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

SPONSOR Leavell

DATE TYPED 2/28/2005 HB

SHORT TITLE Workers’ Comp Eligibility Requirements

SB 114/aSJC/aHLHRC

ANALYST Dunbar

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Workers’ Compensation Administration (WCA)

New Mexico Corrections Department (NMCD)

SUMMARY

Synopsis of HLHRC Amendment

House Labor and Human Resources Committee amendment to SB114 clarifies the bill by the

addition of language noting that prior to the date of maximum medical improvement an injured

workers health provider releases the worker to return to work, the worker is not entitled to tem-

porary disability benefits if:

•

The employer offers work at the worker’s pre-injury wage; or

•

The worker accepts employment with another employer at the worker’s pre-injury wage.

The HLHRC amendment also strikes the SJC amendment.

Synopsis of SJC Amendment

Senate Judiciary Committee Amendment to SB 114 makes a technical language modification

that helps clarify the purpose of the bill.

Senate Bill 114/aSJC/aHLHRC Page 2

Synopsis of Bill

The bill reverses an appellate court decision that held that a worker could obtain both his wages

and temporary total disability benefits if he or she went to work for an employer other than the

employer at the time of injury prior to maximum medical improvement.

Significant Issues

The Workers’ Compensation Advisory Council endorsed the bill.

PERFORMANCE IMPLICATIONS

The bill is not anticipated to have significant impact on WCA performance.

ADMINISTRATIVE IMPLICATIONS

The bill will result in a small increase in the investigative workload of the WCA Enforcement

Bureau in cases of fraudulent receipt of workers’ compensation benefits and wages. The in-

crease can be absorbed with current resources.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

The bill overrules Grubelnik v. Four-Four, Inc. 130 NM 633 (Ct App, 2001)

OTHER SUBSTANTIVE ISSUES

This bill is designed to prevent “double dipping” – taking workers’ compensation benefits for

temporary total disability and wages at the same time – that has been permitted as a result of a

court decision that was based on inexact drafting in the 1991 Workers’ Compensation Act. The

court result made NM the only state that allows such double dipping. The bill will eliminate a

disincentive to return to work with the employer at the time of injury that is caused by the eco-

nomics of double dipping.

BD/lg:yr