71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3002
House Bill 3288
Sponsored by Representative GARDNER
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Modifies nature of violation for which certain penalties may be
assessed in workers' compensation claims. Requires Director of
Department of Consumer and Business Services to penalize certain
insurers and self-insured employers for failure to comply with
requirements for timely payment of compensation.
A BILL FOR AN ACT
Relating to penalties associated with workers' compensation
claims; creating new provisions; and amending ORS 656.605 and
656.990.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 656.990 is amended to read:
656.990. (1) { + (a) The Director of the Department of Consumer
and Business Services shall assess a civil penalty against + }
any person who knowingly makes any false statement or
representation to the Workers' Compensation Board or its
employees, the Workers' Compensation Board chairperson, the
director { - of the Department of Consumer and Business
Services - } or employees of the director, the insurer or
self-insured employer for the purpose of obtaining { + or
preventing an injured worker from obtaining + } any benefit or
payment under this chapter, either for self or any other person,
or who knowingly misrepresents to the board, the board
chairperson, the director or the corporation or any of their
representatives the amount of a payroll, or who knowingly submits
a false payroll report to the board, the board chairperson, the
director or the corporation { - , is punishable, upon
conviction, by imprisonment for a term of not more than one year
or by a fine of not more than $1,000, or by both - } { + . A
civil penalty may not exceed $1,000 for each violation + }.
{ + (b) For purposes of this subsection, 'person' includes,
but is not limited to an attorney, employee, employer, insurer,
claims examiner or physician. + }
(2) Violation of ORS 656.052 is a Class D violation. Each day
during which an employer engages in any subject occupation in
violation of ORS 656.052 constitutes a separate offense.
(3) Violation of ORS 656.056 is a Class D violation.
(4) The individual refusing to keep the payroll in accordance
with ORS 656.726 or 656.758 when demanded by the director or
corporation, is punishable, upon conviction, by a fine of not
more than $100 or by imprisonment in the county jail for not more
than 90 days, or by both. Circuit courts and justice courts shall
have concurrent jurisdiction of this offense.
(5) Failure on the part of an employer to send the signed
payroll statement required by ORS 656.504 within 30 days after
receipt of notice by the director or corporation is a
misdemeanor.
(6) Violation of ORS 656.560 (4) is a Class D violation.
SECTION 2. { + Section 3 of this 2001 Act is added to and made
a part of ORS chapter 656. + }
SECTION 3. { + (1) Payment of benefits must be timely. An
insurer or self-insured employer shall be penalized when the
insurer or self-insured employer fails to make timely payment of
90 percent of payments due in any quarter as determined by audit
by the Department of Consumer and Business Services.
(2) The Director of the Department of Consumer and Business
Services shall assess a penalty of $200 for each violation of
subsection (1) of this section to a maximum of $1,000 per
audit. + }
SECTION 4. { + All penalties recovered under section 3 of this
2001 Act shall be paid into the State Treasury and credited to
the Workers' Benefit Fund. + }
SECTION 5. ORS 656.605 is amended to read:
656.605. (1) The Workers' Benefit Fund is created in the State
Treasury, separate and distinct from the General Fund. Moneys in
the fund shall be invested in the same manner as other state
moneys and investment earnings shall be credited to the fund. The
fund shall consist of the following:
(a) Moneys received pursuant to ORS 656.506.
(b) Moneys recovered under ORS 656.054.
(c) Fines and penalties recovered under ORS 656.735 { + and
section 3 of this 2001 Act + }.
(d) All moneys received by the Director of the Department of
Consumer and Business Services pursuant to law or from any other
source for purposes for which the fund may be expended.
(2) Moneys in the Workers' Benefit Fund may be expended for the
following purposes:
(a) Expenses of programs under ORS 656.506, 656.622, 656.625,
656.628 and 656.630.
(b) Proceedings against noncomplying employers pursuant to ORS
656.054 and 656.735.
(c) Expenses of vocational assistance on claims, the cost of
which was imposed pursuant to section 15, chapter 600, Oregon
Laws 1985.
(3) Subject to the following provisions, all moneys in the fund
are appropriated continuously to the Director of the Department
of Consumer and Business Services to carry out the activities for
which the fund may be expended:
(a) Moneys received pursuant to ORS 656.054 and 656.735 and
transfers made pursuant to ORS 705.148 may be expended only to
carry out the provisions of ORS 656.054 and 656.735 and section
15, chapter 600, Oregon Laws 1985.
(b) Moneys received pursuant to ORS 656.506 and the transfers
of unexpended and unobligated moneys in the Retroactive Reserve,
Reemployment Assistance Reserve, Reopened Claims Reserve and
Handicapped Workers Reserve referred to in ORS 656.506, 656.622,
656.625 and 656.628 (All 1993 Edition) may be expended only to
carry out the programs referred to in ORS 656.506, 656.622,
656.625, 656.628 and 656.630.
(4) Notwithstanding any other provision of this chapter, if the
director determines at any time that there are insufficient
moneys in the Workers' Benefit Fund to pay the expenses of
programs for which expenditure of the fund is authorized, the
director may reduce the level of benefits payable accordingly.
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