§ 25. Compensation, how payable. 1. When no controversy; penalties:
failure to notify of cessation of payment; late payment of installment.
(a) The compensation herein provided for shall be paid periodically and
promptly in like manner as wages, and as it accrues, and directly to the
person entitled thereto without waiting for an award by the board,
including those cases previously established and closed by the board
upon receipt of an application to reopen such case, except in those
cases in which the right to compensation is controverted by the
employer.

(b) The first payment of compensation shall become due on the
fourteenth day of disability on which date or within four days
thereafter all compensation then due shall be paid, and the compensation
payable bi-weekly thereafter; but the board may determine that any
payments may be made monthly or at any other period, as it may deem
advisable. An award of compensation payable for permanent partial
disability under paragraphs a through t, inclusive, of subdivision three
of section fifteen of this article, shall be payable in one lump sum,
without commutation to present value upon the request of the injured
employee.

(c) If the employer or insurance carrier does not controvert the
injured worker's right to compensation such employer or insurance
carrier shall, either on or before the eighteenth day after disability,
or within ten days after the employer first has knowledge of the alleged
accident, whichever period is the greater, begin paying compensation and
shall immediately notify the chair in accordance with a form to be
prescribed by him, that the payment of compensation has begun,
accompanied by the further statement that the employer or insurance
carrier, as the case may be, will notify the chair when the payment of
compensation has been stopped.

(d) Whenever for any reason compensation payments cease, the employer
or its insurance carrier shall within sixteen days thereafter, send to
the chair a notice on a form prescribed by the chair that such payment
has been stopped, which notice shall contain the name of the injured
employee or his or her principle dependent, the date of accident, the
date to which compensation has been paid and the whole amount of
compensation paid. In case the employer or its insurance carrier fails
so to notify the chair of the cessation of payments within sixteen days
after the date on which compensation has been paid, the board may impose
a penalty upon such employer or its insurance carrier in the amount of
three hundred dollars, which shall be paid to the claimant. Such penalty
shall be collected in like manner as an award of compensation.

(e) If the employer or insurance carrier shall fail to pay any
installments of compensation within twenty-five days after the same
become due, there shall be paid by the employer or, if insured, its
insurance carrier, an additional amount of twenty percent of the
compensation then due which shall accrue for the benefit of the injured
worker or his or her dependents and shall be paid to him or her or them
with the compensation, unless such delay or default is excused by the
board upon the application of the employer or insurance carrier upon the
ground that owing to conditions over which the employer or insurance
carrier had no control, such payment could not be made. The employer in
each such instance shall also be assessed the sum of three hundred
dollars, which shall be paid to the claimant.

(f) Whenever compensation is withheld solely because a controversy
exists on the question of liability as between insurance carriers,
surety companies, the special disability fund, the special fund for
reopened cases, or an employer, the board may direct that any carrier,
surety company, the special disability fund, the special fund for
reopened cases shall immediately pay compensation and bills for medical
care to the extent payable in accordance with sections thirteen-g,
thirteen-k, thirteen-l and thirteen-m of this chapter, pending
determination of such issue. Any such payment or payments shall not be
deemed an admission against interest by the carrier, surety company,
special disability fund or the special fund for reopened cases. After
final determination, the parties shall make the necessary and proper
reimbursement including the payment of simple interest at the rate
established by section five thousand four of the civil practice law and
rules in conformity with such determination.

2. Procedure when compensation controverted; penalties: late filing;
controversy without just cause. (a) In case the employer decides to
controvert the right to compensation, it shall, either on or before the
eighteenth day after disability or within ten days after it has
knowledge of the alleged accident, whichever period is the greater, file
a notice with the chair, on a form prescribed by the chair, that
compensation is not being paid, giving the name of the claimant, name of
the employer, date of the alleged accident and the reason why
compensation is not being paid. When a claim for compensation is filed
with medical evidence of work related injury or illness, and the
claimant is disabled and not working, and the claimant is otherwise
entitled to compensation, and the employer is not making payment to the
claimant as required herein, and the employer has not controverted the
claim, and the efforts to resolve the issue with the carrier have not
been successful, the claimant may request, in the format prescribed by
the chair, a hearing to be held within forty-five days of the board's
receipt of such request.

If the insurance carrier shall fail either to file notice of
controversy or begin payment of compensation within the prescribed
period or within ten days after receipt of a copy of the notice required
in section one hundred ten of this chapter, whichever period is the
greater, the board may impose a penalty in the amount of three hundred
dollars, which shall be in addition to all other penalties provided for
in this chapter and shall be paid to the claimant. Such penalty shall be
collected in like manner as an award of compensation.

(b) In the event the board shall notify an employer or his insurance
carrier that a workers' compensation case has been indexed against such
employer, and the employer or insurance carrier decides to controvert
the right to compensation, a notice of controversy shall be filed with
the chair within twenty-five days from the date of mailing of a notice
that the case has been indexed. Failure to file the notice of
controversy within the prescribed twenty-five day time limit shall bar
the employer and its insurance carrier from pleading that the injured
person was not at the time of the accident an employee of the employer,
or that the employee did not sustain an accidental injury, or that the
injury did not arise out of and in the course of the employment.
However, the board, in the interest of justice, shall, upon the showing
of good cause therefor, permit the filing or the amendment of a notice
of controversy to raise an issue not theretofore raised because of
mistake, inadvertence, omission, irregularity, defect or surprise, or
based upon newly discovered evidence.

(c) If the board shall upon a hearing determine that objections to an
award of compensation by the employer or insurance carrier were
interposed without just cause, it shall state the grounds for such
determination and shall require the employer or the insurance carrier to
pay to the claimant, in addition to the amount presently due under the
award, the sum of three hundred dollars.

2-a. Pre-hearing conference. (a) In any controverted case, upon
receipt of the notice of controversy, the board shall schedule a
pre-hearing conference before a referee or conciliator as soon as
practicable but not to exceed forty-five days after receipt of notice of
controversy and a medical report referencing an injury. The board shall
give notice of the pre-hearing conference to all parties. A party may
appear at such conference pro se, or by an attorney or licensed
representative or other representative authorized by the board to appear
on behalf of such party.

(b) The purpose of the conference shall be to consider the following:

(i) confirmation that all appropriate forms, including medical
reports, have been submitted and a verification that all information on
the forms is accurate;

(ii) addition of any other necessary parties, where appropriate;

(iii) simplification and limitation of factual and legal issues, where
appropriate;

(iv) presentation of a list of proposed witnesses, where appropriate;

(v) scheduling the case for a hearing; and

(vi) entering into a stipulation.

(c) The referee or conciliator may continue the conference and order
the production of any necessary reports, including, where appropriate,
an examination by a carrier's consultant. At the conclusion of the
conference, the referee or conciliator may issue a written order. The
referee or conciliator may, upon agreement of all parties, issue a
decision which shall constitute a decision of the board for all
purposes. If a claimant shall be unrepresented, a decision issued by a
referee upon agreement of all parties at a pre-hearing conference shall
not become final until it shall have reviewed and approved by the chair
or a referee of the board designated by the chair. Such review by the
chair or an employee of the board so designated shall occur no later
than fourteen days from the date the proposed decision is submitted for
review and approval. The unrepresented claimant shall have ten days from
receipt of notice of such approval to withdraw from the agreement. If
not withdrawn, such agreement shall constitute an award of the board for
all purposes. Upon receipt of written notification of such withdrawal by
the unrepresented claimant, the board shall rescind the decision made by
the referee and restore the case to the regular hearing calendar
process. Such decision shall constitute a decision of the board for the
purposes of section twenty-three of this article.

(d) In cases where the claimant is represented by an attorney or a
licensed representative, ten days before the conference, each party
shall file a conference statement noting the specific issues in dispute,
including the information required in paragraph (b) of this subdivision.
Discovery shall close at the end of the pre-hearing conference. Evidence
not disclosed or obtained thereafter shall not be admissible unless the
proponent of the evidence can demonstrate that it was not available or
could not have been discovered by the exercise of due diligence prior to
the conference. If a claimant is unrepresented, the carrier shall file
such a statement.

(e) Proceedings in the pre-hearing part shall be conducted in
accordance with the rules promulgated by the chair or the board.

2-b. Conciliation. (a) 1. There is hereby created within the board a
conciliation process. The conciliation process will permit claims to be
handled on a more expeditious and informal basis and provide a mechanism
for claims to be addressed without undue controversy.

2. Conciliation may also address requests by hospitals, physicians or
other health care providers for payment of bills rendered by them in any
case, regardless of the expected duration of benefits, pursuant to
sections thirteen-g, thirteen-k, thirteen-l and thirteen-m of this
article, and regardless of the dollar amount of the bill.

(b) Each claim that is filed shall be reviewed for possible transfer
for conciliation. Claims where the expected duration of benefits is
fifty-two weeks or less shall be transferred for conciliation within
thirty days of receipt of a carrier's response to notice of index
required under this section, except uncontested claims where there have
been only temporary or minor injuries and where board appearance by the
claimant is unnecessary. Such minor and uncontested claims shall be
handled through a motion calendar as prescribed by the rules and
regulations promulgated pursuant to this section.

(c) Upon receipt of a claim for conciliation, a meeting shall be
scheduled, if necessary, within thirty days with all concerned parties
before a conciliation counsel.

(d) All information relative to the claim shall be made available to
all parties no later than five days before the meeting. This information
shall include, but not be limited to medical records, wage information,
date of accident or injury and the amount of time lost from work as a
result of such accident or injury.

(e) At such meeting the conciliation counsel shall promptly and prior
to any other proceeding authorized under this section inform any
claimant participating in the meeting without benefit of a counsel or
licensed representative of their right to have representation present,
their right to a reasonable adjournment to procure representation, of
their right to withdraw from any agreement at such meeting in accordance
with subdivision (g) of this section and such other and further
information as the chair may require to insure that an uncounselled
claimant fully understands the conciliation process. After informing
claimant in accordance with this subdivision, conciliation counsel shall
request a written consent to participate in the conciliation process
from claimant, and if such claimant declines to continue, shall
immediately cease the conciliation process and cause the claim to be
restored to the regular hearing calendar process.

(f) After reviewing all relevant information, conciliation counsel
shall prepare a proposed decision which shall be sent to all parties.
Any party may object to the proposed decision and request a hearing
within thirty days of the receipt of the proposed decision. If no
objection is made during such thirty day period the proposed decision
shall constitute a final award of the board for all purposes except that
it shall not be reviewable under sections twenty-two and twenty-three of
this article. If any party objects to the proposed decision, the case
shall be transferred to the regular hearing calendar process.

(g) If a claimant shall be unrepresented, the case shall not be agreed
to until it shall have been reviewed and approved by the chair or a
referee of the board designated by the chair. Such decision shall be
rendered within fifteen days of receipt of the agreement from the
conciliation bureau; provided, however, that a claimant shall have ten
days from receipt of notice of such approval to withdraw from the
agreement. If approved, such agreement shall constitute an award of the
board for all purposes except that it shall not be reviewable under
sections twenty-two and twenty-three of this article. Should the
agreement be disapproved or should the claimant withdraw from the
agreement as provided herein, the case shall be transferred to the
regular hearing calendar process.

(h) After the proposed decision has become final, the carrier shall
make payments of any award as required in the decision within ten days.
If, however, the carrier does not make the payments as required in the
decision within ten days of the date in which the proposed decision
becomes final, the chair shall impose of a fine of five hundred dollars
for failure to live up to the terms of the decision upon verification
that payment has not been timely made. Of that amount, three hundred
dollars shall be made payable to the claimant and two hundred dollars
shall be payable to the board for the operation and administration of
this chapter.

(i) If, in any case which has been addressed by conciliation, the
claimant requires additional medical care beyond that agreed to or
requires benefit payments beyond that agreed to, the meeting, if
necessary, shall be reconvened within thirty days from the receipt of
information demonstrating the need for additional medical care or
benefit payments. If it is determined that the claimant's condition may
continue for a period of time which is more than six months, such case
shall be reopened and transferred to the regular hearing calendar. If,
however, it is determined, based on medical evidence, that the
claimant's condition will improve in less than six months, the case
shall remain in conciliation.

2-c. Collective bargaining; alternative dispute resolution. (a) For
the purposes of employments classified under sections two hundred
twenty, two hundred forty and two hundred forty-one of the labor law, an
employer and a recognized or certified exclusive bargaining
representative of its employees may include within their collective
bargaining agreement provisions to establish an alternative dispute
resolution system to resolve claims arising under this chapter.

Any collective bargaining agreement or agreement entered into by the
employee and an employer which purports to preempt any provision of this
chapter or in any way diminishes or changes rights and benefits provided
under this chapter, except as expressly provided herein, shall be null,
void and unenforceable.

(b) Except as specifically provided in this subdivision, nothing in
this section or any collective bargaining agreement providing for an
alternative dispute resolution system for the resolution of claims
arising under this chapter shall preempt any provision of this chapter
or in any way diminish or change any benefits to which an employee, or
his or her dependents, or survivors may be entitled pursuant to the
provisions of this chapter.

(c) The collective bargaining agreement may establish the following
obligations and procedures:

(i) an alternative dispute resolution process to resolve claims
arising under this chapter, which may include but is not limited to
mediation or arbitration;

(ii) the use of an agreed managed care organization as defined in
section one hundred twenty-six of this chapter or a list of authorized
providers for medical treatment, which may be the exclusive source of
all medical and related treatment provided under this chapter;

(iii) the use of an agreed list of authorized providers for the
purpose of providing medical opinions and testimony, which may be the
exclusive source of all such medical opinions and testimony under this
chapter;

(iv) benefits for injured workers, their dependents or their survivors
supplemental to those provided under this chapter;

(v) a light duty, modified job, or return to work program;

(vi) a vocational rehabilitation or retraining program; and

(vii) worker injury and illness prevention programs and procedures.

(d) The determination of an arbitrator or mediator pursuant to an
alternative dispute resolution procedure pertaining to the resolution of
claims arising under this chapter shall not be reviewable by the
workers' compensation board, and the venue for any appeal shall be to a
court of competent jurisdiction in accordance with section twenty-three
of this chapter.

(e) (i) Determinations rendered as a result of an alternative dispute
resolution procedure shall remain in force during a period in which the
employer and a recognized or certified exclusive bargaining
representative are renegotiating a collective bargaining agreement.

(ii) Upon the expiration of a collective bargaining agreement which
contains a provision for an alternative dispute resolution procedure for
workers' compensation claims, the resolution of claims relating to
injuries sustained as a result of a work-related accident or
occupational disease may, if the collective bargaining agreement so
provides, be subject to the terms and conditions set forth in the
expired collective bargaining agreement until the employer and a
recognized or certified exclusive bargaining representative negotiate a
new collective bargaining agreement.

(iii) Upon the termination of a collective bargaining agreement which
is not subject to renegotiation, the employer and its employees shall
become fully subject to the provisions of this chapter to the same
extent as they were prior to the implementation of the collective
bargaining agreement provided, however, that when a claim has been
adjudicated under the alternative dispute resolution procedure, the
claimant or employer to such claim or matter shall be estopped from
raising identical issues before the board.

(f) Commencing January first, nineteen hundred ninety-six, and
annually thereafter, a copy of the collective bargaining agreement shall
be filed with the chair. The employer shall report the number of
employees subject to the collective bargaining agreement. The chair or
the chair's designee shall review the collective bargaining agreements
for compliance with the provisions of this section, shall notify the
parties to the agreement if the agreement is not in compliance, and
shall recommend appropriate action to bring the agreement into
compliance.

3. Hearings; procedure; penalty for late payment of award and for
dilatory tactics or unjustified lack of preparedness of a carrier or
employer. (a) The chairman may in the interest of justice at any time
refer a case in which payments are being made as above to the board for
a hearing, and shall immediately upon receipt of notice from the injured
worker, from the employer, or from the insurance carrier that the
employee's right to compensation is controverted, or that payments of
compensation have stopped or been suspended, make such investigations,
or cause such medical examinations to be made, or refer the case for
such hearings, as will properly protect the rights of both parties,
either as to any compensation then due or as to any compensation that
may become due in the future for temporary or permanent disability, and
shall promptly cause the resumption of payments in case the injured
person is entitled thereto.

(b) Nothing herein shall limit the right of the board in a particular
case to hold a hearing and make an award in accordance with other
provisions of this chapter. No case shall be closed without notice to
all parties interested and without giving to all such parties an
opportunity to be heard.

(c) The board shall keep an accurate record of all hearings held.
Whenever a hearing must be continued or adjourned because the carrier or
employer has engaged in dilatory tactics or exhibited unjustified lack
of preparedness, the board shall impose a penalty of twenty-five dollars
to be paid to the fund created by subdivision two of section one hundred
fifty-one of this chapter and shall in addition make an award of
seventy-five dollars payable to the injured worker or his or her
dependants. Dilatory tactics may include but shall not be limited to:
failing to subpoena medical witnesses or to secure an order to show
cause as directed by the referee, failing to bring proper files, failing
to appear, failing to produce witnesses or documents after they have
been requested by the referee or examiner or as directed by the hearing
notice, unnecessarily protracting the production of evidence, or
engaging in a pattern of delay which unduly delays resolution, except
that no penalty shall be imposed nor award made under this subdivision
if the carrier or employer produces evidence sufficient to excuse its
conduct to the satisfaction of the referee.

(d) If, in any case, the issues have not been resolved within one year
after such issues have been raised before the board, or if multiple
claims arise from the same accident or occurrence, or if all parties
agree to an expedited hearing, or if a notice of controversy is filed,
or if the chair otherwise deems it necessary, the chair may order that
the case be transferred to a special part for expedited hearings.
Proceedings in such part shall be conducted in an expedited manner.

Cases in such special part shall be scheduled in such a manner so
that, where appropriate, any and all outstanding issues may be addressed
at one hearing. An adjourned case shall be rescheduled as soon as
practicable, but no later than thirty days following such adjournment.

If a request for an adjournment is made by a carrier or employer which
is not an emergency and is deemed to be frivolous by the chair, a
penalty of one thousand dollars shall be imposed by the chair. If such
employer or carrier is represented by an attorney or licensed
representative who is not an employee of the carrier or employer, the
attorney or licensed representative shall be responsible for the payment
of such penalty. If a request for an adjournment is made by a claimant
who is represented by an attorney or a licensed representative which is
not an emergency and is deemed to be frivolous by the chair, a penalty
of five hundred dollars shall be imposed by the chair on the attorney or
licensed representative. Such penalty shall be paid by the attorney or
licensed representative and shall not come out of the claimant's award.
No penalty shall be imposed on an unrepresented claimant who requests an
adjournment.

(e) If the employer or its insurance carrier fails to file a notice or
report requested or required by the board or chair or otherwise required
within the specified time period or within ten days if no time period is
specified, the board may impose a penalty in the amount of fifty dollars
unless the employer or carrier produces evidence sufficient to excuse
its conduct to the satisfaction of the board. Such penalty shall be in
addition to all other penalties provided for in this chapter and shall
be paid into the state treasury.

(f) If the employer or its insurance carrier shall fail to make
payments of compensation according to the terms of the award within ten
days or the uninsured employers' fund shall fail to make payments of
compensation according to the terms of the award within thirty days
after such ten day period except in case of an application to the board
for a modification, rescission or review of such award, there shall be
imposed a penalty equal to twenty percent of the unpaid compensation
which shall be paid to the injured worker or his or her dependents, and
there shall also be imposed an assessment of fifty dollars, which shall
be paid into the state treasury.

(g) Notwithstanding any other provision in this chapter, the chair may
by regulation elect to establish a performance standard concerning the
subject of any penalty or assessment provision applicable to an
insurance carrier or self-insured employer, where such penalty or
assessment is remittable to the New York state treasury, or chair, but
not to claimants or any other payee or fund, and impose a single penalty
or assessment upon the failure to meet that promulgated standard, with
notice to the carrier or self-insured employer. The penalty or
assessment imposed in the aggregate shall be payable to the chair. Such
aggregate penalty or assessment shall be based upon the number of
violations as multiplied against the applicable penalty or assessment,
but may be negotiated by the chair's designee in full satisfaction of
the penalty or assessment. A final agreement between the chair's
designee and the carrier or self-insured employer may be submitted and
approved subject to section thirty-two of this article, without notice
to any claimant. Any aggregate penalty or assessment issued herein shall
be issued administratively, and the board, and the chair may, by
regulation, specify the method of review or redetermination, and the
presentment of evidence and objections shall occur solely upon the
documentation. The carrier or self-insured employer shall receive credit
for any instances in which the aggregate penalty or assessment is
inclusive of a penalty or assessment previously issued and paid in an
individual claim or proceeding. A final determination is subject to
review under section twenty-three of this article, except that no stay
in payment of the penalty or assessment shall apply pending the outcome
of the application for administrative review. Failure to pay the finally
determined penalty or assessment, or the penalty or assessment agreed
upon pursuant to section thirty-two of this article, within ten days of
filing, shall result in the imposition of a twenty-percent penalty,
payable to the chair. In the event of the carrier or self-insured
employer instituting or continuing an issue without reasonable grounds,
the provisions of subdivision three of section one hundred fourteen-a of
this chapter shall be applicable. Aggregate penalties shall be borne
exclusively by insurance carriers and licensed representatives pursuant
to subdivision three-b of section fifty of this article and the costs
shall not be passed to insured employers.

4. Advance payments of compensation; employer reimbursements; receipts
for payment. (a) If the employer has made advance payments of
compensation, or has made payments to an employee in like manner as
wages during any period of disability, he shall be entitled to be
reimbursed out of an unpaid instalment or instalments of compensation
due, provided his claim for reimbursement is filed before award of
compensation is made, or if insured, by the insurance carrier at the
direction of the board, unless he shall file a waiver of reimbursement
with the chairman, in which event compensation shall be paid to the
claimant notwithstanding the advanced payments.

(b) An injured employee, or in case of death his dependents or
personal representative, shall give receipts for payment of compensation
to the employer paying the same and such employer shall produce the same
for inspection by the chairman, whenever required.

(c) If the employer or comptroller of the state or city of New York or
trustees duly constituted under any welfare, pension or benefit plan,
agreement or trust to which the injured employee is a party or of which
he or she is a beneficiary, and which plan, agreement or trust shall
provide that the injured employee shall not be entitled to or shall be
limited in the amount of benefits or payments thereunder if he or she
shall be entitled to benefits under this chapter, shall have advanced or
paid benefits or payments thereunder to the injured employee during any
period in which his or her right to benefits under this chapter was not
determined, then and in such event such employer or comptroller of the
state or city of New York or trustees shall be entitled to be reimbursed
out of the unpaid instalment or instalments of compensation due,
provided claim therefor is filed together with proof of the terms of
said plan, agreement or trust and of the fact and amount of payment with
the board before award of compensation is made. The New York city
employees' retirement system shall provide to the board on a monthly
basis a listing in an electronic format including the names and social
security numbers of injured employees to whom benefit payments were paid
or advanced by such system and whose benefit payments are limited by
workers' compensation benefits awarded under this chapter. The board
shall verify which injured employees have been awarded workers'
compensation benefits and return the listing to the New York city
employees' retirement system including, but not limited to, the
following information relating to the award for each injured employee:
date of accident, board case number, carrier identification number,
carrier case number, beginning and ending dates of disability, payment
interval, and payment amount. The board shall return the listing to the
New York city employees' retirement system no later than fourteen days
after its receipt.

4-a. Public employee welfare fund; wage replacement payment; lien. a.
For the purposes of this subdivision, the following terms shall have the
following meanings:

(i) "Public employer" shall mean the state, a municipal corporation, a
local government agency or other political subdivision, a public
authority, a public benefit corporation, or any other political
subdivision of the state.

(ii) "Public employee" shall mean all employees of a public employer.

(iii) "Public employee welfare fund" shall mean any trust fund or
other fund established or maintained unilaterally or jointly by one or
more labor organizations which represent the relevant public employees
and/or one or more public employers whether directly or through
trustees, to provide employee welfare benefits for public employees or
their families or dependents, or for both, including, but not limited
to, medical, surgical or hospital care or benefits, and benefits in the
event of sickness, accident, disability, or death.

b. Where a public employee who is ineligible for benefits under
section two hundred three or two hundred seven of this chapter by reason
of his public employer's failure to voluntarily elect coverage under
section two hundred twelve of this chapter, is disabled and has claimed
or subsequently claims and is entitled to workers' compensation benefits
under this article, and that public employee is covered by a public
employee welfare fund which voluntarily provides a wage replacement
benefit in the event of disability, the following provision shall apply:

Where such an employee receives a wage replacement benefit from such a
public employee welfare fund in respect of the disability which forms
the basis of the workers' compensation claim, the public employee
welfare plan making such payment may, at any time before an award of
workers' compensation benefits is made, file with the board a claim for
reimbursement out of the proceeds of such award to the public employee
for the period for which the wage replacement benefit was paid to the
public employee under the rules of the public employee welfare fund, and
shall have a lien against the award for reimbursement, provided that the
insurance carrier or other entity liable for payment of the award
receives, before such award is made, a copy of the claim for
reimbursement from the public employee welfare fund which paid the wage
replacement benefit, or provided that the board's decision and award
directs such reimbursement.

5. Deposits for security; lump sum payments in certain cases. (a)
Whenever the chair may deem it advisable any employer or insurance
carrier may be required to make a deposit with the chair to secure the
prompt and convenient payment of such compensation, and the chair, shall
have power to make payments therefrom upon any awards. The interest on
all funds on deposit with the chair pursuant to this paragraph, may be
transferred to the uninsured employers' fund whenever the chair shall
determine that the net assets of the uninsured employers fund are less
than two million dollars or the amount expended by that fund in the
prior year whichever is greater.

(b) The board, whenever it shall so deem advisable, may commute such
periodical payments to one or more lump sum payments to the injured
employee, or, in case of death, his or her dependents, provided the same
shall be in the interests of justice. Such commutation shall be made
according to the method prescribed in section twenty-seven of this
article.

6. At the request of a person legally responsible for a minor
claimant, the board may, after a hearing, direct that payment be made to
the legally responsible person, to be used for the benefit of such
claimant. A person who is so designated shall report to the chairman
annually with respect to the use of such payments. The chairman may
require that a report be made more often than annually if there is
reason to believe that the person receiving such payments is using the
payments for purposes other than the benefit of the claimant. Should the
chairman or the board find that the payee is using the payment for
purposes other than the benefit of the claimant the board shall after a
hearing revoke the payee's designation and appoint a new payee. The
chairman shall take such action as is necessary to recover from the
payee any funds improperly used.

7. Payments and awards to minors. All awards of compensation required
to be made to minors under this chapter shall be paid to or for the
benefit of such minors. The board may in its discretion require the
appointment of a guardian, before making payments not otherwise directed
to be paid by action of such board, where such award exceeds two hundred
and fifty dollars. The board may, when such course seems advisable,
direct that funds, payable to or for the benefit of a minor, be paid for
vocational training or maintenance of such minor supplementing payments
made under subdivision nine of section fifteen of this chapter.

8. Rules. The board may adopt rules to carry out the provisions of
this section, including provision for reports to the chairman by a
guardian of the use of moneys paid to minors and reports to the chairman
by a designated payee of compensation to a minor, in accordance with
this section.

9. Direct deposit. (a) Compensation payments shall be required, upon
the written request from an injured worker or a person entitled to a
death benefit provided by this chapter, to be deposited directly in a
bank for any purpose to an account in the name of such injured worker or
person entitled to death benefits, and duly filed in accordance with
such regulations. Each person eligible to receive payment of
compensation or death benefits under this section shall be notified of
the option to receive such payment in the form of direct deposit from
the carrier or self-insured employer, such notice to be promulgated by
the board. Such eligible person shall also be provided the means
necessary to enroll in direct deposit pursuant to this paragraph in a
manner specified by regulations of the board at the same time as notice
is given pursuant to this paragraph.

(b) The board is hereby authorized to promulgate reasonable rules and
regulations, as may be necessary, to administer the direct deposit of
compensation payments. Such regulations shall permit the deposit of
compensation payments to be split between multiple accounts by either a
dollar amount or exact percentage, provided, however, such regulations
may establish a minimum dollar amount and may limit the maximum number
of partial deposits allowed.

(c) As used in this subdivision, the term "bank" includes any
financial institution which is a member of the New York automated
clearinghouse or any financial institution designated by the board.

(d) Notwithstanding any provision in this subdivision to the contrary,
direct deposit of any compensation payment may not be made if such
payment would be in violation of any federal or state law or regulation.