An Act To Promote Compliance with the Workers' Compensation Laws
Maine Legislature, Session 123, LD 1107
Committee Amendment CA_A_S174 (Senate)
Amends: 39-A MRSA §324, 39-A MRSA §359

COMMITTEE AMENDMENT '',4 " to S.P. 359, L.D. 1107, Bill, "An Act To 
Promote Compliance with the Workers' Compensation Laws" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: ' 
'Sec. 1. 39-A MRSA §324, sub-§2, as enacted by PL 1991, c. 885, Pt. A, §8 and 
affected by §§9 to 11, is amended to read: 
2. Failure to pay within time limits. An employer or insurance carrier who fails to 
pay compensation, as provided in this section, is penalized as follows. 
A. Except as otherwise provided by section 205, if an employer or insurance carrier 
fails to pay compensation as provided in this section, the board shall may assess 
against the employer or insurance carrier a forfeiture fine of up to $200 for each day 
of noncompliance. If the board finds that the employer or insurance carrier was 
prevented from complying with this section because of circumstances beyond its 
control, BO forfeiture a fine may not be assessed. 
(1) 
The forfeiture fine for each day of noncompliance must be divided as 
follows: 
Of each day's forfeiture fine amount, the first $50 is paid to the 
employee to whom compensation is due and the remainder must be paid to the 
board and be credited to the Workers' Compensation Board Administrative Fund. 
(2) If a forfeiture fine is assessed against any employer or insurance carrier under 
this subsection on petition by an employee, the employer or insurance carrier 
shall pay reasonable costs and attorney's fees related to the forfeimre fine, as 
determined by the board, to the employee. 
(3) forfeitures Fines assessed under this subsection may be enforced by the 
Superior Court in the same manner as provided in section 323. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ''A "to S.P. 359, L.D. 1107 
B. Payment of an)' forfeiture a fine assessed under this subsection is not considered 
an element of loss for the purpose of establishing rates for workers' compensation 
insurance. 
f 
Sec. 2. 39-A MRSA §359, sub-§2, as enacted by PL 1991, c. 885, Pt. A, §8 and 
affected by §§9 to 11, is amended to read: 
2. Penalty. In addition to any other penalty assessment permitted under this Act, the 
board may assess civil penalties not to exceed $l(),()()() $25,000 upon finding, after 
hearing, that an employer, insurer or 3rd-party administrator for an employer has engaged 
in a pattern of questionable claims-handling techniques or repeated unreasonably 
contested claims. The board shall certify its findings to the Superintendent of Insurance, 
who shall take appropriate action so as to bring any such practices to a halt. This 
certification by the board is exempt from the provisions of the Maine Administrative 
Procedure Act. The amount of any penalty assessed pursuant to this subsection must be 
directly related to the severity of the pattern of questionable claims-handling techniques 
or repeated unreasonably contested claims. 
All penalties collected pursuant to this 
subsection must be deposited in the General Fund. An insurance carrier's payment of any 
penalty assessed under this section may not be considered an element of loss for the 
purpose of establishing rates for workers' compensation insurance.' 
SUMMARY 
This amendment changes from mandatory to permissive the assessment of a penalty 
by the Workers' Compensation Board against an employer or insurance carrier for failure 
to pay compensation. The amendment increases the maximum penalty for engaging in a 
pattern of questionable claims-handling techniques or repeated unreasonably contested 
claims from $10,000 to $25,000, as opposed to the $100,000 maximum proposed in the 
bill. The amendment also requires that the amount of the penalty be commensurate with 
the severity of the proscribed acts and that penalties collected go to the General Fund. 
Finally, the amendment provides that an insurance carrier's payment of any penalty 
assessed under the Maine Revised Statutes, Title 39-A, section 359 may not be 
considered an element of loss for the purpose of establishing rates for workers' 
compensation insurance. This amendment also makes several technical corrections to 
1 
current law to conform to drafting standards. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/21/07 
~ac::.. 
f 
LD 1107 
LR 1565(02) 
An Act To Promote Compliance with the Workers' Compensation Laws 
Fiscal Note for Bill as Amended by Committee Amendment ''A " 
Committee: Labor 
Fiscal Note Required: Yes 
Fiscal Note 
Undetennined current biennium revenue increase - General Fund 
Undetennined current biennium revenue decrease - Other Special Revenue Funds 
Fiscal Detail and Notes 
Increasing the maximum penalty for engaging in a pattern of questionable claims-handling techniques or repeated 
unreasonably contested claims from $10,000 to $25,000 and directing that penalties collected go to the General Fund 
will increase General Fund revenue and decrease dedicated revenue to the Workers' Compensation Board 
Administrative Fund beginning in fiscal year 2007-08. The amount can not be detennined at this time. 
Changing the assessment of a penalty by the Workers' Compensation Board against an employer or insurance carrier 
for failure to pay compensation from mandatory to pennissive may also reduce the amount of dedicated revenue 
received by the Workers' Compensation Board Administrative Fund beginning in fiscal year 2007-08. The amount 
can not be detennined at this time. 
LR1565(02) - Fiscal Note - Page 1 of 1