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 for other purposes.

 

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

 

 

 

SPONSOR:

Martinez

 

DATE TYPED:

02/17/03

 

HB

506

 

SHORT TITLE:

Amend Residual Physical Capacity Table

 

SB

 

 

 

ANALYST:

Gilbert

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

 

 

$0.1 See Narrative

Recurring

General Fund

 

 

 

$0.1 See Narrative

Recurring

Local Government Funds

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

 

Response Received From

Workers’ Compensation Administration (WCA)

 

SUMMARY

 

     Synopsis of Bill

 

The bill increases the residual physical capacity modifiers contained in NMSA 1978, § 52-1-26.4 (partial disability determination) by increasing each instance of the value “2” to “4” and each instance of the value”4” to “6”.

 

     Significant Issues

 

According to the Workers’ Compensation Administration (WCA), modifications of the permanent partial disability calculation formula (§§52-1-26.2 and 3) were made in 2001.  The effect of these changes, either on benefit levels or costs, has yet to be determined.

 

In the absence of information concerning the 2001 amendments, the WCA cannot accurately predict the impact or need for the changes proposed in HB 506.

 

FISCAL IMPLICATIONS

 

Implementation of this bill may increase workers’ compensation insurance premiums for state and local governments.

 

OTHER SUBSTANTIVE ISSUES

 

The Workers’ Compensation Advisory Council reviewed 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.  All 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.

 

The specific language contained in this proposal has never been submitted to or reviewed by either the former or current Workers’ Compensation Advisory Council.  As such, according to the WCA, the Workers’ Compensation Advisory Council opposes this bill.

 

RLG/prr/njw