Date: 01/19/2012

Final
BILL SUMMARY for HB12-1033

HOUSE COMMITTEE ON ECONOMIC AND BUSINESS DEVELOPMENT

Votes: View--> Action Taken:
Moved amendment L.001 (Attachment B). The motion p
Moved to refer House Bill 12-1033, as amended, to 		Pass Without Objection
PASS



02:08 PM -- House Bill 12-1033

Representative Swalm, prime sponsor, presented House Bill 12-1033 concerning conditions on the authority of the director of the Division of Workers' Compensation to impose administrative fines as a result of compliance audits finding instances of late reporting of injuries under the "Workers' Compensation Act of Colorado."

This bill prohibits the Director of the Workers' Compensation Division of the Department of Labor and Employment from imposing an administrative fine on an insurer or self-insured employer for late reporting of an injury, occupational disease, or fatality when the insurer or self-insured employer was not given sufficient notice of the incident to comply with the reporting deadline. The director may impose an administrative fine in cases where he finds that the late reporting constituted a knowing and repeated pattern of noncompliance by the insurer or self-insured employer and not a lack of notice of the incident.

02:12 PM

Representative Williams asked whether the bill will impact workers' compensation rates and premiums. Representative Soper asked how the bill defines a pattern of noncompliance. Representative Swalm stated that the bill does not define a pattern of noncompliance with a set number failed reports, rather, the bill simply states that a fine will be assessed if there is a repeated pattern. Representative Liston asked who would impose the fine. A discussion ensued regarding the amount of the fines.

02:17 PM -- Patrick Boyle, representing the Property Casualty Insurance Association of America, testified in support of the bill. He explained that an employer has 10 days to report an injury to the Division of Workers' Compensation. If the employer fails to report, the insurance company is assessed a fine. However, he stated, if an audit is conducted by the division, there is a second fine imposed for the same offense. Mr. Boyle believes that the second fine is gratuitous and unnecessary and that the fine should be discretionary and not mandatory. Mr. Boyle addressed an amendment that will be proposed by the sponsor.

02:21 PM

Mr. Boyle addressed the questions that were raised earlier by the committee. He explained that the rates and premiums will not be affected and that the division will decide who is fined. He stated the amounts of the fines vary. Representative Wilson asked what conditions trigger an audit and how many employers receive these fines on an annual basis. Representative Swerdfeger asked whether an employer and insurance company would be fined if there were an unreported fatality. A discussion ensued on who would be responsible for the fines.

02:31 PM -- Kelly Campbell, representing the Property and Casualty Insurers Association, also addressed the earlier questions from the committee regarding reporting requirements, fines, and late reporting.
BILL:HB12-1033
TIME: 02:38:18 PM
MOVED:Liston
MOTION:Moved amendment L.001 (Attachment B). The motion passed without objection. 120119AttachB.pdf
SECONDED:Swalm
VOTE
Balmer
Court
Holbert
Miklosi
Priola
Soper
Swerdfeger
Szabo
Tyler
Williams A.
Wilson
Swalm
Liston
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB12-1033
TIME: 02:40:05 PM
MOVED:Swalm
MOTION:Moved to refer House Bill 12-1033, as amended, to the Committee of the Whole. The motion passed on a vote of 13-0.
SECONDED:Tyler
VOTE
Balmer
Yes
Court
Yes
Holbert
Yes
Miklosi
Yes
Priola
Yes
Soper
Yes
Swerdfeger
Yes
Szabo
Yes
Tyler
Yes
Williams A.
Yes
Wilson
Yes
Swalm
Yes
Liston
Yes
YES: 13 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS