or occupational disease occasioned | 1792 |
in the course of the workers' employment, or which provide that | 1793 |
the insurer shall pay the compensation, or which indemnify the | 1794 |
employer against damages when the injury, disease, or death arises | 1795 |
from the failure to comply with any lawful requirement for the | 1796 |
protection of the lives, health, and safety of employees, or when | 1797 |
the same is occasioned by the willful act of the employer or any | 1798 |
of the employer's officers or agents, or by which it is agreed | 1799 |
that the insurer shall pay any such damages. No license or | 1800 |
authority to enter into any such agreements or issue any such | 1801 |
policies of insurance shall be granted or issued by any public | 1802 |
authority in this state. Any corporation organized or admitted | 1803 |
under the laws of this state to transact liability insurance as | 1804 |
defined in section 3929.01 of the Revised Code may by amendment of | 1805 |
its articles of incorporation or by original articles of | 1806 |
incorporation, provide therein for the authority and purpose to | 1807 |
make insurance in states, territories, districts, and counties, | 1808 |
other than the state of Ohio, and in the state of Ohio in respect | 1809 |
of contracts permitted by division (B) of this section, | 1810 |
indemnifying employers against loss or liability for payment of | 1811 |
compensation to workers and employees and their dependents for | 1812 |
death, injury, or occupational disease occasioned in the course of | 1813 |
the employment and to insure and indemnify employers against loss, | 1814 |
expense, and liability by risk of bodily injury or death by | 1815 |
accident, disability, sickness, or disease suffered by workers and | 1816 |
employees for which the employer may be liable or has assumed | 1817 |
liability. | 1818 |
(B) Notwithstanding division (A) of this section: | 1819 |
(1) No contract because of that division is void which | 1820 |
undertakes to indemnify a self-insuring employer against all or | 1821 |
part of such employer's loss in excess of at least fifty thousand | 1822 |
dollars from any one disaster or event arising out of the | 1823 |
employer's liability under this chapter, but no insurance | 1824 |
corporation shall, directly or indirectly, represent an employer | 1825 |
in the settlement, adjudication, determination, allowance, or | 1826 |
payment of claims. The superintendent of insurance shall enforce | 1827 |
this prohibition by such disciplinary orders directed against the | 1828 |
offending insurance corporation as the superintendent of insurance | 1829 |
deems appropriate in the circumstances and the administrator of | 1830 |
workers' compensation shall enforce this prohibition by such | 1831 |
disciplinary orders directed against the offending employer as the | 1832 |
administrator deems appropriate in the circumstances, which orders | 1833 |
may include revocation of the insurance corporation's right to | 1834 |
enter into indemnity contracts and revocation of the employer's | 1835 |
status as a self-insuring employer. | 1836 |
(2) The administrator may enter into a contract of indemnity | 1837 |
with any such employer upon such terms, payment of such premium, | 1838 |
and for such amount and form of indemnity as the administrator | 1839 |
determines and the bureau of workers' compensation board of | 1840 |
directors may procure reinsurance of the liability of the public | 1841 |
and private funds under this chapter, or any part of the liability | 1842 |
in respect of either or both of the funds, upon such terms and | 1843 |
premiums or other payments from the fund or funds as the | 1844 |
administrator deems prudent in the maintenance of a solvent fund | 1845 |
or funds from year to year. When making the finding of fact which | 1846 |
the administrator is required by section 4123.35 of the Revised | 1847 |
Code to make with respect to the financial ability of an employer, | 1848 |
no contract of indemnity, or the ability of the employer to | 1849 |
procure such a contract, shall be considered as increasing the | 1850 |
financial ability of the employer. | 1851 |
(C) Nothing in this section shall be construed to prohibit | 1852 |
the administrator or an other-states' insurer from providing to | 1853 |
employers in this state other-states' coverage in accordance with | 1854 |
section 4123.292 of the Revised Code. | 1855 |
(D) Notwithstanding any other section of the Revised Code, | 1856 |
but subject to division (A) of this section, the superintendent | 1857 |
of insurance shall have the sole authority to regulate any | 1858 |
insurance products, except for the bureau of workers' compensation | 1859 |
and those products offered by the bureau, that indemnify or | 1860 |
insure employers against workers' compensation losses in this | 1861 |
state or that are sold to employers in this state. | 1862 |
Section 102. That existing sections 121.52, 4121.12, | 1863 |
4121.125, 4121.62, 4121.70, 4121.75, 4123.29, 4123.34, 4123.35, | 1864 |
and 4123.82 of the Revised Code are hereby repealed. | 1865 |
Section 201. All items in Sections 201 and 203 of this act | 1866 |
are hereby appropriated out of any moneys in the state treasury | 1867 |
to the credit of the designated fund. For all appropriations | 1868 |
made in this act, those in the first column are for fiscal year | 1869 |
2010, and those in the second column are for fiscal year 2011. | 1870 |
FND | AI | AI TITLE | Appropriations | 1871 |
1872 | |
Workers' Compensation Fund Group | 1873 |
7023 | 855401 | William Green Lease Payments to OBA | $ | 19,871,795 | $ | 19,049,395 | 1874 | ||||
7023 | 855407 | Claims, Risk and Medical Management | $ | 138,129,873 | $ | 142,659,528 | 1875 | ||||
7023 | 855408 | Fraud Prevention | $ | 12,546,239 | $ | 13,101,761 | 1876 | ||||
7023 | 855409 | Administrative Services | $ | 124,674,772 | $ | 120,192,995 | 1877 | ||||
7023 | 855410 | Attorney General Payments | $ | 4,621,850 | $ | 4,621,850 | 1878 | ||||
8220 | 855606 | Coal Workers' Fund | $ | 91,894 | $ | 91,894 | 1879 | ||||
8230 | 855608 | Marine Industry | $ | 53,952 | $ | 53,952 | 1880 | ||||
8250 | 855605 | Disabled Workers Relief Fund | $ | 492,500 | $ | 492,500 | 1881 | ||||
8260 | 855609 | Safety and Hygiene Operating | $ | 20,734,750 | $ | 20,734,750 | 1882 | ||||
8260 | 855610 | Gear Program | $ | 4,000,000 | $ | 4,000,000 | 1883 | ||||
8290 | 855604 | Long Term Care Loan Program | $ | 2,000,000 | $ | 2,000,000 | 1884 | ||||
TOTAL WCF Workers' Compensation | 1885 | ||||||||||
Fund Group | $ | 327,217,625 | $ | 326,998,625 | 1886 |
Federal Special Revenue Fund Group | 1887 |
3490 | 855601 | OSHA Enforcement | $ | 1,604,140 | $ | 1,604,140 | 1888 | ||||
TOTAL FED Federal Special Revenue Fund Group | $ | 1,604,140 | $ | 1,604,140 | 1889 | ||||||
TOTAL ALL BUDGET FUND GROUPS | $ | 328,821,765 | $ | 328,602,765 | 1890 |
WILLIAM GREEN LEASE PAYMENTS | 1891 |
The foregoing appropriation item 855401, William Green Lease | 1892 |
Payments to OBA, shall be used for lease payments to the Ohio | 1893 |
Building Authority, and these appropriations shall be used to meet | 1894 |
all payments at the times they are required to be made during the | 1895 |
period from July 1, 2009, to June 30, 2011, by the Bureau of | 1896 |
Workers' Compensation to the Ohio Building Authority pursuant to | 1897 |
leases and agreements made under Chapter 152. of the Revised Code | 1898 |
and Section 6 of Am. Sub. H.B. 743 of the 118th General Assembly. | 1899 |
Of the amounts received in Fund 7023, appropriation item 855401, | 1900 |
William Green Lease Payments to OBA, up to $38,921,190 shall be | 1901 |
restricted for lease rental payments to the Ohio Building | 1902 |
Authority. If it is determined that additional appropriations are | 1903 |
necessary for such purpose, such amounts are hereby appropriated. | 1904 |
Notwithstanding any provision of law to the contrary, all | 1905 |
tenants of the William Green Building not funded by the Workers' | 1906 |
Compensation Fund (Fund 7023) shall pay their fair share of the | 1907 |
costs of lease payments to the Workers' Compensation Fund (Fund | 1908 |
7023) by intrastate transfer voucher. | 1909 |
WORKERS' COMPENSATION FRAUD UNIT | 1910 |
The Workers' Compensation Section Fund (Fund 1950) that is | 1911 |
used by the Attorney General shall receive payments from the | 1912 |
Bureau of Workers' Compensation at the beginning of each quarter | 1913 |
of each fiscal year to fund expenses of the Workers' Compensation | 1914 |
Fraud Unit of the Attorney General's Office. Of the foregoing | 1915 |
appropriation item 855410, Attorney General Payments, $828,200 in | 1916 |
fiscal year 2010 and $828,200 in fiscal year 2011 shall be used | 1917 |
to provide these payments. | 1918 |
SAFETY AND HYGIENE | 1919 |
Notwithstanding section 4121.37 of the Revised Code, the | 1920 |
Administrator of Workers' Compensation shall transfer moneys from | 1921 |
the State Insurance Fund so that appropriation item 855609, Safety | 1922 |
and Hygiene Operating, is provided $20,734,750 in fiscal year 2010 | 1923 |
and $20,734,750 in fiscal year 2011. | 1924 |
OSHA ON-SITE CONSULTATION PROGRAM | 1925 |
The Bureau of Workers' Compensation may designate a portion | 1926 |
of appropriation item 855609, Safety and Hygiene Operating, to be | 1927 |
used to match federal funding for the federal Occupational Safety | 1928 |
and Health Administration's (OSHA) on-site consultation program. | 1929 |
VOCATIONAL REHABILITATION | 1930 |
The Bureau of Workers' Compensation and the Rehabilitation | 1931 |
Services Commission shall enter into an interagency agreement for | 1932 |
the provision of vocational rehabilitation services and staff to | 1933 |
mutually eligible clients. The bureau shall provide $605,407 in | 1934 |
fiscal year 2010 and $605,407 in fiscal year 2011 from the State | 1935 |
Insurance Fund to fund vocational rehabilitation services and | 1936 |
staff in accordance with the interagency agreement. | 1937 |
FUND BALANCE | 1938 |
Any unencumbered cash balance in excess of $45,000,000 in the | 1939 |
Workers' Compensation Fund (Fund 7023) on the thirtieth day of | 1940 |
June of each fiscal year shall be used to reduce the | 1941 |
administrative cost rate charged to employers to cover | 1942 |
appropriations for Bureau of Workers' Compensation operations. | 1943 |
Section 203. WCC WORKERS' COMPENSATION COUNCIL | 1944 |
5FV0 | 321600 | Remuneration Expenses | $ | 471,200 | $ | 471,200 | 1945 | ||||
TOTAL 5FV0 Workers' Compensation Council Remuneration Fund | $ | 471,200 | $ | 471,200 | 1946 | ||||||
TOTAL ALL BUDGET FUND GROUPS | $ | 471,200 | $ | 471,200 | 1947 |
WORKERS' COMPENSATION COUNCIL | 1948 |
The foregoing appropriation item 321600, Remuneration | 1949 |
Expenses, shall be used to pay the payroll and fringe benefit | 1950 |
costs for employees of the Workers' Compensation Council. | 1951 |
Between July 1, 2009, and December 31, 2009, the | 1952 |
Administrator of Workers' Compensation shall direct the Treasurer | 1953 |
of State to transfer $325,000 in cash from the Workers' | 1954 |
Compensation Fund (Fund 7023) to the Workers' Compensation Council | 1955 |
Fund, created in division (C) of section 4121.79 of the Revised | 1956 |
Code, in three installments. These transfers shall be made | 1957 |
according to a schedule agreed to by the Director of the Workers' | 1958 |
Compensation Council and the Administrator of Workers' | 1959 |
Compensation. | 1960 |
If the Workers' Compensation Council contracts with an | 1961 |
independent actuary to have that actuary perform an actuarial | 1962 |
valuation as described in division (A)(1) of Section 512.45 of Am. | 1963 |
Sub. H.B. 100 of the 127th General Assembly as amended by this | 1964 |
act, or a review as described in division (A)(2), (3), or (4) of | 1965 |
Section 512.45 of Am. Sub. H.B. 100 of the 127th General Assembly | 1966 |
as amended by this act, on or before January 31, 2011, the | 1967 |
Director of the Workers' Compensation Council shall request the | 1968 |
funds necessary to cover the expenses of the valuation or review, | 1969 |
which amount shall not exceed $650,000, from the Administrator of | 1970 |
Workers' Compensation. The Administrator shall direct the | 1971 |
Treasurer of State to transfer the amount requested by the | 1972 |
Director from the Workers' Compensation Fund (Fund 7023) to the | 1973 |
Workers' Compensation Council Fund created in division (C) of | 1974 |
section 4121.79 of the Revised Code. The Director and | 1975 |
Administrator shall agree to a schedule for the transfer of these | 1976 |
funds. | 1977 |
Section 211. DEPUTY INSPECTOR GENERAL FOR BWC AND OIC FUNDING | 1978 |
On July 1, 2009, January 1, 2010, July 1, 2010, and January | 1979 |
1, 2011 or as soon after each date as possible, the Director of | 1980 |
Budget and Management shall transfer $212,500 in cash from the | 1981 |
Workers' Compensation Fund (Fund 7023) to the Deputy Inspector | 1982 |
General for the Bureau of Workers' Compensation and Industrial | 1983 |
Commission Fund (Fund 5FT0). The amounts transferred are | 1984 |
appropriated. | 1985 |
Should additional amounts be necessary, the Inspector | 1986 |
General may seek Controlling Board approval for additional | 1987 |
transfers of cash and to increase the amount appropriated from | 1988 |
appropriation item 965604, Deputy Inspector General for the Bureau | 1989 |
of Workers' compensation and Industrial Commission, in the amount | 1990 |
of the additional transfers. | 1991 |
Section 215.01. That Section 512.45 of Am. Sub. H.B. 100 of | 1992 |
the 127th General Assembly be amended to read as follows: | 1993 |
Sec. 512.45. (A) The Workers' Compensation Council | 1994 |
contract with an independent actuary to have that actuary perform | 1995 |
1996 | |
necessary: | 1997 |
(1) An actuarial valuation of the assets, liabilities, and | 1998 |
funding requirements of the funds specified in Chapters 4121., | 1999 |
4123.,
4127., and 4131. of the Revised Code | 2000 |
(2) A review of a recent actuarial valuation performed | 2001 |
pursuant to division (C)(1) of section 4121.125 of the Revised | 2002 |
Code; | 2003 |
(3) A review of the study required by Section 512.50 of Am. | 2004 |
Sub. H.B. 100 of the 127th General Assembly; | 2005 |
(4) A review of any actuarial analysis of any of the funds | 2006 |
specified in Chapters 4121., 4123., 4127., and 4131. of the | 2007 |
Revised Code that is completed as required by the Auditor of | 2008 |
State. | 2009 |
(B) If the Council contracts with an actuary | 2010 |
2011 | |
section, that actuary shall prepare a report of the valuation | 2012 |
described in that division in accordance with the standards of | 2013 |
practice promulgated by the Actuarial Standards Board of the | 2014 |
American Academy of Actuaries and shall submit that report to the | 2015 |
Council. The actuary shall include all of the following | 2016 |
information in the report: | 2017 |
| 2018 |
evaluated; | 2019 |
| 2020 |
used in the valuation; | 2021 |
| 2022 |
cost method, and asset valuation method used in the valuation; | 2023 |
| 2024 |
the actuarial accrued compensation and benefit liabilities and | 2025 |
unfounded actuarial accrued compensation and benefit liabilities. | 2026 |
| 2027 |
division (A)(2), (3), or (4) of this section, that actuary shall | 2028 |
prepare a report of the review in accordance with the standards of | 2029 |
practice promulgated by the Actuarial Standards Board of the | 2030 |
American Academy of Actuaries and shall submit that report to the | 2031 |
Council. The actuary shall include all of the following | 2032 |
information in the report: | 2033 |
(1) A summary of the valuation, study, or analysis the | 2034 |
actuary reviewed; | 2035 |
(2) The actuarial assumptions and methods and the data | 2036 |
underlying the valuation, study, or analysis, as appropriate; | 2037 |
(3) An assessment of the adequacy of each of the funds | 2038 |
specified in Chapters 4121., 4123., 4127., and 4131. of the | 2039 |
Revised Code that were evaluated to pay the claims authorized | 2040 |
under those chapters; | 2041 |
(4) A discussion of the reasonableness of the findings of | 2042 |
valuation, study, or analysis, and whether the valuation, study, | 2043 |
or analysis was performed in accordance with the actuarial | 2044 |
standards of practice promulgated by the Actuarial Standards Board | 2045 |
of the American Academy of Actuaries; | 2046 |
(5) A description of any additional studies the actuary | 2047 |
recommends to assist the Council in the performance of its duties. | 2048 |
(D) If the Council contracts with an actuary under this | 2049 |
section, the Council shall submit to the | 2050 |
2051 | |
2052 | |
later than | 2053 |
2054 |
Section 215.02. That existing Section 512.45 of Am. Sub. H.B. | 2055 |
100 of the 127th General Assembly is hereby repealed. | 2056 |
Section 217. All members serving on the Workers' | 2057 |
Compensation Council on the effective date of section 4121.75 of | 2058 |
the Revised Code as amended by this act shall serve the duration | 2059 |
of their terms as appointed. Upon the expiration of the terms of | 2060 |
the members serving on the Council on the effective date of | 2061 |
section 4121.75 of the Revised Code as amended by this act, new | 2062 |
appointments shall be made to the Council in accordance with | 2063 |
section 4121.75 of the Revised Code as amended by this act. The | 2064 |
President of the Senate shall make the initial appointment of the | 2065 |
member described in division (A)(7) of section 4121.75 of the | 2066 |
Revised Code as amended by this act, and thereafter the President | 2067 |
and the Speaker of the House shall alternate appointments as | 2068 |
described in division (A)(7) of section 4121.75 of the Revised | 2069 |
Code as amended by this act. | 2070 |
Section 219. The Speaker of the House of Representatives, | 2071 |
the President of the Senate, and the Governor shall make the | 2072 |
initial appointments of the members of the Labor-Management | 2073 |
Government Advisory Council described in divisions (A)(5), (6), | 2074 |
and (7) of section 4121.70 of the Revised Code, as amended by | 2075 |
this act, within sixty days after the effective date of section | 2076 |
4121.70 of the Revised Code, as amended by this act. The members | 2077 |
appointed pursuant to this section shall serve terms of six | 2078 |
years, as described in division (B) of section 4121.70 of the | 2079 |
Revised Code. Subsequent appointments of the members described in | 2080 |
divisions (A)(5), (6), and (7) of section 4121.70 of the Revised | 2081 |
Code, as amended by this act, shall be made in accordance with | 2082 |
section 4121.70 of the Revised Code, as amended by this act. | 2083 |
Section 220. (A) For the policy year beginning July 1, 2009 | 2084 |
and ending June 30, 2010, and thereafter until the Bureau of | 2085 |
Workers' Compensation completes the Bureau's transition to the | 2086 |
adoption of a split-experienced rating plan in conformity with the | 2087 |
current methodology of the National Council of Compensation | 2088 |
Insurance, the Bureau shall offer to an eligible construction | 2089 |
industry employer a construction industry cap on the employer's | 2090 |
experience modification as provided in this section. | 2091 |
(B) The Bureau shall establish the employer's experience | 2092 |
modifier at .99 for the policy year beginning July 1, 2009, and | 2093 |
ending June 30, 2010, unless the employer opts to not participate. | 2094 |
The Bureau shall adjust the premium rate calculation of a | 2095 |
participating employer by including an adjustment factor in the | 2096 |
calculation of the blended rate of the employer to establish a | 2097 |
blended rate that the employer would have paid as established by | 2098 |
using the initially calculated experience modifier. | 2099 |
(C) The construction industry cap is available to a | 2100 |
construction industry employer that satisfies all of the following | 2101 |
requirements: | 2102 |
(1) The employer's predominant premium for the policy year | 2103 |
beginning July 1, 2007, is in Industry Group 4, Construction, as | 2104 |
identified in Appendix A to section 4123-17-05 of the Ohio | 2105 |
Administrative Code. | 2106 |
(2) The employer had an experience modifier of less than or | 2107 |
equal to 1.0 in the preceding policy year. | 2108 |
(3) The experience modifier initially calculated for the | 2109 |
employer for the current policy year is greater than 1.0 and not | 2110 |
more than 1.5. | 2111 |
(4) The employer participates in a safety program approved by | 2112 |
the Bureau or by the Occupational Safety and Health Administration | 2113 |
during the policy year to improve accident prevention. | 2114 |
Section 221. Law contained in the Main Operating | 2115 |
Appropriations Act of the 128th General Assembly that applies | 2116 |
generally to the appropriations made in that act also applies | 2117 |
generally to the appropriations made in this act. | 2118 |
Section 301. The provisions of law contained in this act, and | 2119 |
their applications, are severable. If any provision of law | 2120 |
contained in this act, or if any application of any provision of | 2121 |
law contained in this act, is held invalid, the invalidity does | 2122 |
not affect other provisions of law contained in this act and their | 2123 |
applications that can be given effect without the invalid | 2124 |
provision or application. | 2125 |
Section 311. Except as otherwise provided in this act, the | 2126 |
amendment, enactment, or repeal by this act of a section of law is | 2127 |
exempt from the referendum because it is or relates to an | 2128 |
appropriation for current expenses within the meaning of Ohio | 2129 |
Constitution, Article II, Section 1d and section 1.471 of the | 2130 |
Revised Code and therefore takes effect immediately when this act | 2131 |
becomes law. | 2132 |
Section 313. The amendment, enactment, or repeal by this act | 2133 |
of the divisions and sections of law listed below are subject to | 2134 |
the referendum under Ohio Constitution, Article II, Section 1c | 2135 |
and therefore take effect on the ninety-first day after this act | 2136 |
is filed with the Secretary of State. | 2137 |
The amendment by this act of divisions (A)(4)(g) and (B) of | 2138 |
section 4123.29, division (B) of section 4123.34 and sections | 2139 |
4121.12, 4121.125, 4121.62, 4121.70, and 4123.35 of the Revised | 2140 |
Code. | 2141 |