§ 23:1377 — Workers' Compensation Second Injury Fund

Louisiana § 23:1377

• Jurisdiction: Louisiana
• Title 23: Labor and Workers' Compensation

Text

§1377. Workers' Compensation Second Injury Fund
A. There is hereby created and established in the state treasury a special fund which
shall be designated as the "Workers' Compensation Second Injury Fund", hereinafter referred
to as the "fund". The fund shall be maintained as a separate account in the state treasury for
the purposes of funding the administrative expenses of the board and reimbursing
compensable claims of property and casualty insurers, self-insured employers, and group
self-insurance funds as set forth by R.S. 23:1371 et seq. Except as provided in Subsection
F of this Section, monies shall be withdrawn therefrom only pursuant to legislative
appropriation and shall be subject to budgetary control as provided by law. All remaining
and unencumbered balances at the end of any fiscal year shall remain credited to the fund and
shall be used solely for the purposes stated in this Section. Any interest income generated
by the fund shall accrue to the fund.
B.(1) Every property and casualty insurer, individual self-insurer, and group self-insurance fund that has paid Louisiana workers' compensation benefits under Parts II and III,
Chapter 10 of this Title, shall make an annual payment to the fund. The annual reports
required by R.S. 23:1291.1(A) shall be used by the board as the base figure for computing
the assessments and such assessments shall be a percentage of the amount reported in the
annual reports. The board shall determine the amount of the assessment. Monies collected
by the assessment shall not exceed one hundred twenty-five percent of the sum of the
disbursements made from the fund in the preceding fiscal year, and the known outstanding
unpaid amounts which have been submitted for reimbursement on or in connection with an
approved claim at the end of the preceding fiscal year.
(2) These funds shall be made payable to the order of the state treasurer and shall be
transmitted to the board, which shall in turn transmit all funds so received to the state
treasurer. Upon receipt by the state treasurer, the funds shall be credited to the Workers'
Compensation Second Injury Fund.
C.(1) The board shall provide by rules and regulations for the collection of the
assessment amount. The board shall determine the date the assessment is due and notify, in
writing, all property and casualty insurers, self-insured employers, and group self-insurance
funds of the assessment at least thirty days before the due date. If such amounts are not paid
by the due date established by the board, there may be assessed, for each thirty days that the
amount assessed remains unpaid, a civil penalty equal to twenty percent of the amount
assessed that remains unpaid, which shall be due and collected at the same time as the unpaid
part of the amount assessed. Payments received by the office shall be applied first to
penalties assessed and then to the outstanding assessment.
(2) Any property and casualty insurer that has discontinued writing workers'
compensation insurance in this state or any self-insured employer that ceases to be authorized
by R.S. 23:1168 or any group self-insurance fund that has ceased to be authorized as a group
self-insurance fund shall continue to be liable for payment of any assessment and penalties
to the fund on account of any benefits paid by the property and casualty insurer, self-insured
employer, or group self-insurance fund under Parts II and III of this Chapter.
(3) Any entity that is required by law to make an annual payment or payments into
the fund and has not done so shall not be eligible for reimbursement from the fund. In
addition, except as provided in R.S. 23:1378(A)(5), any entity that is not required by law to
make such payments into the fund shall not be eligible for reimbursement from the fund.
D.(1) Upon warrant issued by the board, the treasurer shall make payments to
employers or insurers entitled thereto under the provisions of this Part. If the funds in the
Workers' Compensation Second Injury Fund are insufficient to pay such warrants, claims
shall rank from the date of submission to the second injury board for reimbursement.
(2) A final decision of the board, as provided in R.S. 23:1378(E), decreeing that an
employer or insurer is entitled to an award from the Workers' Compensation Second Injury
Fund shall have the same effect as such a warrant.
E. If any property or casualty insurer, self-insured employer, or group self-insurance
fund fails to pay the amounts assessed against it under the provisions of this Section within
sixty days from the time such notice is served upon it, the commissioner of insurance may
suspend or revoke the authorization to transact business as provided by law or the office of
workers' compensation may suspend or revoke the authorization to be self-insured.
F. The board may enter into reimbursement agreements, at the recommendation of
the secretary, with property and casualty insurers, self-insured employers, or group self-insurance funds which have made an overpayment to the fund.
G. The Second Injury Board may approve an annual lump-sum amount up to one
percent of the board's annual budget to be allocated to Louisiana Rehabilitation Services for
use in assisting potential employers and qualified employees with permanent partial
disabilities under the Louisiana Rehabilitation Services Vocational Rehabilitation Program.
Services may include work evaluation and job readiness services, assessment for and
provision of assistive technology, and workstation modification directly related to the
employment, reemployment, or retention of such employees. The funds paid by the Second
Injury Board, as well as any fund matching and earned interest, shall be used only for these
purposes. The Louisiana Rehabilitation Services shall provide the Second Injury Board with
a quarterly report to include all funding balances and expenditures as well as case statistical
information.

Legislative History

Acts 1974, No. 165, §1; Acts 1983, 1st Ex. Sess., No. 1, §6; Acts 1985, No. 697, §1, eff. Oct. 1, 1985; Acts 1988, No. 997, §1; Acts 1990, No. 63, §1; Acts 1992, No. 862, §1; Acts 1995, No. 188, §1, eff. June 12, 1995; Acts 2005, No. 257, §1; Acts 2006, No. 453, §1, eff. June 15, 2006; Acts 2010, No. 799, §1, eff. June 30, 2010; Acts 2011, No. 291, §1.