Bill Text: NY A00086 | 2017-2018 | General Assembly | Introduced
Bill Title: Provides incentives for productive workers' compensation audits.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - referred to labor [A00086 Detail]
Download: New_York-2017-A00086-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 86 2017-2018 Regular Sessions IN ASSEMBLY (Prefiled) January 4, 2017 ___________ Introduced by M. of A. CAHILL -- read once and referred to the Committee on Labor AN ACT to amend the workers' compensation law, in relation to providing incentives for productive workers' compensation audits The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The workers' compensation law is amended by adding a new 2 section 112-a to read as follows: 3 § 112-a. Audits of employers. 1. (a) Employers in all classes other 4 than the construction class shall be audited not less frequently than 5 biennially and the chair or board may provide for more frequent audits 6 of employers in specified classifications based on factors such as 7 amount of premium, type of business, loss ratios, or other relevant 8 factors. In no event shall employers in the construction class, generat- 9 ing more than the amount of premium required to be experience rated, be 10 audited less frequently than annually. The annual audits required for 11 construction classes shall be a physical, onsite review of original 12 payroll records, employee records, checkbooks, cash book (disbursements 13 and receipts), general ledger, contracts, tax returns including quarter- 14 ly payroll filings, and original certificates of insurance. The audit 15 shall be conducted no more than ninety days after the expiration of a 16 policy period. At the completion of an audit, if requested by the audi- 17 tor, the employer or officer of the corporation and the auditor must 18 print and sign their names on the audit document affirming the accuracy 19 of the information provided therein. As required by section one hundred 20 twelve of this article, employers shall make available all books and 21 records necessary for the payroll verification audit and permit the 22 auditor to make a physical inspection of the employer's operation. If 23 an employer fails to provide reasonable access to all such books and 24 records necessary for a payroll verification audit, including a physical EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01603-01-7A. 86 2 1 inspection of the employer's operation, the employer shall pay an addi- 2 tional premium to the carrier of three times the most recent estimated 3 annual premium. 4 (b) If an employer knowingly understates or knowingly conceals 5 payroll, knowingly misrepresents or knowingly conceals employee duties 6 so as to avoid proper classification for premium calculations, or know- 7 ingly misrepresents or knowingly conceals information pertinent to the 8 computation and application of an experience rating modification factor, 9 said knowing misrepresentations or knowing concealments shall be consid- 10 ered fraudulent practices in violation of applicable provisions of 11 section one hundred fourteen of this article and insurance fraud in 12 violation of applicable provisions of section 176.05 of the penal law. 13 (c) If during the course of an audit conducted under this section, an 14 insurance carrier obtains information indicating a violation of the 15 provisions of paragraph (b) of this subdivision, then the carrier shall 16 report such information to the board. 17 2. This section shall not apply to employers that self-insure or 18 employers that are members of a workers' compensation group self-insured 19 trust. 20 3. For the purposes of this section, "construction class" means the 21 work or occupation described in "Group 3" of subdivision one of section 22 three of this chapter. 23 § 2. This act shall take effect immediately.