LD 2133
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Page 1 of 2 An Act to Implement the Recommendations of the Workers' Compensation Board Gove... LD 2133 Title Page
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LR 3420
Item 1

 
Notwithstanding any other provision of law, the salaries of
the following employees of the Workers' Compensation Board Agency
are established by the Executive Director of the Workers'
Compensation Board Agency and must be within the salary ranges
indicated in this section.

 
1. Executive director. The salary of the executive director
is within salary range 91.

 
2. General counsel. The salary of the general counsel is
within salary range 86.

 
3. Deputy general counsel. The salary of the deputy general
counsel is within salary range 85.

 
4. Assistants to the general counsel. The salary of the
assistants to the general counsel is within salary range 82.

 
5. Deputy directors. The salary of the deputy directors is
within the following salary ranges:

 
A. Deputy Director of Medical/Rehabilitation Services,
Range 85;

 
B. Deputy Director of Business Services, Range 85; and

 
C. Deputy Director of Benefits Administration, Range 85.

 
6. Hearing officers. The salary of the hearing officers is
within salary range 90.

 
7. Mediators. The salary of the mediators is within salary
range 80.

 
Sec. 3. 3 MRSA §522-B, as amended by PL 1991, c. 885, Pt. D, §2, is
further amended to read:

 
§522-B. Workers' Compensation Agency budget review

 
The joint standing committee of the Legislature having
jurisdiction over labor matters shall review the budget of the
Workers' Compensation Board Agency and submit its recommendations
in a written report to the joint standing committee of the
Legislature having jurisdiction over appropriations and financial
affairs not later than 60 days after reference of the current
services budget legislation and any supplemental budget
legislation to the joint standing committee having jurisdiction
over appropriations and financial affairs.

 
Sec. 4. 3 MRSA §959, sub-§1, ¶I, as amended by PL 1997, c. 683, Pt. D,
§1, is further amended to read:

 
I. The joint standing committee of the Legislature having
jurisdiction over labor matters shall use the following list
as a guideline for scheduling reviews:

 
(1) Maine State Retirement System in 1997;

 
(2) Department of Labor in 1999;

 
(3) Maine Labor Relations Board in 2001; and

 
(4) Workers' Compensation Board in 2001 and the
Workers' Compensation Agency starting in 2011.

 
Sec. 5. 4 MRSA §807, sub-§3, ¶G, as amended by PL 1995, c. 419, §1, is
further amended to read:

 
G. A person who is not an attorney, but is representing a
party in any hearing, action or proceeding before the
Workers' Compensation Board Agency as provided in Title 39-
A, section 317;

 
Sec. 6. 4 MRSA §1353, sub-§6, as amended by PL 1991, c. 885, Pt. E,
§5 and affected by §47, is further amended to read:

 
6. Reduction. The disability retirement allowance must be
reduced if a disability beneficiary is receiving or has received
payments for the same disability under the workers' compensation
law, or similar law, except for amounts that may be paid or
payable under former Title 39, section 56 or 56-A or Title 39-A,
section 212, subsection 2 or 3.

 
The total of the allowance, not including adjustments under
section 1358 and the payment described in the preceding
paragraph, may not exceed 80% of the beneficiary's average final
compensation. The disability retirement allowance may in no event
be reduced below the actuarial equivalent of the beneficiary's
accumulated contributions at the time of retirement.

 
If the disability beneficiary has received a lump-sum settlement
of workers' compensation benefits, any portion of that settlement
not attributable to vocational rehabilitation, attorneys' fees or
medical expenses must reduce the disability retirement allowance
in the same manner and amount as monthly workers' compensation
benefits. The reduction must be prorated on a monthly basis in
an equitable manner prescribed by the board.

 
If amounts paid or payable under workers' compensation or the
amount of the lump-sum settlement or its attribution are in
dispute, those disputes must be settled by a single member of the
Workers' Compensation Board Agency as provided under Title 39-A.
Determinations of the commissioner agency may be appealed in the
manner provided by Title 39-A, section 322.

 
Sec. 7. 5 MRSA §958, as enacted by PL 1993, c. 145, §2, is amended
to read:

 
§958. Workers' Compensation Agency

 
1. Major policy-influencing positions. The following
positions are major policy-influencing positions within the
Workers' Compensation Board Agency. Notwithstanding any other
provision of law, these positions and their successor positions
are subject to this chapter:

 
A. Executive director;

 
B. General counsel; and

 
C. Deputy directors.

 
Sec. 8. 5 MRSA §1833, first ¶, as amended by PL 1991, c. 885, Pt. D,
§2, is further amended to read:

 
The Workers' Compensation Management Fund is established to
provide for any expenses related to the resolution of workers'
compensation claims including: records and information
management; investigation; medical review; representation;
rehabilitation; payment of compensation; appropriate medical
expenses and other payments required by the Workers' Compensation
Board Agency; the settlement of cases; and other necessary
expenses.

 
Sec. 9. 5 MRSA §9051, sub-§1, as amended by PL 1991, c. 885, Pt. D,
§2, is further amended to read:

 
1. Adjudicatory proceeding. In any adjudicatory proceedings,
except those proceedings involving correctional facilities, the
Workers' Compensation Board or the State Parole Board, the
procedures of this subchapter shall apply. However, in
proceedings arising under Title 39-A, in the event of any
conflict with this subchapter, the applicable provisions of Title
39-A and rules adopted under that title by the Workers'
Compensation Board.

 
Sec. 10. 5 MRSA §12004-G, sub-§35, as enacted by PL 1991, c. 885, Pt.
A, §5 and affected by §§9 to 11, is amended to read:

 
35. Workers' Com-Lost wages39-A MRSA

 
Workers'pensationup to§151

 
CompensationBoard$100 per§151-C

 
diem; ex-

 
penses

 
Sec. 11. 5 MRSA §17906, sub-§2, ¶E, as amended by PL 1991, c. 885, Pt.
E, §10 and affected by §47, is further amended to read:

 
E. Any dispute about amounts paid or payable under workers'
compensation, or about the amount of the lump-sum settlement
and its attributions must be determined on petition, by a
single member of the Workers' Compensation Board Agency, in
accordance with Title 39-A. These determinations may be
appealed under Title 39-A, section 322.

 
Sec. 12. 5 MRSA §17930, sub-§4, ¶E, as amended by PL 1991, c. 885, Pt.
E, §11 and affected by §47, is further amended to read:

 
E. Any dispute about amounts paid or payable under workers'
compensation or the amount of the lump-sum settlement and
its attributions must be determined on petition by a single
member of the Workers' Compensation Board Agency in
accordance with Title 39-A. These determinations may be
appealed under Title 39-A, section 322.

 
Sec. 13. 5 MRSA §18506, sub-§2, ¶E, as amended by PL 1991, c. 885, Pt.
E, §14 and affected by §47, is further amended to read:

 
E. Any dispute about amounts paid or payable under workers'
compensation or about the amount of the lump-sum settlement
and its attributions must be determined, on petition, by a
single member of the Workers' Compensation Board Agency, in
accordance with Title 39-A. These determinations may be
appealed under Title 39-A, section 322.

 
Sec. 14. 5 MRSA §18530, sub-§4, ¶E, as amended by PL 1991, c. 885, Pt.
E, §15 and affected by §47, is further amended to read:

 
E. Any dispute about amounts paid or payable under workers'
compensation or the amount of the lump-sum settlement and
its attributions must be determined on petition by a single
member of the Workers' Compensation Board Agency in
accordance with Title 39-A. These determinations may be
appealed under Title 39-A, section 322.

 
Sec. 15. 17 MRSA §3964, as amended by PL 1991, c. 885, Pt. E, §18
and affected by §47, is further amended to read:

 
§3964. Settlements or releases from injured persons

 
Except as provided in this section, no settlement or general
release or statement either oral, in writing, or electronically
recorded made by any person confined in a hospital or sanitarium
as a patient with reference to any personal injuries for which
that person is confined in that hospital or sanitarium is
admissible in evidence, used or referred to in any manner at the
trial of any action to recover damages for personal injuries or
consequential damages, so called, resulting therefrom, which
statement, settlement or general release was obtained within 30
days after the injuries were sustained and such settlement or
release is null and void. This section does not apply to
statements or releases obtained by police officers or inspectors
of motor vehicles in the performance of their duty, members of
the family of that person or by or on behalf of that person's
attorney. This section does not apply to agreements entered into
pursuant to former Title 39 and approved by the former Workers'
Compensation Commission or Title 39-A and approved by the
Workers' Compensation Board or Workers' Compensation Agency.

 
Sec. 16. 19-A MRSA §2154, sub-§9, as enacted by PL 1997, c. 537, §39
and affected by §62, is amended to read:

 
9. Access to information. The Department of Labor, the
Workers' Compensation Board Agency and the State Tax Assessor may
have access to the information reported to the department for
purposes of program administration.

 
Sec. 17. 19-A MRSA §2360-A, as enacted by PL 1997, c. 654, §1, is
amended to read:

 
§2360-A. Lump-sum settlement; workers' compensation claims

 
On a monthly basis, the department shall notify the Workers'
Compensation Board Agency, referred to in this section as the
"board agency," of the names and social security numbers of all
persons who owe the department child support debts that have been
liquidated by judicial or administrative action. Before
approving any lump-sum settlement, the board agency shall
determine whether the person receiving the settlement is on the
list of persons who owe to the department child support debts
that have been liquidated by judicial or administrative action.
If the person is on the list, the board agency shall notify the
department of the pending settlement and inform the person of the
notification to the department.

 
Sec. 18. 24-A MRSA §2384-B, sub-§2, ¶C, as enacted by PL 1991, c. 885,
Pt. B, §12 and affected by §13, is amended to read:

 
C. Information concerning former Workers' Compensation
Commission and Workers' Compensation Board or Workers'
Compensation Agency proceedings, including:

 
(1) For each informal conference, mediation and
arbitration, the date, commissioner, hearing officer,
mediator or arbitrator for the proceeding, involvement
of attorney or other designated representative and the
resolution; and

 
(2) For each hearing, the date, commissioner, hearing
officer, involvement of attorney or other designated
representative and the decision of the commissioner or
the hearing officer. If a disputed claim results in
multiple hearing dates, the decision must be reported
for the last hearing date; and

 
Sec. 19. 24-A MRSA §2384-B, sub-§4, as enacted by PL 1991, c. 885, Pt.
B, §12 and affected by §13, is amended to read:

 
4. Other data collection systems. The statistical advisory
organization may rely on data collected and reported by other
data gathering organizations or agencies, such as the Workers'
Compensation Board Agency or the Department of Labor. If the
statistical advisory organization is to incorporate data from
other sources, it must satisfy itself that the data is
sufficiently complete and accurate for the purposes for which it
is to be used. The Workers' Compensation Board Agency and the
Department of Labor shall assist the statistical advisory
organization in the development and maintenance of a
comprehensive data base by recording and making available
information within the custody and control of each, respectively,
pursuant to the request of the statistical advisory organization.

 
Sec. 20. 24-A MRSA §2384-B, sub-§10, as amended by PL 1995, c. 462,
Pt. B, §5, is further amended to read:

 
10. Claims covered. This section applies to all claims
occurring on or after January 1, 1989 and prior to January 1,
1993 and to all death, permanent total and major permanent
partial claims occurring between January 1, 1987 and December 31,
1988; and to a reasonable sample, as approved by the
superintendent, of all other indemnity claims occurring between
January 1, 1987 and December 31, 1988. The superintendent may
suspend the reporting requirements of specific items for periods

 
when information that is to be obtained from the Workers'
Compensation Board Agency is temporarily unavailable.

 
Sec. 21. 24-A MRSA §2384-C, sub-§2, ¶C, as enacted by PL 1993, c. 610,
§2, is amended to read:

 
C. Information concerning Workers' Compensation Board
Agency proceedings, including:

 
(1) For each mediation and arbitration, the date, hearing
officer, mediator or arbitrator for the proceeding and
the resolution; and

 
(2) For each hearing, the date, hearing officer and the
decision of the hearing officer. If a disputed claim
results in multiple hearing dates, the decision must be
reported for the last hearing date; and

 
Sec. 22. 24-A MRSA §2384-C, sub-§4, as enacted by PL 1993, c. 610, §2,
is amended to read:

 
4. Other data collection systems. The statistical
organizations may rely on data collected and reported by other
data-gathering organizations or agencies, such as the Workers'
Compensation Board Agency or the Department of Labor, and shall
coordinate with any other statutorily created medical data
collection systems. If a statistical organization is to
incorporate data from other sources, it must satisfy itself that
the data is sufficiently complete and accurate for the purpose
for which it is to be used. The Workers' Compensation Board
Agency and the Department of Labor shall assist the statistical
organizations in the development and maintenance of a
comprehensive data base by recording and making available
information within the custody and control of each, respectively,
pursuant to the request of the statistical organization. The
superintendent may suspend the reporting requirements of specific
items for periods when information that is to be obtained from
the Workers' Compensation Board Agency is temporarily unavailable
or information is found to be unreliable and the unreliability is
not a result of the reporting practices of the carriers or self-
insurers. The superintendent may accept an established data
collection mechanism that is substantially in compliance with the
data elements specified in this section and otherwise meets the
requirements of this section.

 
Sec. 23. 24-A MRSA §2809-A, sub-§11, ¶G, as amended by PL 1991, c. 885,
Pt. E, §30 and affected by §47, is further amended to read:

 
G. Coverage provided under this section may be terminated
sooner than provided under paragraph F if:

 
(1) The member or employee fails to make timely payment of
a required premium amount;

 
(2) The member or employee becomes eligible for coverage
under another group policy; or

 
(3) The Workers' Compensation Board Agency determines
that the injury or disease that entitles the employee
to continue coverage under this section is not
compensable under Title 39-A.

 
Sec. 24. 24-A MRSA §3706, sub-§2, as amended by PL 1991, c. 885, Pt.
D, §2, is further amended to read:

 
2. Statistical and actuarial data. The company must shall
compile and maintain statistical and actuarial data related to
the determination of proper premium rate levels, the incidence of
work-related injuries, costs related to those injuries and any
other data that the company considers desirable. The company
must shall provide this data to the Superintendent of Insurance,
the Chair Executive Director of the Workers' Compensation Board
Agency and the Department of Labor annually and upon request.

 
Sec. 25. 24-A MRSA §4449, last ¶, as amended by PL 1991, c. 885, Pt. D,
§2, is further amended to read:

 
This section does not authorize a stay of proceedings before
the Workers' Compensation Board Agency, or of proceedings in
Superior Court to enforce orders of the Workers' Compensation
Board Agency. A stay of workers' compensation proceedings before
the Workers' Compensation Board Agency or the Superior Court may
be granted if otherwise authorized by law, provided that as long
as good cause for a stay exists and that reasonable diligence was
exhibited by the insurer, the employer, the association and their
counsel to proceed with the proceeding prior to the insolvency.

 
Sec. 26. 26 MRSA §631, as amended by PL 1999, c. 235, §1, is
further amended to read:

 
§631. Employee right to review personnel file

 
The employer shall, upon written request from an employee or
former employee, provide the employee, former employee or duly
authorized representative with an opportunity to review and copy
the employee's personnel file if the employer has a personnel
file for that employee. The reviews and copying must take place
at the location where the personnel files are maintained and

 
during normal office hours unless, at the employer's discretion,
a more convenient time and location for the employee are
arranged. The cost of copying is paid by the person requesting
the copy. For the purpose of this section, a personnel file
includes, but is not limited to, any formal or informal employee
evaluations and reports relating to the employee's character,
credit, work habits, compensation and benefits and nonprivileged
medical records or nurses' station notes relating to the employee
that the employer has in the employer's possession. Records in a
personnel file may be maintained in any form including paper,
microfiche or electronic form. The employer shall take adequate
steps to ensure the integrity and confidentiality of these
records. An employer maintaining records in a form other than
paper shall have available to the employee, former employee or
duly authorized representative the equipment necessary to review
and copy the personnel file. Any employer who, following a
request pursuant to this section, without good cause fails to
provide an opportunity for review and copying of a personnel
file, within 10 days of receipt of that request, is subject to a
civil forfeiture of $25 for each day that a failure continues.
The total forfeiture may not exceed $500. An employee, former
employee or the Department of Labor may bring an action in the
District Court or the Superior Court for such equitable relief,
including an injunction, as the court may consider to be
necessary and proper. The employer may also be required to
reimburse the employee, former employee or the Department of
Labor for costs of suit including a reasonable attorney's fee if
the employee or the department receives a judgment in the
employee's or department's favor, respectively. For the purposes
of this section, the term "nonprivileged medical records or
nurses' station notes" means all those materials that have not
been found to be protected from discovery or disclosure in the
course of civil litigation under the Maine Rules of Civil
Procedure, Rule 26, the Maine Rules of Evidence, Article V or
similar rules adopted by the Workers' Compensation Board Agency
or other administrative tribunals.

 
Sec. 27. 26 MRSA §1401-B, sub-§6, as enacted by PL 1997, c. 393, Pt.
A, §30 and amended by c. 526, §14, is further amended to read:

 
6. Monitor employee leasing industry. The commissioner shall
coordinate the efforts of the State to ensure that the employee
leasing industry is developing in a manner that provides the
greatest benefit to Maine employers while minimizing the
financial risk to those employers and to the leased employees.
The commissioner shall meet at least annually with
representatives of the Bureau of Insurance, the Bureau of Revenue
Services, the Department of Economic and Community Development,
the Workers' Compensation Board Agency and the Bureau of Labor

 
Standards within the Department of Labor. This group shall
develop written material for employers and new businesses that
are considering using an employee leasing firm. The material
must provide guidance for employers on what questions to ask to
minimize their own financial risk and that of their employees.
The material must also include instructions on how to obtain
public information on employee leasing companies, such as
information required for registration purposes. The commissioner
shall meet with the state officials listed in this subsection on
at least an annual basis to review the status of the employee
leasing industry and update the written materials as needed.

 
Sec. 28. 39-A MRSA §102, sub-§1, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
1. After-tax average weekly wage. "After-tax average weekly
wage" means average weekly wage, as defined in subsection 4,
reduced by the prorated weekly amount that would have been paid
under the Federal Insurance Contributions Act, 26 United States
Code, Sections 3101 to 3126, state income tax and federal income
tax calculated on an annual basis, using as the number of
exemptions the disabled employee's dependents plus the employee,
and without excess itemized deductions. Effective January 1,
1993 and each January 1st thereafter, the applicable federal and
state laws in effect on the preceding July 1st are used in
determining the after-tax weekly wage. Each December 1st the
board agency shall publish tables of the average weekly wage and
80% of after-tax average weekly wage that will take effect on the
following January 1st. These tables are conclusive for the
purpose of converting an average weekly wage into 80% of after-
tax average weekly wage.

 
Sec. 29. 39-A MRSA §102, sub-§1-A is enacted to read:

 
1-A.__Agency.__"Agency" means the Workers' Compensation Agency
created by section 151-B and includes a designee of the agency.

 
Sec. 30. 39-A MRSA §102, sub-§5, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
5. Board; board member. "Board" means the Workers'
Compensation Board created by section 151 151-C and includes a
designee of the board. "Board member" means any member of the
board, including the chair.

 
Sec. 31. 39-A MRSA §102, sub-§7, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
7. Compensation payment scheme. "Compensation payment
scheme" means the procedure whereby an employer is required to
provide compensation or other benefits under this Act to an
employee. "Compensation payment scheme" includes a decree of the
board or agency, payment under the early-pay system provided in
former Title 39, section 51-B and, in case of injuries prior to
January 1, 1984, an approved agreement.

 
Sec. 32. 39-A MRSA §102, sub-§8, ¶C, as amended by PL 1999, c. 201, §1
and affected by §2, is further amended to read:

 
C. A child, including an adopted child or a stepchild,
under the age of 18 years, or under the age of 23 years if a
student or over the age of 18 years but physically or
mentally incapacitated from earning, who is dependent upon
the parent with whom the dependent is living or upon whom
the dependent is actually dependent in any way at the time
of the injury to the parent, there being no surviving
dependent parent. For the purposes of this paragraph,
"child" includes any dependent posthumous child whose mother
is not living. If there is more than one child dependent,
the compensation must be divided equally among them.

 
For the purposes of this paragraph, the term "student" means
a person regularly pursuing a full-time course of study or
training at an institution that is:

 
(1) A school, college or university operated or directly
supported by the United States or by any state or local
government or political subdivision thereof;

 
(2) A school, college or university that has been
accredited by a state or by a state-recognized or
nationally recognized accrediting agency or body;

 
(3) A school, college or university not accredited
pursuant to subparagraph (2) but whose credits are
accepted, on transfer, for credit on the same basis as
if transferred from an accredited institution by not
fewer than 3 institutions accredited pursuant to
subparagraph (2); or

 
(4) An additional type of educational or training
institution as defined by the board agency, but not
after the dependent reaches the age of 23 or has
completed 4 years of education beyond the high school
level, except that, when the dependent's 23rd birthday
occurs during a semester or other enrollment period,
the dependent continues to be considered a student
until the end of the semester or other enrollment

 
period. A child is not deemed to have ceased to be a
student during any interim between school years if the
interim does not exceed 5 months and if the dependent
shows to the satisfaction of the board agency that the
dependent has a bona fide intention of continuing to
pursue a full-time course of education or training
during the semester or other enrollment period
immediately following the interim or during periods of
reasonable duration during which, in the judgment of
the board agency, the dependent is prevented by factors
beyond the dependent's control from pursuing the
dependent's education. A child is not deemed to be a
student under this Act during a period of service in
the Armed Forces of the United States.

 
Sec. 33. 39-A MRSA §102, sub-§11, ¶A, as amended by PL 1999, c. 364,
§1, is further amended by amending sub-¶¶(4) and (5) to read:

 
(4) Except for persons engaged in harvesting of forest
products, any Any person, other than a person engaged
in harvesting of forest products, who, in a written
statement to the board executive director, waives all
the benefits and privileges provided by the workers'
compensation laws, provided that as long as the board
executive director has found that person to be a bona
fide owner of at least 20% of the outstanding voting
stock of the corporation by which that person is
employed or a shareholder of the professional
corporation by which that person is employed and that
this waiver was not a prerequisite condition to
employment. For the purposes of this subparagraph, the
term "professional corporation" has the same meaning as
found in Title 13, section 703, subsection 1.

 
Any person may revoke or rescind that person's waiver
upon 30 days' written notice to the board executive
director and that person's employer. The parent,
spouse or child of a person who has made a waiver under
the previous sentence paragraph may state, in writing,
that the parent, spouse or child waives all the
benefits and privileges provided by the workers'
compensation laws if the board executive director finds
that the waiver is not a prerequisite condition to
employment and if the parent, spouse or child is
employed by the same corporation that employs the
person who has made the first waiver;

 
(5) Except for persons engaged in harvesting of forest products,
the The parent, spouse or child of a sole

 
proprietor who is employed by that sole proprietor, or
the parent, spouse or child of a partner who is
employed by the partnership of that partner may state,
who
states in writing, that the parent, spouse or child
waives all the benefits and privileges provided by the
workers' compensation laws if the board executive
director finds that the waiver is not a prerequisite
condition to employment.__This subparagraph does not
apply to persons engaged in harvesting of forest
products;

 
Sec. 34. 39-A MRSA §102, sub-§11, ¶B, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, is amended to read:

 
B. "Employee" includes, if the person elects to be
personally covered by this Title, any person who regularly
operates a business or practices a trade, profession or
occupation, whether individually or in partnership or
association with other persons, whether or not the person
hires employees. Such a person shall elect personal
coverage by insuring and keeping insured the payment of
compensation and other benefits under a workers'
compensation insurance policy. The insurance policy must
clearly indicate the intention of the parties to provide
coverage for the person electing to be personally covered.
The insurance company shall file with the board agency
notice, in such form as the board agency approves, of the
issuance of any workers' compensation policy to a person
electing personal coverage. That insurance may not be
cancelled within the time limited in that policy for its
expiration until at least 30 days after mailing a notice of
the cancellation of that insurance to the board agency and
the person electing personal coverage. In the event that
the person electing personal coverage has obtained a
workers' compensation insurance policy from another
insurance company, and that insurance becomes effective
prior to the expiration of the 30 days, cancellation is
effective as of the effective date of the other insurance.
The Superintendent of Insurance is authorized to review for
approval, at the superintendent's discretion, an appropriate
classification for this class of persons and a reasonable
rate.

 
Sec. 35. 39-A MRSA §102, sub-§12-B is enacted to read:

 
12-B.__Executive director.__"Executive director" means the
Executive Director of the Workers' Compensation Agency appointed
pursuant to section 152-A and includes a designee of the
executive director.

 
Sec. 36. 39-A MRSA §102, sub-§13, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, is amended to read:

 
13. Independent contractor. "Independent contractor" means a
person who performs services for another under contract, but who
is not under the essential control or superintendence of the
other person while performing those services. In determining
whether such a relationship exists, the board agency shall
consider the following factors:

 
A. Whether or not a contract exists for the person to
perform a certain piece or kind of work at a fixed price;

 
B. Whether or not the person employs assistants with the
right to supervise their activities;

 
C. Whether or not the person has an obligation to furnish
any necessary tools, supplies and materials;

 
D. Whether or not the person has the right to control the
progress of the work, except as to final results;

 
E. Whether or not the work is part of the regular business
of the employer;

 
F. Whether or not the person's business or occupation is
typically of an independent nature;

 
G. The amount of time for which the person is employed; and

 
H. The method of payment, whether by time or by job.

 
In applying these factors, the board agency may not give any
particular factor a greater weight than any other factor, nor may
the existence or absence of any one factor be decisive. The
board agency shall consider the totality of the relationship in
determining whether an employer exercises essential control or
superintendence of the person.

 
Sec. 37. 39-A MRSA §105, as amended by PL 1993, c. 120, §1 and
affected by §6, is further amended to read:

 
§105. Predetermination of independent contractor status

 
1. Predetermination permitted. A worker, an employer or a
workers' compensation insurance carrier, or any together, may
apply to the board executive director for a predetermination of
whether the status of an individual worker, group of workers or a

 
job classification associated with the employer is that of an
employee or an independent contractor.

 
A. The predetermination by the board executive director
creates a rebuttable presumption that the determination is
correct in any later claim for benefits under this Act.

 
B. Nothing in this section requires a worker, an employer
or a workers' compensation insurance carrier to request
predetermination.

 
2. Premium adjustment. If it is determined that a
predetermination does not withstand board agency or judicial
scrutiny when raised in a subsequent workers' compensation claim,
then, depending on the final outcome of that subsequent
proceeding, either the workers' compensation insurance carrier
shall return excess premium collected or the employer shall remit
premium subsequently due in order to put the parties in the same
position as if the final outcome under the contested claim were
predetermined correctly.

 
3. Predetermination submission. A party may submit, on forms
approved by the board executive director, a request for
predetermination regarding the status of a person or job
description as an employee or independent contractor. The status
requested by a party is deemed to have been approved if the board
does not deny or take other appropriate action on the submission
within 14 days.

 
4. Hearing. A hearing, if requested by a party within 10
days of the board's decision on a petition, must be conducted
under the Maine Administrative Procedure Act. A party may file a
request for hearing with the executive director within 10 days
after receiving notice of the executive director's decision on a
petition.__The executive director shall set the matter for
hearing, which must be conducted under the Maine Administrative
Procedure Act.

 
5. Certificate. The board executive director shall provide
the petitioning party a certified copy of the decision regarding
predetermination that is to be used as evidence at a later
hearing on benefits.

 
6. Rulemaking. The board is authorized to adopt reasonable
rules pursuant to the Maine Administrative Procedure Act to
implement the intent of this section, which is to afford speedy
and equitable predetermination of employee and independent
contractor status.

 
Sec. 38. 39-A MRSA §106, as amended by PL 1995, c. 694, Pt. D, §63
and affected by Pt. E, §2, is further amended to read:

 
§106. Invalidity of waiver of rights; claims not assignable

 
No An agreement by an employee, unless approved by the board
or by the Commissioner of Labor, to waive the employee's rights
to compensation under this Act is not valid unless approved by
the agency or the Commissioner or Labor. No claims A claim for
compensation under this Act are is not assignable or subject to
attachment or liable in any way for debt, except for the
enforcement of a current support obligation or support arrears
pursuant to Title 19-A, chapter 65, subchapter II, article 3 or
Title 19-A, chapter 65, subchapter III, or for reimbursement of
general assistance pursuant to Title 22, section 4318.

 
Sec. 39. 39-A MRSA §107, last ¶, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
If the employer recovers from a 3rd person damages in excess
of the compensation and benefits paid or for which the employer
has become liable, then any excess must be paid to the injured
employee, less a proportionate share of the expenses and cost of
actions or collection, including reasonable attorney's fees.
Settlement of any such subrogation claims and the distribution of
the proceeds therefrom must have the approval of the court in
which the subrogation action is pending or to which it is
returnable; or if not in suit, of the board executive director.
When the court in which the subrogation action is pending or to
which it is returnable is in vacation, the judge of the court,
or, if the action is pending in or returnable to the Superior
Court, any Justice of the Superior Court has the power to approve
the settlement of the action and the distribution of the proceeds
therefrom. The beneficiary is entitled to reasonable notice and
the opportunity to be present in person or by counsel at the
approval proceeding and to request a hearing pursuant to section
315 if the beneficiary disputes a decision of the executive
director.

 
Sec. 40. 39-A MRSA §109, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§109. Compilation of claims information

 
A person or entity may not compile for the purpose of
distribution and sale listings of employee names and information
regarding their claims with the board agency. Any person or
entity found by the board to have violated this section is
subject to the remedy provision of the Maine Human Rights Act,
Title 5, sections 4613 and 4614.

 
Sec. 41. 39-A MRSA §110, sub-§1, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
1. Permitted options. Subject to the limitation of
subsection 2, the board agency shall recognize as valid and
binding a provision in a collective bargaining agreement between
an employer and a recognized bargaining agent establishing any of
the following:

 
A. Alternative dispute resolution systems that may include,
but are not limited to, mediation or binding arbitration or
the use of mediation and binding arbitration;

 
B. Preferred provider systems for the delivery of health
care services or treatment;

 
C. The use of a designated or limited list of independent
medical examiners;

 
D. Light-duty, modified job or return-to-work programs;

 
E. Vocational rehabilitation or retraining programs; or

 
F. A 24-hour coverage program.

 
Sec. 42. 39-A MRSA §111, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§111. Alternative programs

 
After consultation with the Superintendent of Insurance, the
board executive director may approve an agreement entered into
between an employer and some or all of the employer's employees
to secure the payment of compensation and benefits through an
alternative program that is different from but not less than the
compensation and benefits provided by this Act. The alternative
program may not be approved by the board executive director
unless it provides for compensation and benefits in addition to
those required by this Act and unless it is for a fixed period of
time.

 
Sec. 43. 39-A MRSA §113, sub-§§3 and 4, as enacted by PL 1995, c. 70,
§1, are amended to read:

 
3. Certificate of compliance. A certificate from a duly
authorized official of the workers' compensation board agency or
similar department or agency of the other state certifying that
an employer is insured in that other state and has provided
extraterritorial coverage insuring the employer's employees while

 
working within this State is prima facie evidence that the
employer carries such compensation insurance.

 
4. Reciprocal agreements. The board agency may enter into
reciprocal agreements with workers' compensation agencies of
other states adopting legislation similar to this section to
ensure
efficient administration of the Act.

 
Sec. 44. 39-A MRSA c. 3, is amended by repealing the chapter
headnote and enacting in its place the following:

 
CHAPTER 3

 
WORKERS' COMPENSATION AGENCY

 
Sec. 45. 39-A MRSA §151, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is repealed.

 
Sec. 46. 39-A MRSA §151-A, as enacted by PL 1997, c. 486, §1, is
amended to read:

 
§151-A. Mission statement

 
The board's agency's mission is to serve the employees and
employers of the State fairly and expeditiously by ensuring
compliance with the workers' compensation laws, ensuring the
prompt delivery of benefits legally due, promoting the prevention
of disputes, utilizing dispute resolution to reduce litigation
and facilitating labor-management cooperation.

 
Sec. 47. 39-A MRSA §§151-B and 151-C are enacted to read:

 
§151-B. Workers' Compensation Agency

 
1. Agency established.__The Workers' Compensation Agency is
established as an agency to be governed and administered in
accordance with the provisions of this chapter and other
applicable provisions of state law.

 
2. Headquarters; regional offices.__The agency must have its
central office in the Augusta area, and the executive director
may choose to establish additional regional offices, subject to
the approval of the board.

 
3. Seal.__The agency may adopt a seal.

 
§151-C.__Workers' Compensation Board

 
The board is the governing body of the agency and has general
policy-making and oversight responsibilities for the
implementation of this Act.

 
1. Board established.__Pursuant to Title 5, section 12004-G,
subsection 35, the Workers' Compensation Board is established as
an independent board composed of 9 members, subject to review by
the
joint standing committee of the Legislature having jurisdiction
over state and local government matters and confirmation by the
Legislature.__Notwithstanding the scheduling provisions of Title
3, chapter 6, the designated committee shall complete its review
of an appointment of the Governor within 15 days of the
Governor's written notice of appointment and the vote of the
Legislature must be taken no later than 7 days after the vote of
the designated committee.

 
Three members of the board must be representatives of the public,
3 members of the board must be representatives of management and
3 members of the board must be representatives of labor.__All
management representatives must be appointed from a list provided
by the Maine Chamber of Commerce and Industry or another bona
fide organization or association of employers.__All labor
representatives must be from a list provided by the Executive
Board of the Maine AFL-CIO or another bona fide labor
organization or association of employees representing at least
10% of the Maine workforce.__Any list submitted to the Governor
must have at least 4 times as many names as there are vacancies
for the group represented by the vacancies.__A person nominated
for consideration as a management or labor representative may not
subsequently be appointed as a public member of the board, and a
public member of the board may not subsequently be nominated for
consideration as a management or labor representative.

 
A member of the board is not liable in a civil action for any act
performed in good faith in the execution of duties as a board
member.

 
A member of the board may not be a lobbyist required to be
registered with the Secretary of State, a service provider to the
workers' compensation system or a representative of a service
provider to the workers' compensation system.

 
Members of the board hold office for staggered terms of 4 years,
except for members appointed to fill unexpired terms.__The term
of one member representing each constituency expires February 1st
of each year that is not a gubernatorial election year.__A member
may not serve for more than 2 full terms.

 
2. Removal.__A board member holds office for the term provided
under this section, unless removed, and until a

 
successor is appointed and qualified.__A board member must be
sworn and may be removed by the Governor for inefficiency,
willful neglect of duty or malfeasance in office, but only with
the review and concurrence of the joint standing committee of the
Legislature having jurisdiction over state and local government
matters upon hearing in executive session or by impeachment.
Before removing a board member, the Governor shall notify the
President of the
Senate and the Speaker of the House of Representatives of the
removal and the reasons for the removal.

 
3.__Vacancies.__If a vacancy occurs during a term of a member,
the Governor shall appoint a replacement to fill the unexpired
part of the term. The replacement must be from the group
represented by the member being replaced.__In case the office of
chair becomes vacant, the public member who has served for the
longest period of time shall act as chair until the board elects
a replacement.

 
4. Chair.__The board shall annually elect one of its members
to serve as chair for a one-year term expiring February 1st.__The
chair may vote on all matters before the board.

 
5. Meetings.__The board may hold sessions at the central
office of the agency or at any other place within the State.__A
quorum of the board is 5 members but a smaller number may adjourn
from time to time until a quorum is present.__Except as otherwise
provided, the board may take action by a majority vote of those
members present and voting but only if a quorum is present at the
time of the action.

 
6.__Compensation.__A board member must be paid a per diem
allowance as provided in Title 5, chapter 379 and be reimbursed
for actual, necessary, cash expenses while on official business
of the board.

 
7.__Leave of absence.__An employer may not terminate the
employment of an employee who is appointed as a member of the
board because of the exercise by the employee of duties required
as a board member.__The member is entitled to a leave of absence
from employment for the period of time required to perform the
duties of a board member.__During the leave of absence, the
member may not be subjected to loss of time, vacation time or
benefits of employment, excluding salary.

 
8.__Seal.__The board must have a seal bearing the words
"Workers' Compensation Board of Maine."

 
Sec. 48. 39-A MRSA §152, as amended by PL 1997, c. 486, §2, is
repealed.

 
Sec. 49. 39-A MRSA §152-A is enacted to read:

 
§152-A. Powers, duties and administration of agency

 
1.__Executive director.__The Governor shall appoint an
executive director who shall serve as the chief executive and
administrative officer of the agency and shall consult with the
board on an
ongoing basis.

 
A.__The Governor shall consult with the board before making
the appointment of the executive director pursuant to this
subsection.__The appointment is subject to review by the
joint standing committee of the Legislature having
jurisdiction over state and local government matters and to
confirmation by the Legislature.

 
B.__The executive director holds office for a 5-year term
and may be reappointed.__An executive director whose term
has expired continues to serve until a successor has been
appointed and confirmed.__The Governor shall fill any
vacancy by appointment for the unexpired portion of the
term.

 
C.__Notwithstanding Title 5, section 931, subsection 2, the
executive director is removable for cause by impeachment or
by address of the Governor to both Houses of the
Legislature.

 
D.__The executive director has all the powers necessary to
carry out the executive director's functions under the law,
including the power to enter into contracts on behalf of the
agency.

 
E.__Except as otherwise provided, the executive director
shall hire personnel as necessary to administer this Act,
subject to the Civil Service Law.

 
F.__The executive director, in consultation with the board,
shall appoint deputy directors in charge of the bureaus and
divisions of the agency.__These deputy directors are
unclassified employees, serve at the pleasure of the
executive director and are not subject to the Civil Service
Law.

 
G.__The executive director shall administer the agency's budget.__
The executive director shall allocate the agency's resources
prudently and achieve administrative and staff efficiencies
wherever possible.__The executive director shall develop a
technology plan in conjunction with the Department of
Administrative and Financial Services so as to maximize the use
of technology for the purpose of collecting and analyzing data on
the workers' compensation system.__

 
Subject to review and approval by the board, the executive
director shall submit the biennial budget in accordance with
Title 5, sections 1665 and 1666 and shall submit the annual
budget in accordance with Title 5, section 1667.

 
H.__The executive director shall prepare and submit complete
reports, including duly audited and certified financial
reports, to be distributed in the same manner as state
departmental reports.

 
2. Delegation of authority.__The board and the executive
director may delegate powers and duties as necessary.__Any
official action of an employee of the agency or a designee of the
board or the executive director is an official act of the agency.

 
3. Agency counsel; staff attorney.__The executive director
shall appoint a general counsel, who is the legal adviser to the
agency and who shall perform other duties assigned by the agency,
and assistants to the general counsel as necessary.__The general
counsel and assistants to the general counsel are unclassified
employees, serve at the pleasure of the executive director and
are not subject to the Civil Service Law.__The executive director
shall appoint a staff attorney to advise the advocates pursuant
to section 153-A.__The staff attorney is subject to the Civil
Service Law and works under the direction of the general counsel.

 
4. Employment of and contracts with mediators.__The executive
director shall obtain the services of persons qualified by
background and training to serve as mediators.__In the exercise
of the executive director's discretion, the services of mediators
may be obtained by either of the following methods:

 
A. The executive director may contract for the services of
mediators.__If the executive director contracts directly
with individual mediators, they must be paid reasonable per
diem fees for their services plus reimbursement of their
actual, necessary and reasonable expenses incurred in the
performance of their duties, consistent with policies
established by the agency; or

 
B. The executive director may employ mediators who are not
subject to the Civil Service Law to serve at the pleasure of
the executive director.__They are entitled to receive
reimbursement of their actual, necessary and reasonable
expenses incurred in the performance of their duties,
consistent with policies established by the agency.

 
5. Hearing officers.__The executive director shall obtain the
services of persons qualified by background and training to serve
as hearing officers, who shall conduct all adjudicatory

 
hearings arising under section 315, all proceedings ancillary to
such hearings except as otherwise provided in this Title and any
other adjudicatory proceedings of the agency as assigned at the
discretion of the executive director.__The services of hearing
officers may be obtained by either of the following methods:

 
A.__The executive director may contract for the services of
hearing officers.__If the executive director contracts
directly with individual hearing officers, they must be paid
reasonable per diem fees for their services plus
reimbursement of their actual, necessary and reasonable
expenses incurred in the performance of their duties,
consistent with policies established by the agency; or

 
B.__The executive director may appoint hearing officers to
serve for 3-year terms.__Hearing officers appointed pursuant
to this paragraph are not subject to the Civil Service Law,
are subject to removal by the executive director for good
cause shown and may be appointed for additional 3-year terms
at the pleasure of the executive director.

 
6.__Adjudicatory proceedings.__Except as otherwise expressly
provided, all adjudicatory proceedings arising under this Title
must be conducted under the Maine Administrative Procedure Act.
In proceedings assigned to hearing officers pursuant to
subsection 5, the hearing officer has full decision-making
authority on behalf of the agency, subject to judicial review as
provided by law and board review under section 320 if applicable.__
In all other proceedings, the executive director or the executive
director's designee shall preside and is empowered to take final
agency action unless rules adopted by the agency provide
otherwise or one of the following alternative procedures is
adopted in advance of the hearing with adequate notice to the
parties:

 
A.__At the board's initiative or by referral from the
executive director, the board or a subcommittee or member
designated by the board presides over the hearing and takes
final agency action;

 
B.__At the board's initiative or by referral from the
executive director, a hearing officer or the executive
director or another designee of the board presides over the
hearing and submits proposed findings to the board pursuant
to Title 5, section 9062.__The board takes final agency
action; or

 
C.__A hearing officer or other designee of the executive director
presides over the hearing and submits proposed findings to the
executive director pursuant to Title 5,

 
section 9062.__The executive director takes final agency
action.

 
7. Rules.__The board shall adopt rules on behalf of the agency
to accomplish the purposes of this Act.__Rules adopted under this
section may define terms, prescribe forms and make suitable
orders of procedure to ensure the speedy, efficient, just and
inexpensive disposition of all proceedings under this Act.__The
executive
director shall develop rule-making proposals for consideration by
the board, provide additional assistance as the board requests
and preside over rule-making hearings except when the board
otherwise directs.

 
8. Privacy protection.__The board shall adopt rules
establishing a policy and procedures to safeguard the
confidentiality of the records of the agency and board and the
former Workers' Compensation Commission pertaining to individual
injured employees.__The policy must provide for the availability
of records on a need-to-know basis only and must allow for
legitimate research while protecting individual confidentiality.

 
9. Conflict of interest.__Each member of the board and each
employee, contractor, agent or other representative of the agency
is an executive employee for purposes of Title 5, section 18 and
is subject to the limitations of that section.__In addition,
Title 17, section 3104 is applicable, in accordance with its
provisions, to all such representatives of the agency.

 
10. Accepting gifts, grants or donations.__The board or the
executive director may accept gifts, grants or donations for the
use of the agency as provided by rules adopted by the board under
this section.

 
11. Case administration.__The board shall assume an active and
forceful role in the administration of this Act to ensure that
the system operates efficiently and with maximum benefit to both
employers and employees.__The board shall provide for the
continual oversight of individual cases to ensure that benefits
are provided in accordance with this Act.

 
12. Recommending legislative change.__The board shall consider
and recommend to the Legislature changes in this Act.__
Recommended changes must be forwarded to the Legislature annually
on or before December 1st.

 
13. Advisory committees.__The board and the executive director
may appoint advisory committees as they determine necessary to
assist the agency in matters that arise under this Act.__Advisory
committee members are not entitled to compensation

 
but may be reimbursed for travel and reasonable expenses as
determined by the executive director.

 
14. Reimbursement.__The agency shall impose reasonable charges
for reimbursement for the provision of services, facilities and
materials, including, but not limited to, reproduction and
distribution of forms, reports and publications; photocopying;
and the use of facilities.

 
15.__Rulemaking.__Rules adopted pursuant to this section are
routine technical rules as defined in__Title 5, chapter 375,
subchapter II-A.

 
Sec. 50. 39-A MRSA §153, as amended by PL 1999, c. 354, §2, is
further amended to read:

 
§153. Agency actions

 
In addition to other actions required of or permitted the
board under this Act, the board agency shall perform the actions
required by this section to ensure just and efficient
administration of claims.

 
1. Monitor payments. The board agency shall monitor cases to
ensure that:

 
A. Payments are initiated within the time limits
established in section 205; and

 
B. Payments to the employee provide the full amount of
compensation to which the employee is entitled and are
properly indicated on the memorandum of payment.

 
2. Troubleshooter program. The board agency shall establish
a troubleshooter program to provide information and assistance to
participants in the workers' compensation system. The A
troubleshooter may meet or otherwise communicate with employees,
employers, insurance carriers and health care providers in order
to prevent or informally resolve disputes.

 
3. Construction. In interpreting this Act, the board agency
and reviewing courts shall construe it so as to ensure the
efficient delivery of compensation to injured employees at a
reasonable cost to employers. All workers' compensation cases
must be decided on their merits and the rule of liberal
construction does not apply. Accordingly, this Act is not to be
given a construction in favor of the employee, nor are the rights
and interests of the employer to be favored over those of the
employee.

 
4. Information. The board agency shall require the employee,
employer or insurer to provide it with any information it
reasonably determines necessary to monitor cases, including, but
not limited to, preinjury and postinjury wage statements.

 
5. Abuse investigation unit. The board agency shall provide
adequate funding for an abuse investigation unit.

 
A. The board executive director shall, subject to the Civil
Service Law, appoint at least 2 abuse investigators who must
be qualified by experience and training to perform their
duties.

 
B. The unit shall, at the direction of the board executive
director, investigate all complaints or allegations of
fraud, illegal or improper conduct or violation of this Act
or rules of the board agency relating to workers'
compensation insurance, benefits or programs, including
those acts by employers, employees or insurers. All records,
correspondence and reports of investigation in connection
with actual or alleged fraud, illegal or improper conduct or
violation of this Act or rules of the board agency and all
records, correspondence and reports of criminal prosecution
or civil action are confidential. The confidential nature
of any such record, correspondence or report does not limit
or affect the use of those materials in any prosecution or
action.

 
C. Each employer or employee and each state, county,
municipal or quasi-governmental agency shall cooperate fully
with the unit and provide any information requested by it.

 
D. The unit shall report all its findings to the board
executive director.

 
E. Whenever the executive director or the board determines
that a fraud, attempted fraud or violation of this Act or
rules of the board agency may have occurred, the board
executive director shall report in writing all information
concerning it to the Attorney General or the Attorney
General's delegate for appropriate action, including which
may include a civil action for recovery of funds and
criminal prosecution by the Attorney General.

 
6. Mediation. The board agency shall establish a mediation
program to provide mediation services to parties to workers'
compensation cases.

 
7. Investigation. The board executive director may, when the
interests of any of the parties or when the administration of

 
this Act demands, appoint a person to make a full investigation
of the circumstances surrounding any industrial injury or any
matter connected to an industrial injury, or conduct an audit
pursuant to section 359 and report the same without delay to the
board executive director.

 
8. Impairment guidelines. The following provisions apply
regarding impairment guidelines.

 
A. In order to reduce litigation and establish more
certainty and uniformity in the rating of permanent
impairment, the board shall establish by rule a schedule for
determining the existence and degree of permanent impairment
based upon medically or scientifically demonstrable
findings. The schedule must be based on generally accepted
medical standards for determining impairment and may
incorporate all or part of any one or more generally
accepted schedules used for that purpose, such as the
American Medical Association's "Guides to the Evaluation of
Permanent Impairment." Pending the adoption of a permanent
schedule, "Guides to the Evaluation of Permanent
Impairment," 3rd edition, copyright 1990, by the American
Medical Association, is the temporary schedule and must be
used for the purposes of this subsection.

 
B. The board agency shall collect and analyze data from
Maine cases, studies from other states and generally
accepted medical guidelines for occupational impairment to
so that the board may examine the feasibility and
desirability of establishing an objectively ascertainable
functional capacity standard to be used for determining
eligibility for benefits under this Act consistent with
section 213, subsection 2.

 
9. Audit and enforcement. The executive director shall
establish an audit, enforcement and monitoring program by July 1,
1998, to ensure that all obligations under this Act are met,
including the requirements of section 359. The functions of the
audit and enforcement program include, but are not limited to,
auditing timeliness of payments and claims handling practices of
insurers, self-insurers and 3rd-party administrators; determining
whether insurers, self-insurers and 3rd-party administrators are
unreasonably contesting claims; and ensuring that all reporting
requirements to the board agency are met. The program must be
coordinated with the abuse investigation unit established by
section 153, subsection 5 as appropriate. The program must
monitor activity and conduct audits pursuant to a schedule
developed by the deputy director of benefits administration.
Audit working papers are confidential and may not be disclosed to
any person outside of the board agency except the audited

 
entity. For purposes of this subsection "audit working papers"
means all documentary and other information acquired, prepared or
maintained by the board agency during the conduct of an audit or
investigation, including all intra-agency and interagency
communications relating to an audit or investigation and draft
reports or any portion of a draft report. The final audit
report, including the underlying reconciled information, is not
confidential. At the end of each calendar quarter, the executive
director shall prepare a compliance report summarizing the
results of the audits and reviews conducted pursuant to this
subsection. The executive director shall submit the quarterly
compliance reports to the board, the Bureau of Insurance and the
Director of
the Bureau of Labor Standards within the Department of Labor. An
annual summary must be provided to the Governor and to the joint
standing committees of the Legislature having jurisdiction over
labor and banking and insurance matters by February 15th of each
year. The quarterly compliance reports and the annual summaries
must be made available to the public following distribution.

 
Sec. 51. 39-A MRSA §153-A, as amended by PL 1999, c. 410, §1, is
further amended to read:

 
§153-A. Advocate program

 
1. Advocate program established. The board executive
director shall establish an advocate program to provide
assistance to qualified employees who proceed to mediation and
formal hearing.

 
2. Qualified employee. For purposes of this section,
"qualified employee" means an employee who, with respect to an
injury occurring on or after January 1, 1993, has participated in
the troubleshooter program and has not informally resolved the
dispute and has demonstrated to the board executive director that
legal counsel has not been retained.

 
3. Advocates. The executive director shall hire advocates
under the authority of section 152 152-A, subsection 3, subject
to the Civil Service Law, who must be qualified by experience and
training.

 
A. The minimum qualifications for employment as an advocate
must include at least the following:

 
(1) A 6-year combination of appropriate experience,
education and training in advocacy or dispute
resolution;

 
(2) Knowledge of administrative, adjudicatory or
workers' compensation laws, rules and procedures;

 
(3) Knowledge of legal documents, court procedures and
rules of evidence; and

 
(4) Knowledge of medical and legal terminology and
practices with respect to workers' compensation.

 
B. The board executive director shall ensure that advocates
receive appropriate and ongoing education and training.

 
C. An advocate may not represent before the board agency
any insurer, self-insurer or 3rd-party administrator for a
period of 2 years after terminating employment with the
board agency.

 
4. Duties of advocates. Advocates have the following duties:

 
A. Assisting qualified employees in matters regarding
workers' compensation claims, including negotiations;

 
B. Acting as an information resource to qualified employees
on laws, decisions, rules, policies and procedures of the
board agency;

 
C. Assisting and advocating on behalf of qualified
employees to obtain appropriate rehabilitation, return to
work and employment security services;

 
D. Meeting with or otherwise communicating with insurers,
employers and health care and other authorized providers in
order to assist qualified employees;

 
E. Assisting and advocating on behalf of qualified
employees in any mediation or hearing proceeding under the
jurisdiction of the board agency; and

 
F. Maintaining confidentiality of information and
communications with respect to the assistance and
representation provided to qualified employees.

 
5. Legal advice to advocates. The board's agency's general
counsel shall assign a staff attorney as necessary to advise
advocates on the preparation of qualified employees' cases at the
formal hearing stage.

 
6. Case management authority of advocates. An advocate has
the authority to:

 
A. Manage and prioritize the advocate's caseload to
efficiently move cases through the board agency mediation
and hearing process and to achieve resolution;

 
B. With the written approval of the staff attorney, decline
cases or cease assistance to an employee when the advocate
after investigation finds:

 
(1) Timely notice of the injury was not given by the
employee to the employer, pursuant to this Act;

 
(2) The statute of limitations has expired;

 
(3) The employee's case is based on an argument or
issue adversely determined by the Supreme Judicial
Court;

 
(4) The employee's case is based on a claim of
discrimination governed by section 353;

 
(5) There is no record of medical assessment stating
that the employee's injury was either caused by,
aggravated by or precipitated by the employee's work
or, when the issue is aggravation, there is no record
of medical assessment stating that the employee's work
aggravated a preexisting condition in a significant
manner; or

 
(6) The employee has admitted to a fraudulent act, has
been convicted of a fraudulent act by a court of
competent jurisdiction or has been found to have
committed a fraudulent act by the abuse investigation
unit of the board agency; and

 
C. With the written approval of the staff attorney, present
lump-sum settlements on cases pursuant to section 352.

 
A qualified employee whose case is declined or whose advocate
assistance ceases pursuant to this subsection may appeal the
action to the executive director of the board, within 30 days of
the action. The executive director's ruling on the appeal is
final and is not subject to judicial review. If the executive
director finds assistance by an advocate should resume, the
employee must be assigned to an advocate other than the advocate
who declined the case or ceased assistance.

 
7. Rulemaking. In addition to the case management authority
established reasons specified in subsection 6, the board may
establish by rule additional reasons for which the advocates may
decline or cease assistance on cases. Rules

 
adopted pursuant to this section are routine technical rules as
defined in Title 5, chapter 375, subchapter II-A.

 
Sec. 52. 39-A MRSA §154, as amended by PL 2001, c. 393, §1, is
further amended to read:

 
§154. Dedicated fund; assessment on workers' compensation

 
insurers and self-insurers

 
The Workers' Compensation Board Agency Administrative Fund is
established to accomplish the purposes of this Act. All income
generated pursuant to this section must be recorded on the books
of the State in a separate account and deposited with the
Treasurer of State and be credited to the Workers' Compensation
Board Agency Administrative Fund.

 
1. Use of fund. All money credited to the Workers'
Compensation Board Agency Administrative Fund must be used to
support the activities of the board agency through duly approved
expenditures within the agency's budget and for no other purpose.
Any balance remaining continues from year to year as a fund
available for the purposes set out in this section and for no
other purpose.

 
2. Expenditures. Expenditures from the Workers' Compensation
Board Agency Administrative Fund are subject to legislative
approval and allocation in the same manner as appropriations are
made from the General Fund. The State Controller shall authorize
expenditures from the Worker's Compensation Agency Administrative
Fund upon the basis of allotments recommended by the State Budget
Officer and approved by the Governor that do not exceed the
legislatively approved allocations of the Workers' Compensation
Agency Administrative Fund and not on any other basis. The joint
standing committee of the Legislature having jurisdiction over
appropriations and financial affairs shall approve the
allocation.

 
3. Assessment on workers' compensation insurance. The
following provisions apply regarding the Workers' Compensation
Board Agency assessment on workers' compensation insurance.

 
A. Every insurance company or association that writes workers'
compensation insurance in the State and that does business or
collects premiums or assessments in the State, including newly
licensed insurance companies and associations and every self-
insured employer approved pursuant to section 403, shall pay to
the board agency the assessment determined pursuant to this
section for the purpose of providing partial support and
maintenance of the board agency. An insurance company or self-
insurer whose

 
authority terminates remains responsible for the assessment
that is due in the year following the termination of its
certificate of authority.

 
B. The assessment must be stated as a percentage of each
employer's premium base a dollar amount determined by the
executive director in accordance with subsection 5. In
determining the assessment percentage level, consideration
must be given to the balance in the Workers' Compensation
Board Agency Administrative Fund.

 
B-1. An employer's premium base for assessment purposes is
defined as payroll times the filed manual rate applicable to
the employer times the employer's current experience
modification factor, if applicable. The calculation may not
include any deductible credit, other than credits for the
$1,000 and $5,000 indemnity deductibles and the $250 and
$500 medical deductibles established pursuant to Title 24-A,
sections 2385 and 2385-A. For policies written using
retrospective rating, the premium base must be calculated in
accordance with this paragraph regardless of the actual
retrospective premium calculation.

 
The employer's premium base is subject to the final audit
requirements of the Bureau of Insurance Rule, Chapter 470.
If the audit results in a change in premium base, the amount
of the assessment must be adjusted accordingly.

 
C. For each fiscal year, the initial assessment percentage
must be determined by the board by May 1st of the prior
fiscal year. Insurance companies or associations must begin
collecting the initial assessment from all employers on July
1st of each year. In establishing the assessment
percentage, the board shall estimate the expected premium
base for the upcoming fiscal year based on the returns filed
under paragraph D and anticipated trends in the insurance
marketplace. The board shall consult with the Bureau of
Insurance and other knowledgeable sources to help determine
the trends. The board may adjust the assessment percentage
at any time but shall provide written notice to the affected
companies and associations at least 45 days prior to the
effective date of the adjustment. The board may not adjust
the assessment percentage more than 3 times in a fiscal
year. The adjusted assessment percentage must be applied
prospectively on policies with an effective date on or after
the effective date of the adjustment.

 
D. Every All assessments under this section are due and payable
by June 1st, except that an insurance company or association
subject to the assessment imposed by this

 
section or individual or group self-insurer with an
estimated annual payment of $50,000 or more based on
previous assessment returns may make payments in equal
quarterly installments on the first day of each June,
September, December and March. Each insurance company or
association electing quarterly payments must on or before
the last day of each January, each April, the 25th day of
each June and the last day of each October file with the
board on forms prescribed by the board a return for the
quarter ending the last day of the preceding month, except
the month of June, which is for the quarter ending June 30th
and remit payment of the assessment based upon the results
for the quarter reported. A final reconciled annual return
must be filed on or before September 15th covering the prior
fiscal year in which the previous assessment was levied.
The final return must be certified by the company's or
association's chief financial officer. Insurance companies
or associations with an annual assessment estimate of under
$50,000 shall pay the assessment on or before June 1st and
shall also file a quarterly and an annual return on forms
prescribed by the board. Each insurer and
individual or group self-insurer subject to assessment shall
file a return with the agency, on a form prescribed by the
agency, on or before the date the annual or quarterly
payment is due and remit payment of the assessment.
Affiliated insurers may aggregate their collection volume in
order to meet the $50,000 assessment threshold as long as
the affiliation is consistent with the standards defined in
Title 24-A, section 222. Those qualifying insurance
companies or associations that opt to consolidate their
quarterly payments and reports may do so only if each
individually licensed company or association is individually
reported within each consolidated return.

 
E.__The Department of Professional and Financial Regulation,
Bureau of Insurance shall report to the agency all newly
authorized workers' compensation insurers or individual or
group self-insurers in order to facilitate notification to
the new insurer or self-insurer of its obligations under
this section.

 
4. Assessment on self-insured employers. Every self-insured
employer approved pursuant to section 403 shall, for the purpose
of providing partial support and maintenance of the board, pay an
assessment on aggregate benefits paid by each member pursuant to
section 404, subsection 4. This assessment must be a dollar
amount.

 
5. Amounts of premiums and losses; distribution of
assessment. The Department of Professional and Financial

 
Regulation, Bureau of Insurance shall provide to the board agency
the amounts of gross direct workers' compensation premiums
written by each insurance carrier company and the amounts of
aggregate benefits paid by each self-insurer individual and group
self-insurer in each calendar year on or before April 1st of each
the following year. Beginning with the assessment for the fiscal
year beginning July 1, 1995 and thereafter, the total assessment
must be distributed between insurance companies or associations
and self-insured employers in direct proportion to the pro rata
share of disabling cases attributable to each group for the most
recent calendar year for which data is are available. This
distribution of the assessment must be determined on a basis
consistent with the information reported by the Department of
Labor, Bureau of Labor Standards, Research and Statistics
Division in its annual Characteristics of Work-Related Injuries
and Illnesses in Maine publication, provided that any segment of
the market identified as "not-insured" be excluded from the
calculation of proportionate shares. In consultation with the
Director of Labor Standards, the board executive director shall
determine a date prior to the required assessment to establish
the distribution. Within each group, insurance companies must be
assessed in proportion to
their gross direct workers' compensation premium in the preceding
calendar year, and individual and group self-insurers must be
assessed in proportion to their aggregate benefits paid in the
preceding calendar year.__For the purposes of this subsection,
aggregate benefits paid by a self-insurer include all benefits
paid by any related entity that is recognized as a predecessor
self-insurer for purposes of membership in the Maine Self-
Insurance Guarantee Association pursuant to section 404,
subsection 2, paragraphs D and E.

 
6. Assessment levied. The assessments levied under this
section may not be designed to produce more than $6,000,000 in
revenues annually beginning in the 1995-96 fiscal year, more than
$6,600,000 annually beginning in the 1997-98 fiscal year or more
than $6,735,000 beginning in the 1999-00 fiscal year, except that
in the 2001-02 fiscal year the assessment may not be designed to
produce more than $7,035,000. Assessments collected that exceed
$6,000,000 beginning in the 1995-96 fiscal year, $6,600,000
beginning in the 1997-98 fiscal year or $6,735,000 beginning in
the 1999-00 fiscal year or $7,035,000 in fiscal year 2001-02 by a
margin of more than 10% must be refunded to those who paid the
assessment. Any amount collected above the board's allocated
budget and within the 10% margin must be used to create a reserve
of up to 1/4 of the board's annual budget. Any collected amounts
or savings above the allowed reserve must be used to reduce the
assessment for the following fiscal year. The board shall
determine the assessments prior to May 1st and shall assess each
insurance company or association and self-insured employer its
pro rata share for expenditures during the fiscal year beginning

 
July 1st. Each self-insured employer shall pay the assessment on
or before June 1st. Each insurance company or association shall
pay the assessment in accordance with subsection 3.

 
6-A. Calculation of assessment.__Beginning with the assessment
levied in 2003 for fiscal year 2003-04, on or before May 1st of
each year, the executive director shall determine the aggregate
assessment to be levied under this section for the coming fiscal
year and shall send an invoice to each insurance company and each
individual and group self-insurer for its share of the
assessment.__The annual aggregate assessment may not exceed
$8,600,000 and when added to the projected fund balance as of the
beginning of the fiscal year may not exceed the agency's
allocated budget for the fiscal year, or the Governor's
recommended budget in the event that there is not a legislatively
approved budget by April 20th, by more than 10%.

 
7. Insurance company or association collections. Insurance
companies or associations shall bill and collect assessments
under this section on insured employers. The assessments must be
separately stated amounts on all premium notices and may not be
reported as premiums for any tax or regulatory purpose or for the
purpose of any other law. All collected payments must be
submitted to the board with the next quarterly payment. The
Bureau of Insurance shall report to the board all newly
authorized workers' compensation carriers in order to facilitate
notification to the new carrier of its obligations under this
section.

 
7-A. Insurance premiums.__An insurer may include within its
rates and premiums charged for workers' compensation insurance
policies an amount sufficient to cover the assessment the insurer
reasonably expects to be assessed pursuant to this section.

 
8. Violations. Any insurance company, association or self-
insured employer subject to this section that willfully fails to
pay an assessment in accordance with this section commits a civil
violation for which a forfeiture of not more than $500 may be
adjudged for each day following the due date for which payment is
not made.

 
9. Deposit of funds; investment. All revenues derived from
assessments levied against insurance companies, associations and
self-insured employers described in this section must be reported
and paid to the Treasurer of State and credited to the Workers'
Compensation Board Agency Administrative Fund. The Treasurer of
State may invest the funds in accordance with state law. All
interest must be paid to the fund.

 
10. Deposit of funds in Workers' Compensation Agency
Administrative Fund. The Treasurer of State shall deposit in the
Workers' Compensation Board Agency Administrative Fund funds
collected pursuant to section 152 152-A, subsection 14.

 
12. Audit. In consultation with the Bureau of Insurance, the
board agency may audit all returns and investigate any issues
relevant to the collection and payment of any assessment under
this section.

 
Sec. 53. 39-A MRSA §205, sub-§§2, 4 and 7, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
2. Time for payment. The first payment of compensation for
incapacity under section 212 or 213 is due and payable within 14
days after the employer has notice or knowledge of the injury or
death, on which date all compensation then accrued must be paid.
Subsequent incapacity payments must be made weekly and in a
timely fashion. Every insurance carrier, self-insured and group
self-insurer shall keep a record of all payments made under this
Act and of the time and manner of making the payments and shall
furnish reports, based upon these records, to the board agency as
it may
reasonably require.

 
4. Payment of medical bills. When there is no ongoing
dispute, if medical bills are not paid within 30 days after the
carrier has received notice of nonpayment by certified mail, $50
or the amount of the bill due, whichever is less, must be added
and paid to the Workers' Compensation Board Agency Administrative
Fund for each day over 30 days in which the medical bills are not
paid. Not more than $1,500 in total may be added pursuant to this
subsection.

 
7. Memorandum of payment. Upon making the first payment of
compensation for incapacity or upon making a payment of
compensation for impairment, the employer shall immediately
forward to the board agency a memorandum of payment on forms
prescribed by the board agency. This information must include,
at a minimum, the following:

 
A. The names of the employee, employer and insurance
carrier;

 
B. The date of the injury;

 
C. The names of the employee's other employers, if any, or
a statement that there is no multiple employment, if that is
the case; and

 
D. The initial weekly compensation rate.

 
Sec. 54. 39-A MRSA §205, sub-§9, ¶¶B and C, as enacted by PL 1991, c.
885, Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
B. In all circumstances other than the return to work or
increase in pay of the employee under paragraph A, if the
employer, insurer or group self-insurer determines that the
employee is not eligible for compensation under this Act,
the employer, insurer or group self-insurer may discontinue
or reduce benefits only in accordance with this paragraph.

 
(1) If no order or award of compensation or
compensation scheme has been entered, the employer,
insurer or group self-insurer may discontinue or reduce
benefits by sending a certificate by certified mail to
the employee and to the board agency, together with any
information on which the employer, insurer or group
self-insurer relied to support the discontinuance or
reduction. The employer may discontinue or reduce
benefits no earlier than 21 days from the date the
certificate was mailed to the employee. The
certificate must advise the employee of the date when
the employee's benefits will be discontinued or
reduced, as well as other information as prescribed by
the board agency, including the
employee's appeal rights.

 
(2) If an order or award of compensation or
compensation scheme has been entered, the employer,
insurer or group self-insurer shall petition the board
agency for an order to reduce or discontinue benefits
and may not reduce or discontinue benefits until the
matter has been finally resolved through the dispute
resolution procedures of this Act, any appeal
proceedings have been completed and an order of
reduction or discontinuance has been entered by the
board agency.

 
C. The employee may file a petition for review with the
executive director, contesting the employer's discontinuance
or reduction of compensation under this subsection.
Regardless of whether the employee files a petition prior to
the date of the discontinuance or reduction, benefits may be
discontinued or reduced as described in paragraph A or B.

 
Sec. 55. 39-A MRSA §205, sub-§9, ¶D, as amended by PL 1999, c. 354, §4,
is further amended to read:

 
D. The board executive director, within 21 days after the
employee filed files a petition for review, may shall decide
whether to enter an order providing for the continuation or
reinstatement of benefits pending a hearing on the petition.
The order must be based upon the information submitted under
this subsection by both the employee and the employer, and
the insurer or group self-insurer and the employee under
this subsection. Once a request for an order has been ruled
upon, the matter may not be referred to mediation, but must
be set for hearing.

 
Sec. 56. 39-A MRSA §205, sub-§9, ¶¶E and F, as enacted by PL 1991, c.
885, Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
E. In all cases under this subsection, the board agency
shall provide for an expedited procedure that must be
available upon request of any party.

 
F. If benefits have been discontinued or reduced pursuant
to paragraph A or B and the board agency, after hearing,
determines that benefits have been wrongfully withheld, the
board agency shall order payment of all benefits withheld
together with interest at the rate of 6% a year. The
employer shall pay this amount within 10 days of the order.

 
Sec. 57. 39-A MRSA §206, sub-§§3 to 6 and 8, as enacted by PL 1991, c.
885, Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
3. Limitation. Once an employee receives treatment from a
health care provider pursuant to subsection 2, the employee may
not change health care providers more than once without approval
from the employer or the board agency.

 
4. Specialist treatment. This section does not limit an
employee's right to be treated by a specialist when a referral is
made by the employee's health care provider. Once an employee
has begun treatment with the specialist, the employee may not
seek treatment from a different specialist in the same specialty
without prior approval from the employer or the board agency.

 
5. Chiropractic care. An employee sustaining a personal
injury arising out of and in the course of employment, provided
the injury relates to the scope of a chiropractor's practice, as
defined and regulated by law, is entitled to chiropractic
services as provided by Title 32, chapter 9. A duly licensed
chiropractor is competent to testify before the board agency.

 
6. Podiatric care. An employee sustaining personal injury
arising out of and in the course of employment, provided the
injury relates to the foot, is entitled to an examination,
diagnosis and treatment for that injury from a podiatrist who is
licensed in the State and who has been granted the degree of
Doctor of Podiatric Medicine by an accredited school of podiatry
recognized by the Council of Education of the American Podiatry
Association. This examination may include diagnostic x rays. Such
a podiatrist is competent to testify before the board agency.

 
8. Physical aids. The employer shall furnish artificial
limbs, eyes, teeth, eyeglasses, hearing aids, orthopedic devices
and other physical aids made necessary by the injury and shall
replace or renew them when necessary from wear and tear or
physical change of the employee. Damage and destruction to
artificial limbs, eyes, teeth, eyeglasses, hearing aids,
orthopedic devices and other physical aids in the course of and
arising out of employment is considered an injury for the
purposes of this Act. In case such physical aids in use by the
employee at the time of the injury are themselves injured or
destroyed, the board in its executive director or a hearing
officer has the discretion may to require that they the physical
aids be repaired or replaced by the employer.

 
Sec. 58. 39-A MRSA §206, sub-§§12, 14 and 15, as enacted by PL 1991, c.
885, Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
12. Petition. When there is any disagreement as to the
proper costs of the services or aids, the periods during which
they must be furnished, or the apportionment of the costs among
the
parties, any interested person may file a petition with the board
agency for the determination of the issues.

 
14. Employer not liable. An employer is not liable under
this Act for charges for health care services to an injured
employee in excess of those established under section 209, except
upon petition as provided. The board agency shall allow charges
in excess of those provided under section 209 against the
employer if the provider satisfactorily demonstrates to the board
agency that the services were extraordinary or that the provider
incurred extraordinary costs in treating the employee as compared
to those reasonably contemplated for the services provided.

 
15. Forms; compliance. The Superintendent of Insurance shall
prescribe medical and health care expense forms for the purpose
of collecting information as required by Title 24-A, section
2384-B. In the event the provider fails to properly complete and
submit the prescribed form or to follow any fee schedule approved
by the board, the insurer or self-insurer may

 
withhold payment of medical and health care fees and the insurer
or self-insurer is not required to file a notice of controversy
but may simply notify the provider of the failure. In the case of
a dispute, any interested party may petition the board agency to
resolve the dispute.

 
Sec. 59. 39-A MRSA §207, first ¶, as amended by PL 2001, c. 278, §1, is
further amended to read:

 
An employee being treated by a health care provider of the
employee's own choice shall, after an injury and at all
reasonable times during the continuance of disability if so
requested by the employer, submit to an examination by a
physician, surgeon or chiropractor authorized to practice as such
under the laws of this State, to be selected and paid by the
employer. The physician, surgeon or chiropractor must have an
active practice of treating patients. For purposes of this
section, "active practice" may be demonstrated by having active
clinical privileges at a hospital. A physician or surgeon must
be certified in the field of practice that treats the type of
injury complained of by the employee. Certification must be by a
board recognized by the American Board of Medical Specialties or
the American Osteopathic Association or their successor
organizations. A chiropractor licensed by the Board of
Chiropractic Licensure, who has an active practice of treating
patients may provide a 2nd opinion when the initial opinion was
given by a chiropractor. Once an employer selects a health care
provider to examine an employee, the employer may not request
that the employee be examined by more than one other health care
provider, other than an independent medical examiner appointed
pursuant to section 312, without prior approval from the employee
or a hearing officer. This provision does not limit an
employer's right to request that the employee be examined by a
specialist upon referral by the health care provider. Once the
employee is examined by the specialist, the employer may not
request that the employee be examined by a different specialist
in the same specialty, other than an independent medical examiner
appointed pursuant to section 312, without prior approval from
the employee or the board agency. The employee has the right to
have a physician, surgeon or chiropractor of the employee's own
selection present at such an examination, whose costs are paid by
the employer. The employer shall give the employee notice of this
right at the time the employer requests an examination.

 
Sec. 60. 39-A MRSA §207, last ¶, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
If any employee refuses or neglects to submit to any
reasonable examination provided for in this Act, or in any way
obstructs any such examination, or if the employee declines a

 
service that the employer is required to provide under this Act,
then such employee's rights to compensation are forfeited during
the period of the infractions if the board agency finds that
there is adequate cause to do so.

 
Sec. 61. 39-A MRSA §208, sub-§2, ¶¶A, B and F, as enacted by PL 1991, c.
885, Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
A. Except for claims for medical benefits only, within 5
business days from the completion of a medical examination
or within 5 business days from the date notice of injury is
given to the employer, whichever is later, the health care
provider treating the employee shall forward to the employer
and the employee a diagnostic medical report, on forms
prescribed by the board agency, for the injury for which
compensation is being claimed. The report must include the
employee's work capacity, likely duration of incapacity,
return to work suitability and treatment required. The
board agency may assess penalties up to $500 per violation
on health care providers who fail to comply with the 5-day
requirement of this subsection.

 
B. If ongoing medical treatment is being provided, every 30
days the employee's health care provider shall forward to
the employer and the employee a diagnostic medical report on
forms prescribed by the board agency. An employer may
request, at any time, medical information concerning the
condition of the employee for which compensation is sought.
The health care provider shall respond within 10 business
days from receipt of the request.

 
F. An insurer or self-insurer may withhold payment of fees
for the submission of any required reports of treatment to
any provider who fails to submit the reports on the forms
prescribed by the board agency and within the time limits
provided. The insurer or self-insurer is not required to
file a notice of controversy under these circumstances, but
must notify the provider that payment is being withheld due
to the failure to use prescribed forms or to submit the
reports in a timely fashion. In the case of dispute, any
interested party may petition the board agency to resolve
the dispute.

 
Sec. 62. 39-A MRSA §209, sub-§3, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
3. Limitation on reimbursement. In order to qualify for
reimbursement for health care services provided to employees
under this Title, health care providers providing individual

 
health care services and courses of treatment may not charge more
for the services or courses of treatment for employees than is
charged to private 3rd-party payors for similar services or
courses of treatment. An employer is not responsible for charges
that are determined to be excessive or treatment determined to be
inappropriate by an independent medical examiner appointed
pursuant to section 312 or by the insurance carrier, self-insurer
or group self-insurer pursuant to section 210, subsection 7 or
the board agency pursuant to section 210, subsection 8.

 
Sec. 63. 39-A MRSA §210, sub-§§3 to 5, 7 and 8, as enacted by PL 1991, c.
885, Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
3. Review. Utilization review must be performed by an
insurance carrier, self-insurer or group self-insurer pursuant to
a system established by the board agency that identifies the
range of utilization of health care and health services.

 
4. Certification of insurance carrier. An insurance carrier
may perform utilization review only if it has obtained
certification from the executive director that the insurance
carrier complies with the criteria or standards established by
the board must be certified by the board pursuant to this
section.

 
5. Consent of health care provider. By accepting payment
under this chapter, a health facility or health care provider is
deemed to have consented to submitting necessary records and
other information concerning any health care or health services
provided for utilization review pursuant to this section and to
have agreed to comply with any decision of the board agency
pursuant to this section.

 
7. Excessive charges, unjustified treatment. If an insurance
carrier, self-insurer or group self-insurer determines that a
health facility or health care provider has made any excessive
charges or required unjustified treatment, hospitalization or
visits, the health facility or health care provider may not
receive payment under this chapter from the insurance carrier,
self-insurer or group self-insurer for the excessive fees or
unjustified treatment, hospitalization or visits, and is liable
to return to the insurance carrier any such fees or charges
already collected. The board agency may review the records and
medical bills of any health facility or health care provider with
regard to a claim that an insurance carrier, self-insurer or
group self-insurer has determined is not in compliance with the
schedule of charges or requires unjustified treatment,
hospitalization or office visits.

 
8. Inappropriate services. If an insurance carrier
determines that a health facility or health care provider
improperly overutilized or otherwise rendered or ordered
inappropriate health care or health services, or that the cost of
the care or services was inappropriate, the health facility or
health care provider may appeal to the board agency regarding
that determination pursuant to procedures provided for under the
system of utilization review.

 
Sec. 64. 39-A MRSA §210, sub-§9, as amended by PL 1993, c. 261, §1, is
further amended to read:

 
9. Penalties. Any health facility or health care provider
that knowingly submits false or misleading records or other
information to an insurance carrier, self-insurer or group self-
insurer or the board agency is guilty of a Class D crime.

 
Sec. 65. 39-A MRSA §213, sub-§2, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
2. Threshold adjustment. Effective January 1, 1998 and every
other January 1st thereafter, the board, using an independent
actuarial review based upon actuarially sound data and
methodology, must adjust the 15% impairment threshold established
in subsection 1 so that 25% of all cases with permanent
impairment will be expected to exceed the threshold and 75% of
all cases with permanent impairment will be expected to be less
than the threshold. The actuarial review must include all cases
receiving permanent impairment ratings on or after January 1,
1993, irrespective of date of injury, but may utilize a cutoff
date of 90 days prior to each adjustment date to permit the
collection and analysis of data. The data must be adjusted to
reflect ultimate loss development. In order to ensure the
accuracy of the data, the board shall require that all cases
involving permanent injury, including those settled pursuant to
section 352, include an impairment rating performed in accordance
with the guidelines
adopted by the board and either agreed to by the parties or
determined by the board agency. Each adjusted threshold is
applicable to all cases with dates of injury on or after the date
of adjustment and prior to the date of the next adjustment.

 
Sec. 66. 39-A MRSA §214, sub-§4, as amended by PL 1995, c. 560, Pt. G,
§24 and affected by §29, is further amended to read:

 
4. Notice of refusal; termination of benefits. The Bureau of
Employment Services shall notify the board agency in writing of
the name of any employee who refuses any bona fide offer of
reasonable employment. Upon receiving such notification to the
board, the board executive director shall notify the insurance

 
carrier or self-insurer who, which shall terminate the benefits
of the employee pursuant to subsection 1, paragraph A.

 
Sec. 67. 39-A MRSA §215, sub-§1, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
1. Death of employee. If death results from the injury of an
employee, the employer shall pay or cause to be paid to the
dependents of the employee who were wholly dependent upon the
employee's earnings for support at the time of the injury, a
weekly payment equal to 80% of the employee's after-tax average
weekly wage, but not more than the maximum benefit under section
211, for a period of 500 weeks from the date of death. If the
employee leaves dependents only partially dependent upon the
employee's earnings for support at the time of injury, the
employer shall pay weekly compensation equal to the same
proportion of the weekly payments for the benefit of persons
wholly dependent, as 80% of the amount contributed by the
employee to such partial dependents bears to the annual earnings
of the deceased at the time of injury. If, at the expiration of
the 500-week period, any wholly or partially dependent person is
less than 18 years of age, the employer shall continue to pay or
cause to be paid the weekly compensation until that person
reaches the age of 18.

 
If a dependent spouse becomes a dependent of another person, the
payments must cease upon the payment to the spouse of the balance
of the compensation to which the spouse would otherwise have been
entitled but in no event to exceed the sum of $500.00. The
remaining weeks of compensation, if any, are payable to those
persons either wholly or partially dependent upon the employee
for support at the employee's death. The board agency shall
determine the amount of compensation or portion thereof that is
payable weekly to the wholly or partially dependent person.
When, at the expiration of the 500-week period, any wholly or
partially dependent person is less than 18 years of age, the
employer shall continue to pay or cause to be paid the weekly
compensation, until that person reaches the age of 18. The
payment of compensation
to any dependent child after the expiration of the 500-week
period ceases when the child reaches the age of 18 years, if at
the age of 18 years the child is neither physically nor mentally
incapacitated from earning, or when the child reaches the age of
16 years and thereafter is self-supporting for 6 months. If the
child ceases to be self-supporting thereafter, the dependency
must be reinstated. As long as any of the 500 weeks of
compensation remain, that compensation is payable to the person
either wholly or partially dependent upon the deceased employee
for support at the time of the employee's death, with the
exception of a dependent spouse who becomes a dependent of
another.

 
Sec. 68. 39-A MRSA §215, sub-§2, ¶B, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, is amended to read:

 
B. If an application for benefits has been filed but has
not been decided by the board agency or is on appeal and the
employee dies from a cause unrelated to the employee's
injury, the proceedings may be continued in the name of the
employee's personal representative. In such a case, any
benefits awarded are payable up to time of death and must be
paid to the same beneficiaries and in the same amounts as
would have been payable if the employee had suffered a
compensable injury resulting in death.

 
Sec. 69. 39-A MRSA §217, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§217. Employment rehabilitation

 
When as a result of injury the employee is unable to perform
work for which the employee has previous training or experience,
the employee is entitled to such employment rehabilitation
services, including retraining and job placement, as reasonably
necessary to restore the employee to suitable employment.

 
1. Services. If employment rehabilitation services are not
voluntarily offered and accepted, the board on its own motion at
the initiative of the agency or upon application of the employee,
carrier or employer, after affording the parties an opportunity
to be heard provide input, the agency may refer the employee to a
board-approved an agency-approved facility for evaluation of the
need for and kind of service, treatment or training necessary and
appropriate to return the employee to suitable employment.

 
2. Plan ordered. Upon receipt of an evaluation report
pursuant to subsection 1, if the board executive director finds
that the proposed plan complies with this Act and that the
implementation of the proposed plan is likely to return the
injured employee to
suitable employment at a reasonable cost, it the executive
director may order the implementation of the plan.
Implementation costs of a plan ordered under this subsection must
be paid from the Employment Rehabilitation Fund as provided in
section 355, subsection 7. The board's A determination under
this subsection is final.

 
3. Order of implementation costs recovery. If an injured
employee returns to suitable employment after completing a
rehabilitation plan ordered under subsection 2, the board
executive director shall order the employer who refused to agree

 
to implement the plan to pay reimbursement to the Employment
Rehabilitation Fund as provided in section 355, subsection 7.

 
4. Additional payments. The board executive director may
order that any employee participating in employment
rehabilitation receive additional payments for transportation or
any extra and necessary expenses during the period and arising
out of the employee's program of employment rehabilitation.

 
5. Limitation. Employment rehabilitation training, treatment
or service may not extend for a period of more than 52 weeks
except in cases when, by special order, the board executive
director extends the period up to an additional 52 weeks.

 
6. Loss of or reduction in benefits. If an employee
unjustifiably refuses to accept rehabilitation pursuant to an
order of the board issued under this section, the board executive
director shall order a loss or reduction of compensation in an
amount determined by the board executive director for each week
of the period of refusal, except for specific compensation
payable under section 212, subsection 3.

 
7. Hearing. If a dispute arises between the parties
concerning application of any of the provisions of subsections 1
to 6, any of the parties may apply to the executive director for
a hearing before the board in accordance with section 315.

 
Sec. 70. 39-A MRSA §218, first ¶, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is repealed.

 
Sec. 71. 39-A MRSA §218, sub-§2, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
2. Reasonable accommodation required. In order to facilitate
the placement of an injured employee as required under this
section, the employer must make reasonable accommodations for the
physical condition of the employee unless the employer can
demonstrate that no reasonable accommodation exists or that the
accommodation
would impose an undue hardship on the employer. In determining
whether undue hardship exists, the board agency shall consider:

 
A. The size of the employer's business;

 
B. The number of employees employed by the employer;

 
C. The nature of the employer's operations; and

 
D. Any other relevant factors.

 
Sec. 72. 39-A MRSA §218, sub-§6, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
6. Right to file petition; burden of proof. Controversies
arising under this section may be resolved through a petition
filed in accordance with section 307. The petitioning party has
the burden of proof on all issues regarding claims under this
section except that the employer always retains the burden of
proof regarding the availability or nonavailability of work.

 
Sec. 73. 39-A MRSA §220, sub-§2, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
2. Notification. Before approving or awarding any
compensation as limited in subsection 1, the board agency shall
request that the Department of Labor:

 
A. Inform the board agency as to whether the claimant has
received since the date of injury or is currently receiving
unemployment benefits;

 
B. Notify the board agency in the event that the claimant
subsequently applies for and receives unemployment benefits;
and

 
C. Notify the board agency whenever the claimant ceases to
receive unemployment benefits.

 
When the Department of Labor so notifies the board agency, the
board agency shall notify the employer and employee, advise them
of both the requirements of this section and the difference the
employer must make in the employee's compensation. Upon receipt
of this information, the employer shall appropriately decrease
the compensation or, if the claimant has ceased to receive
unemployment benefits, appropriately increase the compensation.

 
Sec. 74. 39-A MRSA §221, sub-§4, as enacted by PL 1991, c. 885, Pt. A,
§8 and affected by §§9 to 11, is amended to read:

 
4. Notification and release of social security benefit
information. The board shall adopt rules to provide for
notification by an employer to an employee of possible
eligibility for social security benefits and the requirements for
establishing proof of application for those benefits.
Notification must be promptly mailed to the employee after the
date on which by reason of age the employee may be entitled to
social security benefits. A copy of the notification of possible
eligibility must be filed with the board agency by the employer.
Within 30 days after receipt of the notification of possible
employee eligibility the employee shall:

 
A. Make application for social security benefits;

 
B. Provide the employer or carrier with proof of that
application; and

 
C. Provide the employer or carrier with an authority for
release of information which that may be used by the
employer to obtain necessary benefit entitlement and amount
information from the social security administration.

 
The authority for release of information is effective for one
year.

 
Sec. 75. 39-A MRSA §221, sub-§§7 and 9, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
7. Failure to provide release or application. If the employee
fails to provide the proof of application or the authority for
release of information required in subsection 4 or fails to
provide the authority for release of information required in
subsection 5 or 6, the employer may, with the approval of the
board agency, discontinue the compensation benefits payable to
the employee under section 212 or 213 until the proof of
application and the authority for release of information is
provided. Compensation benefits withheld must be reimbursed to
the employee when the required proof of application, or the
authority for release of information, or both, has been provided.

 
9. Reports. The employer taking a credit or making a
reduction as provided in this section shall immediately report to
the board agency the amount of any credit or reduction and, as
requested by the board agency, furnish to the board satisfactory
proof of the basis for a credit reduction.

 
Sec. 76. 39-A MRSA §222, sub-§3, ¶¶A and B, as enacted by PL 1991, c.
885, Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
A. These rules must impose any requirements on employers or
health, disability or workers' compensation insurance
carriers that the superintendent finds necessary or
desirable to ease the financial burden on injured employees
whose workers' compensation claims are controverted and who
are awaiting board agency determinations on their claims.

 
B. The superintendent shall consult with the chair of the
board executive director in formulating and adopting these
rules.

 
Sec. 77. 39-A MRSA c. 7, sub-c. I is amended by repealing the
subchapter headnote and enacting in its place the following:

 
SUBCHAPTER I

 
AGENCY PROCEEDINGS

 
Sec. 78. 39-A MRSA §303, as amended by PL 1999, c. 354, §5, is
further amended to read:

 
§303. Reports to agency

 
When any employee has reported to an employer under this Act
any injury arising out of and in the course of the employee's
employment that has caused the employee to lose a day's work, or
when the employer has knowledge of any such injury, the employer
shall report the injury to the board agency within 7 days after
the employer receives notice or has knowledge of the injury. The
employer shall also report the average weekly wages or earnings
of the employee, as defined in section 102, subsection 4,
together with any other information required by the board agency,
within 30 days after the employer receives notice or has
knowledge of a claim for compensation under section 212, 213 or
215, unless a wage statement has previously been filed with the
board agency. A copy of the wage information must be mailed to
the employee. The employer shall report when the injured
employee resumes the employee's employment and the amount of the
employee's wages or earnings at that time. The employer shall
complete a first report of injury form for any injury that has
required the services of a health care provider within 7 days
after the employer receives notice or has knowledge of the
injury. The employer shall provide a copy of the form to the
injured employee and retain a copy for the employer's records but
is not obligated to submit the form to the board agency unless
the injury later causes the employee to lose a day's work.

 
Sec. 79. 39-A MRSA §§304 and 305, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, are amended to read:

 
§304. Agency notice

 
1. Inform employee. Immediately upon receipt of the
employer's report of injury required by section 303, the board
agency shall contact the employee and provide information
explaining the compensation system and the employee's rights.
The board agency shall advise the employee how to contact the

 
board agency for further assistance and shall provide that
assistance.

 
2. Notice to employer. The board agency shall notify the
employer when a mediation or formal hearing is scheduled, when a
notice of settlement is filed and when any other proceeding
regarding a claim of an employee of that employer is scheduled.

 
3. Notice by agency. Within 15 days of receipt of an
employer's report of injury, as required by section 303, unless
it has received a petition for award of compensation relating to
the injured employee, the board agency shall take reasonable
steps to notify the employee that, unless the employer disputes
the claim, the employer is required to pay compensation within
the time limits established in section 205; that a petition for
award may be filed; and that rights under this Act may not be
protected unless a petition of award or memorandum of payment is
on file with the board agency within 2 years of the injury.

 
§305. Petition for award; protective decree

 
In the event of a controversy as to the responsibility of an
employer for the payment of compensation, any party in interest
may file in the office of the board agency a petition for award
of compensation setting forth the names and residences of the
parties, the facts relating to the employment at the time of the
injury, the knowledge of the employer or notice of the occurrence
of the injury, the character and extent of the injury and the
claims of the petitioner with reference to the injury, together
with such other facts as may be necessary and proper for the
determination of the rights of the petitioner.

 
If, following an injury that causes no incapacity for work,
the employer and employee reach an agreement that the employee
has received a personal injury arising out of and in the course
of employment, a memorandum of such an agreement signed by the
parties may be filed in the office of the board agency. The
memorandum must set forth the names and residences of the
parties, the facts relating to the employment at the time of the
injury, the time,
place and cause of the injury, and the nature and extent of the
injury. Any member of the board or the executive director is
empowered, without the necessity of the filing of a petition for
award, to render a protective decree based on that memorandum.

 
Sec. 80. 39-A MRSA §306, sub-§3, as enacted by PL 1999, c. 354, §6 and
affected by §10, is amended to read:

 
3. Establishment of injury. If the occurrence of a work-
related injury is established by board agency decree,

 
mediation report or agreement of the parties without the payment
of benefits as provided in subsection 2, the period during which
an employee or other interested party may file a petition is 6
years from the date of that decree, report or agreement.

 
Sec. 81. 39-A MRSA §307, sub-§§1 and 4, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
1. Petition. Any interested party may seek a determination
of rights under this Act by filing with the board agency any
petition authorized under this Act.

 
4. Procedure. A petition filed under this section must be
referred by the board executive director to mediation, except as
otherwise expressly provided in this Act.

 
Sec. 82. 39-A MRSA §§308 and 309, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, are amended to read:

 
§308. Employment

 
1. Return to employment. Any person receiving compensation
under this Act who returns to employment or engages in new

 
employment after that person's injury shall file a written report
of that employment with the board agency and that person's
previous employer within 7 days of that person's return to work.
This report must include the identity of the employee, the
employee's employer and the amount of weekly wages or earnings
received or to be received by the employee. The board agency
shall send the employee notice of the employee's responsibility
to notify the board agency and the employer when the employee
returns to work and the employee's responsibility to submit the
reports required under this section.

 
2. Employment status reports. At the previous employer's
request, any person receiving compensation under this Act who has
not returned to that person's previous employment must submit
quarterly employment status reports to that employer. The report
is due 90 days after the date of injury, or after the filing of
the report under subsection 3, and every 90 days thereafter. The
report must be in a form prescribed by the board agency and must
indicate whether the employee has been employed, changed
employment or performed any services for compensation during the
previous 90 days, the nature of the employment or services, the
name and address of the employer or person for whom the services
were performed and any other information that the board agency by
rule may require. Any employer requesting a quarterly report
under this subsection must provide the employee with the
prescribed form at least 15 days prior to the date on which it is
due.

 
§309. Subpoenas; evidence; discovery

 
1. Subpoenas. Any board member or, the executive director or
a designee of the board or of the executive director may
administer oaths and any board member or designee of the board
may issue subpoenas for witnesses and subpoenas duces tecum to
compel the production of books, papers and photographs relating
to any questions in dispute before the board agency, any matters
involved in a hearing or an any audit conducted pursuant to
section 359. Witness fees in all proceedings under this Act are
the same as for witnesses before the Superior Court. When a
witness, subpoenaed and obliged to attend before the board or any
member or designee of the board agency, fails to do so without
reasonable excuse, the Superior Court or any Justice of the
Superior Court may, on application of the Attorney General made
at the written request of a hearing officer, the executive
director or a member of the board, compel obedience by attachment
proceedings for contempt as in the case of disobedience of the
requirements of a subpoena issued from that court or a refusal to
testify in the court.

 
2. Evidence. The board or its designee agency need not
observe the rules of evidence observed by courts, but shall
observe the rules of privilege recognized by law. The board or
its designee agency shall admit evidence if it is the kind of
evidence on which reasonable persons are accustomed to relying
rely in the conduct of serious affairs. The board or its
designee agency may exclude irrelevant or unduly repetitious
evidence.

 
3. Witnesses; discovery. All witnesses must be sworn. Sworn
written evidence may not be admitted unless the author is
available for cross-examination or subject to subpoena; except
that sworn statements by a medical doctor or osteopathic
physician relating to medical questions, by a psychologist
relating to psychological questions or by a chiropractor relating
to chiropractic questions are admissible in workers' compensation
hearings only if notice of the testimony to be used is given and
service of a copy of the letter or report is made on the opposing
counsel 14 days before the scheduled hearing.

 
Depositions or subpoenas of health care practitioners who have
submitted sworn written evidence are permitted only if the
hearing officer finds that the testimony is sufficiently
important to outweigh the delay in the proceeding.

 
The board agency may establish procedures for the prefiling of
summaries of the testimony of any witness in written form. In
all proceedings before the board or its designee agency,
discovery beyond that specified in this section is available only
upon application to the board presiding officer, which may who
has discretion to approve the application in the exercise of its
discretion.

 
4. Contempts before agency. A person may not, in proceedings
before the board agency, disobey or resist any lawful order,
process or writ; misbehave during a hearing or so near the place
of hearing as to obstruct the hearing; neglect to produce, after
having been ordered to do so, any pertinent document; or refuse
to appear after having been subpoenaed or, upon appearing, refuse
to be examined according to law.

 
If any person violates this subsection, the a board member, the
executive director or a hearing officer shall certify the facts
to a Justice of the Superior Court in the county where the
alleged offense occurred and the justice may serve or cause to be
served on that person an order requiring that person to appear
before the justice on a day certain to show cause why the person
should not be adjudged in contempt by reason of the facts so
certified. The justice shall, upon the appearance of that person,
in a summary manner, hear the evidence as to the acts complained
of and, if it is such as to warrant doing so, punish that person
in the same manner and to the same extent as for a contempt
committed before the justice, or commit that person on the same
conditions as if the doing of the forbidden act had occurred with
reference to the process of the Superior Court or in the presence
of the justice.

 
Sec. 83. 39-A MRSA §310, first ¶, as enacted by PL 1991, c. 885, Pt. A,
§§8 and affected by §§9 to 11, is amended to read:

 
Except for statements made in proceedings before the board
agency, a statement to any investigator or employer's
representative, of any kind, oral or written, recorded or
unrecorded, made by the injured employee is not admissible in
evidence or considered in any way in any proceeding under this
Act, except in accordance with this section.

 
Sec. 84. 39-A MRSA §312, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§312. Independent medical examiners

 
1. Examiner system. The board agency shall develop and
implement an independent medical examiner system consistent with
the requirements of this section. As part of this system, the
board agency shall, in the exercise of its discretion, create,
maintain and periodically validate a list of not more than 50
health care providers that it finds to be the most qualified and
to be highly experienced and competent in their specific fields
of expertise and in the treatment of work-related injuries to
serve as independent medical examiners from each of the health
care specialties that the board agency finds most commonly used
by injured employees. The board agency shall establish a fee
schedule for services rendered by independent medical examiners
and the board shall adopt any rules considered necessary to
effectuate the purposes of this section.

 
2. Duties. An independent medical examiner shall render
medical findings on the medical condition of an employee and
related issues as specified under this section. The independent
medical examiner in a case may not be the employee's treating
health care provider and may not have treated the employee with
respect to the injury for which the claim is being made or the
benefits are being paid. Nothing in this subsection precludes
the selection of a provider authorized to receive reimbursement
under section 206 to serve in the capacity of an independent
medical examiner. A physician who has examined an employee at
the request of an insurance company, employer or employee in
accordance with section 207 during the previous 52 weeks is not
eligible to serve as an independent medical examiner.

 
3. Appointment. If the parties to a dispute can not agree on
an independent medical examiner of their own choosing, the board
agency shall assign an independent medical examiner from the list
of qualified examiners to render medical findings in any dispute
relating to the medical condition of a claimant, including but
not limited to disputes that involve the employee's medical
condition, improvement or treatment, degree of impairment or
ability to return to work.

 
4. Rules. The board may adopt rules pertaining to the
procedures before the independent medical examiner, including the
parties' ability to propound questions relating to the medical
condition of the employee to be submitted to the independent
medical examiner. The parties shall submit any medical records
or other pertinent information to the independent medical
examiner. In addition to the review of records and information
submitted by the parties, the independent medical examiner may
examine the employee as often as the examiner determines
necessary to render medical findings on the questions propounded
by the parties.

 
5. Medical findings; fees. The independent medical examiner
shall submit a written report to the board agency, the employer
and the employee stating the examiner's medical findings on the
issues raised by that case and providing a description of
findings sufficient to explain the basis of those findings. It
is presumed that the employer and employee received the report 3
working days after mailing. The fee for the examination and
report must be paid by the employer.

 
6. Subsequent medical evidence. All subsequent medical
evidence from the treating health care provider must be forwarded
to the independent medical examiner no later than 14 days prior
to the hearing. The independent medical examiner must be
notified of the hearing and shall make a supplemental report if
the subsequent medical evidence affects the medical findings of
the independent medical examiner. If the independent medical
examiner prepares a supplemental report, the report must be
submitted to the board agency and the parties at least 3 days
prior to the hearing.

 
7. Weight. If the parties agree to a medical examiner, the
examiner's findings are binding. If the board agency assigns an
independent medical examiner, the board agency shall adopt the
medical findings of the independent medical examiner unless there
is clear and convincing evidence to the contrary in the record
that does not support the medical findings. Contrary evidence
does not include medical evidence not considered by the
independent medical examiner. The board agency shall state in
writing the reasons for not accepting the medical findings of the
independent medical examiner.

 
8. Immunity. Any health care provider acting without malice
and within the scope of the provider's duties as an independent
medical examiner is immune from civil liability for making any
report or other information available to the board agency or for
assisting in the origination, investigation or preparation of the
report or other information so provided.

 
9. Annual review. The board agency shall create a review
process to oversee on an annual basis the quality of performance
and the timeliness of the submission of medical findings by the
independent medical examiners.

 
Sec. 85. 39-A MRSA §313, sub-§1, as amended by PL 1999, c. 354, §7, is
further amended to read:

 
1. Procedure. Except as provided in section 205, subsection
9, paragraph D, upon filing of notice of controversy or other
indication of controversy, the matter must be referred by the
board executive director to mediation.

 
Sec. 86. 39-A MRSA §313, sub-§§3, 4 and 5, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
3. Conclusion. At the conclusion of mediation, the mediator
shall file a written report with the board executive director
stating the information required by section 305, 2nd paragraph
and the legal issues in dispute. If an agreement is reached, the
report must state the terms of the agreement and must be signed
by the parties and the mediator. If a full agreement is not
reached, the report must state the information required by
section 305, 2nd paragraph, any terms that are agreed on by the
parties and any facts and legal issues in dispute and the report
must be signed by the parties and the mediator.

 
4. Cooperation; sanctions. The parties shall cooperate with
the mediator assigned to the case. The assigned mediator shall
report to the board executive director the failure of a party to
cooperate or to produce requested material. The board executive
director may impose sanctions against a party who does not
cooperate or produce requested materials, including the
following:

 
A. Assessment of costs and attorney's fees;

 
B. Reductions of attorney's fees; or

 
C. If the party is the moving party, suspension of
proceedings until the party has cooperated or produced the
requested material.

 
5. Duties of employer or representative of the employee,
employer or insurer. The employer or representative of the
employee, employer or insurer who participates in mediation must
be familiar with the employee's claim and has authority to make
decisions regarding the claim. The board executive director may
assess a forfeiture in the amount of $100 against any employer or
representative of the employee, employer or insurer who
participates in mediation without full authority to make
decisions regarding the claim. If a representative of the
employer, insurer or employee participates in mediation or any
other proceeding of the board agency, the representative shall
notify the employer, insurer or employee of all actions by the
representative on behalf of the employer, insurer or employee and
any other actions at the proceeding.

 
Sec. 87. 39-A MRSA §314, sub-§§2 and 4, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
2. Testimony. Testimony must be taken under oath and a
record of the arbitration must be made. Any party, at that
party's expense, may provide for a written transcript of the
proceedings. The cost of any transcription ordered by the
arbitrator for the arbitrator's own use must be paid for by the
board agency.

 
4. Arbitration decision. The arbitrator shall render the
arbitration decision within 30 days after the close of the
arbitration or the receipt of briefs, if required. The decision
must be in writing, signed by the arbitrator and include a
written opinion stating the arbitrator's findings of fact and
conclusions of law. The decision must be filed with the board
executive director within 3 days of after entry of the decision
by the arbitrator.

 
Sec. 88. 39-A MRSA §314, sub-§7, as amended by PL 1995, c. 105, §1, is
further amended to read:

 
7. Fee; rules. The board shall by rule provide for the
amount of the fee to be paid to the arbitrator by the board
agency and establish administrative processes to review, adopt
and monitor arbitration plans.

 
Sec. 89. 39-A MRSA §315, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is repealed and the following is
enacted in its place:

 
§315.__Formal hearing

 
1.__Referral.__Upon the filing of the mediator's report
indicating that mediation has not resolved all issues in dispute,
the executive director shall fix a time for hearing upon at least
a 5-day notice given to all the parties or to the attorney of
record of each party and shall designate a hearing officer to
resolve the dispute.__All hearings must be held before a hearing
officer employed by the agency at such towns and cities
geographically distributed throughout the State as the agency
designates.

 
2.__Travel expenses.__If the designated place of hearing is
more than 10 miles from the place where the injury occurred, the
employer shall provide transportation or reimburse the employee
for reasonable mileage in traveling within the State to and from
the hearing. The amount allowed for travel is determined by the
agency and awarded separately in the decree.

 
3.__Expedited proceedings.__The agency shall provide for an
expedited process for scheduling and hearing matters involving
medical care or the right to benefits for total incapacity.

 
4.__Applicability of Maine Administrative Procedure Act.__The
Maine Administrative Procedure Act does not apply to proceedings
governed by this subchapter except to the extent provided in
rules adopted by the board.__Rules adopted pursuant to this
subsection are routine technical rules as defined in Title 5,
chapter 375, subchapter II-A.

 
Sec. 90. 39-A MRSA §316, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§316. Guardians and other representatives for minors and

 
incompetents

 
If an injured employee is a minor or is mentally incompetent
or, when death results from the injury, if any of the employee's
dependents entitled to compensation are minors or mentally
incompetent at the time when any right, privilege or election
accrues under this Act, the parent, guardian or next friend of
the minor or incompetent, or some disinterested person designated
by the board assigned hearing officer or the executive director,
may claim and exercise that right, privilege or election, or file
any petition or answer, on behalf of the minor or incompetent.
No limitation of time provided in this Act may run as long as the
minor or incompetent has no parent living or guardian.

 
If the board assigned hearing officer or the executive
director has reasonable grounds for believing that compensation
paid under this Act, either in weekly installments or in a lump
sum, will be squandered or wasted by the injured employee or the
employee's dependents, the board hearing officer or executive
director may designate in writing some disinterested person to
act as trustee for the injured employee or the dependents. The
trustee shall file an account at least once a year with the board
agency showing the amounts of receipts and expenditures in behalf
of the injured employee or the dependents.

 
Sec. 91. 39-A MRSA §317, as amended by PL 1997, c. 486, §6, is
further amended to read:

 
§317. Appearance by authorized officer, employee or advocate

 
The appearance before the board agency of an authorized
officer, employee, advocate or representative of a party in any
hearing, action or proceeding in which the party is participating
or desires to participate is not an unauthorized practice of law
and is not subject to any criminal sanction. If the appearance of
such an officer, employee, advocate or representative prevents
the efficient processing of any proceeding, the board, in its
assigned hearing officer, a board member or the executive
director has the
discretion, may to remove that person from representation of the
party.

 
Sec. 92. 39-A MRSA §318, as amended by PL 1999, c. 410, §2, is
further amended to read:

 
§318. Hearing and decision

 
The hearing officer shall hear those witnesses as may be
presented or, by agreement, the claims of both parties as to the
facts may be presented by affidavits. If the facts are not in
dispute, the parties may file with the hearing officer an agreed
statement of facts for a ruling on the applicable law. From the
evidence or statements furnished, the hearing officer shall in a
summary manner decide the merits of the controversy. The hearing
officer's decision must be filed in the office of the board
agency and a copy, attested by the clerk of the board executive
director, mailed promptly to all parties interested or to the
attorney of record of each party. The hearing officer's decision,
in the absence of fraud, on all questions of fact is final; but
if the hearing officer expressly finds that any party has or has
not sustained the party's burden of proof, that finding is
considered a conclusion of law and is reviewable in accordance
with section 322.

 
The hearing officer, upon motion by the petitioning party, may
include a finding in the decree that the employer's refusal to
pay the benefits at issue was not based on any rational grounds
developed between the claim and formal hearing. Upon such a
finding, the employer shall pay interest to the employee under
section 205, subsection 6 at a rate of 25% per annum from the
date each payment was due, instead of 10% per annum.

 
The hearing officer, upon the motion of a party made within 20
days after notice of the decision or upon its own motion, may
find the facts specially and state separately the conclusions of
law and file the appropriate decision if it differs from the
decision filed before the request was made. Those findings and
conclusions and the revised decision must be filed in the office
of the board and a copy, attested by the clerk of the board, must
be mailed promptly to all parties interested. The running of the
time for appeal is terminated by a timely motion made pursuant to
this section and the full time for appeal commences to run from
the filing of those findings and conclusions and the revised
decision.

 
Clerical mistakes in decrees, orders or other parts of the
record and errors arising from oversight or omission may be
corrected by the board at any time of its own initiative, at the
request of the hearing officer or on the motion of any party and
after notice to the parties. During the pendency of an appeal,
these mistakes may be corrected before the appeal is docketed in
the Law Court and
thereafter, while the appeal is pending, may be corrected with
leave of the Law Court.

 
Sec. 93. 39-A MRSA §319, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is repealed and the following is
enacted in its place:

 
§319.__Revision by hearing officer

 
1.__Findings of fact.__The hearing officer, upon the motion of
a party made within 20 days after notice of the decision or upon
the hearing officer's own motion, may find the facts specially
and state separately the conclusions of law and revise the
decision if it differs from the decision filed before the request
was made.

 
2.__Motion to reopen.__Upon motion of either party, the
hearing officer may reopen and review any compensation payment
scheme, award or decree on the grounds of newly discovered
evidence that by due diligence could not have been discovered
prior to the time the payment scheme was initiated or prior to
the hearing on which the award or decree was based, or for any
reason for which relief would be available under section 321.__
The motion must be filed within 30 days after the initiation of
the compensation payment scheme, award or decree.

 
3.__Order on motion.__The hearing officer promptly shall issue
a written order either denying the motion and reaffirming the
prior decision, or granting the motion and revising or
supplementing the decision.__The order, including any revised
decision or supplemental findings or conclusions, must be filed
in the office of the agency and a copy, attested by the executive
director, must be mailed promptly to all interested parties.__The
running of the time for appeal is terminated by a timely motion
made pursuant to this section and the full time for appeal
commences to run from the filing of the hearing officer's order.

 
4.__Correction of errors.__Clerical mistakes in decrees,
orders or other parts of the record and errors arising from
oversight or omission may be corrected by the hearing officer at
any time at the hearing officer's own initiative or on the motion
of any party and after notice to the parties.__During the
pendency of an appeal, these mistakes may be corrected before the
appeal is docketed in the Law Court; and thereafter, while the
appeal is pending mistakes may be corrected with leave of the Law
Court.

 
Sec. 94. 39-A MRSA §320, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is repealed and the following is
enacted in its place:

 
§320.__Review by board

 
Within 5 days after a decision is filed with the agency, the
assigned hearing officer may request that the board review a
decision of the hearing officer if the decision involves an issue
that is of significance to the operation of the workers'
compensation system.__There may not be a review of findings of
fact made by a hearing officer.

 
If review is requested under this section, the time for appeal
to the Law Court pursuant to section 322 is stayed and further
action may not be taken until a decision of the board has been
made.__If the board reviews a decision of a hearing officer, any
appeal must be from the decision of the board.__If the board
denies the request for review, that is a discretionary act not
subject to judicial review, and any appeal must be from the
decision of the hearing officer.

 
If the board votes within 30 days to accept the request for
review, the board shall conduct a review of the decision.__
Otherwise, the board shall promptly issue a written decision
denying review.__If the board grants review, it must be on the
record and on written briefs only.__After the review is complete,
the board shall issue a written decision affirming, reversing or
modifying the hearing officer's decision.__The decision of the
hearing officer must be affirmed if there is no majority vote for
any other action.__The board's decision must be filed in the
office of the agency and a copy, attested by the executive
director, mailed promptly to all parties interested or to the
attorney of record of each party.__The board may delegate any
stage of the review process under this section to a panel of
board members including equal numbers of representatives of labor
and management, which shall issue a recommendation to the full
board.

 
Sec. 95. 39-A MRSA §321, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§321. Reopening for mistake of fact or fraud

 
1. Agreements. Upon the petition of either party at any
time, the board agency may annul any agreement that has been
approved by the board agency if it finds that the agreement has
been entered into through mistake of fact by the petitioner or
through fraud. Except in the case of fraud on the part of the
employee, an employee is not barred by any time limit from filing
a petition to have the matters covered by the agreement
determined in accordance with this Act as though the agreement
had not been approved.

 
2. Compensation payment scheme. A party may petition the
board agency, within one year of after initiation of a payment
scheme, award or decree, to reopen any case in which fraud on the
part of the opposing party is alleged. If the board agency finds
that the petitioning party exercised due diligence in
investigating the initial claim and further finds that fraud
occurred, the board agency may reopen the case as to any issue
that may have been affected by the fraudulent act and the board
agency may terminate or modify an employer's obligation to make
payment upon a finding that fraud on the part of a party affected
the employer's obligation to make payment.

 
Except in the case of fraud on the part of the employee, an
employee is not barred by any time limit from filing a petition
to have any issues determined in accordance with this Act as
though the payment scheme had not been initiated.

 
Sec. 96. 39-A MRSA §322, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§322. Appeal from decision of hearing officer or board

 
1. Appeals. Any party in interest may present a copy of the
decision of a hearing officer or a decision of the board, if the
board has reviewed a decision pursuant to section 320, to the
clerk of the Law Court and to the executive director within 20
days after receipt of notice of the filing of the decision by the
hearing officer or the board. Within 20 days after the copy is
filed with the Law Court, the party seeking review by the Law
Court shall file a petition seeking appellate review with the Law
Court that sets forth a brief statement of the facts, the error
or errors of law that are alleged to exist and the legal
authority supporting the position of the appellant. Copies of
the petition also must be served on the executive director and on
the other parties to the proceeding.

 
2. Procedures. The Law Court shall establish and publish
procedures for the review of petitions for appellate review of
decisions of the board agency. If the board determines that
appellate review of a hearing officer's decision would promote
the purposes of this Act, the board may file a brief statement
with the Law Court in support of the petition.__The statement
must be served on all parties to the proceeding.

 
3. Discretionary appeal; action. Upon the approval of 3 or
more members of a panel consisting of no fewer than 5 Justices of
the Law Court, the petition for appellate review may be granted.
If the petition for appellate review is denied, the decision of
the board agency is final. The petition must be considered on
written
briefs only.

 
If the petition for appellate review is granted, the clerk of the
Law Court shall notify the parties of the briefing schedule
consistent with the Maine Rules of Civil Procedure and in all
respects the appeal before the Law Court must be treated as an
appeal in an action in which equitable relief has been sought,
except that there may be no appeal upon findings of fact. The
board has standing to file a brief as an amicus curiae. The Law
Court may, after due consideration, reverse, modify or affirm any
decision of the board agency.

 
Sec. 97. 39-A MRSA §323, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§323. Enforcement of agency decision

 
Any decision of the board agency is enforceable by the
Superior Court by any suitable process, including execution
against goods, chattel and real estate and proceedings for
contempt for willful failure or neglect to obey the orders or
decrees of the court or in any other manner that decrees for
equitable relief are enforced. Any party in interest may present
copies, certified by the clerk of the board executive director,
of any order or decision of the board agency or of any memorandum
of agreement approved by the board agency to the clerk of courts
for the county in which the injury occurred or, if the injury
occurred outside the State, to the clerk of courts for Kennebec
County. Any Justice of the Superior Court shall then render a
pro forma decision in accordance with the order, decision or
memorandum and cause all interested parties to be notified. The
decision has the same effect and all proceedings in relation to
the decision are the same as though rendered in an action in
which equitable relief is sought, duly heard and determined by
the court. The decision must be for enforcement of a board an
agency decision, order or agreement. Appeals from a board an
agency decision, order or agreement must be in accordance with
section 322.

 
Sec. 98. 39-A MRSA §324, sub-§§1, 2 and 4, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
§324. Compensation payments; penalty

 
1. Order or decision. The employer or insurance carrier
shall make compensation payments within 10 days after the receipt
of notice of an approved agreement for payment of compensation or
within 10 days after any order or decision of the board agency
awarding compensation. If the board agency enters a decision
awarding compensation and an appeal is filed with the Law Court
pursuant to section 322, payments may not be suspended while the
appeal is pending. The employer or insurer may recover from an
employee payments made pending appeal to the Law Court if and to
the extent that the Law Court has decided that the employee was
not entitled to the compensation paid. The board agency has full
jurisdiction to determine the amount of overpayment, if any, and
the amount and schedule of repayment, if any. The board agency,
in determining whether or not repayment should be made and the
extent and schedule of repayment, shall consider the financial
situation of the employee and the employee's family and may not
order repayment that would work hardship or injustice.

 
2. Failure to pay within time limits. An employer or
insurance carrier who fails to pay compensation, as provided in
this section, is penalized as follows.

 
A. Except as otherwise provided by section 205, if an
employer or insurance carrier fails to pay compensation as
provided in this section, the board agency shall assess
against the employer or insurance carrier a forfeiture of up
to $200 for each day of noncompliance. If the board agency
finds that the employer or insurance carrier was prevented
from complying with this section because of circumstances
beyond its control, no forfeiture may be assessed.

 
(1) The forfeiture for each day of noncompliance must
be divided as follows: Of each day's forfeiture amount,
the first $50 is paid to the employee to whom
compensation is due and the remainder must be paid to
the board agency and be credited to the Workers'
Compensation Board Agency Administrative Fund.

 
(2) If a forfeiture is assessed against any employer
or insurance carrier under this subsection on petition
by an employee, the employer or insurance carrier shall
pay reasonable costs and attorney's fees related to the
forfeiture, as determined by the board agency, to the
employee.

 
(3) Forfeitures assessed under this subsection may be
enforced by the Superior Court in the same manner as
provided in section 323.

 
B. Payment of any forfeiture assessed under this subsection
is not considered an element of loss for the purpose of
establishing rates for workers' compensation insurance.

 
4. Certificate. Notwithstanding any other provision of law
or rule of evidence, the certificate of the executive director,
under seal of the board, must be received in any court in this
State as
prima facie evidence of facts pertaining to insurance coverage
records contained in the certificate or within the documents
attached to the certificate.

 
Sec. 99. 39-A MRSA §325, sub-§§1 to 3, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
1. Costs and attorney's fees. Except as otherwise provided by
law, by the Maine Rules of Civil Procedure or by rule of court,
each party is responsible for the payment of the party's own
costs and attorney's fees. In the event of a disagreement as to
those costs or fees, an interested party may apply to the board
executive director for a hearing under section 315.

 
2. Restriction on attorney's fees. An attorney representing
an employee in a proceeding under this Act may receive a fee from
that client for an activity pursuant to the Act only as provided
in this section. The fees and payment of fees to all attorneys
for services provided to employees under this Act are subject to
the approval of the board agency. The board agency may approve
the payment of attorney's fees by the employee for services
provided to the employee pursuant to this Act. Any attorney who
violates this section must forfeit any fee in the case and is
liable in a court suit to pay damages to the client equal to 2
times the fee charged to that client.

 
3. Rules. The board shall adopt rules to prescribe maximum
attorney's fees and the manner in which the amount is determined
and paid by the employee. The maximum attorney's fees prescribed
by the board in a case tried to completion may not exceed 30% of
the benefits accrued, after deducting reasonable expenses
incurred on behalf of the employee, or be based on a weekly
benefit amount after coordination that is higher than 2/3 of the
state average weekly wage at the time of injury. The board may
by rule allow attorney's fees to be increased above or decreased
below the amount specified in the rule when in the discretion of
the board agency that action is determined to be appropriate.

 
Sec. 100. 39-A MRSA §329, as enacted by PL 1999, c. 202, §1, is
amended to read:

 
§329. Interpreter required

 
An employee whose native language is not English and who does
not understand the English language to the degree necessary to
reasonably understand and participate in proceedings that affect
the employee's rights is entitled to have an interpreter present
at all proceedings before the board or a hearing officer agency
relating to that employee's rights. The board agency shall
provide and pay the cost of the interpreter. To the extent
possible, the board agency shall seek advice from the Department
of Labor in locating appropriate interpreters to meet the needs
of employees in the workers' compensation system.

 
Sec. 101. 39-A MRSA §351, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§351. Nonresidents

 
If an employee receiving weekly payments under this Act ceases
to reside in the State or if the employee's residence at the time
of the injury is in another state, the board executive director
upon application of either party may, in its has the discretion,
having regard to the welfare of the employee and the convenience
of the employer, to authorize payments to be made monthly or
quarterly instead of weekly.

 
Sec. 102. 39-A MRSA §352, as amended by PL 1997, c. 654, §§2 and 3,
is further amended to read:

 
§352. Lump-sum settlements

 
1. Agreement. An insurer, self-insurer or self-insured group
and an employer and employee may by agreement discharge any
liability for compensation, in whole or in part, by the
employer's payment of an amount to the employee if:

 
A. The insurer, the employer, the employee or the
employee's dependents petition the board executive director
for an order commuting all payments for future benefits to a
lump sum;

 
B. Six months' time has elapsed from the date of an injury;
and

 
C. The provisions of this section have been met and the
agreement has been approved by the board executive director.

 
2. Policy. The board shall by rule adopt policies
establishing the circumstances under which lump-sum payments may
be approved under this section. The circumstances must be at
least as restrictive as those set forth in this section.

 
3. Review. Before approving any lump-sum settlement, the
board executive director shall review the following factors with
the employee:

 
A. The employee's rights under this Act and the effect a
lump-sum settlement would have on those rights, including,
if applicable, the effect of the release of an employer's
liability for future medical expenses;

 
B. The purpose for which the settlement is requested;

 
C. The employee's post-injury earnings and prospects,
considering all means of support, including the projected
income and financial security resulting from proposed
employment, self-employment or any business venture or
investment and the prudence of consulting with a financial
or other expert to review the likelihood of success of these
projects;

 
D. Any other information, including the age of the employee
and of the employee's dependents, that would bear upon
whether the settlement is in the best interest of the
claimant;

 
E. The existence of a child support debt of which
notification has been sent pursuant to Title 19-A, section
2360-A.

 
4. Procedure. The board executive director shall initiate
the review within 14 days of receipt of a request for a
settlement review. An employer is considered a party for the
purposes of this section.

 
5. Approval. The board executive director may not approve
any lump-sum settlement unless there is an agreement pursuant to
subsection 1 or, in the event the employer refuses to agree to
the settlement, the board executive director has reviewed the
proposed agreement and finds it to be in the best interests of
the parties, and unless:

 
A. The employee has fully participated in the review
process, except in circumstances amounting to good cause;

 
B. The board executive director finds the settlement to be
in the employee's best interest in light of the factors
reviewed with the employee under subsection 3; and

 
C. In the case of a lump-sum settlement that requires the
release of an employer's liability for future medical
expenses of the employee, the board executive director finds
that the parties would be unlikely to reach agreement on the
amount of the lump-sum payment without the release of
liability for future medical expenses.

 
6. Monitoring of lump-sum settlement recipients. The board
agency shall establish and maintain a program to monitor the
postsettlement employment experience of employees who settle
their claims pursuant to this section to help develop future
policy. The Department of Labor shall cooperate with the board
agency in the establishment and operation of this monitoring
program.

 
Sec. 103. 39-A MRSA §354, sub-§3, as amended by PL 1999, c. 354, §9,
is further amended to read:

 
3. Subrogation. Any insurer determined to be liable for
benefits under subsection 2 must be subrogated to the employee's
rights under this Act for all benefits the insurer has paid and
for which another insurer may be liable. Apportionment decisions
made under this subsection may not affect an employee's rights
and benefits under this Act. The board agency has jurisdiction
over proceedings to determine the apportionment of liability
among responsible insurers, which may be resolved by petition
pursuant to section 307. The executive director has the
discretion to set the matter for hearing without referral to
mediation.

 
Sec. 104. 39-A MRSA §354, sub-§4, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, is amended to read:

 
4. Consolidation. The board agency may consolidate some or
all proceedings arising out of multiple injuries.

 
Sec. 105. 39-A MRSA §355, first ¶, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, is amended to read:

 
If an employee who has completed a rehabilitation program
under section 217, whether implementation is approved or ordered
by the board agency, subsequently sustains a personal injury
arising out of and in the course of employment and that injury,
in combination with the prior injury, results in a reduction in
earning capacity that is substantially greater in duration or
degree, or both, than that which would have resulted from the
subsequent injury alone, taking into account the age, education,
employment opportunities and other factors related to the
employee, the employer at the time of the subsequent injury is
entitled to reimbursement from the Employment Rehabilitation
Fund, referred to in this section as the "fund," as provided in
this section.

 
Sec. 106. 39-A MRSA §355, sub-§1, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, is amended to read:

 
1. Fund administration and contributions. There is
established a special fund, known as the Employment
Rehabilitation Fund, for the sole purpose of making payments in
accordance with this Act. The fund is administered by the board
executive director. The
Treasurer of State is the custodian of the fund. All money and
securities in the fund must be held in trust by the Treasurer of
State for the purpose of making payments under this Act and are
not money or property for the general use of the State. The fund
does not lapse.

 
The Treasurer of State may disburse money from the fund only upon
written order of the board agency. The Treasurer of State shall
invest the money of the fund in accordance with law. Interest,
income and dividends from the investments must be credited to the
fund.

 
Sec. 107. 39-A MRSA §355, sub-§3, ¶B, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, is amended to read:

 
B. The board executive director shall order a reduction,
suspension or termination of reimbursement of an employer
under this section if the board executive director finds
that the employer has not made a bona fide effort to return
the employee to continuing suitable employment.

 
Sec. 108. 39-A MRSA §355, sub-§4, ¶A, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, is amended to read:

 
A. If insurers disagree on the apportionment of liability
in a case under this section, the matter must be considered
by the board executive director before an insurer may file a
petition under section 354. The board executive director
shall encourage agreement between the insurers and, if
agreement can not be achieved, shall make a recommendation
on the apportionment of liability.

 
Sec. 109. 39-A MRSA §355, sub-§6, ¶¶A to D, as enacted by PL 1991, c.
885, Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
A. The subsequent employer must file an application for a
wage credit by providing the board executive director,
within 2 weeks after the close of the first 90 days of
employment of the employee, with a statement of the total
direct wages, earnings or salary the employer paid to the
employee for the first 90 days of employment along with such
verification as may be required by rule of adopted by the
board. Within 2 weeks after the close of the first 180 days
of employment, the subsequent employer must provide to the
board executive director a supplemental report of the direct
wages, earnings and salary for the 2nd 90-day period, along
with the required verification.

 
B. The board executive director shall compute the wage
credit, which consists of a sum equal to 50% of the average
weekly direct wages, earnings or salary for the 90-day
period listed in the subsequent employer's application or
statement, but may not exceed the amount of workers'
compensation benefits that the employee did not receive
because of the employment but would have been entitled to
for the wage credit period, based on the average weekly
workers' compensation benefits during the most recent 60-day
period in which the employee did receive benefits preceding
the employee's hiring by the employer.

 
(1) On adequate verification of the application or
statement, the board executive director shall pay the
amount for each 90-day period in a lump sum to the
subsequent employer within 30 days of receiving the
application or statement.

 
(2) The board executive director shall bill these sums
to the insurer or self-insurer that was responsible for
payment of the compensation received by the employee
immediately before the employee's hiring by the
subsequent employer. When the sum is received from the
insurer or self-insurer, the board executive director
shall deposit it in the fund.

 
C. If the employment with the subsequent employer is
terminated by the employer without good cause before the
completion of 12 consecutive months of employment, the
subsequent employer shall return to the board executive
director all wage credits received by the employer for that
employee and all sums paid into the fund by the insurer or
self-insurer must be returned to that insurer or self-
insurer.

 
D. When the wage credit is paid from the fund to an
employer, the insurer or self-insurer who paid the sum into
the fund has no further obligation to pay any sums into the
fund for any future reemployment of that employee, except as
provided in paragraph E.

 
(1) Total wage credit payments under a plan may not
exceed a period of 180 days, not including periods
subject to refunds under paragraph C.

 
(2) The board executive director shall inform
subsequent employers of the number of days of wage
credits available, if it is less than 180 days.

 
Sec. 110. 39-A MRSA §355, sub-§§7 to 9, as enacted by PL 1991, c. 885,
Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
7. Plan implementation costs; payment; reimbursement. The
actual and direct costs of implementing plans ordered by the
board agency under section 217, subsection 2 must be paid from
the fund. Payments must be made directly to the rehabilitation
providers or other persons who provide services under the plan.
Upon an order of recovery of plan implementation costs under
section 217, subsection 3, the board executive director shall
assess the employer who refused to agree to implement the plan
under section 217 an amount equal to 180% of the costs paid from
the fund under this subsection. An employer may appeal that
contests the imposition or amount of this assessment to the board
may file a petition pursuant to section 307. The employee may
not be a party to this appeal proceeding.

 
8. Jurisdiction. The board agency has jurisdiction over all
claims brought against the fund. Claims that can not be resolved
informally must be referred for hearing pursuant to section 315.

 
A. The fund is not bound as to any question of law or fact
by reason of any award or any adjudication to which the fund
was not a party or in relation to which the fund was not
notified, at least 21 days prior to the award or
adjudication, that the fund might be subject to liability
for the injury or death of an employee.

 
B. An employer shall notify the board executive director of
any possible claim for subsequent injury reimbursement
against the fund as soon as practicable, but in no event
later than one year after the injury or death of an
employee. Failure to provide timely notice bars the claim.

 
9. Legal representation. The Attorney General shall provide
legal representation for any claim made under this section,
including the enforcement of an assessment made under subsection
7 or the defense of an employer's appeal of that assessment.

 
A. The reasonable expense of prosecution or defense by the
Attorney General of assessments to or claims against the
fund, subject to the approval of the board executive
director, are payable out of the fund.

 
B. The Attorney General may not prosecute an assessment
against the State or defend the fund against any claim
brought by the State. The board executive director may
hire, using money from the fund, private counsel for this
purpose.

 
Sec. 111. 39-A MRSA §355, sub-§14, ¶¶A, D and E, as enacted by PL 2001,
c. 448, §4, are amended to read:

 
A. The board executive director may levy an assessment when
the balance in the fund is insufficient to meet obligations
of the fund under this section. The assessment must be
levied on each insurer based on its actual paid losses
during the previous calendar year.

 
D. The State Tax Assessor or the State Tax Assessor's duly
authorized agent or, the board or the executive director,
for the purpose of determining the truth or falsity of any
statement or return made by the insurer, may:

 
(1) Enter any place of business of an insurer to
inspect any books or records of the insurer;

 
(2) Notwithstanding any other provision of law,
inspect any records or reports filed by an insurer with
the Superintendent of Insurance; and

 
(3) Delegate these powers to the Superintendent of
Insurance or the superintendent's deputies, agents or
employees.

 
E. Whenever any insurer fails to pay any assessment due
under this subsection within the time specified by the board
executive director, the Attorney General shall enforce
payment by civil action against that insurer for the amount
of the assessment in the Superior Court in and for the
county or the District Court in the division in which that
insurer has the insurer's place of business, or in the
Superior Court of Kennebec County.

 
Sec. 112. 39-A MRSA §355-B, sub-§9, as enacted by PL 2001, c. 448, §5,
is amended to read:

 
9. Agency proceedings. Neither the fund nor the committee
has standing or authority to participate directly or indirectly
in any proceeding before the board agency regarding the level or
duration of benefits payable to an employee.

 
Sec. 113. 39-A MRSA §355-C, sub-§§3 and 4, as enacted by PL 2001, c.
448, §5, are amended to read:

 
3. Determinations. The committee shall review requests for
reimbursement within 14 days of after receipt of the request or
within a longer period of time if mutually acceptable to the
parties. The committee shall issue a final determination,
designated as such, to each insurer or self-insurer that has
requested reimbursement. An insurer or self-insurer may petition
the board executive director for a hearing before a hearing
officer review of the committee's decision within 30 days after
the issuance of notice of the determination. If the executive
director is unable to resolve the dispute informally, the
executive director promptly shall refer the matter for hearing in
accordance with section 315. Review by the board agency is
limited to errors of law and abuse of discretion.

 
4. Effect of agency decrees. The fund and the committee are
bound to the same extent as the employee and insurer or self-
insurer by decrees of the board agency.

 
Sec. 114. 39-A MRSA §356, sub-§1-A, ¶¶C, D and E, as enacted by PL 2001,
c. 448, §6, are amended to read:

 
C. An assessment against insurers must be based on premiums
charged to employers pursuant to section 154, subsection 3,
paragraph B-1. The assessment insurance companies must be
stated as a percentage of each employer's premium base.
Insurers Insurance companies shall apply the percentage to
premiums collected beginning on July 1st. If a
supplementary assessment is levied, the committee shall
notify insurers insurance companies of the new percentage
and the insurers insurance companies shall apply the new
percentage to premiums written beginning on the 31st day
following notification.

 
(1) The total value of assessments collected from
insurers insurance companies pursuant to this section
paragraph must be credited to the fund. Each insurer
insurance company that collects workers' compensation
premiums or assessments shall file with the committee
on a form prescribed by the committee a return
certified by the insurer's insurance company's chief
financial officer specifying assessment collections
relating to the calendar quarter next preceding the
15th day of April, July, October and January of each
year in which an assessment is applicable. Affiliated
insurers insurance companies may consolidate payments
made to the fund if each carrier is licensed and
premium reports respecting that insurer insurance
company are individually reported within the
consolidated return. Payment of amounts collected
pursuant to this section must be remitted to the fund
at the time the premium return is filed with the
committee.

 
(1-A)__An employer's premium base for assessment
purposes is defined as payroll times the filed manual
rate applicable to the employer times the employer's
current experience modification factor, if applicable.__
The calculation may not include any deductible credit
other than credits for the $1,000 and $5,000 indemnity
deductibles and the $250 and $500 medical deductibles
established pursuant to Title 24-A, sections 2385 and
2385-A, respectively.__For policies written using
retrospective rating, the premium base must be
calculated in accordance with this paragraph regardless
of the actual retrospective premium calculation.__The
employer's premium base is subject to the final audit
requirements of Chapter 470 of the Bureau of Insurance
Rules.__If the audit results in a change in premium
base, the amount of the assessment must be adjusted
accordingly.

 
(2) The Department of Professional and Financial
Regulation, Bureau of Insurance shall report to the
board agency, the committee and any service agent all
newly authorized workers' compensation carriers in
order to facilitate notification to those carriers of
their obligation under this section.

 
(3) Any insurance carrier subject to this section that
willfully fails to pay an assessment in accordance with
this section commits a civil violation for which a
forfeiture of not more than $500 may be adjudged for
each day following the due date for which the payment
is not made.

 
D. Except for newly approved workers' compensation self-
insurers, each self-insurer must be assessed a dollar amount
based on the proportion that the self-insurer's aggregate
benefits paid as reported pursuant to section 154,
subsection 5 bears to the aggregate benefits paid by all
self-insurers as so reported. If a supplementary assessment
is levied, the committee shall notify self-insurers 30 days
prior to the date upon which the assessment is due.

 
(1) The total value of assessments collected from
self-insured employers under this section paragraph
must be credited to the fund. Each self-insurer shall
file with the committee on a form prescribed by the
committee a return certified by the self-insurer's
chief financial officer attesting to the accuracy of
the amount owed to the fund. Payment of the assessment
must be remitted to the fund at the time the return is
filed with the committee. The form and payment are due
on the later of July 1st and 30 days after the
committee levies the assessment.

 
(2) The Department of Professional and Financial
Regulation, Bureau of Insurance shall report to the
board agency, the committee and any service agent all
newly approved workers' compensation self-insurers in
order to facilitate notification to those self-insurers
of their obligation under this section. A newly
approved self-
insurer that has historically purchased a policy or
policies of workers' compensation covering workers'
compensation exposures in this State was not
continuously authorized to self-insure throughout the
preceding calendar year shall pay assessment to the
fund based on its current annual standard premium,
using the assessment percentage applicable to insurers
until the self-insurer has paid benefits for 12 months
insurance companies.

 
(3) A self-insurer subject to this section that
willfully fails to pay an assessment in accordance with
this section commits a civil violation for which a
forfeiture of not more than $500 may be adjudged for
each day following the due date for which the payment
is not made.

 
E. Rates and premiums charged for workers' compensation
policies may not be considered excessive if because a
surcharge calculated pursuant to this section is made to
recoup assessments paid to the fund. Any surcharge so made
must be specifically identified upon the policies or other
evidence of coverage. Such surcharges are not subject to
premium taxes.

 
Sec. 115. 39-A MRSA §356, sub-§6, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, is amended to read:

 
6. Civil action. Whenever any insurer fails to pay any
assessment due under this section within the time limit, the
Attorney General shall enforce payment by civil action against
that insurer for the amount of the assessment in the Superior
Court in and for the county or the District Court in the division
in which that insurer has the insurer's its place of business, or
in the Superior Court of in Kennebec County.

 
Sec. 116. 39-A MRSA §357, sub-§1, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, is amended to read:

 
1. Completion of forms. Every insurance company insuring
employers under this Act shall fill out any blanks and answer all
questions submitted that may relate to policies, premiums, amount
of compensation paid and such other information as the board
agency or the Superintendent of Insurance may determine
important, either for the proper administration of this Act or
for statistical purposes.

 
Sec. 117. 39-A MRSA §358-A, as amended by PL 1997, c. 649, §1, is
further amended to read:

 
§358-A. Reports and data collection

 
1. Workers' compensation system annual report. The board
executive director, with the approval of the board and in
consultation with the Superintendent of Insurance, and the
Director of the Bureau of Labor Standards within the Department
of Labor, referred to in this section as the "Director of the
Bureau of Labor Standards," shall submit an annual report to the
Governor and the joint standing committees of the Legislature
having jurisdiction over labor and banking and insurance matters
by February 15th of each year regarding the status of the
workers' compensation system. At a minimum, the report must
include an assessment of the board's agency's implementation of
the following provisions:

 
A. The number of individual cases monitored to ensure the
provision of benefits in accordance with law, pursuant to
section 152 152-A, subsection 10 11;

 
B. The number of cases monitored to ensure the payments are
initiated within the time limits of sections 205 and 324 and
the adequacy of compensation provided pursuant to section
153, subsection 1;

 
C. The number of investigations performed pursuant to
section 153, subsection 7;

 
D. The number of lump-sum settlements settlement cases
monitored and a summary of postsettlement employment
experience pursuant to section 352, subsection 6;

 
E. The number of audits performed and an assessment of
compliance with this Act based on audit results pursuant to
section 359, subsection 1;

 
F. The number of penalties assessed and the reasons for the
assessments pursuant to section 205, subsection 3; section
313, subsection 4; section 324, subsections 2 and 3; section
359, subsection 2; and section 360; and

 
G. The results of the monitoring program giving side-by-side
information compilations for the past 5 years pursuant to
section 359, subsection 3.

 
The report must contain specific data regarding compliance,
including benchmarks measuring individual insurer's, self-
insurer's, or 3rd-party administrator's insurers', self-
insurers', or 3rd-party administrators' compliance with the
provisions of this Act and any penalties assessed. Benchmarks
must be developed by the board executive director with input from
insurers, self-insurers and 3rd-party administrators and other
parties the board
executive director considers appropriate. The board executive
director shall also report on the utilization of troubleshooters,
advocates and, retained legal counsel and hearing officers, with
correlating outcomes.

 
2. Data collection and interpretation. The Director of the
Bureau of Labor Standards within the Department of Labor, the
Superintendent of Insurance and the board's executive director
shall meet at least 3 times a year with appropriate staff and
other state agencies to review the areas of data collection
pertaining to the workers' compensation system, as well as to
interpret and coordinate appropriate data collection programs to
carry out the purposes of this Act. The Director of the Bureau
of Labor Standards shall chair this group.

 
The Director of the Bureau of Labor Standards, the Superintendent
of Insurance and the board's executive director shall provide
jointly or individually any further occasional reports that they
consider necessary to the improved function and administration of
this Act and the occupational disease laws.

 
3. Occupational injuries and illnesses. The Director of the
Bureau of Labor Standards within the Department of Labor shall
provide an annual report concerning the number and character of
occupational injuries and illnesses and their effects, as
required under Title 26, section 42.

 
The board's executive director shall assist the Director of the
Bureau of Labor Standards to ensure that necessary information
regarding the administrative processes, costs and other factors
related to this Act and the occupational disease laws are
included in the report. The Commissioner of Human Services and
the Director of the Bureau of Health shall provide the Director
of the Bureau of Labor Standards with any information in their
possession related to occupational injuries and illnesses.

 
4. Loss costs data. The Superintendent of Insurance shall
provide the following information to the Director of the Bureau
of Labor Standards within the Department of Labor on an annual
basis:

 
A. A tabulation of premium and loss costs paid and incurred
on an accident-year basis regarding those insurance
companies authorized by the Bureau of Insurance to write
workers' compensation in the State; and

 
B. Similar data for self-insurance workers' compensation
plans regulated by the Bureau of Insurance.

 
5. Rehabilitation data. The board agency shall develop a
system for collecting rehabilitation data and provide any reports
considered necessary for the improved function and administration
of rehabilitation under this Act.

 
Sec. 118. 39-A MRSA §359, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§359. Audits; penalty; monitoring

 
1. Audits. The board agency shall audit claims, including
insurer, self-insurer and 3rd-party administrator claim files, on
an ongoing basis to determine whether insurers, self-insured
employers and 3rd-party administrators have met their obligations
under this Act and to identify the disputes that arose, the
reasons for the disputes, the method and manner of their
resolution, the costs incurred, the reasons for attorney
involvement and the services rendered by the attorneys.

 
If as a result of an examination and after providing the
opportunity for a hearing under the Maine Administrative
Procedure Act the board agency determines that any compensation,
interest, penalty or other obligation is due and unpaid to an
employee, dependent or service provider, the board agency shall
issue a notice of assessment detailing the amounts due and unpaid
in each case and shall order the amounts paid to the unpaid party
or parties.

 
2. Penalty. In addition to any other penalty assessment
permitted under this Act, the board agency may assess civil
penalties not to exceed $10,000 upon finding, after hearing, that
an employer, insurer or 3rd-party administrator for an employer
has engaged in a pattern of questionable claims-handling
techniques or repeated unreasonably contested claims. The board
agency shall certify its findings to the Superintendent of
Insurance, who shall take appropriate action so as to bring any
such practices to a halt. This certification by the board agency
is exempt from the provisions of the Maine Administrative
Procedure Act.

 
3. Monitoring. No later than July 1, 1993 the board agency
shall implement a monitoring program to evaluate and compare the
cost, utilization and performance of the workers' compensation
system for each calendar year beginning with 1988. The
information compiled must include the number of injuries
occurring and claims filed as compared to employment levels, the
type and cost of the benefits provided, attorney involvement and
litigation levels, and the long-term, postinjury economic status
of injured workers, as well as any other data that is actuarially
valid and can be utilized to accomplish the purposes of this Act,
including rulemaking and
recommending legislation.

 
Sec. 119. 39-A MRSA §360, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§360. Penalties

 
1. Reporting violations. The board agency may assess a civil
penalty not to exceed $100 for each violation on any person:

 
A. Who fails to file or complete any report or form
required by this Act or rules adopted under this Act; or

 
B. Who fails to file or complete such a report or form
within the time limits specified in this Act or rules
adopted under this Act.

 
2. General authority. The board agency may assess, after
hearing, a civil penalty in an amount not to exceed $1,000 for an
individual and $10,000 for a corporation, partnership or other
legal entity for any willful violation of this Act, fraud or
intentional misrepresentation. The board agency may also require
that person to repay any compensation received through a
violation of this Act, fraud or intentional misrepresentation or
to pay any compensation withheld through a violation of this Act,
fraud or misrepresentation, with interest at the rate of 10% per
year.

 
3. Appeal. Imposition of a penalty under this section is
deemed to be final agency action subject to appeal to the
Superior Court, as provided in Title 5, chapter 375, subchapter
VII. Notwithstanding Title 5, section 11004, execution of a
penalty assessed under this section is stayed during the pendency
of any appeal under this subsection. The Attorney General shall
represent the board agency in any appeal under this subsection or
the board agency may retain private counsel for that purpose.

 
4. Enforcement and collection. Penalties assessed under this
section are in addition to any other remedies available under
this Act and are enforceable by the Superior Court under section
323.

 
A. The Attorney General shall prosecute any action
necessary to recover penalties assessed under this section
or the board agency may retain private counsel for that
purpose.

 
B. If any person fails to pay any penalty assessed under
this section and enforcement by the Superior Court is
necessary:

 
(1) That person shall pay the costs of prosecuting the
action in Superior Court, including reasonable
attorney's fees; and

 
(2) If the failure to pay was without due cause, any
penalty assessed on that person under this section must
be doubled.

 
C. All penalties assessed under this section are payable to
the General Fund.

 
5. Not an element of loss. An insurance carrier's payment of
any penalty assessed under this section may not be considered an
element of loss for the purpose of establishing rates for
workers' compensation insurance.

 
Sec. 120. 39-A MRSA §361, as enacted by PL 1993, c. 145, §6, is
amended to read:

 
§361. Payment to the Workers' Compensation Agency Administrative

 
Fund

 
All penalties assessed under this Act are payable to the
Workers' Compensation Board Agency Administrative Fund, unless
otherwise provided by law. Upon certification by the board that
certain amounts in the Workers' Compensation Board Agency
Administrative Fund attributable to penalties assessed pursuant
to this Act are not required to support the activities of the
board agency, the Treasurer of State shall transfer funds in the
amount certified by the board to the General Fund.

 
Sec. 121. 39-A MRSA §401, sub-§4, as amended by PL 1999, c. 364, §6,
is further amended to read:

 
4. Liability of landowner. A landowner subject to this Act
who contracts to have wood harvested from the landowner's
property by a contractor who, as an employer, is subject to this
Act and who has not complied with the provisions of this section
and who does not comply with the provisions of this section prior
to the date of an injury or death for which a claim is made is
liable to pay to any person employed by the contractor in the
execution of the work any compensation under this Act that the
landowner would have been liable to pay if that person had been
immediately employed by the landowner.

 
A landowner is not liable for compensation if at the time the
landowner enters into the contract with the contractor, the
landowner applies for and receives a predetermination of the
independent status of the contractor as set forth in section 105,
the landowner requests and receives a certificate of independent
status, issued by the board executive director on an annual basis
to a contractor, certifying that the contractor harvests forest
products in a manner that would not make the contractor an
employee of the landowner or the landowner requests and receives
a certificate of insurance, issued by the contractor's insurance
carrier, certifying that the contractor has obtained the required
coverage and indicating the effective dates of the policy, and if
the landowner requests and receives at least annually similar
certificates indicating continuing coverage during the
performance of the work. A landowner who receives a
predetermination of the contractor's status as independent
contractor or a certificate of independent status is only
relieved of liability under this paragraph if the contract for
wood harvesting expressly states that the independent contractor
will not hire any employees to assist in the wood harvesting
without first providing the required certificate of insurance to
the landowner.

 
Notwithstanding section 105, subsection 1, paragraph A, a
predetermination under section 105 related only to a person
engaged in harvesting forest products is a conclusive presumption
that the determination is correct and section 105, subsection 2
does not apply to that determination. Each party involved in or
affected by the predetermination must be provided information on
the workers' compensation laws and the effect of independent
contractor status in relation to those laws. A predetermination
under section 105 related to a person engaged in harvesting
forest products is effective for one calendar year or the
duration of the contract, whichever is shorter.

 
A landowner required to pay compensation under this section is
entitled to be indemnified by the contractor and may recover the
amount paid in an action against that contractor. A landowner
may demand that the contractor enter into a written agreement to
reimburse the landowner for any loss incurred under this section
due to a claim filed for compensation and other benefits. The
employee is not entitled to recover at common law against the
landowner for any damages arising from such injury if the
employee takes compensation from that landowner.

 
Landowners willfully acting to circumvent the provisions of this
section by using coercion, intimidation, deceit or other means to
encourage persons who would otherwise be considered employees
within the meaning of this Act to pose as contractors for the
purpose of evading this section are liable subject to the
provisions of section 324, subsection 3. Nothing in this section
may be construed to prohibit an employee from becoming a
contractor subject to the provisions of section 102, subsection
13.

 
Sec. 122. 39-A MRSA §403, sub-§1, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, is amended to read:

 
1. Insuring under workers' compensation insurance policy. The
employer may comply with this section by insuring and keeping
insured the payment of such compensation and other benefits under
a workers' compensation insurance policy. The insurance company
shall file with the board agency notice, in the form required by
the board agency, of the issuance of any workers' compensation
policy to an employer. The insurance may not be cancelled within
the time limited in such policy for its expiration until at least
30 days after the insurance company mails to the board agency and
to the employer a notice of the cancellation of the insurance.
In the event that the employer has obtained a workers'
compensation policy from another insurance company, or has
otherwise secured compensation as provided in this section, and
such insurance or other security becomes effective prior to the
expiration of the 30-day notice period, cancellation takes effect
on the effective date of the other insurance or on receipt of
security.

 
Sec. 123. 39-A MRSA §403, sub-§3, as amended by PL 2001, c. 44, §11
and affected by §14, is further amended by amending the first
paragraph to read:

 
3. Proof of solvency and financial ability to pay; trust.
The employer may comply with this section by furnishing
satisfactory proof to the Superintendent of Insurance of solvency
and financial ability to pay the compensation and benefits, and
depositing cash, satisfactory securities, irrevocable standby
letters of credit issued by a qualified financial institution or
a surety bond with the board agency, in such sum as the
superintendent may determine pursuant to subsection 8, the bond
to run to the Treasurer of State and to be conditional upon the
faithful performance of this Act relating to the payment of
compensation and benefits to any injured employee. In case of
cash or securities being deposited, the cash or securities must
be placed in an account at interest by the Treasurer of State,
and the accumulation of interest on the cash or securities so
deposited must be credited to the account and may not be paid to
the employer to the extent that the interest is required to
support any present value discounting in the determination of the
amount of the deposit. Any security deposit must be held by the
Treasurer of State in trust for the benefit of the self-insurer's
employees for the purposes of making payments under this Act. If
the superintendent determines that the self-insurer has
experienced a deterioration in financial condition that adversely
affects the self-insurer's ability to pay obligations under this
Act, the security amount may be in excess of the minimum amount
required by this Title.

 
Sec. 124. 39-A MRSA §403, sub-§3, ¶B, as repealed and replaced by PL
1995, c. 398, §2, is amended to read:

 
B. The Superintendent of Insurance shall prescribe the form
of the surety bond that may be used to satisfy, in whole or
in part, the self-insurer's responsibility under this
section to post security. The bond must be continuous, be
subject to nonrenewal only upon not less than 60 days notice
to the superintendent, cover payment of all present and
future liabilities incurred under this Act while the bond is
in force and cover payments that become due while the bond
is in force that are attributable to injuries incurred in
prior periods and otherwise unsecured by cash, irrevocable
standby letters of credit or acceptable securities. A bond
must be held until all payments secured by the bond have
been made or until the bond has been replaced by other
eligible security approved by the superintendent that covers
all outstanding liabilities. Payments The bond must provide
that payments under the bond are due within 30 days after
notice has been given to the surety by the board executive
director that the principal has failed to make a payment
required under the terms of an award, agreement or governing
law. A trust established to satisfy the requirements of
this section may not be funded by a surety bond.

 
Sec. 125. 39-A MRSA §403, sub-§3, ¶¶F and G, as enacted by PL 1995, c.
398, §2, are amended to read:

 
F. An employer may be eligible for approved self-insurance
status pursuant to this Act if the employer submits a
written guarantee of the obligations incurred pursuant to
this Act, the guarantee to be issued by a United States or
Canadian corporation that is a member of an affiliated group
of which the employer is a member, and which corporation is
solvent and demonstrates an ability to pay the compensation
and benefits, and the guarantee is in a form acceptable to
the Superintendent of Insurance. The guarantor shall
provide audited annual financial statements and such other
information as the superintendent may require, including
quarterly financial statements, and the employer shall
provide a cash deposit, satisfactory securities, irrevocable
standby letters of credit issued by a qualified financial
institution or a surety bond as otherwise required by this
Act in an amount not less than $100,000. The guarantor is
deemed to have submitted to the jurisdiction of the board
agency and the courts of this State for purposes of
enforcing the guarantee. The guarantor, in all respects, is
bound by and subject to the orders, findings, decisions or
awards rendered against the employer for payment of
compensation and any penalties or forfeitures provided under
this Act. The superintendent, following hearing, may revoke
the self-insured status of the employer if at any time the
assets of the guarantor become impaired or encumbered or are
otherwise found to be inadequate to
support the guarantee.

 
G. A subsidiary employer may be eligible for approved self-
insurance status pursuant to this Act if: the subsidiary
employer files an application jointly with a qualified
parent corporation that has direct ownership of a majority
voting interest of the subsidiary employer; the parent
corporation and subsidiary employer submit an irrevocable
contract of assignment, on a form approved by the
Superintendent of Insurance, of the subsidiary employer's
obligations incurred pursuant to this Act; the parent
corporation is solvent and demonstrates an ability to pay
the compensation and benefits of the subsidiary employer;
and the subsidiary employer meets all other requirements for
application and qualification as a self-insurer under this
chapter and under any applicable rules adopted by the
superintendent. If the parent corporation is not a United
States corporation, the superintendent may, in the
superintendent's sole discretion, establish the conditions
of any approval of the foreign parent corporation or deny
the application of the foreign parent corporation. As part
of its application for approval, a foreign parent
corporation must provide the following information to the
superintendent: evidence that its country of domicile has
substantially similar laws with respect to submission to the
jurisdiction of the board agency and the courts of this
State for the purposes of payment of workers' compensation
claims of the subsidiary employer; audited financial
statements, as otherwise required by this Act, prepared in
the English language by a certified public accountant
licensed in a state in the United States in accordance with
generally accepted auditing standards as prescribed by the
American Institute of Certified Public Accountants; and
security, as otherwise required by the Act, in United States
currency. The irrevocable contract of assignment and
application must be signed by a duly authorized officer of
each corporation and the application must include a board of
directors' resolution from each entity as evidence of each
officer's authority to enter into the contract. The
superintendent may determine the subsidiary employer's
eligibility for self-insurance authority and the amount of
required security based upon the parent corporation's
consolidated financial statement, as long as the employer
complies with paragraph H. A subsidiary employer currently
authorized to self-insure need not pay the application fee
required of a new applicant in order to file an application
to qualify under this subsection, but the subsidiary
employer and parent corporation must provide all information
required under this subsection as if they were a new
applicant. Once the subsidiary employer becomes authorized
to self-insure under this section, the parent corporation
assumes liability for all prior workers' compensation
liabilities incurred by the
subsidiary employer during the period of self-insurance
prior to the date of authorization under this subsection,
unless the subsidiary employer files an alternative plan
approved by the superintendent. The parent corporation and
the subsidiary employer must both be named on the
certificate of authorization for self-insurance authority.
Upon issuance of a certificate of authorization self-
insurance authority pursuant to this subsection, the
following applies.

 
(1) The parent corporation is deemed to have submitted
to the jurisdiction of the board agency and the courts
of the State for the purposes of payment of workers'
compensation claims of the subsidiary employer and is
deemed to have submitted to the jurisdiction of the
superintendent for purposes of implementation of this
Act. The parent corporation, in all respects, is bound
by and subject to all orders, findings, decisions or
awards rendered against the subsidiary employer for
payment of compensation and any penalties or
forfeitures provided under this Act.

 
(2) A subsidiary employer authorized under this
subsection and the parent corporation are considered
one employer for the purposes of membership in the
Maine Self-Insurance Guarantee Association. In the
event of termination, transfer, insolvency, dissolution
or bankruptcy of a subsidiary employer qualifying under
this subsection, the parent corporation assumes all
assessment obligations of the subsidiary employer for
its period of self-insurance and is not considered a
new member of the association.

 
(3) If the subsidiary employer fails for any reason to
pay compensation and benefits as required under this
Act, the parent corporation stands in the place of the
subsidiary employer and is deemed to be the employer,
subject to all requirements and provisions of this Act.
For the purposes of payment of benefits and
compensation under this Act, an employee of the
subsidiary employer is deemed to be concurrently
employed by both corporations. Concerning notification
of injury to an employee of the subsidiary employer,
notice to or knowledge of the occurrence of the injury
on the part of the subsidiary employer is deemed notice
or knowledge on the part of the parent corporation.
The transfer, insolvency, dissolution or bankruptcy of
a subsidiary employer qualifying under this subsection
does not relieve the parent corporation from payment of
compensation for injuries or death sustained by an
employee during the time the subsidiary employer was
approved for self-
insurance authority under this subsection and the
parent corporation continues to be deemed an employer
until such time as all outstanding workers'
compensation claims have been discharged.

 
(4) The transfer, insolvency, dissolution or
bankruptcy of a parent corporation causes the
termination of the subsidiary employer's authorization
to self-insure and a termination plan must be filed
pursuant to subsection 14.

 
Sec. 126. 39-A MRSA §403, sub-§4, as amended by PL 1997, c. 126, §8,
is further amended to read:

 
4. Group self-insurers; application. Except for the
provision relating to individual public employer self-insurers,
subsection 3 is equally applicable in all respects to group self-
insurers. Any employer or group of employers desiring to become a
self-insurer shall submit to the Superintendent of Insurance with
an application for self-insurance, in a form prescribed by the
superintendent, the following:

 
A. A payroll report for each participating employer of the
group for the 3 preceding annual fiscal periods;

 
B. A report of compensation losses incurred, payments plus
reserves, by each participating employer of the group for
the periods described in paragraph A;

 
C. A sworn itemized statement of the group's assets and
liabilities; satisfactory proof of financial ability to pay
compensation for the employers participating in the group
plan; and the group's reserves, their source and assurance
of continuance;

 
D. A description of the safety organization maintained by
the employer or group for the prevention of injuries;

 
E. A statement showing the kind of operations performed or
to be performed;

 
F. An indemnity agreement in a form prescribed by the
superintendent that jointly and severally binds the group
and each member to comply with the provisions of this Act;
and

 
G. Any other agreements, contracts or other pertinent
documents relating to the organization of the employers in
the group.

 
If, upon examination of the sworn financial statement and other
data submitted, the superintendent is satisfied as to the ability
of the employer or group to make current compensation payments
and that the employer's or group's tangible assets make
reasonably certain the payment of all obligations that may arise
under this Act, the application must be granted subject to the
terms and conditions setting out the exposure of cash deposits or
securities or an acceptable surety bond, as required by the
superintendent. Security against shock or catastrophe loss must
be provided either by depositing securities with the board in
such amount as the superintendent may determine or by filing with
the superintendent and the board an insurance carrier's
certificate of a standard self-insurer's reinsurance contract
issued to the self-insurer or group in a form approved by the
superintendent, providing coverage against losses arising out of
one injury in such amounts as the superintendent may determine,
or a combination of the foregoing, satisfactory to the
superintendent. Notwithstanding any provision of this chapter,
no specific or aggregate reinsurance may be required of any
individual public employer that is self-insured and qualifies for
the alternative security requirements of subsection 3, paragraph
D.

 
Yearly reports in a form prescribed by the superintendent must be
filed by each self-insurer or group. The superintendent may, in
addition, require the filing of quarterly financial status
reports whenever the superintendent has reason to believe that
there has been a deterioration in the financial condition of
either an individual or group self-insurer that adversely affects
the individual's or group's ability to pay expected losses. The
reports must be filed within 30 days after the superintendent's
request or at such time as the superintendent shall otherwise
set.

 
After approving any application for self-insurance, the
superintendent shall promptly notify the board and forward to it
copies of the application and all supporting materials.

 
Sec. 127. 39-A MRSA §403, sub-§4-A is enacted to read:

 
4-A.__Approval of application. If, upon examination of the
sworn financial statement and other data submitted in support of
an application filed under subsection 3 or 4, the Superintendent
of Insurance is satisfied as to the ability of the employer or
group to make current compensation payments and that the
employer's or group's tangible assets make reasonably certain the
payment of all obligations that may arise under this Act, the
application must be granted subject to the terms and conditions
setting out the exposure of cash deposits or securities or an
acceptable surety bond, as required by the superintendent.__
Security against shock or catastrophe loss must be provided
either by depositing securities with the agency in such amount as
the superintendent may determine or by filing with the
superintendent and the agency an insurance
carrier's certificate of a standard self-insurer's reinsurance
contract issued to the self-insurer or group in a form approved
by the superintendent, providing coverage against losses arising
out of one injury in such amounts as the superintendent may
determine, or a combination of the foregoing, satisfactory to the
superintendent.__Notwithstanding any provision of this chapter,
specific or aggregate reinsurance may not be required of any
individual public employer that is self-insured and qualifies for
the alternative security requirements of subsection 3, paragraph
D.

 
Yearly reports in a form prescribed by the superintendent must be
filed by each individual or group self-insurer.__The
superintendent may, in addition, require the filing of quarterly
financial status reports whenever the superintendent has reason
to believe that there has been a deterioration in the financial
condition of either an individual or group self-insurer that
adversely affects the individual's or group's ability to pay
expected losses.__The reports must be filed within 30 days after
the superintendent's request or at such time as the
superintendent shall otherwise set.

 
After approving any application for self-insurance, the
superintendent shall issue the individual or group self-insurer a
certificate of self-insurance authority and shall promptly notify
the agency and forward copies of the application and all
supporting materials.

 
Sec. 128. 39-A MRSA §403, sub-§5, ¶A, as amended by PL 1995, c. 594,
§2, is further amended to read:

 
A. Any group of employers may adopt a plan for self-
insurance, as a group, for the payment of compensation under
this Act to their employees. A group may not be approved to
operate a self-insurance plan in the form of a corporation,
partnership or limited liability company. Under a group
self-insurance plan the group shall assume the liability of
all the employers within the group and pay all compensation
for which the employers are liable under this chapter. When
the plan is adopted, the group shall furnish satisfactory
proof to the Superintendent of Insurance of its financial
ability to pay the compensation for the employers in the
group and its revenues, their source and assurance of
continuance. The superintendent shall require the deposit
with the board agency of such securities as the
superintendent determines necessary of the kind prescribed
in subsection 9 or the filing of a bond issued by a surety
company authorized to transact business in this State, in an
amount to be determined to secure its liability to pay the
compensation of each employer as above provided in
accordance with subsection 9. The surety bond must be
approved as to form by the superintendent. The
superintendent may also require that any agreements,
contracts and other pertinent documents relating to the
organization of the employers in the group be filed with the
superintendent at the time the application for group self-
insurance is made. The application must be on a form
prescribed by the superintendent. The superintendent has the
authority to deny the application of the group to pay the
compensation for failure to satisfy any applicable
requirement of this section. The superintendent shall
approve or disapprove an application within 90 days. The
group qualifying under this paragraph is referred to as a
self-insurer.

 
Sec. 129. 39-A MRSA §403, sub-§5, ¶¶B, C and D, as enacted by PL 1991, c.
885, Pt. A, §8 and affected by §§9 to 11, are amended to read:

 
B. An employer participating in group self-insurance is not
relieved from the liability for compensation prescribed by
this chapter, except by the payment of the compensation by
the group self-insurer or by the employer. As between the
employee and the group self-insurer, notice to or knowledge
of the occurrence of the injury on the part of the employer
is deemed notice or knowledge, as the case may be, on the
part of the group self-insurer; jurisdiction of the employer
is, for the purpose of this chapter, jurisdiction of the
group self-insurer and the group self-insurer is in all
things bound by and subject to the orders, findings,
decisions or awards rendered against the participating
employer for the payment of compensation under this chapter.
The insolvency or bankruptcy of a participating employer
does not relieve the group self-insurer from the payment of
compensation for injuries or death sustained by an employee
during the time the employer was a participant in group
self-insurance. The group self-insurer shall promptly notify
the Superintendent of Insurance and the board agency, on a
prescribed form, of the addition of any participating
employer or employers. The approval of the superintendent is
not necessary in order to add participating employers to the
group self-insurer. Notice of termination of a
participating employer is not effective until at least 10
days after notice of that termination, on a prescribed form,
has been filed in the offices of the superintendent and the
board agency or sent to both offices by registered mail. The
group self-insurer shall give notice of the termination of
any participating member to all other participating members
at least quarterly each year. Written notice must be given
to any new participating member at the time of admission
that the specific membership of the group and its members as
prescribed in this section is not affected by the group's
failure to provide its members with prior or immediate
notice of changes in the membership of the group if notice
is given at least quarterly, as long as the termination or
admission of members was effected in compliance with all
group agreements and
bylaws and this section and the rules adopted pursuant to
it.

 
C. Each group self-insurer, in its application for self-
insurance, shall set forth the names and addresses of its
officers, directors, trustees and general manager. Notice of
any change in the officers, directors, trustees or general
manager must be given to the Superintendent of Insurance and
the board agency within 10 days of the change. An officer,
director, trustee or employee of the group self-insurer may
not represent or participate directly or indirectly on
behalf of an injured worker or the worker's dependents in
any workers' compensation proceeding. All employees of
employers participating in group self-insurance are deemed
to be included under the group self-insurance plan.

 
D. If for any reason the status of a group self-insurer
under this paragraph is terminated, the securities, the
surety bond, the letter of credit or the deposit required by
this section continues to be held by the Treasurer of State
and remains subject to the control of the board agency until
all claims secured by the securities, surety bond, letter of
credit or deposit have been discharged. When all such claims
have been discharged or after such period as the
Superintendent of Insurance determines proper, the
superintendent may accept in lieu thereof, and for the
additional purpose of securing such further and future
contingent liability as may arise from prior injuries to
workers and be incurred by reason of any change in the
condition of such workers warranting the board agency making
subsequent awards for payment of additional compensation, a
policy of insurance furnished by the group self-insurer, its
successor or assigns or other entity carrying on or
liquidating such self-insurance group. The policy must be in
a form approved by the superintendent and issued by any
insurance company licensed to issue this class of insurance
in the State. It may only be issued for a single complete
premium payment in advance by the group self-insurer. It
must be given in an amount determined by the superintendent
and when issued is noncancellable for any cause during the
continuance of the liability secured and so covered.

 
Sec. 130. 39-A MRSA §403, sub-§15, as amended by PL 1993, c. 349, §73,
is further amended to read:

 
15. Confidentiality of information. All written, printed or
graphic matter or any mechanical or electronic data compilation
from which information can be obtained, directly or after
translation into a form susceptible of visual or aural
comprehension, all information contained in the minutes of
trustee meetings and all information relating to individual
compensation cases, that a self-insurer is required to file with
or make
available to the superintendent under this section, section 404
or rules adopted pursuant to it are confidential and are not
public records.

 
The confidential nature of this information does not limit or
affect its use by the superintendent in administering this Act,
including, but not limited to, communications with the service
agent, the Workers' Compensation Board Agency or the Maine Self-
Insurance Guarantee Association.

 
Sec. 131. 39-A MRSA §404, sub-§3, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, is amended to read:

 
3. Board of directors. The board of directors of the
association consists of at least 7 persons serving terms as
established in the plan of operation pursuant to subsection 5.
The members of the board of directors must be selected by the
member self-insurers, subject to the approval of the
Superintendent of Insurance. Vacancies on the board of directors
must be filled for the remaining period of the term in the same
manner as initial appointments, except that vacancies may be
filled by majority vote of the remaining directors, subject to
the approval of the superintendent, until the next annual meeting
of the members.

 
In approving selections to the board of directors, the
superintendent shall consider among other things whether all
member self-insurers are fairly represented.

 
Members of the board of directors may be reimbursed from the
assets of the association for expenses incurred by them as
members of the board of directors.

 
Sec. 132. 39-A MRSA §404, sub-§4, ¶C, as amended by PL 2001, c. 224,
§2, is further amended to read:

 
C. The following pertains to postinsolvency assessment.

 
(1) In the event the assets of the fund are not
sufficient to pay the obligations of the association,
the association shall make an additional assessment as
follows.

 
(a) Each individual self-insurer must be assessed
an amount not in excess of 4% each year of the
annual standard premium that would have been paid
by the individual self-insurer during the prior
calendar year. The assessments of each member
individual self-insurer must be in the proportion
that the annual standard premium of the individual
self-insurer for the preceding calendar year bears
to the annual standard premium of all member self-
insurers for the preceding calendar year.

 
(b) Each group self-insurer must be assessed an
amount not in excess of .2% each year of the total
annual standard premium that would have been paid
by all the members of that group self-insurer
during the prior calendar year. The assessments
of each member group self-insurer must be in the
proportion that the annual standard premium of the
group self-insurer for the preceding calendar year
bears to the annual standard premium of all member
self-insurers for the preceding calendar year.

 
(2) Each member self-insurer must be notified of the
assessment no later than 30 days before it is due.

 
(3) The association may exempt or defer, in whole or
in part, the assessment of any member self-insurer, if
the assessment would cause that member's financial
statement to reflect liabilities in excess of assets.

 
(4) Delinquent assessments, except as provided in
subparagraph (3), must bear interest at the rate to be
established by the board of directors, but not exceed
the discount rate of the Federal Reserve Bank, Boston,
Massachusetts, on the due date of the assessment, plus
4% annually, computed from the due date of the
assessment.

 
(5) The association shall establish in the plan of
operations a mechanism to calculate the assessments
required by subparagraph (1) by a simple and equitable
means to convert from policy or fund years that are
different from a calendar year.

 
Sec. 133. 39-A MRSA §404, sub-§12, as enacted by PL 1991, c. 885, Pt.
A, §8 and affected by §§9 to 11, is amended to read:

 
12. Stay of proceedings. All proceedings under this Act to
which the insolvent insurer self-insurer is a party either before
the board agency or a court in this State and the running of all
time periods against either the insolvent self-insurer or the
association under this Act are stayed for 60 days from the date
of notice to the association of the insolvency in order to permit
the association to investigate, prosecute or defend properly any
petition, claim or appeal under this Act. The payment of weekly
compensation for incapacity under former Title 39, section 54,
54-A, 54-B, 55, 55-A, 55-B, 56, 56-A, or 56-B or under section
212 or 213 must be made during the time periods in which
proceedings
affecting the payment of weekly compensation are stayed.

 
Sec. 134. 39-A MRSA §406, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§406. Notices of assent to be posted

 
A notice in a form as the board agency approves, stating that
the employer has conformed to this Act, together with other
information as the board agency determines, must be posted by the
employer and kept posted by the employer in each of the
employer's mills, factories or places of business. The notice
must be conspicuous and posted in a place accessible to the
employer's employees.

 
Sec. 135. 39-A MRSA §611, as enacted by PL 1991, c. 885, Pt. A, §8
and affected by §§9 to 11, is amended to read:

 
§611. Impartial medical advice

 
On request of a party or on its own the executive director's
motion, the board executive director may in occupational disease
cases appoint one or more competent and impartial physicians.
Upon order of the board executive director, the fees and expenses
of the health care provider or health care providers must be paid
by the employer. These appointees shall examine the employee and
inspect the industrial conditions under which the employee has
worked in order to determine the nature, extent and probable
duration of the occupational disease, the likelihood of its
origin in the industry and the date of incapacity. Section 207
applies to the filing and subsequent proceedings on the report of
the appointees and to examinations and treatments by the
employer.

 
If a claim is made for death from an occupational disease, an
autopsy may be ordered by the board executive director under the
supervision of impartial appointees. All proceedings for or
payments of compensation to any claimant refusing to permit such
an autopsy when ordered are suspended on and during the
continuance of such a refusal.

 
Sec. 136. Transition.

 
The following provisions apply to the transition of powers and
duties of the Workers' Compensation Board to the Workers'
Compensation Agency.

 
1. Powers. The Workers' Compensation Agency, under the
governance of the Workers' Compensation Board, is the successor
in every way to the former powers, duties and functions of the
Workers' Compensation Board specifically transferred by this Act.

 
2. Contracts. All existing contracts, agreements and
compacts involving the Workers' Compensation Board remain in
effect.

 
3. Rules. All rules adopted by the Workers' Compensation
Board remain in effect and, until amended to conform with this
Act, must be construed so as to effectuate the purposes of this
Act.

 
4. Certification. Certifications made by or on behalf of the
Executive Director of the Workers' Compensation Agency after the
effective date of this Act have the same effect as certifications
made by or on behalf of the Clerk of the Workers' Compensation
Board.

 
5. Records. All records, property and equipment belonging to
or allocated for the use of the Workers' Compensation Board on
the effective date of this Act become part of the property of the
Workers' Compensation Agency.

 
6. Forms. The Workers' Compensation Agency shall use all
existing forms, letterheads and similar items bearing the name of
or referring to the "Workers' Compensation Board" until existing
supplies of those items are exhausted.

 
7. Workers' Compensation Board Administrative Fund; use of
reserve. The Workers' Compensation Board Administrative Fund is
renamed the Workers' Compensation Agency Administrative Fund.
The Workers' Compensation Agency is authorized to make all
expenditures from the fund to the extent of any authorization
previously granted to the Workers' Compensation Board. In
addition, $260,000 of the reserve fund created pursuant to the
former Maine Revised Statutes, Title 39-A, section 154,
subsection 6 is transferred upon the effective date of this Act
from the Workers' Compensation Agency Administrative Fund to a
special technology fund that may be spent on technological
improvement projects in accordance with a plan to be developed no
later than January 1, 2003 by the Workers' Compensation Board in
consultation with the Commissioner of Labor and the Commissioner
of Administrative and Financial Services and interested parties.
The remainder of the reserve fund is merged into the Workers'
Compensation Agency Administrative Fund and any balance
anticipated by the Executive Director of the Workers'
Compensation Agency to be remaining as of July 1, 2003 is to be
applied for purposes of reducing the assessment for fiscal year
2003-04 in accordance with Title 39-A, section 154, subsection 6-
A. Any unused balance in the special technology fund upon
completion of the technology improvement plan reverts to the
Workers' Compensation Agency Administrative Fund and must be
applied to
reduce the next assessment to be levied.

 
8. Employees of the Workers' Compensation Board. All
employees of the Workers' Compensation Board are transferred to
the Workers' Compensation Agency on the effective date of this
Act. The Executive Director of the Workers' Compensation Board
serves as Acting Executive Director of the Workers' Compensation
Agency until a successor is confirmed and takes office. All
positions formerly authorized or allocated to the Workers'
Compensation Board are authorized or allocated to the Workers'
Compensation Agency. Employees in classified positions on the
effective date of this Act continue in those positions under the
Workers' Compensation Agency on the same terms and conditions of
employment subject to the Civil Service Law and the State
Employees Labor Relations Act. All unclassified employees of the
Workers' Compensation Board who are transferred to the Workers'
Compensation Agency become classified employees unless otherwise
provided in this Act. Employees serving as hearing officers on
the effective date of this Act continue in those positions for
the remainder of their current terms of appointment on the same
terms and conditions of employment except as otherwise expressly
provided in this Act.

 
9. Board membership. The reconfiguration of membership of
the Workers' Compensation Board effected by the enactment of the
Maine Revised Statutes, Title 39-A, section 151-C must be
achieved by attrition; the labor representative position and the
management representative position expiring on February 1, 2002
must be filled with representatives of the public, appointed by
the Governor. The Governor shall select a 3rd representative of
the public. Notwithstanding Title 39-A, section 151-C,
subsection 1, the Governor shall appoint one public member to a
term that expires February 1, 2004; one public member to a term
that expires February 1, 2005 and one public member to a term
that expires February 1, 2007. Upon the appointment of the
public members, the labor representative and the management
representative whose terms expired on February 1, 2002 cease to
be members of the board. The other members representing labor
and management hold their membership for the remainder of their
current terms. The voting requirements of Title 39-A, section
151, subsection 5 continue to apply until the first 3 public
members have been appointed and confirmed.

 
10. Assessment for fiscal year 2002-03. Notwithstanding the
Maine Revised Statutes, Title 39-A, section 154, subsection 6-A,
the Executive Director of the Workers' Compensation Agency shall
calculate assessment percentages for the assessment that must be
collected from insured and self-insured employers for fiscal year
2002-03 in the same manner as in the former Title 39-A, section
154, subsection 6. Insurers shall file annual and quarterly
returns for fiscal years 2001-02 and 2002-03 under the former
provisions of Title 39-A, section 154, subsection 3, paragraph D.
The executive director shall calculate assessments designed to
produce an aggregate assessment not to exceed $7,227,000 for
fiscal year 2002-03 unless the executive director determines that
those assessment levels do not differ materially from the
assessment levels previously established for that fiscal year.
This assessment level applies retroactively to all of fiscal year
2002-03 and is not subject to further adjustment. Assessments on
insured employers must be paid for the full year of coverage on
all policies issued or renewed with effective dates between July
1, 2002 and June 30, 2003. The assessment on a midterm
replacement for any such policy must be paid on a pro rata basis
for the period of coverage up to the anniversary date of the
policy. If the assessment level determined pursuant to this
subsection is different from the assessment level determined
before the effective date of this Act, the executive director
shall notify all insurers and self-insurers of the adjustment
within 30 days after the effective date of this Act. For
employers whose assessments are affected by this adjustment, the
adjustment must be implemented as a credit or charge in an
insured employer's next premium bill or a self-insurer's next
assessment.

 
11. Assessment for fiscal year 2003-04. For the Workers'
Compensation Agency Administration Fund assessment payment due
June 1, 2003 for fiscal year 2003-04, the Workers' Compensation
Agency shall levy the assessment directly on insurance companies.
Except for midterm policy replacements as provided in subsection
10, policies issued or renewed after July 1, 2003 may not be
surcharged. Insurers choosing to adjust their premiums for
policies issued on or after July 1, 2003 to reflect the new
assessment mechanism shall promptly file notice of the rate
revision with the Superintendent of Insurance. For each policy
that is in force on or after July 1, 2003 and subject to
surcharge pursuant to subsection 10, the insurer is entitled to
credit against its assessment for fiscal year 2003-04 the pro
rata share of the surcharge that is attributable to the period of
coverage beginning on July 1, 2003.

 
12. Budget; allocation of fund. The Executive Director of
the Workers' Compensation Agency shall submit with the agency's
biennial budget for fiscal years 2003-04 and 2004-05 a strategic
operational plan and a technology plan pursuant to the Maine
Revised Statutes, Title 39-A, section 152-A, subsection 1,
paragraph G containing sufficient detail to identify the
estimated administrative and staff efficiencies identified in the
biennial budget submission. Allocations of the Workers'
Compensation Agency Administrative Fund may not exceed $8,600,000
in fiscal years 2003-04 and 2004-05.

 
Sec. 137. Appropriations and allocations. The following appropriations
and allocations are made.

 
WORKERS' COMPENSATION AGENCY

 
Administration - Workers' Compensation Agency

 
Initiative: Provides funds to meet the operational
requirements of the Workers' Compensation Agency as a result of
reorganization.

 
Other Special Revenue Funds2001-022002-03

 
Personal Services$0$764,294

 
All Other 0__ 381,471

 
Other Special Revenue Funds Total$0$1,145,765

 
Special Technology Fund - Workers'

 
Compensation Agency

 
Initiative: Provides funds for technology to achieve
operational efficiencies consistent with reorganization.
Notwithstanding any other provision of law, any balance
remaining on June 30th of each fiscal year may carry forward to
be allotted by financial order for the same purposes upon
recommendation of the State Budget Officer and approval of the
Governor.

 
Other Special Revenue Funds2001-022002-03

 
All Other$0$160,000

 
Capital Expenditures 0 100,000

 
Other Special Revenue Funds Total$0$260,000

 
Workers' Compensation Board

 
Initiative: Provides funds for one additional board member.

 
Other Special Revenue Funds2001-022002-03

 
Personal Services$0$5,000

 
All Other 0____ 94

 
Other Special Revenue Funds Total$0$5,094

 
WORKERS' COMPENSATION AGENCY

 
AGENCY TOTALS2001-022002-03

 
OTHER SPECIAL REVENUE FUNDS$0$1,410,859

 
AGENCY TOTALS - ALL FUNDS$0$1,410,859

 
JUDICIAL DEPARTMENT

 
Courts - Supreme, Superior and District

 
Initiative: Provides funds for the cost of approved collective
bargaining.

 
Other Special Revenue Funds2001-022002-03

 
Personal Services$0$4,249

 
JUDICIAL DEPARTMENT

 
DEPARTMENT TOTALS2001-022002-03

 
OTHER SEPCIAL REVENUE FUNDS$0$4,249

 
DEPARTMENT TOTAL$0$4,249

 
SECTION TOTALS2001-022002-03

 
OTHER SPECIAL REVENUE FUNDS$0$1,415,108

 
SECTION TOTAL - ALL FUNDS$0$1,415,108

 
SUMMARY

 
This bill implements the recommendations of the advisory
committee established to study the governance and administrative
structure of this State's workers' compensation system.

 
The Legislature, through Resolve 2001, chapter 49,
commissioned an advisory committee to work with the Department of
Administrative and Financial Services in conducting a feasibility
study of the governance and administrative structure of this
State's workers' compensation system to determine if greater
efficiencies could be gained in the operational structure and
processes of the Workers' Compensation Board and to identify
advantages and disadvantages, if any, of a closer alignment of
the board with other agencies in State Government.

 
The department issued its governance study report on December
15, 2001. While finding many noteworthy achievements, the report
also found areas needing improvement, identifying the following
as its most significant findings:

 
1. Governance of the board should be changed to help board
members and management better focus on carrying out the mission
of the board;

 
2. Fiscal accountability should be improved and the use of
reserves should be clarified;

 
3. A more predictable revenue model for the board should be
developed and implemented;

 
4. Efficiencies could be realized through better use of
information technology; and

 
5. Business process improvements should be designed and
implemented to better utilize board staff.

 
This bill implements these recommendations through 2 major
initiatives:

 
1. The establishment of the Workers' Compensation Agency,
with a realigned 9-member Workers' Compensation Board as its
governing board and a gubernatorially appointed executive
director as its chief executive officer; and

 
2. A restructured assessment mechanism that establishes a
fixed assessment in advance of each fiscal year and eliminates
the need for the reserve fund.

 
In addition, although some of the improvements recommended by
the governance study are executive or managerial rather than
legislative in nature, the bill provides infrastructure and
resources to carry out those improvements, including the
allocation of a substantial portion of the existing reserve fund
towards the necessary information technology upgrades. The bill
also makes miscellaneous technical corrections, such as
clarifying the references to the board in the self-insurance
guaranty fund laws.

 
The bill renames the governmental agency currently referred to
as the Workers' Compensation Board to become the Workers'
Compensation Agency. This is not intended as a substantive
change. The Workers' Compensation Board remains the agency
governing board and there will be continuity of staff,
facilities, operations, employment status and collective
bargaining rights. The reason for this change in nomenclature is
to alleviate the substantial confusion that has resulted from the
use of the same name to refer to 2 very different organizations:
the board itself and its staff. The bill implements this change
through transitional language similar to the corresponding
provisions of the Maine Workers' Compensation Act of 1992 that
created the Workers' Compensation Board as successor to the
former Workers' Compensation Commission.

 
The major substantive changes the bill makes with regard to
governance and administration are the realignment of the board
and the strengthened role of the Executive Director of the
Workers' Compensation Agency. The current 8-member structure,
with 4 labor representatives and 4 management representatives,
was designed to foster consensus building. Unfortunately, as the
advisory committee reported in the governance study, what has
actually happened is that the structure "causes gridlock on
contentious issues and makes it difficult for the WCB Board of
Directors to
operate well." Therefore, as recommended in the governance
study, the number of members is changed to an odd number. This
change is accomplished through the addition of 3 public members
and the elimination of one management representative and one
labor representative.

 
There will be 3 labor representatives, 3 management
representatives and 3 representatives of the public at large who
may not be chosen from among the nominees for labor or management
positions. Any member may serve as chair. The labor and
management positions whose terms expired February 1, 2002 will be
eliminated by attrition and, to preserve continuity, the other 6
current board members will continue in office and serve out the
balance of their terms.

 
While the board will remain as the governing board of the
agency, with policy-making and oversight responsibilities for the
implementation of the Maine Workers' Compensation Act of 1992,
the bill clarifies and strengthens the role of the Executive
Director of the Workers' Compensation Agency as the chief
executive officer of the agency. There are several provisions
designating the executive director as the person accountable for
a variety of agency actions, including administrative
responsibility for the agency's budget. The governance study
recommended that the staff should work under the direction of the
executive director and emphasized the importance of having a
single individual with accountability for such matters as dispute
prevention and compliance programs. To provide a workable line
of accountability in personnel matters, confidential employees of
the agency, including the general counsel, will serve at the
pleasure of the executive director rather than at the pleasure of
the board; however, the number of levels of management exempt
from the Civil Service Law will be reduced.

 
To provide for the necessary accountability and to implement
the governance study's recommendation for closer alignment with
the rest of the executive branch, the executive director will be
appointed by the Governor subject to legislative confirmation.
The appointment will be for a fixed and renewable term, like
those terms of the commissioners of the Public Utilities
Commission and the Superintendent of the Bureau of Financial
Institutions and the Superintendent of Insurance, with a term of
office of 5 years.

 
The Workers' Compensation Board retains policy making and
oversight responsibilities. Responsibility for recommending
legislative changes remains within the board's policy making
authority. The board also retains ultimate responsibility for
rulemaking and for administrative adjudication with the exception
of hearings relating to contested claims, in which the board
retains its appellate role and has notice and opportunity to be
heard as an amicus curiae in the judicial review process. The
board also retains responsibility for administering the
provisions of law governing partial impairment benefits.

 
The governance study emphasized the importance of increased
fiscal accountability and a balanced budget. The bill includes
provisions clarifying that the agency is subject to the same
budgeting process as other agencies of State Government.

 
The governance study also suggested the provision of a
predictable revenue stream. Currently, the board is funded by
assessments that are levied upon employers through a complex
process that requires insurers to collect premium surcharges from
insured employers that may be adjusted up to 3 times a year in
response to revised revenue estimates. If there is a shortfall,
the board must obtain authorization to draw on its reserve fund,
while excess collections are either added to the reserve fund,
credited against subsequent assessments or refunded to
policyholders, depending on the amount collected.

 
The bill revises the assessment mechanism so that the amount
collected is a sum certain, beginning with the assessment to be
levied in the spring of 2003 for fiscal year 2003-04. To
accomplish this, the assessment will be levied directly on
insurers and therefore will be included within the premium rather
than billed as a separate surcharge. Insurers will be allowed to
adjust rates to incorporate amounts formerly collected as
surcharges. The assessment will continue to be a uniform
percentage of premium for all insurers, but will be based on the
prior calendar year premium, which is already known at the time
the assessment is collected, rather than the subsequent fiscal
year premium, which must be estimated. As a result, the
executive director will know exactly how much to assess in order
to meet the agency's budget. The mechanism for assessing self-
insurers already meets that criterion and therefore will not be
changed. The bill also preserves the statutory cap on
assessments, as updated to reflect current agency needs and
economic conditions.

 
Finally, the governance study called for more clarity
regarding the board reserve fund, while acknowledging the
importance of having resources available in reserve. Because the
fixed assessment mechanism enables the currently authorized 10%
contingency margin to provide an adequate reserve, there will no
longer be a need for a separate accumulating reserve fund.
Therefore, any amounts accruing in the Workers' Compensation
Agency Administrative Fund beyond the agency's needs will be
applied to reduce the assessment for the following fiscal year.
A portion of the existing reserve fund will be dedicated to the
technology improvement projects recommended by the governance
study, and the remainder will be credited against the assessment
for fiscal year
2003-04 as an excess fund balance.

 
The bill also includes several transitional provisions,
including provisions on the budget and human resource issues and
technical revisions to various statutory provisions for
conformity with the changes in nomenclature and administrative
structure.

 
Several provisions of the Maine Revised Statutes, Title 39-A
have been amended to clarify the adjudicatory process and
timetables, including a nonsubstantive reorganization of
provisions of Title 39-A, sections 318 to 321 relating to post-
hearing procedures.

 
Title 39-A, section 105 clarifies that the executive director
has jurisdiction over predeterminations of independent contractor
status and clarifies the hearing procedure when there is a
dispute.

 
Title 39-A, section 356 is amended to clarify the assessment
process for the Supplemental Benefits Fund and to incorporate
relevant language from a repealed provision of section 154 that
is cross-referenced by the current law. The structure of the
Supplemental Benefits Oversight Committee and the assessment
formula and procedures are not changed.


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