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:

Robinson

 

DATE TYPED:

2/25/03

 

HB

 

 

SHORT TITLE:

National Guard Workers’ Comp Claim Time Limit

 

SB

814

 

 

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

Department of Military Affairs

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 814 does not require “a member of the National Guard whose injury happened while on state-ordered duty and who has received federal veterans’ disability benefits as a result of that injury” to submit a notice of accident to the employer within 15 days, as is the case with other employees, to receive workers’ compensation benefits.  It also extends the limitation on filing a claim for refusal of the employer or insurer to pay compensation past one year for the worker described above.  The “employer” under state law would be the Department of Military Affairs.

 

FISCAL IMPLICATIONS

 

There is no appropriation or significant fiscal impact associated with this bill.

 

ADMINISTRATIVE IMPLICATIONS

 

The Department of Military Affairs notes the bill would increase New Mexico National Guard efficiency, recruitment and membership because members serving in state active duty would have the confidence of insurance coverage if injured on the job.  The department also notes it would be responsible for administration of the outgoing claims.

OTHER SUBSTANTIVE ISSUES

 

The Department of Military Affairs indicates the Governor and Adjutant General place a proximately 200 to 500 guardsmen on state-ordered duty each year for an average of 2,087 man-days per year.  This number is based on the last four years’ experience.  It is unknown how many guardsmen who were injured in the past would be able to take advantage of this legislation. The Department of Military Affairs supports enactment of this legislation.

 

The Workers’ Compensation Administration states notice requirements compliance may be contested in some cases, although actual notice is an acceptable substitute for written notice under applicable case law.

 

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.

 

KBC/njw