Senator Schaaf leads the
upper chamber during debate. |
Workers' Compensation Legislation Receives Senate
Approval
Last week, SB 1,
which addresses workers' compensation and the insolvent
Second Injury Fund, was approved in the Senate with a
32-2 vote and sent to the Missouri House for consideration.
The Second Injury Fund was established in
Missouri in 1943 to benefit physically disabled veterans
and individuals with previous work-related disabilities.
The fund is appropriated by a surcharge employers
pay on workers’ compensation insurance premiums.
In 2005, the General Assembly passed legislation
permanently capping the surcharge rate at 3 percent.
However, when the 2008 recession hit our country,
unemployment rates grew and workers’ compensation
premiums fell, gradually drying up revenue in the fund. The Attorney
General’s office estimates more than 30,000 cases with a potential
liability to the state exceeding $100 million currently filed against
the fund.
Senate Bill 1 states that the surcharge rate that finances the
fund may be increased 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, pre-existing permanent disability caused
by military duty, a previous workplace injury, or in certain cases,
when a pre-existing permanent partial disability exists.
The measure also states that occupational diseases would be exclusively
covered under workers’ compensation laws. Claims for toxic occupational
diseases would follow a two-tier system under the bill; the first
category lists nine diseases, including asbestosis and bronchiolitis
obliterans. Individuals 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.
The bottom line is that workers' compensation is a jobs issue that
affects workers and employers. The matter of occupational disease
is showing up in the “general liability” side of employers' costs,
as opposed to the workers' compensation costs. These issues are
now rippling their way through the insurance community, and will
cause greater uncertainty and higher costs in the market, should
a fix not be made. While I’m disappointed SB 1 could
not place tighter restrictions on use of the fund, it still
would protect employees on the job, while ensuring job-creators can
continue to thrive in our state.
Tackling the Matter of Unemployment Benefits
Another Senate priority sent to the House last week was SB 28,
which redefines "misconduct" and "good
cause" for the purposes of disqualification from unemployment benefits.
The bill would prevent Missourians from abusing the system and has the potential
to save taxpayers an additional $500 million.
Over the last few years, Missouri courts have liberally construed
the definition and application of “misconduct” with regard to deciding
unemployment benefits. This course of action by the courts has
led to cases when employees fired for valid reasons of misconduct
— such as stealing and using profane language in front of school
children — still received unemployment benefits.
Senate Bill 28 would change the definition of "misconduct" so
that only a “knowing disregard” of rules is needed; previously,
it had been a "willful" or "wanton" disregard.
Also, the misconduct has to be reasonably related to the job environment
and the job performance, regardless of whether the misconduct occurs
at the workplace or during work hours.
Unemployment benefits are there for those who truly need them and
should not be abused by individuals who knowingly act in an inappropriate
manner.
Promoting Vocational Education Programs
Vocational and technical training deserves our state's attention,
as this education is the starting point for thousands of Missouri
careers. Senate
Bill 17, sent to the House last week, would establish
the Career and Technical Education Advisory Council. This panel
would create a short- and long-range plan for career and technical
education in the state and recommend legislative measures to improve
the system that sometimes is overlooked by the Department of Elementary
and Secondary Education.
Visiting Guests and Organizations
I would like to thank the following groups for visiting
my office in Jefferson City this month: Buchanan County
commissioners; the city council and mayor of the City of St. Joseph;
the Allied Arts Council of St. Joseph; the mayor of the City of
Riverside; plus many students and staff from Missouri Western State
University, the Northland Career Center, and the Hillyard Technical
Center.
It's always a pleasure to meet with organizations that make a positive
difference in our state, as well as friends and family from back
home. Please feel free to contact my Capitol office to schedule
a time to meet with me in Jefferson City.
I appreciate you reading this legislative column and for your interest
in our state government. If you have any questions about the 2013
legislative session, please don't hesitate to contact my Capitol
office. |
Senator Rob Schaaf
State Capitol Building, Room 319
Jefferson City, MO 65101
Phone: (573) 751-2183 |
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