An Act To Discourage Abuse and Fraud under the Workers Compensation Laws
Maine Legislature, Session 121, LD 0943
Committee: Labor
Sponsors: SUSLOVIC, BROMLEY, DUPREY, KOFFMAN, SA VIELLO, STRIMLING
Amends: 39-A MRSA §205, 39-A MRSA §360

Legislative Document 
No. 943 
H.P.700 
House of Representatives, February 25, 2003 
An Act To Discourage Abuse and Fraud under the Workers' 
Compensation Laws 
Reference to the Committee on Labor suggested and ordered printed. 
Presented by Representative SUSLOVIC of Portland. 
Cosponsored by Senator BROMLEY of Cumberland and 
17/~ 
1I7.1l/oc~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: DUPREY of Medway, KOFFMAN of Bar Harbor, SA VIELLO of Wilton, 
Senator: STRIMLING of Cumberland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec.t. 39-A MRS A §153, sub-§5, 'A-I is enacted to read: 
A-I. 
The board shall appoint one permanent hearing officer 
to 
the 
abuse 
investigation unit 
to 
hear 
complaints 
or 
allegations brought under section 360 of willful violations 
of this Act, fraud or intentional misrepresentation. 
Sec. 2. 39-A MRSA §205, sub-§6, as enacted by PL 1991, c. 885, 
Pt. A, §8 and affected by §§9 to 11, is amended to read: 
6. 
Interest. 
When weekly compensation is paid pursuant to 
an award, interest on the compensation must be paid at the rate 
of 1Q% 15q,o per annum from the date each payment was due, until 
paid. 
Sec. 3. 39-A MRSA §360, sub-§2, as enacted by PL 1991, c. 885, 
Pt. A, §8 and affected by §§9 to 11, is amended to read: 
2. 
General authority. 
The board may assess, after hearing, 
a civil penalty in an amount not to exceed $lTQQQ $1, 500 for an 
individual and $lQTQQQ $15,000 for a corporation, partnership or 
other legal entity for any willful violation of this Act, fraud 
or intentional misrepresentation. The board may also require that 
person to repay any compensation received through a violation of 
this Act, fraud or intentional misrepresentation or to pay any 
compensation withheld through a violation of this Act, fraud or 
misrepresentation, with interest at the rate of 10% per year. 
Sec. 4. Review by Department of the Attorney General. 
The 
Department of the Attorney General shall conduct a review of the 
insurers in the State writing workers' compensation insurance to 
determine compliance with the Maine Revised Statutes, Title 39-A, 
section 205, subsection 6 requiring that insurers pay interest on 
weekly 
compensation that is paid pursuant to 
an 
award. 
In 
furtherance of Title 39-A, section 153, subsection 5, paragraph E 
the Department of the Attorney General shall work in concert with 
the abuse investigation unit of the Workers' Compensation Board 
to identify insurance companies that willfully fail to comply 
with 
the 
requirements 
of Title 
39-A 
and 
the 
rules 
adopted 
thereunder. 
Upon completion of its review, the Attorney General 
shall initiate any appropriate action, including civil actions 
for recovery of funds or criminal prosecution. 
SUMMARY 
This bill accomplishes the following: 
Page l-LRl066 (1) 
1. 
It directs the Workers 0 
permanent 
hearing 
officer 
to 
intentional 
misrepresentation 
workers' compensation laws. 
Compensation Board to appoint a 
hear 
cases 
alleging 
fraud, 
or 
willful 
violation 
of 
the 
2. 
It increases from $1,000 to $1,500 for an individual and 
from $10,000 to $15,000 for 
a 
corporation or partnership the 
penalties 
that 
may 
be 
imposed 
for 
fraud, 
intentional 
misrepresentation 
or 
a 
willful 
violation 
of 
the 
workers' 
compensation laws. 
3. 
It increases from 10% to 15% the annual rate of interest 
that must be paid on weekly compensation that is paid pursuant to 
an award. 
4:. 
It directs the Department of the Attorney General to 
conduct an audit of all of the insurers in the State writing 
workers' 
compensation insurance to determine how many insurers 
have failed to pay interest on awards required by the Maine 
Revised Statutes, Title 39-A, section 205, subsection 6.