It is enacted by the General Assembly as follows:

SECTION 1. Sections 28-29-2, 28-29-7, 28-29-13, 28-29-17, and 28-29-19 of the General Laws in Chapter 28-29 entitled "Workers' Compensation - General Provisions" are hereby amended to read as follows:

28-29-2. Definitions -- In chapters 29 -- 38 of this title, unless the context otherwise requires:

(1) "Department" means the department of labor and training.

(2) "Director" means the director of labor and training or his or her designee unless specifically stated otherwise.

(3) (i) "Earnings capacity" means the weekly straight time earnings which an employee could receive if the employee accepted an actual offer of suitable alternative employment. Earnings capacity can also be established by the court based on evidence of ability to earn, including, but not limited to, a determination of the degree of functional impairment and/or disability, that an employee is capable of employment. The court may, in its discretion, take into consideration the performance of the employee's duty to actively seek employment in scheduling the implementation of the reduction. The employer need not identify particular employment before the court can direct an earnings capacity adjustment. In the event that an employee returns to light duty employment while partially disabled, an earnings capacity shall not be set based upon actual wages earned until the employee has successfully worked at light duty for a period of at least thirteen (13) weeks.

(ii) As used in chapters 29 -- 38 of this title, the term "functional impairment" means an anatomical or functional abnormality existing after the date of maximum medical improvement as determined by a medically or scientifically demonstrable finding and based upon the most recent edition of the American Medical Association's Guide to the Evaluation of Permanent Impairment or comparable publications of the American Medical Association.

(iii) In the event that an employee returns to employment at an average weekly wage equal to the employee's pre-injury earnings exclusive of overtime, the employee will be presumed to have regained his/her earning capacity.

(4) "Employee" means any person who has entered into the employment of or works under contract of service or apprenticeship with any employer, except that in the case of a city or town other than the city of Providence it only means that class or those classes of employees that may be designated by a city, town, or regional school district in a manner as provided in this section, to receive compensation under chapters 29 -- 38 of this title. It does not include any partner, sole proprietor, independent contractor, or the president, one vice president, secretary, and/or treasurer of a corporation, or a person whose employment is of a casual nature, and who is employed otherwise than for the purpose of the employer's trade or business, or a person whose services are voluntary or who performs charitable acts, nor does it include the members of the regularly organized fire and police departments of any town or city. Whenever a contractor has contracted with the state, a city, town, or regional school district any person employed by that contractor in work under contract is not deemed an employee of the state, city, town, or regional school district as the case may be. Any person who on or after January 1, 1999, is was an employee and becomes became a corporate officer remains an employee, for purposes of these chapters, unless and until coverage under these chapters is waived pursuant to subsection 28-29-8(b) or section 28-29-17. Any person who is appointed a corporate officer between January 1, 1999 and December 31, 2001, and was not previously an employee of the corporation, will not be considered an employee, for purposes of these chapters, unless that corporate officer has filed a notice pursuant to subsection 28-29-19(b). In the case of a person whose services are voluntary or who performs charitable acts, any benefit received, in the form of monetary remuneration or otherwise, is reportable to the appropriate taxation authority but is not deemed to be wages earned under contract of hire for purposes of qualifying for benefits under chapters 29 -- 38 of this title. Any reference to an employee who had been injured, where the employee is dead, includes a reference to his or her dependents as defined in these chapters, or to his or her legal representatives, or, where he or she is a minor or incompetent, to his or her conservator or guardian. A "seasonal occupation" means those occupations in which work is performed on a seasonal basis of not more than sixteen (16) weeks.

(5) "Employer" includes any person, copartnership, corporation, or voluntary association, and the legal representative of a deceased employer; it includes the state, and the city of Providence. It also includes each city, town, and regional school district in the state and the city of Providence that votes or accepts chapters 29 -- 38 of this title in the manner provided in these chapters.

(6) "General or special employer":

(i) A general employer includes, but is not limited to, temporary help companies and employee leasing companies and means a person who, for consideration and in the regular course of its business, supplies an employee with or without vehicle to another person.

(ii) A special employer means a person who contracts for services with a general employer for the use of an employee, a vehicle, or both.

(iii) Whenever there is a general employer and special employer and the general employer supplies to the special employer an employee and the general employer pays or is obligated to pay the wages or salaries of the supplied employee, in that event, notwithstanding the fact that direction and control is in the special employer and not the general employer, the general employer, if he or she is subject to the Workers' Compensation Act or has accepted that act, is deemed to be the employer as set forth in subdivision (5) and both the general and special employer are the employer for purposes of sections 28-29-17 and 28-29-18.

(7) "Independent contractor" means a person who has filed a notice of designation as independent contractor with the director pursuant to section 28-29-17.1 or as otherwise found by the workers' compensation court.

(8) (i) "Injury" means and refers to personal injury to an employee arising out of and in the course of his or her employment connected with and referable to his or her employment.

(ii) An injury to an employee while voluntarily participating in a private, group, or employer sponsored carpool, vanpool, commuter bus service, or other rideshare program, having as its sole purpose the mass transportation of employees to and from work is not deemed to have arisen out of and in the course of employment. Nothing in this subdivision shall be held to deny benefits under chapters 29 -- 38 and chapter 47 of this title to employees such as drivers, mechanics, and others who receive remuneration for their participation in the rideshare program; provided, that the provisions of this subdivision do not bar the right of an employee to recover against an employer and/or driver for tortious misconduct.

(9) "Maximum medical improvement" means a point in time when any medically determinable physical or mental impairment as a result of injury has become stable and when no further treatment is reasonably expected to materially improve the condition. Neither the need for future medical maintenance nor the possibility of improvement or deterioration resulting from the passage of time and not from the ordinary course of the disabling condition, nor the continuation of a pre-existing condition shall preclude a finding of maximum medical improvement. A finding of maximum medical improvement by the workers' compensation court may be reviewed only where it is established that an employee's condition has substantially deteriorated or improved.

(10) "Physician" means medical doctor, surgeon, dentist, licensed psychologist, chiropractor, osteopath, podiatrist, or optometrist, as the case may be.

(11) "Suitable alternative employment" means employment or an actual offer of employment which the employee is physically able to perform and will not exacerbate the employee's health condition and which bears a reasonable relationship to the employee's qualifications, background, education, and training. The employee's age alone is not considered in determining the suitableness of the alternative employment.

28-29-7. Domestic and farm laborers -- Small employers 28-29-7. Domestic and farm laborers. -- Domestic servants, farmers, farm laborers, except as defined in section 28-29-7.2, are not subject to chapters 29 -- 38 of this title.

28-29-13. Posting of summaries of law -- (a) Every employer subject to or who elects to become subject to chapters 29 -- 38 of this title shall display a copy of the summary of the major provisions of the Workers' Compensation Act in conspicuous places in which workers are employed.

(b) Any employer who refuses fails to post the summaries required in this section is subject to prosecution for a misdemeanor and upon conviction may be punished by a fine of not more than one hundred dollars ($100.00) for each day the summaries are not posted in accordance with this section. shall be assessed a penalty of two hundred and fifty dollars ($250) per offense.

(c) The attorney general shall prosecute all criminal actions for any violation of this chapter. director, in his or her discretion, may bring a civil action to collect all penalties assessed. The workers' compensation court shall have jurisdiction to enforce compliance with any order of the director made pursuant to this section.

28-29-17. Waiver of common law rights -- Notice of claim of common law right -- An employee or corporate officer of an employer subject to or who has elected to become subject to chapters 29 -- 38 of this title as provided in section 28-29-8 is held to have waived his or her right of action at common law to recover damages for personal injuries if he or she has not given his or her employer at the time of his or her contract of hire or appointment notice in writing that he or she claims that right and within ten (10) days thereafter has filed a copy of the notice with the director, or, if the contract of hire or appointment was made before the employer became subject to or elected to become subject to those chapters, if the employee or corporate officer has not given the notice and filed it with the director within ten (10) days after the filing by the employer who is subject to or who has elected to become subject to those chapters of the written statement as provided. That waiver continues in force for the term of one year, and after that year, without further act on his or her part, for successive terms of one year each, unless the employee or corporate officer, at least sixty (60) days prior to the expiration of the first or any succeeding year, files with the director a notice in writing to the effect that he or she desires to claim his or her right of action at common law and within ten (10) days after that notice gives notice of the claim to his or her employer.

28-29-19. Waiver of claim of common law rights -- (a) Any employee, or corporate officer, or the parent or guardian of any minor employee, who has given notice to the employer that he or she claimed his or her right of action at common law may waive that claim by a notice in writing which takes effect five (5) days after the delivery to the employer or his or her agent.

(b) Any corporation officer may elect to become subject to chapters 29 -- 38 of this title upon filing a notice in writing with the director which notice takes effect five (5) days after the filing of his or her notice.

SECTION 2. Sections 28-30-2, 28-30-4.1 and 28-30-22 of the General Laws in Chapter 28-30 entitled "Workers' Compensation Court" are hereby amended to read as follows:

28-30-2. Appointment and terms of judges -- (a) Any workers' compensation commissioner who was appointed and confirmed and who took the oath of that office and is holding that office on July 11, 1990, shall continue to remain in the office of workers' compensation judge in accordance with the general laws. The appointment and confirmation as workers' compensation judges and chief judge of those judges who took their oath of office and are holding the office on July 11, 1990, is ratified and confirmed.

(b) Whenever there is a vacancy in the office of chief judge of the workers' compensation court, or whenever the chief judge is unable by reason of illness to perform the duties of chief judge, then the workers' compensation judge having precedence who is present and qualified to act shall perform the duties of chief judge until the vacancy is filled or the inability removed. the chief justice of the Rhode Island supreme court shall designate one (1) of the judges of the workers' compensation court who is present and qualifies to act to perform the duties of the chief judge until the vacancy is filled or the disability removed. In the event that the chief judge determines that his or her absence for reasons other than illness will prevent him or her from performing the duties of that office, then the chief judge shall designate a workers' compensation judge to perform those duties during the period of his or her absence. The workers' compensation judges holding office on July 11, 1990, or appointed after that date have has precedence according to the dates of their commissions, or where the commissions of two (2) or more of them bear the same date, according to their ages.

(c) With the approval of the chief judge, the judges of the court may appoint attorneys who are qualified as arbitrators under the court annexed arbitration procedures to act as masters and make findings under the supervision of the appointing judge. With the approval of the chief judge, unless specifically prohibited by chapter 27 of title 11, the judges may authorize the appearance of claims adjusters or lay representatives before the masters.

28-30-4.1. Deputy administrator -- Appointment and term of office -- There is a deputy administrator of the workers' compensation court who shall be appointed by the administrator of the workers' compensation court with the approval of a majority of the judges. Beginning in January, 1990 2002, and during the month of January in every twelfth (12th) fifth (5^th) year thereafter, the administrator, with the approval of a majority of the judges, shall appoint a deputy administrator of the court to serve for a period of twelve (12) five (5) years, commencing on the first day of February next following and thereafter until his or her successor is appointed and qualified.

28-30-22. Medical advisory board -- (a) The chief judge of the workers' compensation court, in consultation with the appropriate medical or professional association, shall appoint a medical advisory board which serves at the chief judge's pleasure and consists of eleven (11) members in the following specialties: one orthopedic surgeon; one neurologist; one neurosurgeon; one physiatrist; one chiropractor; one physical therapist; one internist; one psychiatrist or psychologist; and three (3) ad hoc physician members appointed at the discretion of the chief judge. Members of the board shall be reimbursed two hundred dollars ($200) three hundred dollars ($300) per day served in the discharge of the board's duties, not to exceed five thousand dollars ($5,000) six thousand dollars ($6,000) per member in any year. The chief judge designates the chairperson of the board.

(b) The chief judge is authorized, with the advice of the medical advisory board, to do the following:

(1) (i) Adopt and review protocols and standards of treatment for compensable injury, which address types, frequency, modality, duration, and termination of treatment, and types and frequency of diagnostic procedures.

(ii) Within thirty (30) days of its establishment, the medical advisory board prepares a recommended standard for the consideration and weighing by the court of medical evidence, including, but not limited to, medical test results, objective clinical findings, subjective complaints supported by tests for inconsistency, and purely subjective complaints, with the purposes of assuring treatment and compensation for legitimate compensable injuries, reducing litigation, inefficiency, and delay in court proceedings, and deterring false or exaggerated claims of injury. The standards are applicable to proceedings before the workers' compensation court, including specifically those to determine the nature and extent of injury and the achievement of maximum medical improvement, and are effective in all proceedings when adopted by the court.

(2) Approve and promulgate rules, regulations, and procedures concerning the appointment and qualifications of comprehensive independent health care review teams which would be composed of any combination of one or more health care provider(s), rehabilitation expert(s), physical therapist(s), occupational therapist(s), psychologist(s), and vocational rehabilitation counselor(s).

(3) Approve and administer procedures to disqualify or disapprove medical service providers and maintain the approved provider list.

(4) Appoint an administrator of the medical advisory board.

(5) Approve and promulgate rules, regulations, and procedures concerning the appointment and qualifications of impartial medical examiners.

(6) Annually review the performance of each comprehensive independent health care review team and impartial medical examiner.

(c) The administrator of the medical advisory board is authorized and directed to establish terms and conditions for comprehensive independent health care review teams and impartial medical examiners to apply for approval by the medical advisory board and to perform any other duties as directed by the board.

(d) Any reference to an impartial medical examiner in chapters 29 -- 38 of this title is deemed to include the impartial medical examiners and comprehensive independent health care review teams referred to in subsection (b).

(e) Disqualification of medical care providers. - (1) Every health care provider licensed in the state of Rhode Island is presumed to be qualified to provide health care services for injuries compensable under this title, and may recover costs of treatment consistent with established fee and cost schedules. The administrator of the medical advisory board is thereafter authorized to disqualify and/or suspend any qualified provider based upon one or more of the following:

(i) The violation of the protocols and standards of care established by the medical advisory board;

(ii) The filing of affidavits that are untimely, inadequate, incomplete, or untruthful;

(iii) The provision of unnecessary and/or inappropriate treatment;

(iv) A pattern of violation and/or evasion of an approved fee schedule;

(v) The censure or discipline of the provider by the licensing body of the provider's profession;

(vi) The billing of, or pursuing collection efforts against, the employee for treatment or diagnostic tests causally related to an injury not deemed noncompensable by the workers' compensation court.

(2) Upon disqualification or during suspension, the provider shall not be permitted to recover any costs or fees for treatment provided under this title. The appropriate body with professional disciplinary authority over the provider shall be notified of any action. Appeal of disqualification or suspension is to the medical advisory board, with final review by the workers' compensation court.

(3) If unnecessary or inappropriate treatment is provided by an entity affiliated with the treating physician, the administrator of the medical advisory board may increase the penalty for a violation.

(4) This section does not prevent the recovery of reasonable costs for immediate emergency care rendered by a provider.

(f) As a guide to the interpretation and application of this section, the policy and intent of this legislature is declared to be that every person who suffers a compensable injury with resulting disability should be provided with high quality medical care and the opportunity to return to gainful employment as soon as possible with minimal dependence on compensation awards.

SECTION 3. Section 28-32-2 of the General Laws in Chapter 28-32 entitled "Workers' Compensation-Report of Injuries" is hereby amended to read as follows:

28-32-2. Penalty for failure to report -- (a) Any employer who refuses or neglects to make the reports required by section 28-32-1 shall be punished by a fine of one hundred dollars ($100.00) for each offense. may be assessed a penalty of two hundred fifty dollars ($250) by the director for each refusal or neglect to make a report. The fine is assessed against the employer by the director.

(b) The district court for the county of Providence has jurisdiction to enforce compliance with any order of the director made pursuant to this section. The attorney general shall prosecute the actions to enforce the payment of penalties at the request of the director. The director, in his or her discretion, may bring a civil action to collect all penalties assessed.

SECTION 4. Sections 28-33-5, 28-33-8, 28-33-18.2, 28-33-18.3, 28-33-19, and 28-33-47 of the General Laws in Chapter 28-33 entitled "Workers' Compensation - Benefits" are hereby amended to read as follows:

28-33-5. Medical services provided by employer -- The employer, subject to the choice of the employee as provided in section 28-33-8, promptly provides for an injured employee any reasonable medical, surgical, dental, optical, or other attendance or treatment, nurse and hospital service, medicines, crutches, and apparatus for the period that is necessary, in order to cure, rehabilitate or relieve the employee from the effects of his or her injury; provided, that no fee for major surgery shall be paid unless permission for it in writing is first obtained from the workers' compensation court, the employer, or the insurance carrier involved, except where compliance may prove fatal or detrimental to the employee. Irrespective of the date of injury, the liability of the employer for hospital service rendered under this chapter to the injured employee is the cost to the hospital of rendering the service at the time the service is rendered. The director, after consultations with representatives of hospitals, employers, and insurance companies, shall establish administrative procedures regarding the furnishing and filing of data and the time and method of billing and may accept as representing the costs for both routine and special services to patients, costs as computed for the federal medicare program. Each hospital licensed under chapter 16 of title 23 which renders services to injured employees under the Workers' Compensation Act, chapters 29 -- 38 of this title, submits and certifies to the director, in accordance with requirements of the administrative procedures established by him or her, its costs for those services. The employer also provides all medical, optical, dental, and surgical appliances and apparatus required to cure or relieve the employee from the effects of the injury, including, but not limited to, the following: ambulance and nursing service, eyeglasses, dentures, braces and supports, artificial limbs, crutches, and other similar appliances. ; provided, however, that the employer shall not be liable to pay for or provide hearing aids or other amplification devices.

28-33-8. Employee's choice of physician, dentist, or hospital -- Payment of charges -- Physician reporting schedule -- (a) (1) An injured employee has freedom of choice to obtain health care, diagnosis, and treatment from any qualified health care provider initially. The initial health care provider of record may, without prior approval, refer the injured employee to any qualified specialist for independent consultation or assessment, or specified treatment. If the insurer or self-insured employer has filed with the director of business regulation a preferred provider network approved by the medical advisory board, any change by the employee from the initial health care provider of record may only be to a health care provider listed in the approved preferred provider network. If the employee seeks to change to a health care provider not in the approved preferred provider network, the employee must obtain the approval of the insurer or self-insured employer. Nothing contained in this section shall prevent the treatment, care, or rehabilitation of an employee by more than one physician, dentist, or hospital. The employee's first visit to any facility providing emergency care or to a physician or medical facility under contract with or agreement with the employer or insurer to provide priority care does constitute the employee's initial choice to obtain health care, diagnosis or treatment.

(2) In addition to the treatment of qualified health care providers, the employee has the freedom to obtain a rehabilitation evaluation by a rehabilitation counselor certified by the director pursuant to section 28-33-41 in cases where the employee has received compensation for a period of more than three (3) months, and the employer shall pay the reasonable fees incurred by the rehabilitation counselor for the initial assessment.

(b) Within three (3) days of an initial visit following an injury, the health care provider shall provide to the insurer or self-insured employer, and the employee and his or her attorney a notification of compensable injury form to be approved by the administrator of the medical advisory board. Within three (3) days of the injured employee's release or discharge, return to work, and/or recovery from an injury covered by chapters 29 -- 38 of this title, the health care provider provides a notice of release to the insurer or self-insured employer and the employee and his or her attorney on a form approved by the division. A twenty dollar ($20.00) fee may be charged by the health care provider to the insurer or self-insured employer for the notification of compensable injury forms or notice of release forms or for affidavits filed pursuant to subsection (c), but only if filed timely. No claim for care or treatment by a physician, dentist, or hospital chosen by an employee is valid and enforceable against his or her employer, the employer's insurer, or the employee, unless the physician, dentist, or hospital gives written notice of the employee's choice to the employer/insurance carrier within fifteen (15) days after the beginning of the services or treatment. The health care provider shall present, in writing, to the employer or insurance carrier a final itemized bill for all unpaid services or treatment within three (3) months after the conclusion of services or treatment. The employee is not personally liable to pay any physician, dentist, or hospital bills in cases where the physician, dentist, or hospital has forfeited the right to be paid by the employer or insurance carrier because of noncompliance with this section.

(c) (1) Every six (6) weeks, until maximum medical improvement, any qualified physician or other health care professional providing medical care or treatment to any person for an injury covered by chapters 29 -- 38 of this title files an itemized bill and an affidavit with the insurer, the employee and his or her attorney, and the medical advisory board. A ten percent (10%) discount may be taken on the itemized bill affidavits not filed timely and received by the insurer one week or more late. The affidavit shall be on a form designed and provided by the administrator of the medical advisory board and shall state:

(i) The nature of the injury being treated;

(ii) The type of medical treatment provided to date, including type and frequency of treatment(s);

(iii) Anticipated further treatment including type, frequency, and duration of treatment(s), whether or not maximum medical improvement has been reached or when it is expected to be reached, and the anticipated date of discharge;

(iv) Whether the employee can return to the former position of employment or is capable of other work, specifying work restrictions and work capabilities and the degree of functional impairment and/or disability of the employee;

(v) Any ownership interest in any ancillary facility to which the patient has been referred for treatment of a compensable injury.

(2) The affidavit is admissible as an exhibit of the workers' compensation court with or without the appearance of the affiant.

(d) An "itemized bill", as referred to in this section, means a statement of charges, on a form HCFA 1500 or other form suitable to the insurer, which includes, but is not limited to, an enumeration of specific types of care provided, facilities or equipment used, services rendered, and appliances or medicines prescribed, for purposes of identifying the treatment given the employee with respect to his or her injury.

(e) (1) The treating physician shall furnish to the employee, or to his or her legal representative, a copy of his or her medical report within ten (10) days of the examination date.

(2) The treating physician shall notify the employer, and the employee and his or her attorney immediately when an employee is able to return to full or modified work.

(3) There shall be no charge for a health record when that health record is necessary to support any appeal or claim under the Workers' Compensation Act per section 23-17-19.1(16).

(f) (1) Compensation for medical expenses and other services under section 28-33-5, 28-33-7 or 28-33-8 is due and payable within twenty-one (21) days from the date a request is made for payment of these expenses by the provider of the medical services. In the event payment is not made within twenty-one (21) days from the date a request is made for payment, the provider of medical services may add, and the insurer or self-insurer shall pay, interest at the per annum rate as provided in section 9-21-10 on the amount due. The employee or the medical provider may file a petition with the administrator of the workers' compensation court, which petition shall follow the procedure as authorized in chapter 35 of this title.

(2) The twenty-one (21) day period in subsection (f)(1) begins on the date the insurer receives a request with appropriate documentation required to determine whether the claim is compensable and the payment requested is due.

28-33-18.2. Suitable alternative employment -- (a) When an employee has sustained an injury which entitles the employee to receive benefits pursuant to section 28-33-18 or 28-34-3, the employee may become capable of suitable alternative employment as determined by the workers' compensation court, or may be offered suitable alternative employment as agreed to by the employee and employer with written notice to the director. The employer or insurer shall pay an injured employee that accepts suitable alternative employment a weekly compensation equal to sixty-six and two-thirds percent (66 2/3%) of the difference between the employee's average weekly wage, earnings or salary before the injury and his or her weekly wages, earnings or salary from the suitable alternative employment.

(b) The acceptance of suitable alternative employment is not mandatory if it results in the inequitable forfeiture or loss of seniority with the employer or a monetary benefit or other substantial benefit including, but not limited to, vested pension and/or profit sharing contributions, arising from the employment relationship.

(c) If suitable alternative employment as determined by the workers' compensation court has been offered to the employee and the employee has refused to accept the employment, then the workers' compensation court, in fixing the amount of compensation payable subsequent to the refusal, treats earnings capacity as post-injury earnings, requiring the employer or insurer to pay the injured employee a weekly compensation equal to sixty-six and two-thirds percent (66 2/3%) of the difference between the employee's average weekly wage, earnings, or salary before the injury and the weekly earning capacity. In no case are increases in payments made to an injured employee pursuant to section 28-33-18.3(b)(1) or 28-33-17(f) considered in the calculation of the weekly compensation due pursuant to this section. The fact that the employee is undergoing rehabilitation does not by itself exempt the employee from the provisions of this subsection.

(d) If the suitable alternative employment is terminated by the employer for reasons other than misconduct by the employee, the injured employee is entitled to be compensated from the employer in whose employ he or she was injured at the rate to which the employee was entitled prior to acceptance of the employment after notice by the employee to the employer in whose employ he or she was injured. The payments are made no later than fourteen (14) days after the notice. If suitable alternative employment is terminated by the employer for misconduct of the employee, or by the employee, the compensation payable to the employee may not exceed that payable during continuance of suitable alternative employment. Upon request to the workers' compensation court, the employee has the right to a determination as to whether or not the termination was justified. Any employee who accepts suitable alternative employment with his or her employer of record continues to maintain the seniority status and all rights incidental to it that the employee enjoyed prior to his or her injury, except that these rights may not exceed the current rights of a similar employee with equal seniority.

28-33-18.3. Continuation of benefits -- Partial incapacity -- (a) (1) For all injuries occurring on or after September 1, 1990, in those cases where the employee has received a notice of intention to terminate partial incapacity benefits pursuant to section 28-33-18, the employee or his or her authorized representative may file with the workers' compensation court a petition for continuation of benefits on forms prescribed by the workers' compensation court. In any proceeding before the workers' compensation court on a petition for continuation of partial incapacity benefits, where the employee demonstrates by a fair preponderance of the evidence that his or her partial incapacity poses a material hindrance to obtaining employment suitable to his or her limitation, partial incapacity benefits shall continue. For injuries on and after July 1, 1995 July 1, 1997, the term "material hindrance" is defined to include only compensable injuries causing a greater than sixty-five percent (65%) degree of functional impairment and/or disability. Any period of time for which the employee has received benefits for total incapacity are not included in the calculation of the three hundred and twelve (312) week period.

(2) The provisions of this subsection apply to all injuries from September 1, 1990 to July 1, 1995 July 1, 1997.

(b) (1) Where any employee's incapacity is partial and has extended for more than three hundred and twelve (312) weeks and the employee has proved an entitlement to continued benefits under subsection (a), payments made to the incapacitated employee shall be increased annually on the tenth (10th) day of May as long as the employee remains incapacitated. The increase is by an amount equal to the total percentage increase in the annual consumer price index, United States city average for urban wage earners and clerical workers, as formulated and computed by the bureau of labor statistics of the United States department of labor for the period of March 1 to February 28 each year.

(2) The word "index" as used in this section refers to the consumer price index, United States city average for urban wage earners and clerical workers, as that index was formulated and computed by the bureau of labor statistics of the United States department of labor.

(3) The annual increase is based upon the percentage increase, if any, in the consumer price index for the month of a given year, over the index for February, the previous year. Thereafter, increases are made on May 10 annually, based upon the percentage increase, if any, in the consumer price index for the period of March 1 to February 28.

(4) These computations are made by the director of labor and training and promulgated to insurers and employers making payments required by this section. Increases are paid by insurers and employers without further order of the court. If payment payable under this section is not mailed within fourteen (14) days after the employer or insurer has been notified by publication in a newspaper of general circulation in the state it becomes due, an amount equal to twenty percent (20%) of the payment shall be added to the unpaid payment, which shall be paid at the same time as, but in addition to, the payment.

(5) This section applies only to payment of weekly indemnity benefits to employees as described in subsection (b)(1), and does not apply to specific compensation payments for loss of use or disfigurement or payment of dependency benefits or any other benefits payable under the Workers' Compensation Act.

(c) No petitions for commutation are allowed or entertained in those cases where an employee is receiving benefits pursuant to this section.

28-33-19. Additional compensation for specific injuries -- (a) (1) In case of the following specified injuries there is paid in addition to all other compensation provided for in chapters 29 to 38 of this title a weekly payment equal to one-half ( 1/2) of the average weekly earnings of the injured employee, but in no case more than ninety dollars ($90.00) nor less than forty-five dollars ($45.00) per week. Payment made under this section are made in a one time payment unless the parties otherwise agree. Payment shall be mailed within fourteen (14) days of the entry of a decree, order, or agreement of the parties:

(i) For the loss by severance of both hands at or above the wrist, or for the loss of the arm at or above the elbow or for the loss of the leg at or above the knee, or both feet at or above the ankle, or of one hand and one foot, or the entire and irrecoverable loss of the sight of both eyes, or the reduction to one-tenth ( 1/10) or less of normal vision with glasses, for a period of three hundred twelve (312) weeks; provided, that for the purpose of this chapter the Snellen chart reading20/200 equals one-tenth ( 1/10) of normal vision or a reduction of ninety percent (90%) of the vision; and provided, further, that any loss of visual performance including, but not limited to, loss of binocular vision, other than direct visual acuity may be considered in evaluating eye loss;

(ii) For the loss by severance of either arm at or above the elbow, or of either leg at or above the knee, for a period of three hundred twelve (312) weeks;

(iii) For the loss by severance of either hand at or above the wrist for a period of two hundred forty-four (244) weeks;

(iv) For the entire and irrecoverable loss of sight of either eye, or the reduction to one-tenth ( 1/10) or less of normal vision with glasses, or for loss of binocular vision for a period of one hundred sixty (160) weeks;

(v) For the loss by severance of either foot at or above the ankle, for a period of two hundred five (205) weeks;

(vi) For the loss by severance of the entire distal phalange of either thumb for a period of thirty-five (35) weeks; and for the loss by severance at or above the second joint of either thumb, for a period of seventy-five (75) weeks;

(vii) For the loss by severance of one phalange of either index finger, for a period of twenty-five (25) weeks; for the loss by severance of at least two (2) phalanges of either index finger, for a period of thirty-two (32) weeks; for the loss by severance of at least three (3) phalanges of either index finger, for a period of forty-six (46) weeks;

(viii) For the loss by severance of one phalange of the second finger of either hand, for a period of sixteen (16) weeks; for the loss by severance of two (2) phalanges of the second finger of either hand, for a period of twenty-two (22) weeks; for the loss by severance of three (3) phalanges of the second finger on either hand, for a period of thirty (30) weeks;

(ix) For the loss by severance of one phalange of the third finger of either hand, for a period of twelve (12) weeks; for the loss by severance of two (2) phalanges of the third finger of either hand, for a period of eighteen (18) weeks; for the loss by severance of three (3) phalanges of a third finger of either hand, for a period of twenty-five (25) weeks;

(x) For the loss by severance of one phalange of the fourth finger of either hand, for a period of ten (10) weeks; for the loss by severance of two (2) phalanges of the fourth finger of either hand, for a period of fourteen (14) weeks; for the loss by severance of three (3) phalanges of a fourth finger of either hand, for a period of twenty (20) weeks;

(xi) For the loss by severance of one phalange of the big toe on either foot, for a period of twenty (20) weeks; for the loss by severance of two (2) phalanges of the big toe of either foot, for a period of thirty-eight (38) weeks; for the loss by severance at or above the distal joint of any other toe than the big toe, for a period of ten (10) weeks for each toe; and

(xii) For the complete loss of hearing of either ear sixty (60) weeks; for the complete loss of hearing of both ears two hundred (200) weeks; provided, that the loss is due to external trauma.

(2) Where any bodily member or portion of it has been rendered permanently stiff or useless, compensation in accordance with the schedule contained in this section is paid as if the member or portion of the member had been severed completely; provided, that if the stiffness or uselessness is less than total, compensation is paid for that period of weeks in proportion to the period applicable in the event that the member or portion of a member has been severed completely as the instant percentage of stiffness or uselessness bears to the total stiffness or total uselessness of the bodily members or portion of the bodily member.

(3) In case of the following specified injuries there shall be paid in addition to all other compensation provided for in chapters 29 -- 38 under this title a weekly payment equal to one-half ( 1/2) of the average weekly earnings of the injured employee, but in no case more than ninety dollars ($90.00) nor less than forty-five dollars ($45.00) per week. Payment under this subsection is made in a one time payment unless the parties agree otherwise. Payment is mailed within fourteen (14) days of the entry of a decree, order, or agreement of the parties:

(i) For partial loss by severance for any of the injuries specified in subdivisions (a)(1)(i) -- (a)(1)(xii), proportionate benefits are paid for the period of time that the partial loss by severance bears to the total loss by severance; and (ii) For permanent disfigurement of the body the number of weeks may not exceed five hundred (500) weeks; this sum is payable in a one time payment within fourteen (14) days of the entry of a decree, order, or agreement of the parties in addition to all other sums under this section wherever it is applicable.

(4) (i) Loss of hearing due to industrial noise is recognized as an occupational disease for purposes of chapters 29 -- 38 of this title and occupational deafness is defined to be a loss of hearing in one or both ears due to prolonged exposure to harmful noise in employment. Harmful noise means sound capable of producing occupational deafness.

(ii) There is payable as permanent partial disability for total occupational deafness of one ear, seventeen (17) weeks of compensation; for total occupational deafness of both ears, one hundred (100) weeks of compensation; for partial occupational deafness in one or both ears, compensation is paid for those periods that are proportionate to the relation which the hearing loss bears to the amount provided in this subdivision for total loss of hearing in one or both ears. The amount of hearing loss shall be reduced by the average amount of hearing loss from non-occupational causes found in the population at any given age, according to the provisions subsequently set forth. Compensation for deafness resulting from injury other than occupational disease is paid pursuant to subdivision (a)(1)(xii).

(a) Hearing loss shall be evaluated pursuant to protocols established by the workers' compensation medical advisory board. All treatment consistent with this subsection shall be consistent with the protocols established by the workers' compensation medical advisory board subject to Rhode Island general laws section 28-33-5.

(b) Where payments are required to be made under more than one clause of this section, payments are made in a one time payment unless the parties otherwise agree. Payment are mailed within fourteen (14) days of the entry of a decree, order, or agreement of the parties.

(c) Payments pursuant to this section, except subdivision (a)(3)(ii), are made only after an employee's condition as relates to loss of use has reached maximum medical improvement as defined in section 28-29-2(8) and as found pursuant to section 28-33-18(b).

28-33-47. Reinstatement of injured worker -- (a) A worker who has sustained a compensable injury shall be reinstated by the worker's employer to the worker's former position of employment upon demand for reinstatement, if the position exists and is available and the worker is not disabled from performing the duties of the position with reasonable accommodation made by the employer in the manner in which the work is to be performed. A workers' former position is "available" even if that position has been filled by a replacement while the injured worker was absent as a result of the worker's compensable injury. If the former position is not available, the worker shall be reinstated in any other existing position which is vacant and suitable. A certificate by the treating physician that the physician approves the worker's return to the worker's regular employment or other suitable employment is prima facie evidence that the worker is able to perform the duties.

(b) The right of reinstatement is subject to the provisions for seniority rights and other employment restrictions contained in a valid collective bargaining agreement between the employer and a representative of the employer's employees, and nothing exempts any employer from or excuse full compliance with any applicable provisions of the Americans with Disabilities Act, 42 U.S.C. section 12101 et seq., and chapter 87 of title 42.

(c) Notwithstanding subsection (a) of this section:

(1) The right to reinstatement to the worker's former position under this section terminates upon any of the following:

(i) A medical determination by the treating physician, impartial medical examiner, or comprehensive independent health care review team that the worker cannot, at maximum medical improvement, return to the former position of employment or any other existing position with the same employer that is vacant and suitable;

(ii) The approval by the workers' compensation court of a vocational rehabilitation program for the worker to train the worker for alternative employment with another employer;

(iii) The worker's acceptance of suitable employment with another employer after reaching maximum medical improvement;

(iv) The worker's refusal of a bona fide offer from the employer of light duty employment or suitable alternative employment, prior to reaching maximum medical improvement;

(v) The expiration of ten (10) days from the date that the worker is notified by the insurer or self-insured employer by mail at the address to which the weekly compensation benefits are mailed that the worker's treating physician has released the worker for employment unless the worker requests reinstatement within that time period;

(vi) The expiration of thirty (30) days after the employee reaches maximum medical improvement or concludes or ceases to participate in an approved program of rehabilitation, or one year from the date of injury, whichever is sooner. Notwithstanding the foregoing, where the employee is participating in an approved program of rehabilitation specifically designed to provide the employee with the ability to perform a job for which he or she would be eligible under subsection (a) of this section, the right of reinstatement shall terminate when the employee concludes or ceases to participate in the program or eighteen (18) months from the date of injury, whichever is sooner;

(vii) Except where otherwise provided under a collective bargaining agreement, the approval by the court of a settlement pursuant to chapters 29 -- 38 of this title.

(2) The right to reinstatement under this section does not apply to:

(i) A worker hired on a temporary basis;

(ii) A worker employed in a seasonal occupation;

(iii) A worker who works out of a hiring hall operating pursuant to a collective bargaining agreement;

(iv) A worker whose employer employs nine (9) or fewer workers at the time of the worker's injury;

(v) A worker who is on a probationary period of less than ninety-one (91) days.

(d) (1) Any violation of this section is an unlawful employment practice. If the employee applies for reinstatement under this section and the employer in violation of this section refuses to reinstate the employee, the workers' compensation court is authorized to order reinstatement and award back pay and the cost of fringe benefits lost during the period as appropriate, and may require the employer to reimburse the carrier for indemnity benefits, which the carrier shall continue to pay during the period of violation.

(2) Determinations of reinstatement disputes shall be rendered by the workers' compensation court in accordance with this section and chapters 29 -- 38 of this title, and the rules of practice of the workers' compensation court.

(e) When an employee is entitled to reinstatement under this section, but the position to which reinstatement is sought does not exist or is not available, the employee may file for unemployment benefits as if then laid off from that employment, and unemployment benefits shall be calculated pursuant to chapter 44 of this title; provided, that an employee cannot collect both workers' compensation indemnity benefits and unemployment benefits under this section.

(f) The education division of the department of labor and training shall provide information concerning this section to employees who receive benefits under this title.

(g) Any requests for reinstatement determinations pending before the director prior to September 1, 2000, will remain at the department for resolution. Any requests after this date will be heard by the workers' compensation court.

SECTION 5. Section 28-34-5 of the General Laws in Chapter 28-34 entitled "Workers' Compensation - Occupational Diseases" is hereby amended to read as follows:

28-34-5. Examination and report by physician -- The court shall may appoint one or more impartial physicians whose duty it is to examine any claimant under this chapter and to make a report in a form that the court requires.

SECTION 6. Section 28-35-12 of the General Laws in Chapter 28-35 entitled "Workers' Compensation - Procedure" is hereby amended to read as follows:

28-35-12. Petition for determination of controversy -- Contents and filing -- (a) In all disputes between an employer and employee in regard to compensation or any other obligation established under chapters 29 -- 38 of this title, and when death has resulted from the injury and the dependents of the deceased employee entitled to compensation are, or the apportionment of compensation among them is in dispute, any person in interest or his or her authorized representative may file with the administrator of the workers' compensation court a petition and as many copies of the petition as there are respondent parties to it upon forms prescribed and furnished by the court, setting forth the names and residences of the parties, the facts relating to employment at the time of injury, the cause, extent, and character of the injury, the amount of wages, earnings, or salary received at the time of the injury, and the knowledge of the employer of notice of the occurrence of the injury, and any other facts that may be necessary and proper for the information of the court, and shall state the matter in dispute and the claims of the petitioner with reference to the compensation; provided, that no petition shall be filed within twenty-one (21) days of the date of the injury and no petition regarding any other obligation established under chapters 29 -- 38 of this title shall be filed until twenty-one (21) days after written demand for payment upon the employer or insurer or written notice to the employer or insurer of failure to fulfill the obligation, except that any petition alleging the non-payment or late payment of weekly compensation benefits, attorneys' fees, and costs, may be filed after fourteen (14) days from the date the payment is due as set forth in sections 28-35-42, and 28-35-43, and 28-35-20(c). Medical bills for services ordered paid by decree or pretrial order shall be paid within fourteen (14) days of the entry of the decree or order. In the event that the bills are not paid within the fourteen (14) day period, a petition may be filed to enforce said order or decree without any additional written notice to the employer or insurer.

(b) (1) If one or more claims are filed for an injury and there are two (2) or more insurers, any one of which may be held to be liable to pay compensation, and the judge determines that the injured employee would be entitled to receive compensation but for the existence of a controversy as to which one of the insurers is liable to pay compensation, one of the insurers shall be selected by a judge of the workers' compensation court to pay to the injured employee the compensation, pending a final decision of the workers' compensation court as to the matter in controversy, and that decision shall require that the amount of compensation paid is deducted from the award if made against another insurer and is paid by that other insurer to the insurer agreed upon or selected by the judge. If the insurers cannot agree that the employee would be entitled to compensation irrespective of the existence of that controversy, a hearing to determine the question of liability and the payment of compensation shall be held immediately by the workers' compensation court, that hearing to take precedence over other pending matters.

(2) The workers' compensation court shall award compensation, costs, and attorneys' fees in its discretion if one of the insurers is held to be liable following the hearing.

(c) If any determination of the workers' compensation court entitles an employee to retroactive payment of weekly benefits, the court shall award to the employee interest at the rate per annum provided in section 9-21-10 on that retroactive weekly payment from six (6) months subsequent to the date that the employee first filed a petition for benefits to the time when that retroactive payment is actually made; provided, that if the proceedings are unduly delayed by or at the request of the employee or his or her attorney, the judge may reduce or eliminate interest on retroactive payment; and provided, further, that the provisions of this section as they relate to interest apply only to petitions filed on or after July 1, 1984.

(d) Any fine, penalty, or interest expense incurred by an insurer under this section may not be used as an expense for the purpose of seeking a rate increase before the department of business regulation.

SECTION 7. Sections 28-36-12 and 28-36-13 of the General Laws in Chapter 28-36 entitled "Workers' Compensation - Insurance" are hereby amended to read as follows:

28-36-12. Notice of issuance, cancellation, or failure to renew policies -- (a) Every insurance company having written a policy insuring against liability for personal injuries to employees shall notify the director of the issuance of the policy within thirty (30) days of the effective date of this policy in a manner determined by the director. Upon the cancellation of the policy or failure to renew it, every insurance company having written the policy shall immediately notify the director of the cancellation or failure to renew. The director has discretion to assess an administrative penalty of not more than two hundred fifty dollars ($250) per offense of penalties and sanctions against any insurance company that fails to notify the director as required in this section. The director, in his or her discretion, may bring a civil action to collect all civil penalties assessed. The district court for the county of Providence workers' compensation court has jurisdiction to enforce compliance with any order of the director made pursuant to this section. In addition, any insurance company that willfully fails to notify the director as required in this section is subject to prosecution for a misdemeanor and, upon conviction, may be punished by a fine of not more than two hundred fifty dollars ($250) for each offense. All criminal actions for any violation of this section shall be prosecuted by the attorney general at the request of the director.

(b) Cancellation of the policy or nonrenewal is not effective until written notice of the cancellation or nonrenewal is received by the director.

28-36-13. Information furnished by insurers or self-insurers on request of director -- (a) Any employer, insurance company, self-insurer, or group self-insurer insuring employers against liability for personal injuries to employees shall fill out all blanks and answer all questions submitted to it by the director, relating to classifications, premium rates, amount of compensation paid, and any other information that the director may deem important either for the proper administration of chapters 29 -- 38 of this title or for statistical purposes. The director has the authority and any jurisdiction that may be necessary to carry out duties pursuant to this chapter, including the power to subpoena with cause. The director has the authority and the jurisdiction that is necessary to carry out duties pursuant to the provisions of this chapter, including with cause the power to subpoena. The director has discretion to assess an administrative penalty of not more than two hundred fifty dollars ($250) per offense against any employer, insurance company, self-insurer, or group self-insurer that fails to provide information requested by the director under this section. Any employer, insurance company, self-insurer, or group self-insurer who refuses that willfully fails to notify the director as required in this section is subject to prosecution for a misdemeanor and, upon conviction, may be punished by a fine of not more than two hundred fifty dollars ($250) for each offense. All criminal actions for any violation of this section shall be prosecuted by the attorney general at the request of the director.

(b) Any employer, insurance company, self-insurer, or group self-insurer that willfully fails to apply the proper classification based on a ruling of the classification appeals board or to timely adjust incurred losses is subject to prosecution for a misdemeanor and, upon conviction, may be punished by a fine of not more than two hundred fifty dollars ($250) for each offense. All criminal actions for any violation of this section shall be prosecuted by the attorney general at the request of the director. In addition, the director has discretion to assess an administrative penalty of not more than two hundred fifty dollars ($250) per offense against any employer, insurance company, self-insurer, or group self-insurer that violates this section.

(c) The director in his or her discretion, may bring a civil action to collect all penalties assessed pursuant to this section. The district court for the county of Providence workers' compensation court has jurisdiction to enforce compliance with any order of the director made pursuant to this section.

SECTION 8. Section 42-16.1-12 of the General Laws in Chapter 42-16.1 entitled "Department of Labor and Training" is hereby amended to read as follows:

42-16.1-12. Fraud prevention unit -- Appointment -- Duties -- Qualifications -- Annual report -- (a) The director of the department of labor and training shall maintain within the workers' compensation unit of the department of labor and training, a workers' compensation fraud prevention unit whose members shall be in the unclassified service and whose responsibility it shall be to formulate an integrated state plan to reduce and prevent fraud arising out of claims made pursuant to the workers' compensation laws of this state and to conduct investigations as authorized by the director. The plan shall include a fraud prevention telephone hotline. The workers' compensation fraud prevention unit shall submit an annual report to the director, the attorney general, the chief judge of the workers' compensation court and the general assembly fiscal advisory staff, on or before November February 15 of each year, describing its activities and setting forth its findings, conclusions, and recommendations.

(b) To carry out the purposes of this section, the director, is authorized to employ any persons that may be required, including an assistant attorney general position within the department of attorney general to assist the unit in any hearing, investigation, action or proceeding taken or done in carrying out the purposes of this section. The director is further authorized and directed to employ any investigative or other services that he or she deems reasonable and prudent to accomplish these purposes.

(c) The unit shall be funded by the workers' compensation administrative fund established in section 28-37-1, and any other funds or balances that the director deems appropriate.

SECTION 9. This act shall take effect upon passage, except the provisions of Section 1 referable to the amendment to R.I.G.L. Sections 28-29-2, 28-29-17 and 28-29-19 which shall operate prospectively and take effect on January 1, 2002, except where otherwise indicated in R.I.G.L. Section 28-33-19.