GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 516

Short Title:  Voc. Rehab. Subrogation.	(Public)
─────────────────────────────────────── 
Sponsors: Senator Ezzell.
─────────────────────────────────────── 
Referred to:  Human Resources.
─────────────────────────────────────── 

March 20, 1989

A BILL TO BE ENTITLED
AN ACT TO GRANT SUBROGATION RIGHTS AND PENALTIES FOR WITHHOLDING INFORMATION TO THE DEPARTMENT OF HUMAN RESOURCES, DIVISION OF VOCATIONAL REHABILITATION.
The General Assembly of North Carolina enacts:
Section 1.  Article 59 of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143-547.  Subrogation rights; withholding of information a misdemeanor.
(a)	Notwithstanding any other provisions of law, to the extent of payments under this Article, the State Vocational Rehabilitation program shall be subrogated to all rights of recovery, contractual or otherwise, of the beneficiary of the assistance, or his personal representative, his heirs, or the administrator or executor of his estate, against any person.  The United States and the State of North Carolina shall be entitled to shares in each net recovery under this section and shall be promptly paid.  Their proportionate shares shall be determined in accordance with the required matching formula as specified in federal regulations that were in effect at the time the services were provided.
(b)	In furnishing a person rehabilitation services, including medical case services under this Chapter, the Division of Vocational Rehabilitation Services is subrogated to the person's right of recovery from:
(1)	Personal insurance;
(2)	Worker's Compensation;
(3)	Any other person or personal injury caused by the other person's negligence or wrongdoing; or
(4)	Any other source.
(c)	The Division of Vocational Rehabilitation Services' right to subrogation is limited to the cost of the rehabilitation services provided by or through the Division for which a financial needs test is a condition of the service provisions.  Those services that are provided without a financial needs test are excluded from these subrogation rights.
(d)	The Division of Vocational Rehabilitation Services may totally or partially waive subrogation rights when the Division finds that enforcement would tend to defeat the client's process of rehabilitation or when client assets can be used to offset additional Division costs.
(e)	The Division of Vocational Rehabilitation Services may adopt rules for the enforcement of its rights of subrogation.
(f)	It is a misdemeanor for a person seeking or having obtained assistance under this Part for himself or another who willfully fails to disclose to the Division of Vocational Rehabilitation Services or its attorney the identity of any person or organization against whom the recipient of assistance has a right of recovery, contractual or otherwise is guilty of a general misdemeanor."
Sec. 2.  This act shall become effective October 1, 1989, and applies to recoveries granted on or after that date.