SS HS HCS HB 1237, 1409, 1166, 1154 & 1491 -- WORKERS'
COMPENSATION

This bill makes technical and substantive changes to the
workers' compensation laws.  In its main substantive provisions,
the bill:

(1)  Adds limited liability partnerships and companies to the
definition of "employer," and requires that any reference to
"employer" include the employer's group self-insurer;

(2)  Covers under the workers' compensation laws employees
related to partners or sole proprietors within the third degree
of affinity or consanguinity unless the partner or sole
proprietor withdraws such employee from coverage, and lists the
specific ways in which a partner or sole proprietor may withdraw
such related employee from coverage;

(3)  Requires only construction industry contractors to verify
workers' compensation coverage or exemption prior to obtaining a
city or county business license.  Cities and counties will not
have a duty to investigate the validity of such coverage or
exemption;

(4)  Removes members of an employer's family within the third
degree of affinity or consanguinity from the nonapplication of
the workers' compensation laws, and lists the specific ways in
which an employer exempt from coverage as to the employer or a
class of employees may elect coverage and/or cancel such
election of coverage under the workers' compensation laws;

(5)  Makes a second offense of the fraud provisions contained in
sections 287.128 and 287.129, RSMo, a class D felony;

(6)  Transfers current law from section 287.430.2 to its proper
location in section 287.140.8, RSMo;

(7)  Changes the 3-day period for which compensation will not be
paid unless a disability lasts longer than 14 days from the
first 3 "regularly scheduled" work days to the first 3 days or
less of disability "during which the employer is open for the
purpose of operating its business or enterprise";

(8)  Entitles an employer to a dollar-for-dollar credit against
any benefits owed pursuant to section 287.170, RSMo, for the
amount of unemployment compensation paid to an employee and
charged to the employer during the adjudicated or agreed upon
period of temporary total disability;

(9)  Increases the number of weeks compensation will be paid for
permanent partial disability for complete deafness in both ears
and for complete deafness in one ear (the other ear being
normal);

(10)  Removes a party's ability to submit interrogatories to an
opposing party's physician without additional cost;

(11)  Allows an employer and an employee to enter into a
compromise lump sum settlement prorated over the life expectancy
of the injured employee, and clarifies the application of social
security offset regulations and policies.  This is effective
retroactively;

(12)  Allows groups of employers qualified to insure their
liability pursuant to chapters 287 or 537, RSMo, to use a
uniform experience rating plan promulgated by an approved
advisory organization, and requires such groups to develop
experience ratings for their members based upon the plan;

(13)  Limits an entity qualified to group self-insure its
liability pursuant to chapters 287 or 537, RSMo, to a total
discount not exceeding 25% beginning January 1, 1999;

(14)  Makes records submitted pursuant to section 287.280, RSMo,
confidential and not subject to Chapter 610, RSMo, but allows
parties to a workers' compensation case involving the party that
submitted the records to subpoena the records for use in the
case;

(15)  Repeals section 287.337, RSMo, which deals with
construction classification codes and intrastate modification
rates;

(16)  Eliminates the employer notice and employee
acknowledgement requirements for accidents involving less than
$500 in medical costs with no lost employment time;

(17)  Requires the Division of Workers' Compensation to issue a
written award within 90 days of the last day of the hearing,
which hearing must be completed within 30 days of its
commencement;

(18)  Allows electronic fax filings with the division if the
division's requirements are met;

(19)  Requires an employer subject to the workers' compensation
laws and determined to be uninsured or an unqualified self--
insurer desiring to file an application for review of an award
to attach to the application a bond sufficient to satisfy the
award amount plus interest.  No appeal under the workers'
compensation laws will be considered unless accompanied by such
bond;

(20)  Authorizes appellate courts to review decisions of the
Labor and Industrial Relations Commission where the division has
original jurisdiction over the case, and specifies that venue
pursuant to section 287.640.2 will determine which appellate
court hears the appeal;

(21)  Eliminates the requirement that a 4% interest rate be used
to calculate the commuted lump sum present value of an award;

(22)  Increases the number of administrative law judges (ALJs)
to 25 beginning January 1, 1999; authorizes one additional ALJ
per year up to a maximum of 30 ALJs; and requires that
appropriations for the additional ALJs be based upon necessity
as measured by the requirements and needs of each division
office;

(23)  Requires and sets forth the procedure for annual reviews
of ALJs, associate ALJs, and legal advisors;

(24)  Allows ALJs to correct clerical errors in awards or
settlements within 20 days after the original award or
settlement, and allows the commission to make such corrections
within 30 days;

(25)  Increases the salary of legal advisors from $41,000 to 80%
of the salary of an associate division circuit judge, with chief
legal advisors receiving an additional $2,000 (up from $43,000);
increases the salary of ALJs from $48,000 to 90% of the salary
of an associate division circuit judge, with the ALJ in charge
receiving an additional $5,000 (up from $51,000);

(26)  Changes how venue will be determined for hearings when an
accident occurs outside of Missouri;

(27)  Specifies what the term "records" will include, and
requires that such records must be kept for at least 10 years;
and

(28)  Establishes the Kids' Chance Scholarship Program for
children of workers injured or killed in a work-related accident
or by occupational disease.  The program will be administered by
the Department of Higher Education.  The terms, conditions, and
requirements for the scholarship are set forth.  The program
will be funded by $50,000 per year from insurance premium tax
collections under the Workers Compensation law.

HS HCS HB 1237, 1409, 1166, 1154 & 1491 -- WORKERS' COMPENSATION
(Luetkenhaus)

This substitute makes technical and substantive changes to the
workers' compensation laws.  In its main substantive provisions,
the substitute:

(1)  Adds limited liability partnerships and companies to the
definition of "employer," and requires that any reference to
"employer" include the employer's group self-insurer;

(2)  Covers under the workers' compensation laws employees
related to partners or sole proprietors within the third degree
of affinity or consanguinity unless the partner or sole
proprietor withdraws such employee from coverage, and lists the
specific ways in which a partner or sole proprietor may withdraw
such related employee from coverage;

(3)  Requires only construction industry contractors to verify
workers' compensation coverage or exemption prior to obtaining a
city or county business license.  Cities and counties will not
have a duty to investigate the validity of such coverage or
exemption;

(4)  Removes members of an employer's family within the third
degree of affinity or consanguinity from the nonapplication of
the workers' compensation laws, and lists the specific ways in
which an employer exempt from coverage as to the employer or a
class of employees may elect coverage and/or cancel such
election of coverage under the workers' compensation laws;

(5)  Makes a second offense of the fraud provisions contained in
sections 287.128 and 287.129, RSMo, a class D felony;

(6)  Transfers current law from section 287.430.2 to its proper
location in section 287.140.8, RSMo;

(7)  Changes the 3-day period for which compensation will not be
paid unless a disability lasts longer than 14 days from the
first three "regularly scheduled" work days to the first three
days or less of disability "during which the employer is open
for the purpose of operating its business or enterprise";

(8)  Entitles an employer to a dollar-for-dollar credit against
any benefits owed pursuant to section 287.170, RSMo, for the
amount of unemployment compensation paid to an employee and
charged to the employer during the adjudicated or agreed upon
period of temporary total disability;

(9)  Increases the number of weeks compensation will be paid for
permanent partial disability for complete deafness in both ears
and for complete deafness in one ear (the other ear being
normal);

(10)  Removes a party's ability to submit interrogatories to an
opposing party's physician without additional cost;

(11)  Allows an employer and an employee to enter into a
compromise lump sum settlement prorated over the life expectancy
of the injured employee, and clarifies the application of social
security offset regulations and policies.  This is effective
retroactively;

(12)  Allows groups of employers qualified to insure their
liability pursuant to chapters 287 or 537, RSMo, to use a
uniform experience rating plan promulgated by an approved
advisory organization, and requires such groups to develop
experience ratings for their members based upon the plan;

(13)  Limits an entity qualified to group self-insure its
liability pursuant to chapters 287 or 537, RSMo, to a total
discount not exceeding 25% beginning January 1, 1999;

(14)  Makes records submitted pursuant to section 287.280, RSMo,
confidential and not subject to Chapter 610, RSMo, but allows
parties to a workers' compensation case involving the party that
submitted the records to subpoena the records for use in the
case;

(15)  Repeals section 287.337, RSMo, which deals with
construction classification codes and intrastate modification
rates;

(16)  Eliminates the employer notice and employee
acknowledgement requirements for accidents involving less than
$500 in medical costs with no lost employment time;

(17)  Requires the Division of Workers' Compensation to issue a
written award within 90 days of the last day of the hearing,
which hearing must be completed within 30 days of its
commencement;

(18)  Allows electronic fax filings with the division if the
division's requirements are met;

(19)  Requires an employer subject to the workers' compensation
laws and determined to be uninsured or an unqualified self--
insurer desiring to file an application for review of an award
to attach to the application a bond sufficient to satisfy the
award amount plus interest.  No appeal under the workers'
compensation laws will be considered unless accompanied by such
bond;

(20)  Authorizes appellate courts to review decisions of the
Labor and Industrial Relations Commission where the division has
original jurisdiction over the case, and specifies that venue
pursuant to section 287.640.2 will determine which appellate
court hears the appeal;

(21)  Eliminates the requirement that a 4% interest rate be used
to calculate the commuted lump sum present value of an award;

(22)  Increases the number of administrative law judges (ALJs)
to 25 beginning January 1, 1999; authorizes one additional ALJ
per year up to a maximum of 30 ALJs; and requires that
appropriations for the additional ALJs be based upon necessity
as measured by the requirements and needs of each division
office;

(23)  Requires and sets forth the procedure for annual reviews
of ALJs, associate ALJs and legal advisors;

(24)  Allows ALJs to correct clerical errors in awards or
settlements within 20 days after the original award or
settlement, and allows the commission to make such corrections
within 30 days;

(25)  Increases the salary of legal advisors from $41,000 to 80%
of the salary of an associate division circuit judge, with chief
legal advisors receiving an additional $2,000 (up from $43,000);
increases the salary of ALJs from $48,000 to 90% of the salary
of an associate division circuit judge, with the ALJ in charge
receiving an additional $5,000 (up from $51,000);

(26)  Changes how venue will be determined for hearings when an
accident occurs outside of Missouri;

(27)  Specifies what the term "records" will include, and
requires that such records must be kept for at least 10 years;
and

(28)  Establishes the "Kids' Chance Scholarship Fund," which
will be administered by the State Treasurer and funded by
premium tax collections; establishes the "Kids' Chance
Scholarship Program," which will be administered by the
Department of Higher Education to distribute the scholarships;
and sets forth the terms, conditions and requirements for the
scholarship.

FISCAL NOTE:  Net Cost to Workers' Compensation Fund of $331,222
to $760,007 in FY 1999, $387,884 to $1,119,793 in FY 2000, and
$396,401 to $1,364,409 in FY 2001.  Net Effect on Kids' Chance
Scholarship Fund of $0 in FY 1999, FY 2000, and FY 2001.

HCS HB 1237, 1409, 1166, 1154 & 1491 -- WORKERS' COMPENSATION

SPONSOR:  Luetkenhaus

COMMITTEE ACTION:  Voted "do pass" by the Committee on Worker's
Compensation and Employment Security by a vote of 14 to 1 with 2
present.

This substitute makes technical and substantive changes to the
workers' compensation laws.  In its main substantive provisions,
the substitute:

(1)  Adds limited liability partnerships and corporations to the
definition of "employer", and requires that any reference to
"employer" include the employer's group self-insurer;

(2)  Requires only construction industry contractors to verify
workers' compensation coverage or exemption prior to obtaining a
city or county business license.  Cities and counties will not
have a duty to investigate the validity of such coverage or
exemption;

(3)  Makes a second offense of the fraud provisions contained in
sections 287.128 and 287.129, RSMo., a class D felony;

(4)  Requires an employer to reimburse an employee for all
necessary and reasonable expenses associated with the employee's
receipt of physical rehabilitation outside of the local or
metropolitan area from the place of injury or the employee's
place of residence;

(5)  Changes the 3-day period for which compensation will not be
paid unless a disability lasts longer than 14 days from the
first three "regularly scheduled" work days to the first 3 days
or less of disability "during which the employer is open for the
purpose of operating its business or enterprise";

(6)  Removes a party's ability to submit interrogatories to an
opposing party's physician without additional cost, and removes
the requirement that the Labor and Industrial Relations
Commission set by rule the amount of compensation to be paid to
medical experts;

(7)  Allows an employer and an employee to enter into a
compromise lump sum settlement prorated over the life expectancy
of the injured employee, and clarifies the application of Social
Security offset regulations and policies.  This is effective
retroactively;

(8)  Limits an entity qualified to group self-insure its
liability pursuant to Chapters 287 or 537, RSMo., to a total
discount not exceeding 25% beginning January 1, 1999;

(9)  Repeals section 287.337, RSMo., which deals with
construction classification codes and intrastate modification
rates;

(10)  Eliminates the employer notice and employee
acknowledgement requirements for accidents involving less than
$500 in medical costs with no lost employment time;

(11)  Requires the Division of Worker's Compensation to issue a
written award no later than 30 days after hearing all the
evidence, which must be completed within 60 days of the
commencement of the hearing;

(12)  Requires an employer subject to the workers' compensation
laws and determined to be uninsured or an unqualified self--
insurer desiring to file an application for review of an award
to attach to the application a bond sufficient to satisfy the
award amount plus interest.  No appeal under the workers'
compensation laws will be considered unless accompanied by such
bond; and

(13)  Eliminates the requirement that a 4% interest rate be used
to calculate the commuted lump sum present value of an award.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the changes proposed by this
substitute represent fair workers' compensation reform that
benefits employers and employees.  Additionally, this substitute
makes numerous technical changes to the workers' compensation
laws that have needed adjustment since the 1993 legislation.

Testifying for the bill were Representative Luetkenhaus;
Missouri AFL-CIO; Missouri Merchants & Manufacturers
Association; Missouri Chamber of Commerce; Associated Industries
of Missouri; Missouri Association of Insurance Agents; Missouri
Association of Trial Attorneys; and Missouri Retailers
Association.

OPPONENTS:  There was no opposition voiced to the committee.

Julie Jinkens McNitt, Legislative Analyst

HB 1237 -- Workers' Compensation

Sponsor:  Luetkenhaus

This bill makes several changes to the workers' compensation
statutes.  In its main provisions, the bill:

(1)  Removes owners and officers of contractors and
subcontractors from the definition of qualified employees, and
requires contractors to verify workers' compensation coverage
for employees if required by the workers' compensation laws;

(2)  Authorizes both employees and employers to join any prior
employer of the employee in any proceeding regarding repetitive
motion occupational disease.  An employee is subject to loss of
benefits or dismissal of the case if the employee fails to
cooperate in such proceeding;

(3)  Makes it a class A misdemeanor for a health care provider
to commit a false billing practice, and also subjects the health
care provider to a fine up to $10,000 or double the amount of
the fraud, whichever is greater;

(4)  Increases the number of weeks compensation will be paid for
permanent partial disability for complete deafness in both ears
and for complete deafness in one ear (the other ear being
normal);

(5)  Changes the date of disability for occupational induced
hearing loss;

(6)  Includes 3000 and 4000 hertz per second in the frequency
tones for which a loss of hearing is considered compensable;

(7)  Changes the method for computing the monaural percentage
impairment from an allowance of 1.5 percent for every decibel of
loss exceeding 15 decibels to an allowance of 1.5 percent for
every decibel that the correct average hearing level exceeds 25
decibels based on the ANSI-1969 reference levels;

(8)  Makes it a continuing obligation of an employer or its
insurer to furnish a copy of any subsequent statements by an
employee to the employee or the employee's dependents once an
initial written request for statements is made to the employer
or its insurer by certified mail;

(9)  Requires that nonworkers' compensation received by an
employee with multiple employers be subtracted from any amount
due the employee under the workers' compensation laws for
temporary total or partial disability only.  The employer for
whom the employee was working at the time of injury is liable
for the compensation rate due the employee as if the employee
was employed by that employer only and any additional
compensation due the employee will come from the second injury
fund;

(10)  Allows an employer and an employee to enter into a
compromise lump sum settlement prorated over the life expectancy
of the injured employee;

(11)  Requires the division to issue a written award no later
than 10 days after hearing all the evidence, which must be
completed within 60 days of the commencement of the hearing;

(12)  Authorizes filings to the division to be made by facsimile
transmission if such filings meet the division's requirements
and the original documentation is mailed the same day;

(13)  Requires an employer subject to the workers' compensation
laws and determined to be uninsured or an unqualified self--
insurer desiring to file an application for review of an award
to attach to the application a bond sufficient to satisfy the
award amount plus interest.  No appeal under the workers'
compensation laws will considered unless accompanied by such
bond;

(14)  Increases the number of administrative law judges that the
division may appoint from 20 to 30;

(15)  Increases the salaries of legal advisors, chief legal
advisors, administrative law judges, and administrative law
judges in charge, and removes the restriction on the salary of
the Director of the Division of Workers' Compensation;

(16)  Requires an administrative law judge to enter a written
order of dismissal of a workers' compensation claim upon the
filing by an employee or an employee and the employee's attorney
of a written request for such dismissal;

(17)  Allows groups of employers qualified to insure their
liability pursuant to either chapter 537, RSMo., or chapter 287,
RSMo., to use a uniform experience rating plan either
promulgated by the state's approved advisory organization or
developed by the group's actuary in determining the group's net
premium for determination of any premium tax owed; and,

(18)  Makes certain required documents filed by an applicant or
entity pursuant to the workers' compensation laws or the laws on
torts and actions for damages closed records not open to the
public.