HCS HB 1397 -- WORKERS' COMPENSATION

SPONSOR:  Hunter (Wilson, 130)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Workforce
Development and Workplace Safety by a vote of 9 to 6.

This substitute makes changes to the laws regarding workers'
compensation.  The substitute:

(1)  Requires that any member appointed or serving on the Labor
and Industrial Relations Commission receive Senate confirmation
within 30 days after the Senate convenes for regular session or
immediately resign from the commission;

(2)  Redefines "accident" to mean a specific, identifiable,
traumatic event during a single work shift;

(3)  Defines "dominant factor" to mean the accident is the
prevailing factor in relation to any other factors contributing
to the resulting medical condition;

(4)  Requires that an accident injury be compensable only if the
accident was the dominant factor in causing the resulting medical
condition;

(5)  Codifies that Missouri does not apply the Positional Risk
Analysis or Positional Risk Doctrine;

(6)  Excludes as compensable any personal health condition
manifested during employment in which the accident was not the
dominant factor resulting in the need for medical treatment;

(7)  Excludes as compensable an injury resulting directly or
indirectly from idiopathic causes;

(8)  Requires that a cardiovascular, pulmonary, respiratory, or
other disease or cerebrovascular accident or myocardial
infraction suffered by a worker is an injury only if the accident
is the dominant factor in causing the resulting medical
condition;

(9)  Excludes as compensable any aggravation of a pre-existing
condition, except that the injury causes increased permanent
disability;

(10)  Excludes as compensable an injury sustained in a company
vehicle while in route to or from work;

(11)  Requires that an occupational disease be compensable only
if occupational exposure was the dominant factor resulting in the
condition or disability, rather than a substantial factor;

(12)  Requires that if the exposure to repetitive motion which is
found to cause the injury is for a period of less than three
months and exposure to repetitive motion with a prior employer
was the dominant factor in causing the injury, the prior employer
is liable for the occupational disease;

(13)  Requires that a voluntary settlement be approved as long as
the employee is not coerced or subjected to fraud and understands
the terms of the agreement;

(14)  Requires that noncompliance with a temporary or partial
award of compensation may result in the doubling of the amount of
the award;

(15)  Allows an employee to opt out of workers' compensation
benefits for religious reasons, provided the employee signs a
waiver agreeing not to take future civil action against the
employer;

(16)  Provides for maximum limits on attorney fees for services
on behalf of an employee and that the fees are approved by the
administrative law judge;

(17)  Requires that an attorney found to be in violation of the
maximum fee provisions make restitution of any excess fees
charged plus interest;

(18)  Requires that the Labor and Industrial Relations Commission
and all officials within the Division of Employment Security
apply an impartial standard of review when weighing evidence and
resolving factual conflicts; and

(19)  Increases from $500 to $1,000 the maximum amount of medical
costs paid by the employer for an injury to an employee which
cannot result in an adjustment of the employer's experience
rating.

The substitute creates the Administrative Law Judge
Qualifications Advisory Committee.  The committee is charged with
the evaluation of an administrative law judge's conduct,
performance, and productivity.  The committee is required to make
recommendations to the Governor for the retention, suspension,
removal, or additional training and education of administrative
law judges.  The substitute specifies requirements for the
appointment, qualification, and terms of committee members.

The substitute also specifies the testing, term limits,
appointment, qualifications, work hours, continuing education
requirements, and evaluation of administrative law judges.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the costs associated with
workers' compensation insurance are a deterrent to business
expansion, location, and survival in Missouri.  The liberal
interpretation of a compensable injury, administrative law judge
awards, attorney fees, and unnecessary attorney involvement in
claim settlements are cost drivers for employers' insurance
costs.  A simple system, designed to pay for an injured
employee's medical costs and time lost from work while preserving
the employee's job, is out of control.

Testifying for the bill were Representative Wilson (130);
Contract Freighters, Incorporated; Missouri Chamber of Commerce
and Industry; Associated Industries of Missouri; National
Federation of Independent Business; Missouri Insurance Coalition;
Ripley County Colonial Home, Incorporated; Associated Builders
and Contractors, Heart of America Chapter; Missouri Retailers
Association; Missouri Grocers Association; Missouri Self-Insurers
Association; and American Insurance Association.

OPPONENTS:  Those who oppose the bill say that an attorney's
assistance is a fundamental right of an employee, and associated
fees are not responsible for the cost increases in workers'
compensation insurance.  Increased insurance costs are due to
increased medical costs and the downturn of the national economy.
Administrative law judges being subject to review by the
legislative branch of government is  contradictory to an employee
receiving a fair and impartial judgment and the separation of
powers required in the Constitution.

Testifying against the bill were Missouri Association of Trial
Attorneys; Missouri Laborers; United Auto Workers; Carl Mueller;
Truman E. Allen; Missouri AFL-CIO; American Federation of State,
County, and Municipal Employees; Carpenters' District Council of
Kansas City; Carpenters' District Council of Greater St. Louis;
and Heavy Constructors Association.

Roland Tackett, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am