NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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F I S C A L   I M P A C T   R E P O R T

 

 

SPONSOR:

Papen

 

DATE TYPED:

3/05/03

 

HB

 

 

SHORT TITLE:

Workers’ Comp for State Defense Force

 

SB

739/aSCORC

 

 

ANALYST:

Collard

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

Responses Received From

Workers’ Compensation Administration

Department of Military Affairs

 

SUMMARY

 

     Synopsis of SCORC Amendment

 

The Senate Corporations and Transportation Committee removes the section of the bill pertaining to state-ordered militia “traveling directly to or from that duty,” as discussed below.

 

     Synopsis of Original Bill

 

Senate Bill 739 extends workers’ compensation benefits to members of the state defense force when the members are on “state-ordered militia duty” or are traveling “to or from that duty.”  The “employer” under state law would be the Department of Military Affairs. 

 

OTHER SUBSTANTIVE ISSUES

 

The Workers’ Compensation Advisory Council tabled this bill at the last meeting, but the council is anticipated to endorse it at the next meeting on March 13, 2003.

 

     Significant Issues

 

This bill is similar to Section 20-5-12 before it was repealed by Laws 1993, Chapter 193, Section 14.

FISCAL IMPLICATIONS

 

There is no appropriation or significant fiscal impact associated with this bill. 

 

ADMINISTRATIVE IMPLICATIONS

 

The Department of Military Affairs indicates this bill will increase state defense force efficiency, recruitment and membership because members serving in an authorized duty status would have confidence of insurance coverage if injured on the job.  The department also indicates a small increase in the responsibility of the administration for workers’ compensation claims.

 

The Workers’ Compensation Administration indicates that the coverage for the state defense force is limited, so the likelihood of significant administrative impacts is small.

 

TECHNICAL ISSUES

 

The Department of Military Affairs has spoken with the sponsor and notes on page 1, lines 19 and 20, “or is traveling directly to or from that duty” should be deleted.

 

OTHER SUBSTANTIVE ISSUES

 

The Department of Military Affairs indicates this bill would provide for Worker’s Compensation coverage for state defense force members who could be injured when activated by the adjutant general or the governor. The state defense force has not been placed on state-ordered militia duty for over 20 years. There are currently 85 state defense force members; they average 52.5 years of age. The department also notes there is no history of state-ordered militia duty, therefore it is difficult to project workers’ compensation claims. However, assuming 85 state defense force members were activated on state-ordered militia duty for an entire year, the department would expect five or six workers’ compensation claims for that period.  The Department of Military Affairs supports enactment of this legislation.

 

The Workers’ Compensation Advisory Council has had a process in place for several years for the review of proposed legislation affecting the workers’ compensation system, pursuant to its statutory mandate.  The prior council had a series of public meetings during the summer of 2002 where legislative proposals for this session were discussed.  At the council’s request, proposals involving changes to workers' compensation benefits were analyzed for their costs by the Workers' Compensation Administration research staff, the National Council on Compensation Insurance and New Mexico Mutual Casualty Company.  This proposal has never been submitted to or reviewed by either the former or current Workers’ Compensation Advisory Council.  It is the position of the current Workers’ Compensation Advisory Council that, at the present time, it opposes this bill.  The bill will likely be reviewed on February 26.

 

KBC/njw:sb