SECTION 1. Chapter 28-29 of the General Laws entitled "Workers' Compensation - General Provisions" is hereby amended by adding thereto the following section:

28-29-1.3. Jurisdiction of act. -- The provisions of chapters 29 through 38, inclusive, of title 28 shall apply to any and all employees, as defined in section 28-29-2(4), who are injured or hired in the state of Rhode Island.

SECTION 2. Sections 28-29-2, 28-29-15, 28-29-19, 28-29-22, and 28-29-30 of the General Laws in Chapter 28-29 entitled "Workers' Compensation - General Provisions" are hereby amended to read as follows:

28-29-2. Definitions. [Effective January 1, 2002.] -- 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 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, was an employee and became a corporate officer remains an employee, for purposes of these chapters, unless and until coverage under these chapters is waived pursuant to section 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 section 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.

(iv) Effective January 1, 2003, whenever general employer enters into a contract or arrangement with a special employer to supply an employee or employees for work the special employer shall require written documentation evidencing that the general employer carries workers' compensation insurance with no indebtedness for its employees for the term of the contract or arrangement. In the event that the special employer fails to obtain the written documentation from the general employer, the special employer is deemed to be the employer pursuant to the provisions of section 28-29-2.

(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.

28-29-15. Exemption of employees covered by laws of other states. 28-29-15. Exemption of professional hockey personnel. -- Any employee who has been hired outside of this state and his or her employer, including professional Professional ice hockey players, coaches, and trainers employed by a professional ice hockey club, including, but not limited to, National Hockey League or American Hockey League clubs, are exempted from chapters 29 -- 38 of this title while that employee is temporarily within this state doing work for his or her employer or, with respect to professional ice hockey players, coaches, and trainers employed by, or on assignment or transfer from their employer, if the employer has furnished workers' compensation insurance coverage under the workers' compensation or similar laws of the other state so as to cover the employee's employment while in this state; provided, that the extraterritorial provisions of chapters 29 -- 38 of this title are recognized in the other state and provided employers and employees who are covered in this state are likewise exempted from the application of the workers' compensation or similar laws of the other state; provided further that the requirement for recognition in the other state of the extraterritorial provisions of chapters 29 -- 38 of this title and the requirement that employers and employees who are covered in this state be likewise exempted from the application of the workers' compensation or similar laws of the other state do not apply to any employees who are professional ice hockey players, coaches, and trainers employed by a professional ice hockey club, including, but not limited to National Hockey League or American Hockey League clubs described in this section. The benefits under the Workers' Compensation Act or similar laws of the other state shall be the exclusive remedy against that employer for any injury, whether resulting in death or not, received by any employee while working for that employer in this state.

28-29-19. Waiver of claim of common law rights. [Effective January 1, 2002.] -- (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 filing a notice in writing with the director and the employer or his or her agent which takes effect five (5) days after the filing delivery to the employer or his or her agent with the director.

(b) 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 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.

28-29-22. Agreement for alternative scheme -- Approval and certification. -- Any employer may enter into an agreement with his or her employees in any employment to which chapters 29 -- 38 of this title apply to provide a scheme of compensation, benefit, or insurance in lieu of the compensation provided for in those chapters, subject to the approval of the director and the chief judge of the workers' compensation court. Approval is granted only on condition that the scheme proposed provides as great benefits as those provided by these chapters; and if the scheme provides for contributions by employees, it shall confer additional benefits at least equivalent to the contributions. If a scheme meets with the approval of the director, he or she shall issue a certificate enabling the employer to contract with any or all of his or her employees in employment to which chapters 29 -- 38 of this title apply to substitute that scheme for those chapters for a period of not more than five (5) years.

28-29-30. Advisory council. -- (a) There is created a workers' compensation advisory council consisting of fifteen (15) members as follows:

(1) The chief judge of the workers' compensation court and one (1) additional judge of the workers' compensation court to be selected by the chief judge;

(2) The director of business regulation;

(3) The director of administration;

(4) Three (3) representatives from labor appointed by the governor, one (1) of whom shall be an injured worker;

(5) Three (3) representatives from business appointed by the governor, one (1) of whom is a self-insured employer, and one (1) of whom represents cities and towns;

(6) One representative from the general public appointed by the governor;

(7) The chairperson of the senate labor committee or his or her designee; and

(8) The chairperson of the house labor committee or his or her designee;

(9) The director of labor and training;

(10) The manager chief executive officer of the workers' compensation insurance fund or his or her designee.

(b) It is the duty of the council to advise the governor and the general assembly, on an annual basis, on the administration of the workers' compensation system.

SECTION 3. Sections 28-33-8, 28-33-16, 28-33-17, 28-33-18.3 and 28-33-47 of the General Laws in Chapter 28-33 entitled "Workers' Compensation - Benefits" are hereby amended to read as follows:

28-33-8. 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 a preferred provider network approved and kept on record 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 shall not 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.

28-33-16. Burial expenses. -- If the employee dies as a result of the injury, the employer shall pay, in addition to any compensation provided for in this chapter, the sum of five thousand dollars ($5,000) fifteen thousand dollars ($15,000) as provided under section 28-33-23.

28-33-17. Weekly compensation for total incapacity -- Permanent total disability -- Dependents' allowances. -- (a) (1) While the incapacity for work resulting from the injury is total, the employer pays the injured employee a weekly compensation equal to seventy-five percent (75%) of his or her average weekly spendable base wages, earnings, or salary, as computed pursuant to the provisions of section 28-33-20; but not more than sixty percent (60%) of the state average weekly wage of individuals in covered employment under the provisions of the Rhode Island Employment Security Act as computed and established by the Rhode Island department of labor and training, annually, on or before May 31 of each year, under the provisions of section 28-44-6(a); provided, that effective September 1, 1974, the maximum rate for weekly compensation for total disability shall not exceed sixty-six and two-thirds percent (66 2/3%) of the state average weekly wage as computed and established under the provisions of section 28-44-6(a); and provided, further, that effective September 1, 1975, the maximum rate for weekly compensation for total disability shall not exceed one hundred percent (100%) of the state average weekly wage as computed and established under section 28-44-6(a); and provided further that effective September 1, 2000, the maximum rate for weekly compensation for total disability shall not exceed one hundred ten percent (110%) of the state average weekly wage as computed and established under the provisions of section 28-44-6(a); and, also, if the maximum weekly benefit rate is not an exact multiple of one dollar ($1.00), then the rate is raised to the next higher multiple of one dollar ($1.00).

(2) The average weekly wage computed and established under section 28-44-6(a) is applicable to injured employees whose injury occurred on or after September 1, 2000, and shall be applicable for the full period during which compensation is payable.

(3) (i) Spendable earnings are the employee's gross average weekly wages, earnings, or salary, including any gratuities reported as income, reduced by an amount determined to reflect amounts which would be withheld from the wages, earnings, or salary under federal and state income tax laws, and under the Federal Insurance Contributions Act (FICA), 26 U.S.C. section 3101 et seq., relating to social security and Medicare taxes. In all cases, it is to be assumed that the amount withheld would be determined on the basis of expected liability of the employee for tax for the taxable year in which the payments are made without regard to any itemized deductions but taking into account the maximum number of personal exemptions allowable.

(ii) Each November 1 and March 1 year the director shall publish tables of the average weekly wage and seventy-five percent (75%) of spendable earnings that are to be in effect on the following January 1 May 10. These tables are conclusive for the purposes of converting an average weekly wage into seventy-five percent (75%) of spendable earnings. In calculating spendable earnings the director has discretion to exempt funds assigned to third parties by order of the family court pursuant to section 8-10-3 and funds designated for payment of liens pursuant to section 28-33-27 upon submission of supporting evidence.

(b) (1) In the following cases, it is, for the purpose of this section, conclusively presumed that the injury resulted in permanent total disability:

(i) The total and irrecoverable loss of sight in both eyes or the reduction to one-tenth ( 1/10) or less of normal vision with glasses;

(ii) The loss of both feet at or above the ankle;

(iii) The loss of both hands at or above the wrist;

(iv) The loss of one hand and one foot;

(v) An injury to the spine resulting in permanent and complete paralysis of the legs or arms; and

(vi) An injury to the skull resulting in incurable imbecility or insanity.

(2) In all other cases, total disability is determined only if, as a result of the injury, the employee is physically unable to earn any wages in any employment; provided, that in cases where manifest injustice would result, total disability is determined when an employee proves, taking into account the employee's age, education, background, abilities, and training, that he or she is unable on account of his or her compensable injury to perform his or her regular job and is unable to perform any alternative employment. The court may deny total disability under this subsection without requiring the employer to identify particular alternative employment.

(c) (1) Where the employee has persons conclusively presumed to be dependent upon him or her or in fact dependent, the sum of fifteen dollars ($15.00) shall be added to the weekly compensation payable for total incapacity for each person wholly dependent on the employee, except that the sum of forty dollars ($40.00) is added for those receiving benefits under section 28-33-12, but in no case shall the aggregate of those amounts exceed eighty percent (80%) of the average weekly wage of the employee, except that there is no limit for those receiving benefits under section 28-33-12.

(2) The dependency allowance is in addition to the compensation benefits for total disability otherwise payable under the provisions of this section. The dependency allowance is increased if the number of persons dependent upon the employee increases during the time that weekly compensation benefits are being received.

(3) For the purposes of this section the following persons are conclusively presumed to be wholly dependent for support upon an employee:

(i) A wife upon a husband with whom she is living at the time of his injury, but only while she is not working for wages during her spouse's total disability;

(ii) A husband upon a wife with whom he is living at the time of her injury, but only while he is not working for wages during his spouse's total disability; and

(iii) Children under the age of eighteen (18) years, or over that age but physically or mentally incapacitated from earning, if living with the employee, or, if the employee is bound or ordered by law, decree, or order of court, or by any other lawful requirement, to support the children, although living apart from them; provided, that the payment of dependency benefits to a dependent child over the age of eighteen (18) years shall continue as long as that child is satisfactorily enrolled as a full-time student in an educational institution or an educational facility accredited or approved by the appropriate state educational authorities at the time of enrollment. Those payments shall not be continued beyond the age of twenty-three (23) years. Children, within the meaning of this paragraph, also includes any children of the injured employee conceived but not born at the time of the employee's injury, and the compensation provided for in this section is payable on account of these children from the date of their birth.

(d) "Dependents" as provided in this section does not include the spouse of the injured employee except as provided in subdivisions (c)(3)(i) and (ii). In all other cases questions of dependency are determined in accordance with the facts as the facts may be at the time of the injury.

(e) The court or any judge of the court may in its or his or her discretion order the insurer or self-insurer to make payment of the nine dollars ($9.00) or fifteen dollars ($15.00) for those receiving benefits under section 28-33-12 directly to the dependent.

(f) (1) Where any employee's incapacity is total and has extended beyond fifty-two (52) weeks, regardless of the date of injury, payments made to all totally incapacitated employees shall be increased as of May 10, 1991, and annually on the tenth of May thereafter as long as the employee remains totally incapacitated. The increase shall be by an amount equal to the total percentage increase in 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) If the employee thereafter is found to be only partially incapacitated, the weekly compensation benefit paid to the employee shall be equal to the payment in effect prior to his or her most recent cost of living adjustment.

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

(4) The May 10, 1991, increase is based upon the total percentage increase, if any, in the annual consumer price index for the period of March 1, 1990 to February 28, 1991. Thereafter, increases are made on May 10 annually, based upon the percentage increase, if any, in the index for the period March 1 to February 28.

(5) The preceding 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 paid within fourteen (14) days after the employer or insurer has been notified or it becomes due, whichever is later, there is added to the unpaid payment an amount equal to twenty percent (20%) of the payment, which shall be paid at the same time as, but in addition to the payment.

(6) This section applies only to payment of weekly indemnity benefits to employees as described in subsection (f)(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.

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, 1997 1998, 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, 1997 1998.

(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.

28-33-47. 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 written 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 , provided, however, in the event a petition to establish liability for an injury is filed, but not decided within one (1) year of the date of injury, within twenty-one (21) days from the first finding of liability. 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.

(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 4. Section 28-35-58 of the General Laws in Chapter 28-35 entitled "Workers' Compensation - Procedure" is hereby amended to read as follows:

28-35-58. Liability of third person for damages. -- Where the injury for which compensation is payable under chapters 29 -- 38 of this title was caused under circumstances creating a legal liability in some person other than the employer to pay damages in respect of the liability, the employee may take proceedings, both against that person to recover damages and against any person liable to pay compensation under those chapters for that compensation, and the employee is entitled to receive both damages and compensation. The employee, in recovering damages either by judgment or settlement from the person liable to pay damages, shall reimburse the person by whom the compensation was paid to the extent of the compensation paid as of the date of the judgment or settlement and the receipt of those damages by the employee does not bar future compensation. An insurer is entitled to suspend the payment of compensation benefits payable to the employee when the damages recovered by judgment or settlement from the person liable to pay damages exceeds the compensation paid as of the date of the judgment or settlement; the suspension paid is that number of weeks which are equal to the excess damages paid divided by the employee's weekly compensation rate; however, during the period of suspension the employee is entitled to receive the benefit of all medical and hospital payments on his or her behalf; and if the employee has been paid compensation under those chapters, the person by whom the compensation was paid is entitled to indemnity from the person liable to pay damages, and to the extent of that indemnity is subrogated to the rights of the employee to recover damages for this indemnity. When money has been recovered either by judgment or by settlement by an employee from the person so liable to pay damages, by suit or settlement, and the employee is required to reimburse the person by whom the compensation was paid, the employee or his or her attorney are entitled to withhold from the amount to be reimbursed that proportion of the costs, witness expenses, and other out-of-pocket expenses and attorney fees which the amount which the employee is required to reimburse the person by whom compensation was paid bears to the amount recovered from the third party.

(b) In any case in which the employee or, in case of death, the administrator of the employee's estate neglects to exercise the employee's right of action by failing to file a lawsuit against such third person within two (2) years and eight (8) months after the injury, the self-insured employer or the employer's insurance carrier may so proceed and shall be subrogated to the rights of the injured employee or, in case of death, to the rights of the administrator to recover against such person, provided, however, that no subrogation action shall commence unless at least twenty-six (26) weeks prior to the expiration of the two (2) years and eight (8) months the self-insured employer or the employer's insurance carrier has notified the employee or in the case of death, the administrator of the employee's estate, in writing by personal service or certified mail, that failure to commence such action within two (2) years and eight (8) months after the injury will operate as an assignment of the right of action to the self-insured employer or the employer's insurance carrier. Upon filing the lawsuit the attorney for the self-insured employer or the employer's insurance carrier shall notify the employee in writing by personal service or certified mail of the action and the name of the court where it was filed and the employee may join as a plaintiff in the action within thirty-days after such notification, and, if the employee fails to join, said right of joinder shall abate. The right of the employee, or in case of death, the administrator of the employee's estate, to be fully compensated for the damages sustained shall be fully preserved as outlined in subsection (a).

(c) If the self-insured employer or the employer's insurance carrier recovers from such other person damages or benefits, after expenses and costs of action have been paid, in excess of the amount of the lien as defined in this section, then any such excess shall be paid to the injured employee or in the case of death, to the administrator for distribution.

SECTION 5. Section 42-16.1-14 of the General Laws in Chapter 42-16.1 entitled "Department of Labor and Training" is hereby amended to read as follows:

42-16.1-14. Disclosure of information to the fraud prevention unit. -- Any insurer, or agent authorized by the insurer to act on its behalf or third party administrator or any self-insurer to act on its behalf, having reason to believe that an insurance transaction may be fraudulent, shall send to the fraud prevention unit a report of the transaction and any additional information requested by the unit., The unit reviews the reports submitted and undertakes further investigation in appropriate cases, as determined by the unit. and shall respond to requests from the fraud prevention unit for information with respect to employers and employees who are being investigated for workers' compensation fraud and abuse pursuant to section 42-16.1-13. The unit reviews the reports submitted and undertakes further investigation in appropriate cases, as determined by the unit.

SECTION 6. Section 27-7.2-11 of the General Laws in Chapter 27-7.2 entitled "Workers' Compensation Insurance Fund" is hereby repealed.

27-7.2-11. Bond. -- Before entering on the duties of the office, the chief executive officer shall qualify by giving an official bond in an amount and with sureties approved by the board. The chief executive officer shall file the bond with the secretary of state. The premium for the bond shall be paid by the fund.

SECTION 7. There is hereby established a special commission on ergonomics consisting of fifteen (15) members: three (3) shall be representatives of labor to be appointed by the governor; three (3) shall be representatives of the business community to be appointed by the governor; three (3) shall be representatives of the medical community to be appointed by the chairperson of the medical advisory board; one (1) shall be the chief judge of the workers' compensation court, or his or her designee; one (1) shall be the director of the department of labor and training, or his or her designee; one (1) shall be the chairperson of the house labor committee, or his or her designee; one (1) shall be the chairperson of the senate labor committee, or his or her designee; one (1) shall be the chairperson of the workers' compensation advisory council; and one (1) shall be the president of Beacon Mutual Insurance Company, or his or her designee. The purpose of the commission shall be to consider the need for the creation of an ergonomics guideline to protect the workforce and to assist employers in providing a safe workplace. The commission will provide a definition of ergonomics; determine current best practices utilized in workplaces; educate employees and employers of the value of ergonomic programs in reducing workplace injury and reducing employer workers' compensation costs.

Forthwith upon passage of this resolution, the members of the commission shall meet at the call of the governor and organize and shall select from among the members a chairperson. Vacancies in said commission shall be filled in like manner as the original appointment. The membership of said commission shall receive no compensation for their services.

All departments and agencies of the state and each city or town shall furnish such advice and information, documentary and otherwise, to said commission and its agents as is deemed necessary or desirable by the commission to facilitate the purposes of this resolution.

The governor is hereby authorized and directed to provide suitable quarters for said commission; and be it further

RESOLVED, That the commission shall report its findings and recommendations to the general assembly on or before February 1, 2004 and said commission shall expire on April 1, 2004.

SECTION 8. Section 1 of this act shall take effect on January 1, 2004. The remaining sections shall take effect upon passage.