SENATE BILL NO. 566

A bill to amend 1969 PA 317, entitled

"Worker's disability compensation act of 1969,"

by amending sections 625 and 835 (MCL 418.625 and 418.835), section 625 as amended by 2012 PA 83 and section 835 as amended by 2011 PA 266.

the people of the state of michigan enact:

Sec. 625. (1) Each insurer mentioned in section 611 issuing that issues an insurance policy covering worker's that covers workers' compensation in this state shall file with the director, within not later than 30 days after the effective date of the policy, a notice of the issuance of the policy and its the effective date of the policy.

(2) An insurer or the Compensation Advisory Organization of Michigan on behalf of the insurer may submit to the director all of the following notices in writing or by using agency-approved electronic filing and transaction standards:

(a) A notice of issuance of insurance. , a

(b) A notice of termination of insurance. , or a

(c) A notice of employer change to an employer's address, location, or name. change may be submitted in writing or by using agency-approved electronic filing and transaction standards and may be submitted by the insurer directly or by the compensation advisory organization of Michigan on behalf of the insurer. Payment shall not be required by the agency or any third party for the use of agency-approved electronic record layout and transaction standards under this act.

(3) The agency or a third party shall not require payment for the use of agency-approved electronic record layout and transaction standards under this act.

(4) Time requirements for notices under this act apply whether the notices are filed by the insurer or the compensation advisory organization Compensation Advisory Organization of Michigan. If the policy covers persons who a person that would otherwise be exempted from this act by under section 115, the notice shall must contain a specific statement to that effect. A notice is not required of any insurer if the policy issued is a renewal of the preceding policy. The An insurer , if it that refuses to accept any coverage under this act , shall do so must put the refusal in writing.

(5) The director shall promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to establish both of the following:

(a) A filing fee for a notice described in subsections (1) and (2).

(b) A system for the collection of a filing fee.

Sec. 835. (1) After 6 months' time has elapsed from Not less than 6 months after the date of a personal injury, any liability resulting from the personal injury may be redeemed by the payment of a lump sum by agreement of the parties, subject to the approval of a worker's workers' compensation magistrate. If special circumstances are found which in the judgment of the worker's workers' compensation magistrate require the payment of a lump sum, the worker's workers' compensation magistrate may direct at any time in any case that the deferred payments due under this act be commuted on the present worth at 10% per annum to 1 or more lump sum payments and that the lump sum payments shall must be made by the employer or carrier. When a proposed redemption agreement is filed, it may be treated as a lump sum application, within the discretion of a worker's workers' compensation magistrate. The filing of a proposed redemption agreement or lump sum application shall must not be considered an admission of liability and if the worker's workers' compensation magistrate treats a proposed redemption agreement as a lump sum application under this section, the employer shall be is entitled to a hearing on the question of liability.

(2) The carrier shall notify the employer in writing, which may be electronically transmitted, of the proposed redemption agreement not less than 10 business days before a hearing on the proposed redemption agreement is held. The notice shall must include all of the following information:

(a) The amount and conditions of the proposed redemption agreement.

(b) The procedure available for requesting a private informal managerial level conference.

(c) The name and business phone number of a representative of the carrier familiar with the case.

(d) The time and place of the hearing on the proposed redemption agreement and the right of the employer to object to it.

(3) The worker's workers' compensation magistrate may waive the requirements of subsection (2) if the carrier provides evidence that a good-faith effort has been made to provide the required notice or if the employer has consented in writing to the proposed redemption.

(4) Except as otherwise provided in this subsection, for all proposed redemption agreements filed after December 31, 1983, each Each party to the a proposed redemption agreement shall be is liable for a fee, of $100.00 as determined by the agency, to be used to defray costs incurred by the agency, the worker's workers' compensation board of magistrates, and the worker's workers' disability compensation appellate appeals commission administering this act. , except that in the case of multiple defendants the fee for the party defendant shall be $100.00 to be paid by the carrier covering the most recent date of injury. The agency shall develop a promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to establish both of the following:

(a) A fee amount for the fee provided under this subsection.

(b) A system to provide for the collection of the fee provided for by under this subsection.

(5) The fees collected pursuant to under subsection (4) shall must be placed in the worker's compensation administrative revolving fund under section 835a. Money in the worker's compensation administrative revolving fund shall only must be used only to pay for costs in regard to the following specific purposes of the agency, the worker's workers' compensation board of magistrates, and the Michigan workers' disability compensation appellate appeals commission as applicable:

(a) Education and training.

(b) Case management.

(c) Hearings and claims for review.

(6) Subsections (2) to (5) only apply to proposed redemption agreements filed after December 31, 1983.