A N     A C T

RELATING TO WORKERS' COMPENSATION

Introduced By: Representative Jacquard

Date Introduced : February 2, 1999

It is enacted by the General Assembly as follows:

SECTION 1. Section 5-37.3-4 of the General Laws in Chapter 5-37.3 entitled "Confidentiality of Health Care Communications and Information Act" is hereby amended to read as follows:

5-37.3-4. Limitations on and permitted disclosures. -- (a) Except as provided in subsection (b) or as otherwise specifically provided by the law, a patient's confidential health care information shall not be released or transferred without the written consent of such patient or his or her authorized representative, on a consent form meeting the requirements of subsection (d), a copy of any notice used pursuant to subsection (d), and of any signed consent shall upon request, be provided to the patient prior to his or her signing a consent form.

Provided however, that any and all managed care entities and managed care contractors writing policies in the state are hereby prohibited from providing any information related to enrollees which is personal in nature and could reasonably lead to identification of an individual and is not essential for the compilation of statistical data related to enrollees, to any international, national, regional or local medical information data base. Provided further however, that this provision would not restrict or otherwise prohibit the transfer of information to the department of health to carry out its statutory duties and responsibilities.

(1) Any person who violates the provisions of this section may be liable for actual and punitive damages.

(2) The court may award a reasonable attorney's fee at its discretion to the prevailing party in any civil action under this section.

(3) Any person who knowingly and intentionally violates the provisions of this section shall upon conviction, be fined not more than five thousand ($5,000) dollars for each violation or imprisoned not more than six (6) months for each violation, or both.

(4) Any contract or agreement which purports to waive the provisions of this section is hereby declared null and void as against public policy.

(b) No consent for release or transfer of confidential health care information is required in the following situations:

(1) To a physician, dentist, or other medical personnel who believes in good faith that the information is necessary for diagnosis or treatment of that individual in a medical or dental emergency; or

(2) To medical and dental peer review board, or the board of medical licensure and discipline; or board of examiners in dentistry; or

(3) To qualified personnel for the purpose of conducting scientific research, management audits, financial audits, program evaluations, actuarial, insurance underwriting, or similar studies, provided that personnel shall not identify, directly or indirectly, any individual patient in any report of that research, audit, or evaluation, or otherwise disclose patient identities in any manner; or

(4) By a health care provider to appropriate law enforcement personnel, or to a person if the health care provider believes that person or his or her family to be in danger from a patient, or to appropriate law enforcement personnel if the patient has or is attempting to obtain narcotic drugs from the health care provider illegally, or to appropriate law enforcement personnel or appropriate child protective agencies if the patient is a minor child who the health care provider believes, after providing health care services to such patient, to have been physically or psychologically abused or to law enforcement personnel in the case of a gunshot wound reportable under section 11-47-48; or

(5) Between or among qualified personnel and health care providers within the health care system for purposes of coordination of health care services given to the patient and for purposes of education and training within the same health care facility; or

(6) To third party health insurers for the purpose of adjudicating health insurance claims including to utilization review agents as provided by section 23-17.12-9(11); or

(7) To a malpractice insurance carrier or lawyer if the health care provider has reason to anticipate a medical liability action; or

(8) To the health care provider's own lawyer or medical liability insurance carrier if the patient whose information is at issue brings a medical liability action against a health care provider.

Disclosure by a health care provider of a patient's health care information which is relevant to a civil action brought by the patient against any person or persons other than that health care provider may occur only under the discovery methods provided by the applicable rules of civil procedure (federal or state). Such disclosure shall not be through ex parte contacts; and not through informal ex parte contacts with the provider by persons other than the patient or his or her legal representative. Nothing herein shall limit the right of a patient or his or her attorney to consult with that patient's own physician and to obtain that patient's own health care information.

(9) To public health authorities in order to carry out their functions as described in this title and titles 21 and 23, and rules promulgated thereunder. These functions include, but are not restricted to, investigations into the causes of disease, the control of public health hazards, enforcement of sanitary laws, investigation of reportable diseases, certification and licensure of health professionals and facilities, review of health care such as that as required by the federal government and other governmental agencies; or

(10) To the state medical examiner in the event of a fatality that comes under his or her jurisdiction; or

(11) In relation to information that is directly related to current claim for workers' compensation benefits or to any proceeding before the workers' compensation commission or before any court proceeding relating to workers' compensation; or

(12) To the attorneys for a health care provider whenever that provider considers that release of information to be necessary in order to receive adequate legal representation; or

(13) By a health care provider to appropriate school authorities of disease, health screening and/or immunization information required by the school; or when a school age child transfers from one school or school district to another school or school district; or

(14) To a law enforcement authority to protect the legal interest of an insurance institution agent or insurance-support organization in preventing and prosecuting the perpetration of fraud upon them; or

(15) To a grand jury or to a court of competent jurisdiction pursuant to a subpoena or subpoena duces tecum when that information is required for the investigation or prosecution of criminal wrongdoing by a health care provider relating to his or her or its provisions of health care services and that information is unavailable from any other source; provided however, that any information so obtained shall not be admissible in any criminal proceeding against the patient to whom that information pertains; or

(16) To the state board of elections pursuant to a subpoena or subpoena duces tecum when that information is required to determine the eligibility of a person to vote by mail ballot and/or the legitimacy of a certification by a physician attesting to a voter's illness or disability; or

(17) To certify, pursuant to chapter 20 of title 17, the nature and permanency of a person's illness or disability, the date when that person was last examined and that it would be an undue hardship for the person to vote at the polls so that the person may obtain a mail ballot; or

(18) To the central cancer registry; or

(19) To the medicaid fraud control unit of the attorney general's office for the investigation or prosecution of criminal or civil wrongdoing by a health care provider relating to his or her or its provision of health care services to then medicaid eligible recipients or patients, residents or former patients or residents of long term residential care facilities. Provided, however, that any information so obtained shall not be admissible in any criminal proceeding against the patient to whom said information pertains;

(20) To the state department of children, youth, and families pertaining to the disclosure of health care records of children in the custody of the department.

(21) To the foster parent or parents pertaining to the disclosure of health care records of children in the custody of the foster parent or parents, provided that the foster parent or parents receive appropriate training and have ongoing availability of supervisory assistance in the use of sensitive information that may be the source of distress to such children.

(22) A hospital may release the fact of a patient's admission and a general description of a patient's condition to persons representing themselves as relatives or friends of the patient or as a representative of the news media. The access to confidential health care information to persons in accredited educational programs under appropriate provider supervision shall not be deemed subject to release or transfer of that information under subsection (a).

{ADD (23) To the workers' compensation fraud prevention unit for purposes of investigation under section 42-11-15. ADD}The release or transfer of confidential health care information under any of the above exceptions shall not be the basis for any legal liability, civil or criminal, nor considered a violation of this chapter.

(c) Third parties receiving and retaining a patient's confidential health care information must establish at least the following security procedures:

(1) Limit authorized access to personally identifiable confidential health care information to persons having a "need to know" that information; additional employees or agents may have access to that information which does not contain information from which an individual can be identified;

(2) Identify an individual or individuals who have responsibility for maintaining security procedures for confidential health care information;

(3) Provide a written statement to each employee or agent as to the necessity of maintaining the security and confidentiality of confidential health care information, and of the penalties provided for in this chapter for the unauthorized release, use, or disclosure of such information. The receipt of that statement shall be acknowledged by the employee or agent, who shall sign and return the statement to his or her employer or principal, who shall retain the signed original. The employee or agent shall be furnished with a copy of the signed statement;

(4) Take no disciplinary or punitive action against any employee or agent solely for bringing evidence of violation of this chapter to the attention of any person.

(d) Consent forms for the release or transfer of confidential health care information shall contain, or in the course of an application or claim for insurance be accompanied by a notice containing, the following information in a clear and conspicuous manner:

(1) A statement of the need for and proposed uses of that information;

(2) A statement that all information is to be released or clearly indicating the extent of the information to be released; and

(3) A statement that the consent for release or transfer of information may be withdrawn at any future time and is subject to revocation, except where an authorization is executed in connection with an application for a life or health insurance policy in which case the authorization shall expire two (2) years from the issue date of the insurance policy and when signed in connection with a claim for benefits under any insurance policy the authorization shall be valid during the pendency of that claim. Any revocation shall be transmitted in writing.

(e) Except as otherwise specifically provided by law an individual's confidential health care information shall not be given, sold, transferred, or in any way relayed to any other person not specified in the consent form or notice meeting the requirements of subsection (d) without first obtaining the individual's additional written consent on a form stating the need for the proposed new use of such information or the need for its transfer to another person.

(f) Nothing contained in this chapter shall be construed to limit the permitted disclosure of confidential health care information and communications set forth in subsection (b) of this section.

SECTION 2. Section 8-3-9 of the General Laws in Chapter 8-3 entitled "Justices of Supreme, Superior, and Family Courts" is hereby amended to read as follows:

8-3-9. Computation of service time as to former courts. -- For purposes of determining eligibility for retirement under sections 8-3-7 and 8-3-8, the years of service of any person who has served as an associate judge of the juvenile court prior to September 1, 1961, or who has served as a judge or clerk of a district court as constituted prior to September 15, 1969 {ADD or a judge of the workers' compensation court ADD}, shall be included as if the service had been on the court to which the person may have been subsequently appointed.

SECTION 3. Section 23-17-19.1 of the General Laws in Chapter 23-17 entitled "Licensing of Health Care Facilities" is hereby amended to read as follows:

23-17-19.1. Rights of patients. -- Every health care facility licensed hereunder shall observe the following standards and such other standards as may be prescribed in rules and regulations promulgated by the licensing agency with respect to each patient who utilizes the facility:

(1) The patient shall be afforded considerate and respectful care.

(2) Upon request, the patient shall be furnished with the name of the physician responsible for coordinating his or her care.

(3) Upon request, the patient shall be furnished with the name of the physician or other person responsible for conducting any specific test or other medical procedure performed by the health care facility in connection with the patient's treatment.

(4) The patient shall have the right to refuse any treatment by the health care facility to the extent permitted by law.

(5) The patient's right to privacy shall be respected to the extent consistent with providing adequate medical care to the patient and with the efficient administration of the health care facility. Nothing in this section shall be construed to preclude discreet discussion of a patient's case or examination of appropriate medical personnel.

(6) The patient's right to privacy and confidentiality shall extend to all records pertaining to the patient's treatment except as otherwise provided by law.

(7) The health care facility shall respond in a reasonable manner to the request of a patient's physician for medical services to the patient. The health care facility shall also respond in a reasonable manner to the patient's request for other services customarily rendered by the health care facility to the extent the services do not require the approval of the patient's physician or are not inconsistent with the patient's treatment.

(8) Before transferring a patient to another facility, the health care facility must first inform the patient of the need for and alternatives to such a transfer.

(9) Upon request, the patient shall be furnished with the identities of all other health care and educational institutions that the health care facility has authorized to participate in the patient's treatment and the nature of the relationship between the institutions and the health care facility.

(10) If the health care facility proposes to use the patient in any human experimentation project, it shall first thoroughly inform the patient of the proposal and offer the patient the right to refuse to participate in the project.

(11) Upon request, the patient shall be allowed to examine and shall be given an explanation of the bill rendered by the health care facility irrespective of the source of payment of the bill.

(12) Upon request, the patient shall be permitted to examine any pertinent health care facility rules and regulations that specifically govern the patient's treatment.

(13) The patient shall be offered treatment without discrimination as to race, color, religion, national origin, or source of payment.

(14) Patients shall be provided with a summarized medical bill within thirty (30) days of discharge from a health care facility. Upon request, the patient shall be furnished with an itemized copy of his or her bill. When patients are residents of state-operated institutions and facilities, the provisions of this subsection shall not apply.

(15) Upon request, the patient shall be allowed the use of a personal television set provided that the television complies with underwriters' laboratory standards and O.S.H.A. standards, and so long as the television set is classified as a portable television.

(16) No charge shall be made for furnishing a health record or part thereof to a patient, his or her attorney or authorized representative if the record or part thereof is necessary for the purpose of supporting an appeal under any provision of the Social Security Act, 42 U.S.C. section 301 et seq., and the request is accompanied by documentation of the appeal {ADD or a claim under the provisions of the Workers' Compensation Act, Chapters 29-38 of title 28 ADD}. A provider shall furnish a health record requested pursuant to this section within thirty (30) days of the request.

SECTION 4. Section 27-9-52 of the General Laws in Chapter 27-9 entitled "Casualty Insurance Rating" is hereby amended to read as follows:

27-9-52. Assessment for costs of rate filings, review, and pricing. -- {DEL (a) DEL} The director of the department of business regulation may appoint actuaries and any other required administrative personnel to assist the director in the performance of his or her duties relating to the evaluation of rate filings, reviews, and pricing procedures of insurers when insuring against workers' compensation and employers' liability; the actuaries and other administrative personnel shall serve under the direction of the director and shall be removable at the director's pleasure. The director is further authorized to enter into contracts with consultants for the purpose of studying rate filings, reviews, and pricing procedures of insurers, and the administration and other aspects of the workers' compensation system. Insurance companies doing workers' compensation and employers' liability insurance in this state shall be assessed according to a schedule of their direct writings of workers' compensation and employers' liability insurance in this state to pay for the compensation of the actuaries, consultants, and other administrative personnel retained hereunder. {DEL The director shall determine the method of calculating that assessment by rules and regulations promulgated pursuant to chapter 35 of title 42. DEL}

{DEL (b) The assessment provided for in this section shall not exceed one half of one percent (.5%) per annum of the insurer's direct writings of workers' compensation and employers' liability insurance in this state. DEL}

SECTION 5. Sections 28-29-2 and 28-29-7.1 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, 1999.]. -- 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 under the provisions 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 shall only mean those class or classes of employees as may be designated by a city, town, or regional school district in manner herein provided to receive compensation under chapters 29 -- 38 of this title. It shall not include any partner or sole proprietor, 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 shall it include the members of the regularly organized fire and police departments of any town or city; and 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 shall not be deemed an employee of the state, city, town, or regional school district as the case may be. {ADD Any person who on or after January 1, 1999, is an employee and becomes a corporate officer shall remain an employee, for purposes of these chapters, unless and until coverage under this act is waived pursuant to 28-29-8(b). ADD} 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, shall be reportable to the appropriate taxation authority but shall not be 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 shall, where the employee is dead, include a reference to his or her dependents as hereinafter defined, 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" shall include any person, copartnership, corporation, or voluntary association, and the legal representative of a deceased employer; it shall include the state, and the city of Providence. It shall include also each city, town, and regional school district therein that shall vote or accept the provisions of chapters 29 -- 38 of this title in the manner herein provided.

(6) "General or special employer":

(i) A general employer shall include but shall not be limited to temporary help companies and employee leasing companies and shall mean a person who for consideration and as the regular course of its business supplies an employee with or without vehicle to another person.

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

(iii) Whenever there be a general employer and special employer wherein 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, then and in that event, notwithstanding the fact that direction and control shall be in the special employer and not the general employer, the general employer, if it be subject to the provisions of the Workers' Compensation Act or has accepted that Act, shall be deemed to be the employer as set forth in subdivision (5) and both the general and special employer shall be the employer for purposes of sections 28-29-17 and 28-29-18.

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

(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 shall not be deemed to have arisen out of and in the course of employment. Nothing in the foregoing 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, however, that the foregoing shall not bar the right of an employee to recover against an employer and/or driver for tortious misconduct.

(8) "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.

(9) "Physician" shall mean medical doctor, surgeon, dentist, licensed psychologist, chiropractor, osteopath, podiatrist, and optometrist, as the case may be.

(10) "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 shall not be considered in determining the suitableness of the alternative employment.

28-29-7.1. Exemption from workers' compensation -- Certain real estate persons. -- A licensed real estate broker or real estate salesperson or a licensed or certified real estate appraiser shall not be considered an employee under the provisions of this chapter if substantially all of the remuneration for the services performed by the broker, salesperson, or appraiser, whether paid in cash or otherwise, is directly related to sales or other output rather than to the number of hours worked, and the services are performed by the broker, salesperson, or appraiser pursuant to a written contract that contains the following provisions:

(1) The broker, salesperson, or appraiser, for purposes of workers' compensation, is engaged as an independent contractor associated with the person for whom services are performed;

(2) The broker or salesperson shall be paid a commission based on his or her gross sales, if any, without deduction for taxes, which commission shall be directly related to sales or other output;

(3) The broker, salesperson, or appraiser shall not receive any remuneration related to the number of hours worked, and shall not be treated as an employee with respect to the services for the purposes of this chapter;

(4) The broker, salesperson, or appraiser shall be permitted to work any hours he or she chooses;

(5) The broker, salesperson, or appraiser shall be permitted to work out of his or her own home or the office of the person for whom services are performed;

(6) The broker, salesperson, or appraiser shall be free to engage in outside employment;

(7) The person for whom the services are performed may provide office facilities and supplies for the use of the broker, salesperson, or appraiser, but the broker, salesperson, or appraiser shall otherwise pay his or her own expenses; and

{DEL (8) The broker, salesperson, or appraiser shall execute and file with the director of the department of labor and training a certification of sole proprietor or partner status in a form prescribed or approved by the division of workers' compensation. DEL}

SECTION 6. Sections 28-33-18 and 28-33-18.3 of the General Laws in Chapter 28-33 entitled "Workers' Compensation--Benefits" are hereby amended to read as follows:

28-33-18. Weekly compensation for partial incapacity. -- (a) While the incapacity for work resulting from the injury is partial, the employer shall pay the injured employee a weekly compensation equal to seventy-five percent (75%) of the difference between his or her spendable average weekly base wages, earnings, or salary before the injury as computed pursuant to the provisions of section 28-38-20, and his or her spendable weekly wages, earnings, salary, or earnings capacity thereafter, but not more than the maximum weekly compensation rate for total incapacity as set forth in section 28-33-17. The provisions of this section are subject to the provisions of section 28-33-18.2.

(b) For all injuries occurring on or after September 1, 1990, where an employee's condition has reached maximum medical improvement and the incapacity for work resulting from the injury is partial, while the incapacity for work resulting from the injury is partial, the employer shall pay the injured employee a weekly compensation equal to seventy percent (70%) of the weekly compensation rate as set forth in subsection (a). 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 provisions of this subsection are subject to the provisions of section 28-33-18.2.

(c) (1) Earnings capacity determined from degree of functional impairment pursuant to section 28-29-2(3) shall be determined as a percentage of the whole person based on the most recent addition of the American Medical Association Guides To The Value Of Permanent Impairment. Earnings capacity shall be calculated from the percentage of impairment as follows:

(i) For impairment of five percent (5%) or less, earnings capacity shall be calculated so as to extinguish one hundred percent (100%) of weekly benefits.

(ii) For impairment of twenty-five percent (25%) or less, but greater than five percent (5%), earnings capacity shall be calculated so as to extinguish one hundred percent (100%) less the percent of impairment of weekly benefits.

(iii) For impairment of fifty percent (50%) or less, but greater than twenty-five percent (25%), earnings capacity shall be calculated so as to extinguish one hundred percent (100%) less one point two five (1.25) times the percent of impairment of weekly benefits.

(iv) For impairment of sixty-five percent (65%) or less, but greater than fifty percent (50%), earnings capacity shall be calculated so as to extinguish one hundred percent (100%) less one point five (1.5) times the percent of impairment of weekly benefits.

(2) An earnings capacity adjustment under this section shall be applicable only when the employee's condition has reached maximum medical improvement under section 28-29-2(3)(ii) and benefits are subject to adjustment pursuant to subsection (b) of this section.

(d) In the event partial compensation is paid, in no case shall the period covered by the compensation be greater than three hundred and twelve (312) weeks. In the event that compensation for partial disability is paid under this section for a period of three hundred and twelve (312) weeks, the employee's right to continuing weekly compensation benefits shall be determined pursuant to the terms of section 28-33-18.3. At least twenty-six (26) weeks prior to the expiration of the period, the employer or insurer shall notify the employee {ADD and the director ADD} of its intention to terminate benefits at the expiration of three hundred and twelve (312) weeks and advise the employee of the right to apply for a continuation of benefits under the terms of section 28-33-18.3. In the event that the employer or insurer fails to notify the employee {ADD and the director ADD} as prescribed, the employer or insurer shall continue to pay benefits to the employee for a period equal to twenty-six (26) weeks after the date the notice is served on the employee {ADD and the director ADD}.

28-33-18.3. Continuation of benefits -- Partial incapacity. -- (a) 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 duly 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 hinderance to obtaining employment suitable to his or her limitation, partial incapacity benefits shall continue. For injuries on and after July 1, {DEL 1993 DEL} {ADD 1994 ADD}, the term "Material hinderance" is hereby 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 shall not be included in the calculation of the three hundred and twelve (312) week period.

The provisions of this subsection shall apply to all injuries from Sept. 1, 1990 to July 1, {DEL 1993 DEL} {ADD 1994 ADD}.

(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 all such incapacitated employees shall be increased as of May 10, 1991, and annually on the tenth (10th) day of May thereafter so long as the employee remains incapacitated. The increase shall be 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 shall be 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 shall be 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) The above computations shall be made by the director of labor and training and promulgated to insurers and employers making payments required by this section. Increases shall be 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, there shall be added to the unpaid payment an amount equal to twenty percent (20%) thereof, which shall be paid at the same time as but in addition to the payment.

(5) This section shall apply only to payment of weekly indemnity benefits to employees as described in subsection (b)(1), and shall 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 shall be allowed or entertained in those cases where an employee is receiving benefits pursuant to this section.

SECTION 7. Sections 28-36-1, 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:

28-36-1. Insurance or filing of bond required. -- (a) Every employer subject to or who has elected to become subject to chapters 29 -- 38 of this title as provided in section 28-29-8 shall secure in one of the following ways the compensation for which he or she is or may become liable under those chapters:

(1) By insuring and keeping insured against liability to pay the compensation in any stock or mutual company, or association, authorized and qualified to do business in this state and to take those risks in this state;

(2) By furnishing to the director of labor and training satisfactory proof of his or her financial ability to pay directly to injured employees or their dependents the compensation, and by furnishing security, indemnity, or a bond in kind and in amount satisfactory to the director. The bond shall run to the director for the benefit of the employees and their dependents and with the indemnity or security shall be deposited with him or her;

(3) (i) By a combination of subsections (a)(1) and (a)(2), the employer may self-insure for a sum certain by furnishing security, indemnity or a bond in kind and amount equal to the sum certain, together with insurance for loss in excess of the sum certain.

(ii) The provisions of subsections (a)(2) and (a)(3) shall apply upon compliance with the reasonable criteria and rules and regulations as established by the director to qualify and safeguard the underlying amounts of self-insurance; or

(4) By becoming a member of an authorized group self-insurance fund pursuant to chapter 47 of this title.

(b) (1) All employers who apply for approval to self insure for all or part of their liability, pursuant to subsections (a)(2) and (a)(3), shall pay an application fee based upon the number of employees located at the employer's place(s) of business in Rhode Island. The fees for new applications shall be set in accordance with the following schedule:

Number of Employees	Fee
1-249	$300
250-499	$350
500-749	$400
750-999	$450
1,000 or more	$500

(2) There is hereby established a restricted receipt account within the department of labor and training into which shall be deposited the application fees set forth in subsection (b)(1) and the revenue derived from the assessment set forth in subsection (b)(3). This account shall be used solely for the payment of the expenses of the department of labor and training in performing its duties under sections 28-36-1 and 28-36-2. If an employer receives approval to self insure from the director for all or part of its liability pursuant to subsections (a)(2) or (a)(3), the application fee paid by that employer shall be applied as a credit to reduce the amount of the assessment apportioned to that employer pursuant to subsection (b)(3). (3) The director of labor and training and the department of administration, annually, as soon as practicable {DEL after the end DEL} {ADD prior to the start ADD} of the fiscal year, in each succeeding year, shall ascertain the total amount of expenses, including in addition to the direct costs of personal services, the cost of maintenance and operation, the cost of retirement contributions made and workers' compensation premiums {ADD to be ADD} paid by the state for or on account of personnel, rentals for space {ADD to be ADD} occupied in state owned or state leased buildings, and all other direct or indirect costs {ADD to be ADD} incurred by the department of labor {DEL during the preceding DEL} {ADD in the next ADD}fiscal year in carrying out its responsibilities under sections 28-36-1 and 28-36-2. Those expenses shall be assessed against all employers who self-insure for all or part of their liability under chapters 29--38 of title 28. The basis of apportionment of the assessment against each employer shall be that proportion of those expenses that the penal sum of the surety bond, indemnity, or security of each employer at the close of the preceding fiscal year bears to the total of the penal sum of all bonds, indemnity, or security for all employers. (4) (i) In addition to current classified positions in the department of labor and training self-insurance unit, consisting of administrator, hearing officer, supervising trainer, and senior clerk stenographer, there shall be funded as unclassified positions: (A) Two (2) administrative aide positions; and (B) Two (2) financial evaluator analysts. (ii) This staff's and/or any consultant's studies on feasibility and/or audits, as assessed by the administrator according to the rules of the department at the expense of any self-insured or proposed self-insured entity, shall be reported to the director of the department in the course of the department operations on the administration of the self-insurance unit. All funds are from the restricted receipt account of the department as collected by the self-insurance unit pursuant to subsections (b)(1) -- (b)(3).

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 immediately notify the director of the issuance of the policy upon forms to be provided 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. {ADD The director shall have discretion to assess an administrative penalty and/or to bring a civil action in any court of competent jurisdiction for collection of penalties and sanctions against any insurance company that fails to notify the director as required in this section. In addition to the foregoing any ADD} {DEL Any DEL} insurance company that refuses to notify the director as required in this section shall be subject to prosecution for a misdemeanor and upon conviction thereof 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. The attorney general shall prosecute actions to enforce the payment of penalties and fines at the request of the director.

(b) Cancellation of the policy or non-renewal shall not be deemed effective until written notice of the cancellation or non-renewal is received by the director.

28-36-13. Information furnished by insurers or self-insurers on request of director. -- (a) Any employer {ADD , ADD} insurance company {ADD , ADD} {DEL or DEL} self-insurer {ADD or group self-insurer ADD} 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 such other information as the director may deem important either for the proper administration of chapters 29 -- 38 of this title or for statistical purposes. The director shall have the authority and such jurisdiction as may be necessary to carry out duties pursuant to the provisions of this chapter, including with cause the power to subpoena. Any employer insurance company or self-insurer who refuses to notify the director as required in this section shall be subject to prosecution for a misdemeanor and upon conviction thereof 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. The attorney general shall prosecute actions to enforce the payment of penalties and fines at the request of the director.

(b) Any employer {ADD , ADD} insurance company {ADD , self-insurer or group self-insurer ADD} that willfully refuses to apply the proper classification based on a ruling of the classification appeals board or to timely adjust incurred losses shall be subject to prosecution for a misdemeanor and upon conviction thereof 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 to the foregoing, the director shall have discretion to assess an administrative penalty and/or to bring a civil action in any court of competent jurisdiction for collection of penalties and sanctions.

SECTION 8. Sections 28-37-1, 28-37-13, 28-37-16 and 28-37-31 of the General Laws in Chapter 28-37 entitled "Workers' Compensation Administrative Fund" are hereby amended to read as follows:

28-37-1. Establishment -- Sources -- Administration. -- (a) There is hereby established in the department of labor and training a special account to be known as the workers' compensation administrative account, an account within the general fund. This account, hereinafter referred to as the "workers' compensation administrative account", shall consist of payments made to it as hereinafter provided, or penalties paid pursuant to this chapter, and of all other moneys paid into and received by the fund, of property and securities acquired by and through the use of moneys belonging to the fund, and of interest earned upon the moneys belonging to the fund. All moneys in the fund shall be mingled and undivided. The fund shall be administered by the director of labor and training or his or her designee.

(b) The purposes for which this fund shall be used are as follows:

(1) To provide funds to the Dr. John E. Donley rehabilitation center for suitable structures, personnel, and equipment necessary for the rendering of rehabilitative services, including, but not limited to, physical therapy, psychotherapy, and occupational therapy to injured workers coming within the purview of chapters 29 -- 38 of this title;

(2) To provide funds for all expenditures of the education unit created pursuant to section 42-16-4 and all expenditures of the workers' compensation fraud prevention unit created pursuant to section {DEL 42-11-15 DEL} {ADD 42-16.1-12 ADD};

(3) To provide funds for all expenditures of the workers' compensation court after July 1, 1989. The administrator of the fund shall on July 1st of each fiscal year transfer such funds as are reasonable and necessary to fund all expenditures of the workers' compensation court for the fiscal year from the administrative account, to a restricted receipt account to be established in the judicial department. The administrator of the workers' compensation court is hereby authorized to draw funds from the restricted receipt account for all court expenditures;

(4) To provide funds to the department of labor and training for all expenditures incurred in administering its responsibilities under chapters 29--38 of this title;

(5) To provide funds to the department of labor and training for all expenditures incurred in investigating and processing or otherwise administering its responsibilities regarding claims for benefits or payments under sections 28-35-20, 28-37-4, and 28-37-8;

(6) To provide funds to the department of labor and training for the maintenance and operation of a system of data collection as provided for in section 28-37-31. The director shall be authorized to purchase and/or lease equipment necessary to effectuate the purposes of section 28-37-31;

(7) To provide funds for loans to the state compensation insurance fund as provided in sections 27-7.2-19 and 27-7.2-20.1; and

(8) To provide funds for the payment or reimbursement of actual incremental costs of COLA increases mandated by section 28-33-17 respecting injuries occurring prior to September 1, 1990, in such amounts as the director, in his or her sole discretion, deems appropriate. These amounts may be paid out of the fund by order of the director and shall be made by order drawn on the general treasury to be charged against the fund.

(9) To provide funds to the workers' compensation advisory council created pursuant to the provisions of section 28-29-30 for expenditures to carry out its responsibilities.

{ADD (10) To provide funds to the department of business regulation relating to the evaluation of rate filings, reviews, and pricing procedures pursuant to the provisions of section 27-9-52. ADD}

28-37-13. Payments into fund by insurers and employers. -- (a) For the privilege of writing or renewing workers' compensation insurance or employer's liability insurance in this state, every mutual association or stock company so authorized, to be hereinafter referred to as "insurers", and for the privilege of being authorized, to make payments of workers' compensation directly to its employees, and every employer so authorized, to be hereinafter referred to as "certified employers", shall annually make the following payments to the workers' compensation administrative fund:

(1) In the case of an insurer, an amount measured by four and one-quarter percent (41/4%), or such other percentage of return as certified by the director pursuant to subsection (c) of the gross premiums received for workers' compensation insurance or employer's liability insurance written or renewed by it during the preceding calendar year on risks within this state, but not less than {DEL twenty-five dollars ($25.00) DEL} {ADD fifty dollars ($50.00) ADD}; and

(2) In the case of a certified employer, an amount measured by four and one-quarter percent (4 1/4%), or such other percentage of return as certified by the director pursuant to subsection (c) of the premium which the employer would have had to pay to obtain workers' compensation insurance or employer's liability insurance for the preceding calendar year, but not less than {DEL twenty-five dollars ($25.00) DEL} {ADD fifty dollars ($50.00) ADD}, which amount shall be determined by the director.

(b) Every certified employer and every insurer shall also pay into the workers' compensation administrative fund the sum of {DEL one thousand five hundred dollars ($1,500) DEL} {ADD seven thousand five hundred dollars ($7,500) ADD} for every case of injury causing death in which there is no person entitled to compensation.

(c) The director is hereby authorized to determine on or before {DEL March DEL} {ADD July ADD} 15 of each year {ADD except for the period ending June 30, 2000, when such determination shall be made on or before November 15 ADD} by experience or by other means, after taking into account projected expenditures for the current fiscal year and for the next fiscal year, what percentage of return, to be hereinafter referred to as the "assessment", is needed to provide sufficient funds, in conjunction with appropriations from the general fund, if any, to fulfill the purposes enumerated in section 28-37-1(b) and shall certify this assessment to the governor and the general assembly. {ADD Such assessment may be separately determined for insurers and for certified employers ADD}. The payments, due within sixty (60) days of notice each year pursuant to sections 28-37-15 and 28-37-16, shall be made based upon the assessment so certified. If the assessment certified in any given year is less than the assessment certified for the prior year, the percentage of reduction shall be applied to reduce pro rata employer payments and in accordance herewith, the director shall require the insurance carriers as described in subsection (a)(1) to reduce their premiums by a like percentage of premiums paid. If an insured thereafter cancels his or her policy or otherwise allows his or her policy to terminate, or the insured's policy is terminated, the insurance company shall make a pro rata cash refund not later than sixty (60) days after the reduction has been determined. The insurance company shall forthwith certify to the director that the premium reductions have been made.

(d) (1) In recognition of the continued utilization of the workers' compensation system by insurers who have discontinued writing workers' compensation policies in the state, if any insurance company, deemed by the director of the department of business regulation to have been licensed on January 1, 1991 to write compensation policies, discontinues the issuance of workers' compensation policies, this company shall be and remain obligated to pay the workers' compensation administrative fund assessment for a period of six (6) years thereafter.

(2) In calculating the amount due by these insurance companies on the due date, as defined in subsection (c), of the year after which it discontinues writing policies in this state (the base year) the director of labor and training will calculate an amount equal to the assessment in effect on the last date the insurer issued workers' compensation policies multiplied by the gross premiums received for workers' compensation insurance or employers' liability insurance written or renewed by it during the base year on risks within this state, but not less than {DEL twenty-five dollars ($25.00) DEL} {ADD fifty dollars ($50.00) ADD} each year.

(3) The basis for the calculation of the assessment in each succeeding year shall be a reduction of the base year assessment by increments of sixteen and two-thirds percent (16 2/3%) per each succeeding year.

(e) All penalties collected for any violation under chapters 29 -- 38 of this title shall be paid into this fund.

(f) Any employer, insurer, self-insurer, or group self-insurer who has not paid assessments or who is not current with payment of assessments into this fund shall not be permitted to place a claim against the fund. Reimbursement to any employer, insurer, self-insurer, or group self-insurer who is not current with payment of assessments into this fund shall be suspended forthwith as of the first date of arrearage.

(g) To be eligible to use any of the services funded by the workers' compensation administrative fund an employer, insurer, self-insurer, or group self-insurer shall pay a fee of one thousand dollars ($1,000) per claim, per month into the fund until the arrearage is paid in full in addition to any other interests or penalties.

28-37-16. Returns and payments by certified employers. -- Every certified employer shall, on or before {DEL January DEL} {ADD May ADD} 15th of each year {ADD except for the period ending June 30, 2000 when such return shall be due on or before September 15 ADD}, file with the director, in such form and containing such information as he or she may prescribe, a return under oath or affirmation signed by a duly authorized officer or agent of the company. The director shall thereupon determine the payment to be made by each employer under this chapter and shall mail a notice of the amount of this payment to each certified employer. The amount so determined shall be due and payable within sixty (60) days of notice.

28-37-31. Data collecting. -- (a) (1) Recognizing the need for collection, analysis, and utilization of quantifiable data to provide the basis for recommendations to improve the efficiency and reduce the cost of the workers' compensation system, the director of the department of labor and training will be responsible to coordinate a comprehensive program of data collection, in accordance with the standards or recommendations of the international association of industrial accident boards and commissions or the national association of insurance commissioners, that can be utilized to analyze and provide guidance for the improvement of the system through legislation or administrative action.

(2) This analysis will be based on the collection of quantifiable data with emphasis on the actuarial assumptions and projections utilized for the basis of enactment of this section to effect economies in the overall system. The data collection will include, but not be limited to, injury statistics by type of industry and job classification as well as ergonomic statistics and analysis that will assist in the development of safety training programs and rehabilitation programs. Reports will be compiled and submitted to all interested parties enumerated in the section on {DEL a quarterly DEL} {ADD an annual ADD} basis to allow for executive or legislative action to correct or improve on the efficiency of the system.

(3) The director of labor and training will coordinate and distribute statistical analysis to all state departments and agencies impacted by the workers' compensation system, to include the:

(i) Governor;

(ii) Workers' compensation advisory council;

(iii) Workers' compensation court;

(iv) Department of business regulation;

(v) State compensation fund; and

(vi) Other agencies and branches requesting dissemination of information.

(4) The director will also be responsible to recommend sufficient appropriations from his annual budget to meet the expenses of the collection and analysis of data as described herein.

(b) The director shall promulgate regulations pursuant to section 28-29-26 requiring the provision of such information regarding workers' compensation claims as he or she may deem necessary and useful, provided that this information shall be furnished in a form that will not identify, directly or indirectly, any individual employers or employees in any manner.

SECTION 9. Section 28-42-38 of the General Laws in Chapter 28-42 entitled "Employment Security -- General Provisions" is hereby amended to read as follows:

28-42-38. Records and reports -- Confidentiality of information. -- (a) Every employer and every employing unit employing any person in employment in this state shall keep true and accurate employment records of all persons employed by him or her, and of the weekly hours worked for him or her by each, and of the weekly wages paid by him or her to each person; and every employer and employing unit shall keep records containing such other information as the director may prescribe. Those records shall at all times be available within this state and shall be open to inspection by the director or his or her authorized representatives at any reasonable time and as often as the director shall deem necessary.

(b) The director may require from any employer, or employing unit, employing any person in this state, any reports covering persons employed by him or her, on employment, wages, hours, unemployment, and related matters which the director deems necessary to the effective administration of chapters 42 -- 44 of this title.

(c) (1) Information thus obtained, or information contained in other records of the department obtained from any individual pursuant to the administration of those chapters, shall be held confidential by the director and shall not be published or be open to public inspection in any manner revealing the individual's or employing unit's identity, but any claimant at a hearing provided for in those chapters shall be supplied with information from those records of the extent necessary for the proper presentation of his or her claim, and any department employee guilty of violating this provision shall be subject to the penalties provided in chapters 42 -- 44 of this title; provided, however, that nothing herein contained shall be construed to prevent the:

(i) Director, or any qualified attorney whom the director has designated to represent him or her in any court of this state, or the attorney general, from making any record, report, or other information referred to in this section, available in any proceeding before any court of this state in any action to which the director is a party;

(ii) Director from making any record, report, or other information referred to in this section, available to any agency of this state or any agency of a political subdivision of this state charged with the administration of public assistance within this state, or any political subdivision thereof;

(iii) Director from making any record, report, or other information referred to in this section available to the railroad retirement board or to employees of the internal revenue service in the performance of their public duties, and the director shall furnish, at the expense of the railroad retirement board or the internal revenue service, copies of those records, reports, or other information referred to in this section;

(iv) Director from making available upon request and on a reimbursable basis, any record, report, or other information referred to in this section to the federal department of health and human services in accordance with the provisions of United States P.L. 100-485, Family Support Act of 1988, or to the federal department of housing and urban development and to authorized representatives of public housing agencies in accordance with the Stewart B. McKinney Homeless Assistance Act, 42 U.S.C. section 11301 et seq.;

(v) Director from making, and the director shall make, reports in the form and containing the information as the federal social security administration may from time to time require, and complying with such provisions as the federal social security administration may from time to time find necessary to assure the correctness and verification of those reports, and the director shall make available, upon request, to any agency of the United States charged with the administration of public works or assistance through public employment, the name, address, ordinary occupation, and employment status of each recipient of unemployment compensation and a statement of that recipient's rights to further compensation under that law; {DEL or DEL}

(vi) Director from conducting any investigations he or she deems relevant in connection herewith {DEL . DEL} {ADD ; or ADD}

{ADD (vii) Director from conducting any investigations he or she deems relevant in connection with the performance of his or her duties pursuant to the administration of the chapters 29, 32, 33, 34, 36, 37 and 41 of this title, or from making any record, report, or other information referred to in this section available to the Workers' Compensation Fraud Prevention Unit for use in the performance of its duties under section 42-11-15. ADD}

(2) The director may publish in statistical form the results of any investigations without disclosing the identity of the individuals involved.

SECTION 10. Sections 42-11-15, 42-11-16, 42-11-17, 42-11-18 and 42-11-19 of the General Laws in Chapter 42-11 entitled "Department of Administration" are hereby repealed.

{DEL 42-11-15. Fraud prevention unit -- Appointment -- Duties -- Qualifications -- Annual report. -- DEL} {DEL (a) The director of administration shall establish within the state employees' workers' compensation unit of the department of administration, 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. 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 15 of each year, describing its activities and setting forth its findings, conclusions, and recommendations. DEL}

{DEL (b) To carry out the purposes of this title, the director, with the appropriation provided for this unit, is authorized to employ such persons as may be required, including the funding of 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 such investigative or other services as he or she deems reasonable and prudent to accomplish these purposes. DEL}

{DEL (c) The unit shall be funded by the workers' compensation administrative fund established in section 28-37-1, and such other funds or balances as the director may deem appropriate. Expenditures for any increase in service level shall be by agreement of the director, department of labor and training and the director, department of administration. DEL}

{DEL 42-11-16. Investigative powers of the fraud prevention unit. -- DEL} {DEL The unit is authorized to investigate allegations of workers' compensation fraud and abuse. In furtherance of any investigation, the unit shall have the power to: DEL}

{DEL (a) Administrative subpoena.. - The unit may request, through an administrative subpoena, the attendance and testimony of witnesses and the production of books, records, and other evidence relevant to an investigation. The subpoena shall specify the time, date, and place where the witness is to respond. Within twenty (20) days after the service of the subpoena or at anytime before the return date specified therein, whichever period is shorter, the person served may file in a state superior court and serve upon the unit and the attorney general a civil petition for an order of the court modifying or setting aside the subpoena. The petition shall specify each ground upon which the petitioner is seeking relief. If a person neglects or refuses to comply with any request to provide testimony or produce books, records, and other evidence relevant to an investigation, the attorney general may petition the superior court for an order compelling such person to answer the request. Books, records, and other evidence obtained through an administrative subpoena that are not used in a court proceeding shall be destroyed as soon as practicable. DEL}

{DEL (b) Service of process.. - Unit investigators shall have the authority to serve criminal and civil process. DEL}

{DEL 42-11-17. Disclosure of information to the fraud prevention unit. -- DEL} {DEL Any insurer, or agent authorized by the 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 shall review the reports submitted and undertake further investigation in appropriate cases, as determined by the unit. DEL}

{DEL 42-11-18. Fraud prevention unit -- Evidence/confidentiality. -- DEL} {DEL The unit's documents, reports, or evidence relative to a workers' compensation investigation shall be privileged and not open to public inspection. Such documents, reports, and evidence shall not be subject to a subpoena duces tecum unless the unit consents, or a court determines the unit would not be jeopardized by compliance with the subpoena. DEL}

{DEL 42-11-19. Immunity. -- DEL} {DEL In the absence of fraud, malice or bad faith, no insurer or agent authorized by the insurer to act on its behalf, employee of the unit, or person providing information to the unit, shall be subject to civil liability for damages as a result of any statement, report, or investigation made pursuant to chapter 11 of this title. Nothing herein shall interfere with any common law or statutory privilege or immunity. DEL}

SECTION 11. Chapter 42-16.1 of the General Laws entitled "Department of Labor and Training" is hereby amended by adding thereto the following sections:

{ADD 42-16.1-12. Fraud prevention unit -- Appointment -- Duties -- Qualifications -- Annual Report. -- ADD} {ADD (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 15 of each year, describing its activities and setting forth its findings, conclusions, and recommendations. ADD}

{ADD (b) To carry out the purposes of this section, the director is authorized to employ such persons as 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 such investigative or other services as he or she deems reasonable and prudent to accomplish these purposes. ADD}

{ADD (c) The unit shall be funded by the workers' compensation administrative fund established in section 28-37-1, and such other funds or balances as the director may deem appropriate. ADD}

{ADD 42-16.1-13. Investigative powers of the fraud prevention unit. -- ADD} {ADD The unit is authorized to investigate allegations of workers' compensation fraud and abuse. In furtherance of any investigation, the unit shall have the power to: ADD}

{ADD (a) Administrative subpoena. The unit may request, through an administrative subpoena, the attendance and testimony of witnesses and the production of books, records, and other evidence relevant to an investigation. The subpoena shall specify the time, date, and place where the witness is to respond. Within twenty (20) days after the service of the subpoena or at any time before the return date specified therein, whichever period is shorter, the person served may file in a state superior court and serve upon the unit and the attorney general a civil petition for an order of the court modifying or setting aside the subpoena. The petition shall specify each ground upon which the petitioner is seeking relief. If a person neglects or refuses to comply with any request to provide testimony or produce books, records, and other evidence relevant to an investigation, the attorney general may petition the superior court for an order compelling such person to answer the request. Books, records, and other evidence obtained through an administrative subpoena that are not used in a court proceeding shall be destroyed as soon as practicable. ADD}

{ADD (b) Service of process. Unit investigators shall have the authority to serve criminal and civil process. ADD}

{ADD 42-16.1-14. Disclosure of information to the fraud prevention unit. -- ADD} {ADD Any insurer, or agent authorized by the 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 shall review the reports submitted and undertake further investigation in appropriate cases, as determined by the unit. ADD}

{ADD 42-16.1-15. Fraud prevention unit -- Evidence/confidentiality. -- ADD} {ADDThe unit's documents, reports, or evidence relative to a workers' compensation investigation shall be privileged and not open to public inspection. Such documents, reports, and evidence shall not be subject to a subpoena duces tecum unless the unit consents, or a court determines the unit would not be jeopardized by compliance with the subpoena. ADD}

{ADD 42-16.1-16. Immunity. -- ADD} {ADDIn the absence of fraud, malice or bad faith, no insurer or agent authorized by the insurer to act on its behalf, employee of the unit, or person providing information to the unit, shall be subject to civil liability for damages as a result of any statement, report, or investigation made pursuant to chapter 16.1 of this title. Nothing herein shall interfere with any common law or statutory privilege or immunity. ADD}

SECTION 12. This act shall take effect upon passage.