Worker's compensation-costs of recoveries.

04LSO-0308.L1

                                                         

FISCAL NOTE (HB0130)

 

 

	FY 2005	FY 2006	FY 2007
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Decrease:
WORKERS COMPENSATION FUND	(350,000)	(360,000)	(370,000)

 

 

Source of revenue decrease:  Passage of this legislation would reduce the amount of the state share of third party recoveries received. 

 

Assumptions:  Fiscal impact dollars can be determined for the changes made on page 2, lines 13 through 18 (see dollars indicated above).  This amount was determined by averaging the past three years third party funds received by the Division and reducing that amount by one-third per year (the maximum pro rata share) along with the loss of interest earned to the fund.  Fiscal impact on the changes made on page 3, line 24 and page 4, lines 1 through 6 cannot be determined as the amount of decrease will be based on third party settlements and future benefits of settlements whose amounts are currently undeterminable.  This decrease in revenue may adversely affect the statutory requirement of the Workers’ Compensation fund being solvent by 2008.  There may also be an adverse effect on the employers’ experience modification rate, which may increase their overall premium rate they are charged.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepared by:  Bob Curtis, Department of Employment   Phone:  777-6761