NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      SENATE BILL 10-012
      
      
      BY SENATOR(S) Tochtrop, Carroll M., Hodge, Boyd;
      also REPRESENTATIVE(S) Pace, Miklosi, Ryden, Vigil.
      
      
      Concerning increased penalties for violations of the workers'
           compensation laws.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  8-43-304 (1), Colorado Revised Statutes, is amended
      to read:
      
           8-43-304.  Violations - penalty - offset for benefits obtained
      through fraud - rules.  (1)  Any employer or insurer, or any officer or
      agent of either, or any employee, or any other person who violates any
      provision of articles 40 to 47 of this title, or does any act prohibited thereby,
      or fails or refuses to perform any duty lawfully enjoined within the time
      prescribed by the director or panel, for which no penalty has been
      specifically provided, or fails, neglects, or refuses to obey any lawful order
      made by the director or panel or any judgment or decree made by any court
      as provided by said articles shall be subject to such order being reduced to
      judgment by a court of competent jurisdiction and shall also be punished by
      a fine of not more than five hundred one thousand dollars per day for
      each such offense, seventy-five percent payable to be apportioned, in
      whole or part, at the discretion of the director or administrative
      law judge, between the aggrieved party and twenty-five percent to the
      subsequent injury fund created in section 8-46-101 the workers'
      compensation cash fund created in section 8-44-112 (7) (a); except
      that the amount apportioned to the aggrieved party shall be a
      minimum of fifty percent of any penalty assessed.
      
           SECTION 2.  8-43-401 (2) (a), Colorado Revised Statutes, is
      amended to read:
      
           8-43-401.  Attorney general, district attorney, or attorney of
      division to act for director or office - penalties for failure of insurer to
      pay benefits.  (2) (a)  After all appeals have been exhausted or in cases
      where there have been no appeals, all insurers and self-insured employers
      shall pay benefits within thirty days of when after any benefits are due. 
      If any insurer or self-insured employer willfully knowingly delays
      payment of medical benefits for more than thirty days or willfully
      knowingly stops payments, such insurer or self-insured employer shall pay
      a penalty to the division of eight percent of the amount of wrongfully
      withheld benefits; except that no penalty is due if the insurer or
      self-insured employer proves that the delay was the result of
      excusable neglect.  If any insurer or self-insured employer willfully
      withholds permanent partial disability benefits within thirty days of when
      due, the insurer or self-insured employer shall pay a penalty to the division
      of ten percent of the amount of such benefits due.  The penalties shall be
      apportioned, in whole or part, at the discretion of the director or
      administrative law judge, among the aggrieved party, the medical
      services provider, and the workers' compensation cash fund
      created in section 8-44-112 (7) (a).
      
           SECTION 3.  Act subject to petition - effective date -
      applicability.  (1)  This act shall take effect at 12:01 a.m. on the day
      following the expiration of the ninety-day period after final adjournment of
      the general assembly (August 11, 2010, if adjournment sine die is on May
      12, 2010); except that, if a referendum petition is filed pursuant to section
      1 (3) of article V of the state constitution against this act or an item, section,
      or part of this act within such period, then the act, item, section, or part shall
      not take effect unless approved by the people at the general election to be
      held in November, 2010, and shall take effect on the date of the official
      declaration of the vote thereon by the governor.
      
           (2)  The provisions of this act shall apply to conduct occurring on or
      after the applicable effective date of this act.
      
      
      
      
      ____________________________  ____________________________
      Brandon C. Shaffer                Terrance D. Carroll
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Karen Goldman                          Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    Bill Ritter, Jr.
                                    GOVERNOR OF THE STATE OF COLORADO