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

SPONSOR:	A. Lujan		DATE TYPED:	2/17/03		HB	499
SHORT TITLE:		Duration of Workers’ Comp Benefits				SB
					ANALYST:		Collard

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY03	FY04	FY03	FY04
	NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Responses Received From

Workers’ Compensation Administration

Corrections Department

New Mexico State Highway and Transportation Department

SUMMARY

Synopsis of Bill

House Bill 499 extends the maximum duration of partial disability benefits from 500 weeks to 700 weeks, except where the partial disability results from a primary mental impairment or secondary mental impairment.

FISCAL IMPLICATIONS

Although there is not an appropriation attached to House Bill 499, the Workers’ Compensation Administration (WCA), the Corrections Department and the New Mexico State Highway and Transportation Department note that workers’ compensation insurance premiums will increase.

OTHER SUBSTANTIVE ISSUES

The Workers’ Compensation Advisory Council has had a process in place for several years for the review of proposed legislation affecting the workers’ compensation system, pursuant to its statutory mandate. The prior council had a series of public meetings during the summer of 2002 where legislative proposals for this session were discussed. At the council’s request, proposals involving changes to workers' compensation benefits were analyzed for their costs by the Workers' Compensation Administration research staff, the National Council on Compensation Insurance and New Mexico Mutual Casualty Company. This proposal has never been submitted to or reviewed by either the former or current Workers’ Compensation Advisory Council. It is the position of the current Workers’ Compensation Advisory Council that, at the present time, it opposes this bill.

The New Mexico State Highway and Transportation Department notes this is a significant change in workers’ compensation rules. This bill expansion in the time frame of benefits will result in potentially large increases in costs associated in settling claims.

KBC/njw:prr