HB 2272 -- SECOND INJURY FUND

SPONSOR:  Fisher (125)

COMMITTEE ACTION:  Voted "do pass" by the Special Committee on
Workforce Development and Workplace Safety by a vote of 7 to 4.

This bill 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 total amount of the annual surcharge
imposed in the year of the advance.

The bill 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.  The funding
of both the Workers' Compensation Fund and the Second Injury Fund
will be computed and assessed based on a fiscal year rather than
a calendar year.

The bill contains an emergency clause for the provisions
regarding the advancement of funds from the Workers' Compensation
Fund to the Second Injury Fund.

FISCAL NOTE:  No impact on state funds in FY 2011, FY 2012, and
FY 2013.

PROPONENTS:  Supporters say that the bill provides the Division
of Employment Security with additional moneys in order to more
expediently settle claims against the Second Injury Fund.  The
provision requiring the surcharge to be the sole funding source
for the Second Injury Fund is a proactive attempt to preclude any
judicial ruling requiring general revenue to be deposited into
the fund.  Some supporters objected to the funding source
provision.

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

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:13 pm