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Senate approves tighter process for structured workers—comp settlements, barring later claims in some cases
Summary
After extended debate, the Utah Senate adopted an amendment requiring Labor Commission counseling and approval for transfers of workers— compensation payments and passed SB109 as amended; supporters said it protects injured workers from predatory buyers, opponents warned it could bar relief later.
The Utah Senate on the floor passed Senate Bill 109 as amended, approving a process under which workers can enter structured-settlement transfers only after counseling and review by the Labor Commission and, in the adopted amendment, waiving the right to later equitable relief in approved cases.
Senator Maine, sponsor and floor manager, framed the bill as a response to situations where injured workers who accepted buyout offers from factoring companies later found themselves destitute. He said the amendment creates a counseling and approval process so recipients "go into [the transfer] eyes wide open" and the Labor Commission can "review it" before approving the transfer.
Senator Stevenson, who introduced amendment 3, said the change was negotiated with participants including the workers' compensation fund, the labor commission and business representatives and "puts a structure together to counsel a person and give them alternatives." Stevenson described amendment 3 as the version that contains the counseling language and the additional finality provision: once the commission approves the transfer, "this is final" and the recipient would no longer be able to seek further relief under the statute.
Opponents urged caution. Senator Bell questioned the amendment's effect on equitable relief, calling it a "pretty heavy price to pay" to foreclose future claims. Senator Dean explained that, under Utah Supreme Court precedent, a person could seek additional help if a prior transfer left them destitute, and that amendment 3 would cut off that avenue and shift potential costs to the Employers Reinsurance Fund.
The Senate adopted amendment 3 following floor debate and a division; the body then voted to pass SB109 as amended. The clerk announced final passage with 27 yes votes, 0 nay votes and 2 absent. The bill was referred to the House for further action.
Implementation details in the amendment require the Labor Commission to counsel potential transfer applicants and to approve transfers under the new process; amendment 3 adds language making an approved transfer a final resolution of the claim under the workers' compensation title. The transcript does not specify the precise administrative steps or timelines for commission review beyond those summary descriptions.
The matter will proceed to the House, where sponsors said the amendments and the counseling structure will be available for committee review.
