It is enacted by the General Assembly as follows:

SECTION 1. Section 28-31-8 of the General Laws in Chapter 28-31 entitled "Workers' Compensation -- State and Municipal Employees" is hereby amended to read as follows:

{ADD 28-31-8. Insurance requirement inapplicable. -- ADD} The provisions of chapters 29 -- 38, inclusive, of this title, requiring employers to insure against liability to pay compensation arising under the provisions of those chapters shall not apply to the state or any city or town therein {DEL . DEL} {ADD and the state or any such city or town may separately insure against or contract for the provision of any portion of its obligations or liabilities arising under such chapters 29-38 with parties licensed or qualified to do business in this state. Any party providing, underwriting or administering the provision of any portion of such obligations or liabilities shall not thereby incur any liabilities or obligations under such chapters 29-38 beyond those specified by its contract with the state, city or town, and such party shall not thereby become subject to the regulation and the generally applicable liabilities and obligations of workers' compensation insurers. ADD} However, notwithstanding the provisions of section 45-5-20.1 of the general laws, or any other general law, the state, the city of Providence and any town, city or regional school district which has accepted the provisions of chapters 29-38, inclusive, of this title, pursuant to section 28-31-1, shall be subject to the annual assessment payment to the workers' compensation administrative fund established by section 28-37-1.

SECTION 2. Section 28-33-8.1 of the General Laws in Chapter 28-33 entitled "Workers' Compensation -- Benefits" is hereby amended to read as follows:

{ADD 28-33-8.1. Managed care programs. -- ADD} Any employer or insurer may petition the director of labor and the director of business regulation for authority to provide health care, diagnosis and treatment through any health plan, health maintenance organization, or managed care provider licensed in the state. The directors shall have discretion to approve or disapprove the petition, and approval of both directors shall be required to authorize the managed care program. {ADD Any such provider, including a nonprofit hospital service corporation or nonprofit medical service corporation, may provide, underwrite or administer the provision of health care, diagnosis or treatment arising under chapters 29-38, inclusive, of this title, to the extent specified under such a managed care program without incurring any liabilities or obligations under such chapters 29-38 not specified in such managed care program, and such provider shall not thereby become subject to the regulation and the generally applicable liabilities and obligations of workers' compensation insurers. ADD}

SECTION 3. This act shall take effect on July 1, 1994.