H 3837 Session 111 (1995-1996)
H 3837 General Bill, By House Labor, Commerce and Industry
Similar(S 729, H 3561, H 3564)
A Bill to amend Section 42-9-260, as amended, Code of Laws of South Carolina,
1976, relating to notice to the Workers' Compensation Commission when payments
of Workers' Compensation have begun and suspension or termination of payments,
so as to delete certain language and provisions, provide that when an employee
has been out of work due to a reported work-related injury or occupational
disease for eight days, an employer may start temporary total disability
payment immediately and may continue such payments for up to one hundred
twenty days without waiver of any grounds for denial of a claim as may appear
following a good faith investigation, provide for the termination or
suspension of temporary disability compensation, and provide for related
matters.
03/22/95 House Introduced, read first time, placed on calendar
without reference HJ-11
03/28/95 House Objection by Rep. Cato, Richardson, A. Young,
Clyburn, Davenport, L. Whipper, Anderson, S.
Whipper, Seithel, Huff, Rice, Mason, R. Smith,
Howard, Govan, Cave, Delleney & Neal HJ-41
04/05/95 House Objection withdrawn by Rep. Clyburn HJ-55
04/05/95 House Amended HJ-55
04/05/95 House Read second time HJ-66
04/05/95 House Roll call Yeas-83 Nays-16 HJ-67
04/06/95 House Read third time and sent to Senate HJ-59
04/11/95 Senate Introduced and read first time SJ-24
04/11/95 Senate Referred to Committee on Judiciary SJ-24
Indicates Matter Stricken
Indicates New Matter
AMENDED
April 5, 1995
H. 3837
Introduced by Labor, Commerce and Industry
Committee
S. Printed 4/5/95--H.
Read the first time March 22, 1995.
STATEMENT OF ESTIMATED FISCAL
IMPACT
1. Estimated Cost to State-First Year$-0-
2. Estimated Cost to State-Annually Thereafter$-0-
House Bill 3837, if enacted, would amend Section 41-9-260, as
amended, Code of Laws of South Carolina, 1976, relating to notice
to the Workers' Compensation Commission when payments of
workers' compensation have begun and/or terminated.
Passage of this legislation would allow an employer to start
temporary total disability payments immediately to an employee
who has been out of work due to a work-related injury or
occupational disease for eight days and may continue without
waiver of any grounds for denial of a claim as may appear
following a good faith investigation. The bill also provides that an
employee may request a hearing to have temporary compensation
reinstituted after termination. The commission must give this
hearing request priority consideration over other hearing requests.
The Workers' Compensation Commission indicates that passage
of House Bill 3837 would not have a fiscal impact on the agency.
Prepared By: Approved By:
Cheryl H. Morris George N. Dorn, Jr.
State Budget Analyst Director, Office of State
Budget
A BILL
TO AMEND SECTION 42-9-260, AS AMENDED, CODE OF
LAWS OF SOUTH CAROLINA, 1976, RELATING TO NOTICE
TO THE WORKERS' COMPENSATION COMMISSION WHEN
PAYMENTS OF WORKERS' COMPENSATION HAVE BEGUN
AND SUSPENSION OR TERMINATION OF PAYMENTS, SO
AS TO DELETE CERTAIN LANGUAGE AND PROVISIONS,
PROVIDE THAT WHEN AN EMPLOYEE HAS BEEN OUT OF
WORK DUE TO A REPORTED WORK-RELATED INJURY OR
OCCUPATIONAL DISEASE FOR EIGHT DAYS, AN
EMPLOYER MAY START TEMPORARY TOTAL DISABILITY
PAYMENTS IMMEDIATELY AND MAY CONTINUE SUCH
PAYMENTS FOR UP TO ONE HUNDRED TWENTY DAYS
WITHOUT WAIVER OF ANY GROUNDS FOR DENIAL OF A
CLAIM AS MAY APPEAR FOLLOWING A GOOD FAITH
INVESTIGATION, PROVIDE FOR THE TERMINATION OR
SUSPENSION OF TEMPORARY DISABILITY
COMPENSATION, AND PROVIDE FOR RELATED MATTERS.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. Section 42-9-260 of the 1976 Code, as last
amended by Act 410 of 1988, is further amended to read:
"Section 42-9-260. (A) When an employee has been
out of work due to a reported injury by accident arising out of an in
the course of employment or occupational disease for eight days, an
employer may start temporary total disability payments immediately
and may continue such payments for up to one hundred twenty days
without waiver of any grounds for denial of a claim as may appear
following a good faith investigation. Upon making the first
payment, the employer shall immediately notify the
commission, in accordance with regulations promulgated by the
commission regarding the timely filing of this notice and with
a form prescribed by the commission, that payment of
compensation has begun.
After one hundred-twenty days from an accident arising out
of and in the course of employment or occupational disease,
the commission shall provide by rule the method and procedure
by which benefits may be suspended or terminated for any cause,
but such rule must provide for an evidentiary hearing and
commission approval prior to termination or suspension unless such
prior hearing is expressly waived in writing by the recipient.
Further, the commission may not entertain any application to
terminate or suspend benefits unless and until the employer or
carrier is current with all payments due.
(B) Once payment of temporary disability compensation
has been commenced, it may be terminated or suspended
immediately if the employee:
(1) has returned to work;
(2) agrees that he is able to return to work and executes the
proper commission form indicating that he is able to return to work.
Alternatively to items (1) and (2) of this subsection, once payment
of temporary disability compensation has been commenced, it may
be terminated or suspended at any time within one hundred twenty
days of the date that payments are commenced if a good faith
investigation reveals grounds for denial of the claim at any time
within the one hundred twenty-day period. An employee may
attempt a trial return to work for a period not to exceed three
months. During a trial return to work period, temporary total
disability compensation shall be suspended; however, the employee
shall be paid any temporary partial disability compensation which
may be owed. If the trial return to work is unsuccessful, the
employee's right to continuing temporary total compensation shall
be unimpaired; provided, however, that the trial return to work
authorized hereunder may be attempted only once;
(3) has been released by the treating physician to work
without restriction compensation may be terminated immediately
within the one hundred twenty-day period;
(4) has been released by the treating physician to limited duty
work and the employer provides limited duty work consistent with
the terms upon which the employee has been released,
compensation may be terminated or suspended at any time within
the one hundred twenty-day period if the employee refuses to
accept the limited duty work provided by the employer or to return
to work;
(5) refuses medical treatment under Section 42-15-60 or an
examination or evaluation under Section 42-15-80, the employee is
not entitled to compensation benefits during the period of the
refusal. Upon the submission of documentation of the refusal by the
employee of this medical treatment, examination, or evaluation to
the commission and notice to the employee, compensation may be
terminated within the one hundred twenty-day period.
(C) An employee may request a hearing to have temporary
compensation reinstituted after termination. The commission must
give this hearing request priority consideration over other hearing
requests.
(D) If an employee has been declared as having reached
maximum medical improvement within the one hundred twenty-day
period, the employer or carrier has the right to a priority hearing to
address the termination of temporary disability and the employer or
carrier's entitlement to credit or reimbursement for all temporary
disability paid for the period after the date of maximum medical
improvement.
(E) Failure to comply with such rule as to termination
or suspension of benefits must this section shall result
in a twenty-five percent penalty imposed upon the carrier or
employer computed on the amount of benefits withheld without
prior commission approval in violation of this section,
and the amount of the penalty must be paid to the employee in
addition to the amount of benefits withheld. However, the
penalty does not apply if the employer or carrier has terminated or
suspended benefits when the employee has returned to any
employment at the same or similar wage."
SECTION 2. This act takes effect upon approval by the
Governor.
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