1. Executive director. The salary of the executive director is within salary range 91.

2. General counsel. The salary of the general counsel is within salary range 86.

3. Deputy general counsel. The salary of the deputy general counsel is within salary range 85.

4. Assistants to the general counsel. The salary of the assistants to the general counsel is within salary range 82.

5. Deputy directors. The salary of the deputy directors is within the following salary ranges:

A. Deputy Director of Medical/Rehabilitation Services, Range 85;

B. Deputy Director of Business Services, Range 85; and

C. Deputy Director of Benefits Administration, Range 85.

6. Hearing officers. The salary of the hearing officers is within salary range 90.

7. Mediators. The salary of the mediators is within salary range 80.

Sec. 3. 3 MRSA §522-B, as amended by PL 1991, c. 885, Pt. D, §2, is further amended to read:

§522-B. Workers' Compensation Agency budget review

The joint standing committee of the Legislature having jurisdiction over labor matters shall review the budget of the Workers' Compensation Board Agency and submit its recommendations in a written report to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs not later than 60 days after reference of the current services budget legislation and any supplemental budget legislation to the joint standing committee having jurisdiction over appropriations and financial affairs.

Sec. 4. 3 MRSA §959, sub-§1, ¶I, as amended by PL 1997, c. 683, Pt. D, §1, is further amended to read:

I. The joint standing committee of the Legislature having jurisdiction over labor matters shall use the following list as a guideline for scheduling reviews:

(1) Maine State Retirement System in 1997;

(2) Department of Labor in 1999;

(3) Maine Labor Relations Board in 2001; and

(4) Workers' Compensation Board in 2001 and the Workers' Compensation Agency starting in 2011.

Sec. 5. 4 MRSA §807, sub-§3, ¶G, as amended by PL 1995, c. 419, §1, is further amended to read:

G. A person who is not an attorney, but is representing a party in any hearing, action or proceeding before the Workers' Compensation Board Agency as provided in Title 39- A, section 317;

Sec. 6. 4 MRSA §1353, sub-§6, as amended by PL 1991, c. 885, Pt. E, §5 and affected by §47, is further amended to read:

6. Reduction. The disability retirement allowance must be reduced if a disability beneficiary is receiving or has received payments for the same disability under the workers' compensation law, or similar law, except for amounts that may be paid or payable under former Title 39, section 56 or 56-A or Title 39-A, section 212, subsection 2 or 3.

The total of the allowance, not including adjustments under section 1358 and the payment described in the preceding paragraph, may not exceed 80% of the beneficiary's average final compensation. The disability retirement allowance may in no event be reduced below the actuarial equivalent of the beneficiary's accumulated contributions at the time of retirement.

If the disability beneficiary has received a lump-sum settlement of workers' compensation benefits, any portion of that settlement not attributable to vocational rehabilitation, attorneys' fees or medical expenses must reduce the disability retirement allowance in the same manner and amount as monthly workers' compensation benefits. The reduction must be prorated on a monthly basis in an equitable manner prescribed by the board.

If amounts paid or payable under workers' compensation or the amount of the lump-sum settlement or its attribution are in dispute, those disputes must be settled by a single member of the Workers' Compensation Board Agency as provided under Title 39-A. Determinations of the commissioner agency may be appealed in the manner provided by Title 39-A, section 322.

Sec. 7. 5 MRSA §958, as enacted by PL 1993, c. 145, §2, is amended to read:

§958. Workers' Compensation Agency

1. Major policy-influencing positions. The following positions are major policy-influencing positions within the Workers' Compensation Board Agency. Notwithstanding any other provision of law, these positions and their successor positions are subject to this chapter:

A. Executive director;

B. General counsel; and

C. Deputy directors.

Sec. 8. 5 MRSA §1833, first ¶, as amended by PL 1991, c. 885, Pt. D, §2, is further amended to read:

The Workers' Compensation Management Fund is established to provide for any expenses related to the resolution of workers' compensation claims including: records and information management; investigation; medical review; representation; rehabilitation; payment of compensation; appropriate medical expenses and other payments required by the Workers' Compensation Board Agency; the settlement of cases; and other necessary expenses.

Sec. 9. 5 MRSA §9051, sub-§1, as amended by PL 1991, c. 885, Pt. D, §2, is further amended to read:

1. Adjudicatory proceeding. In any adjudicatory proceedings, except those proceedings involving correctional facilities, the Workers' Compensation Board or the State Parole Board, the procedures of this subchapter shall apply. However, in proceedings arising under Title 39-A, in the event of any conflict with this subchapter, the applicable provisions of Title 39-A and rules adopted under that title by the Workers' Compensation Board.

Sec. 10. 5 MRSA §12004-G, sub-§35, as enacted by PL 1991, c. 885, Pt. A, §5 and affected by §§9 to 11, is amended to read:

35. Workers' Com- Lost wages 39-A MRSA

Workers' pensation up to §151

Compensation Board$100 per §151-C

diem; ex-

penses

Sec. 11. 5 MRSA §17906, sub-§2, ¶E, as amended by PL 1991, c. 885, Pt. E, §10 and affected by §47, is further amended to read:

E. Any dispute about amounts paid or payable under workers' compensation, or about the amount of the lump-sum settlement and its attributions must be determined on petition, by a single member of the Workers' Compensation Board Agency, in accordance with Title 39-A. These determinations may be appealed under Title 39-A, section 322.

Sec. 12. 5 MRSA §17930, sub-§4, ¶E, as amended by PL 1991, c. 885, Pt. E, §11 and affected by §47, is further amended to read:

E. Any dispute about amounts paid or payable under workers' compensation or the amount of the lump-sum settlement and its attributions must be determined on petition by a single member of the Workers' Compensation Board Agency in accordance with Title 39-A. These determinations may be appealed under Title 39-A, section 322.

Sec. 13. 5 MRSA §18506, sub-§2, ¶E, as amended by PL 1991, c. 885, Pt. E, §14 and affected by §47, is further amended to read:

E. Any dispute about amounts paid or payable under workers' compensation or about the amount of the lump-sum settlement and its attributions must be determined, on petition, by a single member of the Workers' Compensation Board Agency, in accordance with Title 39-A. These determinations may be appealed under Title 39-A, section 322.

Sec. 14. 5 MRSA §18530, sub-§4, ¶E, as amended by PL 1991, c. 885, Pt. E, §15 and affected by §47, is further amended to read:

E. Any dispute about amounts paid or payable under workers' compensation or the amount of the lump-sum settlement and its attributions must be determined on petition by a single member of the Workers' Compensation Board Agency in accordance with Title 39-A. These determinations may be appealed under Title 39-A, section 322.

Sec. 15. 17 MRSA §3964, as amended by PL 1991, c. 885, Pt. E, §18 and affected by §47, is further amended to read:

§3964. Settlements or releases from injured persons

Except as provided in this section, no settlement or general release or statement either oral, in writing, or electronically recorded made by any person confined in a hospital or sanitarium as a patient with reference to any personal injuries for which that person is confined in that hospital or sanitarium is admissible in evidence, used or referred to in any manner at the trial of any action to recover damages for personal injuries or consequential damages, so called, resulting therefrom, which statement, settlement or general release was obtained within 30 days after the injuries were sustained and such settlement or release is null and void. This section does not apply to statements or releases obtained by police officers or inspectors of motor vehicles in the performance of their duty, members of the family of that person or by or on behalf of that person's attorney. This section does not apply to agreements entered into pursuant to former Title 39 and approved by the former Workers' Compensation Commission or Title 39-A and approved by the Workers' Compensation Board or Workers' Compensation Agency.

Sec. 16. 19-A MRSA §2154, sub-§9, as enacted by PL 1997, c. 537, §39 and affected by §62, is amended to read:

9. Access to information. The Department of Labor, the Workers' Compensation Board Agency and the State Tax Assessor may have access to the information reported to the department for purposes of program administration.

Sec. 17. 19-A MRSA §2360-A, as enacted by PL 1997, c. 654, §1, is amended to read:

§2360-A. Lump-sum settlement; workers' compensation claims

On a monthly basis, the department shall notify the Workers' Compensation Board Agency, referred to in this section as the "board agency," of the names and social security numbers of all persons who owe the department child support debts that have been liquidated by judicial or administrative action. Before approving any lump-sum settlement, the board agency shall determine whether the person receiving the settlement is on the list of persons who owe to the department child support debts that have been liquidated by judicial or administrative action. If the person is on the list, the board agency shall notify the department of the pending settlement and inform the person of the notification to the department.

Sec. 18. 24-A MRSA §2384-B, sub-§2, ¶C, as enacted by PL 1991, c. 885, Pt. B, §12 and affected by §13, is amended to read:

C. Information concerning former Workers' Compensation Commission and Workers' Compensation Board or Workers' Compensation Agency proceedings, including:

(1) For each informal conference, mediation and arbitration, the date, commissioner, hearing officer, mediator or arbitrator for the proceeding, involvement of attorney or other designated representative and the resolution; and

(2) For each hearing, the date, commissioner, hearing officer, involvement of attorney or other designated representative and the decision of the commissioner or the hearing officer. If a disputed claim results in multiple hearing dates, the decision must be reported for the last hearing date; and

Sec. 19. 24-A MRSA §2384-B, sub-§4, as enacted by PL 1991, c. 885, Pt. B, §12 and affected by §13, is amended to read:

4. Other data collection systems. The statistical advisory organization may rely on data collected and reported by other data gathering organizations or agencies, such as the Workers' Compensation Board Agency or the Department of Labor. If the statistical advisory organization is to incorporate data from other sources, it must satisfy itself that the data is sufficiently complete and accurate for the purposes for which it is to be used. The Workers' Compensation Board Agency and the Department of Labor shall assist the statistical advisory organization in the development and maintenance of a comprehensive data base by recording and making available information within the custody and control of each, respectively, pursuant to the request of the statistical advisory organization.

Sec. 20. 24-A MRSA §2384-B, sub-§10, as amended by PL 1995, c. 462, Pt. B, §5, is further amended to read:

10. Claims covered. This section applies to all claims occurring on or after January 1, 1989 and prior to January 1, 1993 and to all death, permanent total and major permanent partial claims occurring between January 1, 1987 and December 31, 1988; and to a reasonable sample, as approved by the superintendent, of all other indemnity claims occurring between January 1, 1987 and December 31, 1988. The superintendent may suspend the reporting requirements of specific items for periods

when information that is to be obtained from the Workers' Compensation Board Agency is temporarily unavailable.

Sec. 21. 24-A MRSA §2384-C, sub-§2, ¶C, as enacted by PL 1993, c. 610, §2, is amended to read:

C. Information concerning Workers' Compensation Board Agency proceedings, including:

(1) For each mediation and arbitration, the date, hearing officer, mediator or arbitrator for the proceeding and the resolution; and

(2) For each hearing, the date, hearing officer and the decision of the hearing officer. If a disputed claim results in multiple hearing dates, the decision must be reported for the last hearing date; and

Sec. 22. 24-A MRSA §2384-C, sub-§4, as enacted by PL 1993, c. 610, §2, is amended to read:

4. Other data collection systems. The statistical organizations may rely on data collected and reported by other data-gathering organizations or agencies, such as the Workers' Compensation Board Agency or the Department of Labor, and shall coordinate with any other statutorily created medical data collection systems. If a statistical organization is to incorporate data from other sources, it must satisfy itself that the data is sufficiently complete and accurate for the purpose for which it is to be used. The Workers' Compensation Board Agency and the Department of Labor shall assist the statistical organizations in the development and maintenance of a comprehensive data base by recording and making available information within the custody and control of each, respectively, pursuant to the request of the statistical organization. The superintendent may suspend the reporting requirements of specific items for periods when information that is to be obtained from the Workers' Compensation Board Agency is temporarily unavailable or information is found to be unreliable and the unreliability is not a result of the reporting practices of the carriers or self- insurers. The superintendent may accept an established data collection mechanism that is substantially in compliance with the data elements specified in this section and otherwise meets the requirements of this section.

Sec. 23. 24-A MRSA §2809-A, sub-§11, ¶G, as amended by PL 1991, c. 885, Pt. E, §30 and affected by §47, is further amended to read:

G. Coverage provided under this section may be terminated sooner than provided under paragraph F if:

(1) The member or employee fails to make timely payment of a required premium amount;

(2) The member or employee becomes eligible for coverage under another group policy; or

(3) The Workers' Compensation Board Agency determines that the injury or disease that entitles the employee to continue coverage under this section is not compensable under Title 39-A.

Sec. 24. 24-A MRSA §3706, sub-§2, as amended by PL 1991, c. 885, Pt. D, §2, is further amended to read:

2. Statistical and actuarial data. The company must shall compile and maintain statistical and actuarial data related to the determination of proper premium rate levels, the incidence of work-related injuries, costs related to those injuries and any other data that the company considers desirable. The company must shall provide this data to the Superintendent of Insurance, the Chair Executive Director of the Workers' Compensation Board Agency and the Department of Labor annually and upon request.

Sec. 25. 24-A MRSA §4449, last ¶, as amended by PL 1991, c. 885, Pt. D, §2, is further amended to read:

This section does not authorize a stay of proceedings before the Workers' Compensation Board Agency, or of proceedings in Superior Court to enforce orders of the Workers' Compensation Board Agency. A stay of workers' compensation proceedings before the Workers' Compensation Board Agency or the Superior Court may be granted if otherwise authorized by law, provided that as long as good cause for a stay exists and that reasonable diligence was exhibited by the insurer, the employer, the association and their counsel to proceed with the proceeding prior to the insolvency.

Sec. 26. 26 MRSA §631, as amended by PL 1999, c. 235, §1, is further amended to read:

§631. Employee right to review personnel file

The employer shall, upon written request from an employee or former employee, provide the employee, former employee or duly authorized representative with an opportunity to review and copy the employee's personnel file if the employer has a personnel file for that employee. The reviews and copying must take place at the location where the personnel files are maintained and

during normal office hours unless, at the employer's discretion, a more convenient time and location for the employee are arranged. The cost of copying is paid by the person requesting the copy. For the purpose of this section, a personnel file includes, but is not limited to, any formal or informal employee evaluations and reports relating to the employee's character, credit, work habits, compensation and benefits and nonprivileged medical records or nurses' station notes relating to the employee that the employer has in the employer's possession. Records in a personnel file may be maintained in any form including paper, microfiche or electronic form. The employer shall take adequate steps to ensure the integrity and confidentiality of these records. An employer maintaining records in a form other than paper shall have available to the employee, former employee or duly authorized representative the equipment necessary to review and copy the personnel file. Any employer who, following a request pursuant to this section, without good cause fails to provide an opportunity for review and copying of a personnel file, within 10 days of receipt of that request, is subject to a civil forfeiture of $25 for each day that a failure continues. The total forfeiture may not exceed $500. An employee, former employee or the Department of Labor may bring an action in the District Court or the Superior Court for such equitable relief, including an injunction, as the court may consider to be necessary and proper. The employer may also be required to reimburse the employee, former employee or the Department of Labor for costs of suit including a reasonable attorney's fee if the employee or the department receives a judgment in the employee's or department's favor, respectively. For the purposes of this section, the term "nonprivileged medical records or nurses' station notes" means all those materials that have not been found to be protected from discovery or disclosure in the course of civil litigation under the Maine Rules of Civil Procedure, Rule 26, the Maine Rules of Evidence, Article V or similar rules adopted by the Workers' Compensation Board Agency or other administrative tribunals.

Sec. 27. 26 MRSA §1401-B, sub-§6, as enacted by PL 1997, c. 393, Pt. A, §30 and amended by c. 526, §14, is further amended to read:

6. Monitor employee leasing industry. The commissioner shall coordinate the efforts of the State to ensure that the employee leasing industry is developing in a manner that provides the greatest benefit to Maine employers while minimizing the financial risk to those employers and to the leased employees. The commissioner shall meet at least annually with representatives of the Bureau of Insurance, the Bureau of Revenue Services, the Department of Economic and Community Development, the Workers' Compensation Board Agency and the Bureau of Labor

Standards within the Department of Labor. This group shall develop written material for employers and new businesses that are considering using an employee leasing firm. The material must provide guidance for employers on what questions to ask to minimize their own financial risk and that of their employees. The material must also include instructions on how to obtain public information on employee leasing companies, such as information required for registration purposes. The commissioner shall meet with the state officials listed in this subsection on at least an annual basis to review the status of the employee leasing industry and update the written materials as needed.

Sec. 28. 39-A MRSA §102, sub-§1, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended to read:

1. After-tax average weekly wage. "After-tax average weekly wage" means average weekly wage, as defined in subsection 4, reduced by the prorated weekly amount that would have been paid under the Federal Insurance Contributions Act, 26 United States Code, Sections 3101 to 3126, state income tax and federal income tax calculated on an annual basis, using as the number of exemptions the disabled employee's dependents plus the employee, and without excess itemized deductions. Effective January 1, 1993 and each January 1st thereafter, the applicable federal and state laws in effect on the preceding July 1st are used in determining the after-tax weekly wage. Each December 1st the board agency shall publish tables of the average weekly wage and 80% of after-tax average weekly wage that will take effect on the following January 1st. These tables are conclusive for the purpose of converting an average weekly wage into 80% of after- tax average weekly wage.

Sec. 29. 39-A MRSA §102, sub-§1-A is enacted to read:

1-A.__Agency.__"Agency" means the Workers' Compensation Agency created by section 151-B and includes a designee of the agency.

Sec. 30. 39-A MRSA §102, sub-§5, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended to read:

5. Board; board member. "Board" means the Workers' Compensation Board created by section 151 151-C and includes a designee of the board. "Board member" means any member of the board, including the chair.

Sec. 31. 39-A MRSA §102, sub-§7, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended to read:

7. Compensation payment scheme. "Compensation payment scheme" means the procedure whereby an employer is required to provide compensation or other benefits under this Act to an employee. "Compensation payment scheme" includes a decree of the board or agency, payment under the early-pay system provided in former Title 39, section 51-B and, in case of injuries prior to January 1, 1984, an approved agreement.

Sec. 32. 39-A MRSA §102, sub-§8, ¶C, as amended by PL 1999, c. 201, §1 and affected by §2, is further amended to read:

C. A child, including an adopted child or a stepchild, under the age of 18 years, or under the age of 23 years if a student or over the age of 18 years but physically or mentally incapacitated from earning, who is dependent upon the parent with whom the dependent is living or upon whom the dependent is actually dependent in any way at the time of the injury to the parent, there being no surviving dependent parent. For the purposes of this paragraph, "child" includes any dependent posthumous child whose mother is not living. If there is more than one child dependent, the compensation must be divided equally among them.

For the purposes of this paragraph, the term "student" means a person regularly pursuing a full-time course of study or training at an institution that is:

(1) A school, college or university operated or directly supported by the United States or by any state or local government or political subdivision thereof;

(2) A school, college or university that has been accredited by a state or by a state-recognized or nationally recognized accrediting agency or body;

(3) A school, college or university not accredited pursuant to subparagraph (2) but whose credits are accepted, on transfer, for credit on the same basis as if transferred from an accredited institution by not fewer than 3 institutions accredited pursuant to subparagraph (2); or

(4) An additional type of educational or training institution as defined by the board agency, but not after the dependent reaches the age of 23 or has completed 4 years of education beyond the high school level, except that, when the dependent's 23rd birthday occurs during a semester or other enrollment period, the dependent continues to be considered a student until the end of the semester or other enrollment

period. A child is not deemed to have ceased to be a student during any interim between school years if the interim does not exceed 5 months and if the dependent shows to the satisfaction of the board agency that the dependent has a bona fide intention of continuing to pursue a full-time course of education or training during the semester or other enrollment period immediately following the interim or during periods of reasonable duration during which, in the judgment of the board agency, the dependent is prevented by factors beyond the dependent's control from pursuing the dependent's education. A child is not deemed to be a student under this Act during a period of service in the Armed Forces of the United States.

Sec. 33. 39-A MRSA §102, sub-§11, ¶A, as amended by PL 1999, c. 364, §1, is further amended by amending sub-¶¶(4) and (5) to read:

(4) Except for persons engaged in harvesting of forest products, any Any person, other than a person engaged in harvesting of forest products, who, in a written statement to the board executive director, waives all the benefits and privileges provided by the workers' compensation laws, provided that as long as the board executive director has found that person to be a bona fide owner of at least 20% of the outstanding voting stock of the corporation by which that person is employed or a shareholder of the professional corporation by which that person is employed and that this waiver was not a prerequisite condition to employment. For the purposes of this subparagraph, the term "professional corporation" has the same meaning as found in Title 13, section 703, subsection 1.

Any person may revoke or rescind that person's waiver upon 30 days' written notice to the board executive director and that person's employer. The parent, spouse or child of a person who has made a waiver under the previous sentence paragraph may state, in writing, that the parent, spouse or child waives all the benefits and privileges provided by the workers' compensation laws if the board executive director finds that the waiver is not a prerequisite condition to employment and if the parent, spouse or child is employed by the same corporation that employs the person who has made the first waiver;

(5) Except for persons engaged in harvesting of forest products, the The parent, spouse or child of a sole

proprietor who is employed by that sole proprietor, or the parent, spouse or child of a partner who is employed by the partnership of that partner may state, who states in writing, that the parent, spouse or child waives all the benefits and privileges provided by the workers' compensation laws if the board executive director finds that the waiver is not a prerequisite condition to employment.__This subparagraph does not apply to persons engaged in harvesting of forest products;

Sec. 34. 39-A MRSA §102, sub-§11, ¶B, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended to read:

B. "Employee" includes, if the person elects to be personally covered by this Title, any person who regularly operates a business or practices a trade, profession or occupation, whether individually or in partnership or association with other persons, whether or not the person hires employees. Such a person shall elect personal coverage by insuring and keeping insured the payment of compensation and other benefits under a workers' compensation insurance policy. The insurance policy must clearly indicate the intention of the parties to provide coverage for the person electing to be personally covered. The insurance company shall file with the board agency notice, in such form as the board agency approves, of the issuance of any workers' compensation policy to a person electing personal coverage. That insurance may not be cancelled within the time limited in that policy for its expiration until at least 30 days after mailing a notice of the cancellation of that insurance to the board agency and the person electing personal coverage. In the event that the person electing personal coverage has obtained a workers' compensation insurance policy from another insurance company, and that insurance becomes effective prior to the expiration of the 30 days, cancellation is effective as of the effective date of the other insurance. The Superintendent of Insurance is authorized to review for approval, at the superintendent's discretion, an appropriate classification for this class of persons and a reasonable rate.

Sec. 35. 39-A MRSA §102, sub-§12-B is enacted to read:

12-B.__Executive director.__"Executive director" means the Executive Director of the Workers' Compensation Agency appointed pursuant to section 152-A and includes a designee of the executive director.

Sec. 36. 39-A MRSA §102, sub-§13, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended to read:

13. Independent contractor. "Independent contractor" means a person who performs services for another under contract, but who is not under the essential control or superintendence of the other person while performing those services. In determining whether such a relationship exists, the board agency shall consider the following factors:

A. Whether or not a contract exists for the person to perform a certain piece or kind of work at a fixed price;

B. Whether or not the person employs assistants with the right to supervise their activities;

C. Whether or not the person has an obligation to furnish any necessary tools, supplies and materials;

D. Whether or not the person has the right to control the progress of the work, except as to final results;

E. Whether or not the work is part of the regular business of the employer;

F. Whether or not the person's business or occupation is typically of an independent nature;

G. The amount of time for which the person is employed; and

H. The method of payment, whether by time or by job.

In applying these factors, the board agency may not give any particular factor a greater weight than any other factor, nor may the existence or absence of any one factor be decisive. The board agency shall consider the totality of the relationship in determining whether an employer exercises essential control or superintendence of the person.

Sec. 37. 39-A MRSA §105, as amended by PL 1993, c. 120, §1 and affected by §6, is further amended to read:

§105. Predetermination of independent contractor status

1. Predetermination permitted. A worker, an employer or a workers' compensation insurance carrier, or any together, may apply to the board executive director for a predetermination of whether the status of an individual worker, group of workers or a

job classification associated with the employer is that of an employee or an independent contractor.

A. The predetermination by the board executive director creates a rebuttable presumption that the determination is correct in any later claim for benefits under this Act.

B. Nothing in this section requires a worker, an employer or a workers' compensation insurance carrier to request predetermination.

2. Premium adjustment. If it is determined that a predetermination does not withstand board agency or judicial scrutiny when raised in a subsequent workers' compensation claim, then, depending on the final outcome of that subsequent proceeding, either the workers' compensation insurance carrier shall return excess premium collected or the employer shall remit premium subsequently due in order to put the parties in the same position as if the final outcome under the contested claim were predetermined correctly.

3. Predetermination submission. A party may submit, on forms approved by the board executive director, a request for predetermination regarding the status of a person or job description as an employee or independent contractor. The status requested by a party is deemed to have been approved if the board does not deny or take other appropriate action on the submission within 14 days.

4. Hearing. A hearing, if requested by a party within 10 days of the board's decision on a petition, must be conducted under the Maine Administrative Procedure Act. A party may file a request for hearing with the executive director within 10 days after receiving notice of the executive director's decision on a petition.__The executive director shall set the matter for hearing, which must be conducted under the Maine Administrative Procedure Act.

5. Certificate. The board executive director shall provide the petitioning party a certified copy of the decision regarding predetermination that is to be used as evidence at a later hearing on benefits.

6. Rulemaking. The board is authorized to adopt reasonable rules pursuant to the Maine Administrative Procedure Act to implement the intent of this section, which is to afford speedy and equitable predetermination of employee and independent contractor status.

Sec. 38. 39-A MRSA §106, as amended by PL 1995, c. 694, Pt. D, §63 and affected by Pt. E, §2, is further amended to read:

§106. Invalidity of waiver of rights; claims not assignable

No An agreement by an employee, unless approved by the board or by the Commissioner of Labor, to waive the employee's rights to compensation under this Act is not valid unless approved by the agency or the Commissioner or Labor. No claims A claim for compensation under this Act are is not assignable or subject to attachment or liable in any way for debt, except for the enforcement of a current support obligation or support arrears pursuant to Title 19-A, chapter 65, subchapter II, article 3 or Title 19-A, chapter 65, subchapter III, or for reimbursement of general assistance pursuant to Title 22, section 4318.

Sec. 39. 39-A MRSA §107, last ¶, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended to read:

If the employer recovers from a 3rd person damages in excess of the compensation and benefits paid or for which the employer has become liable, then any excess must be paid to the injured employee, less a proportionate share of the expenses and cost of actions or collection, including reasonable attorney's fees. Settlement of any such subrogation claims and the distribution of the proceeds therefrom must have the approval of the court in which the subrogation action is pending or to which it is returnable; or if not in suit, of the board executive director. When the court in which the subrogation action is pending or to which it is returnable is in vacation, the judge of the court, or, if the action is pending in or returnable to the Superior Court, any Justice of the Superior Court has the power to approve the settlement of the action and the distribution of the proceeds therefrom. The beneficiary is entitled to reasonable notice and the opportunity to be present in person or by counsel at the approval proceeding and to request a hearing pursuant to section 315 if the beneficiary disputes a decision of the executive director.

Sec. 40. 39-A MRSA §109, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended to read:

§109. Compilation of claims information

A person or entity may not compile for the purpose of distribution and sale listings of employee names and information regarding their claims with the board agency. Any person or entity found by the board to have violated this section is subject to the remedy provision of the Maine Human Rights Act, Title 5, sections 4613 and 4614.

Sec. 41. 39-A MRSA §110, sub-§1, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended to read:

1. Permitted options. Subject to the limitation of subsection 2, the board agency shall recognize as valid and binding a provision in a collective bargaining agreement between an employer and a recognized bargaining agent establishing any of the following:

A. Alternative dispute resolution systems that may include, but are not limited to, mediation or binding arbitration or the use of mediation and binding arbitration;

B. Preferred provider systems for the delivery of health care services or treatment;

C. The use of a designated or limited list of independent medical examiners;

D. Light-duty, modified job or return-to-work programs;

E. Vocational rehabilitation or retraining programs; or

F. A 24-hour coverage program.

Sec. 42. 39-A MRSA §111, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is amended to read:

§111. Alternative programs

After consultation with the Superintendent of Insurance, the board executive director may approve an agreement entered into between an employer and some or all of the employer's employees to secure the payment of compensation and benefits through an alternative program that is different from but not less than the compensation and benefits provided by this Act. The alternative program may not be approved by the board executive director unless it provides for compensation and benefits in addition to those required by this Act and unless it is for a fixed period of time.

Sec. 43. 39-A MRSA §113, sub-§§3 and 4, as enacted by PL 1995, c. 70, §1, are amended to read:

3. Certificate of compliance. A certificate from a duly authorized official of the workers' compensation board agency or similar department or agency of the other state certifying that an employer is insured in that other state and has provided extraterritorial coverage insuring the employer's employees while

working within this State is prima facie evidence that the employer carries such compensation insurance.

4. Reciprocal agreements. The board agency may enter into reciprocal agreements with workers' compensation agencies of other states adopting legislation similar to this section to ensure efficient administration of the Act.

Sec. 44. 39-A MRSA c. 3, is amended by repealing the chapter headnote and enacting in its place the following:

CHAPTER 3

WORKERS' COMPENSATION AGENCY

Sec. 45. 39-A MRSA §151, as enacted by PL 1991, c. 885, Pt. A, §8 and affected by §§9 to 11, is repealed.

Sec. 46. 39-A MRSA §151-A, as enacted by PL 1997, c. 486, §1, is amended to read:

§151-A. Mission statement

The board's agency's mission is to serve the employees and employers of the State fairly and expeditiously by ensuring compliance with the workers' compensation laws, ensuring the prompt delivery of benefits legally due, promoting the prevention of disputes, utilizing dispute resolution to reduce litigation and facilitating labor-management cooperation.

Sec. 47. 39-A MRSA §§151-B and 151-C are enacted to read:

§151-B. Workers' Compensation Agency

1. Agency established.__The Workers' Compensation Agency is established as an agency to be governed and administered in accordance with the provisions of this chapter and other applicable provisions of state law.

2. Headquarters; regional offices.__The agency must have its central office in the Augusta area, and the executive director may choose to establish additional regional offices, subject to the approval of the board.

3. Seal.__The agency may adopt a seal.

§151-C.__Workers' Compensation Board

The board is the governing body of the agency and has general policy-making and oversight responsibilities for the implementation of this Act.

1. Board established.__Pursuant to Title 5, section 12004-G, subsection 35, the Workers' Compensation Board is established as an independent board composed of 9 members, subject to review by the joint standing committee of the Legislature having jurisdiction over state and local government matters and confirmation by the Legislature.__Notwithstanding the scheduling provisions of Title 3, chapter 6, the designated committee shall complete its review of an appointment of the Governor within 15 days of the Governor's written notice of appointment and the vote of the Legislature must be taken no later than 7 days after the vote of the designated committee.

Three members of the board must be representatives of the public, 3 members of the board must be representatives of management and 3 members of the board must be representatives of labor.__All management representatives must be appointed from a list provided by the Maine Chamber of Commerce and Industry or another bona fide organization or association of employers.__All labor representatives must be from a list provided by the Executive Board of the Maine AFL-CIO or another bona fide labor organization or association of employees representing at least 10% of the Maine workforce.__Any list submitted to the Governor must have at least 4 times as many names as there are vacancies for the group represented by the vacancies.__A person nominated for consideration as a management or labor representative may not subsequently be appointed as a public member of the board, and a public member of the board may not subsequently be nominated for consideration as a management or labor representative.

A member of the board is not liable in a civil action for any act performed in good faith in the execution of duties as a board member.

A member of the board may not be a lobbyist required to be registered with the Secretary of State, a service provider to the workers' compensation system or a representative of a service provider to the workers' compensation system.

Members of the board hold office for staggered terms of 4 years, except for members appointed to fill unexpired terms.__The term of one member representing each constituency expires February 1st of each year that is not a gubernatorial election year.__A member may not serve for more than 2 full terms.

2. Removal.__A board member holds office for the term provided under this section, unless removed, and until a

successor is appointed and qualified.__A board member must be sworn and may be removed by the Governor for inefficiency, willful neglect of duty or malfeasance in office, but only with the review and concurrence of the joint standing committee of the Legislature having jurisdiction over state and local government matters upon hearing in executive session or by impeachment. Before removing a board member, the Governor shall notify the President of the Senate and the Speaker of the House of Representatives of the removal and the reasons for the removal.

3.__Vacancies.__If a vacancy occurs during a term of a member, the Governor shall appoint a replacement to fill the unexpired part of the term. The replacement must be from the group represented by the member being replaced.__In case the office of chair becomes vacant, the public member who has served for the longest period of time shall act as chair until the board elects a replacement.

4. Chair.__The board shall annually elect one of its members to serve as chair for a one-year term expiring February 1st.__The chair may vote on all matters before the board.

5. Meetings.__The board may hold sessions at the central office of the agency or at any other place within the State.__A quorum of the board is 5 members but a smaller number may adjourn from time to time until a quorum is present.__Except as otherwise provided, the board may take action by a majority vote of those members present and voting but only if a quorum is present at the time of the action.

6.__Compensation.__A board member must be paid a per diem allowance as provided in Title 5, chapter 379 and be reimbursed for actual, necessary, cash expenses while on official business of the board.

7.__Leave of absence.__An employer may not terminate the employment of an employee who is appointed as a member of the board because of the exercise by the employee of duties required as a board member.__The member is entitled to a leave of absence from employment for the period of time required to perform the duties of a board member.__During the leave of absence, the member may not be subjected to loss of time, vacation time or benefits of employment, excluding salary.

8.__Seal.__The board must have a seal bearing the words "Workers' Compensation Board of Maine."

Sec. 48. 39-A MRSA §152, as amended by PL 1997, c. 486, §2, is repealed.

Sec. 49. 39-A MRSA §152-A is enacted to read:

§152-A. Powers, duties and administration of agency

1.__Executive director.__The Governor shall appoint an executive director who shall serve as the chief executive and administrative officer of the agency and shall consult with the board on an ongoing basis.

A.__The Governor shall consult with the board before making the appointment of the executive director pursuant to this subsection.__The appointment is subject to review by the joint standing committee of the Legislature having jurisdiction over state and local government matters and to confirmation by the Legislature.

B.__The executive director holds office for a 5-year term and may be reappointed.__An executive director whose term has expired continues to serve until a successor has been appointed and confirmed.__The Governor shall fill any vacancy by appointment for the unexpired portion of the term.

C.__Notwithstanding Title 5, section 931, subsection 2, the executive director is removable for cause by impeachment or by address of the Governor to both Houses of the Legislature.

D.__The executive director has all the powers necessary to carry out the executive director's functions under the law, including the power to enter into contracts on behalf of the agency.

E.__Except as otherwise provided, the executive director shall hire personnel as necessary to administer this Act, subject to the Civil Service Law.

F.__The executive director, in consultation with the board, shall appoint deputy directors in charge of the bureaus and divisions of the agency.__These deputy directors are unclassified employees, serve at the pleasure of the executive director and are not subject to the Civil Service Law.

G.__The executive director shall administer the agency's budget.__ The executive director shall allocate the agency's resources prudently and achieve administrative and staff efficiencies wherever possible.__The executive director shall develop a technology plan in conjunction with the Department of Administrative and Financial Services so as to maximize the use of technology for the purpose of collecting and analyzing data on the workers' compensation system.__

Subject to review and approval by the board, the executive director shall submit the biennial budget in accordance with Title 5, sections 1665 and 1666 and shall submit the annual budget in accordance with Title 5, section 1667.

H.__The executive director shall prepare and submit complete reports, including duly audited and certified financial reports, to be distributed in the same manner as state departmental reports.

2. Delegation of authority.__The board and the executive director may delegate powers and duties as necessary.__Any official action of an employee of the agency or a designee of the board or the executive director is an official act of the agency.

3. Agency counsel; staff attorney.__The executive director shall appoint a general counsel, who is the legal adviser to the agency and who shall perform other duties assigned by the agency, and assistants to the general counsel as necessary.__The general counsel and assistants to the general counsel are unclassified employees, serve at the pleasure of the executive director and are not subject to the Civil Service Law.__The executive director shall appoint a staff attorney to advise the advocates pursuant to section 153-A.__The staff attorney is subject to the Civil Service Law and works under the direction of the general counsel.

4. Employment of and contracts with mediators.__The executive director shall obtain the services of persons qualified by background and training to serve as mediators.__In the exercise of the executive director's discretion, the services of mediators may be obtained by either of the following methods:

A. The executive director may contract for the services of mediators.__If the executive director contracts directly with individual mediators, they must be paid reasonable per diem fees for their services plus reimbursement of their actual, necessary and reasonable expenses incurred in the performance of their duties, consistent with policies established by the agency; or

B. The executive director may employ mediators who are not subject to the Civil Service Law to serve at the pleasure of the executive director.__They are entitled to receive reimbursement of their actual, necessary and reasonable expenses incurred in the performance of their duties, consistent with policies established by the agency.

5. Hearing officers.__The executive director shall obtain the services of persons qualified by background and training to serve as hearing officers, who shall conduct all adjudicatory

hearings arising under section 315, all proceedings ancillary to such hearings except as otherwise provided in this Title and any other adjudicatory proceedings of the agency as assigned at the discretion of the executive director.__The services of hearing officers may be obtained by either of the following methods:

A.__The executive director may contract for the services of hearing officers.__If the executive director contracts directly with individual hearing officers, they must be paid reasonable per diem fees for their services plus reimbursement of their actual, necessary and reasonable expenses incurred in the performance of their duties, consistent with policies established by the agency; or

B.__The executive director may appoint hearing officers to serve for 3-year terms.__Hearing officers appointed pursuant to this paragraph are not subject to the Civil Service Law, are subject to removal by the executive director for good cause shown and may be appointed for additional 3-year terms at the pleasure of the executive director.

6.__Adjudicatory proceedings.__Except as otherwise expressly provided, all adjudicatory proceedings arising under this Title must be conducted under the Maine Administrative Procedure Act. In proceedings assigned to hearing officers pursuant to subsection 5, the hearing officer has full decision-making authority on behalf of the agency, subject to judicial review as provided by law and board review under section 320 if applicable.__ In all other proceedings, the executive director or the executive director's designee shall preside and is empowered to take final agency action unless rules adopted by the agency provide otherwise or one of the following alternative procedures is adopted in advance of the hearing with adequate notice to the parties:

A.__At the board's initiative or by referral from the executive director, the board or a subcommittee or member designated by the board presides over the hearing and takes final agency action;

B.__At the board's initiative or by referral from the executive director, a hearing officer or the executive director or another designee of the board presides over the hearing and submits proposed findings to the board pursuant to Title 5, section 9062.__The board takes final agency action; or

C.__A hearing officer or other designee of the executive director presides over the hearing and submits proposed findings to the executive director pursuant to Title 5,

section 9062.__The executive director takes final agency action.

7. Rules.__The board shall adopt rules on behalf of the agency to accomplish the purposes of this Act.__Rules adopted under this section may define terms, prescribe forms and make suitable orders of procedure to ensure the speedy, efficient, just and inexpensive disposition of all proceedings under this Act.__The executive director shall develop rule-making proposals for consideration by the board, provide additional assistance as the board requests and preside over rule-making hearings except when the board otherwise directs.

8. Privacy protection.__The board shall adopt rules establishing a policy and procedures to safeguard the confidentiality of the records of the agency and board and the former Workers' Compensation Commission pertaining to individual injured employees.__The policy must provide for the availability of records on a need-to-know basis only and must allow for legitimate research while protecting individual confidentiality.

9. Conflict of interest.__Each member of the board and each employee, contractor, agent or other representative of the agency is an executive employee for purposes of Title 5, section 18 and is subject to the limitations of that section.__In addition, Title 17, section 3104 is applicable, in accordance with its provisions, to all such representatives of the agency.

10. Accepting gifts, grants or donations.__The board or the executive director may accept gifts, grants or donations for the use of the agency as provided by rules adopted by the board under this section.

11. Case administration.__The board shall assume an active and forceful role in the administration of this Act to ensure that the system operates efficiently and with maximum benefit to both employers and employees.__The board shall provide for the continual oversight of individual cases to ensure that benefits are provided in accordance with this Act.

12. Recommending legislative change.__The board shall consider and recommend to the Legislature changes in this Act.__ Recommended changes must be forwarded to the Legislature annually on or before December 1st.

13. Advisory committees.__The board and the executive director may appoint advisory committees as they determine necessary to assist the agency in matters that arise under this Act.__Advisory committee members are not entitled to compensation

but may be reimbursed for travel and reasonable expenses as determined by the executive director.

14. Reimbursement.__The agency shall impose reasonable charges for reimbursement for the provision of services, facilities and materials, including, but not limited to, reproduction and distribution of forms, reports and publications; photocopying; and the use of facilities.

15.__Rulemaking.__Rules adopted pursuant to this section are routine technical rules as defined in__Title 5, chapter 375, subchapter II-A.

Sec. 50. 39-A MRSA §153, as amended by PL 1999, c. 354, §2, is further amended to read:

§153. Agency actions

In addition to other actions required of or permitted the board under this Act, the board agency shall perform the actions required by this section to ensure just and efficient administration of claims.

1. Monitor payments. The board agency shall monitor cases to ensure that:

A. Payments are initiated within the time limits established in section 205; and

B. Payments to the employee provide the full amount of compensation to which the employee is entitled and are properly indicated on the memorandum of payment.

2. Troubleshooter program. The board agency shall establish a troubleshooter program to provide information and assistance to participants in the workers' compensation system. The A troubleshooter may meet or otherwise communicate with employees, employers, insurance carriers and health care providers in order to prevent or informally resolve disputes.

3. Construction. In interpreting this Act, the board agency and reviewing courts shall construe it so as to ensure the efficient delivery of compensation to injured employees at a reasonable cost to employers. All workers' compensation cases must be decided on their merits and the rule of liberal construction does not apply. Accordingly, this Act is not to be given a construction in favor of the employee, nor are the rights and interests of the employer to be favored over those of the employee.

4. Information. The board agency shall require the employee, employer or insurer to provide it with any information it reasonably determines necessary to monitor cases, including, but not limited to, preinjury and postinjury wage statements.

5. Abuse investigation unit. The board agency shall provide adequate funding for an abuse investigation unit.

A. The board executive director shall, subject to the Civil Service Law, appoint at least 2 abuse investigators who must be qualified by experience and training to perform their duties.

B. The unit shall, at the direction of the board executive director, investigate all complaints or allegations of fraud, illegal or improper conduct or violation of this Act or rules of the board agency relating to workers' compensation insurance, benefits or programs, including those acts by employers, employees or insurers. All records, correspondence and reports of investigation in connection with actual or alleged fraud, illegal or improper conduct or violation of this Act or rules of the board agency and all records, correspondence and reports of criminal prosecution or civil action are confidential. The confidential nature of any such record, correspondence or report does not limit or affect the use of those materials in any prosecution or action.

C. Each employer or employee and each state, county, municipal or quasi-governmental agency shall cooperate fully with the unit and provide any information requested by it.

D. The unit shall report all its findings to the board executive director.

E. Whenever the executive director or the board determines that a fraud, attempted fraud or violation of this Act or rules of the board agency may have occurred, the board executive director shall report in writing all information concerning it to the Attorney General or the Attorney General's delegate for appropriate action, including which may include a civil action for recovery of funds and criminal prosecution by the Attorney General.

6. Mediation. The board agency shall establish a mediation program to provide mediation services to parties to workers' compensation cases.

7. Investigation. The board executive director may, when the interests of any of the parties or when the administration of

this Act demands, appoint a person to make a full investigation of the circumstances surrounding any industrial injury or any matter connected to an industrial injury, or conduct an audit pursuant to section 359 and report the same without delay to the board executive director.

8. Impairment guidelines. The following provisions apply regarding impairment guidelines.

A. In order to reduce litigation and establish more certainty and uniformity in the rating of permanent impairment, the board shall establish by rule a schedule for determining the existence and degree of permanent impairment based upon medically or scientifically demonstrable findings. The schedule must be based on generally accepted medical standards for determining impairment and may incorporate all or part of any one or more generally accepted schedules used for that purpose, such as the American Medical Association's "Guides to the Evaluation of Permanent Impairment." Pending the adoption of a permanent schedule, "Guides to the Evaluation of Permanent Impairment," 3rd edition, copyright 1990, by the American Medical Association, is the temporary schedule and must be used for the purposes of this subsection.

B. The board agency shall collect and analyze data from Maine cases, studies from other states and generally accepted medical guidelines for occupational impairment to so that the board may examine the feasibility and desirability of establishing an objectively ascertainable functional capacity standard to be used for determining eligibility for benefits under this Act consistent with section 213, subsection 2.

9. Audit and enforcement. The executive director shall establish an audit, enforcement and monitoring program by July 1, 1998, to ensure that all obligations under this Act are met, including the requirements of section 359. The functions of the audit and enforcement program include, but are not limited to, auditing timeliness of payments and claims handling practices of insurers, self-insurers and 3rd-party administrators; determining whether insurers, self-insurers and 3rd-party administrators are unreasonably contesting claims; and ensuring that all reporting requirements to the board agency are met. The program must be coordinated with the abuse investigation unit established by section 153, subsection 5 as appropriate. The program must monitor activity and conduct audits pursuant to a schedule developed by the deputy director of benefits administration. Audit working papers are confidential and may not be disclosed to any person outside of the board agency except the audited

entity. For purposes of this subsection "audit working papers" means all documentary and other information acquired, prepared or maintained by the board agency during the conduct of an audit or investigation, including all intra-agency and interagency communications relating to an audit or investigation and draft reports or any portion of a draft report. The final audit report, including the underlying reconciled information, is not confidential. At the end of each calendar quarter, the executive director shall prepare a compliance report summarizing the results of the audits and reviews conducted pursuant to this subsection. The executive director shall submit the quarterly compliance reports to the board, the Bureau of Insurance and the Director of the Bureau of Labor Standards within the Department of Labor. An annual summary must be provided to the Governor and to the joint standing committees of the Legislature having jurisdiction over labor and banking and insurance matters by February 15th of each year. The quarterly compliance reports and the annual summaries must be made available to the public following distribution.

Sec. 51. 39-A MRSA §153-A, as amended by PL 1999, c. 410, §1, is further amended to read:

§153-A. Advocate program

1. Advocate program established. The board executive director shall establish an advocate program to provide assistance to qualified employees who proceed to mediation and formal hearing.

2. Qualified employee. For purposes of this section, "qualified employee" means an employee who, with respect to an injury occurring on or after January 1, 1993, has participated in the troubleshooter program and has not informally resolved the dispute and has demonstrated to the board executive director that legal counsel has not been retained.

3. Advocates. The executive director shall hire advocates under the authority of section 152 152-A, subsection 3, subject to the Civil Service Law, who must be qualified by experience and training.

A. The minimum qualifications for employment as an advocate must include at least the following:

(1) A 6-year combination of appropriate experience, education and training in advocacy or dispute resolution;

(2) Knowledge of administrative, adjudicatory or workers' compensation laws, rules and procedures;

(3) Knowledge of legal documents, court procedures and rules of evidence; and

(4) Knowledge of medical and legal terminology and practices with respect to workers' compensation.

B. The board executive director shall ensure that advocates receive appropriate and ongoing education and training.

C. An advocate may not represent before the board agency any insurer, self-insurer or 3rd-party administrator for a period of 2 years after terminating employment with the board agency.

4. Duties of advocates. Advocates have the following duties:

A. Assisting qualified employees in matters regarding workers' compensation claims, including negotiations;

B. Acting as an information resource to qualified employees on laws, decisions, rules, policies and procedures of the board agency;

C. Assisting and advocating on behalf of qualified employees to obtain appropriate rehabilitation, return to work and employment security services;

D. Meeting with or otherwise communicating with insurers, employers and health care and other authorized providers in order to assist qualified employees;

E. Assisting and advocating on behalf of qualified employees in any mediation or hearing proceeding under the jurisdiction of the board agency; and

F. Maintaining confidentiality of information and communications with respect to the assistance and representation provided to qualified employees.

5. Legal advice to advocates. The board's agency's general counsel shall assign a staff attorney as necessary to advise advocates on the preparation of qualified employees' cases at the formal hearing stage.

6. Case management authority of advocates. An advocate has the authority to:

A. Manage and prioritize the advocate's caseload to efficiently move cases through the board agency mediation and hearing process and to achieve resolution;

B. With the written approval of the staff attorney, decline cases or cease assistance to an employee when the advocate after investigation finds:

(1) Timely notice of the injury was not given by the employee to the employer, pursuant to this Act;

(2) The statute of limitations has expired;

(3) The employee's case is based on an argument or issue adversely determined by the Supreme Judicial Court;

(4) The employee's case is based on a claim of discrimination governed by section 353;

(5) There is no record of medical assessment stating that the employee's injury was either caused by, aggravated by or precipitated by the employee's work or, when the issue is aggravation, there is no record of medical assessment stating that the employee's work aggravated a preexisting condition in a significant manner; or

(6) The employee has admitted to a fraudulent act, has been convicted of a fraudulent act by a court of competent jurisdiction or has been found to have committed a fraudulent act by the abuse investigation unit of the board agency; and

C. With the written approval of the staff attorney, present lump-sum settlements on cases pursuant to section 352.

A qualified employee whose case is declined or whose advocate assistance ceases pursuant to this subsection may appeal the action to the executive director of the board, within 30 days of the action. The executive director's ruling on the appeal is final and is not subject to judicial review. If the executive director finds assistance by an advocate should resume, the employee must be assigned to an advocate other than the advocate who declined the case or ceased assistance.

7. Rulemaking. In addition to the case management authority established reasons specified in subsection 6, the board may establish by rule additional reasons for which the advocates may decline or cease assistance on cases. Rules

adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

Sec. 52. 39-A MRSA §154, as amended by PL 2001, c. 393, §1, is further amended to read:

§154. Dedicated fund; assessment on workers' compensation

insurers and self-insurers

The Workers' Compensation Board Agency Administrative Fund is established to accomplish the purposes of this Act. All income generated pursuant to this section must be recorded on the books of the State in a separate account and deposited with the Treasurer of State and be credited to the Workers' Compensation Board Agency Administrative Fund.

1. Use of fund. All money credited to the Workers' Compensation Board Agency Administrative Fund must be used to support the activities of the board agency through duly approved expenditures within the agency's budget and for no other purpose. Any balance remaining continues from year to year as a fund available for the purposes set out in this section and for no other purpose.

2. Expenditures. Expenditures from the Workers' Compensation Board Agency Administrative Fund are subject to legislative approval and allocation in the same manner as appropriations are made from the General Fund. The State Controller shall authorize expenditures from the Worker's Compensation Agency Administrative Fund upon the basis of allotments recommended by the State Budget Officer and approved by the Governor that do not exceed the legislatively approved allocations of the Workers' Compensation Agency Administrative Fund and not on any other basis. The joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs shall approve the allocation.

3. Assessment on workers' compensation insurance. The following provisions apply regarding the Workers' Compensation Board Agency assessment on workers' compensation insurance.

A. Every insurance company or association that writes workers' compensation insurance in the State and that does business or collects premiums or assessments in the State, including newly licensed insurance companies and associations and every self- insured employer approved pursuant to section 403, shall pay to the board agency the assessment determined pursuant to this section for the purpose of providing partial support and maintenance of the board agency. An insurance company or self- insurer whose

authority terminates remains responsible for the assessment that is due in the year following the termination of its certificate of authority.

B. The assessment must be stated as a percentage of each employer's premium base a dollar amount determined by the executive director in accordance with subsection 5. In determining the assessment percentage level, consideration must be given to the balance in the Workers' Compensation Board Agency Administrative Fund.

B-1. An employer's premium base for assessment purposes is defined as payroll times the filed manual rate applicable to the employer times the employer's current experience modification factor, if applicable. The calculation may not include any deductible credit, other than credits for the $1,000 and $5,000 indemnity deductibles and the $250 and $500 medical deductibles established pursuant to Title 24-A, sections 2385 and 2385-A. For policies written using retrospective rating, the premium base must be calculated in accordance with this paragraph regardless of the actual retrospective premium calculation.

The employer's premium base is subject to the final audit requirements of the Bureau of Insurance Rule, Chapter 470. If the audit results in a change in premium base, the amount of the assessment must be adjusted accordingly.

C. For each fiscal year, the initial assessment percentage must be determined by the board by May 1st of the prior fiscal year. Insurance companies or associations must begin collecting the initial assessment from all employers on July 1st of each year. In establishing the assessment percentage, the board shall estimate the expected premium base for the upcoming fiscal year based on the returns filed under paragraph D and anticipated trends in the insurance marketplace. The board shall consult with the Bureau of Insurance and other knowledgeable sources to help determine the trends. The board may adjust the assessment percentage at any time but shall provide written notice to the affected companies and associations at least 45 days prior to the effective date of the adjustment. The board may not adjust the assessment percentage more than 3 times in a fiscal year. The adjusted assessment percentage must be applied prospectively on policies with an effective date on or after the effective date of the adjustment.

D. Every All assessments under this section are due and payable by June 1st, except that an insurance company or association subject to the assessment imposed by this

section or individual or group self-insurer with an estimated annual payment of $50,000 or more based on previous assessment returns may make payments in equal quarterly installments on the first day of each June, September, December and March. Each insurance company or association electing quarterly payments must on or before the last day of each January, each April, the 25th day of each June and the last day of each October file with the board on forms prescribed by the board a return for the quarter ending the last day of the preceding month, except the month of June, which is for the quarter ending June 30th and remit payment of the assessment based upon the results for the quarter reported. A final reconciled annual return must be filed on or before September 15th covering the prior fiscal year in which the previous assessment was levied. The final return must be certified by the company's or association's chief financial officer. Insurance companies or associations with an annual assessment estimate of under $50,000 shall pay the assessment on or before June 1st and shall also file a quarterly and an annual return on forms prescribed by the board. Each insurer and individual or group self-insurer subject to assessment shall file a return with the agency, on a form prescribed by the agency, on or before the date the annual or quarterly payment is due and remit payment of the assessment. Affiliated insurers may aggregate their collection volume in order to meet the $50,000 assessment threshold as long as the affiliation is consistent with the standards defined in Title 24-A, section 222. Those qualifying insurance companies or associations that opt to consolidate their quarterly payments and reports may do so only if each individually licensed company or association is individually reported within each consolidated return.