[1] NOTE: As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version (in HTML & Adobe PDF formats) is available on the Legislative Website. The Adobe PDF version includes all attachments, whereas the HTML version does not. Previously issued FIRs and attachments may be obtained from the LFC’s office in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR:	Rawson		DATE TYPED:	02/04/02		HB
SHORT TITLE:		Workers’ Comp Exclusive Remedy Provisions				SB	414
					ANALYST:		Woodlee

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

$250.0

Non-Recurring

OSF/Workers’ Compensation Assessment Fee Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Senate Joint Memorial 24

SOURCES OF INFORMATION

Workers’ Compensation Administration

SUMMARY

Synopsis of Bill

Senate Bill 414 appropriates $250.0 from the Workers’ Compensation Assessment Fee Fund to the Workers’ Compensation Administration for fiscal years 2002 through 2004 for the purpose of contracting for a study of the effect of recent court decisions on the exclusive remedy provisions of the Workers’ Compensation Act and the effects of the events of September 11 on the workers’ compensation system, or any other issue related to the Workers’ Compensation Act. The appropriation is also to provide technical or legal assistance to the Advisory Council on Worker’s Compensation and Occupational Disease Disablement.

The bill indicates that the director of the WCA may contract with one or more independent organizations to conduct the study and seek comparisons of litigations by employees against employers outside of the workers’ compensation system and the costs of such litigation.

There is an emergency clause on the bill.

Significant Issues

According to the Workers’ Compensation Administration, some stakeholders are concerned that several recent New Mexico Appellate Court cases may have significant impact on the exclusive remedy doctrine in the Workers’ Compensation Act, in that employees may sue employers for amounts beyond the limitations of the workers’ compensation system. Additionally, the WCA suggests that if, as some claim, the court cases represent significant changes in the law, then the qualifications of the impact of those changes will be important information for policymakers.

FISCAL IMPLICATIONS

The appropriation of $250.0 contained in this bill is a non-recurring expense to the Workers’ Compensation Assessment Fee Fund. Any unexpended or unencumbered balance remaining at the end of fiscal year 2004 shall revert to the Workers’ Compensation Assessment Fee Fund.

RELATIONSHIP

Senate Bill 414 relates to Senate Joint Memorial 24 which requests the Legislative Council to direct the appropriate interim committee to study the workers’ compensation system.

MW/njw:ar