NY State Senate Bill 2013-S5376B

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 20, 2014	committed to rules
Jun 16, 2014	amended on third reading 5376b
Apr 30, 2014	advanced to third reading
Apr 29, 2014	2nd report cal.
Apr 28, 2014	1st report cal.385
Jan 08, 2014	referred to labor returned to senate died in assembly
Jun 21, 2013	referred to labor
Jun 20, 2013	delivered to assembly passed senate ordered to third reading cal.1562 committee discharged and committed to rules
Jun 13, 2013	print number 5376a
Jun 13, 2013	amend and recommit to labor
May 16, 2013	referred to labor

Votes

- Jun 20, 2013 - Floor Vote
  S5376B
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 20, 2013
      
      aye (63)
      
      Adams
      
      Addabbo Jr.
      
      Avella
      
      Ball
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Espaillat
      
      Farley
      
      Felder
      
      Flanagan
      
      Fuschillo
      
      Gallivan
      
      Gianaris
      
      Gipson
      
      Golden
      
      Griffo
      
      Grisanti
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Libous
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Maziarz
      
      Montgomery
      
      Nozzolio
      
      O'Brien
      
      O'Mara
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sampson
      
      Sanders Jr.
      
      Savino
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tkaczyk
      
      Valesky
      
      Young
      
      Zeldin
  Jun 20, 2013 - Rules Committee Vote
  S5376B
  
  24
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 20, 2013
      
      aye (24)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      Dilan
      
      Espaillat
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Hannon
      
      Hassell-Thompson
      
      Krueger
      
      LaValle
      
      Larkin
      
      Libous
      
      Marcellino
      
      Maziarz
      
      Montgomery
      
      Nozzolio
      
      Parker
      
      Perkins
      
      Seward
      
      Skelos
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (1)
      
      Gianaris
  Apr 28, 2014 - Labor Committee Vote
  S5376B
  
  16
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Labor Committee Vote: Apr 28, 2014
      
      aye (16)
      
      Addabbo Jr.
      
      Ball
      
      DeFrancisco
      
      Dilan
      
      Gallivan
      
      Grisanti
      
      Hannon
      
      Marcellino
      
      Marchione
      
      Martins
      
      Peralta
      
      Perkins
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino

Bill Amendments

Original

B (Active)

2013-S5376 - Details

Current Committee:: Senate Rules
Law Section:: Workers' Compensation Law
Laws Affected:: Add §112-a, Work Comp L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S3512
2017-2018: S3964

2013-S5376 - Summary

Provides incentives for productive workers' compensation audits.

2013-S5376 - Sponsor Memo

                                BILL NUMBER:S5376

TITLE OF BILL:  An act to amend the workers' compensation law, in
relation to providing incentives for productive workers' compensation
audits

PURPOSE OR GENERAL IDEA OF BILL:

To prevent workers' compensation insurance fraud by ensuring that all
employers in the State are appropriately classified.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill would add a new Section 112-A to the Workers'
Compensation Law.

Paragraph (a) of subdivision one of such Section would require
periodic audits, including but not limited to, payroll records
verifications and onsite physical inspections, in order to determine
each employer's unique experience-rated operations for premium
calculations. Construction class employers shall be audited annually
and all other employers not less than biennially.

Paragraph (b) of subdivision one such Section would make a knowing
misrepresentation or concealment, of material information in order to
avoid proper classification for purposes of premium calculations, a

fraudulent insurance practice in violation of applicable provisions of
Workers' Compensation Law Section 114 and Penal Law Section 176.05.

Subdivision two of such Section would exempt self-insureds from the
provisions of the Section.

Subdivision three of such Section defines "construction class."

Section 2 of the bill sets forth the effective date.

JUSTIFICATION:

In order to combat Workers' Compensation Insurance fraud and hold down
premiums charged, especially in the construction industry, periodic
audits are necessary. Productive employer audits are beneficial, since
they (1) protect workers by ensuring adequate workers' compensation
coverage; (2) true-up premium, often leading to return of premium or
credits against future installments; and (3) provide adequate premium
for the appropriate risk classification. For instance, a roofing
contractor claiming to be a kitchen remodeler leads to data corruption
at the New York Compensation Insurance Rating Board and ultimately in
the rate-making at the Division of Insurance of the Department of
Financial Services.

Often, employers who refuse an audit are attempting to avoid paying
the appropriate Workers' Compensation premium. Experience in states
that have a periodic audit statute in place (like Florida, California,
North Carolina and South Carolina) shows that appropriate Premium from
an employer who refuses an audit may be in excess of established
penalty provisions fox such refusals. This bill would make clear the
penalties for refusing to submit to the standard practice of audits of


workers' compensation insurance policies, and would restate that
refusal to permit an audit of payroll records and knowing
misrepresentation or concealment of the number and type of employees
and actual work performed could constitute criminal insurance fraud.

PRIOR LEGISLATIVE HISTORY:

New bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

2013-S5376 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  5376

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Labor

AN ACT to amend the workers' compensation law, in relation to  providing
  incentives for productive workers' compensation audits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The workers' compensation law is amended by  adding  a  new
section 112-a to read as follows:
  S  112-A.  AUDITS  OF EMPLOYERS. 1. (A) EMPLOYERS IN ALL CLASSES OTHER
THAN THE CONSTRUCTION CLASS SHALL BE AUDITED NOT  LESS  FREQUENTLY  THAN
BIENNIALLY  AND  THE CHAIR OR BOARD MAY PROVIDE FOR MORE FREQUENT AUDITS
OF EMPLOYERS IN SPECIFIED  CLASSIFICATIONS  BASED  ON  FACTORS  SUCH  AS
AMOUNT  OF  PREMIUM,  TYPE  OF  BUSINESS, LOSS RATIOS, OR OTHER RELEVANT
FACTORS. IN NO EVENT SHALL EMPLOYERS IN THE CONSTRUCTION CLASS, GENERAT-
ING MORE THAN THE AMOUNT OF PREMIUM REQUIRED TO BE EXPERIENCE RATED,  BE
AUDITED  LESS  FREQUENTLY  THAN ANNUALLY. THE ANNUAL AUDITS REQUIRED FOR
CONSTRUCTION CLASSES MAY CONSIST  OF  PHYSICAL  ONSITE  AUDITS.  AT  THE
COMPLETION  OF  AN  AUDIT,  IF REQUESTED BY THE AUDITOR, THE EMPLOYER OR
OFFICER OF THE CORPORATION AND THE AUDITOR MUST  PRINT  AND  SIGN  THEIR
NAMES  ON  THE  AUDIT DOCUMENT AFFIRMING THE ACCURACY OF THE INFORMATION
PROVIDED THEREIN. AS REQUIRED BY SECTION  ONE  HUNDRED  TWELVE  OF  THIS
ARTICLE,  EMPLOYERS SHALL MAKE AVAILABLE ALL BOOKS AND RECORDS NECESSARY
FOR THE PAYROLL VERIFICATION AUDIT AND PERMIT  THE  AUDITOR  TO  MAKE  A
PHYSICAL  INSPECTION  OF THE EMPLOYER'S OPERATION.  IF AN EMPLOYER FAILS
TO PROVIDE REASONABLE ACCESS TO ALL SUCH BOOKS AND RECORDS NECESSARY FOR
A PAYROLL VERIFICATION AUDIT, INCLUDING A  PHYSICAL  INSPECTION  OF  THE
EMPLOYER'S  OPERATION,  THE  EMPLOYER SHALL PAY AN ADDITIONAL PREMIUM TO
THE CARRIER OF THREE TIMES THE MOST RECENT ESTIMATED ANNUAL PREMIUM.
  (B)  IF  AN  EMPLOYER  KNOWINGLY  UNDERSTATES  OR  KNOWINGLY  CONCEALS
PAYROLL,  KNOWINGLY  MISREPRESENTS OR KNOWINGLY CONCEALS EMPLOYEE DUTIES
SO AS TO AVOID PROPER CLASSIFICATION FOR PREMIUM CALCULATIONS, OR  KNOW-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11025-01-3

S. 5376                             2

INGLY  MISREPRESENTS  OR KNOWINGLY CONCEALS INFORMATION PERTINENT TO THE
COMPUTATION AND APPLICATION OF AN EXPERIENCE RATING MODIFICATION FACTOR,
SAID KNOWING MISREPRESENTATIONS OR KNOWING CONCEALMENTS SHALL BE CONSID-
ERED  FRAUDULENT  PRACTICES  IN  VIOLATION  OF  APPLICABLE PROVISIONS OF
SECTION ONE HUNDRED FOURTEEN OF THIS  ARTICLE  AND  INSURANCE  FRAUD  IN
VIOLATION OF APPLICABLE PROVISIONS OF SECTION 176.05 OF THE PENAL LAW.
  2.  THIS  SECTION  SHALL  NOT  APPLY  TO EMPLOYERS THAT SELF-INSURE OR
EMPLOYERS THAT ARE MEMBERS OF A WORKERS' COMPENSATION GROUP SELF-INSURED
TRUST.
  3. FOR THE PURPOSES OF THIS SECTION, "CONSTRUCTION  CLASS"  MEANS  THE
WORK OR OCCUPATION DESCRIBED IN "GROUP 3" OF SECTION THREE OF THIS CHAP-
TER.
  S 2. This act shall take effect immediately.

co-Sponsors

2013-S5376A - Details

Current Committee:: Senate Rules
Law Section:: Workers' Compensation Law
Laws Affected:: Add §112-a, Work Comp L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S3512
2017-2018: S3964

2013-S5376A - Summary

Provides incentives for productive workers' compensation audits.

2013-S5376A - Sponsor Memo

                                BILL NUMBER:S5376A

TITLE  OF  BILL:    An  act to amend the workers' compensation law, in
relation to providing incentives for productive workers'  compensation
audits

PURPOSE:  To prevent workers' compensation insurance fraud by ensuring
that all employers in the State are appropriately classified.

SUMMARY OF PROVISIONS:

Section  1  of  the bill would add a new Section 112-A to the Workers'
Compensation Law.

Paragraph (a)  of  subdivision  one  of  such  Section  would  require
periodic  audits,  including  but  not  limited  to,  payroll  records
verifications and onsite physical inspections, in order  to  determine
each   employer's   unique  experience-rated  operations  for  premium
calculations. Construction class employers shall be  audited  annually
and all other employers not less than biennially.

Paragraph  (b)  of  subdivision  one such Section would make a knowing
misrepresentation or concealment of material information in  order  to
avoid  proper  classification  for purposes of premium calculations, a
fraudulent insurance practice in violation of applicable provisions of
Workers' Compensation Law Section 114 and Penal Law Section 176.05.

Subdivision two of such Section would exempt  self-insureds  from  the
provisions of the Section.

Subdivision three of such Section defines "construction class."

Section 2 of the bill sets forth the effective date

JUSTIFICATION:    In  order  to combat Workers' Compensation Insurance
fraud and hold down premiums charged, especially in  the  construction
industry,  periodic  audits  are necessary. Productive employer audits
are beneficial, since they (1) protect workers  by  ensuring  adequate
workers'  compensation coverage; (2) true-up premium, often leading to
return of premium or credits  against  future  installments;  and  (3)
provide  adequate premium for the appropriate risk classification. For
instance, a roofing contractor claiming  to  be  a  kitchen  remodeler
leads to data corruption at the New York Compensation Insurance Rating
Board  and  ultimately in the rate-making at the Division of Insurance
of the Department of Financial Services.

Often, employers who refuse an audit are attempting  to  avoid  paying
the  appropriate  Workers'  Compensation premium. Experience in states
that have a periodic audit statute in place (like Florida, California,
North Carolina and South Carolina) shows that appropriate premium from
an employer who refuses an audit  may  be  in  excess  of  established
penalty  provisions  for such refusals. This bill would make clear the
penalties for refusing to submit to the standard practice of audits of
workers' compensation  insurance  policies,  and  would  restate  that
refusal   to   permit   an   audit  of  payroll  records  and  knowing
misrepresentation or concealment of the number and type  of  employees
and actual work performed could constitute criminal insurance fraud.


LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None

EFFECTIVE DATE:  This act shall take effect immediately.

2013-S5376A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5376--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sen.  SEWARD -- read twice and ordered printed, and when
  printed to be  committed  to  the  Committee  on  Labor  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT to amend the workers' compensation law, in relation to providing
  incentives for productive workers' compensation audits

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  workers' compensation law is amended by adding a new
section 112-a to read as follows:
  S 112-A. AUDITS OF EMPLOYERS. 1. (A) EMPLOYERS IN  ALL  CLASSES  OTHER
THAN  THE  CONSTRUCTION  CLASS SHALL BE AUDITED NOT LESS FREQUENTLY THAN
BIENNIALLY AND THE CHAIR OR BOARD MAY PROVIDE FOR MORE  FREQUENT  AUDITS
OF  EMPLOYERS  IN  SPECIFIED  CLASSIFICATIONS  BASED  ON FACTORS SUCH AS
AMOUNT OF PREMIUM, TYPE OF BUSINESS,  LOSS  RATIOS,  OR  OTHER  RELEVANT
FACTORS. IN NO EVENT SHALL EMPLOYERS IN THE CONSTRUCTION CLASS, GENERAT-
ING  MORE THAN THE AMOUNT OF PREMIUM REQUIRED TO BE EXPERIENCE RATED, BE
AUDITED LESS FREQUENTLY THAN ANNUALLY. THE ANNUAL  AUDITS  REQUIRED  FOR
CONSTRUCTION  CLASSES  SHALL  BE  A  PHYSICAL, ONSITE REVIEW OF ORIGINAL
PAYROLL RECORDS, EMPLOYEE RECORDS, CHECKBOOKS, CASH BOOK  (DISBURSEMENTS
AND RECEIPTS), GENERAL LEDGER, CONTRACTS, TAX RETURNS INCLUDING QUARTER-
LY  PAYROLL  FILINGS,  AND ORIGINAL CERTIFICATES OF INSURANCE. THE AUDIT
SHALL BE CONDUCTED NO MORE THAN NINETY DAYS AFTER THE  EXPIRATION  OF  A
POLICY PERIOD.  AT THE COMPLETION OF AN AUDIT, IF REQUESTED BY THE AUDI-
TOR,  THE  EMPLOYER  OR  OFFICER OF THE CORPORATION AND THE AUDITOR MUST
PRINT AND SIGN THEIR NAMES ON THE AUDIT DOCUMENT AFFIRMING THE  ACCURACY
OF  THE INFORMATION PROVIDED THEREIN. AS REQUIRED BY SECTION ONE HUNDRED
TWELVE OF THIS ARTICLE, EMPLOYERS SHALL MAKE  AVAILABLE  ALL  BOOKS  AND
RECORDS  NECESSARY  FOR  THE  PAYROLL  VERIFICATION AUDIT AND PERMIT THE
AUDITOR TO MAKE A PHYSICAL INSPECTION OF THE EMPLOYER'S OPERATION.    IF
AN  EMPLOYER  FAILS  TO  PROVIDE REASONABLE ACCESS TO ALL SUCH BOOKS AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11025-02-3

S. 5376--A                          2

RECORDS NECESSARY FOR A PAYROLL VERIFICATION AUDIT, INCLUDING A PHYSICAL
INSPECTION OF THE EMPLOYER'S OPERATION, THE EMPLOYER SHALL PAY AN  ADDI-
TIONAL  PREMIUM  TO THE CARRIER OF THREE TIMES THE MOST RECENT ESTIMATED
ANNUAL PREMIUM.
  (B)  IF  AN  EMPLOYER  KNOWINGLY  UNDERSTATES  OR  KNOWINGLY  CONCEALS
PAYROLL, KNOWINGLY MISREPRESENTS OR KNOWINGLY CONCEALS  EMPLOYEE  DUTIES
SO  AS TO AVOID PROPER CLASSIFICATION FOR PREMIUM CALCULATIONS, OR KNOW-
INGLY MISREPRESENTS OR KNOWINGLY CONCEALS INFORMATION PERTINENT  TO  THE
COMPUTATION AND APPLICATION OF AN EXPERIENCE RATING MODIFICATION FACTOR,
SAID KNOWING MISREPRESENTATIONS OR KNOWING CONCEALMENTS SHALL BE CONSID-
ERED  FRAUDULENT  PRACTICES  IN  VIOLATION  OF  APPLICABLE PROVISIONS OF
SECTION ONE HUNDRED FOURTEEN OF THIS  ARTICLE  AND  INSURANCE  FRAUD  IN
VIOLATION OF APPLICABLE PROVISIONS OF SECTION 176.05 OF THE PENAL LAW.
  (C)  IF DURING THE COURSE OF AN AUDIT CONDUCTED UNDER THIS SECTION, AN
INSURANCE CARRIER OBTAINS INFORMATION  INDICATING  A  VIOLATION  OF  THE
PROVISIONS  OF PARAGRAPH (B) OF THIS SUBDIVISION, THEN THE CARRIER SHALL
REPORT SUCH INFORMATION TO THE BOARD.
  2. THIS SECTION SHALL NOT  APPLY  TO  EMPLOYERS  THAT  SELF-INSURE  OR
EMPLOYERS THAT ARE MEMBERS OF A WORKERS' COMPENSATION GROUP SELF-INSURED
TRUST.
  3.  FOR  THE  PURPOSES OF THIS SECTION, "CONSTRUCTION CLASS" MEANS THE
WORK OR OCCUPATION DESCRIBED IN "GROUP 3" OF SUBDIVISION ONE OF  SECTION
THREE OF THIS CHAPTER.
  S 2. This act shall take effect immediately.

co-Sponsors

2013-S5376B (ACTIVE) - Details

Current Committee:: Senate Rules
Law Section:: Workers' Compensation Law
Laws Affected:: Add §112-a, Work Comp L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S3512
2017-2018: S3964

2013-S5376B (ACTIVE) - Summary

Provides incentives for productive workers' compensation audits.

2013-S5376B (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5376B

TITLE OF BILL:  An act to amend the workers' compensation law, in
relation to providing incentives for productive workers' compensation
audits

PURPOSE:  To prevent workers' compensation insurance fraud by ensuring
that all employers in the State are appropriately classified

SUMMARY OF PROVISIONS:

Section 1 of the bill would add a new Section 112-A to the Workers'
Compensation Law.

Paragraph (a) of subdivision one of such Section would require periodic
audits, including but not limited to, payroll records verifications and
onsite physical inspections, in order to determine each employer's
unique experience-rated operations for premium calculations.
Construction class employers shall be audited annually and all other
employers not less than biennially

Paragraph (b) of subdivision one such Section would make a knowing
misrepresentation or concealment of material information in order to
avoid proper classification for purposes of premium calculations, a
fraudulent insurance practice in violation of applicable provisions of
Workers' Compensation Law Section 114 and Penal Law Section 176.05.

Subdivision two of such Section would exempt self-insureds from the
provisions of the Section.

Subdivision three of such Section defines "construction class."

Section 2 of the bill sets forth the effective date

JUSTIFICATION:  In order to combat Workers' Compensation Insurance fraud
and hold down premiums charged, especially in the construction industry,
periodic audits are necessary. Productive employer audits are benefi-
cial, since they (1) protect workers by ensuring adequate workers'
compensation coverage; (2) true-up premium, often leading to return of
premium or credits against future installments; and (3) provide adequate
premium for the appropriate risk classification. For instance, a roofing
contractor claiming to be a kitchen remodeler leads to data corruption
at the New York Compensation Insurance Rating Board and ultimately in
the rate-making at the Division of Insurance of the Department of Finan-
cial Services.

Often, employers who refuse an audit are attempting to avoid paying the
appropriate Workers' Compensation premium Experience in states that have
a periodic audit statute in place (like Florida, California, North Caro-
lina and South Carolina) shows that appropriate premium from an employer
who refuses an audit may be in excess of established penalty provisions
for such refusals. This bill would make clear the penalties for refusing

to submit to the standard practice of audits of workers' compensation
insurance policies, and would restate that refusal to permit an audit of
payroll records and knowing misrepresentation or concealment of the
number and type of employees and actual work performed could constitute
criminal insurance fraud.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:  This act shall take effect January 1, 2015.

2013-S5376B (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5376--B
    Cal. No. 385

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sens.  SEWARD, AVELLA -- read twice and ordered printed,
  and when printed to be committed to the Committee on Labor --  commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee -- recommitted to the Committee on  Labor  in
  accordance  with Senate Rule 6, sec. 8 -- reported favorably from said
  committee, ordered to first and second  report,  ordered  to  a  third
  reading,  amended  and  ordered  reprinted, retaining its place in the
  order of third reading

AN ACT to amend the workers' compensation law, in relation to  providing
  incentives for productive workers' compensation audits

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The workers' compensation law is amended by  adding  a  new
section 112-a to read as follows:
  S  112-A.  AUDITS  OF EMPLOYERS. 1. (A) EMPLOYERS IN ALL CLASSES OTHER
THAN THE CONSTRUCTION CLASS SHALL BE AUDITED NOT  LESS  FREQUENTLY  THAN
BIENNIALLY  AND  THE CHAIR OR BOARD MAY PROVIDE FOR MORE FREQUENT AUDITS
OF EMPLOYERS IN SPECIFIED  CLASSIFICATIONS  BASED  ON  FACTORS  SUCH  AS
AMOUNT  OF  PREMIUM,  TYPE  OF  BUSINESS, LOSS RATIOS, OR OTHER RELEVANT
FACTORS. IN NO EVENT SHALL EMPLOYERS IN THE CONSTRUCTION CLASS, GENERAT-
ING MORE THAN THE AMOUNT OF PREMIUM REQUIRED TO BE EXPERIENCE RATED,  BE
AUDITED  LESS  FREQUENTLY  THAN ANNUALLY. THE ANNUAL AUDITS REQUIRED FOR
CONSTRUCTION CLASSES MAY  BE  A  PHYSICAL,  ONSITE  REVIEW  OF  ORIGINAL
PAYROLL  RECORDS, EMPLOYEE RECORDS, CHECKBOOKS, CASH BOOK (DISBURSEMENTS
AND RECEIPTS), GENERAL LEDGER, CONTRACTS, TAX RETURNS INCLUDING QUARTER-
LY PAYROLL FILINGS, AND ORIGINAL CERTIFICATES OF INSURANCE. THE AUDIT OF
ALL EMPLOYERS SHALL BE CONDUCTED NO MORE THAN ONE  HUNDRED  TWENTY  DAYS
AFTER THE EXPIRATION OF A POLICY PERIOD.  AT THE COMPLETION OF AN AUDIT,
IF  REQUESTED BY THE AUDITOR, THE EMPLOYER OR OFFICER OF THE CORPORATION
MUST PRINT AND SIGN THEIR NAMES ON  THE  AUDIT  DOCUMENT  AFFIRMING  THE
ACCURACY OF THE INFORMATION PROVIDED THEREIN. AS REQUIRED BY SECTION ONE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD11025-08-4

S. 5376--B                          2

HUNDRED TWELVE OF THIS ARTICLE, EMPLOYERS SHALL MAKE AVAILABLE ALL BOOKS
AND  RECORDS NECESSARY FOR THE PAYROLL VERIFICATION AUDIT AND PERMIT THE
AUDITOR TO MAKE A PHYSICAL INSPECTION OF THE EMPLOYER'S OPERATION.    IF
AN  EMPLOYER  FAILS  TO  PROVIDE REASONABLE ACCESS TO ALL SUCH BOOKS AND
RECORDS NECESSARY FOR A PAYROLL VERIFICATION AUDIT, INCLUDING A PHYSICAL
INSPECTION OF  THE  EMPLOYER'S  OPERATION,  THE  EMPLOYER  SHALL  PAY  A
SURCHARGE  TO  THE CARRIER OF TWO TIMES THE MOST RECENT ESTIMATED ANNUAL
PREMIUM.
  (B) EMPLOYERS THAT FAIL TO PROVIDE REASONABLE ACCESS  TO  THE  CARRIER
FOR THE PURPOSE OF CONDUCTING AN AUDIT SHALL BE REPORTED TO THE NEW YORK
COMPENSATION INSURANCE RATING BOARD.
  (C)  IF  AN  EMPLOYER  KNOWINGLY  UNDERSTATES  OR  KNOWINGLY  CONCEALS
PAYROLL, KNOWINGLY MISREPRESENTS OR KNOWINGLY CONCEALS  EMPLOYEE  DUTIES
SO  AS TO AVOID PROPER CLASSIFICATION FOR PREMIUM CALCULATIONS, OR KNOW-
INGLY MISREPRESENTS OR KNOWINGLY CONCEALS INFORMATION PERTINENT  TO  THE
COMPUTATION AND APPLICATION OF AN EXPERIENCE RATING MODIFICATION FACTOR,
SAID KNOWING MISREPRESENTATIONS OR KNOWING CONCEALMENTS SHALL BE CONSID-
ERED  FRAUDULENT  PRACTICES  IN  VIOLATION  OF  APPLICABLE PROVISIONS OF
SECTION ONE HUNDRED FOURTEEN OF THIS  ARTICLE  AND  INSURANCE  FRAUD  IN
VIOLATION OF APPLICABLE PROVISIONS OF SECTION 176.05 OF THE PENAL LAW.
  (D)  IF DURING THE COURSE OF AN AUDIT CONDUCTED UNDER THIS SECTION, AN
INSURANCE CARRIER OBTAINS INFORMATION  INDICATING  A  VIOLATION  OF  THE
PROVISIONS  OF PARAGRAPH (C) OF THIS SUBDIVISION, THEN THE CARRIER SHALL
REPORT SUCH INFORMATION TO THE BOARD.
  2. THIS SECTION SHALL NOT  APPLY  TO  EMPLOYERS  THAT  SELF-INSURE  OR
EMPLOYERS THAT ARE MEMBERS OF A WORKERS' COMPENSATION GROUP SELF-INSURED
TRUST.
  3.  FOR  THE  PURPOSES OF THIS SECTION, "CONSTRUCTION CLASS" MEANS THE
WORK OR OCCUPATION DESCRIBED IN "GROUP 3" OF SUBDIVISION ONE OF  SECTION
THREE OF THIS CHAPTER.
  S 2. This act shall take effect January 1, 2015.

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Senate Bill S5376B

Sponsored By

Archive: Last Bill Status - In Senate Committee Rules Committee

Jun 20, 2013 - Floor Vote

Floor Vote: Jun 20, 2013

Jun 20, 2013 - Rules Committee Vote

Rules Committee Vote: Jun 20, 2013

Apr 28, 2014 - Labor Committee Vote

Labor Committee Vote: Apr 28, 2014

Bill Amendments

2013-S5376 - Details

2013-S5376 - Summary

2013-S5376 - Sponsor Memo

2013-S5376 - Bill Text download pdf

co-Sponsors

2013-S5376A - Details

2013-S5376A - Summary

2013-S5376A - Sponsor Memo

2013-S5376A - Bill Text download pdf

co-Sponsors

2013-S5376B (ACTIVE) - Details

2013-S5376B (ACTIVE) - Summary

2013-S5376B (ACTIVE) - Sponsor Memo

2013-S5376B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S5376B

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Sponsored By

James L. Seward

Archive: Last Bill Status - In Senate Committee Rules Committee

Bill Amendments

2013-S5376 - Details

2013-S5376 - Summary

2013-S5376 - Sponsor Memo

2013-S5376 - Bill Text download pdf

co-Sponsors

Tony Avella

2013-S5376A - Details

2013-S5376A - Summary

2013-S5376A - Sponsor Memo

2013-S5376A - Bill Text download pdf

co-Sponsors

Tony Avella

2013-S5376B (ACTIVE) - Details

2013-S5376B (ACTIVE) - Summary

2013-S5376B (ACTIVE) - Sponsor Memo

2013-S5376B (ACTIVE) - Bill Text download pdf

Comments