CHAPTER 296
HB 337 – FINAL VERSION
27Mar2007… 0632h
11Apr2007… 1133h
05/24/07 1653s
05/24/07 1777s
2007 SESSION
01/04
HOUSE BILL 337
AN ACT relative to penalties for failure to have workers’ compensation coverage and continually appropriating a special fund.
SPONSORS: Rep. Infantine, Hills 13; Rep. Bishop, Rock 2; Sen. Hassan, Dist 23
COMMITTEE: Labor, Industrial and Rehabilitative Services
This bill:
I. Changes the penalty assessment period for an employer who is in noncompliance with the workers’ compensation law.
II. Changes the amount of the civil penalty assessed on an insurance carrier for failure to file notice of coverage.
III. Establishes a special fund into which some of the civil penalties are to be deposited.
IV. Repeals the special fund in 2011 at which time the civil penalties shall go to the general fund.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
27Mar2007… 0632h
11Apr2007… 1133h
05/24/07 1653s
05/24/07 1777s
07-0950
01/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to penalties for failure to have workers’ compensation coverage and continually appropriating a special fund.
Be it Enacted by the Senate and House of Representatives in General Court convened:
296:1 Liability of Employer Failing to Comply; Penalty Assessment Period Changed; Fund Established. RSA 281-A:7, I is repealed and reenacted to read as follows:
I.(a)(1) An employer subject to this chapter who fails to comply with the provisions of RSA 281-A:5 by not securing payment of compensation may be assessed a civil penalty of up to $2,500; in addition, such an employer may be assessed a civil penalty of up to $100 per employee for each day of noncompliance. The penalties shall be assessed from the first day of the infraction not to exceed one year. Notwithstanding any provision of law to the contrary, any person with control or responsibility over decisions to disburse funds and salaries and who knowingly failed to secure payment of workers’ compensation under this chapter shall be held personally liable for the payment of penalties under this chapter.
(2) There is hereby established a nonlapsing workers’ compensation fraud fund in the office of the state treasurer. All funds collected under subparagraph I(a)(1) shall be deposited in such fund and continually appropriated to the commissioner of labor to be used for investigations and compliance activities required under this subparagraph and related sections pertaining to labor and insurance law. Any amounts over $400,000 in the fund shall lapse into the general fund on June 30 of each year.
(b) An insurance carrier which insures an employer and fails to file with the commissioner a notice of coverage within a reasonable period of time as prescribed by rule shall be assessed a civil penalty of up to $50 for each day of noncompliance. The commissioner shall deposit all moneys collected under this subparagraph with the state treasurer for deposit into the general fund.
296:2 Report. The commissioner of the department of labor shall make a report relative to the effectiveness of the fund established in RSA 281-A:7, I(a)(2) as inserted by section 1 of this act, together with any recommendations for legislation, to the speaker of the house of representatives, the president of the senate, and the governor on or before November 1, 2010.
296:3 Administration Fund; Reference Change. Amend RSA 281-A:59, IV to read as follows:
IV. The civil penalties collected under RSA 281-A:7, I(b), 23, 24, 42, 43, and 53 shall be forwarded to the state treasurer and deposited in the general fund.
296:4 New Subparagraph; Workers’ Compensation Fraud Fund. Amend RSA 6:12, I by inserting after subparagraph (252) the following new subparagraph:
(253) Moneys deposited in the workers’ compensation fraud fund established in RSA 281-A:7, I(a)(2).
296:5 Liability of Employer Failing to Comply; Penalty Assessment. RSA 281-A:7, I(a)(2) is repealed and reenacted to read as follows:
(2) All funds collected under subparagraph I(a)(1) shall be deposited into the general fund.
296:6 Repeal. RSA 6:12, I(253) relative to the workers’ compensation fraud fund is, repealed.
296:7 Effective Date.
I. Sections 5 and 6 of this act shall take effect July 1, 2011.
II. The remainder of this act shall take effect 30 days after its passage.
Approved: July 13, 2007
Effective: I. Sections 5 and 6 shall take effect July 1, 2011.
II. Remainder shall take effect August 12, 2007.