Session Laws

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately regulate workers' compensation, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 7 of chapter 23E of the General Laws, as appearing in section 4 of chapter 572 of the acts of 1985, is hereby amended by striking out, in line 18, the word "of", the third time it appears, and inserting in place thereof the word:- or.

SECTION 2. Paragraph (2) of section 11 of said chapter 23E, as so appearing, is hereby amended by striking out, in lines 4 and 15, the word "unreasonable" and inserting in place thereof, in each instance, the word:- unreasonably.

SECTION 3. Section 14 of said chapter 23E, as so appearing, is hereby amended by striking out, in line 2, the word "a" and inserting in place thereof the word:- at.

SECTION 4. Section 15 of said chapter 23E, as so appearing, is hereby amended by striking out, in line 16, the word "the" and inserting in place thereof the words:- the insurance industry, the.

SECTION 5. Section 1 of chapter 152 of the General Laws is hereby amended by striking out paragraphs (6) and (7), as appearing in the 1984 Official Edition, and inserting in place thereof the following two paragraphs:-

(6) "Insured" or "insured persons", an employer who has provided by insurance for the payment to his employees by an insurer of the compensation provided for by this chapter, or is a self-insurer under subparagraph (a) or (b) of paragraph (2) of section twenty-five A, or is a member of workers' compensation self-insurance group established pursuant to section twenty-five E to twenty-five U, inclusive.

(7) "Insurer", any insurance company, reciprocal, or interinsurance exchange, authorized so to do, which has contracted with an employer to pay the compensation provided for by this chapter. The term "insurer" within this definition shall include, wherever applicable, a self-insurer, the commonwealth and any county, city, town, or district which has accepted the provisions of section sixty-nine of this chapter. The term "insurer" as used in this chapter, except where used to refer to regulation of insurance companies by the division of insurance, and except where used in sections sixty-five A and sixty-five C, shall include where applicable a workers' compensation self-insurance group established pursuant to the provisions of sections twenty-five E to twenty-five U, inclusive.

SECTION 5A. Section 15 of said chapter 152, as so appearing, is hereby amended by striking out lines 7 and 8, and inserting in place thereof the following:- unless compensation has been paid in accordance with sections seven, eight, ten A, eleven C, twelve or nineteen nor until seven months following the date of such.

SECTION 6. Paragraph (7A) of said section 1 of said chapter 152 is hereby amended by striking out the last sentence, added by section 11 of chapter 572 of the acts of 1985, and inserting in place thereof the following two sentences:- Personal injuries shall include mental or emotional disabilities only where a significant contributing cause of such disability in an event or series of events occurring within the employment. No mental or emotional disability arising principally out of a bona fide, personnel action including a transfer, promotion, demotion, or termination except such action which is the intentional infliction of emotional harm shall be deemed to be a personal injury within the meaning of this chapter.

SECTION 7. Said section 1 of said chapter 152, as most recently amended by section 13 of said chapter 572, is hereby further amended by striking out paragraphs (10) and (11) and inserting in place thereof the following two paragraphs:-

(10) "Maximum weekly compensation rate", one hundred per cent of the average weekly wage in the commonwealth according to the calculation on or next prior to the date of injury by the director of the division of employment security.

(11) "Minimum weekly compensation rate", twenty per cent of the average weekly wage in the commonwealth according to the calculation on or next prior to the date of injury by the director of the division of employment security.

SECTION 8. The fourth paragraph of section 6 of said chapter 152, as appearing in section 17 of said chapter 572, is hereby amended by striking out, in line 5, the word "and" and inserting in place thereof the word:- , and.

SECTION 9. Paragraph (2) of section 7 of said chapter 152, as appearing in section 18 of said chapter 572, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- If an insurer fails to commence such payment or make such notification within fourteen days, it shall pay to the employee, a penalty in an amount equal to two times the average weekly wage in effect in the commonwealth at that time.

SECTION 10. Said chapter 152 is hereby further amended by striking out section 9A, as appearing in the 1984 Official Edition, and inserting in place thereof the following section:-

Section 9A. Whenever a medical question is in dispute in any case, and an impartial physician has not, prior to seven days before the date assigned for each hearing thereof, been appointed by the administrative judge, the employee may engage his own physician, and one additional physician if the administrative judge finds that justice and equity require the same, to appear and testify or be deposed, in his behalf, and, if the decision of the administrative judge or reviewing board is in favor of the employee, a reasonable fee shall be allowed by the administrative judge or reviewing board for the services of each such physician and shall be added to the amount so awarded and be paid by the insurer under the provisions of this chapter; provided, that, notwithstanding the foregoing, in every case wherein the decision of the administrative judge or reviewing board is in favor of the employee, if more than one physician appeared and testified in behalf of the insurer a reasonable fee shall be allowed for the services of each of the physicians, up to a like number, who appeared and testified or were deposed in behalf of the employee, which fees shall be added to the amount so awarded and be paid by the insurer under the provisions of this chapter.

SECTION 11. Said chapter 152 is hereby further amended by striking out section 10, as amended by section 24 of chapter 572 of the acts of 1985, and inserting in place thereof the following section:-

Section 10. Any claim for benefits shall be filed with the division of administration on a form prescribed by the division, and shall specifically state the benefits claimed to be due and unpaid. Upon the receipt of a claim for compensation or a complaint from the insurer requesting a modification or discontinuance of benefits, or a complaint from any party requesting resolution of any other issue arising under this chapter unless otherwise expressly provided, the division of administration shall notify the parties that it is in receipt of such claim or complaint, and may request the parties to appear and submit relevant information. The division shall attempt to resolve the subject of the claim or complaint by informal means and the parties shall cooperate with the division. Unless the party filing the claim or complaint fails to appear on request or provide requested information in its possession, the division of administration shall forward the claim or the complaint and the case file to the division of dispute resolution within ten days of initial receipt of such claim or complaint. In each instance in which a claim for compensation is referred to the division of dispute resolution, the insurer shall pay a fee of thirty per cent of the average weekly wage in the commonwealth. Such fee shall be paid into the Special Revenue Fund established pursuant to section sixty-five.

SECTION 12. Said chapter 152 is hereby further amended by striking out section 10A, inserted by said section 24 of said chapter 572, and inserting in place thereof the following section:-

Section 10A. Upon referral from the division of administration of a claim for compensation or a complaint requesting a modification or discontinuance of benefits, the case shall be immediately assigned by the director of dispute resolution to a board member. The board member shall require the parties to appear before him within twenty-eight days of receipt of the case by the division of dispute resolution for a conference, at which time the issues in dispute shall be identified and a summary of anticipated testimony shall be produced. If on the information available at the conference, or if there is no conference within twenty-eight days, based on information available at the time, the member determines that weekly compensation or medical benefits are due, he shall forthwith file a written temporary order for such compensation or benefits. If on the information available at the conference, or if there is not a conference within twenty-eight days, based on information available at the time, the member determines that weekly compensation or medical benefits should be modified or terminated, he shall forthwith file a written temporary order modifying or discontinuing weekly compensation or medical benefits. In any event, a hearing shall be held within forty-nine days of receipt of the case by the division of dispute resolution. Failure of a party to appear shall not prevent the issuance of an order. Any temporary orders shall become permanent upon receipt of notice by the member from both parties of an indication that they are satisfied with the provisions of such temporary order and in such instances any subsequent scheduled proceedings shall be cancelled.

SECTION 13. The first paragraph of section 11 of said chapter 152, as appearing in section 25 of said chapter 572, is hereby amended by striking out, in line 7, the words "an order" and inserting in place thereof the words:- a decision.

SECTION 14. Said chapter 152 is hereby further amended by striking out section 11A, as so appearing, and inserting in place thereof the following section:-

Section 11A. (1) With the assistance of the the medical consultant to the commissioner, the director of dispute resolution shall establish and periodically review and update separate rosters of duly qualified impartial physicians who are specialists in various medical fields, one of which shall be the field of mental and emotional disabilities.

(2) When any claim or complaint dealing with incapacity benefits for an alleged mental or emotional disability is forwarded to the division of dispute resolution, the administrative judge may appoint an impartial physician from the appropriate roster to examine the employee and make a report. The report of the impartial physician in such a case shall, where feasible, contain a determination by such physician of whether or not a mental or emotional disability exists, of whether or not any such disability is total or partial and permanent or temporary, and of whether or not any such disability is of a kind whose significant contributing cause is likely to have been a work-related event or series of events. The determination by an impartial physician of the existence or nonexistence of a temporary or permanent, partial or total disability shall be prima facie evidence of the existence or nonexistence, as the case may be, of such a condition, in any subsequent proceeding. Each party shall have the right to engage a physician to appear, or be deposed, for the purpose of rebutting the report of the impartial physician. If a decision of an administrative judge or reviewing board is in favor of the employee, the reasonable fee of each such physician appearing on behalf of the employee shall be paid by the insurer.

(3) In any other proceeding in which medical evidence is required for the resolution of a dispute arising under this chapter, an administrative judge may appoint a physician from the appropriate roster to examine the claimant and to make a report. Failure of an employee to report to a physician appointed under this section, after due notice and without cause, shall constitute sufficient cause for a denial, discontinuance, or modification of benefits, as the case may be.

(4) The fee for the service of any physician appointed by an administrative judge under this chapter shall be a reasonable amount approved by the commissioner, and shall be paid by the insurer directly to the physician promptly upon receipt of the approved bill.

SECTION 15. Section 11B of said chapter 152, as so appearing, is hereby amended by striking out the last paragraph and inserting in place thereof the following paragraph:-

The evidence at the hearing shall be taken by an employee of the department sworn to record the entire proceeding. The record of the hearing shall be transcribed verbatim or electronically recorded. Upon the request of a member or the reviewing board, or at the request of a party, a transcript or recording or both, whichever such party requests shall be forwarded to such party without charge. The original recording shall remain in the control of the department. Verbatim transcripts shall be made manually from the stenographic notes only if a certified copy of the proceedings is required by the reviewing board or a court of the commonwealth. Decisions of members of the board shall set forth the issues in controversy, the decision on each and a brief statement of the grounds for each such decision. Decisions shall issue no more than twenty-eight days following the close of testimony, unless further extension is authorized in writing by the director of dispute resolution.

SECTION 16. Section 13 of said chapter 152, as amended by section 28 of said chapter 572, is hereby further amended by striking out subsection (3) and inserting in place thereof the following subsection:-

(3) There is hereby created a health care services board composed of the commissioner or his designee as an ex officio member and chairman, one person representing chiropractors, one person representing dentists, one person representing hospital administrators, one person representing physical therapists, and six physicians representing different health care specialties which the commissioner determines are the most frequently utilized by injured employees. The board shall also have one person representing employees, one person representing employers, and one person representing the public. Members shall be appointed by the commissioner for two-year terms. The board shall advise the commissioner on matters arising under this section.

SECTION 17. Section 22 of said chapter 152, as appearing in the 1984 Official Edition, is hereby amended by striking out, in lines 9 and 11, the word "division" and inserting in place thereof, in each instance, the word:- department.

SECTION 18. Section 24 of said chapter 152, as amended by section 35 of chapter 572 of the acts of 1985, is hereby further amended by inserting after the word "person", in line 7, the word:- or.

SECTION 19. Said chapter 152 is hereby further amended by striking out section 25A, as appearing in the 1984 Official Edition, and inserting in place thereof the following section:-

Section 25A. In order to promote the health, safety and welfare of employees, every employer shall provide for the payment to his employees of the compensation provided for by this chapter in the following manner:-

(1) By insurance with an insurer or by membership in a workers' compensation self-insurance group, established pursuant to the provisions of sections twenty-five E to twenty-five U, inclusive, or

(2) Subject to the rules of the department, by obtaining from the department annually a license as a self-insurer by conforming to the provisions of one of the two following subparagraphs and also to the provisions of subparagraph (c) if required. Every employer desiring to be licensed as a self-insurer shall make application for such license on a form provided by the department. The application shall contain: (1) a sworn itemized statement of the assets and liabilities of the applicant; (2) a payroll report for the preceding fiscal year of the applicant; (3) a detailed description of the nature and kind of business carried on.

(a) By keeping on deposit with the state treasurer in trust for the benefit and security of employees such amount of securities, not less in market value than twenty thousand dollars, as may be required by the department, said securities to be in the form of cash, bonds, stocks or other evidences of indebtedness as the department may require, and to be used, liquidated and disbursed only upon order of the department for the purposes of paying the benefits provided for by this chapter. The department shall, at least semiannually, determine the liabilities of a self-insurer both incurred or to be incurred because of personal injuries to employees under this chapter. The department shall require an additional deposit or further security when the sum of the self-insurer's liability both incurred or to be incurred exceeds the deposit or any required reinsurance, or permit a decrease of said deposit provided the value of said deposit in no case shall be less than twenty thousand dollars. The department may permit a substitution of securities in place of those deposited. Interest, dividends and other income from said deposit or deposits shall be payable to the employer who deposited them, unless and until the department shall direct otherwise. The deposit or deposits may be returned to the employer if the employer shall insure with an insurer under paragraph (1) of this section, or qualify as a self-insurer under subparagraph (b) of this section, or if he shall cease to transact business in the commonwealth; provided, that in any case he satisfies the department that he is not under any obligation to pay compensation under this chapter, or, if the department so requires, he furnishes the department with a single premium non-cancellable policy, insuring him against any liability that may have arisen under this chapter or with a bond executed as surety by some company authorized to transact the business of workmen's compensation insurance in this commonwealth, in an amount and form approved by the department, guaranteeing the payment of any liability on his part that may have arisen under this chapter. No deposit so deposited shall be assignable or subject to attachment or be liable in any way for the debt of the self-insurer. If an employer engaged in interstate or foreign commerce certifies that the laws of the United States provide for liability for injury to or death of its employees, the deposit shall be returned to the employer less such amount as determined by the department as necessary to satisfy against liability that may already have arisen under this chapter; and provided that such determination by the department shall be reviewable by the superior court for the county in which the employer resides, or, in the case of a corporation, where said corporation has a usual place of business.

(b) By furnishing annually a bond running to the commonwealth, with some surety company authorized to transact business in the commonwealth as surety, in such form as may be approved by the department and in such amount not less than twenty thousand dollars as may be required by the department, said bond, however, to be upon the condition that if the license of the principal shall be revoked or if the principal shall cease to transact business in the commonwealth or if the department shall refuse to renew the license or if the principal shall insure with an insurer, the principal shall upon demand deposit with the state treasurer an amount of securities equal to the penal sum of the bond or a single premium non-cancellable policy issued by some insurance company authorized to transact the business of workmen's compensation insurance in this commonwealth, insuring him against any liability that may have arisen under this chapter or a bond executed as surety by some company authorized to transact the business aforesaid in this commonwealth, in an amount and form approved by the department, guaranteeing the payment of any liability on his part that may have arisen under this chapter. The department shall, at least semiannually, determine the liabilities of a self-insurer both incurred or to be incurred because of personal injuries to employees under this chapter. The department may at any time require an additional bond, similarly conditioned, or further security or permit a decrease in the amount of said bond provided the amount of the bond or the bonds in no case shall be less than twenty thousand dollars. The liability of the surety shall not exceed in the aggregate the penal sum or sums stated in any such bond or bonds or in any endorsements giving effect to any such increase or reduction. The department may permit a substitution of a new bond or bonds for the bond or bonds which have been furnished.

(c) As a further guarantee of a self-insurer's ability to pay the benefits provided for by this chapter to injured employees, every self-insurer shall make arrangements satisfactory to the department, by reinsurance, to protect it from extraordinary losses or losses caused by one disaster.

Such reinsurance shall be in such amounts and form as the department may approve and shall be effected with a company as provided in section twenty of chapter one hundred and seventy-five, provided, the minimum amount shall be not less than five hundred thousand dollars. Such reinsurance shall provide that the use or disposition of any money received by a self-insurer or former self-insurer under any such reinsurance shall be subject to the approval of the department, and no such money shall be assignable or subject to attachment or be liable in any way for the debt of the self-insurer unless incurred under this chapter. The provisions of this paragraph shall not apply to common carriers by railroad which are subject to the provisions of the Federal Employers Liability Act.

(3) The department may make rules governing self-insurers, and may revoke or refuse to renew the license of a self-insurer because of the failure of such self-insurer promptly to make payments of compensation provided for by this chapter, or for any other reasonable cause. Any person aggrieved by the action of the department in refusing to grant a license or in revoking, or refusing to renew, a license of a self-insurer under this section or by the action of the department in requiring an additional deposit or further security under subparagraph (a) of this section, or in requiring a further bond or security for an additional sum under subparagraph (b) of this section may demand a hearing before the department, and if, after said hearing, the department denies his petition, he may within ten days after receipt of a notice stating reasons for such denial, file a petition in the superior court for Suffolk county for a review thereof; but the filing of such a petition shall not suspend the action of the department unless a stay thereof shall be allowed by the justice pending a final determination by the court. The court shall summarily hear the petition and may make any appropriate order or decree.

SECTION 20. Said chapter 152 is hereby further amended by striking out section 25C, as appearing in the 1984 Official Edition, and inserting in place thereof the following section:-

Section 25C. If an employer who is required to provide for the payment to his employees of the compensation provided for by this chapter fails to do so, he shall be punished by a fine of not more than one thousand five hundred dollars or by imprisonment for not more than one year, or both. Failure of an employer, after imposition of the foregoing penalty, to provide for the payment of compensation under this chapter after notice by the department to such employer so to do shall, as to each such notice, be deemed a further violation in respect thereof and the same penalty shall be imposed. If such employer is a corporation, the president or treasurer, or both, shall be liable for such penalty. The department or chairman shall have power to bring complaints against employers, including the president and treasurer of a corporation which is an employer, for violations of the provisions of this section, and to prosecute the same, and for such purpose may deputize one or more of its inspectors, investigators or other persons in its employ, as it may deem necessary, to make and prosecute such complaints. Such complaints shall be brought in the district court in which the principal place of business of such employer is situated, or in the district court in whose district such president or treasurer of a corporation resides.

SECTION 21. The first paragraph of section 25E of said chapter 152, as appearing in section 36 of chapter 572 of the acts of 1985, is hereby amended by striking out, in line 12, the word "procedure" and inserting in place thereof the word:- procedures.

SECTION 22. Subsection (1) of section 25G of said chapter 152, as so appearing, is hereby amended by striking out clause (d) and inserting in place thereof the following clause:-

(d) a pro forma financial statement on a form acceptable to the commissioner of insurance showing the financial ability of the group to pay the workers' compensation obligations of its members.

SECTION 23. Said subsection (1) of said section 25G of said chapter 152, as so appearing, is hereby further amended by striking out clause (k) and inserting in place thereof the following clause:-

(k) proof provided by the trustees, satisfactory to the commissioner of insurance, that the annual gross premiums of the group shall be not less than two hundred and fifty thousand dollars.

SECTION 24. Section 25S of said chapter 152, as so appearing, is hereby amended by striking out, in lines 3 and 4, the words "section twenty-five E to twenty-five V" and inserting in place thereof the words:- sections twenty-five E to twenty-five U.

SECTION 25. Section 25U of said chapter 125, as so appearing, is hereby amended by striking out, in line 3, the words "regulatory or assessment" and inserting in place thereof the words:- fails to pay any regulatory fee or assessment.

SECTION 26. Section 26 of said chapter 152, as appearing in the 1984 Official Edition, is hereby amended by striking out the last paragraph and inserting in place thereof the following paragraph:-

If an employee is injured by reason of such physical activities of fellow employees and the department finds that such activities are traceable solely and directly to a physical or mental condition resulting from the service of any of such fellow employees in the armed forces of the United States, the entire amount of compensation that may be found due shall be paid by the state treasurer, upon order of the department, from the fund established by section sixty-five. There shall be no appeal by the commonwealth from such an order of the department.

SECTION 27. Said chapter 152 is hereby further amended by striking out section 30A, as amended by section 39 of chapter 572 of the acts of 1985, and inserting in place thereof the following section:-

Section 30A. Any medical report pertaining to an injury which appears to be compensable shall be furnished by the physician or other medical provider to the employee, the insurer, and the department within fourteen days of completion of the examination of the employee. Each failure to comply with such reporting requirement shall be punishable by a civil fine to be determined by the director of administration, of not less than twenty-five nor greater than one thousand dollars. A schedule of incremental increases relative to violations shall be determined by the commissioner.

SECTION 28. Sections thirty B to thirty D, inclusive, of said chapter one hundred and fifty-two are hereby repealed.

SECTION 29. Section 30F of said chapter 152, as appearing in section 40 of chapter 572 of the acts of 1985, is hereby amended by inserting after the word "and", in line 2, the second time it appears, the word:- vocational.

SECTION 30. Section 34B of said chapter 152, inserted by section 43A of said chapter 572, is hereby amended by striking out, in line 27, the figure "(3)" and inserting in place thereof the letter:- (c).

SECTION 31. Section 35A of said chapter 152, as appearing in the 1984 Official Edition, is hereby amended by striking out the second paragraph and inserting in place thereof the following paragraph:-

An administrative judge or the reviewing board may in its or his discretion order the insurer or self-insurer to make payment of the six dollars aforesaid directly to the independent.

SECTION 32. The second paragraph of section 37 of said chapter 152, as so appearing, is hereby amended by striking out, in line 22, the words "not to exceed fifty" and inserting in place thereof the words:- equal to seventy-five.

SECTION 33. Said chapter 152 is hereby further amended by striking out section 38, as so appearing, and inserting in place thereof the following section:-

Section 38. Except as expressly provided elsewhere in this chapter, no savings or insurance of the injured employee independent of this chapter shall be considered in determining compensation payable thereunder, nor shall benefits derived from any other source than the insurer be considered in such determination.

SECTION 34. The first paragraph of section 46A of said chapter 152, as so appearing, is hereby amended by striking out, in line 14, the word "division" and inserting in place thereof the word:- department.

SECTION 35. The second paragraph of said section 46A of said chapter 152, as so appearing, is hereby amended by striking out, in line 36, the words "then either the division or a member thereof" and inserting in place thereof the words:- the reviewing board.

SECTION 36. Paragraph (2) of section 48 of said chapter 152, as appearing in section 52 of chapter 572 of the acts of 1985, is hereby amended by inserting after the word "into,", in line 12, the word:- and.

SECTION 37. Said chapter 152 is hereby further amended by striking out section 49, as amended by section 53 of said chapter 572, and inserting in place thereof the following section:-

Section 49. The claim for compensation shall be in writing, and shall state the time, place, cause and nature of the injury. It shall be signed by the person injured, or, in the event of his death, by his legal representative, or by a person to whom payments may be due, or by a person in behalf of any of them, and shall be filed with the department. A claim for compensation shall not be held invalid or insufficient by reason of any inaccuracy in stating the time, place, cause or nature of the injury unless it is shown that it was the intention to mislead and that the insurer was in fact misled thereby.

SECTION 38. Section 57 of said chapter 152, as appearing in the 1984 Official Edition, is hereby amended by striking out, in line 13, the word "division" and inserting in place thereof the word:- department.

SECTION 39. Said chapter 152 is hereby further amended by striking out section 59, as so appearing, and inserting in place thereof the following section:-

Section 59. The state treasurer shall hold any deposit made under section fifty-seven in trust for the payment of claims for benefits under this chapter, including claims accruing after the deposit was made, and he shall make such payments upon the written request and under the direction of the department, or he may, if the company so requests in writing, transfer from time to time to a trustee appointed by the company and approved by the department, any part of any such deposit made with him, reasonably necessary for the prompt payment of said benefits, and the trustee shall make such payments in accordance with the written directions of the department.

The state treasurer shall keep a separate account with the company of the amount so received, the amount of interest earned thereon and the payments made. If the amount deposited proves to be larger than required, portions thereof may, from time to time, be refunded to the company by the state treasurer or by such trustee, if any, subject to the written approval of the commissioner of insurance and the department. If any balance remains after the payment of all benefits due to claimants under this chapter, the state treasurer or such trustee, if any, shall return the balance to the company upon written notice from the department that there is no likelihood of further payments becoming due on account of such claims.

SECTION 40. Said chapter 152 is hereby further amended by striking out section 62, as so appearing, and inserting in place thereof the following section:-

Section 62. Every such foreign insurance company shall, within five days after its withdrawal from the transaction of business in the commonwealth or after the revocation of its license issued by the commissioner of insurance or of his refusal to renew it, deposit with a trustee to be named by the department an amount equal to twenty-five per cent of its obligations incurred or to be incurred under workmen's compensation policies issued to employers in the commonwealth; and within thirty days after such withdrawal, revocation of or refusal to renew a license, such company shall deposit with said trustee an amount equal to the remainder of such obligations incurred or to be incurred, the amount of which obligations shall be determined by the department. The amounts so deposited shall be available for the payment of the said obligations of the company to the same extent as if the company had continued to transact business in the commonwealth, and the trustee so receiving said deposits shall pay such obligations at the times and in a manner satisfactory to the department.

SECTION 41. Said chapter 152 is hereby further amended by striking out section 63, as so appearing, and inserting in place thereof the following section:-

Section 63. Insurance companies insuring employees under this chapter shall, at the request of the department, furnish it in writing any information required in connection with the administration by said department of this chapter, including any statistics and the names of all employers insured by them. Notice of issuance of a policy of insurance insuring employers under this chapter shall be given to the department of industrial accidents by the company issuing such policy within five days after the date of issuance thereof. No further notice need be filed in case such insurance is renewed, extended or otherwise continued by such company. Such insurance shall not be cancelled or shall not be otherwise terminated until ten days after written notice of such cancellation or termination is given to the department or until a notice has been received by said department that the employer has secured insurance from another insurance company or has otherwise insured the payment of compensation provided for by this chapter.

SECTION 42. Section 65 of said chapter 152, as amended by section 55 of chapter 572 of the acts of 1985, is hereby further amended by striking out subsection (5) and inserting in place thereof the following subsection:-

(5) Each self-insurance group shall pay to the treasurer of the commonwealth a sum assessed by the department equal to the product of its standard premium and the assessment rates determined pursuant to subsection (4), multiplied by the total base amount for all self-insured groups divided by the estimated total standard premiums for all self-insured groups for the next twelve-month period beginning January first and ending on the last day of December. For each insured employer, the assessment shall be equal to the product of its standard workers' compensation premium and the assessment rate determined pursuant to subsection (4), multiplied by the ratio of the aggregate base amount for all insured employers as reported pursuant to subsection (3), to the aggregate written estimated premium for these said employers for the next twelve-month period beginning January first and ending on the last day of December. Such aggregate written estimated premiums shall be based on currently applicable rates as approved by the commissioner of insurance. The Rating Bureau shall compute said ratio and submit it to the department of industrial accidents by May first of each year for review and approval. Insurers shall bill and collect assessments on insured employers. Such assessments shall be separately stated amounts on all premium notices, and shall not be reported as premiums for any tax or regulatory purposes under chapter sixty-three, one hundred and seventy-five, or any other law. Assessment rates for insured employers shall apply to standard premiums for policy years beginning on or after July first following the determination of such rates. The assessment for each self-insurer shall be equal to the product of the assessment rate and the self-insurer's imputed premium multiplied by the total base amount for all self-insurers, divided by the total imputed premium for all self-insurers as determined by the department. Insurers shall transmit assessments collected during each quarter, and self-insurers and self-insurance groups shall pay assessments due each quarter, to the state treasurer no later than one month after the end of the quarter.

Failure to pay the assessed sum will result in a fine of ten per cent of any unpaid amounts every thirty days. The commissioner may establish a commonwealth lien on any employer to collect assessments and fines for which such employer is liable under this section. Similar fines and liens may be imposed on insurers for failure to transmit assessments collected under this section.

In the case of self-insurers or self-insurance groups that have been operating for less than twelve months, the department shall establish procedures under which the assessments to be paid by the self-insurer or self-insurance group shall be related to the prior status of such employers.

SECTION 43. Said section 65 of said chapter 152 is hereby further amended by adding the following subsection:-

(12) The commissioner shall supervise, monitor and establish procedures for all aspects of the assessment of insured and self-insured employers and self-insurance groups including but not limited to the proper reporting of base amounts; the determination of proper assessment rates; the calculation, billing and collection of assessment payments; proper accounting; reporting and transmittal by insurers of assessment payments by insured employers; and all other matters necessary to assure proper compliance with this section; and may issue regulations and conduct hearings for this purpose. He also shall establish procedures for the review and adjudication of grievances by employers with respect to the propriety and accuracy of assessed payment.

SECTION 44. Said chapter 152 is hereby further amended by striking out section 65A, as appearing in the 1984 Official Edition, and inserting in place thereof the following section:-

Section 65A. Any employer whose application for workmen's compensation insurance has been rejected or not accepted within five days by two insurers may appeal to the department, and if it shall appear that such employer has complied with or will comply substantially with all laws, orders, rules and regulations in force and effect relating to the welfare, health and safety of his employees, and shall not be in default of payment of any premium for such insurance, then the department shall certify to the commissioner of insurance that such employer is entitled to workmen's compensation insurance. The commissioner of insurance shall thereupon designate an insurer who shall forthwith, upon the receipt of the payment for the premium therefor, issue to such employer a policy of insurance contracting to pay the compensation provided for by this chapter. The commissioner of insurance shall make equitable distribution of such risks among insurers in such manner that, so far as practicable, no insurer will be assigned a larger proportion of premiums under assigned policies during any calendar year than that which the total of workmen's compensation premiums written in the commonwealth by such insurer during the previous calendar year bears to the total workmen's compensation premiums written in the commonwealth by all insurers during the previous calendar year.

SECTION 45. Said chapter 152 is hereby further amended by striking out section 65B, as so appearing, and inserting in place thereof the following section:-

Section 65B. If, after the issuance of a policy under section sixty-five A, it shall appear that the employer to whom the policy was issued is not or has ceased to be entitled to such insurance, the insurer, with the approval of the department, may cancel such policy in the manner provided in this chapter; provided, that any insurer desiring to cancel such a policy shall give notice in writing to the department and the insured of its desire to cancel the same. The department may approve such cancellation unless the employer shall within ten days after the receipt of such notice file with the department objections thereto, and, if such objections are filed, a member of the department shall hear and decide the case within a reasonable time thereafter, subject to review as provided where a claim for a review referred to in section eight is filed.

SECTION 46. Section 69B of said chapter 152, as amended by section 56 of chapter 572 of the acts of 1985, is hereby further amended by striking out the second paragraph and inserting in place thereof the following paragraph:-

Said commissioner of public employee retirement shall obtain such information as will assist in the prevention of injuries, arising out of and in the course of employment, to public employees, in the rehabilitation of injured employees, and in their reemployment. He shall require from the workmen's compensation agents, appointed under section seventy-five, preliminary reports on such injuries within forty-eight hours of their occurrence, and detailed reports within two weeks. He shall require from such agents the name and status of any employee who has remained incapacitated for three months following an injury, and shall refer such reports to the office of education and vocational rehabilitation for consideration and recommendation under the provisions of sections thirty E to thirty H, inclusive.

SECTION 47. Section 70 of said chapter 152, as appearing in the 1984 Official Edition, is hereby amended by striking out, in line 2, the word "division" and inserting in place thereof the word:- department.

SECTION 48. Section 75 of said chapter 152, as so appearing, is hereby amended by striking out, in line 7, the word "division" and inserting in place thereof the word:- department.

SECTION 49. Paragraph (2) of section 75B of said chapter 152, as appearing in section 58 of chapter 572 of the acts of 1985, is hereby amended by striking out, in line 13, the word "member" and inserting in place thereof the word:- court.

SECTION 50. Section 68 of chapter 572 of the acts of 1985 is hereby amended by inserting after the word "forty-four", in line 2, the words:- , section thirty-five F of chapter one hundred and fifty-two of the General Laws, inserted by section forty-five.

SECTION 51. Section 70 of said chapter 572 is hereby amended by inserting after the word "forty-three A,", in line 3, the words:- sections thirty-five C to thirty-five E, inclusive, of chapter one hundred and fifty-two of the General Laws, inserted by section.

SECTION 52. The first supplemental compensation payments required by section thirty-four B of chapter one hundred and fifty-two of the General Laws shall be due on November first, nineteen hundred and eighty-six, and shall be based on the average weekly wage in the commonwealth as of October first, nineteen hundred and eighty-six.

SECTION 53. Notwithstanding the provisions of section two A of chapter one hundred and fifty-two of the General Laws, section thirty-four B of said chapter one hundred and fifty-two, inserted by section forty-three A of chapter five hundred and seventy-two of the acts of nineteen hundred and eighty-five, shall have application to personal injuries irrespective of the date of their occurrence; provided, however, that this section shall not be construed to require the payment of any supplemental benefit that would have been due if such supplemental benefits had been required prior to November first, nineteen hundred and eighty-six.

SECTION 54. Notwithstanding the provisions of section two A of chapter one hundred and fifty-two of the General Laws, section fifty-three of chapter five hundred and seventy-two of the acts of nineteen hundred and eighty-five, shall have application only to personal injuries occurring on or after January first, nineteen hundred and eighty-six.

SECTION 55. Sections six, seven and forty-nine of this act shall take effect as of January first, nineteen hundred and eighty-six.

SECTION 56. Sections eighteen, forty-two and forty-three of this act shall take effect as of January twenty-fourth, nineteen hundred and eighty-six.

SECTION 57. Sections one, two, three, four, sixteen, twenty-one, twenty-two, twenty-three, twenty-four and twenty-five of this act shall take effect as of April first, nineteen hundred and eighty-six.

SECTION 58. Sections eight, nine, eleven, twelve, thirteen, fourteen, fifteen, twenty-seven, twenty-nine, thirty, thirty-two, thirty-four and thirty-six of this act shall take effect as of November first, nineteen hundred and eighty-six.