Indicates Matter Stricken
Indicates New Matter

The Senate assembled at 11:00 A.M., the hour to which it stood adjourned and was called to order by the ACTING PRESIDENT, Senator SHEALY.

To His Excellency, Governor Carroll A. Campbell, and the Members of the South Carolina General Assembly:

The Occupational Safety and Health Act of l970 established the National Commission on State Workers' Compensation Laws. President Nixon appointed to the commission eighteen persons representing the various interest groups involved with workers' compensation reform. The commission submitted a report to Congress and the President on July 31, l972. The commission made nineteen basic, essential recommendations and urged that every state incorporate these proposals into their existing laws as soon as it was feasible. The report was concluded with a warning to the states that Congress should guarantee compliance if the states fail to act.

The South Carolina General Assembly responded and created the Governor's Advisory Committee for the Improvement of Workers' Compensation Laws by Act l055 of l974. The Advisory Committee was to consider improvements in the workers' compensation laws, monitor the effectiveness of existing laws and make recommendations for change to the General Assembly. Among the Governor's Committee's five members are representatives of industry, labor, the general public, claimant's attorneys and defense attorneys. The need for a permanent and experienced committee prompted the creation of the Workers' Compensation Study and Review Committee in l975 by Act l85. The Study Committee was to consult and coordinate the efforts of the Governor's Advisory Committee. The Study Committee was empowered to monitor the effectiveness of state law and its administration, study the recommended guidelines of the federal government for workers' compensation, and make recommendations to the South Carolina General Assembly to correspond the state law to the federal guidelines and make other necessary adjustments to the workers' compensation law.

(R471, H3223 )

Introduced by Reps. Hearn, J.W. Johnson and Lockemy: AN ACT TO AMEND SECTION 42-17-30, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO APPOINTMENT BY THE WORKERS' COMPENSATION COMMISSION OF A DOCTOR TO EXAMINE AN INJURED EMPLOYEE AND TO COMPENSATION, SO AS TO CHANGE THE PROVISIONS REGARDING THE FEE AND THE EXPENSES TO BE PAID TO THE PHYSICIAN OR SURGEON MAKING THE EXAMINATION.

Be it enacted by the General Assembly of the State of South Carolina:

Doctor's fee and expenses; amount and payment charged

SECTION 1. Section 42-17-30 of the 1976 Code is amended to read:

"Section 42-17-30. The commission or any member thereof may, upon the application of either party or upon its own motion, appoint a disinterested and duly qualified physician or surgeon to make any necessary medical examination of any employee and to testify in respect thereto. The physician or surgeon must be allowed traveling expenses and a reasonable fee in accordance with a fee schedule set by the commission. The commission may allow additional reasonable amounts in extraordinary cases. The commission or any member thereof has the discretion to order either party to pay the fees and expenses of the physician or surgeon, or the commission or any member thereof may order the parties to share responsibility for payment of the fees and expenses."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

(R520, H3702)

Introduced by Rep. Felder: AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 42-1-375 SO AS TO PROVIDE THAT A LICENSED REAL ESTATE SALES PERSON WHO SIGNS AN INDEPENDENT CONTRACTOR AGREEMENT WITH HIS BROKER IS EXEMPT FROM WORKERS' COMPENSATION LAWS.

Be it enacted by the General Assembly of the State of South Carolina:

Certain real estate salesmen - exempt from Workers' Compensation Laws

SECTION 1. The 1976 Code is amended by adding:

"Section 42-1-375. This title does not apply to licensed real estate sales persons engaged in the sale, leasing, or rental of real estate for a licensed real estate broker on a straight commission basis over whom the broker has no control and who has signed an independent contractor agreement with the broker."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

(R521, H4205)

Introduced by Rep. Wilkins: AN ACT TO AMEND SECTION 42-17-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO CONCLUSIVENESS OF AN AWARD UNDER THE WORKERS' COMPENSATION LAW, APPEAL, AND PAYMENT OF COMPENSATION DURING APPEAL, SO AS TO REQUIRE THAT A NOTICE OF APPEAL MUST STATE THE GROUNDS OF THE APPEAL OR THE ALLEGED ERRORS OF LAW.

Be it enacted by the General Assembly of the State of South Carolina:

Contents of Notice of Appeal

SECTION 1. Section 42-17-60 of the 1976 Code, as last amended by Act 677 of 1988, is further amended to read:

"Section 42-17-60. The award of the commission, as provided in Section 42-17-40, if not reviewed in due time, or an award of the commission upon such review, as provided in Section 42-17-50, is conclusive and binding as to all questions of fact. However, either party to the dispute, within thirty days from the date of the award or within thirty days after receipt of notice to be sent by registered mail of the award, but not thereafter, may appeal from the decision of the commission to the court of common pleas of the county in which the alleged accident happened, or in which the employer resides or has his principal office, for errors of law under the same terms and conditions as govern appeals in ordinary civil actions. Notice of appeal must state the grounds of the appeal or the alleged errors of law. In case of an appeal from the decision of the commission on questions of law, the appeal does not operate as a supersedeas and thereafter the employer is required to make payment of the award involved in the appeal or certification until the questions at issue have been fully determined in accordance with the provisions of this title."

Time Effective

SECTION 2. This act takes effect upon approval by the Governor.

(R569, H4209)

Introduced by Rep. J.W. Johnson: AN ACT TO AMEND SECTION 42-15-95, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WORKERS' COMPENSATION AND THE AVAILABILITY OF INFORMATION COMPILED BY A TREATMENT FACILITY OR PHYSICIAN, SO AS TO INCREASE THE MINIMUM CHARGE WHICH MAY BE IMPOSED FOR PROVIDING THIS INFORMATION.

Be it enacted by the General Assembly of the State of South Carolina:

Minimum charge for information provided, increased

SECTION 1. Section 42-15-95 of the 1976 Code, as last amended by Act 186 of 1989, is further amended to read:

"Section 42-15-95. All existing information compiled by a treatment facility or a physician pertaining directly to a workers' compensation claim must be provided to the insurance carrier, the employer, the employee, their attorneys, or the South Carolina Workers' Compensation Commission, within fourteen days after receipt of written request. The cost for receiving this information is fifty cents a page, with a minimum charge of ten dollars. Actual postage costs, if any, also must be paid for receiving the information. If a treatment facility or physician fails to send the requested information within forty-five days after receipt of the request, the person or entity making the request may apply to the commission for an appropriate penalty payable to the commission, not to exceed two hundred dollars."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

(R629, H4863)

Introduced by Rep. J. Rogers: AN ACT TO AMEND SECTION 42-9-290, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE AMOUNT OF WORKERS' COMPENSATION FOR THE DEATH OF AN EMPLOYEE DUE TO AN ACCIDENT, SO AS TO PROVIDE THAT WHEN THE DECEASED EMPLOYEE'S CHILDREN ARE NO LONGER DEPENDENT THE REMAINDER OF THAT PORTION OF THE AWARD MUST BE PAID TO A SURVIVING SPOUSE OR OTHER FULL DEPENDENT, OR IF THERE IS NONE, BE DISTRIBUTED IN THE SAME MANNER AS PROVIDED IN THIS SECTION FOR CASES WHERE THE EMPLOYEE IS SURVIVED BY NO FULL DEPENDENTS RATHER THAN DIVIDING THE BENEFITS EQUALLY AMONG ALL THE CHILDREN.

Be it enacted by the General Assembly of the State of South Carolina:

Death benefits

SECTION 1. The fourth paragraph of Section 42-9-290 of the 1976 Code, as last amended by Act 58 of 1989, is further amended to read:

"If at the date of death of the employee, the employee has a child nineteen years of age or older enrolled as a full-time student in an accredited educational institution, the child is entitled to death benefits in the same manner as though he were under nineteen and shall receive benefits, subject to the five-hundred-week limitation, until the age of twenty-three. However, if a student's enrollment ends, except for normal breaks and vacations in accordance with schedules of the school, the child no longer is considered a dependent. When all the deceased employee's children are no longer dependent, the remainder of that portion of the award must be paid to a surviving spouse or other full dependent, or if there be none, the remainder of that portion of the award must be paid in the same manner as provided in this section for cases where the employee is survived by no full dependents."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.

(R727, H3918)

Introduced by Reps. Hearn, J.W. Johnson and Lockemy: AN ACT TO AMEND SECTION 42-7-200, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO WORKERS' COMPENSATION INSOLVENCY FUND, SO AS TO CHANGE THE NAME OF THE FUND TO THE UNINSURED EMPLOYERS' FUND AND TO FURTHER PROVIDE FOR THE MANNER IN WHICH THE FUND MUST BE ADMINISTERED AND FOR THE PAYMENT OF CLAIMS FROM THE FUND; AND TO AMEND SECTION 42-9-400, AS AMENDED, RELATING TO THE MANNER IN WHICH THE EMPLOYER OR INSURANCE CARRIER MUST BE REIMBURSED FROM THE SECOND INJURY FUND WHEN DISABILITY RESULTS FROM PREEXISTING IMPAIRMENT AND SUBSEQUENT INJURY, SO AS TO PROVIDE THAT AS A PREREQUISITE TO REIMBURSEMENT FROM THE FUND, THE INSURER IS REQUIRED TO CERTIFY THAT THE MEDICAL AND INDEMNITY RESERVES HAVE BEEN REDUCED TO THE THRESHOLD LIMITS OF REIMBURSEMENT.

Be it enacted by the General Assembly of the State of South Carolina:

Prerequisites to reimbursement

SECTION 1. Section 42-9-400 of the 1976 Code is amended by adding:

"(l) As a prerequisite to reimbursement from the fund, the insurer shall be required to certify that the medical and indemnity reserves have been reduced to the threshold limits of reimbursement."

Uninsured Employers' Fund

SECTION 2. Section 42-7-200 of the 1976 Code, as last amended by Act 54 of 1989, is further amended to read:

"Section 42-7-200. (A) There is established within the office of the Second Injury Fund the South Carolina Workers' Compensation Uninsured Employers' Fund to insure payment of workers' compensation benefits to injured employees whose employers have failed to acquire necessary coverage for employees. The fund must be administered by the director of the Second Injury Fund who shall establish procedures to implement this section.

When an employee makes a claim for benefits pursuant to Title 42 and the State Workers' Compensation Commission determines that the employer is subject to Title 42 and is operating without insurance or as an unqualified self-insurer, the commission shall notify the fund of the claim. The fund shall pay or defend the claim as it considers necessary in accordance with the provisions of Title 42.

When the fund is notified of a claim, the fund may place a lien on the assets of the employer by way of lis pendens or otherwise so as to protect the fund from payments of costs and benefits. If the fund is required to incur costs or expenses or to pay benefits, the fund has a lien against the assets of the employer to the full extent of all costs, expenses, and benefits paid and may file notice of the lien with the clerk of court of any county in which the employer has assets and with the Secretary of State in the same manner as utilized under Title 36 (Uniform Commercial Code). Any of the employer's assets sold or conveyed during the litigation of the claim must be sold or conveyed subject to the lien.

The fund has all rights of attachment set forth in Section 15-19-10 and has the right to proceed otherwise in the collection of its lien in the same manner as the Tax Commission is allowed to enforce a collection of taxes generally pursuant to Section 12-49-10 et seq. When all benefits due the claimant, as well as all expenses and costs of litigation, have been paid, the fund shall file notice of the total of all monies paid with the clerk of court in any county in which the employer has assets and with the Secretary of State. This notice constitutes a judgment against the employer and has priority as a first lien in the same manner as liens of the Tax Commission, subject only to the lien of the Tax Commission pursuant to Section 12-49-10 et seq. If the employer files for bankruptcy or otherwise is placed into receivership, the fund becomes a secured creditor to the assets of the employer in the same manner as the Tax Commission has priority for unpaid taxes, subject only to the lien of the Tax Commission. The fund otherwise has all rights and remedies afforded the Tax Commission as set forth in Section 12-54-10 et seq.

(B) Nothing in this section precludes the South Carolina Workers' Compensation Uninsured Employers' Fund from entering into an agreement for the reimbursement of expenses, costs, or benefits paid by the fund. If an agreement is reached pursuant to this subsection, a lien must not be filed as provided in Section 42-7-200(A). If an agreement is entered into subsequent to the filing of a lien, the lien must be canceled by the fund. Provided, however, an agreement between the fund and an employer under this section may provide that in the event the employer breaches the terms or conditions of the agreement, the fund may file or reinstate a lien, as the case may be. For purposes of this section, the term 'costs' includes reasonable administrative costs which must be set by the director of the Second Injury Fund, subject to the approval of the Workers' Compensation Commission.

(C) To establish and maintain the South Carolina Workers' Compensation Uninsured Employers' Fund, there must be earmarked from the collections of the tax on insurance carriers and self-insured persons provided for in Sections 38-7-50 and 42-5-190 an amount sufficient to establish and annually maintain the fund at a level of not less than two hundred thousand dollars."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Considerable attention was given to the proposed rules and regulations of the South Carolina Workers' Compensation Commission during the 1990 legislative session. At the January 30, 1990, meeting of the committee the Executive Director of the Commission presented the status of the proposed rules and regulations and they were reviewed in depth. The commission published the proposed Workers' Compensation Regulations in the State Register on February 23, 1990. Following a period of thirty days for public comment, the commission held a public hearing on the regulations on April 2, 1990. Following ratification by both the Senate and the House, Governor Carroll A. Campbell, Jr., signed the regulations into law on June 4, 1990.

It is imperative that we continue the study of Workers' Compensation Laws in South Carolina. As working environments change so does the necessity for changes in our laws to protect both the employer and the employee.

The study of current legislation pending before the General Assembly insures that parties affected by this legislation will be protected thorough research and close observation.

Respectfully submitted:

For the Senate: For the Governor:

/s/John C. Land, III /s/Stanford E. Lacy

/s/Isadore E. Lourie /s/Henry H. Taylor

/s/Hugh K. Leatherman /s/C. Ray Harris

/s/Gale B. Crawford

/s/G.O. Smoak
For the House:

/s/James W. Johnson, Jr.

/s/Milton O. Alexander

/s/James H. Hodges

(On motion of Senator LAND, ordered printed in the Journal)

The following Bill was severally read the third time, passed and ordered sent to the House of Representatives:

S. 660 -- Senator Waddell: A BILL TO AMEND SECTIONS 9-1-1620, AS AMENDED, 9-9-70, AS AMENDED, AND 9-11-150, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE RETIREMENT BENEFIT OPTIONS FOR MEMBERS OF THE SOUTH CAROLINA RETIREMENT SYSTEM, THE RETIREMENT SYSTEM FOR MEMBERS OF THE GENERAL ASSEMBLY, AND THE SOUTH CAROLINA POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO PROVIDE THAT A MEMBER ELECTING A NEW RETIREMENT OPTION AFTER THE DEATH OF A SPOUSE MUST MAKE THE ELECTION BEFORE THE LATER OF JULY 1, 1992, OR THE FIRST ANNIVERSARY OF THE DEATH OF THE SPOUSE AND TO PROVIDE THAT A NEW OPTION MAY BE ELECTED AFTER A CHANGE IN MARITAL STATUS; TO AMEND SECTION 9-8-70, RELATING TO THE RETIREMENT BENEFIT OPTION FOR MEMBERS OF THE RETIREMENT SYSTEM FOR JUDGES AND SOLICITORS, SO AS TO ALLOW MULTIPLE BENEFICIARIES; AND TO AMEND SECTION 9-11-25, RELATING TO THE AUTHORITY FOR ALLOWING PROBATE JUDGES TO PARTICIPATE IN THE POLICE OFFICERS RETIREMENT SYSTEM, SO AS TO DELETE THE SEPARATE PAYMENT PROVISIONS.

(By prior motion of Senator GIESE, with unanimous consent)

At 11:17 A.M., on motion of Senator GIESE, the Senate adjourned to meet next Tuesday, March 26, 1991, at 12:00 Noon.

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