Bill Text: IA SF435 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act relating to workers’ compensation and including effective date and applicability provisions. (Formerly SSB 1170.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2017-03-27 - Withdrawn. S.J. 784. [SF435 Detail]

Download: Iowa-2017-SF435-Introduced.html

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Senate File 435 - Introduced




                                 SENATE FILE       
                                 BY  COMMITTEE ON COMMERCE

                                 (SUCCESSOR TO SSB
                                     1170)

                                 (COMPANION TO LSB
                                     1691HV BY COMMITTEE ON
                                     COMMERCE)

                                      A BILL FOR

  1 An Act relating to workers' compensation and including
  2    effective date and applicability provisions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 1691SV (1) 87
    av/rj

PAG LIN



  1  1    Section 1.  Section 85.16, subsection 2, Code 2017, is
  1  2 amended to read as follows:
  1  3    2.  a.  By the employee's intoxication, which did not arise
  1  4 out of and in the course of employment but which was due
  1  5 to the effects of alcohol or another narcotic, depressant,
  1  6 stimulant, hallucinogenic, or hypnotic drug not prescribed by
  1  7 an authorized medical practitioner, if the intoxication was a
  1  8 substantial factor in causing the injury.
  1  9    b.  For the purpose of disallowing compensation under this
  1 10 subsection, both of the following apply:
  1 11    (1)  If the employer shows that, at the time of the injury
  1 12 or immediately following the injury, the employee had positive
  1 13 test results reflecting the presence of alcohol, or another
  1 14 narcotic, depressant, stimulant, hallucinogenic, or hypnotic
  1 15 drug which drug either was not prescribed by an authorized
  1 16 medical practitioner or was not used in accordance with the
  1 17 prescribed use of the drug, it shall be presumed that the
  1 18 employee was intoxicated at the time of the injury and that
  1 19 intoxication was the predominant factor in causing the injury.
  1 20    (2)  Once the employer has made a showing as provided
  1 21 in subparagraph (1), the burden of proof shall be on the
  1 22 employee to overcome the presumption by establishing that the
  1 23 employee was not intoxicated at the time of the injury, or that
  1 24 intoxication was not the predominant factor in causing the
  1 25 injury.
  1 26    Sec. 2.  Section 85.18, Code 2017, is amended to read as
  1 27 follows:
  1 28    85.18  Contract to relieve not operative.
  1 29    No contract, rule, or device whatsoever shall operate to
  1 30 relieve the employer, in whole or in part, from any liability
  1 31 created by this chapter except as herein provided.  This
  1 32 section does not create a private cause of action.
  1 33    Sec. 3.  Section 85.23, Code 2017, is amended to read as
  1 34 follows:
  1 35    85.23  Notice of injury ==== failure to give.
  2  1 Unless the employer or the employer's representative shall
  2  2 have actual knowledge of the occurrence of an injury received
  2  3 within ninety days from the date of the occurrence of the
  2  4 injury, or unless the employee or someone on the employee's
  2  5 behalf or a dependent or someone on the dependent's behalf
  2  6 shall give notice thereof to the employer within ninety days
  2  7 from the date of the occurrence of the injury, no compensation
  2  8 shall be allowed.  For the purposes of this section, "date of
  2  9 the occurrence of the injury" means the date that the employee
  2 10 knew or should have known that the injury was work=related.
  2 11    Sec. 4.  Section 85.26, subsection 1, Code 2017, is amended
  2 12 to read as follows:
  2 13    1.  An original proceeding for benefits under this chapter
  2 14 or chapter 85A, 85B, or 86, shall not be maintained in any
  2 15 contested case unless the proceeding is commenced within two
  2 16 years from the date of the occurrence of the injury for which
  2 17 benefits are claimed or, if weekly compensation benefits are
  2 18 paid under section 86.13, within three years from the date of
  2 19 the last payment of weekly compensation benefits.  For the
  2 20 purposes of this section, "date of the occurrence of the injury"
  2 21  means the date that the employee knew or should have known that
  2 22 the injury was work=related.
  2 23    Sec. 5.  Section 85.33, subsection 3, Code 2017, is amended
  2 24 to read as follows:
  2 25    3.  a.  If an employee is temporarily, partially disabled
  2 26 and the employer for whom the employee was working at the time
  2 27 of injury offers to the employee suitable work consistent
  2 28 with the employee's disability the employee shall accept the
  2 29 suitable work, and be compensated with temporary partial
  2 30 benefits. If the employer offers the employee suitable work
  2 31 and the employee refuses to accept the suitable work with
  2 32 the same offered by the employer, the employee shall not be
  2 33 compensated with temporary partial, temporary total, or healing
  2 34 period benefits during the period of the refusal.  Work offered
  2 35 at the employer's principal place of business or established
  3  1 place of operation where the employee has previously worked is
  3  2 presumed to be geographically suitable for an employee whose
  3  3 duties involve travel away from the employer's principal place
  3  4 of business or established place of operation more than fifty
  3  5 percent of the time. If suitable work is not offered by the
  3  6 employer for whom the employee was working at the time of the
  3  7 injury and the employee who is temporarily partially disabled
  3  8 elects to perform work with a different employer, the employee
  3  9 shall be compensated with temporary partial benefits.
  3 10    b.  The employer shall communicate an offer of temporary
  3 11 work to the employee in writing, including details of lodging,
  3 12 meals, and transportation, and shall communicate to the
  3 13 employee that if the employee refuses the offer of temporary
  3 14 work, the employee shall communicate the refusal and the reason
  3 15 for the refusal to the employer in writing and that during the
  3 16 period of the refusal the employee will not be compensated with
  3 17 temporary partial, temporary total, or healing period benefits,
  3 18 unless the work refused is not suitable.  If the employee
  3 19 refuses the offer of temporary work on the grounds that the
  3 20 work is not suitable, the employee shall communicate the
  3 21 refusal, along with the reason for the refusal, to the employer
  3 22 in writing at the time the offer of work is refused.  Failure to
  3 23 communicate the reason for the refusal in this manner precludes
  3 24 the employee from raising suitability of the work as the reason
  3 25 for the refusal until such time as the reason for the refusal
  3 26 is communicated in writing to the employer.
  3 27    Sec. 6.  Section 85.34, subsection 2, unnumbered paragraph
  3 28 1, Code 2017, is amended to read as follows:
  3 29    Compensation for permanent partial disability shall begin at
  3 30 the termination of the healing period provided in subsection 1
  3 31  when it is medically indicated that maximum medical improvement
  3 32 from the injury has been reached and that the extent of loss or
  3 33 percentage of permanent impairment can be determined by use of
  3 34 the guides to the evaluation of permanent impairment, published
  3 35 by the American medical association, as adopted by the workers'
  4  1 compensation commissioner by rule pursuant to chapter 17A.  The
  4  2 compensation shall be in addition to the benefits provided by
  4  3 sections 85.27 and 85.28. The compensation shall be based
  4  4 upon the extent of the disability and upon the basis of eighty
  4  5 percent per week of the employee's average spendable weekly
  4  6 earnings, but not more than a weekly benefit amount, rounded to
  4  7 the nearest dollar, equal to one hundred eighty=four percent of
  4  8 the statewide average weekly wage paid employees as determined
  4  9 by the department of workforce development under section 96.19,
  4 10 subsection 36, and in effect at the time of the injury. The
  4 11 minimum weekly benefit amount shall be equal to the weekly
  4 12 benefit amount of a person whose gross weekly earnings are
  4 13 thirty=five percent of the statewide average weekly wage. For
  4 14 all cases of permanent partial disability compensation shall
  4 15 be paid as follows:
  4 16    Sec. 7.  Section 85.34, subsection 2, paragraphs m and u,
  4 17 Code 2017, are amended to read as follows:
  4 18    m.  The loss of two=thirds of that part of an arm between
  4 19  including the shoulder joint and to the elbow joint shall equal
  4 20 the loss of an arm and the compensation therefor shall be
  4 21 weekly compensation during two hundred fifty weeks.
  4 22    u.  In all cases of permanent partial disability other than
  4 23 those hereinabove described or referred to in paragraphs "a"
  4 24 through "t" hereof, the compensation shall be paid during
  4 25 the number of weeks in relation to five hundred weeks as the
  4 26 reduction in the employee's earning capacity caused by the
  4 27 disability bears in relation to the earning capacity that the
  4 28 employee possessed when the injury occurred.  A determination
  4 29 of the reduction in the employee's earning capacity caused
  4 30 by the disability shall take into account the permanent
  4 31 partial disability of the employee and the number of years in
  4 32 the future it was reasonably anticipated that the employee
  4 33 would work at the time of the injury.  If an employee who is
  4 34 eligible for compensation under this paragraph returns to work
  4 35 or is offered work for which the employee receives or would
  5  1 receive the same or greater salary, wages, or earnings than
  5  2 the employee received at the time of the injury, the employee
  5  3 shall be compensated based only upon the employee's functional
  5  4 disability resulting from the injury, and not in relation to
  5  5 the employee's earning capacity.  If an employee sustains an
  5  6 injury compensable under this paragraph after reaching the age
  5  7 of sixty=seven, compensation shall be paid to the employee
  5  8 based on the employee's resulting loss of earning capacity
  5  9 not to exceed an amount equal to one hundred fifty weeks of
  5 10 compensation.
  5 11    Sec. 8.  Section 85.34, subsection 2, Code 2017, is amended
  5 12 by adding the following new paragraphs:
  5 13    NEW PARAGRAPH.  w.  In all cases of permanent partial
  5 14 disability described in paragraphs "a" through "t", or paragraph
  5 15 "u" when determining functional disability and not loss of
  5 16 earning capacity, the extent of loss or percentage of permanent
  5 17 impairment shall be determined solely by utilizing the guides
  5 18 to the evaluation of permanent impairment, published by the
  5 19 American medical association, as adopted by the workers'
  5 20 compensation commissioner by rule pursuant to chapter 17A.
  5 21  Lay testimony or agency expertise shall not be utilized in
  5 22 determining loss or percentage of permanent impairment pursuant
  5 23 to paragraphs "a" through "t", or paragraph "u" when determining
  5 24 functional disability and not loss of earning capacity.
  5 25    NEW PARAGRAPH.  x.  Compensation for permanent partial
  5 26 disability for an injury shall terminate on the date when
  5 27 compensation for permanent total disability for any injury
  5 28 begins.  An employee shall not receive compensation for
  5 29 permanent partial disability if the employee is receiving
  5 30 compensation for permanent total disability.
  5 31    Sec. 9.  Section 85.34, subsection 3, Code 2017, is amended
  5 32 to read as follows:
  5 33    3.  Permanent total disability.
  5 34    a.  Compensation for an injury causing permanent total
  5 35 disability shall be upon the basis of eighty percent per week
  6  1 of the employee's average spendable weekly earnings, but not
  6  2 more than a weekly benefit amount, rounded to the nearest
  6  3 dollar, equal to two hundred percent of the statewide average
  6  4 weekly wage paid employees as determined by the department
  6  5 of workforce development under section 96.19, subsection 36,
  6  6 and in effect at the time of the injury. The minimum weekly
  6  7 benefit amount is equal to the weekly benefit amount of a
  6  8 person whose gross weekly earnings are thirty=five percent of
  6  9 the statewide average weekly wage. The weekly compensation is
  6 10 payable during the period of the employee's disability until
  6 11 the employee is no longer permanently and totally disabled or
  6 12 until the employee reaches the age of sixty=seven, whichever
  6 13 occurs first.  If an employee sustains an injury compensable
  6 14 under this subsection after reaching the age of sixty=seven,
  6 15 compensation shall be paid to the employee so long as the
  6 16 employee remains permanently and totally disabled not to exceed
  6 17 an amount equal to one hundred fifty weeks of compensation.
  6 18    b.  Such compensation shall be in addition to the benefits
  6 19 provided in sections 85.27 and 85.28. No compensation shall
  6 20 be payable under this subsection for any injury for which
  6 21 compensation is payable under subsection 2 of this section.
  6 22 In the event compensation has been paid to any person under
  6 23 any provision of this chapter, chapter 85A or chapter 85B for
  6 24 the same an injury producing a total permanent disability, any
  6 25 such amounts so paid shall be deducted from the total amount
  6 26 of compensation payable for such permanent total disability.
  6 27 An employee shall not receive compensation for permanent
  6 28 partial disability if the employee is receiving compensation
  6 29 for permanent total disability.
  6 30    Sec. 10.  Section 85.34, subsection 3, Code 2017, is amended
  6 31 by adding the following new paragraphs:
  6 32    NEW PARAGRAPH.  c.  An employee forfeits the employee's
  6 33 weekly compensation for a permanent total disability under this
  6 34 subsection for a week in which the employee is receiving a
  6 35 payment equal to or greater than fifty percent of the statewide
  7  1 average weekly wage from any of the following sources:
  7  2    (1)  Gross earnings from any employer.
  7  3    (2)  Payment for services from any source.
  7  4    NEW PARAGRAPH.  d.  An employee is not entitled to
  7  5 compensation for a permanent total disability under this
  7  6 subsection while the employee is receiving unemployment
  7  7 compensation under chapter 96.
  7  8    Sec. 11.  Section 85.34, subsections 4 and 5, Code 2017, are
  7  9 amended to read as follows:
  7 10    4.  Credits for excess payments.  If an employee is paid
  7 11 weekly compensation benefits for temporary total disability
  7 12 under section 85.33, subsection 1, for a healing period
  7 13 under section 85.34, subsection 1, or for temporary partial
  7 14 disability under section 85.33, subsection 2, in excess of
  7 15 that required by this chapter and chapters 85A, 85B, and 86,
  7 16 the excess paid by the employer shall be credited against the
  7 17 liability of the employer for permanent partial disability
  7 18 under section 85.34, subsection 2 any future weekly benefits
  7 19 due for an injury to that employee, provided that the employer
  7 20 or the employer's representative has acted in good faith in
  7 21 determining and notifying an employee when the temporary total
  7 22 disability, healing period, or temporary partial disability
  7 23 benefits are terminated.
  7 24    5.  Recovery of employee overpayment.  If an employee is paid
  7 25 any weekly benefits in excess of that required by this chapter
  7 26 and chapters 85A, 85B, and 86, the excess paid by the employer
  7 27 shall be credited against the liability of the employer for
  7 28 any future weekly benefits due pursuant to subsection 2, for
  7 29 a any current or subsequent injury to the same employee. An
  7 30 overpayment can be established only when the overpayment is
  7 31 recognized in a settlement agreement approved under section
  7 32 86.13, pursuant to final agency action in a contested case
  7 33 which was commenced within three years from the date that
  7 34 weekly benefits were last paid for the claim for which the
  7 35 benefits were overpaid, or pursuant to final agency action
  8  1 in a contested case for a prior injury to the same employee.
  8  2 The credit shall remain available for eight years after the
  8  3 date the overpayment was established. If an overpayment
  8  4 is established pursuant to this subsection, the employee
  8  5 and employer may enter into a written settlement agreement
  8  6 providing for the repayment by the employee of the overpayment.
  8  7 The agreement is subject to the approval of the workers'
  8  8 compensation commissioner. The employer shall not take any
  8  9 adverse action against the employee for failing to agree to
  8 10 such a written settlement agreement.
  8 11    Sec. 12.  Section 85.34, subsection 7, paragraph a, Code
  8 12 2017, is amended to read as follows:
  8 13    a.  An employer is fully liable for compensating all only
  8 14 that portion of an employee's disability that arises out of and
  8 15 in the course of the employee's employment with the employer
  8 16 and that relates to the injury that serves as the basis for
  8 17 the employee's claim for compensation under this chapter,
  8 18 or chapter 85A, 85B, or 86.  An employer is not liable for
  8 19 compensating an employee's preexisting disability that arose
  8 20 out of and in the course of employment from a prior injury with
  8 21 the employer, to the extent that the employee's preexisting
  8 22 disability has already been compensated under this chapter,
  8 23 or chapter 85A, 85B, or 86. An employer is not liable for
  8 24 compensating an employee's preexisting disability that arose
  8 25 out of and in the course of employment with a different
  8 26 employer or from causes unrelated to employment.
  8 27    Sec. 13.  Section 85.34, subsection 7, paragraphs b and c,
  8 28 Code 2017, are amended by striking the paragraphs.
  8 29    Sec. 14.  Section 85.39, Code 2017, is amended to read as
  8 30 follows:
  8 31    85.39  Examination of injured employees.
  8 32    1.  After an injury, the employee, if requested by the
  8 33 employer, shall submit for examination at some reasonable
  8 34 time and place and as often as reasonably requested, to a
  8 35 physician or physicians authorized to practice under the laws
  9  1 of this state or another state, without cost to the employee;
  9  2 but if the employee requests, the employee, at the employee's
  9  3 own cost, is entitled to have a physician or physicians
  9  4 of the employee's own selection present to participate in
  9  5 the examination. If an employee is required to leave work
  9  6 for which the employee is being paid wages to attend the
  9  7 requested examination, the employee shall be compensated at
  9  8 the employee's regular rate for the time the employee is
  9  9 required to leave work, and the employee shall be furnished
  9 10 transportation to and from the place of examination, or the
  9 11 employer may elect to pay the employee the reasonable cost of
  9 12 the transportation. The refusal of the employee to submit to
  9 13 the examination shall suspend forfeit the employee's right to
  9 14 any compensation for the period of the refusal. Compensation
  9 15 shall not be payable for the period of suspension refusal.
  9 16    2.  If an evaluation of permanent disability has been made by
  9 17 a physician retained by the employer and the employee believes
  9 18 this evaluation to be too low, the employee shall, upon
  9 19 application to the commissioner and upon delivery of a copy of
  9 20 the application to the employer and its insurance carrier, be
  9 21 reimbursed by the employer the reasonable fee for a subsequent
  9 22 examination by a physician of the employee's own choice, and
  9 23 reasonably necessary transportation expenses incurred for the
  9 24 examination. The physician chosen by the employee has the
  9 25 right to confer with and obtain from the employer=retained
  9 26 physician sufficient history of the injury to make a proper
  9 27 examination.  An employer is only liable to reimburse an
  9 28 employee for the cost of an examination conducted pursuant to
  9 29 this subsection if the injury for which the employee is being
  9 30 examined is determined to be compensable under this chapter or
  9 31 chapter 85A or 85B.  An employer is not liable for the cost of
  9 32 such an examination if the injury for which the employee is
  9 33 being examined is determined not to be a compensable injury. A
  9 34 determination of the reasonableness of a fee for an examination
  9 35 made pursuant to this subsection, shall be based on the typical
 10  1 fee charged by a medical provider to perform an impairment
 10  2 rating in the local area where the examination is conducted.
 10  3    Sec. 15.  Section 85.45, subsection 1, unnumbered paragraph
 10  4 1, Code 2017, is amended to read as follows:
 10  5    Future payments of compensation may be commuted to a present
 10  6 worth lump sum payment only upon application of a party to
 10  7 the commissioner and upon written consent of all parties to
 10  8 the proposed commutation or partial commutation, and on the
 10  9 following conditions:
 10 10    Sec. 16.  Section 85.45, Code 2017, is amended by adding the
 10 11 following new subsection:
 10 12    NEW SUBSECTION.  3.  The parties to any commutation or
 10 13 partial commutation of future payments agreed to and ordered
 10 14 pursuant to this section may agree that the employee has the
 10 15 right to benefits pursuant to section 85.27 under such terms
 10 16 and conditions as agreed to by the parties, for a specified
 10 17 period of time after the commutation or partial commutation
 10 18 agreement has been ordered by the workers' compensation
 10 19 commissioner. During that specified period of time, the
 10 20 commissioner shall have jurisdiction of the commutation or
 10 21 partial commutation agreement for the purpose of adjudicating
 10 22 the employee's entitlement to benefits provided for in section
 10 23 85.27 as provided in the agreement.
 10 24    Sec. 17.  Section 85.61, subsection 7, unnumbered paragraph
 10 25 1, Code 2017, is amended to read as follows:
 10 26    The words "personal injury arising out of and in the course
 10 27 of the employment" shall include injuries to employees whose
 10 28 services are being performed on, in, or about the premises
 10 29 which are occupied, used, or controlled by the employer, and
 10 30 also injuries to those who are engaged elsewhere in places
 10 31 where their employer's business requires their presence and
 10 32 subjects them to dangers incident to the business but only
 10 33 if such injuries are found to be the predominant factor in
 10 34 causing the disability for which compensation is claimed under
 10 35 this chapter, or chapter 85A or 85B.  For purposes of this
 11  1 subsection, an injury is the predominant factor in causing a
 11  2 disability if more than fifty percent of the disability is
 11  3 attributable to the injury.
 11  4    Sec. 18.  Section 85.71, subsection 1, paragraph a, Code
 11  5 2017, is amended to read as follows:
 11  6    a.  The employer has a place of business in this state and
 11  7 the employee regularly works at or from that place of business,
 11  8 or the employer has a place of business in this state and the
 11  9 employee is domiciled in this state.
 11 10    Sec. 19.  Section 86.26, Code 2017, is amended to read as
 11 11 follows:
 11 12    86.26  Judicial review.
 11 13    1.  Judicial review of decisions or orders of the workers'
 11 14 compensation commissioner may be sought in accordance
 11 15 with chapter 17A.  Notwithstanding chapter 17A, the Iowa
 11 16 administrative procedure Act, petitions for judicial review
 11 17 may be filed in the district court of the county in which the
 11 18 hearing under section 86.17 was held, the workers' compensation
 11 19 commissioner shall transmit to the reviewing court the original
 11 20 or a certified copy of the entire record of the contested case
 11 21 which is the subject of the petition within thirty days after
 11 22 receiving written notice from the party filing the petition
 11 23 that a petition for judicial review has been filed, and an
 11 24 application for stay of agency action during the pendency of
 11 25 judicial review shall not be filed in the division of workers'
 11 26 compensation of the department of workforce development
 11 27 but shall be filed with the district court. Such a review
 11 28 proceeding shall be accorded priority over other matters
 11 29 pending before the district court.
 11 30    2.  Notwithstanding section 17A.19, subsection 5, a timely
 11 31 petition for judicial review filed pursuant to this section
 11 32 shall stay execution or enforcement of a decision or order of
 11 33 the workers' compensation commissioner if the party seeking
 11 34 judicial review posts a bond securing any compensation awarded
 11 35 pursuant to the decision or order with the district court
 12  1 within thirty days of filing the petition, in a reasonable
 12  2 amount as fixed and approved by the court.  Unless either the
 12  3 party posting the bond files an objection with the court,
 12  4 within twenty days from the date that the bond is fixed and
 12  5 approved by the court, that the amount of the bond is not
 12  6 reasonable, or the party whose interests are protected by the
 12  7 bond files an objection with the court, within twenty days from
 12  8 the date that the amount of the bond is fixed and approved by
 12  9 the court, that the amount of the bond is not reasonable or
 12 10 adequate, the amount of the bond shall be deemed reasonable and
 12 11 adequate.  If, upon objection, the district court orders the
 12 12 amount of the bond posted to be modified, the party seeking
 12 13 judicial review shall repost the bond in the amount ordered,
 12 14 within twenty days of the date of the order modifying the bond,
 12 15 in order to continue the stay of execution or enforcement
 12 16 of the decision or order of the workers' compensation
 12 17 commissioner.
 12 18    Sec. 20.  Section 86.39, Code 2017, is amended to read as
 12 19 follows:
 12 20    86.39  Fees ==== approval.
 12 21    1.  All fees or claims for legal, medical, hospital, and
 12 22 burial services rendered under this chapter and chapters 85,
 12 23 85A, 85B, and 87 are subject to the approval of the workers'
 12 24 compensation commissioner. For services rendered in the
 12 25 district court and appellate courts, the attorney fee is
 12 26 subject to the approval of a judge of the district court.
 12 27    2.  An attorney shall not recover fees for legal services
 12 28 based on the amount of compensation voluntarily paid or
 12 29 agreed to be paid to an employee for temporary or permanent
 12 30 disability under this chapter, or chapter 85, 85A, 85B, or
 12 31 87.  An attorney shall only recover a fee based on the amount
 12 32 of compensation that the attorney demonstrates would not have
 12 33 been paid to the employee but for the efforts of the attorney.
 12 34 Any disputes over the recovery of attorney fees under this
 12 35 subsection shall be resolved by the workers' compensation
 13  1 commissioner.
 13  2    Sec. 21.  Section 86.42, Code 2017, is amended to read as
 13  3 follows:
 13  4    86.42  Judgment by district court on award.
 13  5    Any party in interest may present a file=stamped copy
 13  6 of an order or decision of the commissioner, from which a
 13  7 timely petition for judicial review has not been filed or if
 13  8 judicial review has been filed, which has not had execution or
 13  9 enforcement stayed as provided in section 17A.19, subsection
 13 10 5, or section 86.26, subsection 2, or an order or decision
 13 11 of a deputy commissioner from which a timely appeal has not
 13 12 been taken within the agency and which has become final by
 13 13 the passage of time as provided by rule and section 17A.15,
 13 14 or an agreement for settlement approved by the commissioner,
 13 15 and all papers in connection therewith, to the district court
 13 16 where judicial review of the agency action may be commenced.
 13 17 The court shall render a decree or judgment and cause the
 13 18 clerk to notify the parties. The decree or judgment, in the
 13 19 absence of a petition for judicial review or if judicial review
 13 20 has been commenced, in the absence of a stay of execution
 13 21 or enforcement of the decision or order of the workers'
 13 22 compensation commissioner as provided in section 17A.19,
 13 23 subsection 5, or section 86.26, subsection 2, or in the absence
 13 24 of an act of any party which prevents a decision of a deputy
 13 25 workers' compensation commissioner from becoming final, has the
 13 26 same effect and in all proceedings in relation thereto is the
 13 27 same as though rendered in a suit duly heard and determined by
 13 28 the court.
 13 29    Sec. 22.  Section 535.3, subsection 1, Code 2017, is amended
 13 30 to read as follows:
 13 31    1.  a.  Interest shall be allowed on all money due on
 13 32 judgments and decrees of courts at a rate calculated according
 13 33 to section 668.13, except for interest due pursuant to section
 13 34 85.30 for which the rate shall be ten percent per year.
 13 35    b.  Notwithstanding paragraph "a", interest due pursuant
 14  1 to section 85.30 shall accrue from the date each compensation
 14  2 payment is due at an annual rate equal to the one=year treasury
 14  3 constant maturity published by the federal reserve in the most
 14  4 recent H15 report settled prior to the date each compensation
 14  5 payment is due plus two percent.
 14  6    Sec. 23.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed
 14  7 of immediate importance, takes effect upon enactment.
 14  8    Sec. 24.  APPLICABILITY.
 14  9    1.  The sections of this Act amending sections 85.16, 85.18,
 14 10 85.23, 85.26, 85.33, 85.34, 85.39, 85.61, 85.71, 86.26, 86.39,
 14 11 and 86.42 apply to injuries occurring on or after the effective
 14 12 date of this Act.
 14 13    2.  The sections of this Act amending section 85.45 apply to
 14 14 commutations for which applications are filed on or after the
 14 15 effective date of this Act.
 14 16                           EXPLANATION
 14 17 The inclusion of this explanation does not constitute agreement with
 14 18 the explanation's substance by the members of the general assembly.
 14 19    This bill contains various provisions relating to workers'
 14 20 compensation.
 14 21    Code section 85.16(2) is amended to provide that if an
 14 22 employer shows that at the time of an injury for which workers'
 14 23 compensation is sought, an employee had positive test results
 14 24 reflecting the presence of alcohol or drugs, there is a
 14 25 presumption that the employee was intoxicated at the time of
 14 26 the injury, and the intoxication was the predominant factor in
 14 27 causing the injury, making the injury not compensable.  The
 14 28 provision also allows the employee to overcome that presumption
 14 29 by establishing that the employee was not intoxicated or that
 14 30 intoxication was not the predominant factor in causing the
 14 31 injury.
 14 32    Code section 85.18 is amended to provide that imposition of
 14 33 liability on any employer under Code chapter 85 does not create
 14 34 a private cause of action.
 14 35    Code section 85.23 requiring notice of injury and Code
 15  1 section 85.26(1) concerning limitations of actions, are amended
 15  2 to define "date of the occurrence of the injury" to mean the
 15  3 date the employee knew or should have known that the injury was
 15  4 work=related.
 15  5    Code section 85.33(3) concerning an employee who is
 15  6 temporarily, partially disabled, is amended to include
 15  7 requirements for offers of temporary work by employers
 15  8 to employees who are temporarily, partially disabled and
 15  9 requirements for refusal of such work as not suitable by an
 15 10 employee.  An employee cannot raise suitability as a reason
 15 11 until such time as the refusal and reason are communicated to
 15 12 the employer in writing.
 15 13    Code section 85.34(2), concerning compensation for
 15 14 permanent partial disability, is amended to provide that such
 15 15 compensation begins when it is medically indicated that maximum
 15 16 medical improvement from the injury has been reached and that
 15 17 the extent of loss or percentage of permanent impairment can be
 15 18 determined by use of the guides to the evaluation of permanent
 15 19 impairment, published by the American medical association,
 15 20 as adopted by the workers' compensation commissioner by rule
 15 21 pursuant to Code chapter 17A.
 15 22    Code section 85.34(2)(m) is amended to modify language
 15 23 providing compensation for a scheduled injury describing the
 15 24 whole rather than two=thirds of the upper arm.
 15 25    Code section 85.34(2)(u) concerning compensation for
 15 26 permanent partial disability for injuries other than scheduled
 15 27 injuries under Code section 85.34(2), paragraphs "a" through
 15 28 "t", is amended to provide that a reduction in the employee's
 15 29 earning capacity caused by a disability must take into account
 15 30 the employee's permanent partial disability and the number of
 15 31 years in the future it was reasonably anticipated the employee
 15 32 would work at the time of the injury.  An employee who returns
 15 33 to work or is offered work for the same or more money than the
 15 34 employee received when injured shall be compensated only for
 15 35 functional disability, and not in relation to earning capacity.
 16  1 If an employee is injured after age 67, compensation shall be
 16  2 paid based on the employee's resulting loss of earning capacity
 16  3 not to exceed an amount equal to 150 weeks of compensation.
 16  4    New Code section 85.34(2)(w) provides that a determination
 16  5 of the extent of an employee's loss or permanent impairment
 16  6 for a scheduled injury pursuant to Code section 85.34(2),
 16  7 paragraphs "a" through "t", or paragraph "u" when determining
 16  8 functional disability and not loss of earning capacity,
 16  9 shall be determined solely by use of the guides to the
 16 10 evaluation of permanent impairment, published by the American
 16 11 medical association, as adopted by the workers' compensation
 16 12 commissioner by rule pursuant to Code chapter 17A.  Lay
 16 13 testimony or agency expertise cannot be utilized in making this
 16 14 determination.
 16 15    New Code section 85.34(2)(x) provides that compensation for
 16 16 permanent partial disability for an injury terminates on the
 16 17 date when compensation for permanent total disability for any
 16 18 injury begins.  An employee shall not receive compensation
 16 19 for permanent partial disability if the employee is receiving
 16 20 compensation for permanent total disability.
 16 21    Code section 85.34(3)(a) is amended to provide that
 16 22 an employee can receive compensation for permanent total
 16 23 disability until the employee is no longer permanently and
 16 24 totally disabled or reaches the age of 67, whichever occurs
 16 25 first.  If an employee is injured after reaching the age of
 16 26 67, compensation shall be paid so long as the employee remains
 16 27 permanently and totally disabled not exceed an amount equal to
 16 28 150 weeks of compensation.
 16 29    Code section 85.34(3)(b) is amended to provide that if
 16 30 compensation for an injury producing permanent disability has
 16 31 been paid to a person, the amounts so paid are deductible
 16 32 from the total amount of compensation payable to that person
 16 33 for permanent total disability.  An employee cannot receive
 16 34 compensation for permanent partial disability if the employee
 16 35 is receiving compensation for permanent total disability.
 17  1 New Code section 85.34(3)(c) provides that an employee
 17  2 forfeits the employee's weekly compensation for a permanent
 17  3 total disability for a week in which the employee is receiving
 17  4 a payment equal to or greater than 50 percent of the statewide
 17  5 average weekly wage from gross earnings from any employer or
 17  6 payment for services from any source.
 17  7    New Code section 85.34(3)(d) provides that an employee is
 17  8 not entitled to compensation for a permanent total disability
 17  9 while the employee is receiving unemployment compensation under
 17 10 Code chapter 96.
 17 11    Code section 85.34(4) is amended to provide that an employer
 17 12 can receive credit for excess payments of temporary total
 17 13 disability, healing period, or temporary partial disability
 17 14 to an employee against the liability of the employer for any
 17 15 future weekly benefits due for an injury to the employee.
 17 16    Code section 85.34(5) is amended to provide that an employer
 17 17 can receive credit for excess payments of any weekly benefits
 17 18 paid to an employee against the liability of the employer for
 17 19 any future weekly benefits for permanent partial disability
 17 20 that is due for any current or subsequent injury to the
 17 21 same employee.  Provisions limiting the establishment of an
 17 22 overpayment and the availability of credit are stricken.
 17 23    Code section 85.34(7)(a) relating to compensation of an
 17 24 employee in the case of successive disabilities is amended to
 17 25 provide that an employer is only liable for that portion of an
 17 26 employee's disability that relates to the injury that serves as
 17 27 the basis for the employee's claim for workers' compensation.
 17 28 An employer is not liable for compensating an employee's
 17 29 preexisting disability that arose out of and in the course of
 17 30 employment with the employer to the extent that the preexisting
 17 31 disability has already been compensated.  Code section
 17 32 85.34(7)(b) and (c) relating to compensation of preexisting or
 17 33 combined disabilities and successor employers are stricken.
 17 34    Code section 85.39, relating to medical examinations of
 17 35 injured employees for evaluation of permanent disability, is
 18  1 amended to provide that refusal of an employee to submit to an
 18  2 examination requested by the employer forfeits the employee's
 18  3 right to any compensation for the period of the refusal.
 18  4    Code section 85.39 is also amended to provide that an
 18  5 employer is only liable to reimburse an employee for a medical
 18  6 examination requested by the employee if the injury for which
 18  7 the employee is being examined is found to be compensable under
 18  8 workers' compensation law.  An employer is not liable for the
 18  9 cost of the examination if the injury for which the employee
 18 10 is being examined is determined not to be a compensable
 18 11 injury.  An employer is liable to pay a reasonable fee for an
 18 12 examination requested by the employee with reasonableness to
 18 13 be determined based on the typical fee charged by a medical
 18 14 provider to perform an impairment rating in the local area
 18 15 where the examination is conducted.
 18 16    Code section 85.45(1), relating to commutations of future
 18 17 payments of compensation, is amended to require that future
 18 18 payments may be commuted only upon application of a party
 18 19 to the workers' compensation commissioner and upon written
 18 20 consent of all parties to the proposed commutation or partial
 18 21 commutation.
 18 22    New Code section 85.45(3) provides that the parties to any
 18 23 commutation or partial commutation of future compensation
 18 24 payments agreed to and ordered pursuant to this Code section
 18 25 may also agree that the employee has the right to benefits
 18 26 pursuant to Code section 85.27 under such terms and conditions
 18 27 as agreed to by the parties, for a specified period of time
 18 28 after the commutation or partial commutation agreement has been
 18 29 ordered by the workers' compensation commissioner. During that
 18 30 specified period of time, the commissioner has jurisdiction
 18 31 of the commutation or partial commutation agreement for
 18 32 the purpose of adjudicating the employee's entitlement to
 18 33 benefits provided for in Code section 85.27 as provided in the
 18 34 agreement.
 18 35    Code section 85.61(7) is amended to provide that for
 19  1 purposes of the definition of "personal injury arising out of
 19  2 and in the course of business", an employee's injury must be
 19  3 found to be the predominant factor in causing the disability
 19  4 for which worker's compensation is claimed. An injury is the
 19  5 predominant factor in causing a disability if more than 50
 19  6 percent of the disability is attributable to the injury.
 19  7    Code section 85.71(1)(a), concerning compensation for
 19  8 injuries that occur outside of the state, is amended to provide
 19  9 that Iowa law is applicable if the employer has a place of
 19 10 business in this state and the employee regularly works at
 19 11 or from that place of business.  The statute is no longer
 19 12 applicable when the employer has a place of business in this
 19 13 state and the employee is domiciled in this state.
 19 14    Code section 86.26, which allows judicial review of
 19 15 decisions or orders of the workers' compensation commissioner
 19 16 in district court, is amended to provide that a timely petition
 19 17 for judicial review, that is accompanied by a bond securing any
 19 18 compensation awarded pursuant to the order or decision as fixed
 19 19 and approved by the court, shall stay execution and enforcement
 19 20 of the decision or order.  Either party may object to the
 19 21 amount of the bond set by the court as being unreasonable or
 19 22 inadequate.
 19 23    Code section 86.39 is amended to provide that an attorney
 19 24 cannot recover fees for legal services based on the amount of
 19 25 workers' compensation voluntarily paid or agreed to be paid to
 19 26 an employee for temporary or permanent disability.  An attorney
 19 27 can only recover a fee based on the amount of compensation
 19 28 that the attorney demonstrates would not have been paid to the
 19 29 employee but for the efforts of the attorney.  Disputes over
 19 30 the recovery of attorney fees shall be resolved by the workers'
 19 31 compensation commissioner.
 19 32    Code section 86.42 is amended to refer to new Code section
 19 33 86.26(2) which allows a stay of execution and enforcement of
 19 34 an order or decision by the workers' compensation commissioner
 19 35 when a petition for judicial review is accompanied by the
 20  1 posting of a bond.
 20  2    Code section 535.3(1), concerning interest due on unpaid
 20  3 weekly workers' compensation payments, is amended to provide
 20  4 that instead of a 10 percent per year interest rate, interest
 20  5 shall accrue from the date each compensation payment is due at
 20  6 an annual rate equal to the one=year treasury constant maturity
 20  7 published by the federal reserve in the most recent H15 report
 20  8 settled prior to the date each compensation payment is due plus
 20  9 2 percent.
 20 10    The bill is effective upon enactment.
 20 11    The sections of the bill amending Code sections 85.16,
 20 12 85.18, 85.23, 85.26, 85.33, 85.34, 85.39, 85.61, 85.71, 86.26,
 20 13 86.39, and 86.42 apply to injuries occurring on or after the
 20 14 effective date of the bill.
 20 15    The sections of the bill amending Code section 85.45 apply
 20 16 to commutations for which applications are filed on or after
 20 17 the effective date of the bill.
       LSB 1691SV (1) 87
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