SB 145 — AN ACT TO AMEND TITLE 19 OF THE DELAWARE CODE RELATING TO WORKERS' COMPENSATION PAYMENTS.

The fine shall be payable to the State Treasurer.

(b) Whoever in this State:

State does any of the following shall be fined not less than $100 nor more than $1,000 or imprisoned for not more than 90 days, or both.

(1) Acts or assumes to act as an agent in any capacity whatsoever for any insurance corporation, mutual association or company or interinsurance exchange, which is not authorized to do business in this State, or, if such authority to do business in this State has been suspended, so acts or assumes to act while such suspension is in force;

force.

(2) Neglects or refuses to comply with any obligatory provisions of this section;

or section.

(3) Wilfully Willfully makes any false or fraudulent statement of the business or condition of any such insurance carrier or false or fraudulent return, return.

shall be fined not less than $100 nor more than $1,000 or imprisoned for not more than 90 days, or both.

(c) Fines shall be assessed by the Industrial Accident Board after the insurance corporation, mutual association or company, interinsurance exchange, or self-insurer is given notice and a hearing on the violation.

Fines shall be payable to the State of Delaware and mailed to the Department of Labor, Division of Industrial Affairs.

(d) This section shall not apply to or be construed to limit the penalties set forth in, § 2374 of this title.

§ 2391.

Taxes on premiums of insurance carriers and payrolls of self-insurers.

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05/14/2025 08:45 AM (b) Every employer carrying the employer’s own risk, and thereby insuring the employer’s self under this chapter, shall annually on or before January 30 report under oath to the Department the total amount of the employer’s payroll for the preceding calendar year, classified in accordance with classifications approved by the Department for the purpose of fixing compensation rates.

The Department may verify such classifications and such statement of payroll by inspection and audit at the expense of the employer, and such verification shall be made by the rating bureau or association provided for in § 2607 of Title 18.

The charges to self-insurers shall be the same charges which other insurance carriers are required to pay under this chapter.

The Department shall assess against such payroll a tax computed by taking 4% of the amount of premium payable upon the payroll so ascertained in accordance with the classifications and premium rates approved by the Department for insurance against liability under this chapter.

No employer shall become or continue a self-insurer under this chapter, except upon the payment of the tax for the previous calendar year.

The moneys so assessed against and paid by insurers who carry their own risks shall be paid to the Secretary of Finance.

Department of Labor, Division of Industrial Affairs.

Such sums shall be part of the General Fund of the State.

§ 2392.

Assessments for administrative expenses on insurance carriers.

(b) Semi-annually, on or before September 30 and March 31, every insurance carrier, insuring employees who are or may be liable under this chapter to pay for compensation for personal injuries to or death of their employees, shall report, under oath, or, in the case of a corporation, verified by the affidavit of its president and secretary or other chief officers or agents, to the Secretary of Finance, Department, the amount of all compensation payments and awards actually paid by said carrier during the preceding calendar year, excluding payments made under §2395 of this title and reimbursements received under § 2396 of this title.

(c) The Division of Industrial Affairs semi-annually as soon as practicable after January 1, 1996 and July 1 shall ascertain and report to the Secretary of Finance the total amount of the following expenses:

(1) 100% of the expenses of the Office of Workers’ Compensation, including the Industrial Accident Board;

(2) 66.6% 100% of all expenses of the inspection function of the Division of Industrial Affairs;

(3) 66.6% 100% of all expenses of the safety function of the Division of Industrial Affairs;

and § 2395.

Workers’ Compensation Fund;

payments by insurance carriers.

(b) Such sums shall be paid by the Department to the State Treasurer, to be deposited in a special account known as “Workers’ Compensation Fund.” Such sums shall not be a part of the General Fund of the State.

Any balance remaining in such special account at the end of any fiscal year shall not revert to the General Fund.

SYNOPSIS This Act does the following:

(1) Updates the Workers’ Compensation Act to reflect current practices and technology including enabling workers’ compensations payments to be by made by direct deposit.

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05/14/2025 08:45 AM (2) Allows the Office of Workers’ Compensation to increase the reimbursement percentage of activities from 66.6% to 100%.

This ensures that the inspection and safety functions of the Division of Industrial Affairs are fully covered as they are partially covered right now.

Insurance carriers pay the assessment imposed by this section.

The annual budget process provides caps or spend authorities on these appropriated special funds on an annual basis.

This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

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