House subcommittee approves Workers' Compensation cleanup rules and clarifies reimbursement for remainder parties under letters of credit

The House subcommittee approved two amendments proposed by the South Carolina Workers' Compensation Commission, including a cleanup change clarifying how claim filing is described and a procedural amendment allowing a party with a future interest (a 'remainder man') to request reimbursement of funds held by the commission when a self-insurer used an irrevocable letter of credit.

Scott Beck, who identified himself as chairman of the Workers' Compensation Commission, told the committee the first amendment (Document 54.30) was a cleanup item from a prior legislative oversight audit and changes wording to require that "claimant shall file a claim," making explicit what the earlier text implied. He said the change reflects what the regulation always intended.

On Document 54.31 (proposed amendment to regulation 67-15-07), Beck explained the rule adds a clear procedure for a remainder man to seek reimbursement of remaining funds after the commission has ensured compensable claims are paid, aligning letters-of-credit cases with other security methods such as reserve accounts and surety bonds. Beck described existing oversight and periodic audits of self-insured entities' finances and said the commission rarely manages bankrupt self-insured entities but has done so (he cited "Yellow Truck" as a recent example).

Committee members moved and seconded approval; the roll call for Document 54.30 recorded "Document 54 30 is approved with a vote of 3 to 0." The transcript records affirmative roll-call votes for Document 54.31 and the chair concluded approval.

These amendments change regulatory procedures and provide a path for parties with a future interest to request funds once all claims are satisfied; they do not change statutory authority for self-insurance, which Beck said the commission possesses.