HOUSE BILL No. 5917


     June 9, 1998, Introduced by Reps. Basham, Freeman, DeHart, Anthony, Prusi, Martinez, Cherry, LaForge, Cropsey, Tesanovich, Scott, Hale, Bogardus, Wojno, Thomas, Wetters, Walberg, Dobronski, Agee, Schermesser, Kelly, Rison, Griffin, Leland, Jelinek, Bobier, Goschka, Sanborn, Godchaux, Kukuk, Lowe, Richner and Birkholz and referred to the Committee
on Labor and Occupational Safety.


        A bill to amend 1969 PA 317, entitled

   "Worker's disability compensation act of 1969,"

   by amending section 801 (MCL 418.801), as amended by 1994

   PA 271.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 801.  (1)  Compensation  A PERSON ENTITLED TO

 2    COMPENSATION shall be paid promptly and directly.  to the person

 3     entitled thereto and shall become due and payable on 

 4    COMPENSATION IS SUBJECT TO ALL OF THE FOLLOWING:

 5         (A) ON the fourteenth day after the employer has notice or

 6    knowledge of the disability or death,  on which date  all compen-

 7    sation then accrued IS DUE AND PAYABLE, AND IMMEDIATELY shall be

 8    paid.  Thereafter 

 9         (B) AFTER THE PAYMENT DESCRIBED IN SUBDIVISION (A),

10    compensation shall be paid in weekly installments.


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 1         (C) COMPENSATION REQUIRED TO BE PAID UNDER A SETTLEMENT OR

 2    REDEMPTION IS DUE AND OWING ON THE DATE OF THE SETTLEMENT OR

 3    REDEMPTION, AND IS PAYABLE IN ACCORDANCE WITH THE TERMS OF THE

 4    SETTLEMENT OR REDEMPTION.

 5         (2) Every carrier shall keep a record of all payments made

 6    under this act and of the time and manner of making the payments

 7    and shall furnish reports, based upon these records, to the

 8    bureau as the director may reasonably require.

 9         (3)  (2)  If weekly compensation benefits,  or  accrued

10    weekly benefits, OR BENEFITS UNDER A REDEMPTION OR SETTLEMENT are

11    not paid within 30 days after becoming due and payable, in cases

12    where there is not an ongoing dispute, $50.00 per day shall be

13    added and paid to the worker for each day over 30 days in which

14    the benefits are not paid.  Not  HOWEVER, FOR A DELAY IN PAYING

15    WEEKLY COMPENSATION BENEFITS OR ACCRUED WEEKLY BENEFITS, NOT more

16    than $1,500.00 in total may be added  pursuant to  UNDER this

17    subsection.

18         (4)  (3)  If medical bills or travel allowance are not paid

19    within 30 days after the carrier has received notice of nonpay-

20    ment by certified mail, in cases where there is no ongoing dis-

21    pute, $50.00 or the amount of the bill due, whichever is less,

22    shall be added and paid to the worker for each day over 30 days

23    in which the medical bills or travel allowance are not paid.  Not

24    more than $1,500.00 in total may be added  pursuant to  UNDER

25    this subsection.







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 1         (5)  (4)  For purposes of rate-making, daily charges paid

 2    under subsection  (2) shall not constitute  (3) ARE NOT elements

 3    of loss.

 4         (6)  (5)  An employer who has notice or knowledge of the

 5    disability or death and fails to give notice to the carrier shall

 6    pay the penalty provided  for in  UNDER subsection  (2)  (3) for

 7    the period during which the employer failed to notify the

 8    carrier.

 9         (7)  (6)  When weekly compensation is paid  pursuant to 

10    UNDER an award of a worker's compensation magistrate, an arbitra-

11    tor, the board, the appellate commission, or a court, interest on

12    the compensation shall be paid at the rate of 10% per annum from

13    the date each payment was due, until paid.































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