Bill Text: OR SB96 | 2013 | Regular Session | Enrolled
Bill Title: Relating to exemption from security requirements for self-insured employer groups.
Sponsorship: Partisan Bill (Republican 1)
Status: (Passed) 2013-07-02 - Effective date, January 1, 2014. [SB96 Detail]
Download: Oregon-2013-SB96-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 96
Sponsored by Senator THOMSEN (Presession filed.)
CHAPTER ................
AN ACT
Relating to exemption from security requirements for self-insured
employer groups; amending ORS 656.407.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 656.407 is amended to read:
656.407. (1) An employer shall establish proof with the
Director of the Department of Consumer and Business Services that
the employer is qualified either:
(a) As a carrier-insured employer by causing proof of coverage
provided by an insurer to be filed with the director; or
(b) As a self-insured employer by establishing proof that the
employer has an adequate staff qualified to process claims
promptly and has the financial ability to make certain the prompt
payment of all compensation and other payments that may become
due to the director under this chapter.
(2) Except as provided in subsection (3) of this section, a
self-insured employer shall establish proof of financial ability
by providing security that the director determines acceptable by
rule. The security must be in an amount reasonably sufficient to
insure payment of compensation and other payments that may become
due to the director but not less than the employer's normal
expected annual claim liabilities and in no event less than
$100,000. In arriving at the amount of security required under
this subsection, the director may take into consideration the
financial ability of the employer to pay compensation and other
payments and probable continuity of operation. The security shall
be held by the director to secure the payment of compensation for
injuries to subject workers of the employer and to secure other
payments that may become due from the employer to the director
under this chapter. Moneys received as security under this
subsection shall be deposited with the State Treasurer in an
account separate and distinct from the General Fund. Interest
earned by the account shall be credited to the account. The
amount of security may be increased or decreased from time to
time by the director.
(3)(a) A city { - or - } { + , + } county { + or a
qualified self-insured employer group + } that wishes to be
exempt from subsection (2) of this section may make written
application therefor to the director. The application shall
include a copy of the { - city's or county's - } most recent
annual audit { + of the city, county or qualified self-insured
employer group + } { - as - } filed with the Secretary of
State under ORS 297.405 to 297.740, information regarding the
Enrolled Senate Bill 96 (SB 96-A) Page 1
establishment of a loss reserve account for the payment of
compensation to injured workers and such other information as the
director may require. The director shall approve the application
and the city { - or - } { + , + } county { + or qualified
self-insured employer group + } shall be exempt from subsection
(2) of this section if the director finds that:
(A) The city { + , + } { - or - } county { + or qualified
self-insured employer group + } has been { - a - }
self-insured { - employer - } in compliance with subsection
(2) of this section for more than three consecutive years prior
to making the application referred to in this subsection { - as
an independently self-insured employer and not as part of a
self-insured group - } .
(B) The city { - or - } { + , + } county { + or qualified
self-insured employer group + } has in effect a loss reserve
account:
(i) That is actuarially sound and that is adequately funded as
determined by an annual audit under ORS 297.405 to 297.740 to pay
all compensation to injured workers and amounts due the director
pursuant to this chapter. A copy of the annual audit shall be
filed with the director. Upon a finding that there is probable
cause to believe that the loss reserve account is not actuarially
sound, the director may require a city { - or - } { + , + }
county { + or qualified self-insured employer group + } to
obtain an independent actuarial audit of the loss reserve
account. The requirements of this subsection are in addition to
and not in lieu of any other audit or reporting requirement
otherwise prescribed by or pursuant to law.
(ii) That is dedicated to and may be expended only for the
payment of compensation and amounts due the director by the city
{ - or - } { + , + } county { + or qualified self-insured
employer group + } under this chapter.
(b) The director shall have the first lien and priority right
to the full amount of the loss reserve account required to pay
the present discounted value of all present and future claims
under this chapter.
(c) The city { - or - } { + , + } county { + or qualified
self-insured employer group + } shall notify the director no
later than 60 days prior to any action to discontinue the loss
reserve account. The city { - or - } { + , + } county { + or
qualified self-insured employer group + } shall advise the
director of the { - city's or county's - } plans { + of the
city, county or qualified self-insured employer group + } to
submit the security deposits required in subsection (2) of this
section, or obtain coverage as a carrier-insured employer prior
to the date the loss reserve account ceases to exist. If the city
{ - or - } { + , + } county { + or qualified self-insured
employer group + } elects to discontinue self-insurance, it shall
submit such security as the director may require to insure
payment of all compensation and amounts due the director for the
period the city { - or - } { + , + } county { + or qualified
self-insured employer group + } was self-insured.
(d) In order to requalify as a self-insured employer, the city
{ - or - } { + , + } county { + or qualified self-insured
employer group + } must deposit prior to discontinuance of the
loss reserve account such security as is required by the director
pursuant to subsection (2) of this section.
(e) Notwithstanding ORS 656.440, if prior to the date of
discontinuance of the loss reserve account the director has not
received the security deposits required in subsection (2) of this
Enrolled Senate Bill 96 (SB 96-A) Page 2
section, the { - city's or county's - } certificate of
self-insurance { + of the city, county or qualified self-insured
employer group + } is automatically revoked as of that date.
{ + (4) As used in this section, 'qualified self-insured
employer group' means a self-insured employer group that is a
municipal corporation or a public corporation, as those terms are
defined in ORS 297.405. + }
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Passed by Senate April 3, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House June 12, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 96 (SB 96-A) Page 3
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 96 (SB 96-A) Page 4
