|SAME AS||No same as|
|Add S112-a, Work Comp L|
|Provides incentives for productive workers' compensation audits.|
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STATE OF NEW YORK ________________________________________________________________________ 5376--B 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. LBD11025-08-4S. 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.