After negotiation and compromise amongst members in the Senate, my legislation (SB 1) addressing workers’ compensation and the Second Injury Fund received approval in the Senate and will go to the House for consideration. Finding a solution to the broken Second Injury Fund and streamlining our workers’ compensation system is a top priority for our state and a huge task to tackle; decisions made regarding this matter will affect thousands of Missourians. This bill is the best solution for employers and employees alike; it would protect injured workers and help those with the most critical needs, while limiting employers’ liability.

It is no secret that the Second Injury Fund is insolvent. In January, it was announced that the fund has unpaid liabilities totaling more than $28.1 million and has no existing means to pay the benefits. There are currently approximately 30,000 cases pending and about 700 new cases filed each month. Not only are the cases piling up and creating problems for the courts, but Missourians aren’t getting their settlements, thus putting them and their families in dire financial need.

Senate Bill 1 would, upon approval of the director of the Division of Workers’ Compensation, increase the surcharge rate that finances the fund up to 4.5 percent for the remainder of 2013, and up to 6 percent for subsequent years, until Dec. 31, 2020. The bill would also eliminate permanent partial disability under the Second Injury Fund. Claims for permanent total disability would only be allowed to go forward for instances when a Missourian has a medically documented, preexisting permanent disability caused by military duty, a previous workplace injury, or in certain cases when a preexisting permanent partial disability exists.

In addition, the bill addresses occupational disease within the workers’ compensation system. Senate Bill 1 states that occupational diseases are exclusively covered under workers’ compensation laws. Claims for toxic occupational diseases would follow a two-tier system under the bill; one category lists diseases such as asbestosis, bronchiolitis obliterans, acute myelogenous leukemia, and Myelodysplastic syndrome. Missourians who have diseases in this tier would receive an enhanced remedy of $150,000. The second category for occupational disease addresses mesothelioma. Missourians with this disease would receive an enhanced remedy of $600,000. Individuals would still receive their central workers’ compensation benefits.

It’s very important to address occupational disease in the legislation. Last year, the Legislature passed a measure (SB 572) that aimed to make workers’ compensation the exclusive remedy for most occupational diseases; however, it was vetoed by the governor. “Occupational disease” is not found in the exclusive remedy provision of state law addressing workers’ compensation (Section 287.120, RSMo.). As workers’ compensation is not the exclusive remedy for occupational disease, employers are often sued by employees who have been injured, when workers’ compensation should have been the starting point for the claim.

We need to have a workers’ compensation system that protects Missouri workers when they have the unfortunate experience of receiving injury on the job, while allowing employers to take care of employees and, at the same time, continue to thrive in our state and keep commerce going. If you have questions as SB 1 progresses through the Legislature, please don’t hesitate to contact my Capitol office. Thank you and God bless.