Fiscal Note - SB 0266 - Requires Administrative Law Judges To Accept Settlements In Certain Circumstances
L.R. NO. 1001-03
BILL NO. SB 266
SUBJECT: Workers' Compensation: Settlements
TYPE: Original
DATE: February 3, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
The Department of Insurance (INS) does not expect this proposal to have a
significant fiscal impact.
The Department of Labor & Industrial Relations (DOL), Division of Workers'
Compensation does not expect to be fiscally impacted.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
This proposal could have a direct fiscal impact on small businesses since it
could limit workers' compensation settlements.
DESCRIPTION
The proposal would restrict an administrative law judge (ALJ) or the
commission from approving a settlement prior to explaining the rights of any
unrepresented party. ALJ's, associate ALJ's and legal advisors would be
prohibited from referring, sending or otherwise directing either party to any
attorney, physician or other provider of service. Employees of the Division
of Workers' Compensation (WC) would also be prohibited from such action.
WC would be prohibited from refusing to approve a compromise settlement
agreement reached by the employer and employee, with or without legal
representation, as long as the amount of the settlement equals or exceeds the
physician's rating.
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 Labor & Industrial Relations
Division of Workers' Compensation
Department of Insurance
This Fiscal Note is not an official copy and should not be quoted or cited.