HCS HB 2059 -- WORKERS' COMPENSATION

SPONSOR:  Fisher (125)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Workforce Development and Workplace Safety by a vote of 9 to 3.

This substitute changes the laws regarding workers' compensation
and the Second Injury Fund.  In its main provisions, the
substitute:

(1)  Prohibits claims for permanent partial disability for
injuries occurring on or after August 28, 2010, from being made
against the Second Injury Fund with certain exceptions;

(2)  Prohibits any compromise settlement paid by the fund from
exceeding $60,000 beginning August 28, 2010;

(3)  Allows the Director of the Division of Workers' Compensation
within the Department of Labor and Industrial Relations to
advance moneys from the Workers' Compensation Fund to the Second
Injury Fund and requires the advance to be repaid no later than
December 31 of the fifth year following the advance.  The
outstanding total of moneys advanced from the Workers'
Compensation Fund to the Second Injury Fund cannot exceed 33 1/3%
of the amount of the total amount of the annual surcharge imposed
in the year of the advance;

(4)  Specifies that the Second Injury Fund is to be funded solely
by the annual surcharge imposed upon each workers' compensation
policyholder and self-insured employer; and

(5)  Establishes the Missouri State Workers' Compensation Council
and allows the Governor to enforce the provisions regarding the
council by an executive order.  The 11-member council will
consist of three members appointed by the Governor, four members
appointed by the Speaker of the House of Representatives, and
four members appointed by the President Pro Tem of the Senate.
The council is to report annually by January 15 to the Governor
and the General Assembly its recommendations for needed
legislation, the status of workers' compensation insurance, the
projected maintenance requirements for the solvency of the Second
Injury Fund, and the adequacy of the Workers' Compensation Law.
The division will provide the council with staffing assistance,
access to the division's records, employee testimony, and
recommendations on needed legislation and rules.  The council is
authorized, except if prohibited by a concurrent resolution of
the General Assembly, to commission an outside study of the
solvency, adequacy, and staffing and operational efficiency of
the Missouri workers' compensation system.  The study must be
conducted every five years with the first study in Fiscal Year
2011.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2011,
FY 2012, and FY 2013.  Estimated Income on Other State Funds of
Unknown greater than $530,000 to $2,760,000 in FY 2011, Unknown
greater than $530,000 to $2,760,000 in FY 2012, and Unknown
greater than $1,015,602 to $2,760,000 in FY 2013.

PROPONENTS:  Supporters say that they support the bill if the
surcharge, currently capped at 3%, on workers' compensation
insurance premiums is not increased.  The establishment of the
council is of vital importance regarding the adequacy, staffing,
and overall operation of the Missouri workers' compensation
system.

Testifying for the bill were Representative Fisher (125);
Associated Industries of Missouri; Missouri AFL-CIO; John Boyd,
AFL-CIO; Missouri Chamber of Commerce and Industry; National
Federation of Independent Business; Missouri Self Insurers
Association; Missouri Restaurant Association; Associated Builders
and Contractors; United Steelworkers District 11; and Missouri
Merchants and Manufacturers Association.

OPPONENTS:  Those who oppose the bill say that the solvency of
the Second Injury Fund cannot be restored without an increase in
the surcharge on workers' compensation insurance premiums
currently capped at 3%.  The increase of the surcharge is the
least expensive way to restore the solvency of the fund.  Moving
the financial responsibility for settlements and awards for
permanent partial disability from the fund to workers'
compensation insurance will raise employer's premium rates by 6%
to 9%.

Testifying against the bill was Mark Mooreland, Missouri
Association of Trial Attorneys.

OTHERS:  Others testifying on the bill were available to answer
any questions regarding workers' compensation and the Second
Injury Fund.

Testifying on the bill was Department of Labor and Industrial
Relations.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:12 pm