HB 2059 -- Workers' Compensation

Sponsor:  Fisher (125)

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

(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 $40,000 beginning August 28, 2010;

(3)  Specifies that, beginning August 28, 2010, claims for
disability will be compensable only if there is a medically
documented pre-existing disability resulting from active military
duty or a pre-existing compensable permanent partial disability
which equals a minimum of 50 weeks of compensation or if a major
extremity injury only, equals a minimum of 15% permanent partial
disability and sustains a subsequent work-related injury together
with a compensable injury which results in permanent total
disability;

(4)  Specifies that in cases where the pre-existing permanent
partial disability is from a medically documented pre-existing
disability as a direct result of military duty or a compensable
pre-existing permanent partial disability together with a
compensable injury from a subsequent work-related injury that
results in permanent total disability, the employer will be
liable only for the costs associated with the injury incurred
while the employee was working for him or her.  The fund will be
responsible for any additional costs associated with the
permanent total disability;

(5)  Specifies that the State Treasurer is to be the custodian of
the fund;

(6)  Requires an employee in cases of recovery against the fund
for permanent total disability to file a claim naming the State
Treasurer as a party and to submit to appropriate vocational
testing, a vocational rehabilitation assessment, and an
independent medical examination.  The results of the testing,
assessment, and examination are admissible in any administrative
or judicial proceeding where the claimant is a party;

(7)  Subjects all awards for permanent total disability or
medical or death benefits to an employee of an uninsured employer
affecting the fund to review and appeal;

(8)  Requires benefits payable to be based on the average weekly
wage calculated under Section 287.250, RSMo, as of the date of
the injury;

(9)  Specifies that the fund will pay fair, reasonable, and
necessary expenses to cure and relieve the effects of the injury
or of an injured worker employed by an uninsured employer.  In
the case of the death of an employee of an uninsured employer,
the fund will pay certain specified expenses.  Any moneys
received by the employee or the employee's dependents through
civil or other action against the uninsured employer may be
recovered for reimbursement of the fund.  The Office of the
Attorney General must bring suit in the county circuit court
against the uninsured employer for reimbursement;

(10)  Specifies that the life payment may be suspended when an
injured employee receives an award for permanent total disability
but by the use of glasses, prosthetic appliance, or physical
rehabilitation, the employee is restored to his or her regular
work or its equivalent.  In these cases, the file will be open
for the remainder of the employee's life and may be reviewed, at
an informal conference at the request of either the employer or
the employee, by the Commission on Labor and Industrial Relations
to decide if resumption of the employee's weekly life payment is
warranted;

(11)  Prohibits compensation from the fund if an employee pursues
settlement under the laws of another state with jurisdiction over
the employee's injury, accident, or occupational disease;

(12)  Specifies that, beginning January 1, 2011, the tax rate for
the funding of the Workers' Compensation Fund will be an annual
rate of not less than 0.5% or more than 2%;

(13)  Allows the Director of the Division of Workers'
Compensation 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;

(14)  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

(15)  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 of Workers' Compensation
will provide the council with staffing assistance, access to the
division's records, employee testimony, and recommendations on
needed legislation and rules.  The council may, except if
prohibited by a concurrent resolution of the General Assembly,
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 to begin in Fiscal Year 2005.

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