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Am. Sub. H. B. No. 15 As Re-reported by the House Finance and Appropriations CommitteeAs Re-reported by the House Finance and Appropriations Committee
128th General Assembly | Regular Session | 2009-2010 |
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Cosponsor:
Representative Dodd
A BILL
To amend sections 121.52, 4121.12, 4121.125, 4121.62,
4121.70, and 4123.34 of the Revised Code to create
the Deputy Inspector General for the Bureau of
Workers' Compensation and Industrial Commission
Fund; to make other changes to the Workers'
Compensation Law; to make appropriations for the
Bureau of Workers' Compensation and for the
Workers' Compensation Council for the biennium
beginning July 1, 2009, and ending June 30, 2011;
and to provide authorization and conditions for
the operation of the Bureau's and the Council's
programs.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 101. That sections 121.52, 4121.12, 4121.125,
4121.62, 4121.70, and 4123.34 of the Revised Code be amended to
read as follows:
Sec. 121.52. There is hereby created in the office of the
inspector general the office of deputy inspector general for the
bureau of workers' compensation and industrial commission. The
inspector general shall appoint the deputy inspector general, and
the deputy inspector general shall serve at the pleasure of the
inspector general. A person employed as the deputy inspector
general shall have the same qualifications as those specified in
section 121.49 of the Revised Code for the inspector general. The
inspector general shall provide professional and clerical
assistance to the deputy inspector general.
The deputy inspector general for the bureau of workers'
compensation and the industrial commission shall investigate
wrongful acts or omissions that have been committed by or are
being committed by officers or employees of the bureau of workers'
compensation and the industrial commission. The deputy inspector
general has the same powers and duties regarding matters
concerning the bureau and the commission as those specified in
sections 121.42, 121.43, and 121.45 of the Revised Code for the
inspector general. Complaints may be filed with the deputy
inspector general in the same manner as prescribed for complaints
filed with the inspector general under section 121.46 of the
Revised Code. All investigations conducted and reports issued by
the deputy inspector general are subject to section 121.44 of the
Revised Code.
There is hereby created in the state treasury the deputy
inspector general for the bureau of workers' compensation and
industrial commission fund, which shall consist of moneys
deposited into it that the inspector general receives from the
administrator of
workers' compensation and receives from the
industrial commission in accordance with this section. The
inspector general shall use the fund to
pay the costs
incurred
by the deputy inspector general in
performing the duties
of the
deputy inspector general as required
under this section.
Beginning the fiscal year quarter that begins October 1,
2009, and
at the beginning of each quarter of each fiscal year
thereafter,
the inspector general shall submit a billing to the
administrator
and to the chairperson of the industrial commission
that reflects
the costs incurred by the deputy inspector general
during the
fiscal year quarter immediately preceding the quarter
that the
inspector general submits the billing. The billing
submitted to
the administrator and the chairperson shall reflect
each agency's
respective share of the costs incurred by the
deputy inspector
general for work performed regarding the
respective agency. At the
beginning of the fiscal year quarter
that starts October 1, 2009,
and at the beginning of each quarter
of each fiscal year
thereafter, upon the receipt of the billings
the administrator and
the chairperson shall process
intrastate
transfer vouchers to pay
for those billings.
The members of the industrial commission, bureau of workers'
compensation board of directors, workers' compensation audit
committee, workers' compensation actuarial committee, and workers'
compensation investment committee, and the administrator of
workers' compensation, and employees of the industrial commission
and the bureau shall cooperate with and provide assistance to the
deputy inspector general in the performance of any investigation
conducted by the deputy inspector general. In particular, those
persons shall make their premises, equipment, personnel, books,
records, and papers readily available to the deputy inspector
general. In the course of an investigation, the deputy inspector
general may question any person employed by the industrial
commission or the administrator and any person transacting
business with the industrial commission, the board, the audit
committee, the actuarial committee, the investment committee, the
administrator, or the bureau and may inspect and copy any books,
records, or papers in the possession of those persons or entities,
taking care to preserve the confidentiality of information
contained in responses to questions or the books, records, or
papers that are made confidential by law.
In performing any investigation, the deputy inspector general
shall avoid interfering with the ongoing operations of the
entities being investigated, except insofar as is reasonably
necessary to successfully complete the investigation.
At the conclusion of an investigation conducted by the deputy
inspector general for the bureau of workers' compensation and
industrial commission, the deputy inspector general shall deliver
to the board, the administrator, the industrial commission, and
the governor any case for which remedial action is necessary. The
deputy inspector general shall maintain a public record of the
activities of the office of the deputy inspector general to the
extent permitted under this section, ensuring that the rights of
the parties involved in each case are protected. The inspector
general shall include in the annual report required under section
121.48 of the Revised Code a summary of the activities of the
deputy inspector general during the previous year.
No person shall disclose any information that is designated
as confidential in accordance with section 121.44 of the Revised
Code or any confidential information that is acquired in the
course of an investigation conducted under this section 121.53 of
the
Revised Code to any person who is not legally entitled to
disclosure of that information.
Sec. 4121.12. (A) There is hereby created the bureau of
workers'
compensation board of directors consisting of eleven
members to be appointed by the governor with the advice and
consent of
the senate. One member shall be
an individual who, on
account of the individual's previous vocation, employment, or
affiliations,
can be classed as a representative of employees; two
members shall be individuals who, on account of their previous
vocation, employment, or affiliations, can be classed as
representatives of employee organizations and at least one of
these two individuals shall be a member of the executive committee
of the largest statewide labor federation; three members
shall be
individuals who, on account of their previous vocation,
employment,
or affiliations, can be classed as representatives of
employers, one of whom
represents self-insuring employers, one of
whom is a state fund employer who employs one hundred or more
employees, and one of whom is a state fund employer who employs
less than one hundred employees; two members shall be individuals
who, on account of their vocation, employment, or affiliations,
can be classed as investment and securities experts who have
direct experience in the management, analysis, supervision, or
investment of assets and are residents of this state; one member
who shall be a certified public accountant; one member who shall
be an actuary who is a member in good standing with the American
academy of actuaries or who is an associate or fellow with the
society of actuaries; and one member shall represent the public
and also be an individual
who, on account of the individual's
previous vocation, employment, or
affiliations, cannot be classed
as either predominantly representative of
employees or of
employers. The
governor shall select the chairperson of the
board
who shall serve as chairperson at the pleasure of the
governor.
None of the members of the board, within one year immediately
preceding the member's appointment, shall have been employed by
the bureau of workers'
compensation or by any person, partnership,
or corporation that has provided to the bureau services of a
financial or investment nature, including the management,
analysis, supervision, or investment of assets.
(B) Of the initial appointments made to the
board, the
governor shall appoint the member who represents
employees, one
member who
represents employers, and the member who
represents
the public to a term
ending one year after the effective date of
this amendment June 11, 2007; one member who represents
employers,
one member
who represents employee organizations, one member who
is an
investment and securities expert, and the member who is a
certified public accountant to a term ending two years after the
effective date of this amendment June 11, 2007; and one member who
represents
employers, one member who represents employee
organizations, one
member who is an investment and securities
expert, and the member
who is an actuary to a term
ending three
years after the effective
date of this amendment June 11, 2007.
Thereafter, terms of office shall
be for
three years, with each
term ending on the same day of the same
month as did the term that
it succeeds. Each member shall hold
office from
the date of the
member's appointment until the end of
the term for
which the
member was appointed.
Members may be reappointed. Any member appointed to fill a
vacancy occurring
prior to the expiration date of the term for
which the
member's predecessor was appointed shall hold office as
a member for the
remainder of that term. A member shall continue
in office subsequent to the
expiration date of the member's term
until a successor takes
office or until a period of sixty days has
elapsed, whichever
occurs first.
(C) In making appointments to the board, the governor shall
select the members from the list of names
submitted by the
workers' compensation board of directors
nominating committee
pursuant to this division. The
nominating committee shall submit
to the governor a list containing four separate names for each of
the members on
the board. Within
fourteen days after the
submission of the list, the governor
shall appoint individuals
from the list.
Within sixty At least thirty days after prior to a vacancy
occurring as a result of
the expiration of a term and within
thirty days after other
vacancies occurring on the board, the
nominating
committee shall
submit an initial list containing four
names for each vacancy.
Within
fourteen days after the submission
of the initial list, the
governor either shall appoint
individuals from that list or
request the nominating committee to
submit another list of four
names for each member the governor
has not appointed from the
initial list, which list the
nominating committee shall submit to
the governor within fourteen
days after the governor's request.
The governor then shall
appoint, within seven days after the
submission of the second
list, one of the individuals from either
list to fill the vacancy
for which the governor has not made an
appointment from the
initial list. If the governor appoints an individual to fill a
vacancy occurring as a result of the expiration of a term, the
individual appointed shall begin serving as a member of the board
when the term for which the individual's predecessor was appointed
expires or immediately upon appointment by the governor, whichever
occurs later. With respect to the filling of
vacancies, the
nominating committee shall provide the governor
with a list of
four individuals who are, in the judgment of the
nominating
committee, the
most fully qualified to accede to
membership on
the
board.
In order for the name of an individual to be submitted to the
governor under this division, the nominating committee shall
approve the
individual by an affirmative vote of a majority of its
members.
(D) All members of the board shall receive
their reasonable
and necessary expenses pursuant to section 126.31 of the Revised
Code while
engaged in the
performance of their duties as members
and also shall receive an annual salary not to exceed sixty
thousand dollars in total, payable on the following basis:
(1) Except as provided in division
(D)(2) of this section, a
member shall receive
two thousand five hundred
dollars during a
month in which the
member attends one or
more meetings of the
board
and shall receive no payment during a month in which the
member attends no
meeting of the board.
(2) A member may receive no more than thirty
thousand dollars
per year to compensate the member for attending meetings of the
board,
regardless of the number of meetings held by the board
during a
year
or the number of meetings in excess of twelve within
a
year that the member
attends.
(3) Except as provided in division (D)(4) of this section, if
a member serves on the workers' compensation audit committee,
workers' compensation actuarial committee, or the workers'
compensation investment committee, the member shall receive two
thousand five hundred dollars during a month in which the member
attends one or more meetings of the committee on which the member
serves and shall receive no payment during any month in which the
member attends no meeting of that committee.
(4) A member may receive no more than thirty thousand dollars
per year to compensate the member for attending meetings of any of
the committees specified in division (D)(3) of this section,
regardless of the number of meetings held by a committee during a
year or the number of committees on which a member serves.
The chairperson of the board shall set the meeting dates of
the
board as necessary to perform the duties of the board under
this
chapter and Chapters 4123., 4125., 4127., 4131., and 4167.
of
the Revised
Code. The board shall meet at least twelve times a
year. The administrator of
workers' compensation shall
provide
professional and
clerical assistance to the board, as the board
considers
appropriate.
(E) Before entering upon the duties of office, each appointed
member of the board shall take an oath of office as required by
sections 3.22 and 3.23 of the Revised Code and file in the office
of the secretary of state the bond required under section 4121.127
of the Revised Code.
(1) Establish the overall administrative policy for the
bureau for the purposes of this chapter and Chapters 4123., 4125.,
4127., 4131., and 4167. of the Revised Code;
(2) Review progress of the bureau in meeting its
cost and
quality objectives and in complying with this chapter
and
Chapters
4123., 4125., 4127., 4131., and 4167. of the Revised Code;
(3) Submit an annual report
to the president of the senate,
the speaker of the house of representatives,
the governor, and the
workers' compensation council and include all of the following in
that report:
(a) An evaluation of the cost and quality objectives of the
bureau;
(b) A statement of the net assets available for the provision
of compensation and benefits under this chapter and Chapters
4123., 4127., and 4131. of the Revised Code as of the last day of
the fiscal year;
(c) A statement of any changes that occurred in the net
assets available, including employer premiums and net investment
income, for the provision of compensation and benefits and payment
of administrative expenses, between the first and last day of the
fiscal year immediately preceding the date of the report;
(d) The following information for each of the six consecutive
fiscal years occurring previous to the report:
(i) A schedule of the net assets available for compensation
and benefits;
(ii) The annual cost of the payment of compensation and
benefits;
(iii) Annual administrative expenses incurred;
(iv) Annual employer premiums allocated for the provision of
compensation and benefits.
(e) A description of any significant changes that occurred
during the six years for which the board provided the information
required under division (F)(3)(d) of this section that affect the
ability of the board to compare that information from year to
year.
(4) Review all independent financial audits of the bureau.
The
administrator shall provide access to records of the bureau to
facilitate the
review required under this division.
(5) Study issues as requested by the administrator or the
governor;
(6) Contract with all of the following:
(a) An independent actuarial firm to assist the board
in
making recommendations to the administrator regarding premium
rates;
(b) An outside investment counsel to assist the workers'
compensation investment committee in fulfilling its duties;
(c) An independent fiduciary counsel to assist the board in
the performance of its duties.
(7) Approve the investment policy developed by the workers'
compensation investment committee pursuant to section 4121.129 of
the Revised Code if the policy satisfies the requirements
specified in section 4123.442 of the Revised Code.
(8) Review and
publish the investment policy no less than
annually and make copies available to interested parties.
(9) Prohibit, on a prospective basis, any
specific investment
it finds to be contrary to the investment
policy approved by the
board.
(10) Vote to open each investment class and allow the
administrator to invest in an investment class only if the board,
by a majority vote, opens that class;
(11) After opening a class but prior to the administrator
investing in that class, adopt rules establishing due diligence
standards for employees of the bureau to follow when investing in
that class and establish policies and procedures to review and
monitor the performance and value of each investment class;
(12) Submit a report annually on the performance and value of
each investment class to the governor, the president and minority
leader of the senate, and the speaker and minority leader of the
house of representatives, and the workers' compensation council.
(13) Advise and consent on all of the following:
(a) Administrative rules the administrator submits
to it
pursuant to division (B)(5) of section 4121.121 of the Revised
Code for
the
classification of occupations or industries, for
premium rates and
contributions, for the amount to be credited to
the surplus fund, for rules
and systems of rating, rate revisions,
and merit rating;
(b) The duties and authority conferred upon the
administrator
pursuant to section 4121.37 of the Revised Code;
(c) Rules the administrator adopts for the health partnership
program and the qualified health plan system, as provided in
sections 4121.44,
4121.441, and 4121.442 of the Revised Code;
(d) Rules the administrator submits to it pursuant to Chapter
4167. of the Revised Code regarding the public employment risk
reduction program and the protection of public health care workers
from exposure incidents.
As used in this division, "public health care worker" and
"exposure incident" have the same meanings as in section 4167.25
of the Revised Code.
(14) Perform all duties required under this chapter and
Chapters 4123., 4125., 4127., 4131., and 4167. of the Revised
Code;
(15) Meet with the governor on an annual basis to discuss the
administrator's performance of the duties specified in this
chapter and Chapters 4123., 4125., 4127., 4131., and 4167. of the
Revised Code;
(16) Develop and participate in a bureau of workers'
compensation board of directors education program that consists of
all of the following:
(a) An orientation component for newly appointed members;
(b) A continuing education component for board members who
have served for at least one year;
(c) A curriculum that includes education about each of the
following topics:
(i) Board member duties and responsibilities;
(ii) Compensation and benefits paid pursuant to this chapter
and Chapters 4123., 4127., and 4131. of the Revised Code;
(iv) Governance processes and procedures;
(vii) Any other subject matter the board believes is
reasonably related to the duties of a board member.
(17) Submit the program developed pursuant to division
(F)(16) of this section to the workers' compensation council for
approval;
(18) Hold all sessions, classes, and other events for the
program developed pursuant to division (F)(16) of this section in
this state.
(G) The board may do both of the following:
(1) Vote to close any investment class;
(2) Create any committees in addition to the workers'
compensation audit committee, the workers' compensation actuarial
committee, and the workers' compensation investment committee that
the board determines are necessary to assist the board in
performing its duties.
(H) The office of a member of the board who is convicted of
or pleads guilty to a felony, a theft offense as defined in
section 2913.01 of the Revised Code, or a violation of section
102.02, 102.03, 102.04, 2921.02, 2921.11, 2921.13, 2921.31,
2921.41, 2921.42, 2921.43, or 2921.44 of the Revised Code shall be
deemed vacant. The vacancy shall be filled in the same manner as
the original appointment. A person who has pleaded guilty to or
been convicted of an offense of that nature is ineligible to be a
member of the board. A member who receives a bill of indictment
for any of the offenses specified in this section shall be
automatically suspended from the board pending resolution of the
criminal matter.
(I) For the purposes of division (G)(1) of section 121.22 of
the Revised Code, the meeting between the governor and the board
to review the administrator's performance as required under
division (F)(15) of this section shall be considered a meeting
regarding the employment of the administrator.
Sec. 4121.125. (A) The bureau of workers' compensation board
of directors, based upon recommendations of the workers'
compensation actuarial committee, may contract with one or more
outside actuarial firms
and other professional persons, as the
board
determines necessary, to assist the board in
measuring the
performance of Ohio's workers' compensation system
and in
comparing Ohio's workers' compensation system to other
state and
private workers' compensation systems. The board, actuarial firm
or firms, and professional persons
shall make such measurements
and comparisons using accepted
insurance industry standards,
including, but not limited to,
standards promulgated by the
National Council on
Compensation Insurance.
(B) The board may contract with one or more
outside
firms to
conduct management and financial audits of the workers'
compensation
system, including audits of the reserve fund
belonging to the state insurance
fund, and to establish objective
quality management principles and methods by
which to review the
performance of the workers' compensation system.
(C) The board shall do all of the following:
(1) Contract to have prepared annually by or under the
supervision of an actuary a report that meets the requirements
specified under division (E) of this section and that consists of
an actuarial valuation of the assets, liabilities, and funding
requirements of the state insurance fund and all other funds
specified in this chapter and Chapters 4123., 4127., and 4131. of
the Revised Code;
(2) Require that the actuary or person supervised by an
actuary referred to in division (C)(1) of this section complete
the valuation in accordance with the actuarial standards of
practice promulgated by the actuarial standards board of the
American academy of actuaries;
(3) Submit the report referred to in division (C)(1) of this
section to the workers' compensation council and the standing
committees of the house of representatives and the senate with
primary responsibility for workers' compensation legislation not
later than on or before the first day of September November
following the year for which
the valuation was made;
(4) Have an actuary or a person who provides actuarial
services under the supervision of an actuary, at such time as the
board determines, and at least once during the five-year period
that commences on the effective date of this amendment September
10, 2007, and once
within each five-year period thereafter,
conduct an actuarial
investigation of the experience of
employers, the mortality,
service, and injury rate of employees,
and the payment of
temporary total disability, permanent partial
disability, and
permanent total disability under sections 4123.56
to 4123.58 of
the Revised Code to update the actuarial
assumptions used in the
report required by division (C)(1) of
this section;
(5) Submit the report required under division (F) of this
section to the council and the standing committees of the house of
representatives and the senate with primary responsibility for
workers' compensation legislation not later than the first day of
November following the fifth year of the period that the report
covers;
(6) Have prepared by or under the supervision of an actuary
an actuarial analysis of any introduced legislation expected to
have a measurable financial impact on the workers' compensation
system;
(7) Submit the report required under division (G) of this
section to the legislative service commission, the standing
committees of the house of representatives and the senate with
primary responsibility for workers' compensation legislation, and
the council not later than sixty days after the date of
introduction of the legislation.
(D) The administrator of workers' compensation and the
industrial commission shall
compile information and provide access
to records of the bureau
and the industrial commission to the
board to the extent
necessary for fulfillment of both of the
following
requirements:
(1) Conduct of the measurements and comparisons
described in
division (A) of this section;
(2) Conduct of the management and financial audits and
establishment of the principles and methods described in division
(B) of this section.
(E) The firm or person with whom the board contracts pursuant
to division (C)(1) of this section shall prepare a report of the
valuation and submit the report to the board. The firm or person
shall include all of the following information in the report that
is required under division (C)(1) of this section:
(1) A summary of the compensation and benefit provisions
evaluated;
(2) A summary of the census data and financial information
used in the valuation;
(3) A description of the actuarial assumptions, actuarial
cost method, and asset valuation method used in the valuation;
(4) A summary of findings that includes a statement of the
actuarial accrued compensation and benefit liabilities and
unfunded actuarial accrued compensation and benefit liabilities;
(5) A schedule showing the effect of any changes in the
compensation and benefit provisions, actuarial assumptions, or
cost methods since the previous annual actuarial valuation report
was submitted to the board.
(F) The actuary or person whom the board designates to
conduct an actuarial investigation under division (C)(4) of this
section shall prepare a report of the actuarial investigation and
shall submit the report to the board. The actuary or person shall
prepare the report and make any recommended changes in actuarial
assumptions in accordance with the actuarial standards of practice
promulgated by the actuarial standards board of the American
academy of actuaries. The actuary or person shall include all of
the following information in the report:
(1) A summary of relevant decrement and economic assumption
experience;
(2) Recommended changes in actuarial assumptions to be used
in subsequent actuarial valuations required by division (C)(1) of
this section;
(3) A measurement of the financial effect of the recommended
changes in actuarial assumptions.
(G) The actuary or person whom the board designates to
conduct the actuarial analysis under division (C)(6) of this
section shall prepare a report of the actuarial analysis and shall
submit that report to the board. The actuary or person shall
complete the analysis in accordance with the actuarial standards
of practice promulgated by the actuarial standards board of the
American academy of actuaries. The actuary or person shall include
all of the following information in the report:
(1) A summary of the statutory changes being evaluated;
(2) A description of or reference to the actuarial
assumptions and actuarial cost method used in the report;
(3) A description of the participant group or groups included
in the report;
(4) A statement of the financial impact of the legislation,
including the resulting increase, if any, in employer premiums, in
actuarial accrued liabilities, and, if an increase in actuarial
accrued liabilities is predicted, the per cent of premium increase
that would be required to amortize the increase in those
liabilities as a level per cent of employer premiums over a period
not to exceed thirty years.
(5) A statement of whether the employer premiums paid to the
bureau of workers' compensation after the proposed change is
enacted are expected to be sufficient to satisfy the funding
objectives established by the board.
(H) The board may, at any time, request an actuary to make
any studies or actuarial valuations to determine the adequacy of
the premium rates established by the administrator in accordance
with sections 4123.29 and 4123.34 of the Revised Code, and may
adjust those rates as recommended by the actuary.
(I) The board shall have an independent auditor, at least
once every ten years, conduct a fiduciary performance audit of the
investment program of the bureau of workers' compensation. That
audit shall include an audit of the investment policies approved
by the board and investment procedures of the bureau. The board
shall submit a copy of that audit to the auditor of state.
(J) The administrator, with the advice and consent of the
board, shall employ an internal auditor who shall report findings
directly to the board, workers' compensation audit committee, and
administrator, except that the internal auditor shall not report
findings directly to the administrator when those findings involve
malfeasance, misfeasance, or nonfeasance on the part of the
administrator. The board and the workers' compensation audit
committee may request and review internal audits conducted by the
internal auditor.
(K) The administrator
shall pay the expenses incurred by the
board to
effectively fulfill its duties and exercise its powers
under
this section as the administrator pays other operating
expenses
of the bureau.
Sec. 4121.62. (A) The authority granted to the
administrator
of workers' compensation pursuant to sections
4121.61 to 4121.69
of the Revised Code includes the authority to
do all of the
following:
(1) Contract with any public or private person for the
rendition of rehabilitation services;
(2) Take actions and utilize money in the state insurance
fund as necessary to obtain federal funds and assistance in the
maximum amounts and most advantageous proportions and terms
possible;
(3) Conduct rehabilitation educational programs for
employers
and employees;
(4) Establish within the bureau of workers' compensation a
rehabilitation division under the supervision of a director of
rehabilitation appointed by and responsible to the administrator.
(B) The director of the division established is in the
unclassified civil service of the state. The appointing
authority
may designate up to three positions at each facility
under the
jurisdiction of the division, and up to six positions
in the
division which are part of the director's immediate staff
as being
in the unclassified service of the state as long as the
administrator determines that the positions are primarily and
distinctively administrative, managerial, or professional. All
other full-time employees of the division are in the classified
civil service.
(C) The administrator shall establish fees for use of
services offered by the division of rehabilitation, including,
without limitation, the expense of providing rehabilitation
services, counseling, and training. The administrator shall
adopt
rules, in accordance with Chapter 119. of the Revised Code,
which
establish the specific services the division offers and the
amount
of the fee for those services, which amount shall be based
upon
the actual cost of the division providing the services to
the
employer and employee.
(D) Nothing in sections 4121.61 to 4121.69 of the Revised
Code shall be interpreted to grant authority to the administrator
to require a claimant to utilize a public provider of
rehabilitation services, counseling, or training.
Sec. 4121.70. (A) There is hereby created the
labor-management government
advisory council consisting of twelve
members appointed as follows:
(1) The governor, with the advice and consent of the
senate,
shall appoint three members who, by training and
vocation, are
representative of labor and three members who, by
training and
vocation, are representative of employers.
(2) Ex officio, the chairpersons of the standing committees
of
the house of representatives and the senate to which
legislation
concerned with workers' compensation is customarily
referred. A
chairperson may designate the vice-chairperson of the
committee to serve
instead.
(3) One person who by training and vocation represents
labor
and one person who by training and vocation represents
employers
of differing political parties appointed by the speaker
of the
house of representatives.
(4) One person who by training and vocation represents
labor
and one person who by training and vocation represents
employers
of differing political parties appointed by the
president of the
senate.
(B) Members appointed by the governor shall serve for a
term
of six years with each term ending on the same day of the
year in
which the member was first appointed, except that each
member
shall serve for a period of sixty additional days at the
end of
the member's term or until the member's successor is appointed and
qualifies, whichever date occurs first. Of the members first
appointed to the council by the governor, one member each
representing labor and management shall serve an initial term of
two years, one member each representing labor and management
shall
serve a term of four years, and the remaining two members
shall
serve full six-year terms. The members initially appointed
by the
speaker of the house of representatives and the president
of the
senate shall serve a term of six years. Thereafter,
members shall
be appointed to and serve full six-year terms. Members are
eligible for reappointment to any number of additional terms.
Legislative members shall serve a term that coincides with
the two-year legislative session in which they are first
appointed
with each term ending on the thirty-first day of
December of the
even-numbered year. Legislative members are
eligible for
reappointment.
Vacancies on the council shall be filled in the same
manner
as the original appointment. All members of the
council
shall
serve without additional compensation but shall be
reimbursed by
the bureau of workers' compensation for actual and
necessary
expenses.
The council shall advise the bureau of workers' compensation
board of directors
and the administrator of workers' compensation
on the quality and
effectiveness of rehabilitation services and
make recommendations
pertaining to the bureau's rehabilitation
program, including the
operation of that program.
The labor-management government advisory council shall
recommend to the administrator three candidates for the position
of director of rehabilitation. The candidates shall be chosen
for
their ability and background in the field of rehabilitation.
The
administrator shall select a director from the list of
candidates.
Sec. 4123.34. It shall be the duty of the bureau of
workers'
compensation board of directors and the administrator of
workers'
compensation to safeguard and maintain the solvency of
the state
insurance fund and all other funds specified in this
chapter and
Chapters 4121., 4127., and 4131. of the Revised Code.
The
administrator,
in the exercise of the powers and discretion
conferred upon the
administrator in section 4123.29 of the Revised
Code, shall fix and
maintain, with the advice and consent of the
board, for each class of occupation or industry, the lowest
possible
rates of premium consistent with the maintenance of a
solvent state
insurance fund and the creation and maintenance of a
reasonable
surplus, after the payment of legitimate claims for
injury,
occupational disease, and death that the administrator
authorizes to be paid from the state insurance fund for the
benefit of
injured, diseased, and the dependents of killed
employees. In
establishing rates, the administrator shall take
into account the
necessity of ensuring sufficient money is set
aside in the
premium payment security fund to cover any defaults
in premium
obligations. The administrator shall observe all of the
following requirements in fixing the rates of premium for the
risks of occupations or industries:
(A) The administrator shall keep an accurate account of the
money paid in
premiums by each of the several classes of
occupations or
industries, and the losses on account of injuries,
occupational
disease, and death of employees thereof, and also
keep an account
of the money received from each individual
employer and the
amount of losses incurred against the state
insurance fund on
account of injuries, occupational disease, and
death of the
employees of the employer.
(B) Ten per cent A portion of the money paid into the state
insurance
fund shall be set aside for the creation of a surplus
until the
surplus amounts to the sum of one hundred thousand
dollars, after
which time, whenever necessary in the judgment of
the
administrator to guarantee a solvent fund account within the
state insurance fund, a
sum
not exceeding five per cent of all
the money paid into the
state
insurance fund shall be credited to
the surplus fund. Any references in this chapter or in Chapter
4121., 4125., 4127., or 4131. of the Revised Code to the surplus
fund, the surplus created in this division, the statutory surplus
fund, or the statutory surplus of the state insurance fund are
hereby deemed to be references to the surplus fund account. The
administrator may transfer the portion of the state insurance fund
to the surplus fund account as the administrator determines is
necessary to satisfy the needs of the surplus fund account and to
guarantee the
solvency of the state insurance fund and the
surplus fund account.
In addition
to all statutory authority
under this chapter and
Chapter 4121. of
the Revised Code, the
administrator has
discretionary and
contingency authority to
make charges to the
surplus fund account. The
administrator
shall account for all
charges, whether statutory,
discretionary,
or contingency, that
the administrator may make to the
surplus
fund account. A
revision
of basic
rates shall be made annually
on the
first day
of July.
Notwithstanding any provision of the law to the contrary,
one
hundred eighty days after the effective date on which
self-insuring employers first may elect under division (D) of
section 4121.66 of the Revised Code to directly pay for
rehabilitation expenses, the administrator shall calculate the
deficit, if any, in the portion of the surplus fund account that
is used for
reimbursement to self-insuring employers for all
expenses other
than handicapped reimbursement under section
4123.343 of the
Revised Code. The administrator, from time to
time, may
determine
whether the
surplus fund account has such a
deficit and may assess all
self-insuring
employers who
participated in the portion of the
surplus fund account
during
the accrual of the deficit and who during that
time period
have
not made the election under division (D) of
section 4121.66
of
the Revised Code the amount the administrator
determines
necessary to reduce the deficit.
Revisions of basic rates shall be in accordance with the
oldest four of the last five calendar years of the combined
accident and occupational disease experience of the administrator
in the administration of this chapter, as shown by the accounts
kept as provided in this section, excluding the experience of
employers that are no longer active if the administrator
determines that the
inclusion of those employers would have a
significant negative impact on the
remainder of the employers in a
particular manual classification; and the
administrator shall
adopt rules, with the advice and
consent of the board, governing
rate
revisions, the object of which shall be to make an equitable
distribution of losses among the several classes of occupation or
industry, which rules shall be general in their application.
(C) The administrator may apply that form of rating system
that the administrator finds is best calculated to merit
rate or
individually rate the risk more equitably, predicated upon the
basis
of its individual industrial accident and occupational
disease
experience, and may encourage and stimulate accident
prevention. The
administrator shall develop fixed and equitable
rules
controlling the rating system, which rules shall conserve to
each
risk the basic principles of workers' compensation insurance.
(D) The administrator, from the money paid into the state
insurance fund, shall set aside into an account of the state
insurance fund titled a premium payment security fund sufficient
money to pay for any premiums due from an employer and
uncollected
that are in excess of the employer's premium security deposit.
The fund shall be in the custody of the treasurer of state.
All investment earnings of the fund shall be deposited in the
fund. Disbursements from the fund shall be made by the bureau of
workers' compensation upon order of the administrator to the
state
insurance fund. The use of the moneys held by the premium
payment
security fund is restricted to reimbursement to the state
insurance fund of premiums due and uncollected in excess of an
employer's premium security deposit. The moneys constituting the
premium payment security fund shall be maintained without regard
to or reliance upon any other fund. This section does not
prevent
the deposit or investment of the premium payment security
fund
with any other fund created by this chapter, but the premium
payment security fund is separate and distinct for every other
purpose and a strict accounting thereof shall be maintained.
(E) The administrator may grant discounts on premium rates
for employers who meet either of the following requirements:
(1) Have not incurred a compensable injury for one year or
more and who maintain an employee safety committee or similar
organization or make periodic safety inspections of the
workplace.
(2) Successfully complete a loss prevention program
prescribed by the superintendent of the division of safety and
hygiene and conducted by the division or by any other person
approved by the superintendent.
(F)(1) In determining the premium rates for the
construction
industry the administrator shall calculate the employers' premiums
based upon the actual remuneration
construction industry employees
receive from construction
industry employers, provided that the
amount of remuneration the
administrator uses in calculating the
premiums shall not exceed
an average weekly wage equal to one
hundred fifty per cent of the statewide
average weekly wage
as
defined in division (C) of section 4123.62 of the Revised
Code.
(2) Division (F)(1) of this section shall not be construed
as
affecting the manner in which benefits to a claimant are
awarded
under this chapter.
(3) As used in division (F) of this section, "construction
industry" includes any activity performed in connection with the
erection, alteration, repair, replacement, renovation,
installation, or demolition of any building, structure, highway,
or bridge.
Section 102. That existing sections 121.52, 4121.12,
4121.125, 4121.62, 4121.70, and 4123.34 of the Revised Code are
hereby repealed.
Section 201. All items in Sections 201 and 203 of this act
are hereby
appropriated
out
of
any moneys
in the state treasury
to the credit
of the
designated
fund. For all
appropriations
made in this act,
those
in the
first
column are for fiscal year
2010, and those in
the
second
column
are for fiscal year 2011.
FND |
AI |
|
AI TITLE |
|
|
|
Appropriations |
BWC BUREAU OF WORKERS' COMPENSATION
Workers' Compensation Fund Group
7023 |
855401 |
|
William Green Lease Payments to OBA |
|
$ |
19,871,795 |
|
$ |
19,049,395 |
7023 |
855407 |
|
Claims, Risk and Medical Management |
|
$ |
138,129,873 |
|
$ |
142,659,528 |
7023 |
855408 |
|
Fraud Prevention |
|
$ |
12,546,239 |
|
$ |
13,101,761 |
7023 |
855409 |
|
Administrative Services |
|
$ |
124,355,772 |
|
$ |
119,767,995 |
7023 |
855410 |
|
Attorney General Payments |
|
$ |
4,621,850 |
|
$ |
4,621,850 |
8220 |
855606 |
|
Coal Workers' Fund |
|
$ |
91,894 |
|
$ |
91,894 |
8230 |
855608 |
|
Marine Industry |
|
$ |
53,952 |
|
$ |
53,952 |
8250 |
855605 |
|
Disabled Workers Relief Fund |
|
$ |
492,500 |
|
$ |
492,500 |
8260 |
855609 |
|
Safety and Hygiene Operating |
|
$ |
20,734,750 |
|
$ |
20,734,750 |
8260 |
855610 |
|
Gear Program |
|
$ |
4,000,000 |
|
$ |
4,000,000 |
8290 |
855604 |
|
Long Term Care Loan Program |
|
$ |
2,000,000 |
|
$ |
2,000,000 |
TOTAL WCF Workers' Compensation |
|
|
|
|
|
|
Fund Group |
|
$ |
326,898,625 |
|
$ |
326,573,625 |
Federal Special Revenue Fund Group
3490 |
855601 |
|
OSHA Enforcement |
|
$ |
1,604,140 |
|
$ |
1,604,140 |
TOTAL FED Federal Special Revenue Fund Group |
|
$ |
1,604,140 |
|
$ |
1,604,140 |
TOTAL ALL BUDGET FUND GROUPS |
|
$ |
328,502,765 |
|
$ |
328,177,765 |
WILLIAM GREEN LEASE PAYMENTS
The foregoing appropriation item 855401, William Green Lease
Payments to OBA,
shall be used for lease payments to the Ohio
Building Authority, and these
appropriations shall be used to meet
all payments at the times they are
required to be made during the
period from July 1, 2009, to June 30, 2011, by
the Bureau of
Workers' Compensation to the Ohio Building Authority pursuant to
leases and agreements made under Chapter 152. of the Revised Code
and Section
6 of Am. Sub. H.B. 743 of the 118th General Assembly.
Of the amounts received
in Fund 7023, appropriation item 855401,
William Green Lease Payments to OBA,
up to $38,921,190 shall be
restricted for lease rental payments to
the Ohio Building
Authority. If it is
determined that additional
appropriations are
necessary for such purpose, such
amounts are
hereby appropriated.
Notwithstanding any provision of law to the contrary,
all
tenants of the
William Green Building not funded by the
Workers'
Compensation Fund (Fund 7023)
shall pay their fair share
of the
costs of lease payments to the Workers'
Compensation Fund
(Fund
7023) by intrastate transfer voucher.
WORKERS' COMPENSATION FRAUD UNIT
The Workers' Compensation Section Fund (Fund 1950) that is
used by the Attorney General shall
receive payments from
the
Bureau of Workers' Compensation at the
beginning of each quarter
of each
fiscal year to fund expenses of
the Workers' Compensation
Fraud Unit of the
Attorney General's
Office. Of the foregoing
appropriation item 855410,
Attorney
General Payments, $828,200 in
fiscal year 2010 and $828,200 in
fiscal
year 2011 shall be used
to provide these payments.
Notwithstanding section 4121.37 of the Revised Code, the
Administrator of Workers' Compensation shall
transfer moneys from
the State Insurance
Fund so that
appropriation item 855609,
Safety
and Hygiene Operating, is
provided
$20,734,750 in fiscal
year 2010
and $20,734,750 in fiscal
year 2011.
OSHA ON-SITE CONSULTATION PROGRAM
The Bureau of Workers' Compensation may designate a portion
of appropriation item 855609, Safety and Hygiene Operating, to be
used to match federal funding for the federal Occupational Safety
and Health Administration's (OSHA) on-site consultation program.
VOCATIONAL REHABILITATION
The Bureau of Workers' Compensation and the Rehabilitation
Services Commission
shall enter into an interagency agreement for
the provision of vocational
rehabilitation services and staff to
mutually eligible clients. The bureau
shall provide $605,407 in
fiscal year 2010 and $605,407 in fiscal year 2011
from the State
Insurance Fund to
fund vocational rehabilitation services and
staff in accordance with the
interagency agreement.
Any unencumbered cash balance in excess of $45,000,000 in the
Workers'
Compensation Fund (Fund 7023) on the thirtieth day of
June
of each fiscal year
shall be used to reduce the
administrative
cost rate charged to employers to
cover
appropriations for Bureau
of Workers' Compensation
operations.
Section 203. WCC WORKERS' COMPENSATION COUNCIL
5FV0 |
321600 |
|
Remuneration Expenses |
|
$ |
471,200 |
|
$ |
471,200 |
TOTAL 5FV0 Workers' Compensation Council Remuneration Fund
|
|
$ |
471,200 |
|
$ |
471,200 |
TOTAL ALL BUDGET FUND GROUPS |
|
$ |
471,200 |
|
$ |
471,200 |
WORKERS' COMPENSATION COUNCIL
The foregoing appropriation item 321600, Remuneration
Expenses, shall be used to pay the payroll and fringe benefit
costs for employees of the Workers' Compensation Council.
Between July 1, 2009, and December 31, 2009, the
Administrator of Workers' Compensation shall direct the Treasurer
of State to transfer $325,000 in cash from the Workers'
Compensation Fund (Fund 7023) to the Workers' Compensation Council
Fund, created in division (C) of section 4121.79 of the Revised
Code, in three installments. These transfers shall be made
according to a schedule agreed to by the Director of the Workers'
Compensation Council and the Administrator of Workers'
Compensation.
Section 211. RECOVERING THE COST OF DEPUTY INSPECTOR GENERAL
INVESTIGATIONS FROM BWC AND OIC
On July 1, 2009, or as soon as possible thereafter, the
Director of Budget and Management shall transfer $106,000 in cash
from the Workers' Compensation Fund (Fund 7023) to the Deputy
Inspector General for the Bureau of Workers' Compensation and
Industrial Commission Fund (Fund 5FT0). The amounts transferred
are appropriated.
Beginning October 1,
2009, the Inspector General shall
recover the costs of
investigations prescribed by section 121.52
of the Revised Code
through intrastate transfer voucher billings
to the Bureau of
Workers' Compensation and to the Industrial
Commission.
Notwithstanding division (D) of section 4121.03, division
(B)(10) of section 4121.121, and section 101.532 of the Revised
Code, of the appropriation item 855409, Administrative Services,
in the Bureau of Workers' Compensation and appropriation item
845321, Operating Expenses, in the Industrial Commission, not more
than $425,000 in total in each fiscal year shall be used to
reimburse the Inspector General for the cost of investigations
incurred under section 121.52 of the Revised Code. Should
additional amounts be necessary, the Administrator of Workers'
Compensation and the
Chairperson of the Industrial Commission may
seek Controlling
Board approval to increase the
amounts
designated and the
appropriations necessary to reimburse
the
Inspector General for
the cost of investigations.
Section 221. Law contained in the Main Operating
Appropriations Act of the 128th General Assembly that applies
generally to the appropriations made in that act also applies
generally to the appropriations made in this act.
Section 301. The provisions of law contained in this act, and
their applications, are severable. If any provision of law
contained in this act, or if any application of any provision of
law contained in this act, is held invalid, the invalidity does
not affect other provisions of law contained in this act and their
applications that can be given effect without the invalid
provision or application.
Section 311. Except as otherwise provided in this act, the
amendment, enactment, or repeal by this act of a section of law is
exempt from the referendum because it is or relates to an
appropriation for current expenses within the meaning of Ohio
Constitution, Article II, Section 1d and section 1.471 of the
Revised Code and therefore takes effect immediately when this act
becomes law.
Section 313. The amendment, enactment, or repeal by this act
of the sections of law listed below is subject to the referendum
under Ohio Constitution, Article II, Section 1c and therefore
takes effect on the ninety-first day after this act is filed with
the Secretary of State.
The amendment by this act of sections 4121.12, 4121.125,
4121.62, 4121.70, and 4123.34 of the Revised Code.
|