Bill Text: NY S03964 | 2017-2018 | General Assembly | Amended
Bill Title: Provides incentives for productive workers' compensation audits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Engrossed - Dead) 2018-06-20 - COMMITTED TO RULES [S03964 Detail]
Download: New_York-2017-S03964-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 3964--A 2017-2018 Regular Sessions IN SENATE January 31, 2017 ___________ Introduced by Sen. SEWARD -- read twice and ordered printed, and when printed to be committed to the Committee on Labor -- recommitted to the Committee on Labor in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 may 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 of 15 all employers shall be conducted no more than one hundred twenty days 16 after the expiration of a policy period. At the completion of an audit, 17 if requested by the auditor, the employer or officer of the corporation 18 must print and sign their names on the audit document affirming the 19 accuracy of the information provided therein. As required by section one 20 hundred twelve of this article, employers shall make available all books 21 and records necessary for the payroll verification audit and permit the 22 auditor to make a physical inspection of the employer's operation. If EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04820-03-8S. 3964--A 2 1 an employer fails to provide reasonable access to all such books and 2 records necessary for a payroll verification audit, including a physical 3 inspection of the employer's operation, the employer shall pay a 4 surcharge to the carrier of two times the most recent estimated annual 5 premium. 6 (b) Employers that fail to provide reasonable access to the carrier 7 for the purpose of conducting an audit shall be reported to the New York 8 compensation insurance rating board. 9 (c) If an employer knowingly understates or knowingly conceals 10 payroll, knowingly misrepresents or knowingly conceals employee duties 11 so as to avoid proper classification for premium calculations, or know- 12 ingly misrepresents or knowingly conceals information pertinent to the 13 computation and application of an experience rating modification factor, 14 said knowing misrepresentations or knowing concealments shall be consid- 15 ered fraudulent practices in violation of applicable provisions of 16 section one hundred fourteen of this article and insurance fraud in 17 violation of applicable provisions of section 176.05 of the penal law. 18 (d) If during the course of an audit conducted under this section, an 19 insurance carrier obtains information indicating a violation of the 20 provisions of paragraph (c) of this subdivision, then the carrier shall 21 report such information to the board. 22 2. This section shall not apply to employers that self-insure or 23 employers that are members of a workers' compensation group self-insured 24 trust. 25 3. For the purposes of this section, "construction class" means the 26 work or occupation described in "Group 3" of subdivision one of section 27 three of this chapter. 28 § 2. This act shall take effect January 1, 2020.
