SB196 Alabama 2017 Session

Under existing law, a person who knowingly makes false or fraudulent material statements or representations for the purpose of obtaining workers' compensation benefits for himself or herself or another person is guilty of a Class C felony

This bill would expand the type of activity related to workers' compensation fraud that is subject to criminal penalties, would authorize an award of civil damages for persons injured by an individual's fraudulent workers' compensation claim, would allow the department to immediately terminate compensation payments upon a determination of fraud, and would provide for the repayment of fraudulently obtained workers' compensation benefits with interest to employers and carriers

Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, prohibits a general law whose purpose or effect would be to require a new or increased expenditure of local funds from becoming effective with regard to a local governmental entity without enactment by a 2/3 vote unless: it comes within one of a number of specified exceptions; it is approved by the affected entity; or the Legislature appropriates funds, or provides a local source of revenue, to the entity for the purpose

The purpose or effect of this bill would be to require a new or increased expenditure of local funds within the meaning of the amendment. However, the bill does not require approval of a local governmental entity or enactment by a 2/3 vote to become effective because it comes within one of the specified exceptions contained in the amendment

Relating to workers' compensation; to amend Section 13A-11-124, Code of Alabama 1975, to expand the type of activity related to workers' compensation fraud that is subject to criminal penalties, to authorize an award of civil damages for persons injured by an individual's fraudulent workers' compensation claim; to provide for the termination of compensation payments upon a determination of fraud; to provide for the repayment of fraudulently obtained workers' compensation benefits under certain conditions; and in connection therewith would have as its purpose or effect the requirement of a new or increased expenditure of local funds within the meaning of Amendment 621 of the Constitution of Alabama of 1901, now appearing as Section 111.05 of the Official Recompilation of the Constitution of Alabama of 1901, as amended.