L.R. NO. 1997-01
BILL NO. SB 496
SUBJECT: Workers' Compensation; Second Injury Fund
TYPE: Original
DATE: February 20, 2001
Net Effect on All State Funds
FUND AFFECTED
FY 2002
FY 2003
FY 2004 None
$0
$0
$0
Total Estimated
$0
$0
$0
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Insurance, Department of Labor and Industrial Relations, Department of Transportation and the Office of State Treasurer assume the proposed legislation would have no fiscal impact on their agencies.
Officials from the Attorney General's Office (AGO) estimate their agency would request additional staff (i.e., 5 assistant attorney generals, 1 paralegal and 2 secretaries). Officials assume that the proposal would mainly affect partial disability claims filed against the Second Injury Fund (SIF). If SIF cases were allowed to be submitted on medical reports, cases previously settled or dismissed would be taken to hearing resulting in an additional 800 to 1,200 cases. Along with this increase, appeals would increase. In order to adequately defend these cases, SIF attorneys would have to cross-examine the claimant's doctor. Costs are estimated at $381,415 in FY02; $384,752 in FY03; and $394,867 in FY04.
Officials from the AGO also estimated a loss to the Second Injury Fund of $5.0 million annually, due to an increase in claims.
Based on an Oversight Subcommittee decision on March 30, 1998 in reference to a similar proposal, the fiscal impact of this proposal is assumed to be zero.
FISCAL IMPACT - State Government FY 2002 FY 2003 FY 2004
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 2002 FY 2003 FY 2004
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal allows the State to request a medical examination of an injured employee in Second Injury claims and modifies the admissibility of medical reports in Second Injury cases. The physician's fee and other reasonable costs may be assessed by the administrative law judge against any party and become immediately payable.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Attorney General's Office
Department of Insurance
Department of Labor and Industrial Relations
Department of Transportation
Office of State Treasurer
Jeanne Jarrett, CPA
Director
February 20, 2001