S05376 Summary:

SAME ASNo same as
Add S112-a, Work Comp L
Provides incentives for productive workers' compensation audits.
Go to top

S05376 Memo:

Memo not available
Go to top

S05376 Text:

                STATE OF NEW YORK
            Cal. No. 385
                               2013-2014 Regular Sessions
                    IN SENATE
                                      May 16, 2013
        Introduced  by  Sens.  SEWARD, AVELLA -- read twice and ordered printed,
          and when printed to be committed to the Committee on Labor --  commit-
          tee  discharged, bill amended, ordered reprinted as amended and recom-
          mitted to said committee -- recommitted to the Committee on  Labor  in

          accordance  with Senate Rule 6, sec. 8 -- reported favorably from said
          committee, ordered to first and second  report,  ordered  to  a  third
          reading,  amended  and  ordered  reprinted, retaining its place in the
          order of third reading
        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    §  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 may  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 of
    15  all employers shall be conducted no more than one  hundred  twenty  days

    16  after the expiration of a policy period.  At the completion of an audit,
    17  if  requested by the auditor, the employer or officer of the corporation
    18  must print and sign their names on  the  audit  document  affirming  the
    19  accuracy of the information provided therein. As required by section one
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 5376--B                          2
     1  hundred twelve of this article, employers shall make available all books
     2  and  records necessary for the payroll verification audit and permit the

     3  auditor to make a physical inspection of the employer's operation.    If
     4  an  employer  fails  to  provide reasonable access to all such books and
     5  records necessary for a payroll verification audit, including a physical
     6  inspection of  the  employer's  operation,  the  employer  shall  pay  a
     7  surcharge  to  the carrier of two times the most recent estimated annual
     8  premium.
     9    (b) Employers that fail to provide reasonable access  to  the  carrier
    10  for the purpose of conducting an audit shall be reported to the New York
    11  compensation insurance rating board.
    12    (c)  If  an  employer  knowingly  understates  or  knowingly  conceals
    13  payroll, knowingly misrepresents or knowingly conceals  employee  duties

    14  so  as to avoid proper classification for premium calculations, or know-
    15  ingly misrepresents or knowingly conceals information pertinent  to  the
    16  computation and application of an experience rating modification factor,
    17  said knowing misrepresentations or knowing concealments shall be consid-
    18  ered  fraudulent  practices  in  violation  of  applicable provisions of
    19  section one hundred fourteen of this  article  and  insurance  fraud  in
    20  violation of applicable provisions of section 176.05 of the penal law.
    21    (d)  If during the course of an audit conducted under this section, an
    22  insurance carrier obtains information  indicating  a  violation  of  the
    23  provisions  of paragraph (c) of this subdivision, then the carrier shall

    24  report such information to the board.
    25    2. This section shall not  apply  to  employers  that  self-insure  or
    26  employers that are members of a workers' compensation group self-insured
    27  trust.
    28    3.  For  the  purposes of this section, "construction class" means the
    29  work or occupation described in "Group 3" of subdivision one of  section
    30  three of this chapter.
    31    § 2. This act shall take effect January 1, 2015.
Go to top