HOUSE BILL NO. 5184

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 2011 PA 266.

the people of the state of michigan enact:

Sec. 801. (1) Compensation shall must be paid promptly and directly to the person entitled thereto to the compensation and shall become becomes due and payable on the fourteenth day after the employer has notice or knowledge of the disability or death, on which date all compensation then accrued shall must be paid. Thereafter, compensation shall must be paid in weekly installments. Every carrier shall keep a record of all payments made under this act and of the time and manner of making the payments and shall furnish reports, based upon on these records, to the agency as the director may reasonably require.

(2) If weekly compensation benefits, or accrued weekly benefits, or compensation owed in accordance with a final redemption order are not paid within 30 14 days after becoming due and payable and there is not an ongoing bona fide dispute, $50.00 $100.00 per day shall must be added and paid to the worker for each day over 30 14 days in which the benefits are not paid. Not more than $1,500.00 $25,000.00 in total may be added pursuant to under this subsection.

(3) If a medical bills bill or a travel allowance is not paid within 30 days after the carrier has received receives notice of nonpayment by certified mail and there is no not an ongoing bona fide dispute, $50.00 $100.00 or the amount of the bill due, whichever is less, shall must be added and paid to the worker for each day over 30 days in which the medical bills bill or travel allowance is not paid. Not more than $1,500.00 $25,000.00 in total may be added pursuant to under this subsection.

(4) For purposes of rate-making, daily charges paid under subsection (2) shall do not constitute elements of loss.

(5) An employer who that has notice or knowledge of the disability or death and fails to give notice to the carrier shall pay the penalty provided for in under subsection (2) for the period during which the employer failed to notify the carrier.

(6) When weekly compensation is paid pursuant to in accordance with an award of a worker's compensation magistrate, an arbitrator, the board, the appellate commission, or a court, interest on the compensation shall must be paid at a rate calculated in the same manner as interest on a money judgment in a civil action under section 6013(8) of the revised judicature act of 1961, 1961 PA 236, MCL 600.6013.of 10% per annum from the date each payment was due, until the compensation is paid.

(7) By April 1, 2012, the director of the worker's compensation agency shall coordinate with the department of technology, management, and budget on the development of comprehensive data and shall file with the secretary of the senate and the clerk of the house of representatives a report making recommendations to the legislature on a system utilizing advanced analytics for the detection and prevention of fraud, waste, and abuse in the worker's compensation system. Additionally, the director shall include information on the number of cases filed, and the number of employees who had benefits reduced as a result of a determination of their wage earning capacity.