South Carolina § 38-73-500 - Merit rating for workers' compensation insurance; credit; testing.

§ 38-73-500. Merit rating for workers' compensation insurance; credit; testing.

(A) For the purpose of uniformity and equality the director or his designee shall approve a system of merit rating for use in the writing of workers' compensation insurance. No system of merit rating except the one so approved may be used.

(B) This system of merit rating shall include a credit of at least five percent for an insured who participates in a program designed to prevent the use of drugs or alcoholic beverages on the job by employees of the insured. The credit must be actuarially sound and filed with the director or his designee. However, if the director determines that a credit of at least five percent is not actuarially sound, the director shall allow and order a credit of less than five percent which is actuarially sound. The director or his designee shall provide for certification of an employer drug prevention program and shall promulgate regulations for the implementation of this subsection including, but not limited to, the establishment of guidelines or a plan defining a qualified employer drug prevention program eligible for the credit which shall be used by the insurer unless the insurer has established its own guidelines or plan. In the establishment of guidelines or a plan by the director or insurer concerning a qualified drug prevention program eligible for the credit, the guidelines or plan shall include the policy statement and employee notification requirement pursuant to Section 41-1-15.

(C) The testing procedure established by the insurer, employer, or his designee, or, approved by the director, must include a provision for random sampling of all persons who receive wages and compensation in any form from the employer. If a second test is administered, the testing procedure may allow for a single sample to be split for use in the first and second tests. Positive test results must be provided in writing to the employee within twenty-four hours of the time the employer receives the test results. Each employer must keep records of each test for up to one year.

HISTORY: Former 1976 Code SECTION 42-5-100 [1936 (39) 1231; 1937 (40) 613; 1942 Code SECTION 7035-76; 1952 Code SECTION 72-410; 1960 (51) 1646; 1962 Code SECTION 72-410] recodified as SECTION 38-73-500 by 1987 Act No. 155, SECTION 1; 1993 Act No. 181, SECTION 783; 1997 Act No. 92, SECTION 1; 2014 Act No. 197 (S.826), SECTION 1, eff June 2, 2014.

Effect of Amendment

2014 Act No. 197, SECTION 1, in subsection (C), substituted "If a second test is administered, the testing procedure may allow for a single sample to be split for use in the first and second tests" for "and must provide for a second test to be administered within thirty minutes of the administration of the first test".