HOUSE BILL No. 4209


     February 9, 1999, Introduced by Reps. Basham, Prusi, Bogardus, DeHart and Schermesser and referred to the Committee on Employment Relations, Training and Safety.


        A bill to amend 1969 PA 317, entitled

   "Worker's disability compensation act of 1969,"

   by amending section 801 (MCL 418.801), as amended by 1994 PA

   271.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 801.  (1) Compensation shall be paid promptly and

 2    directly to the person entitled  thereto  and shall become due

 3    and payable on the fourteenth day after the employer has notice

 4    or knowledge of the disability or death, on which date all com-

 5    pensation then accrued shall be paid.  Thereafter compensation

 6    shall be paid in weekly installments.  COMPENSATION OR A LUMP SUM

 7    REQUIRED TO BE PAID UNDER A SETTLEMENT OR REDEMPTION AGREEMENT IS

 8    DUE AND OWING ON THE DATE OF THE SETTLEMENT OR REDEMPTION

 9    AGREEMENT, AND IS PAYABLE IN ACCORDANCE WITH THE TERMS OF THE

10    SETTLEMENT OR REDEMPTION AGREEMENT. Every carrier shall keep a


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 1    record of all payments made under this act and of the time and

 2    manner of making the payments and shall furnish reports, based

 3    upon these records, to the bureau as the director may reasonably

 4    require.

 5         (2) If weekly compensation benefits,  or  accrued weekly

 6    benefits,  are  BENEFITS UNDER A SETTLEMENT, OR A LUMP SUM UNDER

 7    A REDEMPTION AGREEMENT IS not paid within 30 days after becoming

 8    due and payable, in cases where there is not an ongoing dispute,

 9    $50.00 per day shall be added and paid to the worker for each day

10    over 30 days in which the benefits are not paid.  Not  HOWEVER,

11    FOR A DELAY IN PAYING WEEKLY COMPENSATION BENEFITS OR ACCRUED

12    WEEKLY BENEFITS, NOT more than $1,500.00 in total may be added

13     pursuant to  UNDER this subsection.

14         (3) If medical bills or travel allowance are not paid within

15    30 days after the carrier has received notice of nonpayment by

16    certified mail, in cases where there is no ongoing dispute,

17    $50.00 or the amount of the bill due, whichever is less, shall be

18    added and paid to the worker for each day over 30 days in which

19    the medical bills or travel allowance are not paid.  Not more

20    than $1,500.00 in total may be added  pursuant to  UNDER this

21    subsection.

22         (4) For purposes of rate-making, daily charges paid under

23    subsection (2) shall not constitute elements of loss.

24         (5) An employer who has notice or knowledge of the disabil-

25    ity or death and fails to give notice to the carrier shall pay

26    the penalty provided  for in  UNDER subsection (2) for the period

27    during which the employer failed to notify the carrier.



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 1         (6) When weekly compensation is paid  pursuant to  UNDER an

 2    award of a worker's compensation magistrate, an arbitrator, the

 3    board, the appellate commission, or a court, interest on the com-

 4    pensation shall be paid at the rate of 10% per annum from the

 5    date each payment was due, until paid.














































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