S05376 Summary:

BILL NO    S05376A

SAME AS    SAME AS A07921-A

SPONSOR    SEWARD

COSPNSR    

MLTSPNSR   

Add S112-a, Work Comp L

Provides incentives for productive workers' compensation audits.
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S05376 Memo:

Memo not available
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S05376 Text:

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________

                                        5376--A

                              2013-2014 Regular Sessions

                                   I N  S E N A T E

                                     May 16, 2013
                                      ___________

       Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
         printed to be  committed  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

        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11025-02-3
       S. 5376--A                          2

    1  RECORDS NECESSARY FOR A PAYROLL VERIFICATION AUDIT, INCLUDING A PHYSICAL
    2  INSPECTION OF THE EMPLOYER'S OPERATION, THE EMPLOYER SHALL PAY AN  ADDI-
    3  TIONAL  PREMIUM  TO THE CARRIER OF THREE TIMES THE MOST RECENT ESTIMATED
    4  ANNUAL PREMIUM.
    5    (B)  IF  AN  EMPLOYER  KNOWINGLY  UNDERSTATES  OR  KNOWINGLY  CONCEALS
    6  PAYROLL, KNOWINGLY MISREPRESENTS OR KNOWINGLY CONCEALS  EMPLOYEE  DUTIES
    7  SO  AS TO AVOID PROPER CLASSIFICATION FOR PREMIUM CALCULATIONS, OR KNOW-
    8  INGLY MISREPRESENTS OR KNOWINGLY CONCEALS INFORMATION PERTINENT  TO  THE
    9  COMPUTATION AND APPLICATION OF AN EXPERIENCE RATING MODIFICATION FACTOR,
   10  SAID KNOWING MISREPRESENTATIONS OR KNOWING CONCEALMENTS SHALL BE CONSID-
   11  ERED  FRAUDULENT  PRACTICES  IN  VIOLATION  OF  APPLICABLE PROVISIONS OF
   12  SECTION ONE HUNDRED FOURTEEN OF THIS  ARTICLE  AND  INSURANCE  FRAUD  IN
   13  VIOLATION OF APPLICABLE PROVISIONS OF SECTION 176.05 OF THE PENAL LAW.
   14    (C)  IF DURING THE COURSE OF AN AUDIT CONDUCTED UNDER THIS SECTION, AN
   15  INSURANCE CARRIER OBTAINS INFORMATION  INDICATING  A  VIOLATION  OF  THE
   16  PROVISIONS  OF PARAGRAPH (B) OF THIS SUBDIVISION, THEN THE CARRIER SHALL
   17  REPORT SUCH INFORMATION TO THE BOARD.
   18    2. THIS SECTION SHALL NOT  APPLY  TO  EMPLOYERS  THAT  SELF-INSURE  OR
   19  EMPLOYERS THAT ARE MEMBERS OF A WORKERS' COMPENSATION GROUP SELF-INSURED
   20  TRUST.
   21    3.  FOR  THE  PURPOSES OF THIS SECTION, "CONSTRUCTION CLASS" MEANS THE
   22  WORK OR OCCUPATION DESCRIBED IN "GROUP 3" OF SUBDIVISION ONE OF  SECTION
   23  THREE OF THIS CHAPTER.
   24    S 2. This act shall take effect immediately.
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