COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 4445-01

Bill No.: SB 1105

Subject: Workers' Compensation; Employees - Employers; Labor and Management

Type: Original

Date: February 15, 2002




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Various Unknown Unknown Unknown
Total Estimated

Net Effect on All

State Funds

Unknown Unknown Unknown







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 Unknown Unknown Unknown


Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.









FISCAL ANALYSIS



ASSUMPTION



Officials from the St. Louis County, Jackson County, St. Charles County, Boone County, and the City of Independence did not respond to our fiscal impact request.



Officials from the City of Springfield (COS) did not respond to our fiscal impact request. However, in response to a similar proposal from the current session, COS assumed the proposal would not affect revenues, costs, or losses. COS assumed the proposal would result in savings although they do not have the data to accurately project the amount of savings. COS noted, for particular cases, the savings could be substantial.



Officials from the Department of Conservation, Office of the State Courts Administrator, Central Missouri State University, and Truman State University assume the proposed legislation would have no fiscal impact on their agencies.



Officials from the University of Missouri assume the proposal would positively impact the University although an exact fiscal impact is difficult to measure.



Officials from the Southwest Missouri State University (SMS) defer to the Office of Administration for the fiscal impact of this proposal as the SMS's Workers' Compensation program is administered by the Office of Administration's Central Accident Reporting Office.



Officials from the City of Jefferson City and the County of Greene state the proposal could potentially result in a substantial savings although an actual amount is difficult to estimate.



Officials from the City of St. Louis assume the proposal could potentially reduce Workers' Compensation costs in certain instances, resulting in an estimated savings of $75,000 to $100,000 annually.



Officials from the Department of Transportation (DHT) assume the proposal would create a substantial cost savings to DHT's self insurance plan. DHT notes they are unable to estimate the cost savings.



Officials from the Office of Administration - Division of General Services assume the proposal will result in potential cost savings that cannot be determined at this time.



Officials from the Department of Labor and Industrial Relations (DOL) assume the fiscal impact is unknown. DOL notes that the proposal would result in additional litigation over which employees ASSUMPTION (continued)



are entitled to Workers' Compensation benefits. The Division of Workers' Compensation will likely need additional resources, such as administrative law judges, legal advisors, support staff, and administrative expenses, to handle the increase in litigation.



Oversight assumes if the DOL's Workers' Compensation caseload increases significantly, DOL could request additional resources through budget decision items.





FISCAL IMPACT - State Government FY 2003

(10 Mo.)

FY 2004 FY 2005
VARIOUS STATE FUNDS
Potential Workers' Compensation

Savings

Unknown Unknown Unknown



FISCAL IMPACT - Local Government FY 2003

(10 Mo.)

FY 2004 FY 2005
VARIOUS LOCAL FUNDS
Potential Workers' Compensation

Savings

Unknown Unknown 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



Under current Workers' Compensation laws, an injury is work related if work was a substantial factor in its cause. This proposal requires that work be the dominant substantial factor in causing an injury before it will be considered work related. The proposal also limits workers' compensation recovery for the aggravation of a pre-existing condition to the extent that the work-related injury causes increased disability.



DESCRIPTION (continued)



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

Office of Administration - Division of General Services

Department of Transportation

Department of Conservation

Office of the State Courts Administrator

City of Jefferson City

City of St. Louis

County of Greene

University of Missouri

Southwest Missouri State University

Central Missouri State University

Truman State University





NOT RESPONDING



St. Louis County

Jackson County

St. Charles County

Boone County

City of Independence

City of Springfield















Mickey Wilson, CPA

Acting Director

February 15, 2002