HB-5493, As Passed Senate, December 12, 2007
November 28, 2007, Introduced by Reps. Scott, Cheeks, Leland, Johnson, Espinoza, Polidori, Gonzales, Lemmons, Coulouris, Young and Dean and referred to the Committee on Tax Policy.
A bill to amend 1969 PA 317, entitled
"Worker's disability compensation act of 1969,"
by amending sections 352 and 391 (MCL 418.352 and 418.391), as
amended by 1984 PA 46.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
352. (1) Beginning January 1,
1982, an An employee
receiving or entitled to receive benefits equal to the maximum
payable to that employee under section 351 or the dependent of a
deceased employee receiving or entitled to receive benefits under
section 321 whose benefits are based on a date of personal injury
between September 1, 1965, and December 31, 1979, shall be entitled
to a supplement to weekly compensation. The supplement shall be
computed using the total annual percentage change in the state
average weekly wage, rounded to the nearest 1/10 of 1%, as
determined under section 355. The supplement shall be computed as a
percentage
of the weekly compensation rate which that the employee
or the dependent of a deceased employee is receiving or is entitled
to receive on January 1, 1982 had the employee been receiving
benefits at that time, rounded to the nearest dollar. The
supplement shall not exceed 5% compounded for each calendar year in
the adjustment period. The percentage change for purposes of the
adjustment shall be computed from the base year through December
31, 1981. A supplement shall not be paid retroactively for any
period of disability before January 1, 1982.
(2) For personal injuries occurring from September 1, 1965,
through December 31, 1968, the base year shall be 1968. For
personal injuries occurring between January 1, 1969 and December
31, 1979, the base year shall be the year in which the personal
injury occurred.
(3) Pursuant to subsection (1), the director shall announce on
December 1, 1981, the supplement percentages payable on January 1,
1982.
(4) All personal injuries found compensable under this act
after
the effective date of this section January 1, 1982 with a
personal injury date before January 1, 1980, shall be paid at a
rate determined pursuant to this section.
(5) An employee who is eligible to receive differential
benefits from the second injury fund shall be paid the supplement
pursuant to this section as reduced by the amount of the
differential payments being made to the employee by the second
injury fund at the time of the payment of the supplement pursuant
to this section.
(6) The supplement paid pursuant to this section, when added
to the original benefit, shall not exceed the maximum weekly rate
of compensation provided in section 355 in effect on the date of
the adjustment.
(7) An employee is not entitled to supplements under this
section for a personal injury for which the liability has been
redeemed.
(8) The supplements under this section shall be paid by an
insurer or self-insurer on a weekly basis. The insurer, self-
insurer, the second injury fund, and the self-insurers' security
fund are entitled to quarterly reimbursement for these payments
from the compensation supplement fund in section 391, except that
an
insurer or self-insurer subject to either section 440a of the
insurance
code of 1956, Act No. 218 of the Public Acts of 1956,
being
section 500.440a of the Michigan Compiled Laws 1956 PA 218,
MCL
500.440a, or section 38b of the
single business tax act, Act
No.
228 of the Public Acts of 1975, being section 208.38b of the
Michigan Compiled Laws 1975 PA 228, MCL 208.38b, or section 423 of
the Michigan business tax act, 2007 PA 36, MCL 208.1423, shall take
a
credit under either section 440a of Act No. 218 of the Public
Acts
of 1956, or section 38b of Act No. 228 of the Public Acts of
1975
the insurance code of 1956,
1956 PA 218, MCL 500.440a, section
38b of the single business tax act, 1975 PA 228, MCL 208.38b, or
section 423 of the Michigan business tax act, 2007 PA 36, MCL
208.1423, as applicable.
(9) This section does not apply to an employee receiving
benefits under section 361(1).
(10) An insurer, self-insurer, the second injury fund, or the
self-insurers' security fund shall make the supplemental payments
required by this section for each quarter of the state's fiscal
year that the state treasurer certifies that there are sufficient
funds available to meet the obligations of the fund created in
section 391 for that quarter. The state treasurer shall certify
whether there are sufficient funds in the fund created in section
391 to meet the obligations of that fund for each quarter of the
fiscal year of the state on or before the first day of each
quarter.
(11) An insurer, self-insurer, the second injury fund, or the
self-insurers' security fund shall make the supplemental payments
required by this section for the period July 1, 1982 to September
30, 1982 and shall be reimbursed for those payments.
Sec. 391. (1) The compensation supplement fund is created as a
separate fund in the state treasury. The fund shall be administered
by the state treasurer pursuant to this section. The legislature
shall appropriate to the compensation supplement fund from the
general fund the amounts necessary to meet the obligations of the
compensation supplement fund under section 352, and the
administrative costs incurred by the bureau under this section.
(2)
The director shall promulgate rules pursuant to Act No.
306
of the Public Acts of 1969, as amended, being sections 24.201
to
24.315 of the Michigan Compiled Laws under the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, that
prescribe the conditions under which the money in the compensation
supplement fund shall be expended pursuant to section 352 and this
section.
(3) The department of treasury shall cause to be paid from the
compensation supplement fund those amounts and at those times as
are prescribed by the director pursuant to subsection (2).
(4) The director may employ the personnel the director
considers necessary for the proper administration of the
compensation supplement fund.
(5) The director shall annually recommend to the governor and
the chairpersons of the senate and house appropriations committees
the amount of money the director considers necessary to implement
and enforce this section and section 352 during the ensuing fiscal
year. The compensation supplement fund may carry forward into a
subsequent fiscal year any unexpended funds, and reduce the
necessary appropriation by the amount of the unobligated balance in
the fund.
(6) Not later than April 1 of each year the director shall
submit a report to the governor and the legislature summarizing the
transactions of the compensation supplement fund during the
preceding calendar year. The report shall identify each insurer and
self-insurer that receives a reimbursement payment from the
compensation supplement fund and the amount of reimbursement. When
all liabilities of the compensation supplement fund for
reimbursements required pursuant to section 352 are paid, the
director shall recommend to the governor and the legislature that
the compensation supplement fund be abolished. The director shall
certify to the department of treasury and the commissioner of
insurance the identity of each insurer and self-insurer that claims
a credit as provided for under section 352(8) and the amount of
each supplemental payment under section 352 paid by that insurer or
self-insurer to which the credit applies.
(7) Pursuant to section 352, insurers and self-insurers not
subject
to either section 440a of the insurance code of 1956, Act
No.
218 of the Public Acts of 1956, being section 500.440a of the
Michigan
Compiled Laws, or 1956 PA
218, MCL 500.440a, section 38b
of
the single business tax act, Act No. 228 of the Public Acts of
1975,
being section 208.38b of the Michigan Compiled Laws 1975 PA
228, MCL 208.38b, or section 423 of the Michigan business tax act,
2007 PA 36, MCL 208.1423, the second injury fund, and the self-
insurers' security fund are entitled to reimbursement from the
compensation supplement fund. An application for reimbursement
shall be on the forms and contain information as required by the
director. Application for a claim for reimbursement from the
compensation supplement fund shall be filed with the director
within 3 months after the date on which the right to reimbursement
first accrues. After the insurer, self-insurer, the second injury
fund, or the self-insurers' security fund has established a right
to reimbursement, payment from the compensation supplement fund
shall be made without interest on a proper showing every quarter. A
reimbursement
shall not be allowed for a period which that is more
than 1 year before the date of the filing of the application for
reimbursement pursuant to this section. A reimbursement shall not
be allowed for payments made under section 352 for which an insurer
or self-insurer takes a credit as provided for in section 352(8).