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| Second Injury Fund
Legislation Sent to Missouri House Legislative Column for Feb. 19, 2013 |
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Last week, SB 1, which addresses workers' compensation and the insolvent Second Injury Fund, was approved in the Senate with a 32-2 vote and sent to the Missouri House for consideration. The Second Injury Fund was established in Missouri in 1943 to benefit physically disabled veterans and individuals with previous work-related disabilities. The fund is appropriated by a surcharge employers pay on workers’ compensation insurance premiums. In 2005, the General Assembly passed legislation permanently capping the surcharge rate at 3 percent. However, when the 2008 recession hit our country, unemployment rates grew and workers’ compensation premiums fell, gradually drying up revenue in the fund. The Attorney General’s office estimates more than 30,000 cases with a potential liability to the state exceeding $100 million currently filed against the fund. Senate Bill 1 states that the surcharge rate that finances the fund may be increased to 4.5 percent for the remainder of 2013, and up to 6 percent for subsequent years, until Dec. 31, 2020. The bill would also eliminate permanent partial disability under the Second Injury Fund. Claims for permanent total disability would only be allowed to go forward for instances when a Missourian has a medically documented, pre-existing permanent disability caused by military duty, a previous workplace injury, or in certain cases, when a pre-existing permanent partial disability exists. The measure also states that occupational diseases would be exclusively covered under workers’ compensation laws. Claims for toxic occupational diseases would follow a two-tier system under the bill; the first category lists nine diseases, including asbestosis and bronchiolitis obliterans. Individuals who have diseases in this tier would receive an enhanced remedy of $150,000. The second category for occupational disease addresses mesothelioma. Missourians with this disease would receive an enhanced remedy of $600,000. The bottom line is that workers' compensation is a jobs issue that affects workers and employers. The matter of occupational disease is showing up in the “general liability” side of employers' costs, as opposed to the workers' compensation costs. These issues are now rippling their way through the insurance community, and will cause greater uncertainty and higher costs in the market, should a fix not be made. While I’m disappointed SB 1 could not place tighter restrictions on use of the fund, it still would protect employees on the job, while ensuring job-creators can continue to thrive in our state. Tackling the Matter of Unemployment Benefits Another Senate priority sent to the House last week was SB 28, which redefines "misconduct" and "good cause" for the purposes of disqualification from unemployment benefits. The bill would prevent Missourians from abusing the system and has the potential to save taxpayers an additional $500 million. Over the last few years, Missouri courts have liberally construed the definition and application of “misconduct” with regard to deciding unemployment benefits. This course of action by the courts has led to cases when employees fired for valid reasons of misconduct — such as stealing and using profane language in front of school children — still received unemployment benefits. Senate Bill 28 would change the definition of "misconduct" so that only a “knowing disregard” of rules is needed; previously, it had been a "willful" or "wanton" disregard. Also, the misconduct has to be reasonably related to the job environment and the job performance, regardless of whether the misconduct occurs at the workplace or during work hours. Unemployment benefits are there for those who truly need them and should not be abused by individuals who knowingly act in an inappropriate manner. Promoting Vocational Education Programs Vocational and technical training deserves our state's attention, as this education is the starting point for thousands of Missouri careers. Senate Bill 17, sent to the House last week, would establish the Career and Technical Education Advisory Council. This panel would create a short- and long-range plan for career and technical education in the state and recommend legislative measures to improve the system that sometimes is overlooked by the Department of Elementary and Secondary Education. Visiting Guests and Organizations I would like to thank the following groups for visiting my office in Jefferson City this month: Buchanan County commissioners; the city council and mayor of the City of St. Joseph; the Allied Arts Council of St. Joseph; the mayor of the City of Riverside; plus many students and staff from Missouri Western State University, the Northland Career Center, and the Hillyard Technical Center. It's always a pleasure to meet with organizations that make a positive difference in our state, as well as friends and family from back home. Please feel free to contact my Capitol office to schedule a time to meet with me in Jefferson City. I appreciate you reading this legislative column and for your interest in our state government. If you have any questions about the 2013 legislative session, please don't hesitate to contact my Capitol office. |
| Senator Rob Schaaf State Capitol Building, Room 319 Jefferson City, MO 65101 Phone: (573) 751-2183 |
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