H0760B0709A00275 NAD:EJH 04/21/23 #90 A00275
AMENDMENTS TO HOUSE BILL NO. 760
Sponsor: REPRESENTATIVE DAWKINS
Printer's No. 709
Amend Bill, page 1, lines 18 through 20; page 2, lines 1 and
2; by striking out all of said lines on said pages and inserting
(b) Installments of compensation payable under this article
must be paid to the person entitled to compensation by direct
deposit, subject to the following:
(1) The insurer or self-insured employer permits payment of
compensation by direct deposit. The following shall apply:
(i) After the effective date of this subsection, an insurer
or self-insured employer may permit payment of compensation by
direct deposit. If the insurer or self-insured employer permits
payment by direct deposit, the option shall be available to all
persons entitled to compensation from the insurer or self-
insured employer.
(ii) No later than one year after the effective date of this
subsection, all insurers and self-insured employers shall permit
payment of compensation by direct deposit.
(2) The insurer or self-insured employer shall notify the
persons entitled to compensation of the option to receive
compensation by direct deposit. Notification shall be sent by
first class mail and include the direct deposit authorization
form under subsection (c). Notification shall be sent in
accordance with the following:
(i) Immediately upon the availability of direct deposit by
the insurer or self-insured employer.
(ii) At least once with the first check that is mailed out
immediately following the notification sent under subparagraph
(i).
(3) A person entitled to compensation or their legal
guardian who requests to receive compensation via direct deposit
shall submit an accurate and valid direct deposit authorization
form to the insurer or self-insured employer. The direct deposit
authorization form may be submitted electronically if the
insurer or self-insured employer has agreed to accept the form
electronically. The insurer or self-insured employer may not be
required to pay compensation by direct deposit unless the person
entitled to compensation or their legal guardian has submitted a
valid authorization form.
(4) The person entitled to compensation or their legal
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guardian shall have the right to choose the deposit account to
which payments of compensation are made and may request to
change the deposit account designated to receive compensation or
discontinue direct deposit by submitting a revised direct
deposit authorization form to the insurer or self-insured
employer. The person entitled to compensation or their legal
guardian shall have control and signatory access to the chosen
depository account.
(5) Payments of compensation may not be split between
multiple payment methods, and payments of compensation made by
direct deposit may not be split between multiple deposit
accounts.
(6) A request to initiate direct deposit, change deposit
accounts or discontinue direct deposit shall be implemented
within 45 days of receipt, provided that the direct deposit
authorization form is valid.
(7) Lump sum settlement payments made as a result of a
compromise and release agreement shall be made by check unless
the insurer or self-insured employer agrees to make payment by
direct deposit.
(c) The department shall develop and publish a standard
direct deposit authorization form for use by all insurers and
self-insured employers under this section. The form shall
include, at a minimum, the following information:
(1) The name, phone number, mailing address and email
address of the person entitled to compensation.
(2) The workers' compensation claim number.
(3) Whether the person entitled to compensation or their
legal guardian is requesting to initiate direct deposit, change
deposit accounts or discontinue direct deposit.
(4) The name and address of the financial institution and
the account and routing numbers to which compensation shall be
sent.
(5) Acknowledgment that failure to notify the insurer or
self-insured employer of any change in financial institution or
account may delay receipt of compensation or settlement
proceeds.
(6) Acknowledgment that the person entitled to compensation
or their legal guardian shall notify the insurer or self-insured
employer of changes in circumstance that affect entitlement to
compensation payable under this article.
(d) As used in this section, the following words and phrases
shall have the meanings given to them in this subsection unless
the context clearly indicates otherwise:
"Direct deposit" shall mean a credit to a deposit account in
a financial institution made by electronic fund transfer.
"Electronic fund transfer" shall mean as the term is defined
in 15 U.S.C. ยง 1693a (relating to definitions).
"Person entitled to compensation" shall mean an employe
entitled to compensation under this article or a person entitled
to compensation under section 307.
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"Valid authorization form" shall mean a completed direct
deposit authorization form, as prescribed by the department
under subsection (c), which contains the information necessary
for an insurer or self-insured employer to initiate direct
deposit, change deposit accounts or discontinue direct deposit.
Amend Bill, page 2, lines 3 and 4, by striking out "claims
for compensation filed" and inserting
installments of compensation paid
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