HB1015: HB1015 Self-insurers Guaranty Trust Fund; revise certain funded levels

26 LC 52 0978/AP House Bill 1015 (AS PASSED HOUSE AND SENATE) By: Representative Werkheiser of the 157th A BILL TO BE ENTITLED AN ACT To amend Article 10 of Chapter 9 of Title 34 of the Official Co de of Georgia Annotated,1 relating to the Self-insurers Guaranty Trust Fund regarding workers' compensation, so as to2 revise certain funded levels of such fund; to repeal conflicting laws; and for other purposes.3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:4 SECTION 1.5 Article 10 of Chapter 9 of Title 34 of the Official Code of Georgia Annotated, relating to the 6 Self-insurers Guaranty Trust Fund regarding workers' compensati on, is amended in Code7 Section 34-9-386, relating to assessment of participants, liability of fund and participants for8 claims, and revocation of participant's authority to be self-insured, by revising subsection (a)9 as follows:10 "(a)(1) The board of trustees shall, commencing January 1, 1991, assess each participant11 in accordance with paragraph (2) of this subsection. Upon reaching a funded level of $1512 $25 million net of all liabilities, all annual assessments against participants who have paid13 at least three prior assessments shall cease except as specifically provided in paragraph14 (4) of this subsection.15 H. B. 1015 - 1 - 26 LC 52 0978/AP (2) Assessment for each new participant in the first calendar year of participation shall16 be $8,000.00. Thereafter, assessments shall be in accordance with paragraphs (3) and (4)17 of this subsection.18 (3) After the first calenda r year of participation, the annual assessment of each19 participant shall be made on the basis of a percentage of the t otal of indemnity and20 medical benefits paid by, or on behalf of, the participant duri ng the previous calendar21 year. Except as provided in paragraph (2) of this subsection for the first calendar year of22 participation and paragraph (4) of this subsection, a participa nt will be assessed 1.523 percent of the medical and indemnity benefits paid by that participant during the previous24 calendar year or $2,000.00, whichever is greater. The maximum amount of annual25 assessments under this paragraph, not including those special assessments provided for26 in paragraph (4) of this subsection, in any calendar year again st a participant shall be27 $8,000.00.28 (4) If the fund is reduced to an amount below $5 $10 million net of all liabilities as the29 result of the payment of claims, the administration of claims, or the costs of30 administration of the fund, the board of trustees may levy a sp ecial assessment against31 participants upon approval by the board, according to the same procedure for assessment32 set forth in paragraph (3) of this subsection, in an amount sufficient to increase the funded33 level to $5 million net of all liabilities; provided, however, that such special assessment34 in any calendar year against any one participant shall not exceed $8,000.00.35 (5) Funds obtained by such assessments shall be used only for the purposes set forth in36 this article and shall be deposited upon receipt by the board of trustees into the fund. If37 payment of any assessment, penalty, or fine made under this article is not made within38 30 days of the sending of the notice to the participant, the board of trustees is authorized39 to do any or all of the following:40 (A) Levy fines or penalties;41 H. B. 1015 - 2 - 26 LC 52 0978/AP (B) Proceed in court for judgment against the participant, including the amount of the42 assessment, fines, penalties, the costs of suit, interest, and reasonable attorneys' fees;43 (C) Proceed directly against the security pledged by the participant for the collection44 of same; or45 (D) Seek revocation of the participant's self-insured status."46 SECTION 2.47 All laws and parts of laws in conflict with this Act are repealed.48 H. B. 1015 - 3 -