The bill amends the Worker's Disability Compensation Act of 1969, specifically section 835, to clarify and update the procedures surrounding the redemption of liability resulting from personal injuries. It stipulates that not less than six months after the date of a personal injury, parties may agree to redeem liability through a lump sum payment, subject to the approval of a worker's compensation magistrate. The bill introduces new language that allows the magistrate to direct lump sum payments at any time if special circumstances are found, and it emphasizes that the filing of a proposed redemption agreement does not constitute an admission of liability.

Additionally, the bill mandates that carriers must notify employers in writing, including electronically, of proposed redemption agreements at least ten business days before a hearing. The notice must contain specific information regarding the agreement and the hearing process. It also establishes a fee of $100 for each party involved in a proposed redemption agreement to cover administrative costs, which will be placed in the workers' compensation administrative revolving fund. The bill further clarifies that the funds must be used for specific purposes related to the administration of the act, including education, case management, and hearings.

Statutes affected:
House Introduced Bill: 418.835