OLR Bill Analysis

sSB 353

AN ACT CONCERNING THE STATE'S SECOND INJURY FUND.

SUMMARY:

This bill allows the Second Injury Fund to request, and a workers' compensation commissioner to issue, a writ of attachment against an employer when (1) a person has filed a workers' compensation claim, (2) the employer has not satisfied the requirements to carry insurance or demonstrate other means of paying workers' compensation claims, and (3) it appears the claim may require payment from the Second Injury Fund.

By law, employers are liable for any payments made from the fund and the state can collect the money in a civil action or by any means used to collect taxes. The state can also file a lien against the employer (CGS 31-355 and -355a). By adding the ability to obtain an attachment for payments that may be made, the bill allows the fund to secure property that may be used to satisfy the employer's obligation to repay the fund.

By law, a workers' compensation claimant can request an attachment against an employer who has not satisfied the workers' compensation financial requirements to secure payment of his or her claim.

The bill also changes the law that currently allows the state treasurer to make a payment from the Second Injury Fund under a stipulated agreement (to settle a workers' compensation claim) whenever it is in the best interests of the injured employee. It allows the treasurer to make such payments (1) when it is in the best interests of the injured employee's dependents or (2) for claims by an employer or insurer regarding death benefits for dependents, cost of living adjustments for dependents or claimants suffering long-term total disability, or cases of multiple employers where the Second Injury Fund makes payments to enable the employee full benefits.

EFFECTIVE DATE: October 1, 2012

BACKGROUND

Second Injury Fund

This fund provides workers' compensation insurance coverage to workers whose employers failed to provide it. By law, the fund's custodian can also sue or join an employee's lawsuit.

COMMITTEE ACTION

Judiciary Committee

Joint Favorable Substitute

Yea

45

Nay

0

(04/02/2012)