Session of 1998
By Representative Shore
            9             AN ACT concerning workers compensation relating to lump-sum settle-
10             ments; amending K.S.A. 1997 Supp. 44-514 and 44-531 and repealing
11             the existing sections.
13       Be it enacted by the Legislature of the State of Kansas:
14           Section 1. K.S.A. 1997 Supp. 44-514 is hereby amended to read as
15       follows: 44-514. (a) Except as provided in subsection (b), K.S.A 23-4,146
16       or the income withholding act and amendments thereto, no claim for
17       compensation, or compensation agreed upon, awarded, adjudged, or paid,
18       shall be assignable or subject to levy, execution, attachment, garnishment,
19       or any other remedy or procedure for the recovery or collection of a debt,
20       and this exemption cannot be waived.
21           (b) Claims for compensation, or compensation agreed upon, ad-
22       judged or paid, which are paid to a worker on a weekly basis or by lump
23       sum shall be subject to enforcement of an order for support by means of
24       voluntary or involuntary assignment of a portion of the compensation.
25           (1) Any involuntary assignment shall be obtained by motion filed
26       within the case which is the basis of the existing order of support.
27           (A) Any motion seeking an involuntary assignment of compensation
28       shall be served on the claimant and the claimant's counsel to the workers
29       compensation claim, if known, the motion shall set forth:
30           (i) The amount of the current support order to be enforced;
31           (ii) the amount of any arrearage alleged to be owed under the support
32       order;
33           (iii) the identity of the payer of the compensation to the claimant, if
34       known; and
35           (iv) whether the assignment requested seeks to attach compensation
36       for current support or arrearages or both.
37           (B) Motions for involuntary assignments of compensation shall be
38       granted. The relief granted for:
39           (i) Current support shall be collectible from benefits paid on a weekly
40       basis but shall not exceed 25% of the workers gross weekly compensation
41       excluding any medical compensation and rehabilitation costs paid directly
42       to providers.
43           (ii) Past due support shall be collectible from lump-sum settlements,

HB 2932


  1       judgments or awards but shall not exceed 40% of a lump sum or any
  2       subsequent installment payments as provided in subsection (c) of K.S.A.
  3       44-531, and amendments thereto, excluding any medical compensation
  4       and rehabilitation costs paid directly to providers.
  5           (2) In any proceeding under this subsection, the court may also con-
  6       sider the modification of the existing support order upon proper notice
  7       to the other interested parties.
  8           (3) Any order of involuntary assignment of compensation shall be
  9       served upon the payer of compensation and shall set forth the:
10           (A) Amount of the current support order;
11           (B) amount of the arrearage owed, if any;
12           (C) applicable percentage limitations;
13           (D) name and address of the payee to whom assigned sums shall be
14       disbursed by the payer; and
15           (E) date the assignment is to take effect and the conditions for ter-
16       mination of the assignment.
17           (4) For the purposes of this section, ``order for support'' means any
18       order of any Kansas court, authorized by law to issue such an order, which
19       provides for the payment of funds for the support of a child or for main-
20       tenance of a spouse or ex-spouse, and includes such an order which pro-
21       vides for payment of an arrearage accrued under a previously existing
22       order and reimbursement orders, including but not limited to, an order
23       established pursuant to K.S.A. 39-718a and amendments thereto; K.S.A.
24       39-718b and amendments thereto; or an order established pursuant to
25       the uniform interstate family support act and amendments thereto.
26           (5) For all purposes under this section, each obligation to pay child
27       support or order for child support shall be satisfied prior to satisfaction
28       of any obligation to pay or order for maintenance of a spouse or ex-spouse.
29           Sec. 2. K.S.A. 1997 Supp. 44-531 is hereby amended to read as fol-
30       lows: 44-531. (a) Where all parties agree to the payment of all or any part
31       of compensation due under the workers compensation act or under any
32       award or judgment, and where it has been determined at a hearing before
33       the administrative law judge that it is for the best interest of the injured
34       employee or the dependents of a deceased employee, or that it will avoid
35       undue expense, litigation or hardship to any party or parties, the admin-
36       istrative law judge may permit the employer to redeem all or any part of
37       the employer's liability under the workers compensation act by the pay-
38       ment of compensation in a lump sum, except that no agreement for pay-
39       ment of compensation in a lump sum shall be approved for nine months
40       after an employee has returned to work in cases in which the employee,
41       who would otherwise be entitled to compensation for work disability, is
42       not entitled to work disability compensation because of being returned
43       to work at a comparable wage by the employer who employed the worker

HB 2932


  1       at the time of the injury giving rise to the claim being settled. The em-
  2       ployer shall be entitled to an 8% discount on the amount of any such
  3       lump-sum payment that is not yet due at the time of the award. Upon
  4       paying such lump sum the employer shall be released and discharged of
  5       and from all liability under the workers compensation act for that portion
  6       of the employer's liability redeemed under this section.
  7           (b) No lump-sum awards, unless agreed to by the parties, shall be
  8       rendered under the workers compensation act except: (1) As provided in
  9       subsection (a) of this section, (2) in cases of remarriage of a surviving
10       spouse as provided in K.S.A. 44-510b and amendments thereto, (3) in
11       cases involving compensation due the employee at the time the award is
12       rendered as provided in K.S.A. 44-525 and amendments thereto and in
13       cases of past due compensation as provided in K.S.A. 44-529 and amend-
14       ments thereto.
15           (c) Subject to the provisions of subsection (a), lump-sum awards
16       which have been agreed to by all parties shall be payable as follows:
17           (1) The amount equal to 50% of the total sum shall be paid when due
18       in accordance with subsection (a);
19           (2) the remaining 50% of the award shall be paid over a period of 10
20       years with interest at a rate to be determined by agreement of the parties.
21           Sec. 3. K.S.A. 1997 Supp. 44-514 and 44-531 are hereby repealed.
22           Sec. 4. This act shall take effect and be in force from and after its
23       publication in the statute book.