Workplace safety initiatives.

13LSO-0057.L1

FISCAL NOTE

	FY 2014	FY 2015	FY 2016
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue (Decrease):
INDUSTRIAL ACCIDENT FUND	(1,000,000)	(1,000,000)	(1,000,000)

Source of Revenue Decrease:

Reduction in premiums based on required discount.

Assumptions:

The Department of Workforce Services (DWS) anticipates that participating employers will have average base premium rate payment of $100,000 per fiscal year.  Based on this average annual rate, at the maximum 10 percent (10%) discount, each employer's rate would decrease by $10,000 per fiscal year.  The DWS assumes that one hundred (100) employers will participate in the workplace safety contract programs.

Please note that employers utilizing the workplace safety contract program are obligated to invest the money into the health and safety of their business.  This correlates to potential savings for the INDUSTRIAL ACCIDENT FUND through reduced frequency and severity of workplace injuries.  However, the reduced premiums outlined in the proposed legislation are not obligated to health and safety investments and cannot be used to quantify actual savings to the fund in terms of anticipated decrease in expenditures (cost of injury payments).

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

Department of Workforce Services

Prepared by:    Michael Swank, LSO                   Phone:     777-7881

(Information provided by John Ysebaert, Department of Workforce Services, 777-7672)