COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 1258-03
Bill No.: SCS for SB 347
Subject: Business and Commerce; Employees - Employers; Labor and Management; Workers' Compensation; Religion
Type: Original
Date: February 21, 2003
FISCAL SUMMARY
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
|
General Revenue |
(Could Exceed $100,000) to Unknown | (Could Exceed $100,000) to Unknown | (Could Exceed $100,000) to Unknown |
| Total Estimated
Net Effect on General Revenue Fund |
(Could Exceed $100,000) to Unknown | (Could Exceed $100,000) to Unknown | (Could Exceed $100,000) to Unknown |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
|
Conservation Fund |
(Less than $100,000) to Unknown | (Less than $100,000) to Unknown | (Less than $100,000) to Unknown |
|
Highway Fund |
(Less than $100,000) to Unknown | (Less than $100,000) to Unknown | (Less than $100,000) to Unknown |
| Various | $0 to Unknown | $0 to Unknown | $0 to Unknown |
|
Second Injury |
(Less than $100,000) to Unknown | (Less than $100,000) to Unknown | (Less than $100,000) to Unknown |
| Total Estimated
Net Effect on Other State Funds |
(Unknown) to Unknown |
(Unknown) to Unknown |
(Unknown) to Unknown |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 7 pages.
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2004 | FY 2005 | FY 2006 |
|
Local Government |
(Unknown) to Unknown | (Unknown) to Unknown | (Unknown) to Unknown |
ASSUMPTION
Officials from the Office of the State Courts Administrator and Department of Conservation assume the proposal would have no fiscal impact on their agencies.
Officials from the Office of Administration - Division of General Services assume the proposal will result in potential cost savings to Workers' Compensation which cannot be determined at this time.
Officials from the Department of Labor and Industrial Relations (DOL) state the Division of Workers' Compensation's (Division) information specialists and mediator who respond to employee calls and provide information regarding the employee's rights, benefits and obligations will need adequate training to perform their jobs. Further, the Division only employs one mediator at this time. DOL expects the Division will need at least one additional mediator and information specialist. The Division also maintains an 888 toll free number to respond to inquiries from the employer community. The information specialists would need additional training to answer questions relating to this proposed legislation. DOL assumes implementation of the proposal would require three additional FTE: a Mediator with an annual salary of $40,000; one Senior Office Support Assistant with an annual salary of $23,184; and one Office Support Assistant with an annual salary of $20,820. DOL assumes the cost to the Division for ASSUMPTION (continued)
additional FTE, including salaries, fringe and expense and equipment to be approximately $120,000 annually.
Oversight assumes additional duties resulting from the proposal could be absorbed.
Oversight assumes the implementation of the proposal will reduce the amount of claims paid for Workers' Compensation injuries and accidents. Therefore, Oversight is showing a savings to General Revenue, Conservation Fund, Highway Fund, Second Injury Fund and various state funds.
Oversight notes none of the responding agencies directly addressed the section of the proposal that addresses occupational diseases and peace officers certified pursuant to Chapter 590, RSMo. In response to a similar proposal from the current session, Oversight assumed:
(1) There would not be enough people to get sick in a given year to cause costs to the Second Injury Fund to be greater than $100,000 and therefore assume costs less than $100,000;
(2) There could be a resulting negative impact to General Revenue, Conservation Fund, Highway Fund and Second Injury Fund; and
(2) Local law enforcement agencies, which are self-insured, could experience increased costs to their Workers' Compensation fund arising from potential increases in out-of-pocket costs and increased contributions to the fund.
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| GENERAL REVENUE | |||
| Savings - Office of Administration | |||
|
Potential Reduction in Claims Paid |
$0 to
Unknown |
$0 to
Unknown |
$0 to
Unknown |
| Costs - Office of Administration | |||
| Increase in Amounts Paid for Workers'
Compensation Cases (Peace Officers) |
(Could Exceed $100,000) | (Could Exceed $100,000) | (Could Exceed $100,000) |
|
ESTIMATED NET EFFECT ON GENERAL REVENUE |
(Could Exceed $100,000) to Unknown | (Could Exceed $100,000) to Unknown | (Could Exceed $100,000) to Unknown |
| CONSERVATION FUND | |||
| Savings - Department of Conservation | |||
|
Potential Reduction in Claims Paid |
$0 to
Unknown |
$0 to
Unknown |
$0 to
Unknown |
| Costs - Department of Conservation | |||
| Increase in Amounts Paid for Workers'
Compensation Cases (Peace Officers) |
(Less than $100,000) | (Less than $100,000) | (Less than $100,000) |
|
ESTIMATED NET EFFECT ON CONSERVATION FUND |
(Less than $100,000) to Unknown | (Less than
$100,000) to
Unknown |
(Less than $100,000) to Unknown |
| FISCAL IMPACT - State Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| HIGHWAY FUND | |||
| Savings - Department of Conservation | |||
|
Potential Reduction in Claims Paid |
$0 to
Unknown |
$0 to
Unknown |
$0 to
Unknown |
| Costs - Department of Conservation | |||
| Increase in Amounts Paid for Workers'
Compensation Cases (Peace Officers) |
(Less than $100,000) | (Less than $100,000) | (Less than $100,000) |
|
ESTIMATED NET EFFECT ON HIGHWAY FUND |
(Less than $100,000) to Unknown | (Less than
$100,000) to
Unknown |
(Less than $100,000) to Unknown |
| VARIOUS STATE FUNDS | |||
| Savings - Various Agencies | |||
|
Potential Reduction in Claims Paid |
$0 to
Unknown |
$0 to
Unknown |
$0 to
Unknown |
| SECOND INJURY FUND | |||
| Savings - Division of Workers' Compensation | |||
|
Potential Reduction in Claims Paid |
$0 to
Unknown |
$0 to
Unknown |
$0 to
Unknown |
| Costs - DOL | |||
|
Increase in Claims Paid (Peace Officers) |
(Less than $100,000) | (Less than $100,000) | (Less than $100,000) |
|
ESTIMATED NET EFFECT ON SECOND INJURY FUND |
(Less than $100,000) to Unknown | (Less than $100,000) to Unknown | (Less than $100,000) to Unknown |
| FISCAL IMPACT - Local Government | FY 2004
(10 Mo.) |
FY 2005 | FY 2006 |
| VARIOUS LOCAL FUNDS | |||
| Savings - Various Local Governments | |||
| Reduction in Potential Workers'
Compensation Claims |
Unknown |
Unknown |
Unknown |
| Costs - Law Enforcement Agencies | |||
| Increase in Out-of-Pocket Costs and
Increase in Contributions Paid to Fund |
(Unknown) |
(Unknown) |
(Unknown) |
| ESTIMATED NET EFFECT ON VARIOUS LOCAL FUNDS | (Unknown) to Unknown | (Unknown) to Unknown | (Unknown) to Unknown |
FISCAL IMPACT - Small Business
Small businesses may recognize a savings in the amount Workers' Compensation benefits paid as a result of passage of this proposal.
DESCRIPTION
This proposal modifies the definition of "accident" and "injury" within Chapter 287, RSMo. Further, the proposal limits the applicability of an occupational disease within the chapter to cases where the occupational exposure was the dominant factor in causing the mental or physical condition of the employee. Normal physical and mental activities of day to day living are not compensable. This proposal restricts benefits for the aggravation of pre-existing conditions to those cases where a work-related injury causes increased permanent disability and reduces compensation by the amount of permanent partial disability that was pre-existing
The proposal modifies Section 287.067, RSMo, which addresses occupational diseases. Subsection 5 of this section is modified to include peace officers certified pursuant to chapter 590, RSMo, if the exposure was the dominant factor in causing the condition or disability.
Employees that are a member of a religious organization which has tenants or teachings opposed to acceptance of insurance benefits may choose to prospectively reject the provisions of Chapter
287, RSMo.
DESCRIPTION (continued)
This proposal is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Labor and Industrial Relations
Office of Administration - Division of General Services
Department of Conservation
Office of the State Courts Administrator
Mickey Wilson, CPA
Director
February 21, 2003