HB 502 Text

H. B. 502

(By Mr. Speaker, Mr. Kiss, and Delegate Trump)
[By Request of the Executive]
[Introduced November 13, 2005.]

A BILL to amend and reenact §23-4B-1, §23-4B-2, §23-4B-3, §23-4B-4, §23-4B-5, §23-4B-7 and §23-4B-9 of the Code of West Virginia, 1931, as amended, relating to the Coal-workers' Pneumoconiosis Fund; providing that the Coal-workers' Pneumoconiosis Fund shall provide coverage for any claim with a date of last exposure on or before the thirty-first day of December, two-thousand five; transferring administrative duties of the Coal-workers' Pneumoconiosis Fund from the Executive Director of the Workers' Compensation Commission to the Insurance Commission; and providing that the West Virginia Employers' Mutual Insurance Company shall offer insurance to provide for the benefits required under article four-b of chapter twenty-three of the Code of West Virginia following the termination of the Workers' Compensation Commission until the thirty-first day of December, two thousand eight.

Be it enacted by the Legislature of West Virginia:
That §23-4B-1, §23-4B-2, §23-4B-3, §23-4B-4, §23-4B-5, §23-4B-7 and §23-4B-9 of the Code of West Virginia, 1931, as amended, be amended and reenacted, to read as follows:
ARTICLE 4B. COAL-WORKERS' PNEUMOCONIOSIS FUND.
§23-4B-1. Purpose.
The purpose of this article is to establish a fund to provide benefits to coal miners who are totally disabled by pneumoconiosis and to eligible dependents of coal miners whose deaths were due to pneumoconiosis or who were totally disabled from pneumoconiosis at time of their deaths. The further purpose of this article is to provide a readily available insurer of liability created by Title IV of the Federal Coal Mine Health and Safety Act of 1969, as amended, for claims incurred under said Act, including claims which were incurred but not reported, for any claim with a date of last exposure on or before the thirty-first day of December, two thousand five.
§23-4B-2. Coal-Workers' Pneumoconiosis Fund established.
For the relief of persons who are entitled to receive benefits by virtue of Title IV of the federal Coal Mine Health and Safety Act of 1969, as amended, for claims incurred under said Act, including claims which were incurred but not reported, for any claim with a date of last exposure on or before the thirty-first day of December, two thousand five, there is continued a fund to be known as the Coal-Workers' Pneumoconiosis fund, which fund shall be separate from the workers' compensation fund. The Coal-Workers' Pneumoconiosis Fund shall consist of premiums and other funds paid to the fund by employers, subject to the provisions of Title IV of the federal Coal Mine Health and Safety Act of 1969, as amended, who shall elect to subscribe to the fund to ensure the payment of benefits required by the act for claims incurred under said Act, including claims which were incurred but not reported, for any claim with a date of last exposure on or before the thirty-first day of December, two thousand five.
The state treasurer shall be the custodian of the Coal-Workers' Pneumoconiosis Fund, and all premiums, deposits or other moneys paid to the fund shall be deposited in the state treasury to the credit of the Coal-Workers' Pneumoconiosis Fund. Disbursements from the fund shall be made upon requisition signed by the Executive Director of the Workers' Compensation Commission to those persons entitled to participate in the fund: Provided, That effective upon the termination of the Workers' Compensation Commission, disbursement from the Coal-workers' Pneumoconiosis Fund shall be made upon requisitions signed by the Insurance Commissioner and the Insurance Commissioner shall collect any unpaid premium and deposit the same in said fund. The West Virginia ~~state board of investments~~ Investment Management Board may invest any surplus, reserve or other moneys belonging to the Coal-Workers' Pneumoconiosis Fund in accordance with article six, chapter twelve of this code.
§23-4B-3. To whom benefits paid.
Only those classes of persons who are entitled to benefits under Title IV of the Federal Coal Mine Health and Safety Act of 1969, as amended, for claims incurred under said Act, including claims which were incurred but not reported, for any claim with a date of last exposure on or before the thirty-first day of December, two thousand five, are eligible to participate in the Coal-Workers' Pneumoconiosis fund.
§23-4B-4. Who may subscribe.
Only those employers who are subject to the provisions of Title IV of the Federal Coal Mine Health and Safety Act of 1969, as amended, may elect to subscribe to the Coal-Workers' Pneumoconiosis Fund to insure such liability as may be imposed upon such employers under the provisions of Title IV of said act. Coverage by the Coal-workers' Pneumoconiosis Fund will be provided only for claims incurred under said Act, including claims which were incurred but not reported, for any claim with a date of last exposure on or before the thirty-first day of December, two thousand five.
§23-4B-5. Payment of benefits.
Upon receipt of an order of compensation issued pursuant to a claim for benefits filed under the provisions of Title IV of the federal Coal Mine Health and Safety Act of 1969, as amended, for a claim incurred with a date of last exposure on or before the thirty-first day of December, two thousand five, the executive director shall disburse the Coal-Workers' Pneumoconiosis Fund in the amounts and to the persons as directed by the order: Provided, That effective upon the termination of the Workers' Compensation Commission, disbursement from the Coal-workers' Pneumoconiosis Fund shall be made upon requisitions signed by the Insurance Commissioner.
§23-4B-7. Administration.

(a) The Coal-Workers' Pneumoconiosis fund shall be administered by the Executive Director of the Workers' Compensation Commission, who shall employ any employees necessary to discharge his or her duties and responsibilities under this article. All payments of salaries and expenses of the employees and all expenses peculiar to the administration of this article shall be made by the state treasurer from the Coal-Workers' Pneumoconiosis fund upon requisitions signed by the Executive Director.
(b) Notwithstanding any provision of this code to the contrary, effective from the termination of the Workers' Compensation Commission, the Coal-Workers' Pneumoconiosis Fund shall be administered by the Insurance Commissioner, who shall employ any employees and contract with any parties necessary to discharge his or her duties and responsibilities under this article. All payments of salaries and expenses of the employees and all expenses peculiar to the administration of this article shall be made by the state treasurer from the Coal-workers' Pneumoconiosis Fund upon requisitions signed by the Insurance Commissioner: Provided, That the company shall be the administrator of the coal-workers' pneumoconiosis fund for a term not to exceed one year following the termination of the Workers' Compensation Commission pursuant to an agreement to be entered into between the Insurance Commission and the Company prior to the termination of the Workers' Compensation Commission: Provided further, That any contract entered into by the Insurance Commission for the administration of the Coal-workers' pneumoconiosis fund thereafter shall be subject to the procedures set forth in article three chapter five-a of this code.

§23-4B-9. Closure of Coal-Workers Pneumoconiosis Fund and Coverage provided by the successor of the commission.

Upon the termination of the Commission, all assets, obligations and liabilities resulting from this article are transferred to the successor of the commission. The state treasurer and all other departments, agencies and boards shall cooperate to ensure this novation occurs in a expedient and orderly fashion. Thereafter, the Coal-workers Pneumoconiosis Fund shall close and the company shall offer insurance to provide for the benefits required by this article until at least the ~~thirtieth day of June~~ thirty-first day of December, two thousand eight. All claims payment obligations and indemnity and medical administrative expenses necessary for the administration of claims, actual and incurred but not reported, for any claim with a date of last exposure on or before the thirty-first day of December, two thousand five, shall be an obligation of the Coal-Workers' Pneumoconiosis Fund created in this article and not of the company.

NOTE: The purpose of this bill is to direct that Coal-Worker Pneumoconiosis Fund ("CWP") assets accrued and liabilities incurred prior to termination of the Workers' Compensation Commission ("the Commission") remain with the State of West Virginia and that the West Virginia Employers' Mutual Insurance Company ("the Company") offer insurance related to the CWP Fund's coverage responsibilities upon termination of the Commission.

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