SB 417 Modifies the law relating to the Second Injury Fund
Sponsor: Crowell
LR Number: 1840S.01I Fiscal Note: 1840-01N.ORG
Committee: Small Business, Insurance and Industry
Last Action: 3/29/2011 - Hearing Cancelled S Small Business, Insurance and Industry Committee Journal Page:
Title: Calendar Position:
Effective Date: Emergency Clause

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Current Bill Summary

SB 417 - No new claims shall be filed against the Second Injury Fund after July 1, 2011.

Only awards granted prior to July 1, 2011, awards or settlements in cases filed before July 1, 2001 and medical bills incurred and filed by employees of uninsured employers before July 1, 2011 shall be paid by the fund.

The Attorney General shall transmit the projected cost of all legal expenses to the director of the division of workers' compensation. The director shall then withhold sufficient funds to meet the expenses not to exceed 1/4 of the annual appropriation for that purpose.

Under the act, an annual actuarial study shall be made taking into consideration any existing balance carried forward in the fund from a previous year.

The act establishes priority for paying liability of the fund in the following order:

1. Expenses related to the legal defense of the fund.

2. Permanent total disability awards in the order settled or finally adjudicated.

3. Permanent partial disability awards in the order settled or finally adjudicated.

4. Medical expenses incurred prior to July 1, 2011.

This act contains an emergency clause.