SB 0844 - Fiscal Note

Fiscal Note - SB 0844 - Employer & Employee Work. Comp. Coverages & Exemptions

L.R. NO.  3000-02
BILL NO.  SB 844
SUBJECT:  Workers' Compensation
TYPE:     Original
DATE:     February 21, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999


Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999


Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Local Government                $0                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

The Department of Public Safety (DPS), Department of Social Services (DOS),
Missouri Consolidated Health Care Plan (HCP), Office of Administration (OA),
Risk Management, Department of Corrections (DOC), Department of Health (DOH),
Department of Highway & Transportation (DHT), Office of State Courts
Administrator (CTS), Department of Conservation (MDC), Department of Labor &
Industrial Relations (DOL) Division of Workers' Compensation (WC), State
Treasurer (STO), Department of Economic Development (DED), Department of
Mental Health (DMH) and Department of Revenue (DOR) do not expect to be
fiscally impacted.

The Department of Insurance (INS) does not expect this proposal to have a
significant fiscal impact.  However, the enactment of more than one similar
proposal resulting in minimal fiscal impact to the INS could require an
increase in the INS's appropriation for such purposes.

FISCAL IMPACT - State Government   FY 1997   FY 1998   FY 1999
                                  (10 Mo.)

                                        $0        $0        $0

FISCAL IMPACT  - Local Government  FY 1997   FY 1998   FY 1999
                                  (10 Mo.)

                                        $0        $0        $0

DESCRIPTION

The proposal would expand the definition of employee to include an individual
who is the owner and operator of a motor vehicle leased or contracted with a
driver for hire operating within a commercial zone, or under a certificate
issued by the Department of Economic Development, Division of Transportation
or by the Interstate Commerce Commission.  The term "employer" would be
expanded to include sole proprietors, partners or co-partners comprising a
partnership and a limited liability company.  Employers would no longer have
to employ five or more employees to be deemed an employer under chapter 287.

The provisions of chapter 287 would not be applicable to farm laborers or
domestice servants; inmates in a state prison, penitentiary or county or
municipal jail; patients or residents of a state mental health facility;
family member or salaried officer of a family farm corporation; real estate
agents or direct sellers; or volunteers of tax-exempt organizations.  Any
employer exempt from chapter 287 could make the provisions applicable by
filing with the Division of Workers' Compensation (WC) a notice of election
to accept the provisions or by purchasing and accepting a valid compensation
insurance policy.  The notice of election could be withdrawn and the employer
would no longer be subject to chapter 287 after 30 days.

Certain employers and classes of employees could be exempt from coverage if
the employer elects, including an employer with four or fewer employees,
except for construction industry employers who have one or more employees; an
individual who is an owner and operator of a motor vehicle; members of
limited liability companies; family members within the third degree of
affinity or consanguinity applying only to employers who are sole
proprietors; or persons providing services such as adjudicators, sports
officials or contest workers for interscholastic activities.  Any employer
could become exempt by filing a notice.  Notices could be withdrawn and the
employer would no longer be subject to chapter 287 after 30 days.

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 Insurance
Department of Corrections
Department of Conservation
Department of Public Safety
Department of Health
Department of Social Services
Office of Administration
Department of Highway & Transportation
Missouri Consolidated Health Care Plan
Department of Labor & Industrial Relations
Office of State Courts Administrator
State Treasurer
Department of Economic Development
Department of Mental Health
Department of Revenue

NOT RESPONDING:  Attorney General