An Act To Enhance Cooperation between the Workers Compensation Board's Abuse Investigation Unit and Other State Agencies and To Ensure Equal Application of the Requirement To Obtain Coverage
Maine Legislature, Session 124, LD 1528
Committee: Labor
Amends: 39-A MRSA §153

Legislative Document 
No. 1528 
S.P.586 
In Senate, December 17, 2009 
An Act To Enhance Cooperation between the Workers' 
Compensation Board's Abuse Investigation Unit and Other State 
Agencies and To Ensure Equal Application of the Requirement To 
Obtain Coverage 
Reported by Senator JACKSON of Aroostook for the Workers' Compensation Board 
pursuant to the Maine Revised Statutes, Title 39-A, section 152, subsection 11. 
Received by the Secretary of the Senate on December 17,2009. Referred to the Committee 
on Labor pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 218. 
Printed on recycled paper 
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JOY J. O'BRIEN 
Secretary of the Senate 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 39-A MRSA §153, sub-§5,~, as enacted by PL 1991, c. 885, Pt. A, §8 
and affected by § §9 to 11; is amended to read: 
B. 
The unit shall, at the direction of the board, investigate all complaints or 
allegations offI'aud, illegal or improper conduct or violation of this Act or rules of the 
board relating to workers' compensation insurance, benefits or programs, including 
those acts by employers, employees or insurers. All records, correspondence and 
repOlis of investigation in connection with actual or alleged fraud, illegal or improper 
conduct or violation of this Act or rules of the board and all records, correspondence 
and repOlis of criminal prosecution or civil action are confidential. The confidential 
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nature of any such record, correspondence or report does not limit or affect the use of 
those materials in any prosecution or action or prevent the board, upon request, from 
providing information to another state agency for use by the agency in enforcing laws 
and rules. 
Sec. 2. 39-A MRS A §324, Sf b-§3, as amended by PL 2003, c. 344, Pt. D, §28, is 
further amended to read: 
3. Failure to secure payment. If any employer who is required to secure the 
payment to that employer's employees of the compensation provided for by this Act fails 
to do so, the employer is subject to the penalties set out in paragraphs A, Band C. The 
failure of any employer to procure insurance coverage for the-payment of compensation 
and other benefits to the employer's employees in compliance with sections 401 and 403 
constitutes a failure to secure payment of compensation within the meaning of this 
subsection. 
A. The employer is guilty of a Class D crime. 
B. The employer is liable to pay a civil penalty of up to $10,000 or an amount equal 
to 108% of the premium, calculated using Maine Employers' Mutual Ins~rance 
Company's standard discounted standard premium, that should have been paid during 
the period the employer failed to secure coverage, whichever is larger, payable to the 
Employment Rehabilitation Fund. 
C. 
The employer, if organized as a corporation, is subject to administrative 
dissolution as provided in Title 13-C, section 1421 or revocation of its authority to do 
business in this State as provided in Title 13-C, section 1532. The employer, if 
organized as a domestic limited liability company, is subject to administrative 
dissolution as provided in Title 31, section 608-B. The employer, if licensed, 
certified, registered or regulated by any board authorized by Title 5, section 12004-A 
or whose license may be revoked or suspended by proceedings in the District Couli 
or by the Secretary of State, is subject to revocation or suspension of the license, 
celiification or registration. 
Prosecution under paragraph A does not preclude action under paragraph B or C. 
If the employer is a corporation, partnership, limited liability company, professional 
corporation or any other legal business entity recognized under the laws of the State, any 
agent of the corporation or legal business entity having primary responsibility for 
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obtaining insurance coverage is liable for punishment under this section. Criminal 
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liability must be determined in conformity with Title 17-A, sections 60 and 61. 
.. _SUMMARY. 
This bill clarifies that the Workers' Compensation Board's abuse investigation unit 
may share information with other state agencies to enhance interagency eff0l1s to ensure 
compliance with their respective laws and rules. 
This bill also ensures that the coverage penalties in the Maine Workers' 
Compensation Act of 1992 are applied in the same manner to all business entities.