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1                                STATE OF OKLAHOMA

2                    1st Session of the 53rd Legislature (2011)

3    HOUSE BILL 1224                        By: McCullough

4

5

6                                  AS INTRODUCED

7           An Act relating to workers’ compensation; amending 85
            O.S. 2001, Section 1.1, as amended by Section 7,
8           Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85
            O.S. Supp. 2010, Section 1.1), which relates to
9           Workers’ Compensation Act applicability limitations;
            modifying agency designation; amending 85 O.S. 2001,
10          Section 1.2, as amended by Section 1, Chapter 453,
            O.S.L. 2010 (85 O.S. Supp. 2010, Section 1.2), which
11          relates to the creation and content of the Workers’
            Compensation Court; creating Workers’ Compensation
12          Court of Existing Claims; providing for the
            appointment of four judges; vacating all existing
13          court positions; providing for the selection of new
            judges; modifying agency designation; requiring
14          Senate confirmation of new judges; providing for
            appointments to the court; providing for selection of
15          judges in certain circumstances; requiring that
            judges have five years of experience in workers’
16          compensation matters; requiring Senate confirmation
            of any reappointed judge; specifying which claims the
17          Workers' Compensation Court of Existing Claims shall
            adjudicate; amending 85 O.S. 2001, Section 1.2A,
18          which relates to compensation of certain judges;
            modifying agency designation; amending 85 O.S. 2001,
19          Section 1.3, as amended by Section 8, Chapter 1, 1st
            Extraordinary Session, O.S.L. 2005 (85 O.S. Supp.
20          2010, Section 1.3), which relates to the selection
            and duties of the administrator of the Workers’
21          Compensation Court; modifying agency designations;
            creating the Workers’ Compensation Commission;
22          providing for appointment of three Commissioners;
            specifying qualifications for Commission; specifying
23          Commission shall consist of at least one attorney and
            one physician; providing for compensation of
24          Commissioners; establishing the position of


     Req. No. 5555                                                  Page 1
1           administrative law judge within the workers’
            compensation system; specifying jurisdictional
2           regions for administrative law judges; providing for
            venue of workers' compensation claims; requiring
3           administrative law judges be confirmed by the Senate;
            allowing for hearings by videoconference in certain
4           circumstances; authorizing Governor to remove
            Commissioners under certain circumstances;
5           establishing procedure for removal of Commissioners;
            requiring Senate confirmation of removals; requiring
6           a representative of the Attorney General to attend
            such removals and advise or assist the Senate;
7           providing for the subpoena of witnesses in removal
            proceedings; requiring Governor to provide certain
8           information to the Secretary of State upon the
            removal of a Commissioner; specifying that
9           Commissioners shall be officers of the state;
            requiring Commission members to take an oath of
10          office; authorizing certain business be conducted
            with a quorum of Commissioners; authorizing the use
11          of an office by the Commissioners; requiring
            Commissioners to conduct hearings at certain career
12          or technology education centers; providing for the
            creation and use of an official seal; authorizing
13          Commission to take certain administrative actions;
            requiring Commission to give notice of certain
14          actions; specifying content of notice; providing that
            notice be sent to certain interested persons;
15          requiring Commission compliance with the
            Administrative Procedures Act; providing for the
16          payment of certain expenditures; authorizing the
            appointment of certain staff; providing for the
17          compensation of certain rate experts; providing for
            salaries of certain employees; specifying
18          administrative law judge duties; limiting
            administrative law judge authority to issues of
19          compensability; providing for traveling expenses by
            Commission and Commission’s employees; specifying
20          Commission’s power and duties; authorizing Commission
            to hear and determine compensation claims;
21          authorizing Commission to hear appeals from certain
            orders; authorizing Commission to hire a Chief
22          Medical Officer; authorizing Commission to approve
            certain medical and legal claims; authorizing
23          Commission to excuse certain failures to provide
            notice; authorizing Commission to determine awards;
24          authorizing Commission to make findings of fact;


     Req. No. 5555                                                  Page 2
1           authorizing Commission to make rulings of law;
            authorizing Commission to enter orders in appealed
2           cases; authorizing Commission to specify terms of
            payment and order certain reimbursements; authorizing
3           Commission to assess penalties; authorizing
            Commission to prescribe certain rules and
4           regulations; authorizing Commission to issue
            subpoenas, administer oaths and take testimony;
5           authorizing Commission to transfer certain excess
            income to certain charitable organizations;
6           authorizing Commission to establish and impose
            certain fees; providing for the deposit of certain
7           fees; requiring Commission to provide an annual
            report to the Legislature; amending 85 O.S. 2001,
8           Section 3, as last amended by Section 1, Chapter 452,
            O.S.L. 2010 (85 O.S. Supp. 2010, Section 3), which
9           relates to definitions; modifying definitions;
            amending 85 O.S. 2001, Section 3.1, which relates to
10          death benefit definitions; modifying definitions;
            providing for compensation of certain alien
11          nonresident dependents; limiting certain benefits to
            nonresident dependents; amending 85 O.S. 2001,
12          Section 3.4, which relates to procedure for
            commencing workers’ compensation claims; requiring
13          certain employees to report injuries to employer in
            writing within a certain period; providing that
14          failure to timely report injuries shall relieve
            employer of duty to compensate employee; requiring
15          employers to develop certain reporting procedures;
            providing that certain signed statements exculpating
16          employer shall bar employee from compensation;
            prohibiting employee remedies in certain
17          circumstances; authorizing Commission to develop
            preliminary conferences procedures for workers’
18          compensation claims; providing that claimants be
            advised of their rights; specifying that claimants
19          may be advised of rights at certain Career Tech
            centers; authorizing Commission to facilitate
20          settlement of claims; modifying agency designation;
            specifying that certain hearings shall be subject to
21          certain rules of evidence; specifying burden of
            proof; providing that claim hearings shall be open to
22          the public; providing that all hearings shall be
            documented by certain means; requiring that all
23          evidence be presented at initial hearing; requiring
            that certain written reports be provided to opposing
24          parties; requiring notification of opposing parties


     Req. No. 5555                                                  Page 3
1           of intent to cross-examine certain physicians;
            allowing hearing officer or Commissioner discretion
2           in admitting certain evidence; specifying the use of
            certain reports and depositions by administrative law
3           judges; amending 85 O.S. 2001, Section 3.6, as
            amended by Section 1, Chapter 403, O.S.L. 2010 (85
4           O.S. Supp. 2010, Section 3.6), which relates to
            appellate procedures for workers’ compensation
5           claims; modifying agency designation; providing that
            Commission shall hear certain appeals; authorizing
6           Commission to reverse or modify certain decisions;
            providing that certain decisions of the Commission
7           shall be final; restricting Supreme Court authority
            to reverse Workers' Compensation Commission decisions
8           to certain issues or grounds; authorizing Supreme
            Court to require a bond in certain cases; amending 85
9           O.S. 2001, Section 3.7, which relates to powers and
            duties of the Workers’ Compensation Administrator;
10          authorizing Administrator to accept and record
            certain settlements; modifying agency designations;
11          deleting obsolete language; removing authority of
            Administrator to adopt certain rules and impose
12          certain penalties; amending 85 O.S. 2001, Sections
            3.8, 3.10, as last amended by Section 3, Chapter 403,
13          O.S.L. 2010, and 4 (85 O.S. Supp. 2010, Section
            3.10), which relate to workers’ compensation general
14          provisions; modifying agency designations; amending
            85 O.S. 2001, Section 11, as last amended by Section
15          2, Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010,
            Section 11), which relates to employer payment of
16          certain compensation; deleting reference to certain
            injuries; updating statutory reference; amending 85
17          O.S. 2001, Section 12, as last amended by Section 3,
            Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010, Section
18          12), which relates to certain employer liability;
            specifying applicability to certain employers;
19          deleting reference to certain rights arising under
            the Oklahoma Constitution; providing penalty for
20          failure to secure compensation; authorizing
            Commission to serve certain orders for certain
21          violations; providing employers opportunity to
            contest certain Commission orders; allowing for
22          hearings to contest certain orders; specifying burden
            of employer to overturn certain orders; providing for
23          hearings in certain disputes between employers and
            insurers; requiring Commission to notify insurer of
24          certain hearings; requiring insurer to respond to


     Req. No. 5555                                                  Page 4
1           certain notice of hearing within a certain period;
            authorizing Commission to assess certain fines for
2           certain violations; providing Commission authority to
            petition district court in certain circumstances;
3           authorizing Commission to seek certain injunction;
            requiring employers to post certain notices;
4           specifying certain notice requirements; specifying
            that employers shall not be liable for certain
5           injuries; authorizing Commission to establish certain
            rules and regulations concerning medical service
6           fees; allowing Commission to establish maximum
            allowable fees; amending 85 O.S. 2001, Section 14, as
7           last amended by Section 4, Chapter 452, O.S.L. 2010
            (85 O.S. Supp. 2010, Section 14), which relates to
8           the provision of medical services after an injury;
            specifying that injured employees may seek hearing at
9           the Commission or the Court of Existing Claims
            depending upon the date of injury; modifying agency
10          designations; providing for the limitation of certain
            medical treatments; providing for the ongoing service
11          and replacement of certain medical devices; amending
            85 O.S. 2001, Section 14.2, as amended by Section 16,
12          Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85
            O.S. Supp. 2010, Section 14.2), which relates to the
13          selection of treating physicians under certified
            workplace plans; modifying agency designations;
14          amending 85 O.S. 2001, Section 14.3, as amended by
            Section 17, Chapter 1, 1st Extraordinary Session,
15          O.S.L. 2005 (85 O.S. Supp. 2010, Section 14.3), which
            relates to certified workplace medical plans;
16          modifying agency designation; extending period an
            insured may contract with an independent insurer in
17          certain circumstances; requiring employees to obtain
            written confirmation that dispute resolution has
18          failed and been exhausted; specifying that certain
            medical evaluations shall not be admissible if
19          certain conditions have not been met; authorizing
            Commission to alter the course of certain medical
20          treatments under certain conditions; requiring all
            state agencies to adopt and implement certain
21          certified workplace plan; amending 85 O.S. 2001,
            Section 15, which relates to employer requirement of
22          providing prosthetic devices in certain
            circumstances; modifying agency designation; amending
23          85 O.S. 2001, Section 16, as amended by Section 18,
            Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85
24          O.S. Supp. 2010, Section 16), which relates to


     Req. No. 5555                                                  Page 5
1           vocational rehabilitation and job placement services;
            requiring Commission to hire a Vocational
2           Rehabilitation Director; establishing qualifications
            of Vocational Rehabilitation Director; specifying
3           duties of Vocational Rehabilitation Director;
            authorizing the request of vocational rehabilitation
4           services by parties to a compensation claim under
            certain circumstances; authorizing Vocational
5           Rehabilitation Director to issue certain
            administrative orders; providing that such
6           administrative orders are appealable to Commission;
            authorizing Director to assign certain vocational
7           rehabilitation counselors in certain circumstances;
            providing certain services to be paid by employer;
8           authorizing concurrent medical treatment and
            vocational rehabilitation services; modifying agency
9           designation; specifying that vocational
            rehabilitation services shall be payable only to
10          rehabilitating provider; extending time frame for
            certain vocational rehabilitation services;
11          prohibiting the payment for vocational rehabilitation
            to be a separate item in a settlement or included in
12          a calculation of legal fees; amending 85 O.S. 2001,
            Section 17, as last amended by Section 19, Chapter 1,
13          1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp.
            2010, Section 17), which relates to the determination
14          of disability; modifying agency designations;
            providing that determination of disability shall be
15          the responsibility of the Chief Medical Officer;
            requiring all claims for disability be supported by
16          certain testimony and include certain evaluations;
            requiring evaluation be sent to parties within seven
17          days; requiring medical opinions be stated within a
            reasonable degree of medical certainty; defining
18          terms; stating purpose of program; specifying scope
            of program; establishing qualifications of physicians
19          seeking appointment to Medical Impairment Rating
            Registry; specifying application procedure for
20          physicians seeking appointment to Medical Impairment
            Rating Registry; specifying appointment and retention
21          requirements of certain physicians; providing appeal
            procedure for physicians denied appointment on
22          Registry; specifying circumstances wherein a Medical
            Impairment Rating Registry physician shall be
23          appointed; providing for the selection of a Registry
            physician; providing procedure for certain
24          disagreements between the parties; providing for the


     Req. No. 5555                                                  Page 6
1           selection of a Registry physician; establishing that
            the impairment rating determined by the Medical
2           Impairment Rating Registry physician shall be
            presumed accurate; authorizing the Program
3           Coordinator to select a Registry physician under
            certain circumstances; requiring Program Coordinator
4           to contact a selected Registry physician within three
            days after selection; requiring parties to submit
5           copies of all pertinent medical records to the
            Registry physician; authorizing Program Coordinator
6           certain discretion in accepting certain untimely
            submitted records; specifying how medical records
7           shall be organized; prohibiting the submission of
            certain types of evidence to the Registry physician;
8           requiring that claimants complete all forms;
            providing for assistance to claimants in completing
9           forms; authorizing the use of a translator in certain
            circumstances; providing for reimbursement of
10          claimant travel under certain circumstances;
            providing for the payment of a Registry physician;
11          specifying fee amounts based upon the length of time
            taken to complete the report; specifying what the
12          Registry physician fee includes; providing for late
            fees and penalties under certain circumstances;
13          providing procedure for cancellation of evaluation
            appointments; allowing evaluations of multiple
14          impairments by different Registry physicians in
            certain circumstances; prohibiting certain physicians
15          from rendering certain opinions; requiring disclosure
            by physicians in certain potential conflict of
16          interest circumstances; providing penalties for
            failure to comply with conflict of interest
17          requirements; prohibiting certain physicians from
            communicating with parties except under certain
18          circumstances; requiring the requesting party to
            compensate certain physicians if physician is a
19          witness at any proceeding; establishing requirements
            for physicians conducting certain evaluations;
20          specifying certain requirements physicians must
            follow prior to certain evaluations; specifying
21          certain requirements physicians must follow upon the
            completion of certain evaluations; specifying that
22          completed reports shall be sent to the Program
            Coordinator; specifying that evaluations do not
23          create a doctor-patient relationship between
            claimants and physicians; providing that certain
24          physicians shall only evaluate impairment and not


     Req. No. 5555                                                  Page 7
1           offer medical advice or a diagnosis; prohibiting
            certain physicians from recommending treatment in
2           evaluation assessments; establishing reporting
            requirements of the Medical Impairment Rating report;
3           requiring that Medical Impairment Rating physicians
            review attending physician evaluations; providing
4           reporting procedure if the Medical Impairment Rating
            physician agrees with evaluation of attending
5           physician; providing reporting requirements if the
            Impairment Rating is consistent with American Medical
6           Association guidelines; providing reporting
            requirements if the Impairment Rating is not
7           consistent with certain guidelines; requiring certain
            physicians explain rationale for certain ratings;
8           requiring certain physicians sign reports; providing
            statement required on certain reports; providing
9           procedure if the Medical Impairment Rating physician
            disagrees with attending physician determinations;
10          providing that certain physician services conclude
            upon the issuance of certain report; providing that
11          Medical Impairment Ratings shall be subject to
            certain review; providing for the removal of Medical
12          Impairment Rating physicians in certain
            circumstances; providing grounds for removal of
13          Medical Impairment Rating physician from listing;
            establishing procedure for complaints regarding
14          Medical Impairment Rating physicians; allowing
            Medical Impairment Rating physicians opportunity to
15          respond to certain complaints; authorizing Chief
            Medical Officer to make determinations concerning
16          certain complaints; providing procedure for
            physicians to request reconsideration of certain
17          Chief Medical Officer decisions; providing procedure
            for reinstatement of certain physicians to Medical
18          Impairment Rating Registry; providing Chief Medical
            Officer authority to impose certain penalties;
19          providing discretion to the Chief Medical Officer
            with respect to certain time limitations; requiring
20          parties to cooperate in the scheduling of certain
            evaluations; prohibiting parties from seeking a
21          second opinion in certain circumstances; providing
            for issuance of final determination of disability by
22          Chief Medical Officer; providing limitations for
            appeal of certain Chief Medical Officer rulings;
23          authorizing Commission to select a Chief Medical
            Officer; requiring confirmation of Chief Medical
24          Officer by Senate; providing for review by the


     Req. No. 5555                                                  Page 8
1           Commission of Chief Medical Officer’s performance;
            specifying circumstances and procedure for
2           reappointment of Chief Medical Officer; providing for
            compensation of Chief Medical Officer; establishing
3           duties of Chief Medical Officer; providing Commission
            authority to review certain administrative orders
4           issued by the Chief Medical Officer; amending 85 O.S.
            2001, Section 22, as last amended by Section 5,
5           Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010, Section
            22), which relates to compensation schedules for
6           specific injuries; providing that the loss of certain
            body parts shall constitute total disability;
7           prohibiting the receipt of both permanent total
            disability and any other benefit simultaneously;
8           authorizing annual certification of continuing
            disability; providing authority to Commission to
9           refer certain cases to fraud unit; establishing
            partial disability rates for injuries incurred on or
10          after the effective date of act; specifying that the
            odd-lot doctrine shall not apply in permanent
11          disability cases; providing for the receipt of
            certain benefits for injuries incurred prior to
12          effective date of act; providing the maximum amount
            of compensation to be paid for certain disabilities;
13          modifying agency designation; amending 85 O.S. 2001,
            Section 24.1, as amended by Section 21, Chapter 1,
14          1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp.
            2010, Section 24.1), which relates to record keeping
15          requirements; modifying agency designations; amending
            85 O.S. 2001, Section 24.2, which relates to notice
16          requirements for certain injuries; modifying notice
            requirements for certain injuries; modifying agency
17          designation; amending 85 O.S. 2001, Section 25, which
            relates to the examination of injured employees;
18          modifying agency designation; amending 85 O.S. 2001,
            Section 26, as amended by Section 22, Chapter 1, 1st
19          Extraordinary Session, O.S.L. 2005 (85 O.S. Supp.
            2010, Section 26), which relates to specific notice
20          requirements; removing requirement that Administrator
            or certain judges approve certain settlements;
21          removing requirement that Court promulgate certain
            rules with respect to compromise settlements;
22          removing authority of Court to make certain rulings
            with respect to payment of certain compromise
23          settlements; removing authority of Court to make
            certain final decisions; modifying agency
24          designation; amending 85 O.S. 2001, Section 27.1,


     Req. No. 5555                                                  Page 9
1           which relates to cumulative medical testimony in
            certain cases; modifying agency designation;
2           authorizing Commission to review any compensation
            order, decision or award; providing for the review by
3           an administrative law judge or the Commission of
            certain terminated benefits for certain reasons;
4           authorizing Commission to make certain determinations
            upon review of certain compensation orders;
5           authorizing Commission to correct certain clerical
            errors; amending 85 O.S. 2001, Section 30, as amended
6           by Section 23, Chapter 1, 1st Extraordinary Session,
            O.S.L. 2005 (85 O.S. Supp. 2010, Section 30), which
7           relates to certain costs and penalties; modifying
            agency designation; modifying certain settlement
8           offer requirements; extending certain settlement
            deadlines; limiting amount claimant’s attorney may be
9           compensated in certain settlement agreements;
            prohibiting claimant attorney from deducting or
10          withholding certain portions of settlement proceeds
            from claimant for certain uses; amending 85 O.S.
11          2001, Section 41, which relates to the payment of
            certain permanent partial or permanent total awards;
12          modifying agency designation; amending 85 O.S. 2001,
            Section 41.1, which relates to whether certain
13          payments may be credited to employer or insurer;
            authorizing employers or insurers to deduct certain
14          payments made from certain permanent disability
            awards; removing authority of certain self-insured
15          employers to take credit for certain overpayments;
            amending 85 O.S. 2001, Section 42, as amended by
16          Section 1, Chapter 236, O.S.L. 2010 (85 O.S. Supp.
            2010, Section 42), which relates to the nonpayment or
17          failure to pay awards under certain circumstances;
            modifying agency designation; modifying applicable
18          interest rate to that of average Treasury Bills from
            preceding year; amending 85 O.S. 2001, Section 43, as
19          amended by Section 24, Chapter 1, 1st Extraordinary
            Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section
20          43), which relates to time limitations of injury or
            death claims; reducing amount of time a claimant may
21          claim compensation after injury; restricting the
            filing of certain claims after last medical
22          treatment; reducing amount of time a claimant may
            seek compensation for repeated trauma injuries;
23          reducing amount of time a claimant may make certain
            claims after termination of employment; reducing
24          amount of time a claimant may pursue a hearing on


     Req. No. 5555                                                  Page 10
1           certain claims; reducing amount of time claims may be
            heard after termination of payments; modifying agency
2           designation; authorizing Court to reopen certain
            claims; amending 85 O.S. 2001, Section 44, as amended
3           by Section 25, Chapter 1, 1st Extraordinary Session,
            O.S.L. 2005 (85 O.S. Supp. 2010, Section 44), which
4           relates to certain claims against third-party
            insurers; modifying agency designation; removing
5           prohibition against employer or insurer pursuing the
            right of subrogation in certain circumstances;
6           removing provision allowing employers to have a cause
            of action against third parties in certain
7           circumstances; amending 85 O.S. 2001, Section 45,
            which relates to certain benefits or assets of a
8           claimant being exempt in the determination of certain
            benefits; providing that the unemployment laws of any
9           other state shall not result in duplicative payment
            of certain benefits; amending 85 O.S. 2001, Section
10          47.1, which relates to waiver of compensation by
            employees in certain circumstances; updating agency
11          designation; amending 85 O.S. 2001, Section 48.1,
            which relates to certain liens for the payment of
12          child support; modifying agency designation; amending
            85 O.S. 2001, Section 61, as amended by Section 78,
13          Chapter 264, O.S.L. 2006 (85 O.S. Supp. 2010, Section
            61), which relates to means by which an employer may
14          secure compensation to injured employees; modifying
            agency designation; amending 85 O.S. 2001, Section
15          61.2, which relates to workplace safety plans;
            modifying agency designation; amending 85 O.S. 2001,
16          Section 64, as last amended by Section 79, Chapter
            264, O.S.L. 2006 (85 O.S. Supp. 2010, Section 64),
17          which relates to insurance policy requirements;
            requiring that insurers have complete settlement
18          authority to attend certain dispute resolution
            proceedings; specifying that certain violations shall
19          be subject to certain penalties in dispute resolution
            proceedings; amending 85 O.S. 2001, Sections 66.1 and
20          66.2, which relate to the Individual Self-Insured
            Guaranty Fund Board and the Group Self-Insurance
21          Association Guaranty Fund Board; modifying agency
            designations; amending 85 O.S. 2001, Sections 80, 81,
22          84, 85 and 104, which relate to the Workers’
            Compensation Act; modifying agency designation;
23          amending 85 O.S. 2001, Section 110, as amended by
            Section 1, Chapter 338, O.S.L. 2002 (85 O.S. Supp.
24          2010, Section 110), which relates to inquiry into an


     Req. No. 5555                                                  Page 11
1           employee’s prior claims; providing that an employee’s
            failure to answer truthfully certain inquiries into
2           past injuries shall subject the employee to
            discharge; modifying agency designation; amending 85
3           O.S. 2001, Section 112, which relates to the Advisory
            Council on Workers' Compensation; reducing membership
4           from nine to seven members; authorizing the Chairman
            of the Commission to act as ex officio nonvoting
5           member; specifying Governor appointments; specifying
            Speaker of the House of Representatives appointments;
6           specifying President Pro Tempore appointments;
            providing for selection of an additional member;
7           prohibiting certain professionals from serving on the
            Advisory Council; providing for three-year terms;
8           specifying quorum requirement of the Advisory
            Council; modifying agency designations; specifying
9           that Council shall consult with the Commission and
            Chief Medical Officer regarding oversight; amending
10          85 O.S. 2001, Sections 149.1 and 149.2, which relate
            to rules for certain employer self-insured pools;
11          modifying agency designation; amending 85 O.S. 2001,
            Section 171, as amended by Section 27, Chapter 1, 1st
12          Extraordinary Session, O.S.L. 2005 (85 O.S. Supp.
            2010, Section 171), which relates to certain
13          definition; modifying agency designation; amending 85
            O.S. 2001, Section 173, as last amended by Section
14          29, Chapter 1, 1st Extraordinary Session, O.S.L. 2005
            (85 O.S. Supp. 2010, Section 173), which relates to
15          the creation of the Multiple Injury Trust Fund;
            modifying agency designations; amending 85 O.S. 2001,
16          Section 175, as last amended by Section 30, Chapter
            1, 1st Extraordinary Session, O.S.L. 2005 (85 O.S.
17          Supp. 2010, Section 175), which relates to the
            administration of the Multiple Injury Trust Fund by
18          CompSource Oklahoma; modifying agency designation;
            amending 85 O.S. 2001, Section 177, which relates to
19          the creation of an administration fund; modifying
            agency designations; amending 85 O.S. 2001, Section
20          201, as amended by Section 6, Chapter 403, O.S.L.
            2010 (85 O.S. Supp. 2010, Section 201), which relates
21          to authority of the Administrator to impose certain
            penalties on health care providers for certain
22          violations; modifying agency designation; amending 85
            O.S. 2001, Section 201.1, as last amended by Section
23          6, Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010,
            Section 201.1), which relates to the creation of a
24          Physician Advisory Committee; modifying agency


     Req. No. 5555                                                  Page 12
1           designation; providing that recommendations made by
            the committee concerning acceptable deviations from
2           certain guidelines shall be reviewed and adopted by
            the Chief Medical Officer; removing authority of
3           Committee to make certain determinations with respect
            to permanent impairment; requiring treatment
4           guidelines be recommended to Chief Medical Officer
            for use in all workers’ compensation claims; defining
5           medical treatment for certain purposes; requiring
            that recommended guidelines reflect evidence and
6           scientifically approved standards of medical
            treatment; providing that certain treatments which
7           are outside of the scope of treatment guidelines may
            be approved in certain circumstances; requiring Chief
8           Medical Officer to explain in order why treatment is
            appropriately outside of medical guidelines; removing
9           provisions establishing treatment guidelines;
            modifying agency designation; directing Committee to
10          develop certain list; directing Committee to assist
            Administrator in developing certain plan; defining
11          terms; amending 85 O.S. 2001, Section 203, which
            relates to disputes between carriers or employers;
12          modifying agency designation; amending 85 O.S. 2001,
            Section 211, which relates to authorization to
13          inspect or examine certain records; modifying agency
            designation; repealing 85 O.S. 2001, Section 3.5, as
14          amended by Section 10, Chapter 1, 1st Extraordinary
            Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section
15          3.5), which relates to venue of workers’ compensation
            claims; repealing 85 O.S. 2001, Section 21, which
16          relates to the computation of average weekly wages;
            repealing 85 O.S. 2001, Section 28, which relates to
17          the review of awards by the Court; repealing 85 O.S.
            2001, Section 69.5, which relates to powers and
18          duties of the Workers’ Compensation Court Presiding
            Judge; repealing 85 O.S. 2001, Section 122, which
19          relates to the abrogation of the right to recover
            damages in certain circumstances; repealing 85 O.S.
20          2001, Section 201.2, which relates to requiring the
            Physician Advisory Committee to develop certain
21          recommendations; providing for codification; and
            providing an effective date.
22

23

24   BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:


     Req. No. 5555                                                  Page 13
1        SECTION 1.     AMENDATORY       85 O.S. 2001, Section 1.1, as

2    amended by Section 7, Chapter 1, 1st Extraordinary Session, O.S.L.

3    2005 (85 O.S. Supp. 2010, Section 1.1), is amended to read as

4    follows:

5        Section 1.1   A.   The Workers’ Compensation Act shall not apply

6    to cases of occupational disease in which the last injurious

7    exposure to the hazards of such disease occurred before June 6,

8    1953.

9        B.   The burden of proof, by a preponderance of the evidence,

10   shall be on the party requesting benefits or relief pursuant to the

11   provisions of the Workers’ Compensation Act unless otherwise

12   specifically provided for by law.

13       C.   The provisions of the Workers’ Compensation Act shall be

14   strictly construed by the Workers’ Compensation Court or Commission

15   and any appellate court reviewing a decision of the Workers’

16   Compensation Court or Commission.

17       SECTION 2.     AMENDATORY       85 O.S. 2001, Section 1.2, as

18   amended by Section 1, Chapter 453, O.S.L. 2010 (85 O.S. Supp. 2010,

19   Section 1.2), is amended to read as follows:

20       Section 1.2   A.   There is hereby created the Workers'

21   Compensation Court of Existing Claims which shall consist of eight

22   (8) four (4) judges.    Each judge of the Court shall be appointed to

23   a designated numbered position on the Court.   The positions shall be

24   numbered one through eight, five of which shall be permanently


     Req. No. 5555                                                    Page 14
1    assigned to the Oklahoma City Workers’ Compensation Court and three

2    of which shall be permanently assigned to the Tulsa Workers’

3    Compensation Court.   The initial terms of the judges by position

4    number shall expire on the following dates:

5        Position 1 shall expire 2-1-14.

6        Position 2 shall expire 2-1-14.

7        Position 3 shall expire 2-1-14.

8        Position 4 shall expire 2-1-12.

9        Position 5 shall expire 2-1-12.

10       Position 6 shall expire 2-1-16.

11       Position 7 shall expire 2-1-16.

12       Position 8 shall expire 2-1-12.

13       Position 9 shall expire 2-1-12.

14       Position 10 shall expire 2-1-14. The next two positions to

15   become vacant on or after November 1, 2010, shall not be refilled.

16       Thereafter, each position shall be filled by a judge appointed

17   to serve an eight-year term.   After a judge serves an eight-year

18   term, such judge shall be eligible to reapply for an additional term

19   after the lapse of a period of not less than three (3) years.

20       Provided, the judges serving unexpired terms on the effective

21   date of this act shall be eligible upon expiration of such terms for

22   appointment to one term of eight (8) years pursuant to this section.

23   A judge serving an unexpired term on the effective date of this act

24   who serves until such term expires shall be deemed to have served a


     Req. No. 5555                                                   Page 15
1    full six-year term.    If the judge is not reappointed, such judge

2    shall receive full salary, benefits, vesting rights and judicial

3    service for retirement purposes during active judicial service for a

4    period of not less than five (5) months.    Effective November 1,

5    2011, all existing positions of the Workers’ Compensation Court

6    shall become vacant.    The Governor shall appoint four new judges

7    from a list of nominees provided by the Judicial Nominating

8    Commission who shall be subject to confirmation by a majority of the

9    Senate.   When a vacancy on the Court of Existing Claims occurs or is

10   certain to occur or for initial appointments to the Court, the

11   Judicial Nominating Commission shall choose and submit to the

12   Governor and the Chief Justice of the Supreme Court the names of

13   three persons for each appointment, each of whom has previously

14   notified the Commission in writing that he or she will serve as a

15   judge if appointed.    The Governor shall appoint one of the nominees

16   to fill the vacancy with the advice and consent of the Senate.      If

17   the Senate fails to confirm within ninety (90) days, the Governor

18   may select from the two remaining nominees or request three

19   additional nominees from the Judicial Nominating Commission.     If the

20   Governor fails to do so within sixty (60) days, the Chief Justice of

21   the Supreme Court shall appoint one of the nominees with the advice

22   and consent of the Senate, the appointment to be certified to the

23   Secretary of State.    If the Senate is not in session when an

24   appointment is made, the Senate must confirm such appointment during


     Req. No. 5555                                                    Page 16
1    its next regular session.    If the Senate fails to confirm such

2    appointment, the Governor shall ask the Judicial Nominating

3    Commission for the names of three persons, which shall not include

4    the name of the candidate not confirmed, and shall submit a new

5    candidate to the Senate for confirmation within thirty (30) days of

6    receipt of such nominees.

7        B.   A judge of the Court of Existing Claims shall have been

8    licensed to practice law in this state for a period of not less than

9    five (5) years and shall have not less than five (5) years of

10   workers’ compensation experience prior to appointment.   Each judge,

11   before entering upon the duties of   office, shall take and subscribe

12   to an oath of office and file the same with the Secretary of State.

13   Each judge shall continue to serve until his or her successor has

14   been appointed and qualified.   A judge may be removed for cause by

15   the Court on the Judiciary prior to the expiration of his or her

16   term.

17       C.   Each judge shall receive a salary equal to that paid to a

18   district judge of this state, and shall devote full time to his or

19   her duties and shall not engage in the private practice of law

20   during the term in office.

21       D.   The Governor shall appoint from among the judges of the

22   Workers' Compensation Court of Existing Claims a presiding judge of

23   that Court who shall serve for a two-year term commencing with the

24   initial appointment beginning January 1, 1987.   Any judge so


     Req. No. 5555                                                      Page 17
1    appointed shall not serve more than two times in succession.    The

2    presiding judge shall preside at all hearings held by the Court of

3    Existing Claims, preside at such meetings of the judges of the Court

4    of Existing Claims as may be necessary and perform such other

5    supervisory duties as the needs of the Court of Existing Claims may

6    require.   The presiding judge may designate one of the other judges

7    to act as presiding judge in his or her place whenever necessary

8    during the disqualification, disability, or absence of the presiding

9    judge. During the disqualification, disability, or absence of the

10   presiding judge, the acting presiding judge shall exercise all of

11   the powers of the presiding judge.

12       E.   The Court of Existing Claims and the Workers’ Compensation

13   Commission as defined in this act shall have the authority to adopt

14   reasonable rules within its respective areas of responsibility

15   including the rules of procedure for the Court en banc, after notice

16   and public hearing, for effecting the purposes of the Workers'

17   Compensation Act.   All of the judges of the Court of Existing Claims

18   and Commissioners for the Workers’ Compensation Commission shall be

19   present at all meetings wherein their respective rules are adopted

20   or amended.   All rules, upon adoption, shall be submitted to the

21   Supreme Court, which shall either approve or disapprove them within

22   thirty (30) days.   All rules, upon approval by the Supreme Court,

23   shall be published and be made available to the public and, if not

24


     Req. No. 5555                                                    Page 18
1    inconsistent with the law, shall be binding in the administration of

2    the Workers' Compensation Act.

3        F.   The Court of Existing Claims is hereby designated and

4    confirmed as a court of record, with for all workers’ compensation

5    claims for which the date of injury was prior to November 1, 2011.

6    With respect to any matter within the limits of its jurisdiction

7    their respective jurisdictions, and within such limits the judges or

8    Commissioners thereof shall possess the powers and prerogatives of

9    the judges of the other courts of record of this state, including

10   the power to punish for contempt those persons who disobey a

11   subpoena, or refuse to be sworn or to answer as a witness, when

12   lawfully ordered to do so.

13       G.   The principal office of the Court of Existing Claims shall

14   be situated in the City of Oklahoma City in quarters assigned by the

15   Department of Central Services.   The Court of Existing Claims may

16   hold hearings in any city of this state.   The Tulsa Workers’

17   Compensation Court shall not be closed without the approval of the

18   Legislature.

19       H.   All county commissioners and presiding district judges of

20   this state shall make quarters available for the conducting of

21   hearings by a judge of the Court of Existing Claims upon request by

22   the Court of Existing Claims.

23       I.   The judges of the Court of Existing Claims shall determine

24   the qualifications necessary for the job of Administrator.   Said


     Req. No. 5555                                                    Page 19
1    qualifications shall be submitted to the Chief Justice of the

2    Supreme Court for approval, disapproval or modification.

3        J.   Judges of the Workers' Compensation Court of Existing Claims

4    or Commissioners for the Workers’ Compensation Commission may punish

5    for direct contempt pursuant to Sections 565, 565.1 and 566 of Title

6    21 of the Oklahoma Statutes.

7        SECTION 3.      AMENDATORY      85 O.S. 2001, Section 1.2A, is

8    amended to read as follows:

9        Section 1.2A   Notwithstanding other limits established by law,

10   beginning January 1, 1998, the following judicial officers shall

11   receive compensation for their services, payable monthly as follows:

12       A judge of the Workers' Compensation Court of Existing Claims or

13   Commissioner of the Workers’ Compensation Commission shall receive a

14   salary as prescribed by Section 1.2 of Title 85 of the Oklahoma

15   Statutes this title.

16       SECTION 4.      AMENDATORY      85 O.S. 2001, Section 1.3, as

17   amended by Section 8, Chapter 1, 1st Extraordinary Session, O.S.L.

18   2005 (85 O.S. Supp. 2010, Section 1.3), is amended to read as

19   follows:

20       Section 1.3    A.   The chief administrative officer of the

21   Workers' Compensation Court of Existing Claims shall be the

22   Administrator, who shall be subject to the general supervision of

23   the presiding judge of the Court of Existing Claims, subject to the

24


     Req. No. 5555                                                     Page 20
1    general administrative authority of the Chief Justice of the Supreme

2    Court.

3        B.    The person serving as Administrator on the date of passage

4    and approval of this act shall continue to serve as Administrator of

5    the Court of Existing Claims, provided said person is serving as

6    Administrator on the effective date of this act.

7        C.    Except as provided in subsection B of this section, the

8    Administrator shall be appointed by the Governor.

9        D.    The salary of the Administrator shall be ninety percent

10   (90%) of the authorized salary of a judge of the Court of Existing

11   Claims.

12       E.    The Administrator shall serve a six-year term.   During the

13   term, the Administrator may be removed from office only for cause,

14   as provided by law for the removal of officers not subject to

15   impeachment, pursuant to the provisions of Sections 1181 through

16   1197 of Title 22 of the Oklahoma Statutes.

17       F.    An Administrator who otherwise qualifies to serve as a judge

18   of the Court of Existing Claims shall not be eligible to serve as a

19   judge of the Court of Existing Claims for a period of one (1) year

20   from the last date served as Administrator of the Court.

21       G.    In addition to   other duties set forth in Title 85 of the

22   Oklahoma Statutes this title, the Administrator, subject to approval

23   of the presiding judge, shall organize, direct and develop the

24   administrative work of the Court of Existing Claims, including the


     Req. No. 5555                                                    Page 21
1    docketing, clerical, technical and financial work, establish hours

2    of operation, and perform such other duties relating to matters

3    within the purview of the Court of Existing Claims as any judge of

4    the Court of Existing Claims may request.

5        H.   The Administrator shall employ other employees of the Court

6    of Existing Claims, within budgetary limitation, necessary to carry

7    out the work and orders of the Court of Existing Claims in an

8    efficient and expedient manner.

9        SECTION 5.      NEW LAW     A new section of law to be codified

10   in the Oklahoma Statutes as Section 1.4 of Title 85, unless there is

11   created a duplication in numbering, reads as follows:

12       A.   There is hereby created the Workers' Compensation

13   Commission.   The Workers’ Compensation Commission shall consist of

14   three (3) members appointed by the Governor who shall be confirmed

15   by the State Senate for terms of six (6) years who shall devote

16   their entire time to the duties of the Commission and shall

17   administer the provisions of this act.

18       One member shall be an attorney, who shall be Chair of the

19   Commission and who shall have been engaged in active practice of law

20   in the State of Oklahoma for not less than five (5) years next

21   preceding the date of appointment and who shall have at least five

22   (5) years of experience in workers’ compensation matters in

23   Oklahoma.   Two members shall be individuals who shall each have at

24   least five (5) years of experience and expertise in the field of


     Req. No. 5555                                                    Page 22
1    workers’ compensation in Oklahoma.   These two members shall not be

2    required to be attorneys; however, one of these two members shall be

3    a physician as defined in Section 14 of Title 85 of the Oklahoma

4    Statutes.

5        B.   Each member shall receive a salary equal to that of a

6    district judge of this state.   The salaries shall be paid from the

7    Workers’ Compensation Fund and shall be paid in the manner as are

8    salaries of other state officials or employees.

9        SECTION 6.      NEW LAW     A new section of law to be codified

10   in the Oklahoma Statutes as Section 1.5 of Title 85, unless there is

11   created a duplication in numbering, reads as follows:

12       A.   Under the jurisdiction of the Workers’ Compensation

13   Commission there are hereby created the positions of administrative

14   law judges.   Such judges shall be hired by the Commission and shall

15   be located so that one each is permanently assigned to the

16   Southeast, Southwest, Northwest and Northeast regions of the state.

17   Four additional judges shall be hired by the Commission and shall be

18   located two in Tulsa and two in Oklahoma City.

19       B.   The counties located in the Southeast region shall be:

20   Atoka, Bryan, Carter, Choctaw, Coal, Garvin, Haskell, Hughes,

21   Johnston, Latimer, LeFlore, Love, Marshall, McCurtain, McIntosh,

22   Murray, Okfuskee, Pittsburg, Pontotoc, Pushmataha and Seminole.

23

24


     Req. No. 5555                                                     Page 23
1        C.   The counties located in the Southwest region shall be:

2    Beckham, Caddo, Comanche, Cotton, Grady, Greer, Harmon, Jackson,

3    Jefferson, Kiowa, Stephens, Tillman and Washita.

4        D.   The counties located in the Northwest region shall be:

5    Alfalfa, Blaine, Beaver, Cimarron, Custer, Dewey, Ellis, Garfield,

6    Grant, Harper, Kay, Kingfisher, Major, Noble, Payne, Roger Mills,

7    Texas, Woods and Woodward.

8        E.   The counties located in the Northeast region shall be:

9    Adair, Cherokee, Craig, Delaware, Mayes, Muskogee, Nowata, Okmulgee,

10   Ottawa, Sequoyah and Washington.

11       F.   The counties located in the Tulsa region shall be:   Creek,

12   Osage, Pawnee, Rogers, Tulsa and Wagoner.

13       G.   The counties located in the Oklahoma City region shall be:

14   Canadian, Cleveland, Lincoln, Logan, McClain, Oklahoma and

15   Pottawatomie.

16       H.   All claims for workers’ compensation under Title 85 of the

17   Oklahoma Statutes shall be heard in the region of the state where

18   the accident occurred, where the claimant resided at the time of the

19   injury or where the employer has its primary place of business.      The

20   determination of regional venue shall be by the priority listed

21   above, unless agreed to by both parties.    All administrative law

22   judges shall be subject to confirmation by the State Senate.   Upon

23   agreement of the parties, the Commission may hold hearings related

24   to a claim by a video conference.


     Req. No. 5555                                                     Page 24
1        SECTION 7.      NEW LAW      A new section of law to be codified

2    in the Oklahoma Statutes as Section 1.6 of Title 85, unless there is

3    created a duplication in numbering, reads as follows:

4        A.   The Governor may remove any member of the Workers’

5    Compensation Commission for inefficiency, neglect of duty, or

6    misconduct in office.    The Governor shall provide that member in

7    advance a copy of the causes or charges preferred and an opportunity

8    to be publicly heard, in person or by counsel, upon not less than

9    ten (10) days’ notice.    Such removal shall be confirmed by a

10   majority of the Senate.

11       B.   A representative of the Office of the Attorney General shall

12   attend the proceedings and, upon the request of the Governor, shall

13   advise or assist the Senate in the proceedings.

14       C.   Either party may require the attendance and testimony of

15   witnesses as provided in Title 12 of the Oklahoma Statutes.

16       D.   If a member is removed, the Governor shall file in the

17   Office of the Secretary of State a complete statement of all causes

18   or charges made against the member and findings, together with a

19   complete record of all proceedings and a transcript of testimony.

20   It shall constitute a public record of the state.

21       E.   The Senate shall have the authority to subpoena and take

22   testimony from any party to the removal, including, but not limited

23   to, the Governor.

24


     Req. No. 5555                                                     Page 25
1        SECTION 8.      NEW LAW     A new section of law to be codified

2    in the Oklahoma Statutes as Section 1.7 of Title 85, unless there is

3    created a duplication in numbering, reads as follows:

4        A.   Members of the Workers’ Compensation Commission shall be

5    considered officers of the state and shall take the oath prescribed

6    by the Oklahoma Constitution and the laws of Oklahoma.

7        B.   Except when adopting rules, which requires all members to be

8    present and participating, a majority of the Commission shall

9    constitute a quorum for the transaction of business, and vacancies

10   shall not impair the right of the remaining members to exercise all

11   the powers of the full Commission so long as a majority remains.

12       C.   1.   The Commission shall maintain and keep open, during

13   reasonable business hours, an office in Oklahoma City, for the

14   transaction of business, at which office its official records and

15   papers shall be kept.

16       2.   The Commission or any member of the Commission shall hold

17   sessions and conduct hearings at any local career and technology

18   education center, also known as state-sponsored Career Tech, within

19   the state.

20       D.   The Commission shall have a seal for authentication of its

21   orders, awards, and proceedings, which shall have inscribed the

22   words: “Workers’ Compensation Commission, State of Oklahoma”.

23

24


     Req. No. 5555                                                    Page 26
1        SECTION 9.       NEW LAW     A new section of law to be codified

2    in the Oklahoma Statutes as Section 1.8 of Title 85, unless there is

3    created a duplication in numbering, reads as follows:

4        A.   1.    For the purpose of administering the provisions of this

5    act, the Workers’ Compensation Commission is authorized:

6              a.     to make such rules and regulations as may be found

7                     necessary,

8              b.     to appoint and fix the compensation of temporary

9                     technical assistants and medical and legal advisers

10                    and to appoint and to fix the compensation of clerical

11                    assistants and other officers and employees, and

12             c.     to make such expenditures, including those for

13                    personal services, rent, books, periodicals, office

14                    equipment, and supplies, for printing and binding as

15                    may be necessary, and for informing people of the

16                    Counselor program.

17       2.   a.     Prior to the adoption, prescription, amendment

18                   modification, or repeal of any rule, regulation, or

19                   form, the Commission shall give at least forty-five

20                   (45) days’ notice of its intended action.

21             b.     The notice shall include a statement of the terms or

22                    substance of the intended action or description of the

23                    subjects and issues involved, and the time, place, and

24


     Req. No. 5555                                                       Page 27
1                       manner in which interested persons may present their

2                       views thereon.

3                c.     The notice shall be mailed to any person specified by

4                       law or who shall have requested advance notice of

5                       rule-making proceedings.

6        3.   The Commission shall afford all interested persons a

7    reasonable opportunity to submit written data, views, or arguments,

8    and, if the Commission in its discretion directs, oral testimony or

9    argument.     The Commission shall comply with the Administrative

10   Procedures Act.

11       4.   All expenditures of the Commission in the administration of

12   this act shall be allowed and paid from the Workers’ Compensation

13   Fund upon the presentation of itemized vouchers approved by the

14   Commission.

15       B.   1.      The Commission may appoint as many persons to be

16   examiners, experts, investigators, counselors, clerks, and other

17   employees as it deems necessary to effectuate the provisions of this

18   act.

19       2.   Rate experts shall be considered employees of the Commission

20   and the Insurance Commissioner and shall be paid from the Workers’

21   Compensation Fund.

22       3.   Employees appointed pursuant to this subsection shall

23   receive an annual salary to be fixed by the Commission within the

24   appropriation made for the Commission.


     Req. No. 5555                                                       Page 28
1        C.   It shall be the duty of an administrative law judge, under

2    the rules adopted by the Commission, to hear and determine claims

3    for compensation and to conduct hearings and investigations and to

4    make such orders, decisions, and determinations as may be required

5    by any rule or order of the Commission.   The duty of an

6    administrative law judge shall be to rule only on issues of

7    determination of eligibility for compensation, and shall notify both

8    parties of that decision.   If the claim is deemed compensable, the

9    administrative law judge shall direct medical treatment, if

10   appropriate, be provided by a physician selected by the employer,

11   and temporary total disability, if appropriate.

12       SECTION 10.     NEW LAW      A new section of law to be codified

13   in the Oklahoma Statutes as Section 1.9 of Title 85, unless there is

14   created a duplication in numbering, reads as follows:

15       Any member or employee of the Workers’ Compensation Commission

16   shall be entitled to receive necessary traveling expenses actually

17   incurred and for subsistence while traveling on official business

18   and away from the designated station of that member or employee.

19   The expenses shall be certified by the person who incurred them and

20   shall be allowed and paid upon presentation of vouchers approved by

21   the Commission.

22       SECTION 11.     NEW LAW      A new section of law to be codified

23   in the Oklahoma Statutes as Section 1.10 of Title 85, unless there

24   is created a duplication in numbering, reads as follows:


     Req. No. 5555                                                  Page 29
1        A.    In addition to its other duties and powers, the Workers’

2    Compensation Commission is granted full power and authority to:

3        1.    Hear and determine all claims for compensation, including,

4    but not limited to, claims based upon injuries that occurred outside

5    the state for which compensation is payable under this act;

6        2.    Employ a Chief Medical Officer and special medical examiners

7    and advisors as necessary who shall be paid a reasonable amount per

8    day to be determined by the Commission, plus reasonable traveling

9    expenses;

10       3.    Hear appeals from orders made by the Chief Medical Officer

11   regarding ratings of permanent disability, need for medical services

12   or assignment of independent medical evaluations;

13       4.    Approve claims for medical services and attorney fees;

14       5.    Excuse failure to give notice either of injury or death of

15   any employee;

16       6.    Make, modify, or rescind awards, and make and enter findings

17   of fact and rulings of law;

18       7.    Enter orders in appealed cases;

19       8.    Determine the time for the payment of compensation and order

20   the reimbursement of employers for amounts advanced;

21       9.    Assess penalties;

22       10.   Prescribe rules and regulations governing the

23   representation of employees, employers, and carriers in respect to

24   claims before the Commission;


     Req. No. 5555                                                      Page 30
1        11.   Issue subpoenas, administer oaths, and take testimony, by

2    deposition or otherwise;

3        12.   Have and exercise all other powers and duties conferred or

4    imposed by this act; and

5        13.   Transfer the excess of income over expenses from the

6    Commission’s annual educational conference to any nonprofit

7    charitable organization designed to provide scholarships to children

8    of workers who have been killed or become permanently and totally

9    disabled from a compensable injury, including, but not limited to,

10   any accumulation from prior years’ conferences.

11       B.    1.   In addition to the other powers and duties granted to

12   the Commission in this section and otherwise provided by law, the

13   Commission is authorized to establish and impose reasonable fees to

14   recover the cost of preparation of various informative materials

15   distributed by the Commission.

16       2.    The fees shall be established by regulation of the

17   Commission.

18       3.    Funds derived from fees shall be deposited in the Workers’

19   Compensation Fund to be used to defray expenses incurred in

20   preparation and distribution of materials.

21       SECTION 12.       NEW LAW     A new section of law to be codified

22   in the Oklahoma Statutes as Section 1.11 of Title 85, unless there

23   is created a duplication in numbering, reads as follows:

24


     Req. No. 5555                                                    Page 31
1        On or before the first day of the regular session of the

2    Legislature, the Workers’ Compensation Commission under the

3    authority of at least two of its members shall make to the Governor

4    and to the Legislature a report of the administration of this act

5    for the preceding annual period.

6        SECTION 13.      AMENDATORY     85 O.S. 2001, Section 3, as last

7    amended by Section 1, Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010,

8    Section 3), is amended to read as follows:

9        Section 3.    As used in the Workers’ Compensation Act:

10       1.   “Administrator” means the Administrator of workers’

11   compensation as provided for in the Workers’ Compensation Act;

12       2.   “Amount in dispute” means the dollar value of any permanent

13   disability award granted to the employee by the Court for a

14   disability claim which is greater than the dollar amount offered by

15   the employer to the employee for such disability claim if the

16   employer admits compensability within twenty (20) days of the filing

17   of the Employee’s First Notice of Accidental Injury and Claim for

18   Compensation, has not disputed medical treatment, and has made a

19   written settlement offer within fifteen (15) thirty (30) days of the

20   employee reaching maximum medical improvement;

21       3.   “Case management” means the ongoing coordination, by a case

22   manager, of health care services provided to an injured or disabled

23   worker, including, but not limited to:

24


     Req. No. 5555                                                    Page 32
1              a.    systematically monitoring the treatment rendered and

2                    the medical progress of the injured or disabled

3                    worker,

4              b.    ensuring that any treatment plan follows all

5                    appropriate treatment protocols, utilization controls

6                    and practice parameters,

7              c.    assessing whether alternative health care services are

8                    appropriate and delivered in a cost-effective manner

9                    based upon acceptable medical standards, and

10             d.    ensuring that the injured or disabled worker is

11                   following the prescribed health care medical treatment

12                   plan which follows acceptable medical standards as

13                   adopted by the Chief Medical Officer with the advice

14                   of the Physician Advisory Committee.   Any final

15                   decision in authorizing medical care or treatment,

16                   including, but not limited to, medical device

17                   equipment or prescription drug authorization, shall be

18                   the sole responsibility of the loss adjuster, unless

19                   such responsibility has been delegated to another in

20                   writing;

21       4.   “Case manager” means a person who:

22             a.    is a registered nurse with a current, active

23                   unencumbered license from the Oklahoma Board of

24                   Nursing, or


     Req. No. 5555                                                      Page 33
1              b.    possesses one or more of the following certifications

2                    which indicate the individual has a minimum number of

3                    years of case management experience, has passed a

4                    national competency test and regularly obtains

5                    continuing education hours to maintain certification:

6                    (1)   Certified Disability Management Specialist

7                          (CDMS),

8                    (2)   Certified Case Manager (CCM),

9                    (3)   Certified Rehabilitation Registered Nurse (CRRN),

10                   (4)   Case Manager – Certified (CMC),

11                   (5)   Certified Occupational Health Nurse (COHN), or

12                   (6)   Certified Occupational Health Nurse Specialist

13                         (COHN-S).

14   The case manager’s objective is to arrange for the delivery of cost-

15   effective services that meet the patient’s medical needs.    The case

16   manager acts both as an ombudsman for the patient and as an agent of

17   the payor;

18       5.   “Child” means any dependent child as defined by the Internal

19   Revenue Service;

20       6.   “Claimant” means a person who claims benefits for an injury

21   pursuant to the provisions of the Workers’ Compensation Act;

22       6. 7.    Commission” means the Workers’ Compensation Commission;

23       8.    a.    “Compensable injury”:

24


     Req. No. 5555                                                      Page 34
1                    (1)   means any injury or occupational illness, causing

2                          internal or external harm to the body, which

3                          arises out of and in the course of employment if

4                          such employment was the major cause of the

5                          specific injury or illness.   An injury, other

6                          than cumulative trauma, is compensable only if it

7                          is caused by a specific incident and is

8                          identifiable by time, place and occurrence unless

9                          it is otherwise defined as compensable in this

10                         title.   A compensable injury must be established

11                         by objective medical evidence, as defined in this

12                         section.   An injury by accident is compensable

13                         only if the accident was the prevailing factor in

14                         causing both the resulting medical condition and

15                         disability.   The "prevailing factor” is defined

16                         to be the primary factor, in relation to any

17                         other factor, causing both the resulting medical

18                         condition and disability supported by objective

19                         medical finding,

20                   (2)   includes heart-related or vascular injury,

21                         illness or death only if an accident or the

22                         claimant’s employment is the major cause of the

23                         heart-related or vascular injury.   A heart-

24                         related or vascular injury, illness, or death is


     Req. No. 5555                                                      Page 35
1                    a compensable injury only if, in relation to

2                    other factors contributing to the physical harm,

3                    an accident is the major cause of the physical

4                    harm.

5                    An injury, illness or death included in this

6                    subparagraph shall not be deemed to be a

7                    compensable injury unless it is shown that the

8                    exertion of the work necessary to precipitate

9                    disability or death was extraordinary and unusual

10                   in comparison to the usual work of the employee

11                   in the course of the regular employment of the

12                   employee, or alternatively, that some unusual and

13                   unpredicted incident occurred which is found to

14                   have been the major cause of the physical harm.

15                   Stress, physical or mental, shall not be

16                   considered in determining whether the employee or

17                   claimant has met the burden of proof.

18                   The injury must be established by objective

19                   medical evidence, as defined in this section.

20                   The employee has the burden of proof to establish

21                   by a preponderance of the evidence that such

22                   unexpected or unforeseen injury was in fact

23                   caused by the employment.   There is no

24                   presumption from the mere occurrence of such


     Req. No. 5555                                              Page 36
1                          unexpected or unforeseen injury that the injury

2                          was in fact caused by the employment,

3                    (3)   includes personal property which is used to make

4                          up the physical structure of the body, such as

5                          artificial dentures, artificial limbs, glass

6                          eyes, eye glasses and other prostheses which are

7                          placed in or on the body to replace the physical

8                          structure which became damaged as a result of the

9                          injury,

10                   (4)   includes injury due to the willful act of a third

11                         person directed against an employee because of

12                         the employee’s employment, and

13                   (5)   includes an injury or disease resulting from a

14                         vaccine administered at the direction of the

15                         employer or in response to a declaration by the

16                         Secretary of the United States Department of

17                         Health and Human Services under the Public Health

18                         Services Act to address an actual or potential

19                         health risk related to the employee’s employment.

20            b.     “Compensable injury” shall not include:

21                   (1)   mental injury that is unaccompanied by physical

22                         injury, except in the case of rape, holdups,

23                         witnessing killings, or violent death which

24                         arises out of and in the course of employment,


     Req. No. 5555                                                   Page 37
1                    (2)   alcoholism and disabilities attributable thereto,

2                    (3)   drug addiction or disabilities resulting

3                          therefrom, except when such addiction or

4                          disability resulted from the use of drugs or

5                          medicines prescribed for the treatment of the

6                          initial injury by an authorized physician and the

7                          employee followed the dosage prescribed,

8                    (4)   an employee’s use of a motor vehicle that was

9                          provided to the employee by a motor vehicle

10                         dealer and bears a dealer’s license plate for

11                         commuting to or from work or any other nonwork

12                         activity,

13                   (5)   injury or disability caused primarily by the

14                         natural deterioration of tissue, an organ or part

15                         of the body, nor by the ordinary, gradual

16                         deterioration or progressive degeneration caused

17                         by the aging process, unless the employment is a

18                         major cause of the deterioration or degeneration

19                         and is supported by objective medical evidence,

20                   (6)   an injury incurred by an employee by the

21                         employee’s willful intention to injure oneself or

22                         another,

23                   (7)   an injury or disease caused by exposure to a

24                         toxic substance, including, but not limited to,


     Req. No. 5555                                                     Page 38
1                           asbestos, silica, fungus or mold, unless there is

2                           a preponderance of the evidence establishing that

3                           exposure to the specific substance involved, at

4                           the levels to which the employee was exposed, can

5                           cause the injury or disease sustained by the

6                           employee,

7                    (8)    a claim for mental stress resulting solely from

8                           disciplinary action taken in good faith by the

9                           employer,

10                   (9)    an injury resulting directly or indirectly from

11                          idiopathic causes,

12                   (10)   any contagious or infectious disease unless it

13                          arises out of and occurs during the course of

14                          employment,

15                   (11)   death due to natural causes occurring while the

16                          worker is at work,

17                   (12)   injury which was inflicted upon the employee at a

18                          time when employment services were not being

19                          performed or before the employee was hired or

20                          after the employment relationship was terminated,

21                          or

22                   (13)   injury where the accident was substantially

23                          occasioned by the use of alcohol, illegal drugs,

24


     Req. No. 5555                                                    Page 39
1                    or prescription drugs used in contravention of

2                    the orders of a physician.

3                    (a)   The presence of alcohol, illegal drugs, or

4                          prescription drugs used in contravention of

5                          orders of a physician shall create a

6                          rebuttable presumption that the injury or

7                          accident was substantially occasioned by the

8                          use of alcohol, illegal drugs, or

9                          prescription drugs used in contravention of

10                         orders of a physician.

11                   (b)   Every employee is deemed by his or her

12                         performance of services to have impliedly

13                         consented to reasonable and responsible

14                         testing by properly trained medical or law

15                         enforcement personnel for the presence of

16                         any of the aforementioned substances in the

17                         body of the employee.

18                   (c)   An employee shall not be entitled to

19                         compensation unless it is proved by a

20                         preponderance of the evidence that the

21                         alcohol, illegal drugs, or prescription

22                         utilized in contravention of the orders of

23                         the physician did not substantially occasion

24                         the injury or accident.


     Req. No. 5555                                                 Page 40
1                         (d)    Notwithstanding Section 554 of Title 40 of

2                                the Oklahoma Statutes, a public or private

3                                employer may require an employee to undergo

4                                drug or alcohol testing if the employee or

5                                another person has sustained a work-related

6                                injury.   For purposes of workers’

7                                compensation, an employee who tests positive

8                                for the presence of substances defined and

9                                consumed pursuant to Section 465.20 of Title

10                               63 of the Oklahoma Statutes, alcohol, or

11                               prescription drugs not prescribed by the

12                               employee’s treating medical provider shall

13                               not be eligible for such compensation unless

14                               the employee proves by a preponderance of

15                               the evidence that the substances or alcohol

16                               were not the proximate cause of the injury

17                               or accident.

18            c.     A compensable injury must be established by medical

19                   evidence supported by objective findings as defined in

20                   this act.

21            d.     The burden of proof of a compensable injury shall be

22                   on the employee.

23

24


     Req. No. 5555                                                    Page 41
1             e.     When an employee is determined to have a compensable

2                    injury, the employee is entitled to medical and

3                    temporary disability as provided by this section.

4                    (1)   Permanent benefits shall be awarded only upon a

5                          determination that the compensable injury was the

6                          major cause of the disability or impairment.

7                    (2)   If any compensable injury combines with a

8                          preexisting disease or condition or the natural

9                          process of aging to cause or prolong disability

10                         or a need for treatment, permanent benefits shall

11                         be payable for the resultant condition only if

12                         the compensable injury is the major cause of the

13                         permanent disability or need for treatment.

14                   (3)   Under this subparagraph, benefits shall not be

15                         payable for a condition which results from a non-

16                         work-related independent intervening cause

17                         following a compensable injury which causes or

18                         prolongs disability or a need for treatment.   A

19                         non-work-related independent intervening cause

20                         does not require negligence or recklessness on

21                         the part of a claimant.

22                   (4)   Nothing in this subparagraph shall limit the

23                         payment of rehabilitation benefits or benefits

24                         for disfigurement as set forth in this section.


     Req. No. 5555                                                      Page 42
1               f.   Aging and the effects of aging on a compensable injury

2                    are not to be considered in determining whether there

3                    has been a change in physical condition.   Nor shall

4                    aging or the effect of aging on a compensable injury

5                    be considered in determining permanent disability

6                    pursuant to this section or any other section in this

7                    act.   The purpose and intent of this section is to

8                    annul any and all case law inconsistent with this

9                    section;

10       9.    “Court” means the Workers’ Compensation Court of Existing

11   Claims, the Workers’ Compensation Commission, the Chief Medical

12   Officer or any of the administrative law judges;

13       10.   “Compensation” means the benefit payable to the employee or

14   the dependents of the employee in the form of:

15              a.   temporary total or temporary partial disability

16                   payments,

17              b.   permanent partial or permanent total disability

18                   payments, settlements or awards, and

19              c.   other compensation which may include medical care,

20                   prescription costs, other fees or costs associated

21                   with physical or vocational rehabilitation and funeral

22                   expenses.

23   Compensation shall be computed on the average weekly wage earned by

24   the employee in force at the time of the accident.     Where the


     Req. No. 5555                                                      Page 43
1    injured employee was working other than full time, the average

2    weekly wage shall be determined by dividing the earnings of the

3    employee by the number of hours required to earn the wages during

4    the period not to exceed fifty-two (52) weeks preceding the week in

5    which the accident occurred and by multiplying this hourly wage by

6    the number of hours in a full-time work week as set out in this

7    title, as it applies to the claimant;

8        7. 11.    “Cumulative trauma” means a compensable injury, the

9    major cause of which results from employment activities which are

10   repetitive in nature and engaged in over a period of time and which

11   is supported by objective medical evidence as defined in this

12   section;

13       8. 12.   “Death” means only death resulting from a compensable

14   injury as defined in this title;

15       13.    “Employer”, except when otherwise expressly stated, means a

16   person, partnership, association, limited liability company,

17   corporation, and the legal representatives of a deceased employer,

18   or the receiver or trustee of a person, partnership, association,

19   corporation, or limited liability company, departments,

20   instrumentalities and institutions of this state and divisions

21   thereof, counties and divisions thereof, public trusts, boards of

22   education and incorporated cities or towns and divisions thereof,

23   employing a person included within the term “employee” as herein

24   defined.   “Employer” may also include the insurance company or


     Req. No. 5555                                                     Page 44
1    representative of the insurance company of the employer, if

2    appropriate;

3        9. 14.   “Employee” means any person engaged in the employment of

4    any person, firm, limited liability company or corporation covered

5    by the terms of the Workers’ Compensation Act, and shall include

6    workers associating themselves together under an agreement for the

7    performance of a particular piece of work, in which event such

8    persons so associating themselves together shall be deemed employees

9    of the person having the work executed; provided, that if such

10   associated workers shall employ a worker in the execution of such

11   contract, then as to such employed worker, both the associated

12   employees and the principal employer shall at once become subject to

13   the provisions of the Workers’ Compensation Act relating to

14   independent contractors.   Sole proprietors, members of a

15   partnership, individuals who are party to a franchise agreement as

16   set out by the Federal Trade Commission franchise disclosure rule,

17   16 CFR 436.1 through 436.11, members of a limited liability company

18   who own at least ten percent (10%) of the capital of the limited

19   liability company or any stockholder-employees of a corporation who

20   own ten percent (10%) or more stock in the corporation are

21   specifically excluded from the foregoing definition of “employee”,

22   and shall not be deemed to be employees as respects the benefits of

23   the Workers’ Compensation Act.   Provided, a sole proprietor, member

24   of a partnership, member of a limited liability company who owns at


     Req. No. 5555                                                    Page 45
1    least ten percent (10%) of the capital of the limited liability

2    company or any stockholder-employee of a corporation who owns ten

3    percent (10%) or more stock in the corporation who does not so elect

4    to be covered by a policy of insurance covering benefits under the

5    Workers’ Compensation Act, when acting as a subcontractor, shall not

6    be eligible to be covered under the prime contractor’s policy of

7    workers’ compensation insurance; however, nothing herein shall

8    relieve the entities enumerated from providing workers’ compensation

9    insurance coverage for their employees.   Sole proprietors, members

10   of a partnership, members of a limited liability company who own at

11   least ten percent (10%) of the capital of the limited liability

12   company or any stockholder-employees of a corporation who own ten

13   percent (10%) or more stock in the corporation may elect to include

14   the sole proprietors, any or all of the partnership members, any or

15   all of the limited liability company members or any or all

16   stockholder-employees as employees, if otherwise qualified, by

17   endorsement to the policy specifically including them under any

18   policy of insurance covering benefits under the Workers’

19   Compensation Act.   When so included, the sole proprietors, members

20   of a partnership, members of a limited liability company or any or

21   all stockholder-employees shall be deemed to be employees as

22   respects the benefits of the Workers’ Compensation Act.    “Employee”

23   shall also include any person who is employed by the departments,

24   instrumentalities and institutions of this state and divisions


     Req. No. 5555                                                    Page 46
1    thereof, counties and divisions thereof, public trusts, boards of

2    education and incorporated cities or towns and divisions thereof.

3    “Employee” shall also include a member of the Oklahoma National

4    Guard while in the performance of duties only while in response to

5    state orders and any authorized voluntary or uncompensated worker,

6    rendering services as a firefighter, peace officer or emergency

7    management worker.   Provided, “employee” shall not include any other

8    person providing or performing voluntary service who receives no

9    wages for the services other than meals, drug or alcohol

10   rehabilitative therapy, transportation, lodging or reimbursement for

11   incidental expenses.   “Employee” shall also include a participant in

12   a sheltered workshop program which is certified by the United States

13   Department of Labor.   “Employee” shall not include a person,

14   commonly referred to as an owner-operator, who owns or leases a

15   truck-tractor or truck for hire, if the owner-operator actually

16   operates the truck-tractor or truck and if the person contracting

17   with the owner-operator is not the lessor of the truck-tractor or

18   truck.   Provided, however, an owner-operator shall not be precluded

19   from workers’ compensation coverage under the Workers’ Compensation

20   Act if the owner-operator elects to participate as a sole

21   proprietor.   “Employee” shall not include a person referred to as a

22   drive-away owner-operator who privately owns and utilizes a tow

23   vehicle in drive-away operations and operates independently for

24   hire, if the drive-away owner-operator actually utilizes the tow


     Req. No. 5555                                                   Page 47
1    vehicle and if the person contracting with the drive-away owner-

2    operator is not the lessor of the tow vehicle.     Provided, however, a

3    drive-away owner-operator shall not be precluded from workers’

4    compensation coverage under the Workers’ Compensation Act if the

5    drive-away owner-operator elects to participate as a sole

6    proprietor;

7        10. 15.     “Drive-away operations” include every person engaged in

8    the business of transporting and delivering new or used vehicles by

9    driving, either singly or by towbar, saddle mount or full mount

10   method, or any combination thereof, with or without towing a

11   privately owned vehicle;

12       11. 16.     “Employment” includes work or labor in a trade,

13   business, occupation or activity carried on by an employer or any

14   authorized voluntary or uncompensated worker rendering services as a

15   firefighter, peace officer or emergency management worker;

16       12.   “Compensation” means the money allowance payable to an

17   employee as provided for in the Workers’ Compensation Act;

18       13.   a.     “Compensable injury” means any injury or occupational

19                    illness, causing internal or external harm to the

20                    body, which arises out of and in the course of

21                    employment if such employment was the major cause of

22                    the specific injury or illness.   An injury, other than

23                    cumulative trauma, is compensable only if it is caused

24                    by a specific incident and is identifiable by time,


     Req. No. 5555                                                     Page 48
1                    place and occurrence unless it is otherwise defined as

2                    compensable in this title.   A compensable injury must

3                    be established by objective medical evidence, as

4                    defined in this section.

5             b.     “Compensable injury” includes heart-related or

6                    vascular injury, illness or death only if an accident

7                    or the claimant’s employment is the major cause of the

8                    heart-related or vascular injury.   Such injury shall

9                    be compensable only if it is demonstrated that the

10                   exertion necessary to produce the harm was

11                   extraordinary and unusual in comparison to other

12                   occupations and that the occupation was the major

13                   cause of the harm.   The injury must be established by

14                   objective medical evidence, as defined in this

15                   section.

16            c.     “Injury” or “personal injury” shall not include mental

17                   injury that is unaccompanied by physical injury,

18                   except in the case of rape which arises out of and in

19                   the course of employment.

20            d.     “Compensable injury” shall not include the ordinary,

21                   gradual deterioration or progressive degeneration

22                   caused by the aging process, unless the employment is

23                   a major cause of the deterioration or degeneration and

24                   is supported by objective medical evidence, as defined


     Req. No. 5555                                                    Page 49
1                    in this section; nor shall it include injury incurred

2                    while engaging in, performing or as the result of

3                    engaging in or performing any recreational or social

4                    activities;

5        14. 17.    “Healing period” means that period for healing of an

6    injury resulting from an accident;

7        18.   “Insurance Commissioner” means the Insurance Commissioner

8    of the state;

9        19.   a.    “Major cause” means the predominant cause of the

10                   resulting injury or illness is more than fifty-one

11                   percent (51%) of the cause.

12             b.    A finding of major cause shall be established

13                   according to the preponderance of the objective

14                   medical evidence only.

15             c.    A determination that a work-related injury or illness

16                   is noncompensable for any reason, including a finding

17                   that the workplace was not a major cause of the injury

18                   or illness, shall not adversely affect the exclusive

19                   remedy provisions of this title, and shall not create

20                   a separate cause of action outside of this title;

21       20.   “Objective findings” are those findings which cannot come

22   under the voluntary control of the patient.

23             a.    When determining physical or anatomical impairment,

24                   neither a physician, any other medical provider, and


     Req. No. 5555                                                     Page 50
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Oklahoma  Legislature    H1224
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Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224
Oklahoma  Legislature    H1224

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Oklahoma Legislature H1224

  • 1. 1 STATE OF OKLAHOMA 2 1st Session of the 53rd Legislature (2011) 3 HOUSE BILL 1224 By: McCullough 4 5 6 AS INTRODUCED 7 An Act relating to workers’ compensation; amending 85 O.S. 2001, Section 1.1, as amended by Section 7, 8 Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 1.1), which relates to 9 Workers’ Compensation Act applicability limitations; modifying agency designation; amending 85 O.S. 2001, 10 Section 1.2, as amended by Section 1, Chapter 453, O.S.L. 2010 (85 O.S. Supp. 2010, Section 1.2), which 11 relates to the creation and content of the Workers’ Compensation Court; creating Workers’ Compensation 12 Court of Existing Claims; providing for the appointment of four judges; vacating all existing 13 court positions; providing for the selection of new judges; modifying agency designation; requiring 14 Senate confirmation of new judges; providing for appointments to the court; providing for selection of 15 judges in certain circumstances; requiring that judges have five years of experience in workers’ 16 compensation matters; requiring Senate confirmation of any reappointed judge; specifying which claims the 17 Workers' Compensation Court of Existing Claims shall adjudicate; amending 85 O.S. 2001, Section 1.2A, 18 which relates to compensation of certain judges; modifying agency designation; amending 85 O.S. 2001, 19 Section 1.3, as amended by Section 8, Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 20 2010, Section 1.3), which relates to the selection and duties of the administrator of the Workers’ 21 Compensation Court; modifying agency designations; creating the Workers’ Compensation Commission; 22 providing for appointment of three Commissioners; specifying qualifications for Commission; specifying 23 Commission shall consist of at least one attorney and one physician; providing for compensation of 24 Commissioners; establishing the position of Req. No. 5555 Page 1
  • 2. 1 administrative law judge within the workers’ compensation system; specifying jurisdictional 2 regions for administrative law judges; providing for venue of workers' compensation claims; requiring 3 administrative law judges be confirmed by the Senate; allowing for hearings by videoconference in certain 4 circumstances; authorizing Governor to remove Commissioners under certain circumstances; 5 establishing procedure for removal of Commissioners; requiring Senate confirmation of removals; requiring 6 a representative of the Attorney General to attend such removals and advise or assist the Senate; 7 providing for the subpoena of witnesses in removal proceedings; requiring Governor to provide certain 8 information to the Secretary of State upon the removal of a Commissioner; specifying that 9 Commissioners shall be officers of the state; requiring Commission members to take an oath of 10 office; authorizing certain business be conducted with a quorum of Commissioners; authorizing the use 11 of an office by the Commissioners; requiring Commissioners to conduct hearings at certain career 12 or technology education centers; providing for the creation and use of an official seal; authorizing 13 Commission to take certain administrative actions; requiring Commission to give notice of certain 14 actions; specifying content of notice; providing that notice be sent to certain interested persons; 15 requiring Commission compliance with the Administrative Procedures Act; providing for the 16 payment of certain expenditures; authorizing the appointment of certain staff; providing for the 17 compensation of certain rate experts; providing for salaries of certain employees; specifying 18 administrative law judge duties; limiting administrative law judge authority to issues of 19 compensability; providing for traveling expenses by Commission and Commission’s employees; specifying 20 Commission’s power and duties; authorizing Commission to hear and determine compensation claims; 21 authorizing Commission to hear appeals from certain orders; authorizing Commission to hire a Chief 22 Medical Officer; authorizing Commission to approve certain medical and legal claims; authorizing 23 Commission to excuse certain failures to provide notice; authorizing Commission to determine awards; 24 authorizing Commission to make findings of fact; Req. No. 5555 Page 2
  • 3. 1 authorizing Commission to make rulings of law; authorizing Commission to enter orders in appealed 2 cases; authorizing Commission to specify terms of payment and order certain reimbursements; authorizing 3 Commission to assess penalties; authorizing Commission to prescribe certain rules and 4 regulations; authorizing Commission to issue subpoenas, administer oaths and take testimony; 5 authorizing Commission to transfer certain excess income to certain charitable organizations; 6 authorizing Commission to establish and impose certain fees; providing for the deposit of certain 7 fees; requiring Commission to provide an annual report to the Legislature; amending 85 O.S. 2001, 8 Section 3, as last amended by Section 1, Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010, Section 3), which 9 relates to definitions; modifying definitions; amending 85 O.S. 2001, Section 3.1, which relates to 10 death benefit definitions; modifying definitions; providing for compensation of certain alien 11 nonresident dependents; limiting certain benefits to nonresident dependents; amending 85 O.S. 2001, 12 Section 3.4, which relates to procedure for commencing workers’ compensation claims; requiring 13 certain employees to report injuries to employer in writing within a certain period; providing that 14 failure to timely report injuries shall relieve employer of duty to compensate employee; requiring 15 employers to develop certain reporting procedures; providing that certain signed statements exculpating 16 employer shall bar employee from compensation; prohibiting employee remedies in certain 17 circumstances; authorizing Commission to develop preliminary conferences procedures for workers’ 18 compensation claims; providing that claimants be advised of their rights; specifying that claimants 19 may be advised of rights at certain Career Tech centers; authorizing Commission to facilitate 20 settlement of claims; modifying agency designation; specifying that certain hearings shall be subject to 21 certain rules of evidence; specifying burden of proof; providing that claim hearings shall be open to 22 the public; providing that all hearings shall be documented by certain means; requiring that all 23 evidence be presented at initial hearing; requiring that certain written reports be provided to opposing 24 parties; requiring notification of opposing parties Req. No. 5555 Page 3
  • 4. 1 of intent to cross-examine certain physicians; allowing hearing officer or Commissioner discretion 2 in admitting certain evidence; specifying the use of certain reports and depositions by administrative law 3 judges; amending 85 O.S. 2001, Section 3.6, as amended by Section 1, Chapter 403, O.S.L. 2010 (85 4 O.S. Supp. 2010, Section 3.6), which relates to appellate procedures for workers’ compensation 5 claims; modifying agency designation; providing that Commission shall hear certain appeals; authorizing 6 Commission to reverse or modify certain decisions; providing that certain decisions of the Commission 7 shall be final; restricting Supreme Court authority to reverse Workers' Compensation Commission decisions 8 to certain issues or grounds; authorizing Supreme Court to require a bond in certain cases; amending 85 9 O.S. 2001, Section 3.7, which relates to powers and duties of the Workers’ Compensation Administrator; 10 authorizing Administrator to accept and record certain settlements; modifying agency designations; 11 deleting obsolete language; removing authority of Administrator to adopt certain rules and impose 12 certain penalties; amending 85 O.S. 2001, Sections 3.8, 3.10, as last amended by Section 3, Chapter 403, 13 O.S.L. 2010, and 4 (85 O.S. Supp. 2010, Section 3.10), which relate to workers’ compensation general 14 provisions; modifying agency designations; amending 85 O.S. 2001, Section 11, as last amended by Section 15 2, Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010, Section 11), which relates to employer payment of 16 certain compensation; deleting reference to certain injuries; updating statutory reference; amending 85 17 O.S. 2001, Section 12, as last amended by Section 3, Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010, Section 18 12), which relates to certain employer liability; specifying applicability to certain employers; 19 deleting reference to certain rights arising under the Oklahoma Constitution; providing penalty for 20 failure to secure compensation; authorizing Commission to serve certain orders for certain 21 violations; providing employers opportunity to contest certain Commission orders; allowing for 22 hearings to contest certain orders; specifying burden of employer to overturn certain orders; providing for 23 hearings in certain disputes between employers and insurers; requiring Commission to notify insurer of 24 certain hearings; requiring insurer to respond to Req. No. 5555 Page 4
  • 5. 1 certain notice of hearing within a certain period; authorizing Commission to assess certain fines for 2 certain violations; providing Commission authority to petition district court in certain circumstances; 3 authorizing Commission to seek certain injunction; requiring employers to post certain notices; 4 specifying certain notice requirements; specifying that employers shall not be liable for certain 5 injuries; authorizing Commission to establish certain rules and regulations concerning medical service 6 fees; allowing Commission to establish maximum allowable fees; amending 85 O.S. 2001, Section 14, as 7 last amended by Section 4, Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010, Section 14), which relates to 8 the provision of medical services after an injury; specifying that injured employees may seek hearing at 9 the Commission or the Court of Existing Claims depending upon the date of injury; modifying agency 10 designations; providing for the limitation of certain medical treatments; providing for the ongoing service 11 and replacement of certain medical devices; amending 85 O.S. 2001, Section 14.2, as amended by Section 16, 12 Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 14.2), which relates to the 13 selection of treating physicians under certified workplace plans; modifying agency designations; 14 amending 85 O.S. 2001, Section 14.3, as amended by Section 17, Chapter 1, 1st Extraordinary Session, 15 O.S.L. 2005 (85 O.S. Supp. 2010, Section 14.3), which relates to certified workplace medical plans; 16 modifying agency designation; extending period an insured may contract with an independent insurer in 17 certain circumstances; requiring employees to obtain written confirmation that dispute resolution has 18 failed and been exhausted; specifying that certain medical evaluations shall not be admissible if 19 certain conditions have not been met; authorizing Commission to alter the course of certain medical 20 treatments under certain conditions; requiring all state agencies to adopt and implement certain 21 certified workplace plan; amending 85 O.S. 2001, Section 15, which relates to employer requirement of 22 providing prosthetic devices in certain circumstances; modifying agency designation; amending 23 85 O.S. 2001, Section 16, as amended by Section 18, Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85 24 O.S. Supp. 2010, Section 16), which relates to Req. No. 5555 Page 5
  • 6. 1 vocational rehabilitation and job placement services; requiring Commission to hire a Vocational 2 Rehabilitation Director; establishing qualifications of Vocational Rehabilitation Director; specifying 3 duties of Vocational Rehabilitation Director; authorizing the request of vocational rehabilitation 4 services by parties to a compensation claim under certain circumstances; authorizing Vocational 5 Rehabilitation Director to issue certain administrative orders; providing that such 6 administrative orders are appealable to Commission; authorizing Director to assign certain vocational 7 rehabilitation counselors in certain circumstances; providing certain services to be paid by employer; 8 authorizing concurrent medical treatment and vocational rehabilitation services; modifying agency 9 designation; specifying that vocational rehabilitation services shall be payable only to 10 rehabilitating provider; extending time frame for certain vocational rehabilitation services; 11 prohibiting the payment for vocational rehabilitation to be a separate item in a settlement or included in 12 a calculation of legal fees; amending 85 O.S. 2001, Section 17, as last amended by Section 19, Chapter 1, 13 1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 17), which relates to the determination 14 of disability; modifying agency designations; providing that determination of disability shall be 15 the responsibility of the Chief Medical Officer; requiring all claims for disability be supported by 16 certain testimony and include certain evaluations; requiring evaluation be sent to parties within seven 17 days; requiring medical opinions be stated within a reasonable degree of medical certainty; defining 18 terms; stating purpose of program; specifying scope of program; establishing qualifications of physicians 19 seeking appointment to Medical Impairment Rating Registry; specifying application procedure for 20 physicians seeking appointment to Medical Impairment Rating Registry; specifying appointment and retention 21 requirements of certain physicians; providing appeal procedure for physicians denied appointment on 22 Registry; specifying circumstances wherein a Medical Impairment Rating Registry physician shall be 23 appointed; providing for the selection of a Registry physician; providing procedure for certain 24 disagreements between the parties; providing for the Req. No. 5555 Page 6
  • 7. 1 selection of a Registry physician; establishing that the impairment rating determined by the Medical 2 Impairment Rating Registry physician shall be presumed accurate; authorizing the Program 3 Coordinator to select a Registry physician under certain circumstances; requiring Program Coordinator 4 to contact a selected Registry physician within three days after selection; requiring parties to submit 5 copies of all pertinent medical records to the Registry physician; authorizing Program Coordinator 6 certain discretion in accepting certain untimely submitted records; specifying how medical records 7 shall be organized; prohibiting the submission of certain types of evidence to the Registry physician; 8 requiring that claimants complete all forms; providing for assistance to claimants in completing 9 forms; authorizing the use of a translator in certain circumstances; providing for reimbursement of 10 claimant travel under certain circumstances; providing for the payment of a Registry physician; 11 specifying fee amounts based upon the length of time taken to complete the report; specifying what the 12 Registry physician fee includes; providing for late fees and penalties under certain circumstances; 13 providing procedure for cancellation of evaluation appointments; allowing evaluations of multiple 14 impairments by different Registry physicians in certain circumstances; prohibiting certain physicians 15 from rendering certain opinions; requiring disclosure by physicians in certain potential conflict of 16 interest circumstances; providing penalties for failure to comply with conflict of interest 17 requirements; prohibiting certain physicians from communicating with parties except under certain 18 circumstances; requiring the requesting party to compensate certain physicians if physician is a 19 witness at any proceeding; establishing requirements for physicians conducting certain evaluations; 20 specifying certain requirements physicians must follow prior to certain evaluations; specifying 21 certain requirements physicians must follow upon the completion of certain evaluations; specifying that 22 completed reports shall be sent to the Program Coordinator; specifying that evaluations do not 23 create a doctor-patient relationship between claimants and physicians; providing that certain 24 physicians shall only evaluate impairment and not Req. No. 5555 Page 7
  • 8. 1 offer medical advice or a diagnosis; prohibiting certain physicians from recommending treatment in 2 evaluation assessments; establishing reporting requirements of the Medical Impairment Rating report; 3 requiring that Medical Impairment Rating physicians review attending physician evaluations; providing 4 reporting procedure if the Medical Impairment Rating physician agrees with evaluation of attending 5 physician; providing reporting requirements if the Impairment Rating is consistent with American Medical 6 Association guidelines; providing reporting requirements if the Impairment Rating is not 7 consistent with certain guidelines; requiring certain physicians explain rationale for certain ratings; 8 requiring certain physicians sign reports; providing statement required on certain reports; providing 9 procedure if the Medical Impairment Rating physician disagrees with attending physician determinations; 10 providing that certain physician services conclude upon the issuance of certain report; providing that 11 Medical Impairment Ratings shall be subject to certain review; providing for the removal of Medical 12 Impairment Rating physicians in certain circumstances; providing grounds for removal of 13 Medical Impairment Rating physician from listing; establishing procedure for complaints regarding 14 Medical Impairment Rating physicians; allowing Medical Impairment Rating physicians opportunity to 15 respond to certain complaints; authorizing Chief Medical Officer to make determinations concerning 16 certain complaints; providing procedure for physicians to request reconsideration of certain 17 Chief Medical Officer decisions; providing procedure for reinstatement of certain physicians to Medical 18 Impairment Rating Registry; providing Chief Medical Officer authority to impose certain penalties; 19 providing discretion to the Chief Medical Officer with respect to certain time limitations; requiring 20 parties to cooperate in the scheduling of certain evaluations; prohibiting parties from seeking a 21 second opinion in certain circumstances; providing for issuance of final determination of disability by 22 Chief Medical Officer; providing limitations for appeal of certain Chief Medical Officer rulings; 23 authorizing Commission to select a Chief Medical Officer; requiring confirmation of Chief Medical 24 Officer by Senate; providing for review by the Req. No. 5555 Page 8
  • 9. 1 Commission of Chief Medical Officer’s performance; specifying circumstances and procedure for 2 reappointment of Chief Medical Officer; providing for compensation of Chief Medical Officer; establishing 3 duties of Chief Medical Officer; providing Commission authority to review certain administrative orders 4 issued by the Chief Medical Officer; amending 85 O.S. 2001, Section 22, as last amended by Section 5, 5 Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010, Section 22), which relates to compensation schedules for 6 specific injuries; providing that the loss of certain body parts shall constitute total disability; 7 prohibiting the receipt of both permanent total disability and any other benefit simultaneously; 8 authorizing annual certification of continuing disability; providing authority to Commission to 9 refer certain cases to fraud unit; establishing partial disability rates for injuries incurred on or 10 after the effective date of act; specifying that the odd-lot doctrine shall not apply in permanent 11 disability cases; providing for the receipt of certain benefits for injuries incurred prior to 12 effective date of act; providing the maximum amount of compensation to be paid for certain disabilities; 13 modifying agency designation; amending 85 O.S. 2001, Section 24.1, as amended by Section 21, Chapter 1, 14 1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 24.1), which relates to record keeping 15 requirements; modifying agency designations; amending 85 O.S. 2001, Section 24.2, which relates to notice 16 requirements for certain injuries; modifying notice requirements for certain injuries; modifying agency 17 designation; amending 85 O.S. 2001, Section 25, which relates to the examination of injured employees; 18 modifying agency designation; amending 85 O.S. 2001, Section 26, as amended by Section 22, Chapter 1, 1st 19 Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 26), which relates to specific notice 20 requirements; removing requirement that Administrator or certain judges approve certain settlements; 21 removing requirement that Court promulgate certain rules with respect to compromise settlements; 22 removing authority of Court to make certain rulings with respect to payment of certain compromise 23 settlements; removing authority of Court to make certain final decisions; modifying agency 24 designation; amending 85 O.S. 2001, Section 27.1, Req. No. 5555 Page 9
  • 10. 1 which relates to cumulative medical testimony in certain cases; modifying agency designation; 2 authorizing Commission to review any compensation order, decision or award; providing for the review by 3 an administrative law judge or the Commission of certain terminated benefits for certain reasons; 4 authorizing Commission to make certain determinations upon review of certain compensation orders; 5 authorizing Commission to correct certain clerical errors; amending 85 O.S. 2001, Section 30, as amended 6 by Section 23, Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 30), which 7 relates to certain costs and penalties; modifying agency designation; modifying certain settlement 8 offer requirements; extending certain settlement deadlines; limiting amount claimant’s attorney may be 9 compensated in certain settlement agreements; prohibiting claimant attorney from deducting or 10 withholding certain portions of settlement proceeds from claimant for certain uses; amending 85 O.S. 11 2001, Section 41, which relates to the payment of certain permanent partial or permanent total awards; 12 modifying agency designation; amending 85 O.S. 2001, Section 41.1, which relates to whether certain 13 payments may be credited to employer or insurer; authorizing employers or insurers to deduct certain 14 payments made from certain permanent disability awards; removing authority of certain self-insured 15 employers to take credit for certain overpayments; amending 85 O.S. 2001, Section 42, as amended by 16 Section 1, Chapter 236, O.S.L. 2010 (85 O.S. Supp. 2010, Section 42), which relates to the nonpayment or 17 failure to pay awards under certain circumstances; modifying agency designation; modifying applicable 18 interest rate to that of average Treasury Bills from preceding year; amending 85 O.S. 2001, Section 43, as 19 amended by Section 24, Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 20 43), which relates to time limitations of injury or death claims; reducing amount of time a claimant may 21 claim compensation after injury; restricting the filing of certain claims after last medical 22 treatment; reducing amount of time a claimant may seek compensation for repeated trauma injuries; 23 reducing amount of time a claimant may make certain claims after termination of employment; reducing 24 amount of time a claimant may pursue a hearing on Req. No. 5555 Page 10
  • 11. 1 certain claims; reducing amount of time claims may be heard after termination of payments; modifying agency 2 designation; authorizing Court to reopen certain claims; amending 85 O.S. 2001, Section 44, as amended 3 by Section 25, Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 44), which 4 relates to certain claims against third-party insurers; modifying agency designation; removing 5 prohibition against employer or insurer pursuing the right of subrogation in certain circumstances; 6 removing provision allowing employers to have a cause of action against third parties in certain 7 circumstances; amending 85 O.S. 2001, Section 45, which relates to certain benefits or assets of a 8 claimant being exempt in the determination of certain benefits; providing that the unemployment laws of any 9 other state shall not result in duplicative payment of certain benefits; amending 85 O.S. 2001, Section 10 47.1, which relates to waiver of compensation by employees in certain circumstances; updating agency 11 designation; amending 85 O.S. 2001, Section 48.1, which relates to certain liens for the payment of 12 child support; modifying agency designation; amending 85 O.S. 2001, Section 61, as amended by Section 78, 13 Chapter 264, O.S.L. 2006 (85 O.S. Supp. 2010, Section 61), which relates to means by which an employer may 14 secure compensation to injured employees; modifying agency designation; amending 85 O.S. 2001, Section 15 61.2, which relates to workplace safety plans; modifying agency designation; amending 85 O.S. 2001, 16 Section 64, as last amended by Section 79, Chapter 264, O.S.L. 2006 (85 O.S. Supp. 2010, Section 64), 17 which relates to insurance policy requirements; requiring that insurers have complete settlement 18 authority to attend certain dispute resolution proceedings; specifying that certain violations shall 19 be subject to certain penalties in dispute resolution proceedings; amending 85 O.S. 2001, Sections 66.1 and 20 66.2, which relate to the Individual Self-Insured Guaranty Fund Board and the Group Self-Insurance 21 Association Guaranty Fund Board; modifying agency designations; amending 85 O.S. 2001, Sections 80, 81, 22 84, 85 and 104, which relate to the Workers’ Compensation Act; modifying agency designation; 23 amending 85 O.S. 2001, Section 110, as amended by Section 1, Chapter 338, O.S.L. 2002 (85 O.S. Supp. 24 2010, Section 110), which relates to inquiry into an Req. No. 5555 Page 11
  • 12. 1 employee’s prior claims; providing that an employee’s failure to answer truthfully certain inquiries into 2 past injuries shall subject the employee to discharge; modifying agency designation; amending 85 3 O.S. 2001, Section 112, which relates to the Advisory Council on Workers' Compensation; reducing membership 4 from nine to seven members; authorizing the Chairman of the Commission to act as ex officio nonvoting 5 member; specifying Governor appointments; specifying Speaker of the House of Representatives appointments; 6 specifying President Pro Tempore appointments; providing for selection of an additional member; 7 prohibiting certain professionals from serving on the Advisory Council; providing for three-year terms; 8 specifying quorum requirement of the Advisory Council; modifying agency designations; specifying 9 that Council shall consult with the Commission and Chief Medical Officer regarding oversight; amending 10 85 O.S. 2001, Sections 149.1 and 149.2, which relate to rules for certain employer self-insured pools; 11 modifying agency designation; amending 85 O.S. 2001, Section 171, as amended by Section 27, Chapter 1, 1st 12 Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 171), which relates to certain 13 definition; modifying agency designation; amending 85 O.S. 2001, Section 173, as last amended by Section 14 29, Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 173), which relates to 15 the creation of the Multiple Injury Trust Fund; modifying agency designations; amending 85 O.S. 2001, 16 Section 175, as last amended by Section 30, Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85 O.S. 17 Supp. 2010, Section 175), which relates to the administration of the Multiple Injury Trust Fund by 18 CompSource Oklahoma; modifying agency designation; amending 85 O.S. 2001, Section 177, which relates to 19 the creation of an administration fund; modifying agency designations; amending 85 O.S. 2001, Section 20 201, as amended by Section 6, Chapter 403, O.S.L. 2010 (85 O.S. Supp. 2010, Section 201), which relates 21 to authority of the Administrator to impose certain penalties on health care providers for certain 22 violations; modifying agency designation; amending 85 O.S. 2001, Section 201.1, as last amended by Section 23 6, Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010, Section 201.1), which relates to the creation of a 24 Physician Advisory Committee; modifying agency Req. No. 5555 Page 12
  • 13. 1 designation; providing that recommendations made by the committee concerning acceptable deviations from 2 certain guidelines shall be reviewed and adopted by the Chief Medical Officer; removing authority of 3 Committee to make certain determinations with respect to permanent impairment; requiring treatment 4 guidelines be recommended to Chief Medical Officer for use in all workers’ compensation claims; defining 5 medical treatment for certain purposes; requiring that recommended guidelines reflect evidence and 6 scientifically approved standards of medical treatment; providing that certain treatments which 7 are outside of the scope of treatment guidelines may be approved in certain circumstances; requiring Chief 8 Medical Officer to explain in order why treatment is appropriately outside of medical guidelines; removing 9 provisions establishing treatment guidelines; modifying agency designation; directing Committee to 10 develop certain list; directing Committee to assist Administrator in developing certain plan; defining 11 terms; amending 85 O.S. 2001, Section 203, which relates to disputes between carriers or employers; 12 modifying agency designation; amending 85 O.S. 2001, Section 211, which relates to authorization to 13 inspect or examine certain records; modifying agency designation; repealing 85 O.S. 2001, Section 3.5, as 14 amended by Section 10, Chapter 1, 1st Extraordinary Session, O.S.L. 2005 (85 O.S. Supp. 2010, Section 15 3.5), which relates to venue of workers’ compensation claims; repealing 85 O.S. 2001, Section 21, which 16 relates to the computation of average weekly wages; repealing 85 O.S. 2001, Section 28, which relates to 17 the review of awards by the Court; repealing 85 O.S. 2001, Section 69.5, which relates to powers and 18 duties of the Workers’ Compensation Court Presiding Judge; repealing 85 O.S. 2001, Section 122, which 19 relates to the abrogation of the right to recover damages in certain circumstances; repealing 85 O.S. 20 2001, Section 201.2, which relates to requiring the Physician Advisory Committee to develop certain 21 recommendations; providing for codification; and providing an effective date. 22 23 24 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: Req. No. 5555 Page 13
  • 14. 1 SECTION 1. AMENDATORY 85 O.S. 2001, Section 1.1, as 2 amended by Section 7, Chapter 1, 1st Extraordinary Session, O.S.L. 3 2005 (85 O.S. Supp. 2010, Section 1.1), is amended to read as 4 follows: 5 Section 1.1 A. The Workers’ Compensation Act shall not apply 6 to cases of occupational disease in which the last injurious 7 exposure to the hazards of such disease occurred before June 6, 8 1953. 9 B. The burden of proof, by a preponderance of the evidence, 10 shall be on the party requesting benefits or relief pursuant to the 11 provisions of the Workers’ Compensation Act unless otherwise 12 specifically provided for by law. 13 C. The provisions of the Workers’ Compensation Act shall be 14 strictly construed by the Workers’ Compensation Court or Commission 15 and any appellate court reviewing a decision of the Workers’ 16 Compensation Court or Commission. 17 SECTION 2. AMENDATORY 85 O.S. 2001, Section 1.2, as 18 amended by Section 1, Chapter 453, O.S.L. 2010 (85 O.S. Supp. 2010, 19 Section 1.2), is amended to read as follows: 20 Section 1.2 A. There is hereby created the Workers' 21 Compensation Court of Existing Claims which shall consist of eight 22 (8) four (4) judges. Each judge of the Court shall be appointed to 23 a designated numbered position on the Court. The positions shall be 24 numbered one through eight, five of which shall be permanently Req. No. 5555 Page 14
  • 15. 1 assigned to the Oklahoma City Workers’ Compensation Court and three 2 of which shall be permanently assigned to the Tulsa Workers’ 3 Compensation Court. The initial terms of the judges by position 4 number shall expire on the following dates: 5 Position 1 shall expire 2-1-14. 6 Position 2 shall expire 2-1-14. 7 Position 3 shall expire 2-1-14. 8 Position 4 shall expire 2-1-12. 9 Position 5 shall expire 2-1-12. 10 Position 6 shall expire 2-1-16. 11 Position 7 shall expire 2-1-16. 12 Position 8 shall expire 2-1-12. 13 Position 9 shall expire 2-1-12. 14 Position 10 shall expire 2-1-14. The next two positions to 15 become vacant on or after November 1, 2010, shall not be refilled. 16 Thereafter, each position shall be filled by a judge appointed 17 to serve an eight-year term. After a judge serves an eight-year 18 term, such judge shall be eligible to reapply for an additional term 19 after the lapse of a period of not less than three (3) years. 20 Provided, the judges serving unexpired terms on the effective 21 date of this act shall be eligible upon expiration of such terms for 22 appointment to one term of eight (8) years pursuant to this section. 23 A judge serving an unexpired term on the effective date of this act 24 who serves until such term expires shall be deemed to have served a Req. No. 5555 Page 15
  • 16. 1 full six-year term. If the judge is not reappointed, such judge 2 shall receive full salary, benefits, vesting rights and judicial 3 service for retirement purposes during active judicial service for a 4 period of not less than five (5) months. Effective November 1, 5 2011, all existing positions of the Workers’ Compensation Court 6 shall become vacant. The Governor shall appoint four new judges 7 from a list of nominees provided by the Judicial Nominating 8 Commission who shall be subject to confirmation by a majority of the 9 Senate. When a vacancy on the Court of Existing Claims occurs or is 10 certain to occur or for initial appointments to the Court, the 11 Judicial Nominating Commission shall choose and submit to the 12 Governor and the Chief Justice of the Supreme Court the names of 13 three persons for each appointment, each of whom has previously 14 notified the Commission in writing that he or she will serve as a 15 judge if appointed. The Governor shall appoint one of the nominees 16 to fill the vacancy with the advice and consent of the Senate. If 17 the Senate fails to confirm within ninety (90) days, the Governor 18 may select from the two remaining nominees or request three 19 additional nominees from the Judicial Nominating Commission. If the 20 Governor fails to do so within sixty (60) days, the Chief Justice of 21 the Supreme Court shall appoint one of the nominees with the advice 22 and consent of the Senate, the appointment to be certified to the 23 Secretary of State. If the Senate is not in session when an 24 appointment is made, the Senate must confirm such appointment during Req. No. 5555 Page 16
  • 17. 1 its next regular session. If the Senate fails to confirm such 2 appointment, the Governor shall ask the Judicial Nominating 3 Commission for the names of three persons, which shall not include 4 the name of the candidate not confirmed, and shall submit a new 5 candidate to the Senate for confirmation within thirty (30) days of 6 receipt of such nominees. 7 B. A judge of the Court of Existing Claims shall have been 8 licensed to practice law in this state for a period of not less than 9 five (5) years and shall have not less than five (5) years of 10 workers’ compensation experience prior to appointment. Each judge, 11 before entering upon the duties of office, shall take and subscribe 12 to an oath of office and file the same with the Secretary of State. 13 Each judge shall continue to serve until his or her successor has 14 been appointed and qualified. A judge may be removed for cause by 15 the Court on the Judiciary prior to the expiration of his or her 16 term. 17 C. Each judge shall receive a salary equal to that paid to a 18 district judge of this state, and shall devote full time to his or 19 her duties and shall not engage in the private practice of law 20 during the term in office. 21 D. The Governor shall appoint from among the judges of the 22 Workers' Compensation Court of Existing Claims a presiding judge of 23 that Court who shall serve for a two-year term commencing with the 24 initial appointment beginning January 1, 1987. Any judge so Req. No. 5555 Page 17
  • 18. 1 appointed shall not serve more than two times in succession. The 2 presiding judge shall preside at all hearings held by the Court of 3 Existing Claims, preside at such meetings of the judges of the Court 4 of Existing Claims as may be necessary and perform such other 5 supervisory duties as the needs of the Court of Existing Claims may 6 require. The presiding judge may designate one of the other judges 7 to act as presiding judge in his or her place whenever necessary 8 during the disqualification, disability, or absence of the presiding 9 judge. During the disqualification, disability, or absence of the 10 presiding judge, the acting presiding judge shall exercise all of 11 the powers of the presiding judge. 12 E. The Court of Existing Claims and the Workers’ Compensation 13 Commission as defined in this act shall have the authority to adopt 14 reasonable rules within its respective areas of responsibility 15 including the rules of procedure for the Court en banc, after notice 16 and public hearing, for effecting the purposes of the Workers' 17 Compensation Act. All of the judges of the Court of Existing Claims 18 and Commissioners for the Workers’ Compensation Commission shall be 19 present at all meetings wherein their respective rules are adopted 20 or amended. All rules, upon adoption, shall be submitted to the 21 Supreme Court, which shall either approve or disapprove them within 22 thirty (30) days. All rules, upon approval by the Supreme Court, 23 shall be published and be made available to the public and, if not 24 Req. No. 5555 Page 18
  • 19. 1 inconsistent with the law, shall be binding in the administration of 2 the Workers' Compensation Act. 3 F. The Court of Existing Claims is hereby designated and 4 confirmed as a court of record, with for all workers’ compensation 5 claims for which the date of injury was prior to November 1, 2011. 6 With respect to any matter within the limits of its jurisdiction 7 their respective jurisdictions, and within such limits the judges or 8 Commissioners thereof shall possess the powers and prerogatives of 9 the judges of the other courts of record of this state, including 10 the power to punish for contempt those persons who disobey a 11 subpoena, or refuse to be sworn or to answer as a witness, when 12 lawfully ordered to do so. 13 G. The principal office of the Court of Existing Claims shall 14 be situated in the City of Oklahoma City in quarters assigned by the 15 Department of Central Services. The Court of Existing Claims may 16 hold hearings in any city of this state. The Tulsa Workers’ 17 Compensation Court shall not be closed without the approval of the 18 Legislature. 19 H. All county commissioners and presiding district judges of 20 this state shall make quarters available for the conducting of 21 hearings by a judge of the Court of Existing Claims upon request by 22 the Court of Existing Claims. 23 I. The judges of the Court of Existing Claims shall determine 24 the qualifications necessary for the job of Administrator. Said Req. No. 5555 Page 19
  • 20. 1 qualifications shall be submitted to the Chief Justice of the 2 Supreme Court for approval, disapproval or modification. 3 J. Judges of the Workers' Compensation Court of Existing Claims 4 or Commissioners for the Workers’ Compensation Commission may punish 5 for direct contempt pursuant to Sections 565, 565.1 and 566 of Title 6 21 of the Oklahoma Statutes. 7 SECTION 3. AMENDATORY 85 O.S. 2001, Section 1.2A, is 8 amended to read as follows: 9 Section 1.2A Notwithstanding other limits established by law, 10 beginning January 1, 1998, the following judicial officers shall 11 receive compensation for their services, payable monthly as follows: 12 A judge of the Workers' Compensation Court of Existing Claims or 13 Commissioner of the Workers’ Compensation Commission shall receive a 14 salary as prescribed by Section 1.2 of Title 85 of the Oklahoma 15 Statutes this title. 16 SECTION 4. AMENDATORY 85 O.S. 2001, Section 1.3, as 17 amended by Section 8, Chapter 1, 1st Extraordinary Session, O.S.L. 18 2005 (85 O.S. Supp. 2010, Section 1.3), is amended to read as 19 follows: 20 Section 1.3 A. The chief administrative officer of the 21 Workers' Compensation Court of Existing Claims shall be the 22 Administrator, who shall be subject to the general supervision of 23 the presiding judge of the Court of Existing Claims, subject to the 24 Req. No. 5555 Page 20
  • 21. 1 general administrative authority of the Chief Justice of the Supreme 2 Court. 3 B. The person serving as Administrator on the date of passage 4 and approval of this act shall continue to serve as Administrator of 5 the Court of Existing Claims, provided said person is serving as 6 Administrator on the effective date of this act. 7 C. Except as provided in subsection B of this section, the 8 Administrator shall be appointed by the Governor. 9 D. The salary of the Administrator shall be ninety percent 10 (90%) of the authorized salary of a judge of the Court of Existing 11 Claims. 12 E. The Administrator shall serve a six-year term. During the 13 term, the Administrator may be removed from office only for cause, 14 as provided by law for the removal of officers not subject to 15 impeachment, pursuant to the provisions of Sections 1181 through 16 1197 of Title 22 of the Oklahoma Statutes. 17 F. An Administrator who otherwise qualifies to serve as a judge 18 of the Court of Existing Claims shall not be eligible to serve as a 19 judge of the Court of Existing Claims for a period of one (1) year 20 from the last date served as Administrator of the Court. 21 G. In addition to other duties set forth in Title 85 of the 22 Oklahoma Statutes this title, the Administrator, subject to approval 23 of the presiding judge, shall organize, direct and develop the 24 administrative work of the Court of Existing Claims, including the Req. No. 5555 Page 21
  • 22. 1 docketing, clerical, technical and financial work, establish hours 2 of operation, and perform such other duties relating to matters 3 within the purview of the Court of Existing Claims as any judge of 4 the Court of Existing Claims may request. 5 H. The Administrator shall employ other employees of the Court 6 of Existing Claims, within budgetary limitation, necessary to carry 7 out the work and orders of the Court of Existing Claims in an 8 efficient and expedient manner. 9 SECTION 5. NEW LAW A new section of law to be codified 10 in the Oklahoma Statutes as Section 1.4 of Title 85, unless there is 11 created a duplication in numbering, reads as follows: 12 A. There is hereby created the Workers' Compensation 13 Commission. The Workers’ Compensation Commission shall consist of 14 three (3) members appointed by the Governor who shall be confirmed 15 by the State Senate for terms of six (6) years who shall devote 16 their entire time to the duties of the Commission and shall 17 administer the provisions of this act. 18 One member shall be an attorney, who shall be Chair of the 19 Commission and who shall have been engaged in active practice of law 20 in the State of Oklahoma for not less than five (5) years next 21 preceding the date of appointment and who shall have at least five 22 (5) years of experience in workers’ compensation matters in 23 Oklahoma. Two members shall be individuals who shall each have at 24 least five (5) years of experience and expertise in the field of Req. No. 5555 Page 22
  • 23. 1 workers’ compensation in Oklahoma. These two members shall not be 2 required to be attorneys; however, one of these two members shall be 3 a physician as defined in Section 14 of Title 85 of the Oklahoma 4 Statutes. 5 B. Each member shall receive a salary equal to that of a 6 district judge of this state. The salaries shall be paid from the 7 Workers’ Compensation Fund and shall be paid in the manner as are 8 salaries of other state officials or employees. 9 SECTION 6. NEW LAW A new section of law to be codified 10 in the Oklahoma Statutes as Section 1.5 of Title 85, unless there is 11 created a duplication in numbering, reads as follows: 12 A. Under the jurisdiction of the Workers’ Compensation 13 Commission there are hereby created the positions of administrative 14 law judges. Such judges shall be hired by the Commission and shall 15 be located so that one each is permanently assigned to the 16 Southeast, Southwest, Northwest and Northeast regions of the state. 17 Four additional judges shall be hired by the Commission and shall be 18 located two in Tulsa and two in Oklahoma City. 19 B. The counties located in the Southeast region shall be: 20 Atoka, Bryan, Carter, Choctaw, Coal, Garvin, Haskell, Hughes, 21 Johnston, Latimer, LeFlore, Love, Marshall, McCurtain, McIntosh, 22 Murray, Okfuskee, Pittsburg, Pontotoc, Pushmataha and Seminole. 23 24 Req. No. 5555 Page 23
  • 24. 1 C. The counties located in the Southwest region shall be: 2 Beckham, Caddo, Comanche, Cotton, Grady, Greer, Harmon, Jackson, 3 Jefferson, Kiowa, Stephens, Tillman and Washita. 4 D. The counties located in the Northwest region shall be: 5 Alfalfa, Blaine, Beaver, Cimarron, Custer, Dewey, Ellis, Garfield, 6 Grant, Harper, Kay, Kingfisher, Major, Noble, Payne, Roger Mills, 7 Texas, Woods and Woodward. 8 E. The counties located in the Northeast region shall be: 9 Adair, Cherokee, Craig, Delaware, Mayes, Muskogee, Nowata, Okmulgee, 10 Ottawa, Sequoyah and Washington. 11 F. The counties located in the Tulsa region shall be: Creek, 12 Osage, Pawnee, Rogers, Tulsa and Wagoner. 13 G. The counties located in the Oklahoma City region shall be: 14 Canadian, Cleveland, Lincoln, Logan, McClain, Oklahoma and 15 Pottawatomie. 16 H. All claims for workers’ compensation under Title 85 of the 17 Oklahoma Statutes shall be heard in the region of the state where 18 the accident occurred, where the claimant resided at the time of the 19 injury or where the employer has its primary place of business. The 20 determination of regional venue shall be by the priority listed 21 above, unless agreed to by both parties. All administrative law 22 judges shall be subject to confirmation by the State Senate. Upon 23 agreement of the parties, the Commission may hold hearings related 24 to a claim by a video conference. Req. No. 5555 Page 24
  • 25. 1 SECTION 7. NEW LAW A new section of law to be codified 2 in the Oklahoma Statutes as Section 1.6 of Title 85, unless there is 3 created a duplication in numbering, reads as follows: 4 A. The Governor may remove any member of the Workers’ 5 Compensation Commission for inefficiency, neglect of duty, or 6 misconduct in office. The Governor shall provide that member in 7 advance a copy of the causes or charges preferred and an opportunity 8 to be publicly heard, in person or by counsel, upon not less than 9 ten (10) days’ notice. Such removal shall be confirmed by a 10 majority of the Senate. 11 B. A representative of the Office of the Attorney General shall 12 attend the proceedings and, upon the request of the Governor, shall 13 advise or assist the Senate in the proceedings. 14 C. Either party may require the attendance and testimony of 15 witnesses as provided in Title 12 of the Oklahoma Statutes. 16 D. If a member is removed, the Governor shall file in the 17 Office of the Secretary of State a complete statement of all causes 18 or charges made against the member and findings, together with a 19 complete record of all proceedings and a transcript of testimony. 20 It shall constitute a public record of the state. 21 E. The Senate shall have the authority to subpoena and take 22 testimony from any party to the removal, including, but not limited 23 to, the Governor. 24 Req. No. 5555 Page 25
  • 26. 1 SECTION 8. NEW LAW A new section of law to be codified 2 in the Oklahoma Statutes as Section 1.7 of Title 85, unless there is 3 created a duplication in numbering, reads as follows: 4 A. Members of the Workers’ Compensation Commission shall be 5 considered officers of the state and shall take the oath prescribed 6 by the Oklahoma Constitution and the laws of Oklahoma. 7 B. Except when adopting rules, which requires all members to be 8 present and participating, a majority of the Commission shall 9 constitute a quorum for the transaction of business, and vacancies 10 shall not impair the right of the remaining members to exercise all 11 the powers of the full Commission so long as a majority remains. 12 C. 1. The Commission shall maintain and keep open, during 13 reasonable business hours, an office in Oklahoma City, for the 14 transaction of business, at which office its official records and 15 papers shall be kept. 16 2. The Commission or any member of the Commission shall hold 17 sessions and conduct hearings at any local career and technology 18 education center, also known as state-sponsored Career Tech, within 19 the state. 20 D. The Commission shall have a seal for authentication of its 21 orders, awards, and proceedings, which shall have inscribed the 22 words: “Workers’ Compensation Commission, State of Oklahoma”. 23 24 Req. No. 5555 Page 26
  • 27. 1 SECTION 9. NEW LAW A new section of law to be codified 2 in the Oklahoma Statutes as Section 1.8 of Title 85, unless there is 3 created a duplication in numbering, reads as follows: 4 A. 1. For the purpose of administering the provisions of this 5 act, the Workers’ Compensation Commission is authorized: 6 a. to make such rules and regulations as may be found 7 necessary, 8 b. to appoint and fix the compensation of temporary 9 technical assistants and medical and legal advisers 10 and to appoint and to fix the compensation of clerical 11 assistants and other officers and employees, and 12 c. to make such expenditures, including those for 13 personal services, rent, books, periodicals, office 14 equipment, and supplies, for printing and binding as 15 may be necessary, and for informing people of the 16 Counselor program. 17 2. a. Prior to the adoption, prescription, amendment 18 modification, or repeal of any rule, regulation, or 19 form, the Commission shall give at least forty-five 20 (45) days’ notice of its intended action. 21 b. The notice shall include a statement of the terms or 22 substance of the intended action or description of the 23 subjects and issues involved, and the time, place, and 24 Req. No. 5555 Page 27
  • 28. 1 manner in which interested persons may present their 2 views thereon. 3 c. The notice shall be mailed to any person specified by 4 law or who shall have requested advance notice of 5 rule-making proceedings. 6 3. The Commission shall afford all interested persons a 7 reasonable opportunity to submit written data, views, or arguments, 8 and, if the Commission in its discretion directs, oral testimony or 9 argument. The Commission shall comply with the Administrative 10 Procedures Act. 11 4. All expenditures of the Commission in the administration of 12 this act shall be allowed and paid from the Workers’ Compensation 13 Fund upon the presentation of itemized vouchers approved by the 14 Commission. 15 B. 1. The Commission may appoint as many persons to be 16 examiners, experts, investigators, counselors, clerks, and other 17 employees as it deems necessary to effectuate the provisions of this 18 act. 19 2. Rate experts shall be considered employees of the Commission 20 and the Insurance Commissioner and shall be paid from the Workers’ 21 Compensation Fund. 22 3. Employees appointed pursuant to this subsection shall 23 receive an annual salary to be fixed by the Commission within the 24 appropriation made for the Commission. Req. No. 5555 Page 28
  • 29. 1 C. It shall be the duty of an administrative law judge, under 2 the rules adopted by the Commission, to hear and determine claims 3 for compensation and to conduct hearings and investigations and to 4 make such orders, decisions, and determinations as may be required 5 by any rule or order of the Commission. The duty of an 6 administrative law judge shall be to rule only on issues of 7 determination of eligibility for compensation, and shall notify both 8 parties of that decision. If the claim is deemed compensable, the 9 administrative law judge shall direct medical treatment, if 10 appropriate, be provided by a physician selected by the employer, 11 and temporary total disability, if appropriate. 12 SECTION 10. NEW LAW A new section of law to be codified 13 in the Oklahoma Statutes as Section 1.9 of Title 85, unless there is 14 created a duplication in numbering, reads as follows: 15 Any member or employee of the Workers’ Compensation Commission 16 shall be entitled to receive necessary traveling expenses actually 17 incurred and for subsistence while traveling on official business 18 and away from the designated station of that member or employee. 19 The expenses shall be certified by the person who incurred them and 20 shall be allowed and paid upon presentation of vouchers approved by 21 the Commission. 22 SECTION 11. NEW LAW A new section of law to be codified 23 in the Oklahoma Statutes as Section 1.10 of Title 85, unless there 24 is created a duplication in numbering, reads as follows: Req. No. 5555 Page 29
  • 30. 1 A. In addition to its other duties and powers, the Workers’ 2 Compensation Commission is granted full power and authority to: 3 1. Hear and determine all claims for compensation, including, 4 but not limited to, claims based upon injuries that occurred outside 5 the state for which compensation is payable under this act; 6 2. Employ a Chief Medical Officer and special medical examiners 7 and advisors as necessary who shall be paid a reasonable amount per 8 day to be determined by the Commission, plus reasonable traveling 9 expenses; 10 3. Hear appeals from orders made by the Chief Medical Officer 11 regarding ratings of permanent disability, need for medical services 12 or assignment of independent medical evaluations; 13 4. Approve claims for medical services and attorney fees; 14 5. Excuse failure to give notice either of injury or death of 15 any employee; 16 6. Make, modify, or rescind awards, and make and enter findings 17 of fact and rulings of law; 18 7. Enter orders in appealed cases; 19 8. Determine the time for the payment of compensation and order 20 the reimbursement of employers for amounts advanced; 21 9. Assess penalties; 22 10. Prescribe rules and regulations governing the 23 representation of employees, employers, and carriers in respect to 24 claims before the Commission; Req. No. 5555 Page 30
  • 31. 1 11. Issue subpoenas, administer oaths, and take testimony, by 2 deposition or otherwise; 3 12. Have and exercise all other powers and duties conferred or 4 imposed by this act; and 5 13. Transfer the excess of income over expenses from the 6 Commission’s annual educational conference to any nonprofit 7 charitable organization designed to provide scholarships to children 8 of workers who have been killed or become permanently and totally 9 disabled from a compensable injury, including, but not limited to, 10 any accumulation from prior years’ conferences. 11 B. 1. In addition to the other powers and duties granted to 12 the Commission in this section and otherwise provided by law, the 13 Commission is authorized to establish and impose reasonable fees to 14 recover the cost of preparation of various informative materials 15 distributed by the Commission. 16 2. The fees shall be established by regulation of the 17 Commission. 18 3. Funds derived from fees shall be deposited in the Workers’ 19 Compensation Fund to be used to defray expenses incurred in 20 preparation and distribution of materials. 21 SECTION 12. NEW LAW A new section of law to be codified 22 in the Oklahoma Statutes as Section 1.11 of Title 85, unless there 23 is created a duplication in numbering, reads as follows: 24 Req. No. 5555 Page 31
  • 32. 1 On or before the first day of the regular session of the 2 Legislature, the Workers’ Compensation Commission under the 3 authority of at least two of its members shall make to the Governor 4 and to the Legislature a report of the administration of this act 5 for the preceding annual period. 6 SECTION 13. AMENDATORY 85 O.S. 2001, Section 3, as last 7 amended by Section 1, Chapter 452, O.S.L. 2010 (85 O.S. Supp. 2010, 8 Section 3), is amended to read as follows: 9 Section 3. As used in the Workers’ Compensation Act: 10 1. “Administrator” means the Administrator of workers’ 11 compensation as provided for in the Workers’ Compensation Act; 12 2. “Amount in dispute” means the dollar value of any permanent 13 disability award granted to the employee by the Court for a 14 disability claim which is greater than the dollar amount offered by 15 the employer to the employee for such disability claim if the 16 employer admits compensability within twenty (20) days of the filing 17 of the Employee’s First Notice of Accidental Injury and Claim for 18 Compensation, has not disputed medical treatment, and has made a 19 written settlement offer within fifteen (15) thirty (30) days of the 20 employee reaching maximum medical improvement; 21 3. “Case management” means the ongoing coordination, by a case 22 manager, of health care services provided to an injured or disabled 23 worker, including, but not limited to: 24 Req. No. 5555 Page 32
  • 33. 1 a. systematically monitoring the treatment rendered and 2 the medical progress of the injured or disabled 3 worker, 4 b. ensuring that any treatment plan follows all 5 appropriate treatment protocols, utilization controls 6 and practice parameters, 7 c. assessing whether alternative health care services are 8 appropriate and delivered in a cost-effective manner 9 based upon acceptable medical standards, and 10 d. ensuring that the injured or disabled worker is 11 following the prescribed health care medical treatment 12 plan which follows acceptable medical standards as 13 adopted by the Chief Medical Officer with the advice 14 of the Physician Advisory Committee. Any final 15 decision in authorizing medical care or treatment, 16 including, but not limited to, medical device 17 equipment or prescription drug authorization, shall be 18 the sole responsibility of the loss adjuster, unless 19 such responsibility has been delegated to another in 20 writing; 21 4. “Case manager” means a person who: 22 a. is a registered nurse with a current, active 23 unencumbered license from the Oklahoma Board of 24 Nursing, or Req. No. 5555 Page 33
  • 34. 1 b. possesses one or more of the following certifications 2 which indicate the individual has a minimum number of 3 years of case management experience, has passed a 4 national competency test and regularly obtains 5 continuing education hours to maintain certification: 6 (1) Certified Disability Management Specialist 7 (CDMS), 8 (2) Certified Case Manager (CCM), 9 (3) Certified Rehabilitation Registered Nurse (CRRN), 10 (4) Case Manager – Certified (CMC), 11 (5) Certified Occupational Health Nurse (COHN), or 12 (6) Certified Occupational Health Nurse Specialist 13 (COHN-S). 14 The case manager’s objective is to arrange for the delivery of cost- 15 effective services that meet the patient’s medical needs. The case 16 manager acts both as an ombudsman for the patient and as an agent of 17 the payor; 18 5. “Child” means any dependent child as defined by the Internal 19 Revenue Service; 20 6. “Claimant” means a person who claims benefits for an injury 21 pursuant to the provisions of the Workers’ Compensation Act; 22 6. 7. Commission” means the Workers’ Compensation Commission; 23 8. a. “Compensable injury”: 24 Req. No. 5555 Page 34
  • 35. 1 (1) means any injury or occupational illness, causing 2 internal or external harm to the body, which 3 arises out of and in the course of employment if 4 such employment was the major cause of the 5 specific injury or illness. An injury, other 6 than cumulative trauma, is compensable only if it 7 is caused by a specific incident and is 8 identifiable by time, place and occurrence unless 9 it is otherwise defined as compensable in this 10 title. A compensable injury must be established 11 by objective medical evidence, as defined in this 12 section. An injury by accident is compensable 13 only if the accident was the prevailing factor in 14 causing both the resulting medical condition and 15 disability. The "prevailing factor” is defined 16 to be the primary factor, in relation to any 17 other factor, causing both the resulting medical 18 condition and disability supported by objective 19 medical finding, 20 (2) includes heart-related or vascular injury, 21 illness or death only if an accident or the 22 claimant’s employment is the major cause of the 23 heart-related or vascular injury. A heart- 24 related or vascular injury, illness, or death is Req. No. 5555 Page 35
  • 36. 1 a compensable injury only if, in relation to 2 other factors contributing to the physical harm, 3 an accident is the major cause of the physical 4 harm. 5 An injury, illness or death included in this 6 subparagraph shall not be deemed to be a 7 compensable injury unless it is shown that the 8 exertion of the work necessary to precipitate 9 disability or death was extraordinary and unusual 10 in comparison to the usual work of the employee 11 in the course of the regular employment of the 12 employee, or alternatively, that some unusual and 13 unpredicted incident occurred which is found to 14 have been the major cause of the physical harm. 15 Stress, physical or mental, shall not be 16 considered in determining whether the employee or 17 claimant has met the burden of proof. 18 The injury must be established by objective 19 medical evidence, as defined in this section. 20 The employee has the burden of proof to establish 21 by a preponderance of the evidence that such 22 unexpected or unforeseen injury was in fact 23 caused by the employment. There is no 24 presumption from the mere occurrence of such Req. No. 5555 Page 36
  • 37. 1 unexpected or unforeseen injury that the injury 2 was in fact caused by the employment, 3 (3) includes personal property which is used to make 4 up the physical structure of the body, such as 5 artificial dentures, artificial limbs, glass 6 eyes, eye glasses and other prostheses which are 7 placed in or on the body to replace the physical 8 structure which became damaged as a result of the 9 injury, 10 (4) includes injury due to the willful act of a third 11 person directed against an employee because of 12 the employee’s employment, and 13 (5) includes an injury or disease resulting from a 14 vaccine administered at the direction of the 15 employer or in response to a declaration by the 16 Secretary of the United States Department of 17 Health and Human Services under the Public Health 18 Services Act to address an actual or potential 19 health risk related to the employee’s employment. 20 b. “Compensable injury” shall not include: 21 (1) mental injury that is unaccompanied by physical 22 injury, except in the case of rape, holdups, 23 witnessing killings, or violent death which 24 arises out of and in the course of employment, Req. No. 5555 Page 37
  • 38. 1 (2) alcoholism and disabilities attributable thereto, 2 (3) drug addiction or disabilities resulting 3 therefrom, except when such addiction or 4 disability resulted from the use of drugs or 5 medicines prescribed for the treatment of the 6 initial injury by an authorized physician and the 7 employee followed the dosage prescribed, 8 (4) an employee’s use of a motor vehicle that was 9 provided to the employee by a motor vehicle 10 dealer and bears a dealer’s license plate for 11 commuting to or from work or any other nonwork 12 activity, 13 (5) injury or disability caused primarily by the 14 natural deterioration of tissue, an organ or part 15 of the body, nor by the ordinary, gradual 16 deterioration or progressive degeneration caused 17 by the aging process, unless the employment is a 18 major cause of the deterioration or degeneration 19 and is supported by objective medical evidence, 20 (6) an injury incurred by an employee by the 21 employee’s willful intention to injure oneself or 22 another, 23 (7) an injury or disease caused by exposure to a 24 toxic substance, including, but not limited to, Req. No. 5555 Page 38
  • 39. 1 asbestos, silica, fungus or mold, unless there is 2 a preponderance of the evidence establishing that 3 exposure to the specific substance involved, at 4 the levels to which the employee was exposed, can 5 cause the injury or disease sustained by the 6 employee, 7 (8) a claim for mental stress resulting solely from 8 disciplinary action taken in good faith by the 9 employer, 10 (9) an injury resulting directly or indirectly from 11 idiopathic causes, 12 (10) any contagious or infectious disease unless it 13 arises out of and occurs during the course of 14 employment, 15 (11) death due to natural causes occurring while the 16 worker is at work, 17 (12) injury which was inflicted upon the employee at a 18 time when employment services were not being 19 performed or before the employee was hired or 20 after the employment relationship was terminated, 21 or 22 (13) injury where the accident was substantially 23 occasioned by the use of alcohol, illegal drugs, 24 Req. No. 5555 Page 39
  • 40. 1 or prescription drugs used in contravention of 2 the orders of a physician. 3 (a) The presence of alcohol, illegal drugs, or 4 prescription drugs used in contravention of 5 orders of a physician shall create a 6 rebuttable presumption that the injury or 7 accident was substantially occasioned by the 8 use of alcohol, illegal drugs, or 9 prescription drugs used in contravention of 10 orders of a physician. 11 (b) Every employee is deemed by his or her 12 performance of services to have impliedly 13 consented to reasonable and responsible 14 testing by properly trained medical or law 15 enforcement personnel for the presence of 16 any of the aforementioned substances in the 17 body of the employee. 18 (c) An employee shall not be entitled to 19 compensation unless it is proved by a 20 preponderance of the evidence that the 21 alcohol, illegal drugs, or prescription 22 utilized in contravention of the orders of 23 the physician did not substantially occasion 24 the injury or accident. Req. No. 5555 Page 40
  • 41. 1 (d) Notwithstanding Section 554 of Title 40 of 2 the Oklahoma Statutes, a public or private 3 employer may require an employee to undergo 4 drug or alcohol testing if the employee or 5 another person has sustained a work-related 6 injury. For purposes of workers’ 7 compensation, an employee who tests positive 8 for the presence of substances defined and 9 consumed pursuant to Section 465.20 of Title 10 63 of the Oklahoma Statutes, alcohol, or 11 prescription drugs not prescribed by the 12 employee’s treating medical provider shall 13 not be eligible for such compensation unless 14 the employee proves by a preponderance of 15 the evidence that the substances or alcohol 16 were not the proximate cause of the injury 17 or accident. 18 c. A compensable injury must be established by medical 19 evidence supported by objective findings as defined in 20 this act. 21 d. The burden of proof of a compensable injury shall be 22 on the employee. 23 24 Req. No. 5555 Page 41
  • 42. 1 e. When an employee is determined to have a compensable 2 injury, the employee is entitled to medical and 3 temporary disability as provided by this section. 4 (1) Permanent benefits shall be awarded only upon a 5 determination that the compensable injury was the 6 major cause of the disability or impairment. 7 (2) If any compensable injury combines with a 8 preexisting disease or condition or the natural 9 process of aging to cause or prolong disability 10 or a need for treatment, permanent benefits shall 11 be payable for the resultant condition only if 12 the compensable injury is the major cause of the 13 permanent disability or need for treatment. 14 (3) Under this subparagraph, benefits shall not be 15 payable for a condition which results from a non- 16 work-related independent intervening cause 17 following a compensable injury which causes or 18 prolongs disability or a need for treatment. A 19 non-work-related independent intervening cause 20 does not require negligence or recklessness on 21 the part of a claimant. 22 (4) Nothing in this subparagraph shall limit the 23 payment of rehabilitation benefits or benefits 24 for disfigurement as set forth in this section. Req. No. 5555 Page 42
  • 43. 1 f. Aging and the effects of aging on a compensable injury 2 are not to be considered in determining whether there 3 has been a change in physical condition. Nor shall 4 aging or the effect of aging on a compensable injury 5 be considered in determining permanent disability 6 pursuant to this section or any other section in this 7 act. The purpose and intent of this section is to 8 annul any and all case law inconsistent with this 9 section; 10 9. “Court” means the Workers’ Compensation Court of Existing 11 Claims, the Workers’ Compensation Commission, the Chief Medical 12 Officer or any of the administrative law judges; 13 10. “Compensation” means the benefit payable to the employee or 14 the dependents of the employee in the form of: 15 a. temporary total or temporary partial disability 16 payments, 17 b. permanent partial or permanent total disability 18 payments, settlements or awards, and 19 c. other compensation which may include medical care, 20 prescription costs, other fees or costs associated 21 with physical or vocational rehabilitation and funeral 22 expenses. 23 Compensation shall be computed on the average weekly wage earned by 24 the employee in force at the time of the accident. Where the Req. No. 5555 Page 43
  • 44. 1 injured employee was working other than full time, the average 2 weekly wage shall be determined by dividing the earnings of the 3 employee by the number of hours required to earn the wages during 4 the period not to exceed fifty-two (52) weeks preceding the week in 5 which the accident occurred and by multiplying this hourly wage by 6 the number of hours in a full-time work week as set out in this 7 title, as it applies to the claimant; 8 7. 11. “Cumulative trauma” means a compensable injury, the 9 major cause of which results from employment activities which are 10 repetitive in nature and engaged in over a period of time and which 11 is supported by objective medical evidence as defined in this 12 section; 13 8. 12. “Death” means only death resulting from a compensable 14 injury as defined in this title; 15 13. “Employer”, except when otherwise expressly stated, means a 16 person, partnership, association, limited liability company, 17 corporation, and the legal representatives of a deceased employer, 18 or the receiver or trustee of a person, partnership, association, 19 corporation, or limited liability company, departments, 20 instrumentalities and institutions of this state and divisions 21 thereof, counties and divisions thereof, public trusts, boards of 22 education and incorporated cities or towns and divisions thereof, 23 employing a person included within the term “employee” as herein 24 defined. “Employer” may also include the insurance company or Req. No. 5555 Page 44
  • 45. 1 representative of the insurance company of the employer, if 2 appropriate; 3 9. 14. “Employee” means any person engaged in the employment of 4 any person, firm, limited liability company or corporation covered 5 by the terms of the Workers’ Compensation Act, and shall include 6 workers associating themselves together under an agreement for the 7 performance of a particular piece of work, in which event such 8 persons so associating themselves together shall be deemed employees 9 of the person having the work executed; provided, that if such 10 associated workers shall employ a worker in the execution of such 11 contract, then as to such employed worker, both the associated 12 employees and the principal employer shall at once become subject to 13 the provisions of the Workers’ Compensation Act relating to 14 independent contractors. Sole proprietors, members of a 15 partnership, individuals who are party to a franchise agreement as 16 set out by the Federal Trade Commission franchise disclosure rule, 17 16 CFR 436.1 through 436.11, members of a limited liability company 18 who own at least ten percent (10%) of the capital of the limited 19 liability company or any stockholder-employees of a corporation who 20 own ten percent (10%) or more stock in the corporation are 21 specifically excluded from the foregoing definition of “employee”, 22 and shall not be deemed to be employees as respects the benefits of 23 the Workers’ Compensation Act. Provided, a sole proprietor, member 24 of a partnership, member of a limited liability company who owns at Req. No. 5555 Page 45
  • 46. 1 least ten percent (10%) of the capital of the limited liability 2 company or any stockholder-employee of a corporation who owns ten 3 percent (10%) or more stock in the corporation who does not so elect 4 to be covered by a policy of insurance covering benefits under the 5 Workers’ Compensation Act, when acting as a subcontractor, shall not 6 be eligible to be covered under the prime contractor’s policy of 7 workers’ compensation insurance; however, nothing herein shall 8 relieve the entities enumerated from providing workers’ compensation 9 insurance coverage for their employees. Sole proprietors, members 10 of a partnership, members of a limited liability company who own at 11 least ten percent (10%) of the capital of the limited liability 12 company or any stockholder-employees of a corporation who own ten 13 percent (10%) or more stock in the corporation may elect to include 14 the sole proprietors, any or all of the partnership members, any or 15 all of the limited liability company members or any or all 16 stockholder-employees as employees, if otherwise qualified, by 17 endorsement to the policy specifically including them under any 18 policy of insurance covering benefits under the Workers’ 19 Compensation Act. When so included, the sole proprietors, members 20 of a partnership, members of a limited liability company or any or 21 all stockholder-employees shall be deemed to be employees as 22 respects the benefits of the Workers’ Compensation Act. “Employee” 23 shall also include any person who is employed by the departments, 24 instrumentalities and institutions of this state and divisions Req. No. 5555 Page 46
  • 47. 1 thereof, counties and divisions thereof, public trusts, boards of 2 education and incorporated cities or towns and divisions thereof. 3 “Employee” shall also include a member of the Oklahoma National 4 Guard while in the performance of duties only while in response to 5 state orders and any authorized voluntary or uncompensated worker, 6 rendering services as a firefighter, peace officer or emergency 7 management worker. Provided, “employee” shall not include any other 8 person providing or performing voluntary service who receives no 9 wages for the services other than meals, drug or alcohol 10 rehabilitative therapy, transportation, lodging or reimbursement for 11 incidental expenses. “Employee” shall also include a participant in 12 a sheltered workshop program which is certified by the United States 13 Department of Labor. “Employee” shall not include a person, 14 commonly referred to as an owner-operator, who owns or leases a 15 truck-tractor or truck for hire, if the owner-operator actually 16 operates the truck-tractor or truck and if the person contracting 17 with the owner-operator is not the lessor of the truck-tractor or 18 truck. Provided, however, an owner-operator shall not be precluded 19 from workers’ compensation coverage under the Workers’ Compensation 20 Act if the owner-operator elects to participate as a sole 21 proprietor. “Employee” shall not include a person referred to as a 22 drive-away owner-operator who privately owns and utilizes a tow 23 vehicle in drive-away operations and operates independently for 24 hire, if the drive-away owner-operator actually utilizes the tow Req. No. 5555 Page 47
  • 48. 1 vehicle and if the person contracting with the drive-away owner- 2 operator is not the lessor of the tow vehicle. Provided, however, a 3 drive-away owner-operator shall not be precluded from workers’ 4 compensation coverage under the Workers’ Compensation Act if the 5 drive-away owner-operator elects to participate as a sole 6 proprietor; 7 10. 15. “Drive-away operations” include every person engaged in 8 the business of transporting and delivering new or used vehicles by 9 driving, either singly or by towbar, saddle mount or full mount 10 method, or any combination thereof, with or without towing a 11 privately owned vehicle; 12 11. 16. “Employment” includes work or labor in a trade, 13 business, occupation or activity carried on by an employer or any 14 authorized voluntary or uncompensated worker rendering services as a 15 firefighter, peace officer or emergency management worker; 16 12. “Compensation” means the money allowance payable to an 17 employee as provided for in the Workers’ Compensation Act; 18 13. a. “Compensable injury” means any injury or occupational 19 illness, causing internal or external harm to the 20 body, which arises out of and in the course of 21 employment if such employment was the major cause of 22 the specific injury or illness. An injury, other than 23 cumulative trauma, is compensable only if it is caused 24 by a specific incident and is identifiable by time, Req. No. 5555 Page 48
  • 49. 1 place and occurrence unless it is otherwise defined as 2 compensable in this title. A compensable injury must 3 be established by objective medical evidence, as 4 defined in this section. 5 b. “Compensable injury” includes heart-related or 6 vascular injury, illness or death only if an accident 7 or the claimant’s employment is the major cause of the 8 heart-related or vascular injury. Such injury shall 9 be compensable only if it is demonstrated that the 10 exertion necessary to produce the harm was 11 extraordinary and unusual in comparison to other 12 occupations and that the occupation was the major 13 cause of the harm. The injury must be established by 14 objective medical evidence, as defined in this 15 section. 16 c. “Injury” or “personal injury” shall not include mental 17 injury that is unaccompanied by physical injury, 18 except in the case of rape which arises out of and in 19 the course of employment. 20 d. “Compensable injury” shall not include the ordinary, 21 gradual deterioration or progressive degeneration 22 caused by the aging process, unless the employment is 23 a major cause of the deterioration or degeneration and 24 is supported by objective medical evidence, as defined Req. No. 5555 Page 49
  • 50. 1 in this section; nor shall it include injury incurred 2 while engaging in, performing or as the result of 3 engaging in or performing any recreational or social 4 activities; 5 14. 17. “Healing period” means that period for healing of an 6 injury resulting from an accident; 7 18. “Insurance Commissioner” means the Insurance Commissioner 8 of the state; 9 19. a. “Major cause” means the predominant cause of the 10 resulting injury or illness is more than fifty-one 11 percent (51%) of the cause. 12 b. A finding of major cause shall be established 13 according to the preponderance of the objective 14 medical evidence only. 15 c. A determination that a work-related injury or illness 16 is noncompensable for any reason, including a finding 17 that the workplace was not a major cause of the injury 18 or illness, shall not adversely affect the exclusive 19 remedy provisions of this title, and shall not create 20 a separate cause of action outside of this title; 21 20. “Objective findings” are those findings which cannot come 22 under the voluntary control of the patient. 23 a. When determining physical or anatomical impairment, 24 neither a physician, any other medical provider, and Req. No. 5555 Page 50