COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO. 3216-02

BILL NO. SCS for SB 631

SUBJECT: Workers' Compensation; Second Injury Fund; Evidence

TYPE: Original

DATE: March 13, 2002




FISCAL SUMMARY


ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
None
Total Estimated

Net Effect on All

State Funds

$0 $0 $0





ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
None
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0





ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Local Government $0 $0 $0


Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 3 pages.



FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Labor and Industrial Relations and the State Treasurer's Office 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 (5 assistant attorney generals, 1 paralegal and 2 secretaries). AGO assumes 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. AGO estimates annual costs of $380,000 to $400,000. AGO also estimates 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, the fiscal impact of this proposal is assumed to be zero.





FISCAL IMPACT - State Government FY 2003 FY 2004 FY 2005

(10 Mo.)





$0 $0 $0







FISCAL IMPACT - Local Government FY 2003 FY 2004 FY 2005

(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 provides that in the case of a claim against the Second Injury Fund, the administrative law judge may appoint an impartial physician to examine, at the request of the State, upon a finding that there is no other adequate medical evidence available and necessary, upon the issues presented by the Second Injury Fund Claims. The physician's fee and other reasonable costs may be assessed by the administrative law judge against any party and becomes 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



Department of Labor and Industrial Relations

State Treasurer's Office

Attorney General's Office





















Mickey Wilson, CPA

Acting Director

March 13, 2002