Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 120 (2017GS)

Sponsor

Sen. Mayne, K.

Final action

Governor Signed 3/17/2017

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• modifies the calculation of death benefits paid to one or more dependents of a deceased employee; and
• makes technical changes.

Every vote on this bill

Bill text

WORKERS' COMPENSATION DEPENDENT BENEFITS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Karen Mayne
House Sponsor: 
Mike Schultz
LONG TITLE
General Description:
This bill modifies provisions related to workers' compensation death benefits.
Highlighted Provisions:
This bill:
▸ modifies the calculation of death benefits paid to one or more dependents of a
deceased employee; and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
34A-2-702
, as last amended by Laws of Utah 2008, Chapters 27 and 90
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
34A-2-702
 is amended to read:
34A-2-702.
Employers' Reinsurance Fund -- Injury causing death -- Burial
expenses -- Payments to dependents.
(1) (a) There is created an Employers' Reinsurance Fund for the purpose of making a
payment for an industrial accident or occupational disease occurring on or before June 30,
1994. A payment made under this section shall be made in accordance with this chapter or
Chapter 3, Utah Occupational Disease Act. The Employers' Reinsurance Fund has no liability
for an industrial accident or occupational disease occurring on or after July 1, 1994.
(b) The Employers' Reinsurance Fund succeeds to all money previously held in the
"Special Fund," the "Combined Injury Fund," or the "Second Injury Fund."
(c) The commissioner shall appoint an administrator of the Employers' Reinsurance
Fund.
(d) The state treasurer shall be the custodian of the Employers' Reinsurance Fund.
(e) The administrator shall make provisions for and direct a distribution from the
Employers' Reinsurance Fund.
(f) Reasonable costs of administering the Employers' Reinsurance Fund or other fees
may be paid from the Employers' Reinsurance Fund.
(2) The state treasurer shall:
(a) receive workers' compensation premium assessments from the State Tax
Commission; and
(b) invest the Employers' Reinsurance Fund to ensure maximum investment return for
both long and short term investments in accordance with Section 
51-7-12.5
.
(3) (a) The administrator may employ, retain, or appoint counsel to represent the
Employers' Reinsurance Fund in a proceeding brought to enforce a claim against or on behalf of
the Employers' Reinsurance Fund.
(b) If requested by the commission, the attorney general shall aid in representation of
the Employers' Reinsurance Fund.
(4) The liability of the state, its departments, agencies, instrumentalities, elected or
appointed officials, or other duly authorized agents, with respect to payment of compensation
benefits, expenses, fees, medical expenses, or disbursement properly chargeable against the
Employers' Reinsurance Fund, is limited to the cash or assets in the Employers' Reinsurance
Fund, and they are not otherwise, in any way, liable for the operation, debts, or obligations of
the Employers' Reinsurance Fund.
(5) (a) If injury causes death within a period of 312 weeks from the date of the
accident, the employer or insurance carrier shall pay:
(i) the burial expenses of the deceased as provided in Section 
34A-2-418
; and
(ii) benefits in the amount and to a person provided for in this Subsection (5).
(b) (i) If there is a wholly dependent person at the time of the death, the payment by the
employer or [
its
] 
the employer's
 insurance carrier shall be:
(A) subject to Subsections (5)(b)(i)(B) and (C), 66-2/3% of the decedent's average
weekly wage at the time of the injury;
(B) not more than a maximum of 85% of the state average weekly wage at the time of
the injury per week; and
(C) (I) not less than a minimum of $45 per week, plus:
(Aa) [
$5
] 
$20
 for a dependent spouse; and
(Bb) [
$5
] 
$20
 for each dependent minor child under the age of 18 years, up to a
maximum of four such dependent minor children; and
(II) not exceeding:
(Aa) the average weekly wage of the employee at the time of the injury; and
(Bb) 85% of the state average weekly wage at the time of the injury per week.
(ii) Compensation shall continue during dependency for the remainder of the period
between the date of the death and the expiration of 312 weeks after the date of the injury.
(iii) (A) The payment by the employer or [
its
] 
the employer's
 insurance carrier to a
wholly dependent person during dependency following the expiration of the first 312-week
period described in Subsection (5)(b)(ii) shall be an amount equal to the weekly benefits paid to
the wholly dependent person during the initial 312-week period, reduced by 50% of the federal
social security death benefits the wholly dependent person:
(I) is eligible to receive for a week as of the first day the employee is eligible to receive
a Social Security death benefit; and
(II) receives.
(B) An employer or [
its
] 
the employer's
 insurance carrier may not reduce compensation
payable under this Subsection (5)(b)(iii) on or after May 5, 2008, to a wholly dependent person
by an amount related to a cost-of-living increase to the social security death benefits that the
wholly dependent person is first eligible to receive for a week, notwithstanding whether the
employee is injured on or before May 4, 2008.
(C) For purposes of a wholly dependent person whose compensation payable is reduced
under this Subsection (5)(b)(iii) on or before May 4, 2008, the reduction is limited to the
amount of the reduction as of May 4, 2008.
(iv) The issue of dependency is subject to review at the end of the initial 312-week
period and annually after the initial 312-week period. If in a review it is determined that, under
the facts and circumstances existing at that time, the applicant is no longer a wholly dependent
person, the applicant:
(A) may be considered a partly dependent or nondependent person; and
(B) shall be paid the benefits as may be determined under Subsection (5)(d)(iii).
(c) (i) For purposes of a dependency determination, a surviving spouse of a deceased
employee is conclusively presumed to be wholly dependent for a 312-week period from the date
of death of the employee. This presumption does not apply after the initial 312-week period.
(ii) (A) In determining the annual income of the surviving spouse after the initial
312-week period, there shall be excluded 50% of a federal social security death benefit that the
surviving spouse:
(I) is eligible to receive for a week as of the first day the surviving spouse is eligible to
receive a Social Security death benefit; and
(II) receives.
(B) An employer or [
its
] 
the employer's
 insurance carrier may not reduce compensation
payable under this Subsection (5)(c)(ii) on or after May 5, 2008, to a surviving spouse by an
amount related to a cost-of-living increase to the social security death benefits that the surviving
spouse is first eligible to receive for a week, notwithstanding whether the employee is injured on
or before May 4, 2008.
(C) For purposes of a surviving spouse whose compensation payable is reduced under
this Subsection (5)(c)(ii) on or before May 4, 2008, the reduction is limited to the amount of the
reduction as of May 4, 2008.
(d) (i) If there is a partly dependent person at the time of the death, the payment shall
be:
(A) subject to Subsections (5)(d)(i)(B) and (C), 66-2/3% of the decedent's average
weekly wage at the time of the injury;
(B) not more than a maximum of 85% of the state average weekly wage at the time of
the injury per week; and
(C) not less than a minimum of $45 per week.
(ii) Compensation shall continue during dependency for the remainder of the period
between the date of death and the expiration of 312 weeks after the date of injury. 
Compensation may not amount to more than a maximum of $30,000.
(iii) The benefits provided for in this Subsection (5)(d) shall be in keeping with the
circumstances and conditions of dependency existing at the date of injury, and any amount paid
under this Subsection (5)(d) shall be consistent with the general provisions of this chapter and
Chapter 3, Utah Occupational Disease Act.
(iv) Benefits to a person determined to be partly dependent under Subsection (5)(c):
(A) shall be determined in keeping with the circumstances and conditions of
dependency existing at the time of the dependency review; and
(B) may be paid in an amount not exceeding the maximum weekly rate that a partly
dependent person would receive if wholly dependent.
(v) A payment under this section shall be paid to a person during a person's dependency
by the employer or [
its
] 
the employer's
 insurance carrier.
(e) (i) Subject to Subsection (5)(e)(ii), if there is a wholly dependent person and also a
partly dependent person at the time of death, the benefits may be apportioned in a manner
consistent with Section 
34A-2-414
.
(ii) The total benefits awarded to all parties concerned may not exceed the maximum
provided for by law.
(6) The Employers' Reinsurance Fund:
(a) shall be:
(i) used only in accordance with Subsection (1) for:
(A) the purpose of making a payment for an industrial accident or occupational disease
occurring on or before June 30, 1994, in accordance with this section and Section 
34A-2-703
;
and
(B) payment of:
(I) reasonable costs of administering the Employers' Reinsurance Fund; or
(II) fees required to be paid by the Employers' Reinsurance Fund;
(ii) expended according to processes that can be verified by audit; and
(b) may not be used for:
(i) administrative costs unrelated to the Employers' Reinsurance Fund; or
(ii) an activity of the commission other than an activity described in Subsection (6)(a).