Bill Text: NY A07921 | 2013-2014 | General Assembly | Amended

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Bill Title: Provides incentives for productive workers' compensation audits.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2014-01-08 - referred to labor [A07921 Detail]

Download: New_York-2013-A07921-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        7921--A
                              2013-2014 Regular Sessions
                                 I N  A S S E M B L Y
                                     June 10, 2013
                                      ___________
       Introduced by M. of A. CAHILL -- read once and referred to the Committee
         on  Labor  -- committee discharged, bill amended, ordered reprinted as
         amended and recommitted to said committee
       AN ACT to amend the workers' compensation law, in relation to  providing
         incentives for productive workers' compensation audits
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The workers' compensation law is amended by  adding  a  new
    2  section 112-a to read as follows:
    3    S  112-A.  AUDITS  OF EMPLOYERS. 1. (A) EMPLOYERS IN ALL CLASSES OTHER
    4  THAN THE CONSTRUCTION CLASS SHALL BE AUDITED NOT  LESS  FREQUENTLY  THAN
    5  BIENNIALLY  AND  THE CHAIR OR BOARD MAY PROVIDE FOR MORE FREQUENT AUDITS
    6  OF EMPLOYERS IN SPECIFIED  CLASSIFICATIONS  BASED  ON  FACTORS  SUCH  AS
    7  AMOUNT  OF  PREMIUM,  TYPE  OF  BUSINESS, LOSS RATIOS, OR OTHER RELEVANT
    8  FACTORS. IN NO EVENT SHALL EMPLOYERS IN THE CONSTRUCTION CLASS, GENERAT-
    9  ING MORE THAN THE AMOUNT OF PREMIUM REQUIRED TO BE EXPERIENCE RATED,  BE
   10  AUDITED  LESS  FREQUENTLY  THAN ANNUALLY. THE ANNUAL AUDITS REQUIRED FOR
   11  CONSTRUCTION CLASSES SHALL BE A  PHYSICAL,  ONSITE  REVIEW  OF  ORIGINAL
   12  PAYROLL  RECORDS, EMPLOYEE RECORDS, CHECKBOOKS, CASH BOOK (DISBURSEMENTS
   13  AND RECEIPTS), GENERAL LEDGER, CONTRACTS, TAX RETURNS INCLUDING QUARTER-
   14  LY PAYROLL FILINGS, AND ORIGINAL CERTIFICATES OF  INSURANCE.  THE  AUDIT
   15  SHALL  BE  CONDUCTED  NO MORE THAN NINETY DAYS AFTER THE EXPIRATION OF A
   16  POLICY PERIOD.  AT THE COMPLETION OF AN AUDIT, IF REQUESTED BY THE AUDI-
   17  TOR, THE EMPLOYER OR OFFICER OF THE CORPORATION  AND  THE  AUDITOR  MUST
   18  PRINT  AND SIGN THEIR NAMES ON THE AUDIT DOCUMENT AFFIRMING THE ACCURACY
   19  OF THE INFORMATION PROVIDED THEREIN. AS REQUIRED BY SECTION ONE  HUNDRED
   20  TWELVE  OF  THIS  ARTICLE,  EMPLOYERS SHALL MAKE AVAILABLE ALL BOOKS AND
   21  RECORDS NECESSARY FOR THE PAYROLL  VERIFICATION  AUDIT  AND  PERMIT  THE
   22  AUDITOR  TO  MAKE A PHYSICAL INSPECTION OF THE EMPLOYER'S OPERATION.  IF
   23  AN EMPLOYER FAILS TO PROVIDE REASONABLE ACCESS TO  ALL  SUCH  BOOKS  AND
   24  RECORDS NECESSARY FOR A PAYROLL VERIFICATION AUDIT, INCLUDING A PHYSICAL
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11025-03-3
       A. 7921--A                          2
    1  INSPECTION  OF THE EMPLOYER'S OPERATION, THE EMPLOYER SHALL PAY AN ADDI-
    2  TIONAL PREMIUM TO THE CARRIER OF THREE TIMES THE MOST  RECENT  ESTIMATED
    3  ANNUAL PREMIUM.
    4    (B)  IF  AN  EMPLOYER  KNOWINGLY  UNDERSTATES  OR  KNOWINGLY  CONCEALS
    5  PAYROLL, KNOWINGLY MISREPRESENTS OR KNOWINGLY CONCEALS  EMPLOYEE  DUTIES
    6  SO  AS TO AVOID PROPER CLASSIFICATION FOR PREMIUM CALCULATIONS, OR KNOW-
    7  INGLY MISREPRESENTS OR KNOWINGLY CONCEALS INFORMATION PERTINENT  TO  THE
    8  COMPUTATION AND APPLICATION OF AN EXPERIENCE RATING MODIFICATION FACTOR,
    9  SAID KNOWING MISREPRESENTATIONS OR KNOWING CONCEALMENTS SHALL BE CONSID-
   10  ERED  FRAUDULENT  PRACTICES  IN  VIOLATION  OF  APPLICABLE PROVISIONS OF
   11  SECTION ONE HUNDRED FOURTEEN OF THIS  ARTICLE  AND  INSURANCE  FRAUD  IN
   12  VIOLATION OF APPLICABLE PROVISIONS OF SECTION 176.05 OF THE PENAL LAW.
   13    (C)  IF DURING THE COURSE OF AN AUDIT CONDUCTED UNDER THIS SECTION, AN
   14  INSURANCE CARRIER OBTAINS INFORMATION  INDICATING  A  VIOLATION  OF  THE
   15  PROVISIONS  OF PARAGRAPH (B) OF THIS SUBDIVISION, THEN THE CARRIER SHALL
   16  REPORT SUCH INFORMATION TO THE BOARD.
   17    2. THIS SECTION SHALL NOT  APPLY  TO  EMPLOYERS  THAT  SELF-INSURE  OR
   18  EMPLOYERS THAT ARE MEMBERS OF A WORKERS' COMPENSATION GROUP SELF-INSURED
   19  TRUST.
   20    3.  FOR  THE  PURPOSES OF THIS SECTION, "CONSTRUCTION CLASS" MEANS THE
   21  WORK OR OCCUPATION DESCRIBED IN "GROUP 3" OF SUBDIVISION ONE OF  SECTION
   22  THREE OF THIS CHAPTER.
   23    S 2. This act shall take effect immediately.