HB 579 - Workers' comp; Self-insurers Guar- anty Trust Fund; amend provisions
Georgia House of Representatives - 1995/1996 Sessions
HB 579 - Workers' comp; Self-insurers Guar- anty Trust Fund; amend provisions
Page Numbers - 1/ 2/ 3/ 4/ 5
1. Lane 146th 2. Dobbs 92nd 3. Barnes 33rd
House Comm: IndR / Senate Comm: I&L /
House Vote: Yeas 161 Nays 0 Senate Vote: Yeas 43 Nays 0
----------------------------------------
House Action Senate
----------------------------------------
2/3/95 Read 1st Time 3/7/95
2/6/95 Read 2nd Time 3/10/95
2/17/95 Favorably Reported 3/9/95
Am Committee Amend/Sub
3/6/95 Read 3rd Time 3/15/95
3/6/95 Passed/Adopted 3/15/95
CA Comm/Floor Amend/Sub
4/3/95 Sent to Governor
4/18/95 Signed by Governor
335 Act/Veto Number
7/1/95 Effective Date
----------------------------------------
Code Sections amended: 34-9-381, 34-9-383, 34-9-386, 34-9-388
HB 579 HB 579/CA
H. B. No. 579 (AM)
By: Representatives Lane of the 146th, Dobbs of the 92nd
and Barnes of the 33rd
A BILL TO BE ENTITLED
AN ACT
1- 1 To amend Article 10 of Chapter 9 of Title 34 of The Official
1- 2 Code of Georgia Annotated, relating to the Self-insurers
1- 3 Guaranty Trust Fund, so as to define the term self-insurer
1- 4 to include a county or municipal hospital authority; to
1- 5 delete references to the term of office of the chairman of
1- 6 the board of trustees; to revise provisions relative to the
1- 7 assessment of participants; to increase the funding level at
1- 8 which assessments shall not be required; to provide for
1- 9 special assessments; to authorize the board of trustees to
1-10 proceed against security pledged by a participant if payment
1-11 of an assessment is not made; to provide that a participant
1-12 may have its authorization to self-insure revoked for
1-13 failure to pay penalties or fines; to provide for matters
1-14 relative to the foregoing; to repeal conflicting laws; and
1-15 for other purposes.
1-16 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
1-17 Article 10 of Chapter 9 of Title 34 of The Official Code of
1-18 Georgia Annotated, relating to the Self-insurers Guaranty
1-19 Trust Fund, is amended by striking paragraph (7) of Code
1-20 Section 34-9-381, relating to definitions and inserting in
1-21 lieu thereof a new paragraph (7) to read as follows:
1-22 "(7) 'Self-insurer' means a private employer, including
1-23 any hospital authority created pursuant to the
1-24 provisions of Article 4 of Chapter 7 of Title 31, the
1-25 'Hospital Authorities Law,' that has been authorized to
1-26 self-insure its payment of workers' compensation
1-27 benefits pursuant to this chapter, except any
1-28 governmental self-insurer or other employer who elects
1-29 to group self-insure pursuant to Code Section 34-9-152,
1-30 or captive insurers as provided for in Chapter 41 of
1-31 Title 33, or employers who, pursuant to any reciprocal
1-32 agreements or contracts of indemnity executed prior to
1-33 March 8, 1960, created funds for the purpose of
H. B. No. 579
-1- (Index)
HB 579/CA
2- 1 satisfying the obligations of self-insured employers
2- 2 under this chapter."
SECTION 2.
2- 3 Said article is further amended by striking subsection (a)
2- 4 of Code Section 34-9-383, relating to the membership of the
2- 5 board of trustees of the fund, and inserting in lieu thereof
2- 6 a new subsection (a) to read as follows:
2- 7 "(a) Each member of the board of trustees shall be an
2- 8 employee of a participant. The board of trustees shall
2- 9 consist of a chairman chairperson and six trustees elected
2-10 by the participants. The board of trustees shall
2-11 initially be appointed by the Governor not later than
2-12 August 1, 1990. Three of the initial trustees shall be
2-13 appointed for terms of office which shall end on January
2-14 1, 1993, and the chairman chairperson and the three other
2-15 initial trustees shall be appointed for terms of office
2-16 which shall end on January 1, 1995. Thereafter, each
2-17 trustee and chairman shall be elected to a four-year term
2-18 and shall continue to serve unless otherwise ineligible
2-19 under subsection (b) of this Code section. No later than
2-20 90 days prior to the end of any member's term of office,
2-21 the chairman chairperson shall select a nominating
2-22 committee from among the participants to select candidates
2-23 for election by the participants for the following term.
2-24 In the event the chairman chairperson fails to complete
2-25 his or her term of office, a successor will be elected by
2-26 the board of trustees to fill the unexpired term of
2-27 office."
SECTION 3.
2-28 Said article in further amended by striking Code Section
2-29 34-9-386, relating to the assessment of fund participants
2-30 and the liability of the fund and participants for claims,
2-31 and inserting in lieu thereof a new Code Section 34-9-386 to
2-32 read as follows:
2-33 "34-9-386. (Index)
2-34 (a)(1) The board of trustees shall, commencing January
2-35 1, 1991, assess each participant in accordance with
2-36 paragraph (2) of this subsection. Upon reaching a
2-37 funded level of $3 million, $10 million, all annual
2-38 assessments against participants who have paid at least
2-39 three prior assessments shall cease except as
H. B. No. 579
-2- (Index)
HB 579/CA
3- 1 specifically provided in paragraph (4) of this
3- 2 subsection.
3- 3 (2) Assessment for each new participant in the first
3- 4 calendar year of participation shall be $4,000.00.
3- 5 Thereafter, assessments shall be in accordance with
3- 6 paragraphs (3) and (4) of this subsection.
3- 7 (3) After the first calendar year of participation, the
3- 8 assessment of each participant shall be made on the
3- 9 basis of a percentage of the total of indemnity benefits
3-10 paid by, or on behalf of, each participant during the
3-11 previous calendar year. Except as provided in paragraph
3-12 (2) of this subsection for the first calendar year of
3-13 participation and paragraph (4) of this subsection, in
3-14 no event shall a participant will not be assessed at any
3-15 one time an amount in excess of 1.5 percent of the
3-16 indemnity benefits paid by that participant during the
3-17 previous calendar year or $1,000.00, whichever is
3-18 greater. The total amount of assessments, not including
3-19 those set out in paragraph (4) of this subsection, in
3-20 any calendar year against any one participant shall not
3-21 exceed the amount of $4,000.00.
3-22 (4) If after the full funded level of $3 million $10
3-23 million has been attained, the fund is reduced to an
3-24 amount below $2 million $7 million as the result of the
3-25 payment of claims, the administration of claims, or the
3-26 costs of administration of the fund the board of
3-27 trustees shall assess levy a special assessment in
3-28 proportion to the assessment provided for in paragraph
3-29 (3) of this subsection of the participants in an amount
3-30 sufficient to increase the funded level to $3 million $7
3-31 million; provided, however, that such special assessment
3-32 in any calendar year against any one participant shall
3-33 not exceed the amount of $10,000.00.
3-34 (5) Funds obtained by such assessments shall be used
3-35 only for the purposes set forth in this article and
3-36 shall be deposited upon receipt by the board of trustees
3-37 into the fund. If payment of any assessment made under
3-38 this subsection article is not made within 30 days of
3-39 the sending of the notice to the participant, the board
3-40 of trustees shall is authorized to proceed in court for
3-41 judgment against the participant, including the amount
3-42 of the assessment, the costs of suit, interest, and
3-43 reasonable attorneys' fees or proceed directly against
3-44 the security pledged by the participant.
H. B. No. 579
-3- (Index)
HB 579/CA
4- 1 (b)(1) The fund shall be liable for claims arising out
4- 2 of injuries occurring after January 1, 1991; provided,
4- 3 however, no claim may be asserted against the fund until
4- 4 the funding level has reached $1.5 million.
4- 5 (2) All participants shall be required to maintain
4- 6 surety bonds or the board of trustees may, in its
4- 7 discretion, accept any irrevocable letter of credit or
4- 8 other acceptable forms of security in the amount of no
4- 9 less than $100,000.00 until the board, after
4-10 consultation with the board of trustees, has determined
4-11 that the financial capability of the trust fund and the
4-12 participant no longer warrants any form of security.
4-13 (c) A participant who ceases to be a self-insurer shall be
4-14 liable for any and all assessments made pursuant to this
4-15 Code section as long as indemnity compensation is paid for
4-16 claims which originated when the participant was a
4-17 self-insurer. Assessments of such a participant shall be
4-18 based on the indemnity benefits paid by the participant
4-19 during the previous calendar year.
4-20 (d) Upon refusal to pay assessments, penalties, or fines
4-21 to the fund when due, the fund may treat the self-insurer
4-22 as being in noncompliance with this chapter and the
4-23 self-insurer shall be subject to revocation of its board
4-24 authorization to self-insure."
SECTION 4.
4-25 Said article is further amended by striking subsection (b)
4-26 of Code Section 34-9-388, relating to reports of
4-27 participant's insolvency and participant's certified
4-28 financial information, and inserting in lieu thereof a new
4-29 subsection (b) to read as follows:
4-30 "(b) The board shall, at the inception of a participant's
4-31 self-insured status and at least annually thereafter, so
4-32 long as the participant remains self-insured, furnish the
4-33 board of trustees with a copy of each participant's
4-34 certified financial information, audit performed in
4-35 accordance with generally accepted auditing standards by
4-36 an independent certified public accounting firm, three to
4-37 five years of loss history, name of the person or company
4-38 to administer claims and any other pertinent information
4-39 submitted to the board to authenticate the participant's
4-40 self-insured status. The board of trustees may contract
4-41 for the services of a qualified certified public
4-42 accountant or firm to review, analyze, and make
H. B. No. 579
-4- (Index)
HB 579/CA
5- 1 recommendations on these documents. All financial
5- 2 information submitted by a participant shall be considered
5- 3 confidential and not public information."
SECTION 5.
5- 4 All laws and parts of laws in conflict with this Act are
5- 5 repealed.
H. B. No. 579
-5- (Index)
Office of the Clerk of the House
Robert E. Rivers, Jr., Clerk of the House
Last Updated on 01/02/97