SB 40 - Workers' Compensation Reform

• Repeals the second injury fund upon satisfaction of all claims and transfers remaining balance to general fund

• Increases insurer service fees from 1.82 percent to 2.5 percent of direct premium income for workers' compensation insurance

• Establishes independent contractor exclusion from workers' compensation coverage with specific criteria including federal tax ID, express contract, liability insurance, and freedom from direction and control

• Increases civil penalties for employer noncompliance including up to three times the insurance premium for underinsuring or misclassifying employees

• Changes compensation payment deadlines from 14 days to 21 days and requires employer payment or controversion of medical bills within 30 days, with 25 percent penalty for late payment