North Carolina Legislature Creates Committee
The North Carolina Legislature has passed two different amendments to House Bill 237 better known as the Workers Compensation reform act. The two amendments functioned as a way to better track employers without coverage.
The amendments also created a Legislative subcommittee for employer compliance and fraud detection. The text of the Legislative Committee bill is below. The alarms went off when a reporter performed a great investigation that showed there were 30,000 employers without Workers Comp insurance coverage statewide.
Governor Perdue has not signed the ratified bill into law as of today.
SECTION 8.(a) Creation and Membership. – The Joint Legislative Committee on Workers’ Compensation Insurance Coverage Compliance and Fraud Prevention and Detection (Committee) is created.
The Committee shall consist of eight members to be appointed as follows:
(1) Four members of the Senate appointed by the President Pro Tempore of the Senate.
(2) Four members of the House of Representatives appointed by the Speaker of the House of Representatives.
SECTION 8.(b) Scope of Review. – The Committee shall:
(1) Review the statutes relating to workers’ compensation in the State to determine whether there are sufficient safeguards to ensure that employers comply with statutory requirements related to workers’ compensation insurance coverage and to prevent and detect fraudulent claims before the Industrial Commission.
(2) Examine the measures taken by the Industrial Commission relating to compliance with statutory requirements related to workers’ compensation insurance coverage and to fraudulent claims to determine whether the Commission is using effectively existing powers and resources relating to employer compliance and the prevention of claims fraud.
(3) Recommend any statutory changes necessary to improve or enhance the Industrial Commission’s efforts and effectiveness in securing employer compliance with statutory requirements related to workers’ compensation insurance coverage and to the prevention and detection of fraudulent workers’ compensation claims.
(4) Study any other matter related to the integrity of the workers’ compensation system that the Committee deems necessary to accomplish its purpose.
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