This Fiscal Note is not an official copy and should not be quoted or cited.
This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0982 - Changes interest calculations for worker's compensation payments
COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. NO. 4032-01
BILL NO. SB 982
SUBJECT: Workers' Compensation: Interest Calculations
TYPE: Original
DATE: March 23, 1998
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS Net Effect on All State Funds
FUND AFFECTED
FY 1999
FY 2000
FY 2001 None
$0
$0
$0
Total Estimated
$0
$0
$0
|
ESTIMATED NET EFFECT ON FEDERAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
|
ESTIMATED NET EFFECT ON LOCAL FUNDS | |||
| FUND AFFECTED | FY 1999 | FY 2000 | FY 2001 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses
This fiscal note contains 3 pages.
FISCAL ANALYSIS
ASSUMPTION
Officials from the Secretary of State's Office and the Department of Insurance assume this proposal would not fiscally impact their agencies.
The Department of Labor and Industrial Relations (DOL) assume this proposal would not fiscally impact their agency because DOL merely sets the interest rates to be applied to late workers' compensation payments and does not collect any monies resulting from late payments. The weekly benefit payments for workers' compensation claims are paid by the employer, or the insurance companies handling the claims, directly to the employee. In the event of a late payment to the injured party, the employer or insurance company is assessed an interest rate that must be applied the payment due the employee. Therefore, the employers or insurance companies that process workers' compensation claims would experience an increase in costs in the event that they do not distribute the benefit payments in a timely manner.
| FISCAL IMPACT - State Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
| FISCAL IMPACT - Local Government | FY 1999 | FY 2000 | FY 2001 |
| (10 Mo.) | |||
| $0 | $0 | $0 | |
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that they would incur additional interest penalties in the event of a late payment.
DESCRIPTION
This proposal would change interest calculations for worker's compensation payments under subsection 3 of Section 287.160, RSMo. Uncontested late payments accrue interest at 10% per annum from the date when due upon being ten days late. Contested payments must be made within ten days after an award of compensation or accrue interest. Current law allows 30 days
DESCRIPTION (continued)
until a payment is late, and provides for interest after the 30 day period.
The act provides for annual review of the interest rate on late payments based on an economic price index.
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 and Industrial Relations
Secretary of State
Department of Insurance
Jeanne Jarrett, CPA
Director
March 23, 1998