HCS HB 321 -- WORKERS' COMPENSATION

SPONSOR:  Hunter (Wilson, 130)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Workforce
Development and Workplace Safety by a vote of 9 to 7.

This substitute makes changes to the workers' compensation law.
The substitute:

(1)  Redefines "accident" to a specific, identifiable, traumatic
event during a single work shift;

(2)  Requires that an injury or occupational disease be
compensable only if an accident or occupational exposure was the
dominant factor in causing the condition or disability, rather
than a substantial factor;

(3)  Restricts benefits for the aggravation of pre-existing
conditions to those cases where a work-related injury causes
increased permanent disability and reduces compensation by the
amount of permanent partial disability that was pre-existing; and

(4)  Exempts from coverage personal health conditions that
manifest themselves at work when an accident is not the dominant
factor in the need for medical treatment and injuries from
unknown causes.  Deterioration from aging is currently listed as
not compensable; the substitute adds deterioration from normal
activities of day-to-day living.

FISCAL NOTE:  Estimated Savings to General Revenue and various
state funds of Unknown in FY 2004, FY 2005, and FY 2006.

PROPONENTS:  Supporters say that the workers' compensation law
needs a clearer definition to prevent association of conditions
resulting from everyday living and incidents that merely occur at
work but could have happened elsewhere with conditions that are
truly work-related.  Judicial interpretation over the last decade
has resulted in a broadening of what "work-related" means beyond
what was envisioned in the 1993 revision of the definition.  An
overall business climate that shows large numbers of workers'
compensation claims, large awards, and geographical patterns to
the size of awards makes workers' compensation claims and
resultant costs a factor in loss of Missouri jobs.

Testifying for the bill were Representative Wilson (130); Mike
Banahan; Contract Freighters, Inc.; Sierra Bullets; Jefferson
City Area Chamber of Commerce; American Tripoli; Joplin Area
Chamber of Commerce; Empire District Electric Company; Pat
Secrest; William Ringer; O'Sullivan Furniture;
HealthLink/Coalition of Managed Care for Workers' Compensation;
and TDL Personnel.  The following witnesses did not testify, but
filled out witness forms:  Missouri Merchants and Manufacturers
Association; Missouri Chamber of Commerce; Associated Industries
of Missouri; Missouri Self-Insurers Association; National
Federation of Independent Businesses; Missouri Retailers
Association; Missouri Tire Dealers and Retreaders; Recycle
Missouri, Inc.; St. Louis Regional Chamber and Growth
Association; and FAG Bearings, Inc.

OPPONENTS:  Those who oppose the bill say that the distinction
between a "substantial" factor and a "dominant" factor is certain
to lead to more litigation rather than less.  The bill switches
the burden of proof to the employee.  A redefined standard should
not lead to a narrower scope of benefits.  The rise in workers'
compensation costs is not associated with a rising number of
claims, but with the sharp increases of medical costs in general
and in insurance investments being tied to a falling stock
market.

Testifying against the bill were Missouri Association of Trial
Attorneys; United Food and Commercial Workers, Local 655; Agnes
Burgess; Missouri AFL-CIO; and St. Louis Labor Council.  The
following witnesses did not testify, but filled out witness
forms:  American Federation of State, County, and Municipal
Employees; Carpenter's District Councils of Kansas City and St.
Louis; and United Steelworkers of America, District 11.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:11 am