NOTE: The governor signed this measure on 3/22/2012.
      
      
      HOUSE BILL 12-1033
      
      
      BY REPRESENTATIVE(S) Swalm, Beezley, Brown, DelGrosso, Fields,
      Hamner, Holbert, Labuda, Liston, Pabon, Todd, Vigil, Wilson;
      also SENATOR(S) Newell, Aguilar, Cadman, Jahn, White.
      
      
      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".
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  In Colorado Revised Statutes, 8-43-304, amend (1.5)
      (a) as follows:
      
           8-43-304.  Violations - penalty - offset for benefits obtained
      through fraud - rules. (1.5) (a) (I)  An insurer who knowingly or
      repeatedly violates any provision of articles 40 to 47 of this title shall be
      subject to a fine as determined by the director. If necessary, the director may
      conduct a hearing or may refer the matter to the office of administrative
      courts for the entry of findings of fact. The director shall promulgate rules
      that specify, with respect to an insurer's willful or repeated violations that
      are subject to this subsection (1.5):
      
           (I) (A)  The circumstances pursuant to which the director may issue
      an order imposing a fine; and
      
           (II) (B)  Criteria for determining the amount of the fine.
      
           (II)  If the division determines, as part of a compliance audit
      of an insurer or self-insured pool, that an injury or occupational
      disease was not reported to the division within the time specified
      in sections 8-43-101 and 8-43-103 because the insurer or
      self-insured pool did not have notice or knowledge of the injury,
      occupational disease, or fatality within a period of time that
      would allow the information to be reported to the division within
      the time specified in sections 8-43-101 and 8-43-103, the director
      shall not impose a fine for late reporting under this subsection
      (1.5). The director may impose a fine under this subsection (1.5) for
      late reporting under sections 8-43-101 and 8-43-103 as part of
      findings from a compliance audit if the director finds that the late
      reporting constituted a knowing or repeated pattern of
      noncompliance with the reporting requirements of sections
      8-43-101 and 8-43-103 and was not caused by the insurer or
      self-insured pool's lack of notice or knowledge of the injury,
      occupational disease, or fatality within a period of time that
      would allow the information to be reported to the division within
      the time specified in sections 8-43-101 and 8-43-103.
      
           SECTION 2.  Act subject to petition - effective date -
      applicability. (1)  This act takes 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 8, 2012, if adjournment sine die is on May 9,
      2012); 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 will
      not take effect unless approved by the people at the general election to be
      held in November 2012 and, in such case, will take effect on the date of the
      official declaration of the vote thereon by the governor.
      
           (2)  The provisions of this act apply to fines resulting from
      compliance audits of workers' compensation insurers and self-insured pools
      on or after the applicable effective date of this act.
      
      
      
      
      ________________________________________________________
      Frank McNulty                      Brandon C. Shaffer
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO