Page:United States Statutes at Large Volume 98 Part 2.djvu/492

 98 STAT. 1652 33 USC 909.

PUBLIC LAW 98-426—SEPT. 28, 1984

injured employee, or his dependents pursuant to section 9 if the injury results in death, shall be punished by a fine not to exceed $10,000, by imprisonment not to exceed five years, or by both.". SECURITY FOR COMPENSATION

33 USC 932.

SEC. 20. Section 32(a)(2) is amended by inserting "based on the employer's financial condition, the employer's previous record of payments, and other relevant factors," after "in an amount determined by the commission,". COMPENSATION FOR INJURIES WHERE THIRD PERSONS ARE LIABLE

33 USC 933.

33 USC 944.

SEC. 21. (a) Section 33(b) is amended to read as follows: "(b) Acceptance of compensation under an award in a compensation order filed by the deputy commissioner, an administrative law judge, or the Board shall operate as an assignment to the employer of all rights of the person entitled to compensation to recover damages against such third person unless such person shall commence an action against such third person within six months after such acceptance. If the employer fails to commence an action against such third person within ninety days after the cause of action is assigned under this section, the right to bring such action shall revert to the person entitled to compensation. For the purpose of this subsection, the term 'award' with respect to a compensation order means a formal order issued by the deputy commissioner, an administrative law judge, or Board.". (b) Section 33(e)(2) is amended by striking out ", less one-fifth of such excess which shall belong to the employer". (c) Section 33(f) is amended— (1) by inserting "net" before "amount recovered"; and (2) by adding at the end thereof the following: "Such net amount shall be equal to the actual amount recovered less the expenses reasonably incurred by such person in respect to such proceedings (including reasonable attorneys' fees).". (d) Section 33(g) is amended to read as follows: "(g)(1) If the person entitled to compensation (or the person's representative) enters into a settlement with a third person referred to in subsection (a) for an amount less than the compensation to which the person (or the person's representative) would be entitled under this Act, the employer shall be liable for compensation as determined under subsection (f) only if written approval of the settlement is obtained from the employer and the employer's carrier, before the settlement is executed, and by the person entitled to compensation (or the person's representative). The approval shall be made on a form provided by the Secretary and shall be filed in the office of the deputy commissioner within thirty days after the settlement is entered into. "(2) If no written approval of the settlement is obtained and filed as required by paragraph (1), or if the employee fails to notify the employer of any settlement obtained from or judgment rendered against a third person, all rights to compensation and medical benefits under this Act shall be terminated, regardless of whether the employer or the employer's insurer has made payments or acknowledged entitlement to benefits under this Act. "(3) Any payments by the special fund established under section 44 shall be a lien upon the proceeds of any settlement obtained from

�