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House Bill No. 5476

Public Act No. 04-229

AN ACT CONCERNING PAYMENTS TO THE SECOND INJURY FUND BY AN EMPLOYER MUTUAL ASSOCIATION.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 31-349g of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2004):

(a) On or before January 1, 1996, the State Treasurer, in consultation with the Insurance Commissioner, shall adopt regulations, in accordance with the provisions of chapter 54, regarding the method of assessing all employers for the liabilities of the Second Injury Fund. The liabilities shall be allocated between self-insured employers and insured employers based on paid losses for the preceding calendar year. The method of assessing self-insured employers shall be based on paid losses. The method of assessment for insured employers shall be a surcharge based on premium. In adopting regulations under this section, the State Treasurer shall consider their effect upon (1) the cost of doing business in this state, (2) the overall cost of the workers' compensation system, (3) the effect of the regulations on insurers, insureds and self-insured employers, and (4) the financial condition and liabilities of the fund.

(b) An employer mutual association organized prior to June 6, 1996, with a membership composed exclusively of health care providers and whose premium base is derived entirely from health care organizations may make payments without penalty or interest over a five-year period for any outstanding assessment due from the association for the period commencing January 1, 1996, and ending December 31, 2004.

(c) For purposes of this section: [, "insured employers" include members of]

(1) "Insured employer" includes any member of a workers' compensation [pools] pool administered by an interlocal risk management [agencies] agency, and on and after January 1, [1996, "self-insured employers" shall include] 2005, an employer mutual association organized prior to June 6, 1996, with a membership composed exclusively of health care providers and whose premium base is derived entirely from health care organizations.

(2) For the period commencing October 1, 2004, and ending December 31, 2004, "self-insured employer" includes an employer mutual association organized prior to June 6, 1996, with a membership composed exclusively of health care providers and whose premium base is derived entirely from health care organizations.

Approved on June 8, 2004