Chapter 461 Oregon Laws 2005
AN ACT
SB 386
Relating to permanent total disability benefits paid in workers’ compensation claims; creating new provisions; and amending ORS 656.206, 656.268, 656.319 and 656.605.
Be It Enacted by the People of the State of
Oregon:
SECTION 1. ORS 656.206, as amended by section 5, chapter 657, Oregon Laws 2003, is amended to read:
656.206. (1) As used in this section:
(a)
“Essential functions” means the primary tasks associated with the job.
(b)
“Materially improved medically” means an actual change for the better in the
worker’s medical condition that is supported by objective findings.
(c)
“Materially improved vocationally” means an actual change for the better in
the:
(A)
Worker’s vocational capability; or
(B) Likelihood that the worker can return to work in a gainful and suitable occupation.
[(a)] (d) [Notwithstanding ORS 656.225,] “Permanent total disability” means, notwithstanding ORS 656.225, the loss, including preexisting disability, of use or function of any portion of the body which permanently incapacitates the worker from regularly performing work at a gainful and suitable occupation. [As used in this section, a gainful occupation is one that pays wages equal to or greater than the state mandated hourly minimum wage. As used in this section, a suitable occupation is one that the worker has the ability and the training or experience to perform, or an occupation that the worker is able to perform after rehabilitation.]
(e)
“Regularly performing work” means the ability of the worker to discharge the
essential functions of the job.
(f) “Suitable occupation” means one that the worker has the ability and the training or experience to perform, or an occupation that the worker is able to perform after rehabilitation.
[(b)] (g) “Wages” means wages as determined under ORS 656.210.
(2) When permanent total disability results from the injury, the worker shall receive during the period of that disability compensation benefits equal to 66-2/3 percent of wages not to exceed 100 percent of the average weekly wage nor less than the amount of 90 percent of wages a week or the amount of $50, whichever amount is lesser.
(3) The worker has the burden of proving permanent total disability status and must establish that the worker is willing to seek regular gainful employment and that the worker has made reasonable efforts to obtain such employment.
(4) When requested by the Director of the Department of Consumer and Business Services, a worker who receives permanent total disability benefits shall file on a form provided by the director, a sworn statement of the worker’s gross annual income for the preceding year along with such other information as the director considers necessary to determine whether the worker regularly performs work at a gainful and suitable occupation.
(5) Each insurer shall reexamine periodically each permanent total disability claim for which the insurer has current payment responsibility to determine whether the worker [is currently] has materially improved, either medically or vocationally, and is no longer permanently incapacitated from regularly performing work at a gainful and suitable occupation. Reexamination shall be conducted every two years or at such other more frequent interval as the director may prescribe. Reexamination shall include such medical examinations, vocational evaluations, reports and other records as the insurer considers necessary or the director may require.
(6)(a)
If a worker receiving permanent total disability benefits is found to be
materially improved and capable of regularly performing work at a gainful and
suitable occupation, the insurer or self-insured employer shall issue a notice
of closure pursuant to ORS 656.268. Permanent total disability benefits shall
be paid through the date of the notice of closure. Notwithstanding ORS 656.268
(5), if a worker objects to a notice of closure issued under this subsection,
the worker must request a hearing. If the worker requests a hearing on the
notice of closure before the Hearings Division of the Workers’ Compensation
Board within 30 days of the date of the notice of closure, the insurer or
self-insured employer shall continue payment of permanent total disability
benefits until an order of the Hearings Division or a subsequent order affirms
the notice of closure or until another order that terminates the worker’s
benefits becomes final. If the worker requests a hearing on the notice of
closure more than 30 days from the date of the notice of closure but before the
60-day period for requesting a hearing expires, the insurer or self-insured
employer shall resume paying permanent total disability benefits from the date
the hearing is requested and shall continue payment of benefits until an order
of the Hearings Division or a subsequent order affirms the notice of closure or
until another order that terminates the worker’s benefits becomes final. If the
notice of closure is upheld by the Hearings Division, the insurer or
self-insured employer shall be reimbursed from the Workers’ Benefit Fund for
the amount of permanent total disability benefits paid after the date of the
notice of closure issued under this subsection.
(b)
An insurer or self-insured employer must establish that the condition of a
worker who is receiving permanent total disability benefits has materially
improved by a preponderance of the evidence presented at hearing.
(c)
Medical examinations or vocational evaluations used to support the issuance of
a notice of closure under this subsection must include at least one report in
which the author personally observed the worker.
(d)
Notwithstanding section 54 (3), chapter 2, Oregon Laws 1990, the Hearings
Division of the Workers’ Compensation Board may request the director to order a
medical arbiter examination of an injured worker who has requested a hearing
under this subsection.
(7)
A worker who has had permanent total disability benefits terminated under this
section by an order that has become final is eligible for vocational assistance
pursuant to ORS 656.340. Notwithstanding ORS 656.268 (9), if a worker has
enrolled in and is actively engaged in a training program, when vocational
assistance provided under this section ends or the worker ceases to be enrolled
and actively engaged in the training program, the insurer or the self-insured
employer shall determine the extent of disability pursuant to ORS 656.214.
(8)
A worker receiving permanent total disability benefits is required, if
requested by the director, the insurer or the self-insured employer, to submit
to a vocational evaluation at a time reasonably convenient to the worker as may
be provided by the rules of the director. No more than three evaluations may be
requested except after notification to and authorization by the director. If
the worker refuses to submit to or obstructs a vocational evaluation, the
rights of the worker to compensation shall be suspended with the consent of the
director until the evaluation has taken place, and no compensation shall be
payable for the period during which the worker refused to submit to or
obstructed the evaluation. The insurer or self-insured employer shall pay the
costs of the evaluation and related services that are reasonably necessary to
allow the worker to attend the evaluation requested under this subsection. As
used in this subsection, “related services” includes, but is not limited to,
wages, child care, travel, meals and lodging.
(9)
Notwithstanding any other provisions of this chapter, if a worker receiving
permanent total disability incurs a new compensable injury, the worker’s
entitlement to compensation for the new injury shall be limited to medical
benefits pursuant to ORS 656.245 and permanent partial disability benefits for
impairment, as determined in the manner set forth in ORS 656.214 (2).
(10)
When a worker eligible for benefits under this section returns to work, if the
combined total of the worker’s post-injury wages plus permanent total
disability benefit exceeds the worker’s wage at the time of injury, the
worker’s permanent total disability benefit shall be reduced by the amount the
worker’s wages plus statutory permanent total disability benefit exceeds the
worker’s wage at injury.
(11)
For purposes of this section:
(a)
A gainful occupation for workers with a date of injury prior to January 1, 2006,
who were:
(A)
Employed continuously for 52 weeks prior to the injury, is an occupation that
provides weekly wages that are the lesser of the most recent federal poverty
guidelines for a family of three that are applicable to Oregon residents and
that are published annually in the Federal Register by the United States
Department of Health and Human Services or 66-2/3 percent of the worker’s
average weekly wages from all employment for the 52 weeks prior to the date of
injury.
(B)
Not employed continuously for the 52 weeks prior to the date of injury, but who
were employed for at least four weeks prior to the date of injury, is an
occupation that provides weekly wages that are the lesser of the most recent
federal poverty guidelines for a family of three that are applicable to Oregon
residents and that are published annually in the Federal Register by the United
States Department of Health and Human Services or 66-2/3 percent of the
worker’s average weekly wage from all employment for the 52 weeks prior to the
date of injury based on weeks of actual employment, excluding any extended
periods of unemployment.
(C)
Employed for less than four weeks prior to the date of injury with no other
employment during the 52 weeks prior to the date of injury, is an occupation
that provides weekly wages that are the lesser of the most recent federal
poverty guidelines for a family of three that are applicable to Oregon
residents and that are published annually in the Federal Register by the United
States Department of Health and Human Services or 66-2/3 percent of the average
weekly wages intended by the parties at the time of initial hire.
(b)
A gainful occupation for workers with a date of injury on or after January 1,
2006, who were:
(A)
Employed continuously for 52 weeks prior to the injury, is an occupation that
provides weekly wages that are the lesser of the most recent federal poverty
guidelines for a family of three that are applicable to Oregon residents and
that are published annually in the Federal Register by the United States
Department of Health and Human Services or 66-2/3 percent of the worker’s
average weekly wages from all employment for the 52 weeks prior to the date of
injury adjusted by the percentage of change in the applicable federal poverty
guidelines for a family of three from the date of injury to the date of
evaluation of the extent of the worker’s disability.
(B)
Not employed continuously for the 52 weeks prior to the date of injury, but who
were employed for at least four weeks prior to the date of injury, is an
occupation that provides weekly wages that are the lesser of the most recent
federal poverty guidelines for a family of three that are applicable to Oregon
residents and that are published annually in the Federal Register by the United
States Department of Health and Human Services or 66-2/3 percent of the
worker’s average weekly wage from all employment for the 52 weeks prior to the
date of injury based on weeks of actual employment, excluding any extended
periods of unemployment and as adjusted by the percentage of change in the
applicable federal poverty guidelines for a family of three from the date of
injury to the date of evaluation of the extent of the worker’s disability.
(C) Employed for less than four weeks prior to the date of injury with no other employment during the 52 weeks prior to the date of injury, is an occupation that provides weekly wages that are the lesser of the most recent federal poverty guidelines for a family of three that are applicable to Oregon residents and that are published annually in the Federal Register by the United States Department of Health and Human Services or 66-2/3 percent of the average weekly wages intended by the parties at the time of initial hire adjusted by the percentage of change in the applicable federal poverty guidelines for a family of three from the date of injury to the date of evaluation of the extent of the worker’s disability.
SECTION 2. ORS 656.206, as amended by sections 5 and 6, chapter 657, Oregon Laws 2003, is amended to read:
656.206. (1) As used in this section:
(a)
“Essential functions” means the primary tasks associated with the job.
(b)
“Materially improved medically” means an actual change for the better in the
worker’s medical condition that is supported by objective findings.
(c)
“Materially improved vocationally” means an actual change for the better in
the:
(A)
Worker’s vocational capability; or
(B) Likelihood that the worker can return to work in a gainful and suitable occupation.
[(a)] (d) [Notwithstanding ORS 656.225,] “Permanent total disability” means, notwithstanding ORS 656.225, the loss, including preexisting disability, of use or function of any scheduled or unscheduled portion of the body which permanently incapacitates the worker from regularly performing work at a gainful and suitable occupation. [As used in this section, a gainful occupation is one that pays wages equal to or greater than the state mandated hourly minimum wage. As used in this section, a suitable occupation is one that the worker has the ability and the training or experience to perform, or an occupation that the worker is able to perform after rehabilitation.]
(e)
“Regularly performing work” means the ability of the worker to discharge the
essential functions of the job.
(f) “Suitable occupation” means one that the worker has the ability and the training or experience to perform, or an occupation that the worker is able to perform after rehabilitation.
[(b)] (g) “Wages” means wages as determined under ORS 656.210.
(2) When permanent total disability results from the injury, the worker shall receive during the period of that disability compensation benefits equal to 66-2/3 percent of wages not to exceed 100 percent of the average weekly wage nor less than the amount of 90 percent of wages a week or the amount of $50, whichever amount is lesser.
(3) The worker has the burden of proving permanent total disability status and must establish that the worker is willing to seek regular gainful employment and that the worker has made reasonable efforts to obtain such employment.
(4) When requested by the Director of the Department of Consumer and Business Services, a worker who receives permanent total disability benefits shall file on a form provided by the director, a sworn statement of the worker’s gross annual income for the preceding year along with such other information as the director considers necessary to determine whether the worker regularly performs work at a gainful and suitable occupation.
(5) Each insurer shall reexamine periodically each permanent total disability claim for which the insurer has current payment responsibility to determine whether the worker [is currently] has materially improved, either medically or vocationally, and is no longer permanently incapacitated from regularly performing work at a gainful and suitable occupation. Reexamination shall be conducted every two years or at such other more frequent interval as the director may prescribe. Reexamination shall include such medical examinations, vocational evaluations, reports and other records as the insurer considers necessary or the director may require.
(6)(a)
If a worker receiving permanent total disability benefits is found to be
materially improved and capable of regularly performing work at a gainful and
suitable occupation, the insurer or self-insured employer shall issue a notice
of closure pursuant to ORS 656.268. Permanent total disability benefits shall
be paid through the date of the notice of closure. Notwithstanding ORS 656.268
(5), if a worker objects to a notice of closure issued under this subsection,
the worker must request a hearing. If the worker requests a hearing on the
notice of closure before the Hearings Division of the Workers’ Compensation
Board within 30 days of the date of the notice of closure, the insurer or
self-insured employer shall continue payment of permanent total disability
benefits until an order of the Hearings Division or a subsequent order affirms
the notice of closure or until another order that terminates the worker’s
benefits becomes final.
If the worker requests a hearing on the
notice of closure more than 30 days from the date of the notice of closure but
before the 60-day period for requesting a hearing expires, the insurer or
self-insured employer shall resume paying permanent total disability benefits
from the date the hearing is requested and shall continue payment of benefits
until an order of the Hearings Division or a subsequent order affirms the
notice of closure or until another order that terminates the worker’s benefits
becomes final. If the notice of closure is upheld by the Hearings Division, the
insurer or self-insured employer shall be reimbursed from the Workers’ Benefit
Fund for the amount of permanent total disability benefits paid after the date
of the notice of closure issued under this subsection.
(b)
An insurer or self-insured employer must establish that the condition of a
worker who is receiving permanent total disability benefits has materially
improved by a preponderance of the evidence presented at hearing.
(c)
Medical examinations or vocational evaluations used to support the issuance of
a notice of closure under this subsection must include at least one report in
which the author personally observed the worker.
(d)
Notwithstanding section 54 (3), chapter 2, Oregon Laws 1990, the Hearings
Division of the Workers’ Compensation Board may request the director to order a
medical arbiter examination of an injured worker who has requested a hearing
under this subsection.
(7)
A worker who has had permanent total disability benefits terminated under this
section by an order that has become final is eligible for vocational assistance
pursuant to ORS 656.340. Notwithstanding ORS 656.268 (9), if a worker has
enrolled in and is actively engaged in a training program, when vocational
assistance provided under this section ends or the worker ceases to be enrolled
and actively engaged in the training program, the insurer or self-insured
employer shall determine the extent of disability pursuant to ORS 656.214.
(8)
A worker receiving permanent total disability benefits is required, if
requested by the director, the insurer or the self-insured employer, to submit
to a vocational evaluation at a time reasonably convenient to the worker as may
be provided by the rules of the director. No more than three evaluations may be
requested except after notification to and authorization by the director. If
the worker refuses to submit to or obstructs a vocational evaluation, the
rights of the worker to compensation shall be suspended with the consent of the
director until the evaluation has taken place, and no compensation shall be
payable for the period during which the worker refused to submit to or
obstructed the evaluation. The insurer or self-insured employer shall pay the
costs of the evaluation and related services that are reasonably necessary to
allow the worker to attend the evaluation requested under this subsection. As
used in this subsection, “related services” includes, but is not limited to,
wages, child care, travel, meals and lodging.
(9)
Notwithstanding any other provisions of this chapter, if a worker receiving
permanent total disability incurs a new compensable injury, the worker’s
entitlement to compensation for the new injury shall be limited to medical
benefits pursuant to ORS 656.245 and permanent partial disability benefits for
impairment, as determined in the manner set forth in ORS 656.214 (2).
(10)
When a worker eligible for benefits under this section returns to work, if the
combined total of the worker’s post-injury wages plus permanent total
disability benefit exceeds the worker’s wage at the time of injury, the
worker’s permanent total disability benefit shall be reduced by the amount the
worker’s wages plus statutory permanent total disability benefit exceeds the
worker’s wage at injury.
(11)
For purposes of this section:
(a)
A gainful occupation for workers with a date of injury prior to January 1,
2006, who were:
(A)
Employed continuously for 52 weeks prior to the injury, is an occupation that
provides weekly wages that are the lesser of the most recent federal poverty
guidelines for a family of three that are applicable to Oregon residents and
that are published annually in the Federal Register by the United States
Department of Health and Human Services or 66-2/3 percent of the worker’s
average weekly wages from all employment for the 52 weeks prior to the date of
injury.
(B)
Not employed continuously for the 52 weeks prior to the date of injury, but who
were employed for at least four weeks prior to the date of injury, is an
occupation that provides weekly wages that are the lesser of the most recent
federal poverty guidelines for a family of three that are applicable to Oregon
residents and that are published annually in the Federal Register by the United
States Department of Health and Human Services or 66-2/3 percent of the
worker’s average weekly wage from all employment for the 52 weeks prior to the
date of injury based on weeks of actual employment, excluding any extended periods
of unemployment.
(C)
Employed for less than four weeks prior to the date of injury with no other
employment during the 52 weeks prior to the date of injury, is an occupation
that provides weekly wages that are the lesser of the most recent federal
poverty guidelines for a family of three that are applicable to Oregon
residents and that are published annually in the Federal Register by the United
States Department of Health and Human Services or 66-2/3 percent of the average
weekly wages intended by the parties at the time of initial hire.
(b)
A gainful occupation for workers with a date of injury on or after January 1,
2006, who were:
(A)
Employed continuously for 52 weeks prior to the injury, is an occupation that
provides weekly wages that are the lesser of the most recent federal poverty
guidelines for a family of three that are applicable to Oregon residents and
that are published annually in the Federal Register by the United States
Department of Health and Human Services or 66-2/3 percent of the worker’s
average weekly wages from all employment for the 52 weeks prior to the date of
injury adjusted by the percentage of change in the applicable federal poverty
guidelines for a family of three from the date of injury to the date of
evaluation of the extent of the worker’s disability.
(B)
Not employed continuously for the 52 weeks prior to the date of injury, but who
were employed for at least four weeks prior to the date of injury, is an
occupation that provides weekly wages that are the lesser of the most recent
federal poverty guidelines for a family of three that are applicable to Oregon
residents and that are published annually in the Federal Register by the United
States Department of Health and Human Services or 66-2/3 percent of the worker’s
average weekly wage from all employment for the 52 weeks prior to the date of
injury based on weeks of actual employment, excluding any extended periods of
unemployment and as adjusted by the percentage of change in the applicable
federal poverty guidelines for a family of three from the date of injury to the
date of evaluation of the extent of the worker’s disability.
(C) Employed for less than four weeks prior to the date of injury with no other employment during the 52 weeks prior to the date of injury, is an occupation that provides weekly wages that are the lesser of the most recent federal poverty guidelines for a family of three that are applicable to Oregon residents and that are published annually in the Federal Register by the United States Department of Health and Human Services or 66-2/3 percent of the average weekly wages intended by the parties at the time of initial hire adjusted by the percentage of change in the applicable federal poverty guidelines for a family of three from the date of injury to the date of evaluation of the extent of the worker’s disability.
SECTION 3. ORS 656.268, as amended by section 7, chapter 657, Oregon Laws 2003, is amended to read:
656.268. (1) One purpose of this chapter is to restore the injured worker as soon as possible and as near as possible to a condition of self support and maintenance as an able-bodied worker. The insurer or self-insured employer shall close the worker’s claim, as prescribed by the Director of the Department of Consumer and Business Services, and determine the extent of the worker’s permanent disability, provided the worker is not enrolled and actively engaged in training according to rules adopted by the director pursuant to ORS 656.340 and 656.726, when:
(a) The worker has become medically stationary and there is sufficient information to determine permanent disability;
(b) The accepted injury is no longer the major contributing cause of the worker’s combined or consequential condition or conditions pursuant to ORS 656.005 (7). When the claim is closed because the accepted injury is no longer the major contributing cause of the worker’s combined or consequential condition or conditions, and there is sufficient information to determine permanent disability, the likely permanent disability that would have been due to the current accepted condition shall be estimated; [or]
(c) Without the approval of the
attending physician or nurse practitioner authorized to provide compensable
medical services under ORS 656.245, the worker fails to seek medical treatment
for a period of 30 days or the worker fails to attend a closing examination,
unless the worker affirmatively establishes that such failure is attributable
to reasons beyond the worker’s control[.]; or
(d) An insurer or self-insured employer finds that a worker who has been receiving permanent total disability benefits has materially improved and is capable of regularly performing work at a gainful and suitable occupation.
(2) If the worker is enrolled and actively engaged in training according to rules adopted pursuant to ORS 656.340 and 656.726, the temporary disability compensation shall be proportionately reduced by any sums earned during the training.
(3) A copy of all medical reports and reports of vocational rehabilitation agencies or counselors shall be furnished to the worker, if requested by the worker.
(4) Temporary total disability benefits shall continue until whichever of the following events first occurs:
(a) The worker returns to regular or modified employment;
(b) The attending physician or nurse practitioner who has authorized temporary disability benefits for the worker under ORS 656.245 advises the worker and documents in writing that the worker is released to return to regular employment;
(c) The attending physician or nurse practitioner who has authorized temporary disability benefits for the worker under ORS 656.245 advises the worker and documents in writing that the worker is released to return to modified employment, such employment is offered in writing to the worker and the worker fails to begin such employment. However, an offer of modified employment may be refused by the worker without the termination of temporary total disability benefits if the offer:
(A) Requires a commute that is beyond the physical capacity of the worker according to the worker’s attending physician or the nurse practitioner who may authorize temporary disability under ORS 656.245;
(B) Is at a work site more than 50 miles one way from where the worker was injured unless the site is less than 50 miles from the worker’s residence or the intent of the parties at the time of hire or as established by the pattern of employment prior to the injury was that the employer had multiple or mobile work sites and the worker could be assigned to any such site;
(C) Is not with the employer at injury;
(D) Is not at a work site of the employer at injury;
(E) Is not consistent with the existing written shift change policy or is not consistent with common practice of the employer at injury or aggravation; or
(F) Is not consistent with an existing shift change provision of an applicable collective bargaining agreement; or
(d) Any other event that causes temporary disability benefits to be lawfully suspended, withheld or terminated under ORS 656.262 (4) or other provisions of this chapter.
(5)(a) Findings by the insurer or self-insured employer regarding the extent of the worker’s disability in closure of the claim shall be pursuant to the standards prescribed by the director [of the Department of Consumer and Business Services]. The insurer or self-insured employer shall issue a notice of closure of such a claim to the worker, to the worker’s attorney if the worker is represented, and to the director. The notice must inform:
(A) The parties, in boldfaced type, of the proper manner in which to proceed if they are dissatisfied with the terms of the notice;
(B) The worker of the amount of any further compensation, including permanent disability compensation to be awarded; of the duration of temporary total or temporary partial disability compensation; of the right of the worker to request reconsideration by the director under this section within 60 days of the date of the notice of claim closure; of the right of the insurer or self-insured employer to request reconsideration by the director under this section within seven days of the date of the notice of claim closure; of the aggravation rights; and of such other information as the director may require; and
(C) Any beneficiaries of death benefits to which they may be entitled pursuant to ORS 656.204 and 656.208.
(b) If the insurer or self-insured employer has not issued a notice of closure, the worker may request closure. Within 10 days of receipt of a written request from the worker, the insurer or self-insured employer shall issue a notice of closure if the requirements of this section have been met or a notice of refusal to close if the requirements of this section have not been met. A notice of refusal to close shall advise the worker of the decision not to close; of the right of the worker to request a hearing pursuant to ORS 656.283 within 60 days of the date of the notice of refusal to close the claim; of the right to be represented by an attorney; and of such other information as the director may require.
(c) If a worker, insurer or self-insured employer objects to the notice of closure, the objecting party first must request reconsideration by the director under this section. A worker’s request for reconsideration must be made within 60 days of the date of the notice of closure. A request for reconsideration by an insurer or self-insured employer may be based only on disagreement with the findings used to rate impairment and must be made within seven days of the date of the notice of closure.
(d) If an insurer or self-insured employer has closed a claim or refused to close a claim pursuant to this section, if the correctness of that notice of closure or refusal to close is at issue in a hearing on the claim and if a finding is made at the hearing that the notice of closure or refusal to close was not reasonable, a penalty shall be assessed against the insurer or self-insured employer and paid to the worker in an amount equal to 25 percent of all compensation determined to be then due the claimant.
(e) If, upon reconsideration of a claim closed by an insurer or self-insured employer, the director orders an increase by 25 percent or more of the amount of compensation to be paid to the worker for permanent disability and the worker is found upon reconsideration to be at least 20 percent permanently disabled, a penalty shall be assessed against the insurer or self-insured employer and paid to the worker in an amount equal to 25 percent of all compensation determined to be then due the claimant. If the increase in compensation results from new information obtained through a medical arbiter examination or from the adoption of a temporary emergency rule, the penalty shall not be assessed.
(6)(a) Notwithstanding any other provision of law, only one reconsideration proceeding may be held on each notice of closure. At the reconsideration proceeding:
(A) A deposition arranged by the worker, limited to the testimony and cross-examination of the worker about the worker’s condition at the time of claim closure, shall become part of the reconsideration record. The deposition must be conducted subject to the opportunity for cross-examination by the insurer or self-insured employer and in accordance with rules adopted by the director. The cost of the court reporter and one original of the transcript of the deposition for the Department of Consumer and Business Services and one copy of the transcript of the deposition for each party shall be paid by the insurer or self-insured employer. The reconsideration proceeding may not be postponed to receive a deposition taken under this subparagraph. A deposition taken in accordance with this subparagraph may be received as evidence at a hearing even if the deposition is not prepared in time for use in the reconsideration proceeding.
(B) Pursuant to rules adopted by the director, the worker or the insurer or self-insured employer may correct information in the record that is erroneous and may submit any medical evidence that should have been but was not submitted by the attending physician or nurse practitioner authorized to provide compensable medical services under ORS 656.245 at the time of claim closure.
(C) If the director determines that a claim was not closed in accordance with subsection (1) of this section, the director may rescind the closure.
(b) If necessary, the director may require additional medical or other information with respect to the claims and may postpone the reconsideration for not more than 60 additional calendar days.
(c) In any reconsideration proceeding under this section in which the worker was represented by an attorney, the director shall order the insurer or self-insured employer to pay to the attorney, out of the additional compensation awarded, an amount equal to 10 percent of any additional compensation awarded to the worker.
(d) The reconsideration proceeding shall be completed within 18 working days from the date the reconsideration proceeding begins, and shall be performed by a special evaluation appellate unit within the department. The deadline of 18 working days may be postponed by an additional 60 calendar days if within the 18 working days the department mails notice of review by a medical arbiter. If an order on reconsideration has not been mailed on or before 18 working days from the date the reconsideration proceeding begins, or within 18 working days plus the additional 60 calendar days where a notice for medical arbiter review was timely mailed or the director postponed the reconsideration pursuant to paragraph (b) of this subsection, or within such additional time as provided in subsection (7) of this section when reconsideration is postponed further because the worker has failed to cooperate in the medical arbiter examination, reconsideration shall be deemed denied and any further proceedings shall occur as though an order on reconsideration affirming the notice of closure was mailed on the date the order was due to issue.
(e) The period for completing the reconsideration proceeding described in paragraph (d) of this subsection begins upon receipt by the director of a worker’s request for reconsideration pursuant to subsection (5)(c) of this section. If the insurer or self-insured employer requests reconsideration, the period for reconsideration begins upon the later of the date of the request for reconsideration by the worker, the date of receipt of a waiver from the worker of the right to request reconsideration or the date of expiration of the right of the worker to request reconsideration. If a party elects not to file a separate request for reconsideration, the party does not waive the right to fully participate in the reconsideration proceeding, including the right to proceed with the reconsideration if the initiating party withdraws the request for reconsideration.
(f) Any medical arbiter report may be received as evidence at a hearing even if the report is not prepared in time for use in the reconsideration proceeding.
(g) If any party objects to the reconsideration order, the party may request a hearing under ORS 656.283 within 30 days from the date of the reconsideration order.
(7)(a) If the basis for objection to a notice of closure issued under this section is disagreement with the impairment used in rating of the worker’s disability, the director shall refer the claim to a medical arbiter appointed by the director.
(b) If neither party requests a medical arbiter and the director determines that insufficient medical information is available to determine disability, the director may refer the claim to a medical arbiter appointed by the director.
(c) At the request of either of the parties, a panel of three medical arbiters shall be appointed.
(d) The arbiter, or panel of medical arbiters, shall be chosen from among a list of physicians qualified to be attending physicians referred to in ORS 656.005 (12)(b)(A) who were selected by the director in consultation with the Board of Medical Examiners for the State of Oregon and the committee referred to in ORS 656.790.
(e)(A) The medical arbiter or panel of medical arbiters may examine the worker and perform such tests as may be reasonable and necessary to establish the worker’s impairment.
(B) If the director determines that the worker failed to attend the examination without good cause or failed to cooperate with the medical arbiter, or panel of medical arbiters, the director shall postpone the reconsideration proceedings for up to 60 days from the date of the determination that the worker failed to attend or cooperate, and shall suspend all disability benefits resulting from this or any prior opening of the claim until such time as the worker attends and cooperates with the examination or the request for reconsideration is withdrawn. Any additional evidence regarding good cause must be submitted prior to the conclusion of the 60-day postponement period.
(C) At the conclusion of the 60-day postponement period, if the worker has not attended and cooperated with a medical arbiter examination or established good cause, there shall be no further opportunity for the worker to attend a medical arbiter examination for this claim closure. The reconsideration record shall be closed, and the director shall issue an order on reconsideration based upon the existing record.
(D) All disability benefits suspended pursuant to this subsection, including all disability benefits awarded in the order on reconsideration, or by an Administrative Law Judge, the Workers’ Compensation Board or upon court review, shall not be due and payable to the worker.
(f) The costs of examination and review by the medical arbiter or panel of medical arbiters shall be paid by the insurer or self-insured employer.
(g) The findings of the medical arbiter or panel of medical arbiters shall be submitted to the director for reconsideration of the notice of closure.
(h) After reconsideration, no subsequent medical evidence of the worker’s impairment is admissible before the director, the Workers’ Compensation Board or the courts for purposes of making findings of impairment on the claim closure.
(i)(A) When the basis for objection to a notice of closure issued under this section is a disagreement with the impairment used in rating the worker’s disability, and the director determines that the worker is not medically stationary at the time of the reconsideration or that the closure was not made pursuant to this section, the director is not required to appoint a medical arbiter prior to the completion of the reconsideration proceeding.
(B) If the worker’s condition has substantially changed since the notice of closure, upon the consent of all the parties to the claim, the director shall postpone the proceeding until the worker’s condition is appropriate for claim closure under subsection (1) of this section.
(8) No hearing shall be held on any issue that was not raised and preserved before the director at reconsideration. However, issues arising out of the reconsideration order may be addressed and resolved at hearing.
(9) If, after the notice of closure issued pursuant to this section, the worker becomes enrolled and actively engaged in training according to rules adopted pursuant to ORS 656.340 and 656.726, any permanent disability payments due for work disability under the closure shall be suspended, and the worker shall receive temporary disability compensation and any permanent disability payments due for impairment while the worker is enrolled and actively engaged in the training. When the worker ceases to be enrolled and actively engaged in the training, the insurer or self-insured employer shall again close the claim pursuant to this section if the worker is medically stationary or if the worker’s accepted injury is no longer the major contributing cause of the worker’s combined or consequential condition or conditions pursuant to ORS 656.005 (7). The closure shall include the duration of temporary total or temporary partial disability compensation. Permanent disability compensation shall be redetermined for work disability only. If the worker has returned to work or the worker’s attending physician has released the worker to return to regular or modified employment, the insurer or self-insured employer shall again close the claim. This notice of closure may be appealed only in the same manner as are other notices of closure under this section.
(10) If the attending physician or nurse practitioner authorized to provide compensable medical services under ORS 656.245 has approved the worker’s return to work and there is a labor dispute in progress at the place of employment, the worker may refuse to return to that employment without loss of reemployment rights or any vocational assistance provided by this chapter.
(11) Any notice of closure made under this section may include necessary adjustments in compensation paid or payable prior to the notice of closure, including disallowance of permanent disability payments prematurely made, crediting temporary disability payments against current or future permanent or temporary disability awards or payments and requiring the payment of temporary disability payments which were payable but not paid.
(12) An insurer or self-insured employer may take a credit or offset of previously paid workers’ compensation benefits or payments against any further workers’ compensation benefits or payments due a worker from that insurer or self-insured employer when the worker admits to having obtained the previously paid benefits or payments through fraud, or a civil judgment or criminal conviction is entered against the worker for having obtained the previously paid benefits through fraud. Benefits or payments obtained through fraud by a worker shall not be included in any data used for ratemaking or individual employer rating or dividend calculations by a guaranty contract insurer, a rating organization licensed pursuant to ORS chapter 737, the State Accident Insurance Fund Corporation or the director.
(13)(a) An insurer or self-insured employer may offset any compensation payable to the worker to recover an overpayment from a claim with the same insurer or self-insured employer. When overpayments are recovered from temporary disability or permanent total disability benefits, the amount recovered from each payment shall not exceed 25 percent of the payment, without prior authorization from the worker.
(b) An insurer or self-insured employer may suspend and offset any compensation payable to the beneficiary of the worker, and recover an overpayment of permanent total disability benefits caused by the failure of the worker’s beneficiaries to notify the insurer or self-insured employer about the death of the worker.
(14) Conditions that are direct medical sequelae to the original accepted condition shall be included in rating permanent disability of the claim unless they have been specifically denied.
SECTION 4. ORS 656.268, as amended by sections 7 and 8, chapter 657, Oregon Laws 2003, and section 12, chapter 811, Oregon Laws 2003, is amended to read:
656.268. (1) One purpose of this chapter is to restore the injured worker as soon as possible and as near as possible to a condition of self support and maintenance as an able-bodied worker. The insurer or self-insured employer shall close the worker’s claim, as prescribed by the Director of the Department of Consumer and Business Services, and determine the extent of the worker’s permanent disability, provided the worker is not enrolled and actively engaged in training according to rules adopted by the director pursuant to ORS 656.340 and 656.726, when:
(a) The worker has become medically stationary and there is sufficient information to determine permanent impairment;
(b) The accepted injury is no longer the major contributing cause of the worker’s combined or consequential condition or conditions pursuant to ORS 656.005 (7). When the claim is closed because the accepted injury is no longer the major contributing cause of the worker’s combined or consequential condition or conditions, and there is sufficient information to determine permanent impairment, the likely impairment and adaptability that would have been due to the current accepted condition shall be estimated; [or]
(c) Without the approval of the
attending physician, the worker fails to seek medical treatment for a period of
30 days or the worker fails to attend a closing examination, unless the worker
affirmatively establishes that such failure is attributable to reasons beyond
the worker’s control[.]; or
(d) An insurer or self-insured employer finds that a worker who has been receiving permanent total disability benefits has materially improved and is capable of regularly performing work at a gainful and suitable occupation.
(2) If the worker is enrolled and actively engaged in training according to rules adopted pursuant to ORS 656.340 and 656.726, the temporary disability compensation shall be proportionately reduced by any sums earned during the training.
(3) A copy of all medical reports and reports of vocational rehabilitation agencies or counselors shall be furnished to the worker, if requested by the worker.
(4) Temporary total disability benefits shall continue until whichever of the following events first occurs:
(a) The worker returns to regular or modified employment;
(b) The attending physician advises the worker and documents in writing that the worker is released to return to regular employment;
(c) The attending physician advises the worker and documents in writing that the worker is released to return to modified employment, such employment is offered in writing to the worker and the worker fails to begin such employment. However, an offer of modified employment may be refused by the worker without the termination of temporary total disability benefits if the offer:
(A) Requires a commute that is beyond the physical capacity of the worker according to the worker’s attending physician;
(B) Is at a work site more than 50 miles one way from where the worker was injured unless the site is less than 50 miles from the worker’s residence or the intent of the parties at the time of hire or as established by the pattern of employment prior to the injury was that the employer had multiple or mobile work sites and the worker could be assigned to any such site;
(C) Is not with the employer at injury;
(D) Is not at a work site of the employer at injury;
(E) Is not consistent with the existing written shift change policy or is not consistent with common practice of the employer at injury or aggravation; or
(F) Is not consistent with an existing shift change provision of an applicable collective bargaining agreement; or
(d) Any other event that causes temporary disability benefits to be lawfully suspended, withheld or terminated under ORS 656.262 (4) or other provisions of this chapter.
(5)(a) Findings by the insurer or self-insured employer regarding the extent of the worker’s disability in closure of the claim shall be pursuant to the standards prescribed by the director [of the Department of Consumer and Business Services]. The insurer or self-insured employer shall issue a notice of closure of such a claim to the worker, to the worker’s attorney if the worker is represented, and to the director. The notice must inform:
(A) The parties, in boldfaced type, of the proper manner in which to proceed if they are dissatisfied with the terms of the notice;
(B) The worker of the amount of any further compensation, including permanent disability compensation to be awarded; of the duration of temporary total or temporary partial disability compensation; of the right of the worker to request reconsideration by the director under this section within 60 days of the date of the notice of claim closure; of the right of the insurer or self-insured employer to request reconsideration by the director under this section within seven days of the date of the notice of claim closure; of the aggravation rights; and of such other information as the director may require; and
(C) Any beneficiaries of death benefits to which they may be entitled pursuant to ORS 656.204 and 656.208.
(b) If the insurer or self-insured employer has not issued a notice of closure, the worker may request closure. Within 10 days of receipt of a written request from the worker, the insurer or self-insured employer shall issue a notice of closure if the requirements of this section have been met or a notice of refusal to close if the requirements of this section have not been met. A notice of refusal to close shall advise the worker of the decision not to close; of the right of the worker to request a hearing pursuant to ORS 656.283 within 60 days of the date of the notice of refusal to close the claim; of the right to be represented by an attorney; and of such other information as the director may require.
(c) If a worker, insurer or self-insured employer objects to the notice of closure, the objecting party first must request reconsideration by the director under this section. A worker’s request for reconsideration must be made within 60 days of the date of the notice of closure. A request for reconsideration by an insurer or self-insured employer may be based only on disagreement with the findings used to rate impairment and must be made within seven days of the date of the notice of closure.
(d) If an insurer or self-insured employer has closed a claim or refused to close a claim pursuant to this section, if the correctness of that notice of closure or refusal to close is at issue in a hearing on the claim and if a finding is made at the hearing that the notice of closure or refusal to close was not reasonable, a penalty shall be assessed against the insurer or self-insured employer and paid to the worker in an amount equal to 25 percent of all compensation determined to be then due the claimant.
(e) If, upon reconsideration of a claim closed by an insurer or self-insured employer, the director orders an increase by 25 percent or more of the amount of compensation to be paid to the worker for either a scheduled or unscheduled permanent disability and the worker is found upon reconsideration to be at least 20 percent permanently disabled, a penalty shall be assessed against the insurer or self-insured employer and paid to the worker in an amount equal to 25 percent of all compensation determined to be then due the claimant. If the increase in compensation results from new information obtained through a medical arbiter examination or from the adoption of a temporary emergency rule, the penalty shall not be assessed.
(6)(a) Notwithstanding any other provision of law, only one reconsideration proceeding may be held on each notice of closure. At the reconsideration proceeding:
(A) A deposition arranged by the worker, limited to the testimony and cross-examination of the worker about the worker’s condition at the time of claim closure, shall become part of the reconsideration record. The deposition must be conducted subject to the opportunity for cross-examination by the insurer or self-insured employer and in accordance with rules adopted by the director. The cost of the court reporter and one original of the transcript of the deposition for the Department of Consumer and Business Services and one copy of the transcript of the deposition for each party shall be paid by the insurer or self-insured employer. The reconsideration proceeding may not be postponed to receive a deposition taken under this subparagraph. A deposition taken in accordance with this subparagraph may be received as evidence at a hearing even if the deposition is not prepared in time for use in the reconsideration proceeding.
(B) Pursuant to rules adopted by the director, the worker or the insurer or self-insured employer may correct information in the record that is erroneous and may submit any medical evidence that should have been but was not submitted by the attending physician at the time of claim closure.
(C) If the director determines that a claim was not closed in accordance with subsection (1) of this section, the director may rescind the closure.
(b) If necessary, the director may require additional medical or other information with respect to the claims and may postpone the reconsideration for not more than 60 additional calendar days.
(c) In any reconsideration proceeding under this section in which the worker was represented by an attorney, the director shall order the insurer or self-insured employer to pay to the attorney, out of the additional compensation awarded, an amount equal to 10 percent of any additional compensation awarded to the worker.
(d) The reconsideration proceeding shall be completed within 18 working days from the date the reconsideration proceeding begins, and shall be performed by a special evaluation appellate unit within the department. The deadline of 18 working days may be postponed by an additional 60 calendar days if within the 18 working days the department mails notice of review by a medical arbiter. If an order on reconsideration has not been mailed on or before 18 working days from the date the reconsideration proceeding begins, or within 18 working days plus the additional 60 calendar days where a notice for medical arbiter review was timely mailed or the director postponed the reconsideration pursuant to paragraph (b) of this subsection, or within such additional time as provided in subsection (7) of this section when reconsideration is postponed further because the worker has failed to cooperate in the medical arbiter examination, reconsideration shall be deemed denied and any further proceedings shall occur as though an order on reconsideration affirming the notice of closure was mailed on the date the order was due to issue.
(e) The period for completing the reconsideration proceeding described in paragraph (d) of this subsection begins upon receipt by the director of a worker’s request for reconsideration pursuant to subsection (5)(c) of this section. If the insurer or self-insured employer requests reconsideration, the period for reconsideration begins upon the later of the date of the request for reconsideration by the worker, the date of receipt of a waiver from the worker of the right to request reconsideration or the date of expiration of the right of the worker to request reconsideration. If a party elects not to file a separate request for reconsideration, the party does not waive the right to fully participate in the reconsideration proceeding, including the right to proceed with the reconsideration if the initiating party withdraws the request for reconsideration.
(f) Any medical arbiter report may be received as evidence at a hearing even if the report is not prepared in time for use in the reconsideration proceeding.
(g) If any party objects to the reconsideration order, the party may request a hearing under ORS 656.283 within 30 days from the date of the reconsideration order.
(7)(a) If the basis for objection to a notice of closure issued under this section is disagreement with the impairment used in rating of the worker’s disability, the director shall refer the claim to a medical arbiter appointed by the director.
(b) If neither party requests a medical arbiter and the director determines that insufficient medical information is available to determine disability, the director may refer the claim to a medical arbiter appointed by the director.
(c) At the request of either of the parties, a panel of three medical arbiters shall be appointed.
(d) The arbiter, or panel of medical arbiters, shall be chosen from among a list of physicians qualified to be attending physicians referred to in ORS 656.005 (12)(b)(A) who were selected by the director in consultation with the Board of Medical Examiners for the State of Oregon and the committee referred to in ORS 656.790.
(e)(A) The medical arbiter or panel of medical arbiters may examine the worker and perform such tests as may be reasonable and necessary to establish the worker’s impairment.
(B) If the director determines that the worker failed to attend the examination without good cause or failed to cooperate with the medical arbiter, or panel of medical arbiters, the director shall postpone the reconsideration proceedings for up to 60 days from the date of the determination that the worker failed to attend or cooperate, and shall suspend all disability benefits resulting from this or any prior opening of the claim until such time as the worker attends and cooperates with the examination or the request for reconsideration is withdrawn. Any additional evidence regarding good cause must be submitted prior to the conclusion of the 60-day postponement period.
(C) At the conclusion of the 60-day postponement period, if the worker has not attended and cooperated with a medical arbiter examination or established good cause, there shall be no further opportunity for the worker to attend a medical arbiter examination for this claim closure. The reconsideration record shall be closed, and the director shall issue an order on reconsideration based upon the existing record.
(D) All disability benefits suspended pursuant to this subsection, including all disability benefits awarded in the order on reconsideration, or by an Administrative Law Judge, the Workers’ Compensation Board or upon court review, shall not be due and payable to the worker.
(f) The costs of examination and review by the medical arbiter or panel of medical arbiters shall be paid by the insurer or self-insured employer.
(g) The findings of the medical arbiter or panel of medical arbiters shall be submitted to the director for reconsideration of the notice of closure.
(h) After reconsideration, no subsequent medical evidence of the worker’s impairment is admissible before the director, the Workers’ Compensation Board or the courts for purposes of making findings of impairment on the claim closure.
(i)(A) When the basis for objection to a notice of closure issued under this section is a disagreement with the impairment used in rating the worker’s disability, and the director determines that the worker is not medically stationary at the time of the reconsideration or that the closure was not made pursuant to this section, the director is not required to appoint a medical arbiter prior to the completion of the reconsideration proceeding.
(B) If the worker’s condition has substantially changed since the notice of closure, upon the consent of all the parties to the claim, the director shall postpone the proceeding until the worker’s condition is appropriate for claim closure under subsection (1) of this section.
(8) No hearing shall be held on any issue that was not raised and preserved before the director at reconsideration. However, issues arising out of the reconsideration order may be addressed and resolved at hearing.
(9) If, after the notice of closure issued pursuant to this section, the worker becomes enrolled and actively engaged in training according to rules adopted pursuant to ORS 656.340 and 656.726, any permanent disability payments due under the closure shall be suspended, and the worker shall receive temporary disability compensation while the worker is enrolled and actively engaged in the training. When the worker ceases to be enrolled and actively engaged in the training, the insurer or self-insured employer shall again close the claim pursuant to this section if the worker is medically stationary or if the worker’s accepted injury is no longer the major contributing cause of the worker’s combined or consequential condition or conditions pursuant to ORS 656.005 (7). The closure shall include the duration of temporary total or temporary partial disability compensation. Permanent disability compensation shall be redetermined for unscheduled disability only. If the worker has returned to work or the worker’s attending physician has released the worker to return to regular or modified employment, the insurer or self-insured employer shall again close the claim. This notice of closure may be appealed only in the same manner as are other notices of closure under this section.
(10) If the attending physician has approved the worker’s return to work and there is a labor dispute in progress at the place of employment, the worker may refuse to return to that employment without loss of reemployment rights or any vocational assistance provided by this chapter.
(11) Any notice of closure made under this section may include necessary adjustments in compensation paid or payable prior to the notice of closure, including disallowance of permanent disability payments prematurely made, crediting temporary disability payments against current or future permanent or temporary disability awards or payments and requiring the payment of temporary disability payments which were payable but not paid.
(12) An insurer or self-insured employer may take a credit or offset of previously paid workers’ compensation benefits or payments against any further workers’ compensation benefits or payments due a worker from that insurer or self-insured employer when the worker admits to having obtained the previously paid benefits or payments through fraud, or a civil judgment or criminal conviction is entered against the worker for having obtained the previously paid benefits through fraud. Benefits or payments obtained through fraud by a worker shall not be included in any data used for ratemaking or individual employer rating or dividend calculations by a guaranty contract insurer, a rating organization licensed pursuant to ORS chapter 737, the State Accident Insurance Fund Corporation or the director.
(13)(a) An insurer or self-insured employer may offset any compensation payable to the worker to recover an overpayment from a claim with the same insurer or self-insured employer. When overpayments are recovered from temporary disability or permanent total disability benefits, the amount recovered from each payment shall not exceed 25 percent of the payment, without prior authorization from the worker.
(b) An insurer or self-insured employer may suspend and offset any compensation payable to the beneficiary of the worker, and recover an overpayment of permanent total disability benefits caused by the failure of the worker’s beneficiaries to notify the insurer or self-insured employer about the death of the worker.
(14) Conditions that are direct medical sequelae to the original accepted condition shall be included in rating permanent disability of the claim unless they have been specifically denied.
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.
(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 656.445, 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.
(d) Payment of supplemental temporary disability benefits for workers employed in more than one job at the time of injury and reimbursement of the costs of administering payments resulting from elections by insurers and self-insured employers as provided by ORS 656.210 (5).
(e) Payments made to injured workers pursuant to section 6a, chapter 865, Oregon Laws 2001.
(f) Expenses of the Bureau of Labor
and Industries for enforcing ORS 659A.040, 659A.043, 659A.046, 659A.049 and
659A.052, subject to an agreement between the Director of the Department of
Consumer and Business Services and the Commissioner of the Bureau of Labor and
Industries. The agreement must include, but is not limited to, the amount of
funds to be transferred to the bureau for enforcing ORS 659A.040, 659A.043,
659A.046, 659A.049 and 659A.052 and the information relating to the enforcement
of ORS 659A.040, 659A.043, 659A.046, 659A.049 and 659A.052 that the bureau must
report to the director.
(g) Reimbursement to the insurer or self-insured employer for the amount of permanent total disability benefits paid after the date of the notice of closure that was upheld pursuant to ORS 656.206.
(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.
SECTION 6. ORS 656.319 is amended to read:
656.319. (1) With respect to objection by a claimant to denial of a claim for compensation under ORS 656.262, a hearing thereon shall not be granted and the claim shall not be enforceable unless:
(a) A request for hearing is filed not later than the 60th day after the mailing of the denial to the claimant; or
(b) The request is filed not later than the 180th day after mailing of the denial and the claimant establishes at a hearing that there was good cause for failure to file the request by the 60th day after mailing of the denial.
(2) Notwithstanding subsection (1) of this section, a hearing shall be granted even if a request therefor is filed after the time specified in subsection (1) of this section if the claimant can show lack of mental competency to file the request within that time. The period for filing under this subsection shall not be extended more than five years by lack of mental competency, nor shall it extend in any case longer than one year after the claimant regains mental competency.
(3) With respect to subsection (2) of this section, lack of mental competency shall apply only to an individual suffering from such mental disorder, mental illness or nervous disorder as is required for commitment or voluntary admission to a treatment facility pursuant to ORS 426.005 to 426.223 and 426.241 to 426.380 and the rules of the Department of Human Services.
(4) With respect to objections to a reconsideration order under ORS 656.268, a hearing on such objections shall not be granted unless a request for hearing is filed within 30 days after the copies of the reconsideration order were mailed to the parties.
(5) With respect to objection by a claimant to a notice of refusal to close a claim under ORS 656.268, a hearing on the objection shall not be granted unless the request for hearing is filed within 60 days after copies of the notice of refusal to close were mailed to the parties.
(6) A hearing for failure to process or an allegation that the claim was processed incorrectly shall not be granted unless the request for hearing is filed within two years after the alleged action or inaction occurred.
(7) With respect to objection by a claimant to a notice of closure issued under ORS 656.206, a hearing on the objection shall not be granted unless the request for hearing is filed within 60 days after the notice of closure was mailed to the claimant.
SECTION 7. The amendments to ORS 656.206, 656.268, 656.319 and 656.605 by sections 1 to 6 of this 2005 Act apply to all claims for which a notice of closure is issued under ORS 656.206 or 656.268 on or after the effective date of this 2005 Act.
Approved by the Governor July 7, 2005
Filed in the office of Secretary of State July 7, 2005
Effective date January 1, 2006
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