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House Approves Name Change and Claims-Management Authority for Workers' Compensation Fund; Inserts Intent Language
Summary
The House approved HB 213 to rename the Workers' Compensation Fund of Utah to Workers' Compensation Fund and permit limited claims-management activity; members also had intent language placed on the journal to preserve any state claim to brand-equity reimbursement should privatization occur.
On Jan. 25 the Utah House passed House Bill 213, which would change the statutory name of the Workers' Compensation Fund of Utah to Workers' Compensation Fund and permit the quasi-public entity to engage in claims-management work in addition to workers' compensation insurance.
Representative Swallow said the name change removes a perceived competitive advantage and the claims-management provision allows the fund to manage related claims (for example, where a client purchases other insurance types and the fund manages the associated claims) without authorizing the fund to sell other types of insurance.
Floor debate addressed constitutional and liability questions tied to a statutory name change. Representative Yer moved intent language to be spread upon the journal clarifying the legislature’s intent that the name change "shall not diminish the state of Utah’s rights, if any, to claim brand equity reimbursement in the case of the workers' compensation privatization." That intent language was placed on the record after discussion of whether such language is legally binding or merely advisory.
Members voted to pass HB 213 (reported vote announced as 59 yes, 12 no) and the intent language was entered on the journal. Sponsors and supporters said the change is meant to protect state rights and clarify the fund's permissible activities; critics raised concerns that the record of intent might also accentuate potential state liability.
