NOTE: As provided in LFC policy, this report is intended 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 in any other situation.
The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.
Only the most recent FIR version, excluding attachments, is available on the Internet/Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.
| SPONSOR: | Kidd | DATE TYPED: | 2/10/99 | HB | |||
| SHORT TITLE: | Workers' Comp Benefits & Fees | SB | 148 | ||||
| ANALYST: | Esquibel | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| $ (120.0) | $ (120.0) | Recurring | GF | |
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates/Conflicts with/Companion to/Relates to
SOURCES OF INFORMATION
Workers' Compensation Administration (WCA)
Public Regulation Commission (PRC)
SUMMARY
Synopsis of Bill
The bill proposes changing the maximum compensation rate for injured workers from 85 percent of the state average weekly wage to 100 percent of the state average weekly wage; raising the death benefit (funeral expenses) from $3.0 to $7.5; and eliminating a $5.00 filing fee for proof of insurance coverage.
Significant Issues
The bill was introduced at the request of the Advisory Council on Workers' Compensation and Occupational Disease Disablement in an effort to provide increases in benefits to workers under certain circumstances and to eliminate a fee which is not administratively efficient to collect.
The WCA indicates the bill would result in increased benefits for those workers earning more than 85 percent of the state average weekly wage, and would result in the funeral benefit being paid more closely to the actual market cost of a funeral.
FISCAL IMPLICATIONS
The filing fee the bill proposes to repeal generates approximately $120.0 into the general fund per year.
The bill could lead to an increase in workers' compensation premiums paid to the General Services Department's Risk Management Division.
The WCA indicates that significant resources are invested in processing filing fee checks which would be better spent in bringing employers subject to the Act into compliance with the mandatory workers' compensation insurance requirement.
OTHER SUBSTANTIVE ISSUES
The WCA indicates that if the bill is not passed, workers' benefits will continue to be unfairly restricted for more highly paid workers, and a portion of funeral costs will continue to be borne by the worker.
RAE/gm