Fiscal impact
reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for
standing finance committees of the NM Legislature. The LFC does not assume
responsibility for the accuracy of these reports if they are used for other
purposes.
Current FIRs (in
HTML & Adobe PDF formats) are available on the NM Legislative Website (legis.state.nm.us). Adobe PDF versions include all attachments,
whereas HTML versions may not.
Previously issued FIRs and attachments may also be obtained from the LFC
in
|
SPONSOR |
Ruiz |
DATE TYPED |
|
HB |
320 |
||
|
SHORT
TITLE |
Amend NM Occupational Disease Disablement Law |
SB |
|
||||
|
|
ANALYST |
Gilbert |
|||||
APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
|
FY04 |
FY05 |
FY04 |
FY05 |
||
|
|
|
|
Indeterminate |
Recurring |
General
Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
Relates
to SJM 20, SJM 40, HJM 20
LFC Files
Response
Received From
NM
Health Planning Commission (HPC)
NM
Department of Health (DOH)
Attorney
General’s Office (AGO)
Worker’s
Compensation Administration (WCA)
SUMMARY
Synopsis of Bill
House
Bill 320 removes benefit claims limitations per the Occupational Disease
Disablement Law (ODDL) for persons affected by silicosis or asbestosis. The
bill applies retrospectively for exposures dating back to 1945.
Significant Issues
HB 320 will expand liability exposure for employer’s
who assumed they were protected by the statute of limitations. In exchange,
those employers will be protected from the possibility of tort actions arising
from the same operative facts by the exclusive remedy provisions of the ODDL. At
the same time, the bill will provide a remedy to workers who, because of the
long period of latency of silicosis and asbestosis, have been effectively
denied a workers’ compensation remedy for their illnesses.
FISCAL IMPLICATIONS
Since the number of claims which could be
submitted is unknown and since asbestos abatement, remodeling and demolition
has taken place in many state buildings, the Department of Health (DOH) believes that
the retroactive provisions of HB 320 could result in significant
fiscal and administrative implications for the state and private sector.
ADMINISTRATIVE IMPLICATIONS
The
Worker’s Compensation Administration (WCA) believes that a few
trials may be more complex because of the passage of time since the last
injurious exposure to asbestos or silica, but the number of these cases is
sufficiently small that the impact can be absorbed with current resources.
The DOH feels that HB 320 could require a formal
study to determine which state properties had silicon dioxide and asbestos
which was disturbed by abatement, remodeling or demolition, and the number of
employees exposed to such. The DOH does not have all the records necessary to defend
claims of alleged exposure.
TECHNICAL
ISSUES
According
to the WCA, the structure of paragraph C of this bill is problematic. It refers to the “time limits in this bill”
as not being in effect for fissionable materials workers. The only time limits remaining in the bill
are that the illness must have occurred after the passage of the ODDL. If the bill is trying to attach liability for
ODDL illnesses to before the ODDL was passed, it’s not an effective way to
accomplish that result.
According
to the Health Planning Commission (HPC), new language on page 4, lines 6-10, is
not clear. Additionally the HPC states that section C and Section D appear to
contradict one another. Section C
indicates that compensation shall not be paid … “prior to the passage of the NM
Occupational Diseases Disablement Law.”
Section D indicates that provisions of this section apply to exposure
occurring “after the passage of the NM Occupational Disease Disablement Law.”
The
Attorney General’s Office (AGO) stated that it should be noted that, pursuant
to NMSA 1978 Section 12-2A-10(A), any later-enacted statute amending the same
statutory sections in this bill would govern over the provisions contained
herein.
OTHER SUBSTANTIVE ISSUES
The DOH believes that HB 320 would increase
liability at many levels: the Department
of Health, General Services Department, and the Worker’s Compensation
Department. The Workers’ Compensation Bureau as well as the Risk Management
Division will potentially face additional and difficult claims based upon the
retroactive effect of this bill.
According
to the HPC, the intent of HB 320 appears to be the protection of and
compensation for workers employed in the radiation industry. However, the language in this bill is very
broad in scope and is in no way limited only to workers' in the atomic
energy/DOE related field.
According to the definition in Chapter 52 Workman’s Compensation, Article 3 Occupational Disease Disablement NMSA 1978 (52-3-33), an occupational disease relates to excess exposure to or contact with radioactive material by an employee during course of employment resulting in illness and/or death. Removal of exemptions, which detail conditions such as time limitations, hours worked, work shifts, and exposure to hazardous elements, might make it easier for former employees to receive deserved compensation, but it might also result in a higher number of former employees seeking compensation that could have serious fiscal implications for the Workers’ Compensation Administration.
RLG/lg