Utah Senate, House Pass Bill to Let Workers’ Comp Fund Become A Mutual

February 28, 2017

Both the Utah Senate and House have passed a bill to repeal the statue creating the state’s Workers’ Compensation Fund.

Following a court battle and several pieces of legislation, the fund has nearly separated from state control and oversight and now seeks to become a mutual insurance company.

To do that it required terminating its last tie to the state by deleting its enabling legislation and the requirement for the fund to be the insurer of last resort.

The bill now awaits the signature or veto of Gov. Gary Herbert.

The bill’s chief sponsor was Sen. Curtis Bramble, and it’s House sponsor was Rep. Val Peterson, both Republicans.

This bill repeals the statute creating the Workers’ Compensation Fund and makes conforming amendments.

Provisions the bill would do the following:

  • Repeal the statute creating the Workers’ Compensation Fund;
  • remove statutory references to the fund;
  • address the obligation to write workers’ comp insurance and residual market mechanisms;
  • provide for the fund’s transition to a mutual corporation;
  • modify membership on the workers’ comp advisory council;
  • address methods to obtain workers’ comp insurance;
  • amend the provision addressing penalty for failure to obtain workers’ comp;
  • modify the provision addressing exemptions for employees temporarily in state;
  • address continuing education requirements for contractor licensees;
  • make technical and conforming amendments.

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